Problem Statement:With the development of Aquatread (AT), a differentiated premium tire aimed at the wideline aftermarket; Goodyear (GY) must reevaluate its competitive position and distribution systems in the North American tire market. GY is currently the market leader in the aftermarket with a market share of 15% (sales of 22.8 million units). GY's marketing strategy, particularly the launch of AT, must be examined in the context of evolving consumer purchasing patterns and distribution channels, as well as alignment with the company's strategy to differentiate GY through its brand . The main marketing decisions to be made are: whether GY will launch AT, whether GY will expand its distribution, and whether or not AT will be included in this expansion. The replacement tire market. The US replacement tire industry (152 million units) had seen; stagnant growth (5-year CAGR 1.1%), declining prices (25% in 10 years), foreign imports, excess capacity, brand consolidation and longer tire life. These factors have contributed to a market shift towards a competitive market, similar to that of commodities. Major brands account for 36% of the market, with private label (PL) holding the largest share (40%). The market's distribution channels have shifted towards independent retailers (67%) and large-scale organized distribution (19%). Exhibit 1 details the market share and price levels within channels, as well as the level of service received by consumers. Consumer and Segmentation Analytics: 50% of consumer purchases are made on the same day that consumers are aware of the need to replace tires. Purchases are likely to be made in convenient locations with little research and only 1-2 tires replaced. For planned purchases, the primary performance...... middle of paper ...... presence in this channel through the Kelly brand and it is preferable to cannibalize sales towards GY products. Threats to this broader distribution are GY's relationship with independent retailers and the potential erosion of its brand. However, there is no other major brand that distributes exclusively in the independent channel, so retailers have no choice and sales are lost to PL especially in this channel. Additionally, many independents are moving into stocking other brands, so GY needs to move into new channels. GY could also only offer a limited range to mass merchandisers, unlike retailers who have the full line plus the new AT. The media campaign and the introduction of AT should provide a sufficient boost to the value of the GY brand. In the long term (after 1 year), GY may consider including AT in the mass market, but GY's market position should be re-examined.