MKT 4451 Chapter : Goodyear 4451
Document Summary
Experiments with everyday low pricing in the tire industry had been unsuccessful because price competition among dealers undermined attempts to set consistently low but fair prices. As one dealer explained, consumers expect to buy their tires on sale. Goodyear directly sold passenger tires to large chains and wholesalers, with no retail operations who resold their tires to car dealers, service stations, small independent dealers, and other secondary outlets. This accounted for 10% of goodyear"s factory sales. Another 40% went to large chains that both sold tires at retail and resold tires to other dealers or to secondary outlets. The remaining 50% went to small independent dealers who bought tires to resell in their own retail outlets and did not resell to other outlets. Goodyear"s 4,400 small independent dealers accounted for 50% of sales revenues, while the. 1,047 manufacturer-owned outlets generated 30% of sales (the remainder of sales occurred primarily through franchised dealers and directly to government agencies).
