SOUTHERN NEW HAMPSHIRE UNIVERSITY
Graduate 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. For
Mid-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 that
this assignment was prepared by me specifically for the course as listed above.
Student Signature
Assignment Grade: ______
Instructor Comments:
Monday, February 2, 2004
Date:
Goodyear Tire and Rubber Company
The problem for Goodyear Tire and Rubber Co. is that they can’t decide whether
they should accept Sear Company’s 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 basis…etc. 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 company’s 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 Pirelli’s Ronaldo ad. which is very popular in Europe).