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Marketing Analysis - Tires

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Marketing analysis conducted for tire industry from a consumer\'s point of view and what they must consider when making this purchase.

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Marketing Analysis - Tires

  1. 1. Tires<br />Group Members:<br />Nathan Hensyel <br />Brandon Evans<br /> Aries Gomez<br />Breona Johnson<br />Luis Ramirez<br />
  2. 2. Promotion<br />Tire Commercials<br />From 1990 to 2003, the total number of scrap tires going to market increased from 11 million to 233 million. Of all the scrap tires discarded today, over 75 percent are recycled or used for fuel or other applications.<br />
  3. 3. Purpose<br />Our Target audience is College students<br />To collect tire prices from seven different stores and compare price variations<br />To explain why there was a variation in price?<br />We had to choose five of the same tire brands for each store<br />
  4. 4. Our Control and Variables<br />2000-2009 Toyota Camry was the car we used to find the tire prices<br />We asked for prices on all season tires<br />The stores we chose were:<br />Les Schwab<br />Costco<br />Wal-Mart<br />Sears<br />Discount Tires<br />Northwest Tire & Auto<br />Tire Rack <br />
  5. 5. Les Schwab<br />Location:<br /> #7 Spokane St.<br /> Cheney, WA 99004<br />Tire Prices and Brands:<br />95H Formoza FD-1 - $62.96ea. <br />95H SS-657 - $81.52ea.<br />94H Zexius XI-427 - $93.95ea.<br />92T Eclipse - $112.55ea.<br />94T Tourevo - $129.76ea.<br />Warranty: Extended-Life<br />Free Road-Hazard Protection<br />Free Flat Repair<br />Free Tire Rotation<br />Free Tire Rebalance<br />Free Tire Inspection<br />Free Air Check<br />Snow Tire Installation and Removal<br /><ul><li>Installation:
  6. 6. Wheel Spin Balance - $12.25
  7. 7. Tubeless Valve System - $4.25</li></li></ul><li>Les Schwab S.W.O.T.<br />Strengths:<br />Private Manufactured Tires<br />Over 400 Store Locations<br />Weaknesses:<br />High Priced Labor<br />Hours of Operation<br />Opportunities:<br />Small Town Locations<br />Free-Beef<br />Threats:<br />Stores with Cheaper Labor<br />Competitive Prices<br />
  8. 8. Costco<br />Location:<br /> 7619 N Division St.<br /> Spokane WA<br />Tire Prices and Brands:<br />Michelin: $134.99ea.<br />BF Goodrich: $90.99ea<br />Warranty: 60,000 miles<br /><ul><li> Installation: $14.00 per tire
  9. 9. Care Warranty: Lifetime tire rotation, 5 year limited warranty. </li></li></ul><li>Costco S.W.O.T<br />Strengths:<br />Tires could be ordered online <br /> and shipped to warehouses for <br /> free<br />Costco Advantage Plan<br />Road Hazard Warranty<br />Weaknesses:<br />Carries Only 2 Brands of Tires<br />Offers are for members only<br />Opportunities:<br />Carry More Brands of Tires<br />Threats:<br />Discount Tire Stores<br />Other Online Stores<br />
  10. 10. Wal-Mart<br />Location:<br /> 15727 E Broadway Ave, Spokane Valley<br />Tire Prices and Brands<br />Goodyear: $145ea.<br />Michelin: $155ea.<br />BF Goodrich: $150ea.<br />Bridgestone: $127.99ea.<br />Warranty: 60,000miles<br /><ul><li> Installation: $Free Included in price of tire. </li></li></ul><li>Wal-Mart S.W.O.T<br />Strengths:<br />Lots of locations<br />Variety of brands<br />Weaknesses:<br />Bad customer service<br />Low end brands<br />Opportunities:<br />Television promoting for tires<br />Advertise free installation<br />Threats:<br />Cheaper place like Sears <br /> or Discount Tire<br />Better service from Les Schwab <br /> or Smaller tire store<br />New Logo<br />Old Logo<br />
  11. 11. Sears<br />Location:<br /> 4700 N Division St.<br /> Spokane WA<br />Tires and Brands:<br />Firestone: $72.96ea.<br />Bridgestone: $84.94ea.<br />Goodyear: $90.21ea.<br />Michelin: $109.99ea. <br />Cooper: $78.84ea. <br />Warranty: Price Match Plus Policy<br /><ul><li> Installation: $11 per tire</li></li></ul><li>Sears S.W.O.T<br />Strengths:<br /><ul><li>Well known brand
  12. 12. Able to use Sears Card </li></ul>Weaknesses:<br /><ul><li>Not known for selling tires</li></ul>Opportunities:<br /><ul><li>Customers at Sears that did not </li></ul> come to shop for tires<br />Threats:<br /><ul><li>Online stores like Tire Rack</li></li></ul><li>Discount Tire<br />Location:<br /> 9519 E Sprague Ave<br /> Spokane Valley<br />Tires and Brands:<br />Michelin: $108ea.<br />Bridgestone: $100ea.<br />Goodyear: $106ea.<br />BF Goodrich: $74ea.<br />Warranty: No warranty<br /><ul><li> Installation: $14 per tire
