goodyear case study

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Goodyear: The Aquatred Launch

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John A. Quelch

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• November 1999 (Revised November 1999)
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Goodyear: The Aquatred Launch (Condensed)

• Goodyear: The Aquatred Launch (Condensed)  

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Case study: How Goodyear promotes compliance and ethical business behaviour

Employing approximately 61,000 full-time and temporary associates worldwide and operating 46 manufacturing facilities in 21 countries, Goodyear is one of the world’s leading tire companies, developing, manufacturing, marketing, and distributing tires for most applications, including automobiles, trucks, buses, aircraft, motorcycles, racing, earthmover, mining, industrial and farm equipment. Upholding its commitment to ethical behaviour, compliance, and to demonstrating ethical values, is a top priority for Goodyear.     Tweet This!

This case study is based on the 2019 Corporate Responsibility Report by Goodyear published on the Global Reporting Initiative Sustainability Disclosure Database  that can be found at this link . Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

To make sure high ethical standards are applied across its operations, Goodyear’s global and regional Compliance and Ethics Committees meet several times a year, to discuss compliance and ethics matters, initiatives, and training. In order to promote compliance and ethical business behaviour Goodyear took action to:

• implement a Business Conduct Manual
• provide compliance and ethics training
• establish an Integrity Hotline
• promote data privacy and protection

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With this case study you will see:

• Which are the most important impacts (material issues) Goodyear has identified;
• How Goodyear proceeded with stakeholder engagement , and
• What actions were taken by Goodyear to promote compliance and ethical business behaviour

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What are the material issues the company has identified?

In its 2019 Corporate Responsibility Report Goodyear identified a range of material issues, such as product quality, business continuity, sustainable raw materials and sourcing, talent development, community engagement. Among these, promoting compliance and ethical business behaviour stands out as a key material issue for Goodyear.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Goodyear engages with:

To identify and prioritise material topics Goodyear engaged with its stakeholders through the following channels:

What actions were taken by Goodyear to promote compliance and ethical business behaviour ?

In its 2019 Corporate Responsibility Report Goodyear reports that it took the following actions for promoting compliance and ethical business behaviour:

• Implementing a Business Conduct Manual
• Goodyear’s Business Conduct Manual, updated in 2018, guides its Board of Directors, executive team, and all associates globally. It defines behaviours necessary to support Goodyear’s high standards and reinforces associate compliance with all applicable laws and business practices. The Manual is available on Goodyear’s corporate website, company intranet and in hard copy for associates without internet access. It is available internally in 14 languages, to help ensure global comprehension. Goodyear regularly updates its Manual to make sure it reflects the current workplace and regulatory landscape and on an annual basis, salaried associates must review and affirm their knowledge of the Manual, promise to abide by it and disclose any known violations of certain policies.
• Providing compliance and ethics training
• Goodyear requires almost all global salaried associates and new hires to complete online training covering the Business Conduct Manual and key compliance policies. In 2019, more than 96% of those associates completed online training courses on such subjects as competition law, anti-corruption and anti-bribery, and being a compliance leader. Goodyear has a three-year training cycle that it reviews and amends annually to ensure its ethics and compliance training topics remain relevant and address the risks facing Goodyear. Throughout 2019, Goodyear conducted in-person trainings across all strategic business units and focused compliance campaigns in many countries and plants on various subjects, such as respect in the workplace (including harassment and discrimination), conflicts of interest, competition law, speaking up, preventing and detecting fraud and bribery, gift and entertainment policies, and privacy. Additionally, Goodyear’s Quarterly Ethics Awareness Campaign, covering topics from the Manual, takes place in its company-owned retail, wholesale and commercial tire service locations in the United States, United Kingdom, France, Canada, Japan, Africa, Australia, and in its Airship Operations. During the 2019 quarterly campaign, managers led their teams in conversations on compliance and ethics subjects such as workplace violence, speak up, theft, and substance abuse.
• Establishing an Integrity Hotline
• All Goodyear associates are required to report any actual, suspected, or potential misconduct to management or through the company’s Integrity Hotline. Available 24 hours a day, 7 days a week from anywhere in the world via toll-free telephone or by a dedicated website, Goodyear’s Integrity Hotline allows associates and third parties to report a concern or ask a question, including anonymously (where allowed by law). The Compliance and Ethics Department reviews each Integrity Hotline matter and, in cases where an allegation of misconduct is substantiated, Goodyear takes appropriate disciplinary or remedial action. Goodyear strictly prohibits retaliation against individuals for making a report in good faith and Speak Up education and awareness campaigns are held, to remind associates of the Integrity Hotline and to encourage them to raise questions or concerns.
• Promoting data privacy and protection
• Like many global companies, Goodyear faces data security risks, and monitors new and developing regulations and best practices to anticipate and mitigate such risks. For example, in 2018, the European Union’s General Data Protection Regulation (GDPR) replaced the Data Protection Directive 95/46/EC and, in 2019, California also passed a comprehensive new privacy law. As a response to these and other regulations, Goodyear updated its Global, Online, and Associate Privacy Policies to comply with these regulations and privacy best practices and implemented additional training programmes for associates who interact with personal information.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 205-2 Communication and training about anti-corruption policies and procedures

