Goodyear Tire and Rubber Company With the competitiveness of the US tire industry in 1992, Goodyear Tire and Rubber Company is reconsidering a proposal from the department store Sears to carry Goodyear Eagle brand tires. With a $38 million loss in 1990 and a change in top-level management in 1991, the Sears proposal from 1989 was being looked at again. These new top-level managers have two decisions to make: whether Sears should carry only the Goodyear Eagle brand or all of Goodyear’s tire line. Goodyear will have to look at their distribution policy and the potential backlash that could come from their independent franchised dealers. Key factors in competition of the US tire industry Price plays a large factor in the tire industry. Many consumers purchase their tires based on the price, due to the fact that they know little about tires and are more focused on getting a good price in comparison to a better quality tire. Customers who know more about tires or automobiles look for quality of the tires for their vehicles. At the retail level, salesmen are pushed to sell the private label tires of a store before any other one. This is difficult to do when a customer has a brand loyalty. To be competitive in the tire industry in the United States you must have a variety of offerings. Tire companies must have a strong portfolio offering mix to remain competitive within the industry. The United States has many different climates, with both extremes of rain to ice. By having an extensive product line, you will be able to satisfy more customers in each demographic. Branding and reputation is another huge factor in the US tire industry. When trying to create a competitive advantage within the tire industry, branding and prod... ... middle of paper ... ...are generally uneducated about tires and their different characteristics. Pros/Cons for Franchised Tire Dealers PRO -This change in channel selection by Goodyear allows for the franchised dealers to start carrying private label brands and create a larger. -Goodyear will most likely have to subsidize a loss of sales with increased support in promotion, and lower their prices. -Overall branding will improve for Goodyear, as there are more offerings available to the public. CON -Offerings may be cannibalized from their own sales and shifted towards Sears. -Lack of supply may also become a Goodyear production cannot meet the demand of both the franchised dealers and Sears Auto Centers. -The offerings of the entire Goodyear line-up by the franchised dealers may seem overpriced if Goodyear manufacturers a lower and cheaper level of tires exclusively for Sears.
Setting prices too high would discourage purchasing and setting prices too low negatively affects revenue. While several pricing strategies exist, the use of a value-based pricing system, as implemented at Cabela’s, offers an optimal strategy that meet both customer expectations and company requirements.
There will be more experiential marketing towards the beginning of a new line extension/product, to promote brand switching from the competition products while creating brand awareness at the same time based on the value creation of each new line/product. The reduction in advertising budget due to high brand awareness of Allround will help us allocate more financial resources towards experiential marketing. As a team, we agreed that this was the best way to draw in more customers with heavily affecting the bottom
Sarkar, A. N., & Singh, J. (2005). New paradigm in evolving brand management strategy. Journal of Management Research, 5(2), 80-90. Retrieved from http://search.proquest.com/docview/237238894?accountid=28644
There were and are many opportunities for CarMax to continue to grow its business. According to the case, CarMax has been already planned for next few years; entering 50 to 100 smaller markets with a ‘next-generation store’
Given the dominance and fiercely competitive nature of Wal-Mart and Target within the big box discount retail industry, Dollar General avoided competing head-to-head with these larger rivals by differentiating a classic generic bu...
In particular, a recent Y-O-Y inventory increase belies a misread of increased demand, which means short turn times and trendier inventory that grows stale on the store shelves. This, in turn, means customers are less incented to return to the retailer to check out “what 's new”. This decreases in repeat visits in turn leads to longer inventory turn times, which in turns leads to loss of profit. In short, a revamped Kohl 's that moves inventory more quickly immediately becomes more attractive to the
You can either minimize cost or you can aim for the highest quality of product and customize according to the requirements of the market place. Some products are by their nature standardized. However it is impossible to differentiate the product in the mind of consumer. This tends to put all the emphasis on cost and therefore on prices. There is no point in the consumer paying extra for the same products. However by K-mart and Sears should use strategies like changing the location of stores in a more appealing destination. Both would need development of new name brand products, ones that would be lower cost and a higher quality for customers.
Sears began as a small retailer but as the years have gone by, they have become
Kmart's main weakness was that it had an aspiration to be all things to all people – its dabblings in drug stores, home improvement stores, bookstores, cafeterias and specialty stores in the 1980s and early 1990s seemed to spread the company very thin. This focus on diversification is just one example of how the retailer has often not made the wisest choices when faced with a tight spot.
From here on Michelin tire pretty much has been repeating itself a lot. Really from the 60’s through the 80’s Michelin had just been coming out with new radial tires. These tires have been for motorcycles, airplane, race cars etc. Finally in the late 80’s Michelin expanded more building plants in Asia, Thailand, and Japan. A little while later another plant opened up in the Philippines.
If DMC loses Hamilton, other than lost dollars, which doesn't seem to be significant, DMC could lose brand image and reputation as a result of being downgraded in the industry. This could be worse than lost dollars. In addition it could lose the industry by losing the leader of the industry. Although this market is a small slice of DMC's revenues, one cannot afford to easily lose market share. In addition, this could have spill over affects in it's other markets when it circulates that DMC was a "failure" in one market.
For commodity goods, consumers are more inelastic to price changes. As commodities are at affordable price, the price differences are rather small. Therefore, lowest price is not a main concern for most consumers.
Where there is rapid growth comes increased competition; similarities in products across manufacturers have reduced brand differentiation across the board. The problem now is the severe rise of copycat companies and manufacturers that copy designs and specifications of cars, and proceed to undercut the original manufacturer’s profit margins. So to improve their brand standing, every manufacturer’s individually have resort...
Because of the decreasing effectiveness in digital advertising, it is necessary that P&G considers brand building in the Marketing Department. I am outlining the recommendations of the benefits brand building would bring to P&G.
Marketers assert to develop branding and packaging strategies that signify the brand’s products in a way that establishes lasting impressions in consumers’ thoughts. Because brands distinguish the many product offerings in the marketplace, brands help consumers choose between product offerings. When branding and packaging strategies clearly illustrate worthy product expectations, and products remain true to branding messages, positive consumer perceptions ensue, and brand value is strengthened.