  13. 13. Care Warranty: Free lifetime rotations. </li></li></ul><li>Discount Tire S.W.O.T<br />Strengths:<br /><ul><li>Location- Right off of Division in </li></ul> Spokane<br />Weaknesses:<br /><ul><li>Doesn’t appeal to customers who </li></ul> are looking for a higher quality product<br />Opportunities:<br /><ul><li>Mail Coupons, and Incentives. </li></ul>Threats:<br /><ul><li>Online tire stores like Tire Rack
  14. 14. Stores like Les Schwab or Sears </li></ul> that appeal to customers looking for quality<br />
  15. 15. Northwest Tire & Auto<br />Location:<br /> 8027 N Division St, Spokane<br />Tires and Brands:<br />Firestone: $100ea.<br />Bridgestone: $77.50ea.<br />Cooper: $95.74ea.<br />BF Goodrich: $100ea <br />Warranty: 70,000 miles<br /><ul><li> Installation: $Free, included when you purchase tires
  16. 16. Free brake rotation every 6,000 miles </li></li></ul><li>Northwest Tire and Auto S.W.O.T<br />Strengths:<br /><ul><li>Location- Right off of Division in </li></ul> Spokane<br />Second location on N Pine Road<br />Weaknesses:<br /><ul><li>Very little advertising and promotion.</li></ul>Located right next to a larger Les Schwab<br />Opportunities:<br /><ul><li>More advertising
  17. 17. People who are fed up with poor service at larger chain auto stores. </li></ul>Threats:<br /><ul><li>Online tire stores like Tire Rack
  18. 18. The large amount of competing tire stores in the immediate area.</li></li></ul><li>The Tire Rack<br />Location: Online<br />Tires and Brands: <br />Firestone: $74ea. <br />Michelin: $108ea. <br />Bridgestone: $83ea.<br />Goodyear: $72ea.<br />BF Goodrich: $69ea.<br />Partnering Store: Spokane Tire Factory<br />Warranty: 4-6years. <br /><ul><li> Shipping: $54
  19. 19. Installation: $15-25 </li></li></ul><li>The Tire Rack S.W.O.T<br />Strengths: <br />Can shop from home<br />Easy to use website<br />Weaknesses:<br />Lack of personal customer service<br />You have to wait to get the tires<br />Opportunities: <br />Have more partner stores<br />Threats:<br />Stores like Discount Tire or Wal-Mart. <br />
  20. 20. Market Analysis <br />P<br />R<br />I<br />C<br />E<br />Stores<br />
  21. 21. Interpretation of Data<br />Cheapest store to go to for Michelin tires or the equivalent would be Les Schwab.<br />Cheapest store to go to for BF Goodrich would be Tire Rack.<br />Cheapest store to go to for Goodyeartires would be Tire Rack. <br />Cheapest store to go to for Bridgestone tires would be Northwest Tire.<br />Cheapest store to go to for Cooper tires would be Sears.<br />Cheapest store to go to for Firestone tires would be Sears. <br />
  22. 22. Interview with Les Schwab Manager<br />What do you think Les Schwab’s greatest threats are?<br />Biggest threat is not explaining services and warranties properly, which leads customers to believe that Les Schwab is higher priced than their competitors.<br />Why isn’t the majority of your competition as successful as Les Schwab?<br />Les Schwab has over 400 stores so convenience is a huge leg-up for business.<br />Warranty<br />Outstanding Service<br />What do you think Les Schwab’s greatest opportunities are? <br />Free-Beef Promotion<br />Does Les Schwab have their own private manufacture? <br />Exclusive Tires to Les Schwab<br />Good Relationship with certain manufactures such as Toyo Tires <br />Because Les Schwab manufactures tires, is that the reason why you are able to keep your prices lower than your competitors?<br />Due to Exclusivity <br />Customer Service is their #1 goal and it’s what keeps customers coming back<br />
  23. 23.
  24. 24. Manager Jared’s Recommendation – “What tire is best in your opinion?”<br />92T Eclipse is the best purchase considering price-to-quality.<br />All Seasons Black wall<br />70,000 mile warranty <br />Exclusive tire so no other tire company has it in stock except for Les Schwab<br />
  25. 25. Conclusion<br />Although we had trouble finding the same five tires at each store we were able to make conclusions from each store.<br />Each store has their top selling tire, and they pay to use the top brands.<br />Customer Service and Warranty to some people means more than the price of the tire. <br />

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