Disclosure 205-2  Communication and training about anti-corruption policies and procedures corresponds to:

• Sustainable Development Goal (SDG) 16 : Peace, Justice and Strong Institutions
• Targets: 16.5

78% of the world’s 250 largest companies report in accordance with the GRI Standards

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1) This case study is based on published information by Goodyear, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

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2) https://www.globalreporting.org/standards/gri-standards-download-center/

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Ledbetter v. Goodyear Tire & Rubber Co., 550 U.S. 618 (2007)

SYLLABUS OCTOBER TERM, 2006 LEDBETTER V. GOODYEAR TIRE & RUBBER CO. SUPREME COURT OF THE UNITED STATES

LEDBETTER v . GOODYEAR TIRE & RUBBER CO., INC.

certiorari to the united states court of appeals for the eleventh circuit

No. 05–1074. Argued November 27, 2006—Decided May 29, 2007

During most of the time that petitioner Ledbetter was employed by respondent Goodyear, salaried employees at the plant where she worked were given or denied raises based on performance evaluations. Ledbetter submitted a questionnaire to the Equal Employment Opportunity Commission (EEOC) in March 1998 and a formal EEOC charge in July 1998. After her November 1998 retirement, she filed suit, asserting, among other things, a sex discrimination claim under Title VII of the Civil Rights Act of 1964. The District Court allowed her Title VII pay discrimination claim to proceed to trial. There, Ledbetter alleged that several supervisors had in the past given her poor evaluations because of her sex; that as a result, her pay had not increased as much as it would have if she had been evaluated fairly; that those past pay decisions affected the amount of her pay throughout her employment; and that by the end of her employment, she was earning significantly less than her male colleagues. Goodyear maintained that the evaluations had been nondiscriminatory, but the jury found for Ledbetter, awarding backpay and damages. On appeal, Goodyear contended that the pay discrimination claim was time barred with regard to all pay decisions made before September 26, 1997—180 days before Ledbetter filed her EEOC questionnaire—and that no discriminatory act relating to her pay occurred after that date. The Eleventh Circuit reversed, holding that a Title VII pay discrimination claim cannot be based on allegedly discriminatory events that occurred before the last pay decision that affected the employee’s pay during the EEOC charging period, and concluding that there was insufficient evidence to prove that Goodyear had acted with discriminatory intent in making the only two pay decisions during that period, denials of raises in 1997 and 1998.

Held:  Because the later effects of past discrimination do not restart the clock for filing an EEOC charge, Ledbetter’s claim is untimely. Pp. 4–24.

   (a) An individual wishing to bring a Title VII lawsuit must first file an EEOC charge within, as relevant here, 180 days “after the alleged unlawful employment practice occurred.” 42 U. S. C. §2000e–2(a)(1). In addressing the issue of an EEOC charge’s timeliness, this Court has stressed the need to identify with care the specific employment practice at issue. Ledbetter’s arguments—that the paychecks that she received during the charging period and the 1998 raise denial each violated Title VII and triggered a new EEOC charging period—fail because they would require the Court in effect to jettison the defining element of the disparate-treatment claim on which her Title VII recovery was based, discriminatory intent. United Air Lines, Inc. v. Evans , 431 U. S. 553 , Delaware State College v. Ricks , 449 U. S. 250 , Lorance v. AT&T Technologies, Inc. , 490 U. S. 900 , and National Railroad Passenger Corporation v. Morgan , 536 U. S. 101 , clearly instruct that the EEOC charging period is triggered when a discrete unlawful practice takes place. A new violation does not occur, and a new charging period does not commence, upon the occurrence of subsequent nondiscriminatory acts that entail adverse effects resulting from the past discrimination. But if an employer engages in a series of separately actionable intentionally discriminatory acts, then a fresh violation takes place when each act is committed. Ledbetter makes no claim that intentionally discriminatory conduct occurred during the charging period or that discriminatory decisions occurring before that period were not communicated to her. She argues simply that Goodyear’s nondiscriminatory conduct during the charging period gave present effect to discriminatory conduct outside of that period. But current effects alone cannot breathe life into prior, uncharged discrimination. Ledbetter should have filed an EEOC charge within 180 days after each allegedly discriminatory employment decision was made and communicated to her. Her attempt to shift forward the intent associated with prior discriminatory acts to the 1998 pay decision is unsound, for it would shift intent away from the act that consummated the discriminatory employment practice to a later act not performed with bias or discriminatory motive, imposing liability in the absence of the requisite intent. Her argument would also distort Title VII’s “integrated, multistep enforcement procedure.” Occidental Life Ins. Co. of Cal. v. EEOC , 432 U. S. 355 , 359. The short EEOC filing deadline reflects Congress’ strong preference for the prompt resolution of employment discrimination allegations through voluntary conciliation and cooperation. Id., at 367–368. Nothing in Title VII supports treating the intent element of Ledbetter’s disparate-treatment claim any differently from the employment practice element of the claim. Pp. 4–13.

