AVELLIN CORPORATION.

Added on - 20 Sep 2019

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AVELLIN CORPORATIONCase Study
Table of Contents1.Consumer Analysis...................................................................................................................22.Evaluation of Avellin’s position...............................................................................................23.Strategic role of Eco7...............................................................................................................34.Strategy to launch eco7............................................................................................................4
1.Consumer Analysisa.Nature of purchaseThe customer segment is mainly segmented into two categories, namely, do it yourself and do itfor me. The segments are explained below:Do it yourself: The consumers mainly reside in the suburbs, so they have the knowledge andskills of their vehicles and lubricants, so they compare with DIFM segment, so they manuallyperform the replacement of lubricant with the vehicles. The seventy percent of the target marketis loyal towards the brand, and they are familiar with the brand. The replacement is done by theconsumers with the easy to reach merchandisers such as convenience stores, special stores, andothers.Do it for me: The consumer segment resides in the big cities and the consumers are older thatDIY segment. The consumers are highly educated, upper middle class, so they prefer qualifiedtechnician for the lubricant replacement automotive vehicles. So they purchase their vehicleswith the advice of professionals.b.BenefitsThe consumers consider the various benefits such as quality, quality, price and others. Thequality is the main element because the quality of motor oil directly impacts on the vehicles. Theconsumers are very sensitive, so they consider the benefits associated with the motor oil (Justeret al., 2015). The consumer's today are eco-conscious, and the product is environment-friendlywhich helps to attract a large number of consumers.
c.Risk associatedThe various risk associated with the launching of products such as meeting the expectations ofconsumers, shareholders, and others. The consumers are price sensitive so the price strategy mustbe market price penetration which helps to attract a large number of consumers.2.Evaluation of Avellin’s positionAvellin was founded in 1936 in the United States. The company has introduced its petroleumdivision in the year 1995. The company operates with the ten lubricants and plants of packagingin the United States. The company generates its profits nearly sixty-five percent from thepassenger car motor oil. Avellin is ranked third in the market of automotive lubricants in PCMOindustry, and two major competitors are Moto line and Baud. The market share of the companyis 11%.Consumer perception: The company excels at the segments of DIFM of price sensitive which isseventeen percent of the of DIFM price-focused consumers, but it receives the least position inthe DIFM segment which is sensitive to the quality. It shows that the consumer perceptiontowards the product is that they are easily affordable, but the quality of the product is lost due towhich the company lose its market share over the time. The consumers who are price sensitiveare only purchased their products due to a low price of the product as compared to othercompanies.Distribution strategy:The Company is having successful distribution strategy in the segment ofDIFM because the company gives priority to the distribution of products and services. However,the promotional strategy in the DIY segment must be done in order to promote the product andservices because it is another reason of market share loss over the time.
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