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 car’s 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 installer’s location
 Speed of service.
 Three key customer type for revenue generation:
Avellin  Independent DIFM (68% of its sale)
Distribution  National Retailers (9% of Avellin’s 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.