   (b)  Bazemore v. Friday , 478 U. S. 385 (per curiam) , which concerned a disparate-treatment pay claim, is entirely consistent with Evans , Ricks , Lorance , and Morgan. Bazemore ’s rule is that an employer violates Title VII and triggers a new EEOC charging period whenever the employer issues paychecks using a discriminatory pay structure. It is not, as Ledbetter contends, a “paycheck accrual rule” under which each paycheck, even if not accompanied by discriminatory intent, triggers a new EEOC charging period during which the complainant may properly challenge any prior discriminatory conduct that impacted that paycheck’s amount, no matter how long ago the discrimination occurred. Because Ledbetter has not adduced evidence that Goodyear initially adopted its performance-based pay system in order to discriminate based on sex or that it later applied this system to her within the charging period with discriminatory animus, Bazemore is of no help to her. Pp. 13–21.

   (c) Ledbetter’s “paycheck accrual rule” is also not supported by either analogies to the statutory regimes of the Equal Pay Act of 1963, the Fair Labor Standards Act of 1938, or the National Labor Relations Act, or policy arguments for giving special treatment to pay claims. Pp. 21–24.

421 F. 3d 1169, affirmed.

   Alito, J., delivered the opinion of the Court, in which Roberts, C. J., and Scalia, Kennedy, and Thomas, JJ., joined. Ginsburg, J., filed a dissenting opinion, in which Stevens, Souter, and Breyer, JJ., joined.

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Inter-organizational Cooperation with SAP Systems pp 153–172 Cite as

Goodyear Case Study: Use of SAP Systems for Supply Chain Management

• Peter Buxmann 5 &
• Wolfgang König 6  

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Part of the book series: SAP Excellence ((SAPE))

The Goodyear Tire & Rubber Company with 95,000 employees worldwide and a daily production of more than 500,000 tires is one of the largest tire and rubber manufacturers in the world. The company has itself six rubber plantations and maintains 84 factories in 26 countries (refer to Figure 8.1). Goodyear has development centers in the USA, Japan and Luxembourg for research and development.

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• July 18, 2022

Goodyear Case Study: Going from 0 to top 3 Automotive category seller by building an O2O model to expand legacy retail to DTC Ecommerce

Table of contents, introduction.

Consumer buying behaviour has changed drastically with Ecommerce options available to them. They have more choices of where to do their research, read reviews, compare prices and purchase. Traditionally, tyre industry has always been driven by car workshops as the key point-of-purchase. The big question mark is, will it stay the same 5 years from now? 

Goodyear, a global Tyre manufacturer has the ambition to establish an online retail channel to reach new consumers. It wants to increase its online presence using DTC Ecommerce (direct-to-consumer) and create an ecosystem to support current offline workshops. It has more than 200 workshop partners and wanted to improve the consumer experience for buyers. To achieve this ambition, Goodyear has partnered with Commerceplus to create the Ecommerce ecosystem.

1. About GoodYear

GoodYear is world’s largest tire manufacturing company founded by Frank A. Seiberling in the year 1898.  It employs nearly 72,000 people and produces its goods in 55 locations across 23 different nations. Its two Innovation Centres in Colmar-Berg, Luxembourg, and Akron, Ohio, work to create cutting-edge goods and services that raised the benchmark for the industry’s performance and technology.

In 2005, Goodyear launches RunOnFlat Technology – first tyres that can run up to 80kph for 80km with punctures. Goodyear has received multiple awards from leading automotive companies, such as, Toyota, Perodua, Honda and Inokom. On the top of that Goodyear Malaysia was recognized as the Most Trusted brand for the tire category by Reader’s Digest for the seventh consecutive years.

In order to meet the expanding demands of various market segments, Goodyear Malaysia also imports a large quantity of tyres from its sister plants in other Asean member countries. As a result, it is increasingly well-positioned to benefit fully from the AFTA’s market liberalisation.

