Marketing Case Analysis

  

Write about 5 pages analyzing the case in the PDF file Cadbury Beverages.pdf the paper should follow these steps1-  factual summary (non-obvious information in the case) half a page.2- case problem/opportunity (identify and explain the problem) 1 to 1,5 page.3- alternative solutions.1 to 1,5 page. 4- select best solution (select and justify ) 1 to 1,5 page5- conclusion. half a pagethis is the exact example goodyear-F.docx
goodyear_f.docx

goodyear_f.docx

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cadbury_beverages.pdf

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I. Factual Summary:
1. Goodyear is reconsidering sears offer in 1992 due to loss of status after 1988
Nearly $2 million worn-out. Also, Goodyear brand tires were being replaced
annually at some 850 Sears Auto centers in the United States. Due to all these
factors Goodyear recorded a 3.2 percent decline in market share and $38
million in opportunity cost 1990. Between 1987-1991, they realize that there
is 3.2 percent decline in market share for passenger car replacement tire.
2. Sears does not produce tires for the original equipment, but it holds 5.5
percent of the replacement tire segment. Therefore, sears customers are very
loyal, and it is an advantage for sales increasing.
3. The original equipment is sold to automobile manufacturers by tire
manufacturers directly. It accounts for 25 to 30 percent of the number of the
tires that sold every year while the replacement tire segment accounts for 70
to 75 percent.
4. Goodyear has the largest sales in the United States replacement tire market:
32 percent of highway truck tires, 15 percent of passenger car tires, and 11
percent of light truck tires.
II. Case Problem/opportunity:
1. The major issue presented in the Goodyear Tire and Rubber Company case
study is: Should Goodyear Tire and Rubber distribute & sell tires through
Sears, Roebuck and Company retail stores?
2. Goodyear must weigh the feelings and desires of it’s current dealer
network with its current trend of contracting “Share of Market” (SOM) in
order to determine what will be best for the company moving forward.
3. From 1987 to 1991 unit tire sales in the United States has not changed a lot
so, this flat rates might be a problem for Goodyear. Goodyear is the leader
in the original equipment market with a 38 percent share of the overall.
Either a decrease or fixed rates in the demand in this market will make a
negative effect on the company.
III. Alternative Solutions:
1. Goodyear does not expand its distribution. Likely, maintains positive
relationships with franchised dealers and reduces the chance of
cannibalization of current sales. Also, Goodyear will retain more control over
its brand/products.
In contrast, this alternative doesn’t resolve current trend of declining market
share percentage; consequently, forces Goodyear to focus on finding other
avenues for growth. Also, it can create an enhanced rivalry with Sears retail
stores. Therefore, Goodyear will have a disadvantage in comparison with
competitors.
2. Goodyear distributes and sells the Eagle branded tires through Sears.
Through this option, Goodyear will expand its presence into a new
potential market hopefully to create and to grow a business relationship
with great potential. Also, it allows Goodyear to protect franchised dealers
1
to an extent; subsequently, opens the doors for other potential deals with
similar retailers.
In contrast, minor conflicts with Goodyear’s franchised dealers could exist.
Furthermore, it may lead to minor cannibalization of current sales at
franchises.
3. Goodyear distributes and Sells multiple lines of tires through Sears. By
implementing this action, Goodyear will not only expand its presence into a
new potential market but also enables Goodyear to sell more of multiple
lines of its tires. In result, creates and grows a business relationship with
great potential. Also, it will open the doors for other potential deals with
similar retailers and establish high potential to stop or reverse current
SOM trend.
In contrast, it may result in a further need to increase production capacity.
Therefore, potential liability will increase due to third-party installers.
IV. Selected Solution:
1. Goodyear Tire and Rubber Company expand its distribution by accepting
Sears’s proposal to sell multiple lines of the Goodyear brand tires through its
retail stores. Increasing number of sold tire could be 10,055 comparing to
2,927 in case Goodyear refused Sears’s proposal.
2
Unit Sales for Replacement Tiers
Goodyear Market Share
Number of Tiers Sold
Goodyear Retailers
Number of Tiers of Each Retailer
155,400,000
15%
23,310,000
7,927
2,927
Unit Sales for Replacement Tiers
Sears Market Share
Number of Tiers Sold
Number of Sears Store
Number of Tiers of Each Stores
155,400,000
5.5%
8,547,000
850
10,055
V. Conclusion:
In recent years, the Goodyear Tire and Rubber Company has experienced
repeated trends of market share decline as an increasing number of its competitors
conduct new multi-branding efforts as well as increased expansion of their offerings
through discount tire retailers. Faced with this, Goodyear is presented the
opportunity to increase its distribution and sales by offering its products through
Sears retail stores. Based on the advantages and disadvantages as well as the data
