Launching A New Motor Oil Harvard Case Solution & Analysis

The prices of Eco7 are little higher at around 6$ which is still a little lower than its synthetic oil products. In a normal usage of thecar, the owners are advised to change the car oil after every 3000 miles but with conventional oil, drivers could extend the time limit to 5000 miles.

Avellin Strategies:

Since its establishment in 1980, the major target of Avellinhas been DIFM channel. And by entertaining wholesalers and DIFM customers with quality services and cheaper rates, Avellin has successfully earned trust and of many of its loyal customers.However, after operating for more than 30 years, Avellin has achieved many of its targets and is now receiving the main revenues from three specific categories of customers.

Independent DIFM: In 2013 Avellin was popular among DIFM customers. Avellin’s launch of new campaigh “The Aventage Program” in which customer feedbackswere recorded through sales manager, wholesalers was educated to develop better convincing techniques and factors like presentation andproduct impression were concentrated. All these caused Avellin to lead among the fas-lube channels and repair shops in 2013.

ECO7 LAUNCHING A NEW MOTOR OIL Harvard Case Solution & Analysis

National Retailers: Contributing 9% sales to Avellin, national retailers and wholesalers were the bulk quantity purchases of Avellin, the key point here was that these channels were focused on attracting DIY customer, because of their loyalty factor, it was difficult to impress DIY customers and was very likely to keep the customer trust for a long time once earned.

AvellinAuto: To keep a close relation with its customers, Avellin started following its rivals’ footsteps and open about 436 fast-lube channels by 2014. But unlike other competitors who were focused on attracting more customers, Avellin was more worried about maintaining the intact relation with its existing customer. Therefore Avellin chose the locations which could best provide services to its existing customers.

Avellin through its promising market history and satisfactory product quality has earned trust consumers trust and is earning returns through revisits of loyal customers. However with therecent decline, and slow growth anticipations from analysts, Avellin is considering to launch new product “Eco7” and to adopt new strategies to attract new distributors and maintain the relation with the current consumers.

The Market share:

The reason for declining-trend of Avellins market share is probably due to the low number of club-store stations (465). This gave an advantage to Avellin’s rivals in the market, who receives much more returns than Avellin from their high number of service stations and therefore have more customer market. There are more than one competitors in the market and most of them have government affiliation, this is probably the reasons why they have 5 times as many service stations as Avellin. And the

The launch of Eco7:

By analyzing themarket trend, and reviewing market research, Jonnersenobserved that the increasing demand of eco-friendly has developed a new market for environmentally friendly products. And the green loving customers are willing to pay extra for eco-friendly products. Though the current market share of these customers is just 3% in2013, lack of variety of eco-friendly products’ existence creates an opportunity for PCMO manufactur..................

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