Penzoil-Quarter State Canada: the One-to-One Decision
Strategic Problem Statement
Following the 240-day field trial of the One-to-One program, the director Mark Reed is faced with the question if they should or should not implement the One-to-One program.
Tactical Problem Statement
If move to implementation, how to demonstrate the benefits and the earlier success to the new quick lubes to participate.
Issues
Only one test site has been used to gather data
Service fee that quick lubes have to pay
The minimum number of retailers participating in the program to justify the set-up costs
To increase the frequency of oil changes
To improve the retention of its customer and keep brand loyalty
Need to sell the program
Alternatives
Extend the field trial to more locations with different scenarios for the three key dimensions: average ticket, daily vehicle count and mix of synthetics. By doing this they would have the impact for the retailers with lower average ticket and in the opposite the ones that already have a higher ticket value, if they could expect also a significant increase.
Recommendations
PENZOIL-QUAKER STATE CANADA
The director of Lubricants business for Pennzoil-Quaker State Canada is faced with a significant challenge - overcoming the apathy that many consumers had about changing their motor oil. Increasing the frequency of oil changes and improving retention of its customers was critical for the financial success of the company. In response to this challenge, the director had to make a recommendation on adoption and implementation of a major new promotional program. The program, called One-to-One, was designed to create closer relationships among consumers, retailers and Pennzoil-Quaker State.
There are a number of important issues involved within the motor oil market. One of major concern to PQS is the overly apathetic and ignorant mindset of the average consumer regarding frequency of changing motor oil. This is largely due to consumer perceptions
Following the 240-day field trial of the One-to-One program, the director Mark Reed is faced with the question if they should or should not implement the One-to-One program.
Tactical Problem Statement
If move to implementation, how to demonstrate the benefits and the earlier success to the new quick lubes to participate.
Issues
Only one test site has been used to gather data
Service fee that quick lubes have to pay
The minimum number of retailers participating in the program to justify the set-up costs
To increase the frequency of oil changes
To improve the retention of its customer and keep brand loyalty
Need to sell the program
Alternatives
Extend the field trial to more locations with different scenarios for the three key dimensions: average ticket, daily vehicle count and mix of synthetics. By doing this they would have the impact for the retailers with lower average ticket and in the opposite the ones that already have a higher ticket value, if they could expect also a significant increase.
Recommendations
PENZOIL-QUAKER STATE CANADA
The director of Lubricants business for Pennzoil-Quaker State Canada is faced with a significant challenge - overcoming the apathy that many consumers had about changing their motor oil. Increasing the frequency of oil changes and improving retention of its customers was critical for the financial success of the company. In response to this challenge, the director had to make a recommendation on adoption and implementation of a major new promotional program. The program, called One-to-One, was designed to create closer relationships among consumers, retailers and Pennzoil-Quaker State.
There are a number of important issues involved within the motor oil market. One of major concern to PQS is the overly apathetic and ignorant mindset of the average consumer regarding frequency of changing motor oil. This is largely due to consumer perceptions