presented in this brief, it is clear that it is in Goodyear’s best interest to offer
multiple lines of its tires through the Sears retail outlet. In doing this, Goodyear can
expand its footprint in the marketplace and potentially reverse its current trend of
decreasing market share.
3
I. Factual Summary:
1. Goodyear is reconsidering sears offer in 1992 due to loss of status after 1988
Nearly $2 million worn-out. Also, Goodyear brand tires were being replaced
annually at some 850 Sears Auto centers in the United States. Due to all these
factors Goodyear recorded a 3.2 percent decline in market share and $38
million in opportunity cost 1990. Between 1987-1991, they realize that there
is 3.2 percent decline in market share for passenger car replacement tire.
2. Sears does not produce tires for the original equipment, but it holds 5.5
percent of the replacement tire segment. Therefore, sears customers are very
loyal, and it is an advantage for sales increasing.
3. The original equipment is sold to automobile manufacturers by tire
manufacturers directly. It accounts for 25 to 30 percent of the number of the
tires that sold every year while the replacement tire segment accounts for 70
to 75 percent.
4. Goodyear has the largest sales in the United States replacement tire market:
32 percent of highway truck tires, 15 percent of passenger car tires, and 11
percent of light truck tires.
II. Case Problem/opportunity:
1. The major issue presented in the Goodyear Tire and Rubber Company case
study is: Should Goodyear Tire and Rubber distribute & sell tires through
Sears, Roebuck and Company retail stores?
2. Goodyear must weigh the feelings and desires of it’s current dealer
network with its current trend of contracting “Share of Market” (SOM) in
order to determine what will be best for the company moving forward.
3. From 1987 to 1991 unit tire sales in the United States has not changed a lot
so, this flat rates might be a problem for Goodyear. Goodyear is the leader
in the original equipment market with a 38 percent share of the overall.
Either a decrease or fixed rates in the demand in this market will make a
negative effect on the company.
III. Alternative Solutions:
1. Goodyear does not expand its distribution. Likely, maintains positive
relationships with franchised dealers and reduces the chance of
cannibalization of current sales. Also, Goodyear will retain more control over
its brand/products.
In contrast, this alternative doesn’t resolve current trend of declining market
share percentage; consequently, forces Goodyear to focus on finding other
avenues for growth. Also, it can create an enhanced rivalry with Sears retail
stores. Therefore, Goodyear will have a disadvantage in comparison with
competitors.
2. Goodyear distributes and sells the Eagle branded tires through Sears.
Through this option, Goodyear will expand its presence into a new
potential market hopefully to create and to grow a business relationship
with great potential. Also, it allows Goodyear to protect franchised dealers
1
to an extent; subsequently, opens the doors for other potential deals with
similar retailers.
In contrast, minor conflicts with Goodyear’s franchised dealers could exist.
Furthermore, it may lead to minor cannibalization of current sales at
franchises.
3. Goodyear distributes and Sells multiple lines of tires through Sears. By
implementing this action, Goodyear will not only expand its presence into a
new potential market but also enables Goodyear to sell more of multiple
lines of its tires. In result, creates and grows a business relationship with
great potential. Also, it will open the doors for other potential deals with
similar retailers and establish high potential to stop or reverse current
SOM trend.
In contrast, it may result in a further need to increase production capacity.
Therefore, potential liability will increase due to third-party installers.
IV. Selected Solution:
1. Goodyear Tire and Rubber Company expand its distribution by accepting
Sears’s proposal to sell multiple lines of the Goodyear brand tires through its
retail stores. Increasing number of sold tire could be 10,055 comparing to
2,927 in case Goodyear refused Sears’s proposal.
2
Unit Sales for Replacement Tiers
Goodyear Market Share
Number of Tiers Sold
Goodyear Retailers
Number of Tiers of Each Retailer
155,400,000
15%
23,310,000
7,927
2,927
Unit Sales for Replacement Tiers
Sears Market Share
Number of Tiers Sold
Number of Sears Store
Number of Tiers of Each Stores
155,400,000
5.5%
8,547,000
850
10,055
V. Conclusion:
In recent years, the Goodyear Tire and Rubber Company has experienced
repeated trends of market share decline as an increasing number of its competitors
conduct new multi-branding efforts as well as increased expansion of their offerings
through discount tire retailers. Faced with this, Goodyear is presented the
opportunity to increase its distribution and sales by offering its products through
Sears retail stores. Based on the advantages and disadvantages as well as the data
presented in this brief, it is clear that it is in Goodyear’s best interest to offer
multiple lines of its tires through the Sears retail outlet. In doing this, Goodyear can
expand its footprint in the marketplace and potentially reverse its current trend of
decreasing market share.
3
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