2. The Challenge

“TO ESTABLISH AN

ONLINE RETAIL CHANNEL TO

REACH NEW CONSUMER.”

Creation of an official online channel that allows Goodyear to improve the consumer experience and be able to re-channel all the sales leads to a huge network of Goodyear workshops across Malaysia.

3. The Solution

2 Goodyear official stores were set up on the Ecommerce platforms that have the highest traffic ( Lazada & Shopee ). Each purchase that comes in will be directed to a workshop nearest to the customer at their preferred timing. This method has solved a few key problems:

• Venturing into top Ecommerce platform allows Goodyear to reach new customers early in their purchase journey.
• Goodyear can channel all the sales to support its’ huge network of offline workshops.
• To create a consistent customer experience, every tyre purchase came with an appointment setup with the Goodyear Autocare centres to ensure it is installed by tyre experts.
• For consumer, it is a better tyre-purchase experience. They can search for tyre in the comfort of their home. There’s virtual shop assistant to support them throughout the journey. And workshop appointment will be scheduled for them at their convenience. This is in stark contrast to having to visit a few workshops for quotation and the common experience of bad workshop experience.
•  Online marketplace storefront setup with consumer focused navigation and categories to ensure customer can find what they need easily (as tyre has many sizes and types). 

• Create smooth workflow with the workshops. Training was provided to workshops to familiarize them with the Ecommerce process.
• Order and Payment Processing

• Developed processes enabling Virtual customer assistant and FAQs
• Demand generation through digital marketing to reach targets who are in the market to search for tyre
• Product page optimization to ensure potential customer has the best impression and gets all the information they needed regarding Goodyear tyres.

• Search Engine Optimized Product headings and descriptions to capture search volume in Lazada and Shopee marketplace
• Distribution of sales to workshops closest to customer and setting up installation appointments.
• Promotion planning to ensure Goodyear utilizes the different seller tools available to maximize exposures within marketplace platform
• Reviews management – encourage customers to leave a review and addressing all reviews with quick turnaround

4. The Results

• For six months in a row, sales increased by 30%.
• 93% of reviews given are 5-Stars citing great customer experience, customer support and easy buying process
• Store coverage started with 3 states and have expanded to reaching the whole of West Malaysia.
• Goodyear LazMall is featured as the Top 5 Automotive brand in Lazada Mall in December 2021 and Mar 2022
• Top 3 automotive seller during Lazada & Shopee special promotion days.

Final Thoughts

To support business owners in realising their goals, Commerceplus was created. From branding and content creation to shipping, delivery, and customer service, we provide a complete, one-stop solution. We take pleasure in being growth experts at every level of the online sales process, having grown brands like GoodYear. Are you prepared to write the next success story?  Let’s Work Together,  Send us an email at [email protected] or get in touch with us to arrange a quick 30-minute audit. 

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How Goodyear Became the Highest-Rated Workplace by Surveying Employees

by Jessie O'Brien on September 30, 2022

Goodyear became a top-rated workplace by surveying their employees and implementing changes based on their feedback.  Understaffing, struggling operations, and low morale are a few of the challenges facing local government leaders today. It’s difficult to know how to recover and create a productive workplace. But with consistent effort, strategic adjustments, and teamwork, change is possible. 

Since 2014, Goodyear, Arizona , has conducted The National Employee Survey® (The NES®), an assessment that measures local government staff members’ feelings about their jobs. Eight years ago, many of their results were below average. Communication was lacking, many felt meetings were ineffective, and there were very few coaching and mentoring opportunities, among other issues. But after diligent improvements and surveying employees every two years to track progress, Goodyear has become one of the highest-rated governments on all categories across The NES. 

Establishing a Culture

Formally defining their workplace culture was an invaluable step in reaching their goals. Goodyear is one of the fastest-growing cities in the nation (with over 46% growth in the past decade), which meant new people were joining the City’s staff of more than 700 employees. 

In 2018, the City's leadership started the Intentional Design of Goodyear’s Culture, an initiative that defined, claimed, nurtured, and solidified the City's culture. The Intentional Design team landed on six core values: empathy, initiative, optimism, innovation, integrity, and adaptability. They also established the City's culture statement, “We care—We achieve—We celebrate.”

From there, they spent three months engaging in discussions with every team member on what each of the values meant and the behaviors associated with that particular word. Locket said educating and creating a common language was critical to making changes. Human Resources developed leadership packages to share with the various managers so everyone received the same message. 

As a result, positive responses for “my mission and vision makes me feel like my job is important'' increased from 77% to 94%—the highest in the nation. Positive responses for “my values fit the values of the organization” and “I feel positive working for the city of Goodyear” also increased. 

