Presented By :-

Eco7: Launching of new motor oil Sagarika Biswal

Nikita Bhowmik
Gunjan Chowdhury
George Jacob
Bishal Gupta
Sarath Chandra

Submitted to: Prof

Sakthivel
 PCMO as apex seller for Avellin
Identification of no great products
INTRODUCTIO
N Only Avellin as competitors
Demand for such great products are on surge
 Founded in USA in year 1936 as oil refiner
Diversified as progressed with time

About the 60% of revenue and 40% of profits came from

automotive division
company PCMO accounted for 65% of revenue and giving 20%
GP
 IMPORTANCE OF MOTOR OIL

Acts a a vital part of motor cars engine, lubricate the

Market for engine chambers

Passenger $ 10.5 billion market in USA

Derived demand of automobile industry
Car Motor Annual growth of 2% for PCMO market
Oil Boosts performance of car
 CONSUMER of PCMO

MOTOR OIL SEGMENT

Market for
Passenger
Car Motor DIY
Do-It-
DIFM
Do-It-For-
Oil yourself Myself
 Change their own motor oil
D-I-Y Targeted to rural areas
Segment Mass merchandising of lubricants bottles
(do-it- Cost and price conscious segment

yourself) Have better understanding Difference between motor

oil
 Mature, affluent and higher income segment
DIFY Urban and big metropolitan territory
(DO-IT-FOR- Drive High end cars and foreign cars
MYSELF) Do not know anything about lubrications
 Sold products directly to large retail accounts (25% of
industry sales)
1. National tire dealer chains.
2. Mass merchandiser
Through wholesale Distributors
PCMO 1. Local fast-lubes
Distribution 2. car dealers
3. repair shops
4. speciality stores
 DIFM Consumers
Fast- Lubes
PCMO Oil change-Plus

Service Repair Shops

Provider Car dealers

Mass merchandisers & warehouse clubs
 Market leader for PCMO
Competitive Baud (23%)

Landscape Motoline (15%)

Avellin (11%)
 DIY segment
Research the characteristics

Brand Performance benefits of different types of motor oils

70% purchasing because of trust and familiarity with
Loyalty the brand.
Differed DIFM segment
Segment Convenience of the installers location
Speed of service.
 Three key customer type for revenue generation:
Avellin Independent DIFM (68% of its sale)
Distribution National Retailers (9% of Avellins PCMO Sales)
Channel AvellinAuto (7% of PCMO Sales)
Strategy
 Only 3% sale of hybrid or electric expensive vehicles.
(infrequent purchase)
2011- SevoGreen becoame first manufacturer for
Eco7 recycled oil

Launch SevoGreen : cost $7.50 (expensive), recycled and

reuse.
PCMO (GROWTH): right product, marketed in right
way and right price.
Eco7 Test Two years of research and development.
Made of 65% of recycled oil, use 45% less energy to
Marketing manufacture.
 Started at $6.75- expensive (3.5 sales/day) proper-
pitch
$ 5.25- squeezing margin, devalue innovation,
demotivating to market as premium but easier to sell.
Eco7 Test (4.5 sales/day)
At Avellin store: $6.75- 5 sales/day, $5.25- 6
Marketing sales/day
Right Incentives Support from wholesale
distribution, DIFM installer
Conventional oil Eco7
 2000 2012
Fast lube 36% 32%
Oil change-plus 10% 12%
Car dealer 25% 29%
Mass 6% 10%

DIFM merchandisers and

club
purchases Repair shop 11% 9%

by channel Others 12% 8%

 2000 2012
Private label sales 18% 32%
Branded sales 82% 68%
BRAND SHARE

Share of Baud
Motoline
16%
13%
23%
15%
private Avellin 14% 11%
label and by Texoil 9% 9%

brand Kemia
Sevoline
7%
5%
8%
8%
Others 36% 26%
 Personal sources
What information 8%
source will be Public Sources
most influential in 18%
your decision to Analysis or scientific study conducted by neutral party
purchase green 7%
oil? Professional service provider
67%
 Eco7 full Eco7 Full Eco7
price price Discounted
Aventage
Eco7 only
Adoption
estimates of
market
penetration(
%) and
number of
monthly oil
changes.