Aquatred Case

Goodyear should maintain their three current distribution outlets of small independent dealers, manufacturer-owned outlets, and franchised dealers while expanding distribution to target more specific types of consumers and geographic regions for their Aquatred launch. The current distribution channels for Goodyear projects have been successful; therefore, there is no reason to change something that works. Especially with its high price and high quality, the Aquatred would not be successful in distribution through service stations, warehouse club, or mass merchandisers due to their low cost focus.
Goodyear should analyze specific types of consumers who would be most likely to purchase the Aquatred tire and push sales heavily towards this market segment. As discovered in the market tests, consumers who purchased Aquatred tires were more likely to have researched information about the tire prior to purchase, drove an imported car, and specifically sought out the Aquatred tire for purchase upon entry into a distribution center. Goodyear should use the knowledge to promote information on the Aquatred to consumers matching the above characteristics.
For example, Goodyear should heavily promote and advertise the Aquatred tire due to the fact that the target consumer is research oriented before purchasing. Goodyear could also have a specific concentration on outdoorsy consumers. Consumers that frequently off-road and participate in other rural terrain areas would need a better quality tire with more safety for hazardous weather conditions. In addition to focusing on specific consumers, Goodyear should also target particular geographic regions that Aquatred would benefit most.Areas with large rain quantities would be more likely to purchase the Aquatred tire. Goodyear should look into meteorological patterns to determine such areas of focus. When car owners were surveyed about most important tire attribute, wet traction was the second most important which indicates that the interest already exists among consumers for a product to better serve this need. Also, Goodyear could tie in the human psychological need for safety by putting emphasis on Aquatred’s safety benefits in wet conditions.
Consumers especially those with families will be more likely to overlook the higher cost in order to have a product more likely to ensure their safety and protection. In order to combat the issue of price, Goodyear could instill a loyalty program among its Aquatred users. Therefore, once consumers have initially purchased the product, there would be an even greater incentive to continue using Aquatred. Also, Goodyear would pocket the expense of the discount so dealers are satisfied with greater revenues thus a greater incentive to sell the Aquatred tire.
Such a program would ease the tension on price among dealers and consumers. In addition to the loyalty program, Goodyear may need to develop a “promotion price” that would look like a deal to consumers but still ensure Goodyear receive their targeted price. The price is critical due to the fact that 75% of all Goodyear tires are sold on promotion and the company should be wary not to drive away large numbers of consumers due to price sensitivity.
Approximate price: $22
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