Eco7: Launching a New Motor Oil Harvard Case Solution & Analysis

Introduction

Avellin was founded in the year 1936 in the United States. In the year 1995, the company introduced its petroleum division. The company focused on the industrial materials, adhesive technologies and the Automotive where the company decided to sell lubricants and related auto care products to rather commercialize the consumer market.

The company generates 40% of its revenues from the automotive division. In the year 2014, the company has been operating with ten lubricants and packaging plants within the country. Avellin also has its own fast-lube chain. The company accumulates a profit or revenue of approximately 65% from the passenger car motor oil.

The company has been quite successful in presenting itself as one of the major players in the market where Avellin is ranked third in the automotive lubricant market behind the major rivals Baud and Moto line. The industry comprises of two types of customers; the do-it-yourself (DIY) and do-it-for-me (DIFM).

Segmentation and Positioning

Value analysis and creation

The value analysis and creation with the launch of Eco7, the company will be rather launching a new product that shall serve the high end market. Since the company has been one of the major players in the market, therefore, by offering a product for the high end DIFM market the company would be able to reap in reasonable value for money and it would also serve the company with the advantage of creating value for money.

Along with this, the product is a user friendly product that not only offers better performance for the cars, but it also has the element of being sustainable which indicates that the decision taken by the management of the company to launch Eco7 is a rather reasonable one.

Value Proposition and Positioning Statement

With the launch of Eco7, the positioning statement that should be used by the company in order to increase the customer base and to place the product in the right market, the company needs to have a positioning statement that is well aligned with the customers and the value it actually offers to the customers. The product should be positioned in the market where it can focus on the high income customers willing to pay extra for quality.

The value proposition for Eco7 has been the element of being an eco-friendly product that is well suited for the enhancement of product performance and it shall also look after the needs and wants of the environment. Moreover, being a part of the competitive market, Eco7 would be offering value for money to the customers with the recycle oil.

Marketing Strategy

Target Market:

As the case states, the automotive lubricant market of the United States consists of two types of customers; one is the do it yourself (DIY) and the do it for me (DIFM). Avellin has been one of the major players that have looked to present itself as a player for the DIFM market. Since the company has launched a new product in the market which is rather environment friendly, therefore it has to be placed in the market where it can gauge in maximum revenues and profits.

Avellin has launched Eco7, which is recycled motor oil that offers environmental friendly features and it is a sustainable product. Along with this, it also offers better performance for the cars. The major focus that has been decided to achieve by the company with the launch of Eco7 is to make it a premium product for the company where it serves the multipurpose with increase in drive performance and environment friendly features simultaneously.

Eco7 Launching a New Motor Oil Case Solution

The target market that needs to be focused by the company with the launch of Eco7 should be the DIFM market. The reason is simple, this is the market which is not price conscious, and they believe in quality and look for better products. Therefore, while presenting itself in the market, the target market for Eco7 should be DIFM. This shall help the company to reach out the potential target market.

Marketing Mix

Product Strategy:

The product that has been offered by Avellin in the automotive lubricant market is the newly launched eco-friendly Eco7 that offers high performance and also has the ability to emit limited radiations that are harmful for the environment. The company has been offering most of its products for the DIFM market where Avellin has been offering fast-lube Eco7 to the market..................

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