Marketing Case Analysis

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Business Finance

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Write about 5 pages analyzing the case in the PDF file Cadbury Beverages.pdf 

the paper should follow these steps

1-  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 page

5- conclusion. half a page

this is the exact example goodyear-F.docx 


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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 Scanned by CamScanner Scanned by CamScanner Scanned by CamScanner Scanned by CamScanner Scanned by CamScanner Scanned by CamScanner Scanned by CamScanner Scanned by CamScanner Scanned by CamScanner Scanned by CamScanner Scanned by CamScanner Scanned by CamScanner Scanned by CamScanner Scanned by CamScanner Scanned by CamScanner
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