“There are many different areas of the survey that we felt confirmed that the work that we're doing has made big impacts” Locket said. 

Making Changes Based on Employee Surveying

After the first survey in 2014, Goodyear planned a Leadership Summit that brought management together to dive into results and determine where they could make the most effective changes. The four focus areas they landed on included: timely communication, recognizing good work, career development opportunities, and managing low-performing employees, all of which were rated 65% or below at the time. 

Goodyear also established a People Master Plan Committee that looked at opportunities to improve the employee experience. Goals were then outlined in their People Master Plan. 

Even pre-Covid, Goodyear offered flexible schedules like 4/10s or 9/80s, which satisfied employees’ desire for more flexible schedules. Post-Covid, they added remote work days. Locket said they did a compensation study to make sure that Goodyear’s salaries are competitive. And Goodyear also implemented various tools to improve performance development and communication. 

Threads Culture rates staff on their performance as well as core values. The platform provides clear expectations for their employees. It also includes a recognition system, which allows anyone in the organization to give feedback to another employee. It’s also where Goodyear employees report feedback and progress on goals for quarterly check-ins. 

“The intention is for the supervisors to be able to see this information so they can address things more often and communicate back and forth with staff,” said HR Analyst Kristin Zipprich. And while consistent face-to-face communication is encouraged, Zipprich said the process allows supervisors to recognize issues and high performance more often.

As a result of the new systems, positive responses on coaching and mentoring opportunities, recognizing high-performing employees, providing constructive feedback, and communicating expectations all improved 10% to 20% from 2016 to 2022. Managing low-performing employees also increased from 36% to 73%, making Goodyear the highest-rated nationally for this metric. 

Managing low-performing employees is a common issue among local governments, and is one of the lowest scoring questions on The NES, only 37% positive overall. Locket said the feedback system and defining clear expectations led to the improvements. 

“When dealing with low-performing employees, everyone was on the same plane of understanding what the expectations were,” Locket said.

Achieving a High Participation Rate

Goodyear’s participation rate is equally as impressive as their results. In 2022, 90% of employees filled out the survey. Around 60% is average. In 2018, they received about a 80% response rate, which is still extremely high. Locket said he was proud of that number, but the City Manager, Julie Karins, had higher ambitions. 

“When we were ready to do the next cycle, she said, ‘No, we want 100%.’ So our goal has been 100% since then,” Locket said. “It has become an obsession with our organization. We want all of our employees to speak, and this is their opportunity to have a voice.” 

Goodyear leadership also heavily promotes The NES. Some directors brought iPads to employees who worked out in the field and were harder to reach. And the first survey announcement comes directly from the City Manager, who puts her own voice into the messaging. “It’s an important initiative from the top of the organization,” Locket said. “The voice of the employee and the survey itself is held in high regard.”

After so many years, The NES became part of Goodyear's culture.  “We report [response rate] out to each director and create competition by letting them know what percentage they completed in their department,” Locket said. “It’s a known goal throughout the organization.”

Even though the survey takes place every other year, it’s constantly discussed. New employees learn about it at orientations and are involved in all internal planning initiatives. 

“We talk about it constantly, we create action plans with it, and we actually make changes based on the results,” Zipprich said. 

Moving Forward  

Like years prior, Goodyear will take their most recent results to the leadership team to come up with next-steps. They will host another Leadership Summit to dissect the survey and make a plan that fits into the People Master Plan and culture initiative before they present ideas to Council. 

“In 2022, we are going to continue to work on how to achieve the ultimate employee experience. That’s our goal. We tell our new employees that we want this to be the best place you ever worked,” Locket said. “We work hard at it and we use The NES as a report card. We take it seriously.”

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Head office, united states, the challenge.

GoodYear was seeking a solution to give customer rebates without downgrading their product placement or pricing perception. The goal was to create an exciting opportunity for loyal clients to receive a cash back reward for purchasing GoodYear tires, as opposed to other competing brands. When it comes to cash rebates, the headaches of managing cash can become a nightmare. GoodYear required a solution that ultimately facilitated this cash management approach. ​

Founded in 1898, the Goodyear Tire and Rubber Company is an American multinational tire manufacturing company. Over the past century, Goodyear has developed into one of the largest tire companies in the world and is now a publicly-traded company. Today, Goodyear has over 60,000 employees operating in 21 countries, boasting annual sales of more than $15 billion.

Case Studies     ›    Goodyear

The Solution

Following a clients in-store purchase, a Mastercard® card is now mailed to the clients with their cash back reward loaded onto their prepaid card. The card can be used anywhere that Mastercard is accepted without any fees or penalties for redeeming their reward.

