Goodyear strengthens brand portfolio and expands European coverage

With Goodyear as the fastest growing premium tire brand in Europe, the company is redefining roles for its house of brands.

After completing a comprehensive industry analysis and consumer segmentation study across Europe, Goodyear has unveiled plans to invest in and strengthen its portfolio of consumer brands, with a stronger premium role for Goodyear and redefined roles for its other brands, including Dunlop.

The objective is to strengthen Goodyear’s group position and expand its market coverage, thus offering a more complementary and competitive brand and product portfolio to address the industry trends and the different consumer profiles identified through the research. The new approach will enable Goodyear to work smarter with its network of distributors and retailers to maximize growth together, with product performance and brand power at the epicenter. 

Industry tiering trends

The industry tiering trends in the European market are predicted to undergo a significant shift between 2023 and 2028. The tier 2 and tier 3 segments are anticipated to experience growth, potentially at the expense of the tier 1 segment during this period. This trend is primarily attributed to inflationary pressures impacting consumer preferences and purchasing behavior.

Specifically, the tier 2 segment is projected to exhibit substantial growth, estimated to range between 2 and 3% by 2028. This growth signifies an increasing demand within this segment and highlights its potential to attract consumers seeking value-driven options without compromising quality.

Despite an anticipated slight decrease in volumes, the premium tier is expected to maintain its prominence as the primary revenue driver within the market. This is particularly evident in the higher rim size categories. The enduring strength of the premium tier underscores the continued appeal and perceived value of premium offerings among consumers, even in the face of evolving market dynamics.

Research highlights

The objective of the study was to gain an in-depth insight into consumers' perspectives on mobility, their perception of tire brands, and the criteria that guide purchasers’ decision-making. By synthesizing the insights gained from our research with industry trends, our goal is to curate the best possible product and portfolio choices for our customers, ensuring that they receive offerings tailored to their preferences and needs.

The key findings highlight:

• 74% of consumers consider tires as highly important and not as a commodity as per a commonly held misconception. 
• Brand awareness and reputation are the primary factors influencing consumer tire choices. 
• Consumers have different needs and preference when choosing tires in terms of features and benefits.

Brand awareness and reputation are the primary factors influencing consumer tire choices with 35% of responses. This is followed by personal prior experiences (25%), tire test results conducted by external entities such as specialized magazines (24%), and advice received from dealers (23%).

35% of consumers base their choices on tire performance, 51% prioritize tires that offer an optimal balance between quality and price and 14% of consumers are price-sensitive in their tire selection.

A complementary and competitive portfolio of brands and products      

Goodyear has defined clear roles for its brands to address different consumer profiles, to offer its most competitive portfolio of premium, value, and budget brands that can meet the needs of any type of consumer in an evolving market.

• The Goodyear brand will stand alone with a unique premium positioning, for consumers who want to upgrade their driving experience. As the fastest growing premium brand in Europe, its current range offers its strongest ever tire lineup. Goodyear will continue to offer award-winning products like the Vector 4Seasons, Eagle F1 Asymmetric 6 and UltraGrip Performance 3, featuring cutting-edge technologies and innovations.
• Dunlop will receive renewed focus and investment as a strategic player within the high-end value segment of the market, appealing to drivers looking for long-lasting quality at a fair price. Its repositioning makes it the strongest brand in this segment by awareness and purchase consideration, as demonstrated by the same consumer research. The Dunlop car tire range will expand to cover 84% of the market from 2024 with summer, winter and all-season products.

For drivers seeking affordable and durable tires, the company will offer brands such as Fulda, Avon, Dębica, Sava and Cooper. 

• Avon and Fulda will continue to be available across Europe and keep their significant role in the low-end value segment in the UK and in Germany respectively, where they hold considerable history and recognition in the value tier. 
• Dębica and Sava will continue to be available across Europe and keep their key role in the budget segment in the Eastern European countries. 
• Cooper Tires will have a long-term focus on 4x4 vehicle fitments, continuing its strong off-road position. 

All brands will be available throughout Europe to provide tire dealers additional options ensuring that partnering with Goodyear offers comprehensive coverage across the premium, value and budget segments.

Goodyear portfolio provides coverage for the entire market

The repositioning means that Goodyear group is poised to take advantage of a wider range of the market than ever before, with brands and products at every price point. This will enhance dealers’ choice when offering Goodyear tires. 

“Our ambition is to continue to grow Goodyear group’s market share and position Goodyear's portfolio as the most competitive in Europe,” explains David Anckaert, vice president of Goodyear’s consumer tire business in EMEA. “Our objective is to better deploy our brand portfolio to play to their individual and collective strengths, clearly offering a brand for every type of driver.

“As our premium brand, Goodyear will strengthen its image globally as a symbol of high performance, technology and efficiency. Our other brands are strategically positioned to offer value to our customers and provide a wide variety of options for consumers. 

“We are confident that our continued investments in the repositioning of Dunlop brand in Europe will enable us to capitalize on its brand awareness and drive channel growth within the top tier of the value segment.”

_{(1) IPSOS Category Drivers and segmentation study, 2022, commissioned by Goodyear. The study involved 7,200 car owners who had recently made tire purchases in six pivotal markets, collectively accounting for 70% of the European tire industry's volume (France, Germany, Italy, Spain, Poland, and the UK.)} 

_{(2) Goodyear internal evaluation based on econometric model across 24 countries in Europe: Austria, Baltics, Benelux, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, UK.}

_{(3)  % soft coverage Goodyear internal estimation 2022 sku count in 2023; prepared in May 2023, OED included.}