Goodyear is preparing to launch a cutting-edge new tire with a unique tread design and outstanding performance features for wet and snowy roads that would give it conspicuous brand differentiation in the market. The product category is highly price sensitive and very competitive. This case involves marketing channel issues as well as the difficult management decisions involved in competitive positioning with mature product categories such as tires. The new line of tires is known as Aquatred, which features a an innovative aquachannel groove that purportedly provides better handling on wet roads, one of the features most consistently asked for by consumers, according to market research. The key question is whether to take the expensive and risky gamble of launching the line of tires at all. This decision depends on a careful analysis of channels of distribution, as well price positioning, and the timing of the launch.
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