After many years of R&D, Goodyear has developed the Aquatred, an innovative new tire. However, the tire industry has matured and evolved, raising questions. Goodyear Aquarted tyre launch case anaalysis by rishi Contemplating the launch for the Aquatred, an innovative tire providing improved driving traction under wet driving conditions, Goodyear needs.

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Goodyear Aquatred Case Analysis

In regard to Aquatreds innovative technology, Goodyear has a great deal of time and money riding on the implementation of its strategy.

The case deals with channel conflicts and management issues arising in mature product categories. The Goodyear tire and rubber company-history-overview.

A more conservative approach would use targeted communications and promotions. Cite View Details Purchase. Second most important tire attribute to consumers according to Goodyear surveys.

How about receiving a customized one? Students should find the product and distribution easy to understand, but the international market context provides a unique opportunity to apply core marketing principles.

The case is recommended for upper-level undergraduate students or first-year MBA students studying marketing strategy. Some of the goodyeae utilized during the research process included: Actionable Marketing Plan for Aquatred Price: With manufacturer-owned outlets steadily decreasing in terms of retail sales in the replacement tire industry, Goodyear needs to rejuvenate their relationship with their SIDs. This will reduce the number of complaints and will encourage Goodyear dealers to carry only a limited number of tire brands other than that of Goodyear.

Cite View Details Educators Purchase. With the industry turning toward long-life warranties and low cost private labels, Good year needs to select a specific consumer and channel in order to maximize sales and build brand equity, while increasing dealer receptiveness and reducing channel conflict.

Newer Post Older Post Home. Based on current market trends, the only growing channel that Goodyear has yet to utilize would be that of Warehouse Clubs. Aqutrad became the best product in good year history not by accident.

The purpose of the third research was to identify: Not only does Goodyear posses the greatest experience in these particular outlets, but they produce greater margins See Exhibit 4 and allow Goodyear to maintain control throughout the distribution goodyyear. Even though this price may discourage some dealers at first, overall receptiveness will be high when they examine the potential revenues that Aquatred could generate for their outlet See Exhibit 5.


In order to fully understand the Aquatred message that Goodyear is trying to convey, the target market needs to be very precise and knowledgeable about the benefits the Aquatred tire offers. The Journal of Business Forecasting Methods and. The price of Aquatred should be based less on cost-plus or margin techniques and should instead be calculated from a Perceived-Value Pricing strategy.

The case can be used to discuss strategy, positioning, and marketing communications, which auatred relevant to considering alternative strategies for growth. Goodyear will be able to generate this hype by utilizing print and television ads.

It is well known that wet road conditions contribute to more than 1 million automobile accidents each year.

Identify Constraints and Opportunities The constraints and opportunities that Goodyear is facing can be found under Exhibit 1. By utilizing these growing channels, Goodyear will be able to establish a solid foundation as the tire distribution evolves to accommodate lower priced tires.

Business Articles: Goodyear’s Aquatred Tire

Finance Globalization Health Care. Below is a summary of the proposed marketing plan: CFI-M could expand aggressively by mass marketing to the general population. Even though Warehouse Clubs are a relatively new retail format, they are quickly growing thanks to their variety of product offerings and low prices. In order to appeal to the Quality-Conscious buyers, promotions and advertising need to illustrate and inform the consumer about the strong technical attributes that the Aquatred tire possesses.

Even though the Aquatred marketing plan would not appeal to this particular channel, Goodyear should expand distribution and market a low priced tire to be sold thorough this emerging channel.

In a time when tire purchases are becoming more price sensitive and moving towards a market demanding low cost private labels, Goodyear needs to determine an efficient strategy that aquatded a premium priced tire to this price dependent consumer base. Today, the Aquatred family tire has expended and includes. Business and Environment Business History Entrepreneurship. The year was one of the most critical years for Goodyear Toodyear since the Depression, because this was its first money-losing year, but several years later Goodyear makes a superior comeback, considerably increasing its presence in the US retail market.


Even though Aquatred would not directly fit into this particular channel structure, Goodyear should design a low cost tire to appeal aauatred to this channel. The Aquatred Launch Condensed Goodyear is planning to launch an innovative new tire in a price sensitive and highly competitive aquatrer. Contemplating the launch for the Aquatred, an innovative tire providing improved driving traction under wet driving conditions, Goodyear needs to finalize the specifics aquatre their marketing plan and distribution structure.

In order to gain compliance and trust, Goodtear should consider closing manufacturing-owned outlets, which are in direct competition with specific dealers.

Of the potential markets, the target market analysis in Exhibit 2 clearly illustrates the size of the market and why aquated Quality-Conscious Buyers would be the most profitable segment to target. Goodyear a tire and rubber company was founded in in Akron Ohio by Frank and Charles Seiberling and was named after Charles Goodyear inventor of the vulcanization process, Retrieved May 7 from: With the indentation to assist ease this condition, Goodyear’s family of Aquatred-branded tires features deep, wide grooves and aggressive tread patterns designed to keep the tires in contact with the road even in deep water at high speeds, promising increased safety on wet roads.

Czse Plan The contingency plan can be found under Exhibit 9. Prior to the launch, Goodyear will need to generate hype in regards to their breakthrough in wet traction performance. Preferred Aquatded Aquatred Target Market: In order to lower advertising costs, messages will be targeted toward promotional hot spots as shown in Exhibit 7. Posted by Rudiana Carcani at 7: However, the tire industry has matured and evolved, raising questions concerning the Aquatred’s ability to gain support from Goodyear’s independent tire dealers.

In addition, even though the Quality-Conscious buyer relies heavily on tire attributes, all consumers place a great importance on price when shopping for tires.