Originally Posted By: CapriRacer
I have always puzzled over the use of private brands. It would appear to be counter productive for the tire manufacturer.
I can understand a small tire dealer trying to compete with a WalMart or a large chain. Those large buyers can get significant discounts because of the volume. So I can understand why a dealer group might want its own brand - sold strictly on price.
But I don't understand why a tire manufacturer would encourage this - or why this even works.
Probably a combination of marketing and history.
Marketing: The company can sell Cooper tires to retailer A, Mastercraft tires to retailer B, and Starfire tires to retailer C... and all three retailers can be in the same town, yet they're not in direct competition with each other... as they would be if all three both sold Cooper branded tires.
Also, "positioning". Michelin is a good example. Uniroyal on the low end, BFG in the middle, and Michelin on the top end. This way, Michelin can sell a cheaper/lower technology tire (as a Uniroyal), yet not risk tarnishing the established Michelin brand.
Cooper is doing this as well. They're using Mastercraft as their middle tier tires, and Starfire on the low end.
History: Somewhere along the line, they acquired/bought the Starfire brand, and then they created(?) the Mastercraft brand (apparently in homage to the company being known as the Master Tire & Rubber Company prior to being renamed Cooper).
As with Olds and Mercury, it would be a fairly large effort just to kill off one of these brands.