Could I get some ideas on how I can promote the below strategies? The company is Goodyear Tire Company.
The first strategy is a recycled tire strategy. How do we promote? Ideas etc.
The second strategy is a new tire strategy. The tire would be called the "Armadillo". How and where would we promote this new tire in Brazil?
Goodyear primary objective is to gain Brazilian market share and reduce operating cost through XXXX and utilizing recycled tires.
• Utilized recycled tires to reduce the need to buy natural rubber and oil on the world market.
Expand Recycled tire operations in Brazil
Goodyear is susceptible to volatile raw material prices. The principal raw materials used by Goodyear are natural and synthetic rubber. Goodyear purchases all of its requirements for natural rubber in the world market and all other raw materials are purchased from independent suppliers. However, The price of rubber has surged in recent years, from a low of 56.7 US cents/pound in December 2008 to 280.79 US cents/pound in February 2011. In 2011, Goodyear's raw material costs increased by approximately 30% in its tire businesses compared to 2010. Goodyear tire should utilize reclaimed tire rubber to reduce costs in tire manufacturing. In addition, provide a mean to the Brazilian consumer to be more aware of tire recycling methods. Brazil is ranked second in the world regarding concern for sustainable consumption according to the National Geographic Society.
Various global tire manufacturers including Goodyear 2007 created Reciclanip to help collection and transport unserviceable tires. Reciclanip has more than 460 independent collection points throughout Brazil. However, the tires sent are being sent recycling centers to be transformed into the alternative fuel that substitutes for coal. The tires are not being repurposed for new tires. This is a potential new opportunity to expand the use and reuse of unserviceable tires.
Very few recycled tires are being effetely utilized to help reduce raw material cost and dependence on natural and synthetic rubber. Tires are being ground up and used as playground material and mulch which is not in high demand in Brazil. A tire can be more effectively used if it can be converted into a saleable tire. In the past, rubber from scrap tires would be ground and reused as a low-volume filler material in a new tire. However, ground rubber use was generally a small percentage of new tires primarily due to product quality constraints .
New technology in tire recycling has allowed the old tires to be remolded into new tires. This new process can utilized up to 80% of recycled tires into new tires . This is a huge cost savings in raw materials which can also lower the overall cost of a new tire. In addition, the Brazilian government has limitations on tire retreading. This recycling method is a low cost way to generate a new tire with long life without having to retread. The re-molded tire would cost 30 - 50% less than a new tire.
The new "re-molding" tire recycling technology is more suited for Goodyear than recycling centers. This is due to the fact the new recycling method utilizes a tire molds which requires extensive capital equipment to purchase and maintain. Goodyear has five (5) tire manufacturing facilities in Latin America and can add the capability of tire remolding into their existing facilities.
By providing the Latin American tire manufacturing facilities the capability produce tires with 80% unserviceable tires will dramatically reduce the need to raw materials and can offer tires to the Brazilian customer at a much lower costs. The cost reduction would allow Goodyear to provide a low cost tire, without retreading, directly competing against other low cost Chinese tires. A Thirty-Seven Million dollar investment in the Latin American manufacturing is expected to grow Latin American Tires sales by 10% per year.
Recycled Tire Strategy:
Recycled Tire strategy can be promoted by pushing the cause of sustainability and environmental protection. Goodyear can attract consumers to purchase recycled tires not only on the basis of low pricing, but also by appealing to customers that purchase of recycled tires contribute towards environmental protection. Goodyear can push the use of recycled tires by engaging in PR activities and communicating the benefits of recycled ...
The expert discusses Goodyear's strategies for pushing new products in Brazil.