Goodyear Notes
Goodyear
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. 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......
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Approximate Word Count: 906
Approximate Pages: 4 (250 words per double-spaced page)
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