A prepaid Mastercard program white-labelled to match client branding

Improved process for delivering and spending cash rebates

Simplified management of customer cash-back initiative

Increased brand exposure with a custom-designed card

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Goodyear Case Study

Arifur Rahman Case Problem: Goodyear Tires and Robber Company Professor: Arnold Pollack July 28, 2009 A. How would you characterize the competitive environment in the tire industry in 1991? The tire industry divides into two, broad segments: original equipment (OE) tires and replacement tires. The OE segment accounts for 20-25 percent of tires sold annually; unit sales are trending downward. The replacement tire segment accounts for 70-75 percent of tires sold each year; the unit sales trend is “flat”. Passenger car tires account for 75 percent of annual sales.

Although 10 tire manufacturers account for 75 percent of worldwide production, three firms account for 60 percent of all tire sales sold. They are in order: Groupe Michelin, Goodyear, and Bridgestone. These firms compete in both the OE and replacement tire segments. Although Goodyear is second to Michelin in worldwide production, it is the perennial U. S. market leader in both the OE and replacement segments. Even though the OE segment is smaller, it is viewed as strategically important by tire manufacturers for two reasons.

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First, prominence in the OE segment provides volume related scale economics in the production of tires. Second, it is believed that car/truck owners satisfied with their OE tires on new vehicles will buy the same brand when they replace their worn tires. However, the case also states that passenger replacement tire buyers are becoming more price sensitive and less likely to simply replace their branded OE tire with the same brand of replacement tire. Overall competition is intense in both the passenger OE and replacement tire segments.

The nature and scope of competition differs, however. Competition in the OE segment revolves around the major vehicle manufacturers and supplying some or all of the tire needs for their new model year cars and trucks. OE tires are essentially “produced to order” and may be viewed as a “commodity” by vehicle manufacturers. Competition in the replacement tire segment occurs across the marketing mix. Major tire manufacturers compete on the basis of “retail points of sale,” product variety and innovation, price and promotion (advertising, retail promotions, and event sponsorship).

B. What is Goodyear’s relative competitive position within the tire industry? Goodyear is the second largest tire manufacturer in the world, behind Michelin which manufacturers and markets the Michelin and Uniroyal/Goodrich brands. The Goodyear brand is the single largest brand, in terms of sales to the OE tire segment. Its share of this segment is 38 percent. It is noteworthy; however, that Michelin with its Michelin and Uniroyal/Goodrich brands combined capture 30 percent of the OE tire segment. Goodyear brand tires capture the largest portion of sales in the U.

S. replacement tire market: 15 percent of passenger car tires, 11 percent of light truck tires, and 23 percent of highway truck tires. Company wide share increases in each category when sales of its Kelly-Springfield brand is included One might also note that Goodyear’s relative competitive position is due, in part, to the following: The broadest line of tire products of any tire manufacturer: product line width and depth. The largest number of “points of sale” for any branded tire with controlled distribution; that is, company owned and franchised dealers.

Price Performance Positioning: Premium pricing supported by product innovation and umbrella brand advertising that emphasizes, “The best tires in the world have Goodyear written all over them. ” Nevertheless, there is evidence that Goodyear has encountered some problems which can be categorized as follows: • Flat or downward trend in OE tire volume. Goodyear has likely felt the effect of plateaued unit volume in the OE segment (see case Exhibit 3). Unit volume growth is possible through market share gains; however, market share is increasingly “purchased” through lower prices to vehicle manufacturers.

Lower prices serve to squeeze already slim profit margins in the OE segment as indicated in the case text. • Changing retail distribution. Exhibit 1 in the case shows that tire company stores share of replacement tire sales declined somewhat from 10 percent in 1982 to an estimated 9 percent in 1992. The market share for replacement tire sales captured by retailers not serviced by Goodyear (discount multi-brand independent deals, chain/department stores, and warehouse clubs) has grown from 17 percent in 1982 to 35 percent in 1992.

Given Goodyear’s primary distribution through company owned Goodyear Auto Service Centers and company franchised Goodyear Tire Dealers, which represent tire company stores, the company is effectively “closed out” of retail outlets that are capturing a larger percentage of the replacement tire segment. • Decline in replacement tire market share in the U. S. Goodyear recorded a 3. 2 percent decline in the U. S. passenger car replacement tire market between 1987 and 1991. This decline represented a loss of about 4. 9 million units according to a company spokesperson.

Moreover, the case notes that the replacement tire market, which accounts for some 60 percent of Goodyear worldwide sales, is more profitable than the OE market. C. Does it make strategic sense for Goodyear to broaden its distribution beyond company owned and franchised Goodyear tire retailers as a matter of channel policy? Why? As indicated earlier, the changing retail environment would strongly suggest that non-company owned or franchised tire company stores are capturing a larger percentage of replacement tire volume (see case Exhibit 1). The principal retailers gaining share are discount multi-brand independent dealers.

