Class ppt for our MBA class case

1. THE AQUATRED LAUNCH Panacea Ankit – 092104 Bhavin – 0821 Jayesh – 092120 Biju – 0821 Nigam – 082142

3. Performance Vs. Broad-line Tires Replacement Vs. OEM The Market For Passenger Tire More expensive Better traction. Less expensive Poor handling 25% of Goodyear’s unit Sales 30% of Dollar sales Higher percentages of profits. Less percentage of profits. Sold to Individual Consumers . Sold to Car manufacturers. 65% of Revenue 35% of Revenue Cut-through Competition Large Scope Market Leader (Rank 1; Mkt Share 38%)

4. Brand Classification The Market For Passenger Tire Major Brands Minor Brands Private Label 36% of unit sales. 24% of unit sales. 40% of unit sales. Highest recognition among consumers. Minor but well-recognized among consumers. Larger manufacturer used excess capacity to service private labels. Goodyear, Firestone, Michelin, Bridgestone, Pirelli and Goodrich. Dunlop, General, Kelly , Uniroyal, Cooper, Yokohama and Toyo. They carried names to particular retailers.

5. Channels Independent Dealers Strictly whole-sellers Retail Dealers Retail Owners 10 % 40 % 50 % Car dealers, service stations, small independent dealers Other dealers, secondary outlets Own retail outlets Wholesale Distribution Channels (percent of U.S. passenger tire replacement sales in units) Type of Outlet 1976 1981 1986 1991 Oil companies 9 5 3 2 Large retailers 24 20 16 19 Manufacturer-owned outlets 11 10 13 12 Independent dealers 56 65 68 67

6. Channels Retail Distribution – passenger tires Garage / service station Warehouse clubs Mass Merchandisers Manufacturer-owned outlets Small independent tire dealers Large independent tire chains Set-up Small Outlets Large Stores Large Retail space / chain Large Outlets One or two outlets Concentrated within geographic regions Outlets Neighborhood outlets less than 100 outlets Some hundreds less than 100 outlets Various 30-100 outlets Product / service offered Tires, gasoline, auto services Food ,clothing electronics ,tires ,hardware Only installation of tires Carried various types of merchandise. Performed auto services Tires Tires Tires Tires sold Private lab. / Branded Branded Various Branded / own brand One brand Start with a brand and add on later / private labels Private labels / Branded Players Many Sam’s, Pace, Price club, Costco Kmart / Sears /Wal-Mart Manufacturers : Goodyear / Michelin / Firestone Many Tire America, National Tire Warehouse, and Discount Tire. Strategy Low volume / Stiff competition from high volume players Deal based/ Low prices High Volume/ Low prices High Volume/ Low prices Low volume/ Stiff competition from high volume players High Volume/ Low prices

13. Consumer Behavior

15. Consumer Segments Type of Buyers Loyalty to Outlet Loyalty to Brand Shop Around Other Price Constrained LESS LESS MORE Best in their Budget Value Oriented LESS MAJOR BRANDS EXTENSIVELY Search for best prices Quality- Prestige MORE MORE LESS Best Tires. 65% Major Brand Quality - CC MORE LESS LESS 38% Major Brands Commodity- Bargain Hunter LESS LESS EXTENSIVELY YOUNG, PRICE Commodity- Trusting Patrons MORE LESS LESS Lower Price