8/6/2019 Goodyear_case5

1/2

SOUTHERN NEW HAMPSHIRE UNIVERSITYGraduate School of Business

Program: SNHU School of Business Graduate Program

Course Title : Marketing Strategies MKT 500

Instructor: Jeannemarie Thorpe

Due Date: Monday, February 2, 2004

Submission Date: Monday, February 2, 2004

Type of Assignment: Case Analysis

Title of Assignment: Goodyear Tire and Rubber Company 5th Case Study

Student Name: Cevdet KIZIL

Student Phone #s: (603) 626 9302

Student E-mail: cevdetkizil@yahoo.com

CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this assignment. Any

assistance I received in its preparation is fully acknowledged and disclosed within this document. ForMid-Term and/or Final Exams, I certify that I have not received any help from others.

I have cited any and all sources, both print and electronic, from which I have used data, ideas, or words,

either quoted or paraphrased. My cited sources are indicated within this document. I also certify thatthis assignment was prepared by me specifically for the course as listed above.

Monday, February 2,

2004

Student Signature Dat

Assignment Grade: ______

Instructor Comments:

Goodyear Tire and Rubber Company

8/6/2019 Goodyear_case5

2/2

The problem for Goodyear Tire and Rubber Co. is that they cant decide whether

they should accept Sear Companys offer about selling Goodyear brand tires or not.

Goodyear Tire and Rubber Company has some constraints to solve the problem.

First of all, selling the tires will decrease the sales of Goodyear Auto Service Centers and

franchised Goodyear Tire Dealers. Then, Goodyear will have to change its distribution

policy. After that; if the tires will be sold, this will create a conflict with Goodyear

franchised dealers. Next; the condition is so complicated that many questions are waiting

to be answered like which Goodyear brands will be included to the arrangement, should

Sears carry one or more brands exclusively and have its own dealers carry certain brands

on an exclusive basisetc. Following this, low customer loyalty in tires industry is

another constraint. Plus; department stores and the major retail chains are usually

marketing their own private label brands. Additionally; local dealers have strong

influence on customer buying decisions. Of course; the loss recorded by Goodyear in

1990 & decreasing market share between 1987 and 1991 are other important limitations.

Finally; if I were the CEO of Goodyear, I would not sell my companys tires.

Because; the situation will be very complicated after the arrangement. Also; it seems like

Goodyear will create many enemies. Especially; if we look at the table on page 428 of

case, we can see that Eagle tires have high quality, so selling them will be very risky. If

thinking sales; they must start from other tires to minimize the risk. Also, the company

must continue to produce innovative products (e.g.Aquatred) and should implement more

creative advertisements (like Pirellis Ronaldo ad. which is very popular in Europe).