2 million worn out Goodyear tires were being replaced annually at Sear’s - Sears customers are very loyal
Hasn’t sold thru a mass merchandiser since the 1920’s and this would create a significant change in distribution policy and could create conflict w/franchised dealers
If accepted proposal, should the arrangement w/Sears include only Eagle brand or all Goodyear brands? Should they allow sears to carry one or more brands exclusively and have its own dealers carry certain brands on an exclusive basis?
Presently Goodyear has 12 brands of passenger and light-truck tires sold under their name, ranging from low priced tire brands to very expensive special high-speed tire for a Corvette that bears the Goodyear name
Groupe Michelin is the world’s largest producer and markets Michelin, Uniroyal and BF Goodrich brands
Goodyear is 2nd largest producer with Goodyear, Kelly-Springfield, Lee and Douglas being its most well-known brands
Bridgestone Corp is 3rd largest and the three I listed account for almost 60% of all tires sold worldwide
Two parts of the market:
Original equipment tire market-
• sold by tire manu’s directly to auto manu’s... displayed 300 characters
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1992
Sears wants them to sell their Eagle tire brand
Proposed this once before and Goodyear declined Sears, but now Goodyear’s sales are declining and people are starting to get their tires replaced at Sear’s more
2 factors made them think about it:
1. Goodyear tires had a 3.2% decline in mkt share for passenger car replacement tires in the US - Club stores, discount tire retails and coupling of multiple brands at mass merchandisers aided the decline in market share of Goodyear
2... displayed 300 characters
