Marketing case analysis Essay Example | Topics and Well Written Essays - 500 words - 6

Marketing case analysis - Essay Example Accepting Sears’ proposal means that Goodyear would have to change its distribution policy. There can be certain changes such as including their own Goodyear seller that would carry this brand exclusively. The reason for doing this is that Goodyear would have their own channel through which it can sell more and more to its customers. The customers would not have to go anywhere else for buying Goodyear’s tires because Goodyear would have its stores made available everywhere within the customers’ reach. Also, it is said that channel of distribution must be selected carefully so that it is within access of most possible customers and provides a number of prospects (Linton, n.d.) . But there are some limitations as well. Firstly, the dealers might influence the customers to buy other brands because there are very few dealers who have the full knowledge of tires. Secondly, brand loyalty and tires have high tendency of being elastic in demand. One day, customer might w ant Goodyear but the other day the customer could decide to go for Sears or any other brand. Thirdly, product cannibalization might appear between Sears and the franchised dealers. Moreover, continuing sales to Sears would also trigger another concern that whether to sell the Eagle brand only or sell some other specific products as well. The other solution is to reject the proposal and maintain the status quo. This can cause a lot of problems. Already, Goodyear is facing decline in the current market position and loss of market share by 3.2%. There is high competition and Goodyear has no strong market share outside the American continent. The cut throat competition in both price and quality might cause greater problems for Goodyear. The conclusion lies with the decision of accepting the Sears proposal. By employing this action, there would be an increase in the distribution channel leading to an increment in the revenues for Goodyear. This would prove