marketing analysis - tires
DESCRIPTION
Marketing analysis conducted for tire industry from a consumer\'s point of view and what they must consider when making this purchase.TRANSCRIPT
TIRES
Group Members:
Nathan Hensyel
Brandon Evans
Aries Gomez
Breona Johnson
Luis Ramirez
Promotion
Tire Commercials From 1990 to 2003, the
total number of scrap tires going to market increased from 11 million to 233 million. Of all the scrap tires discarded today, over 75 percent are recycled or used for fuel or other applications.
Purpose
Our Target audience is College students
To collect tire prices from seven different stores and compare price variations
To explain why there was a variation in price?
We had to choose five of the same tire brands for each store
Our Control and Variables 2000-2009 Toyota Camry was the car we used to find
the tire prices
We asked for prices on all season tires
The stores we chose were:Les SchwabCostcoWal-MartSearsDiscount TiresNorthwest Tire & AutoTire Rack
Les Schwab Location:
#7 Spokane St.
Cheney, WA 99004 Tire Prices and Brands:
95H Formoza FD-1 - $62.96ea. 95H SS-657 - $81.52ea. 94H Zexius XI-427 - $93.95ea. 92T Eclipse - $112.55ea. 94T Tourevo - $129.76ea.
Warranty: Extended-Life Free Road-Hazard Protection Free Flat Repair Free Tire Rotation Free Tire Rebalance Free Tire Inspection Free Air Check Snow Tire Installation and Removal
•Installation: • Wheel Spin Balance - $12.25• Tubeless Valve System - $4.25
Les Schwab S.W.O.T. Strengths:
Private Manufactured TiresOver 400 Store Locations
Weaknesses:High Priced LaborHours of Operation
Opportunities:Small Town LocationsFree-Beef
Threats:Stores with Cheaper LaborCompetitive Prices
Costco Location:
7619 N Division St.
Spokane WA
Tire Prices and Brands:Michelin: $134.99ea.BF Goodrich: $90.99ea
Warranty: 60,000 miles
• Installation: $14.00 per tire• Care Warranty: Lifetime tire rotation, 5 year limited warranty.
Costco S.W.O.T Strengths:
Tires could be ordered online
and shipped to warehouses for
free Costco Advantage Plan Road Hazard Warranty
Weaknesses: Carries Only 2 Brands of Tires Offers are for members only
Opportunities: Carry More Brands of Tires
Threats: Discount Tire Stores Other Online Stores
Wal-Mart Location:
15727 E Broadway Ave, Spokane Valley
Tire Prices and BrandsGoodyear: $145ea.Michelin: $155ea.BF Goodrich: $150ea.Bridgestone: $127.99ea.
Warranty: 60,000miles
• Installation: $Free Included in price of tire.
Wal-Mart S.W.O.T Strengths:
Lots of locationsVariety of brands
Weaknesses:Bad customer serviceLow end brands
Opportunities:Television promoting for tiresAdvertise free installation
Threats:Cheaper place like Sears
or Discount TireBetter service from Les Schwab
or Smaller tire store
New Logo
Old Logo
Sears Location:
4700 N Division St.
Spokane WA
Tires and Brands:Firestone: $72.96ea.Bridgestone: $84.94ea.Goodyear: $90.21ea.Michelin: $109.99ea. Cooper: $78.84ea.
Warranty: Price Match Plus Policy
• Installation: $11 per tire
Sears S.W.O.T Strengths:
• Well known brand• Able to use Sears Card
Weaknesses:• Not known for selling tires
Opportunities:• Customers at Sears that did not
come to shop for tires Threats:
• Online stores like Tire Rack
Discount Tire Location:
9519 E Sprague Ave
Spokane Valley
Tires and Brands: Michelin: $108ea. Bridgestone: $100ea. Goodyear: $106ea. BF Goodrich: $74ea.
Warranty: No warranty• Installation: $14 per tire• Care Warranty: Free lifetime rotations.
Discount Tire S.W.O.T
Strengths:• Location- Right off of Division in
Spokane Weaknesses:
• Doesn’t appeal to customers who
are looking for a higher quality product Opportunities:
• Mail Coupons, and Incentives. Threats:
• Online tire stores like Tire Rack• Stores like Les Schwab or Sears
that appeal to customers looking for quality
Northwest Tire & Auto Location:
8027 N Division St, Spokane
Tires and Brands:Firestone: $100ea.Bridgestone: $77.50ea.Cooper: $95.74ea.BF Goodrich: $100ea
Warranty: 70,000 miles
• Installation: $Free, included when you purchase tires • Free brake rotation every 6,000 miles
Northwest Tire and Auto S.W.O.T
Strengths:• Location- Right off of Division in
Spokane Second location on N Pine Road
Weaknesses:• Very little advertising and
promotion. Located right next to a larger Les
Schwab
Opportunities:• More advertising• People who are fed up with poor
service at larger chain auto stores.
Threats:• Online tire stores like Tire Rack• The large amount of competing tire
stores in the immediate area.
The Tire Rack Location: Online
Tires and Brands: Firestone: $74ea. Michelin: $108ea. Bridgestone: $83ea. Goodyear: $72ea. BF Goodrich: $69ea.
Partnering Store: Spokane Tire Factory
Warranty: 4-6years.
• Shipping: $54• Installation: $15-25
The Tire Rack S.W.O.T Strengths:
Can shop from homeEasy to use website
Weaknesses:Lack of personal customer
serviceYou have to wait to get the
tires Opportunities:
Have more partner stores Threats:
Stores like Discount Tire or Wal-Mart.
Market Analysis
Les
Schwab
Costc
o
Wal-
Mar
t
Sears
Discou
nt T
ire
North
west T
ire
Tire R
ack
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
$180.00
Michelin Bf GoodrichGoodyear BridgestoneCooper Firestone
Stores
PRICE
Interpretation of Data Cheapest store to go to for Michelin tires or the
equivalent would be Les Schwab. Cheapest store to go to for BF Goodrich would
be Tire Rack. Cheapest store to go to for Goodyear tires would
be Tire Rack. Cheapest store to go to for Bridgestone tires
would be Northwest Tire. Cheapest store to go to for Cooper tires would
be Sears. Cheapest store to go to for Firestone tires would
be Sears.
Interview with Les Schwab Manager
What do you think Les Schwab’s greatest threats are? Biggest threat is not explaining services and warranties properly, which leads
customers to believe that Les Schwab is higher priced than their competitors. Why isn’t the majority of your competition as successful as Les Schwab?
Les Schwab has over 400 stores so convenience is a huge leg-up for business. Warranty Outstanding Service
What do you think Les Schwab’s greatest opportunities are? Free-Beef Promotion
Does Les Schwab have their own private manufacture? Exclusive Tires to Les Schwab Good Relationship with certain manufactures such as Toyo Tires
Because Les Schwab manufactures tires, is that the reason why you are able to keep your prices lower than your competitors? Due to Exclusivity Customer Service is their #1 goal and it’s what keeps customers coming back
Manager Jared’s Recommendation – “What tire
is best in your opinion?”
92T Eclipse is the best purchase considering price-to-quality.
1. All Seasons Black wall
2. 70,000 mile warranty
3. Exclusive tire so no other tire company has it in stock except for Les Schwab
Conclusion
Although we had trouble finding the same five tires at each store we were able to make conclusions from each store.
Each store has their top selling tire, and they pay to use the top brands.
Customer Service and Warranty to some people means more than the price of the tire.