Case Solution & Analysis for Eco7: Launching a New Motor Oil by John A. Quelch, Sunru Yong.
Complete Case details are given below :
Case Name : Eco7: Launching a New Motor Oil
Authors : John A. Quelch, Sunru Yong
Source : HBS Brief Cases
Case ID : 916507
Discipline : Marketing
Case Length : 11 pages
Plagiarism : NO (100% Original work)
Description for case is given below :
Aaron Jonnerson, vice president of marketing at the automotive division of Avellin, must make marketing mix decisions for the launch of Eco7, a new environmentally-friendly motor oil. The company’s performance has been mediocre, shareholder pressure is increasing, and expectations are high for Eco7. However, Jonnerson faces significant challenges in ensuring a successful launch. The market for passenger car motor oil (PCMO) is mature and consumers are price-sensitive. Furthermore, the independent oil change outlets that are Avellin’s core customers have declined relative to other channels. Jonnerson must design the best pricing strategy to ensure a successful launch. The Eco7 case asks students to examine consumer behavior and channel conflict and factor them into a product launch. The launch comes at a time when the company may need to adapt to changes in a market that is increasingly commoditized and in which the relative importance of different distribution channels is changing. Students are asked to make recommendations on pricing and distribution and to consider which trade-offs the company should make.
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