TIRES

Group Members:

Nathan Hensyel

Brandon Evans

Aries Gomez

Breona Johnson

Luis Ramirez

Promotion

Tire Commercials 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.

Purpose

Our Target audience is College students

To collect tire prices from seven different stores and compare price variations

To explain why there was a variation in price?

We had to choose five of the same tire brands for each store

Our Control and Variables 2000-2009 Toyota Camry was the car we used to find

the tire prices

We asked for prices on all season tires

The stores we chose were:Les SchwabCostcoWal-MartSearsDiscount TiresNorthwest Tire & AutoTire Rack

Les Schwab Location:

#7 Spokane St.

Cheney, WA 99004 Tire Prices and Brands:

95H Formoza FD-1 - $62.96ea. 95H SS-657 - $81.52ea. 94H Zexius XI-427 - $93.95ea. 92T Eclipse - $112.55ea. 94T Tourevo - $129.76ea.

Warranty: Extended-Life Free Road-Hazard Protection Free Flat Repair Free Tire Rotation Free Tire Rebalance Free Tire Inspection Free Air Check Snow Tire Installation and Removal

•Installation: • Wheel Spin Balance - $12.25• Tubeless Valve System - $4.25

Les Schwab S.W.O.T. Strengths:

Private Manufactured TiresOver 400 Store Locations

Weaknesses:High Priced LaborHours of Operation

Opportunities:Small Town LocationsFree-Beef

Threats:Stores with Cheaper LaborCompetitive Prices

Costco Location:

7619 N Division St.

Spokane WA

Tire Prices and Brands:Michelin: $134.99ea.BF Goodrich: $90.99ea

Warranty: 60,000 miles

• Installation: $14.00 per tire• Care Warranty: Lifetime tire rotation, 5 year limited warranty.

Costco S.W.O.T Strengths:

Tires could be ordered online

and shipped to warehouses for

free Costco Advantage Plan Road Hazard Warranty

Weaknesses: Carries Only 2 Brands of Tires Offers are for members only

Opportunities: Carry More Brands of Tires

Threats: Discount Tire Stores Other Online Stores

Wal-Mart Location:

15727 E Broadway Ave, Spokane Valley

Tire Prices and BrandsGoodyear: $145ea.Michelin: $155ea.BF Goodrich: $150ea.Bridgestone: $127.99ea.

Warranty: 60,000miles

• Installation: $Free Included in price of tire.

Wal-Mart S.W.O.T Strengths:

Lots of locationsVariety of brands

Weaknesses:Bad customer serviceLow end brands

Opportunities:Television promoting for tiresAdvertise free installation

Threats:Cheaper place like Sears

or Discount TireBetter service from Les Schwab

or Smaller tire store

New Logo

Old Logo

Sears Location:

4700 N Division St.

Spokane WA

Tires and Brands:Firestone: $72.96ea.Bridgestone: $84.94ea.Goodyear: $90.21ea.Michelin: $109.99ea. Cooper: $78.84ea.

Warranty: Price Match Plus Policy

• Installation: $11 per tire

Sears S.W.O.T Strengths:

• Well known brand• Able to use Sears Card

Weaknesses:• Not known for selling tires

Opportunities:• Customers at Sears that did not

come to shop for tires Threats:

• Online stores like Tire Rack

Discount Tire Location:

9519 E Sprague Ave

Spokane Valley

Tires and Brands: Michelin: $108ea. Bridgestone: $100ea. Goodyear: $106ea. BF Goodrich: $74ea.

Warranty: No warranty• Installation: $14 per tire• Care Warranty: Free lifetime rotations.

Discount Tire S.W.O.T

Strengths:• Location- Right off of Division in

Spokane Weaknesses:

• Doesn’t appeal to customers who

are looking for a higher quality product Opportunities:

• Mail Coupons, and Incentives. Threats:

• Online tire stores like Tire Rack• Stores like Les Schwab or Sears

that appeal to customers looking for quality

Northwest Tire & Auto Location:

8027 N Division St, Spokane

Tires and Brands:Firestone: $100ea.Bridgestone: $77.50ea.Cooper: $95.74ea.BF Goodrich: $100ea

Warranty: 70,000 miles

• Installation: $Free, included when you purchase tires • Free brake rotation every 6,000 miles

Northwest Tire and Auto S.W.O.T

Strengths:• Location- Right off of Division in

Spokane Second location on N Pine Road

Weaknesses:• Very little advertising and

promotion. Located right next to a larger Les

Schwab

Opportunities:• More advertising• People who are fed up with poor

service at larger chain auto stores.

Threats:• Online tire stores like Tire Rack• The large amount of competing tire

stores in the immediate area.

The Tire Rack Location: Online

Tires and Brands: Firestone: $74ea. Michelin: $108ea. Bridgestone: $83ea. Goodyear: $72ea. BF Goodrich: $69ea.

Partnering Store: Spokane Tire Factory

Warranty: 4-6years.

• Shipping: $54• Installation: $15-25

The Tire Rack S.W.O.T Strengths:

Can shop from homeEasy to use website

Weaknesses:Lack of personal customer

serviceYou have to wait to get the

tires Opportunities:

Have more partner stores Threats:

Stores like Discount Tire or Wal-Mart.

Market Analysis

Les

Schwab

Costc

o

Wal-

Mar

t

Sears

Discou

nt T

ire

North

west T

ire

Tire R

ack

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

Michelin Bf GoodrichGoodyear BridgestoneCooper Firestone

Stores

PRICE

Interpretation of Data Cheapest store to go to for Michelin tires or the

equivalent would be Les Schwab. Cheapest store to go to for BF Goodrich would

be Tire Rack. Cheapest store to go to for Goodyear tires would

be Tire Rack. Cheapest store to go to for Bridgestone tires

would be Northwest Tire. Cheapest store to go to for Cooper tires would

be Sears. Cheapest store to go to for Firestone tires would

be Sears.

Interview with Les Schwab Manager

What do you think Les Schwab’s greatest threats are? Biggest threat is not explaining services and warranties properly, which leads

customers to believe that Les Schwab is higher priced than their competitors. Why isn’t the majority of your competition as successful as Les Schwab?

Les Schwab has over 400 stores so convenience is a huge leg-up for business. Warranty Outstanding Service

What do you think Les Schwab’s greatest opportunities are? Free-Beef Promotion

Does Les Schwab have their own private manufacture? Exclusive Tires to Les Schwab Good Relationship with certain manufactures such as Toyo Tires

Because Les Schwab manufactures tires, is that the reason why you are able to keep your prices lower than your competitors? Due to Exclusivity Customer Service is their #1 goal and it’s what keeps customers coming back

Manager Jared’s Recommendation – “What tire

is best in your opinion?”

92T Eclipse is the best purchase considering price-to-quality.

1. All Seasons Black wall

2. 70,000 mile warranty

3. Exclusive tire so no other tire company has it in stock except for Les Schwab

Conclusion

Although we had trouble finding the same five tires at each store we were able to make conclusions from each store.

Each store has their top selling tire, and they pay to use the top brands.

Customer Service and Warranty to some people means more than the price of the tire.