These dealers more than doubled their market share (7% to 15%) from 1982 to 1992. During the same time frame, warehouse clubs went from 0 percent to 6 percent. Tire company stores recorded a modest decline in market share from 10 percent in 1982 to 9 percent in 1992. It is also worth noting that chain and department sores actually experienced a decline in market share (20% to 14%) from 1982 to 1992. This change has direct implications for a decision to sell through Sears as discussed in part D below. Broadened distribution through Sears represents a change in distribution policy in two ways.

First, Goodyear is moving beyond a form of exclusive distribution evident in company owned and company franchised Goodyear tire retailers. As such, Goodyear will (a) increase its retail density/coverage, (b) but possibly decrease its control over retail marketing practices, and (c) reduce the “exclusivity” of the brand. Second, distribution through Sears suggests that Goodyear is exploring a dual distribution strategy. A critical issue with dual distribution is that different channels reach different customers – an issue discussed in part D below.

Broadened distribution through Sears should increase the volume of sales for Goodyear, but possibly it may create channel conflict and affect trade relations with franchised Goodyear Tire Dealers. The extent and severity, however, is not known, nor its franchise retailer reaction, i. e. , incidence of carrying more private labels and switching tire buyers to competing brands. D. What are the strategic implications of broadened distribution of Goodyear brand passenger tires through Sears Auto Centers? Based on the case information, reconsideration of the Sears proposal is a defensive strategic move.

Declining market share in the replacement tire segment, changing retail structures, and “flat” OE tire volume resurrected the Sears proposal. It is also noteworthy that a new management team is now looking at the Sears proposal. It may be that they are less tied to past Goodyear distribution/channel policies or strategies. From a strategic perspective, one may be directed toward the three criteria for choosing a marketing channel as described in Chapter 7: ¦ Provide the best coverage of the target market sought. ¦ Satisfy the buying requirements of the target market sought. ¦ Maximize potential revenues and minimize cost.

Target Market Sought: What is the target market? Is it… …Loyal Sears’ customers with worn-out Goodyear or competitor tires? …Vehicle owners in general with worn-out Goodyear or competitor tires? If it is the loyal Sears customer, then this segment is separate and distinct from Goodyear dealers and represents a previously untapped segment and incremental tire unit sales, or a portion thereof. This segment represents 2 million tires according to Goodyear executives. If the target segment is vehicle owners in general with worn-out tires, then cannibalization of Goodyear dealers’ tire sales is more likely.

Buying Requirements: What do replacement tire buyers want and how well do retailers satisfy these wants? It is reasonable to conclude from the case text that replacement tire buyers are highly price conscious, and prefer choices (some “price-quality” ranges). It is also reasonable to believe that prompt and proper installation, a “pleasant” tire store environment, and credible salespeople are important since tire buyers appear to know little about the quality. Can Sears satisfy these wants? Sears currently captures 5. 5 percent of the passenger car replacement tire segment. Sears’ share has declined from 6. percent in 1989 to 5. 5 percent in 1991. Is this decline in market share indicative of Sears’ ability to satisfy buyer requirements? Revenues/Cost: Will broadened distribution through Sears generate incremental revenue? As stated earlier, yes it could provided the loyal Sears customer is the target market segment reached and the draw from Goodyear dealers is minimized. Unfortunately, there is no specific cost data in the case to assess the profit impact. Potentially useful calculations concern the average number of units sold by Sears Auto Centers and Goodyear tire dealers.

As shown in Exhibit 3 below, on average, a Sears’ outlet sold some 10,055 replacement tires in 1991 compared with 2,927 replacement tires sold through Goodyear tire dealers. Revenue and outcomes data are truly inconclusive E. What effect, if any, does the number of brands and specific brands sold through Sears have on the distribution decision? Why? The number of brands and specific brands sold through Sears has a very important effect on the distribution decision. The brand (product) policy decision can be again viewed from three parties: Goodyear Company, Sears, and franchised Goodyear Tire Dealers.

