DISTRIBUTION DESIGN AND GOLOBALIZATION

ASSIGNMENT: 3

ID FULL NAME
70075395 HAFIZ ASIM AHMED

SUBMITTED TO:

SIR ARSLAN HAIDER

DATE OF SUBMISSION:
8-4-2020

SESSION OF SUBMISSION:
SPRING 2020
1. How do consumers purchase Motor Oil?
Ans: The consumer market is divided in two segments, DIY (do-it-yourself) and DIFM
(do-it-for-me). DIY users are those who change their motor oil and purchase from the
ways and means they find appropriate. They are usually from rural areas or small towns.
In contrast, DIFM consists of those consumers who get services from service providers.
They usually rely on professionals from whom they are getting car maintenance services
for selection of oil and other vehicle-related services.

2. Assess Avellin’s position in the PCMO Industry, including consumer perception and
Avellin’s Distribution Strategy?
Ans; Overall the 15% consumers preferred to purchase the brands of the Avellin. Avellin
held the strongest position among DIFM customers, and they were quality focused. Other
than quality they were offering best prices among all. Customer prefers Avellin's DIFM
oil products preferably.
The primary focus of Avellin was DIFM channel because the room for transformation
and growth was more and they have recognized that fact. The service providers and fast
loop stores can quickly switch among DIFM products. They actively participated in
promotional campaigns and programs to wholesale distributors.

The major customers of Avellino come from:

 Independent DIFM
 National retailers
 Avellin auto.

These are free customers’ orders that are handled by wholesalers and distributors
network, as they were also keen to gain customers’ loyalty and for that purpose they
started various programs having numerous features to provide comfort to consumers
sales managers were there to develop growth and development strategy.
3. What is the strategic role of ECO 7? How should Avellin weigh consumer interest
in, and willingness to pay for, a green motor oil? is it the right product at the right
time?
Ans: Eco7 has a very important and strategic role on the portfolio of the Avellin product
line, because eco7 is the only green product. It is environmental friendly that has been
produced by recycling the used oil through effective processes. Because, used oil is
harmful to the environment.
During the market research, about 31% consumer from the DIY segment were interested
into green motor oil, however the 55% from the DIFM segment consumers were
interested into green motor oil. On other hand 69% and 45% from the both groups were
unsure or uninterested about the green motor oil respectively.
The green product line in PCMO market is on its infant days, whereas the market already
has the one other green product called Sevo Green from a competitor. But if we compare
eco7 with sevo green, then it could be concluded that eco7 has competitive advantage
over the sevo green in terms of consistence performance with quality as well.
The company to maintain its best pricing strategy for its newly launched product which
would help the company to maintain its sustainable position in the market. The situation
in which the company finds itself is a consequence of using a marketing mix
methodology instead of concentrating on a relationship building strategy. However, the
company has faced several challenges in the market in order to successfully launch the
new eco7 motor oil. In PCMO market, the consumers are very price sensitive.

4. How should ECO 7 be distributed? What are your recommendations regarding

exclusivity for Aventage stores?
Ans: The Eco7 is second green product in the market, and it has advantage over the other
product in the market. On other hand the sevo green’s performance is on par with other
conventional oils. However the eco7 is more effective and competent as compared to the
conventional oil.
The eco7 has preferred characteristic that market is willing to adopt, but the pricing
strategy would be more important, along with the distribution, and service channels as
well.
 Eco7 Increasing costs component for working in developed market to gain share.
 Eco7 can leverage either to consolidate existing market position or use them for
further expansion.
 Eco7 can use developments in artificial intelligence to better predict consumer
demand, cater to niche segments, and make better recommendation engines.