The Goodyear Company and Sears might benefit more from having Sears carry the full line of Goodyear brand tires. Franchised Goodyear Tire Dealers would benefit from fewer brands being sold through Sears. . In general, there are four brand (product) policy choices available to the Goodyear Company. They are: a) Distribute only the Eagle brand through Sears since this brand was part of the original proposal made by Sears in 1989. Note: Based on case Exhibit 9, the Eagle brand represents 12 of the 30 (40%) Goodyear brand models. b) Distribute the complete brand (product) line through Sears. ) Sell certain brands through Sears and others through dealers, i. e. , Sears’s gets exclusive rights to Goodyear Eagle and Arriva brands. Goodyear Tire Dealers retain exclusive right to all others. d) Provide some brand model exclusivity for both Sears and franchised Goodyear Tire Dealers and let both retailers carry the other brands, i. e. , Sears gets only selected Eagle brand models; Goodyear Tire Dealers have the Aquatred on an exclusive basis and top quality brand models (e. g. , Eagle GT II) and other brands, except designated Eagle brand models. A cursory glance t case Exhibit 9 describes the brands and models and their tread wear, traction, and temperature ratings which correspond to both quality and price. As a quick point of reference, the following categorization can be derived from Exhibit 9: |Higher Quality/Price |Lower Quality/Price | |1. Aquatred |1. Decathlon | |2. Eagle GT II |2.

T-Metric | 1. 6. Should Goodyear broaden its distribution through Sear’s Auto Centers? If yes, what brands or models should it sell through Sears? Yes Goodyear should broaden its distribution through Sear’s Auto Centers. Provide some brand model exclusivity for both Sears and franchised Goodyear Tire Dealers and let both retailers carry the other brands, i. e. , Sears gets only selected Eagle brand models; Goodyear Tire Dealers have the Aquatred on an exclusive basis and top quality brand models (e. g. , Eagle GT II) and other brands, except designated Eagle brand models.

A cursory glance at case Exhibit 9 describes the brands and models and their tread wear, traction, and temperature ratings which correspond to both quality and price. As a quick point of reference, the following categorization can be derived from Exhibit 9: |Higher Quality/Price |Lower Quality/Price | |1. Aquatred |1. Decathlon | |2. Eagle GT II |2. T-Metric |

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Best original tires on new cars, trucks and SUVs in 2024

W hen you're shopping for a new car , you take a wide range of features and equipment into consideration before making your final decision. But one factor that's probably not a deal-breaker is what tires the car is wearing. If you think about them at all, you might figure that you'll live with them until they need replacing and then buy the exact tires you want. As it turns out, a lot of vehicles these days are getting excellent original-equipment tires from esteemed brands like Michelin , Goodyear or Continental . A new J.D. Power survey shows that while owners are pretty satisfied with the results, EV owners are less so.

The J.D. Power U.S. Original Equipment Tire Customer Satisfaction Study assigns a score, on a 1,000-point scale, that ranks owner satisfaction, and in each of four categories the segment average score was roughly around 800 points. (Details in the charts below.) Tires designed for EVs have been making gains in this annual survey; however, the study also found that many buyers were not made aware that these tires, made from low-rolling-resistance compounds, have a tendency to wear faster.

“The widening satisfaction gap between EVs and gas-powered vehicles highlight an opportunity for tire manufacturers and automakers to educate EV owners on the differences in performance,” said Ashley Edgar, a senior director at J.D. Power. “Additionally, because of the inherit conflict of maximizing vehicle range and optimizing tire wear for EVs, tire manufacturers and automakers need to work together to overcome the challenge without completely sacrificing tire performance in other areas, especially as the EV market continues to increase.”

The survey gathered owner opinions in four categories. In order of weighted importance, they are: tire ride; tire wear; tire traction/handling; and tire appearance. (That last one seems like an odd criterion to us; if a tire rides well, is quiet, wears like iron and provides great traction and handling, who cares what it looks like?)

The study also broke down results by vehicle category: passenger car, luxury car , sport/utility, and performance/sport. The study surveyed 31,414 owners of 2022 and 2023 model-year vehicles.

The results? They're not unexpected: Michelin topped three of the categories — in the case of luxury cars, it has topped this annual survey for 21 years running. In the truck/SUV category, Falken ranked No. 1.

These rankings do not reference particular tire models, just brands. Though in any particular category, you can make an educated guess by cross-referencing with ratings and recommendations at Consumer Reports , Tire Rack and elsewhere.

J.D. Power new-car tire rankings:

Truck/utility.

• Falken, 818 points
• BFGoodrich, 812
• Hankook, 804
• Michelin, 802
• Goodyear, 789
• Bridgestone, 783
• Pirelli, 783
• Segment average, 781
• Continental, 765
• Firestone, 725

Performance/Sport

• Michelin, 833
• Segment average , 809
• Pirelli, 798
• Goodyear, 788

Passenger car

• Michelin, 823
• Goodyear, 811
• Bridgestone, 797
• Segment average , 797
• Yokohama, 793
• Falken, 787
• Pirelli, 787
• Continental, 786
• Firestone, 786
• Hankook, 785
• Michelin, 834
• Goodyear, 812
• Continental, 811
• Segment average, 810
• Bridgestone, 803
• Pirelli, 793

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