Case | HBS Case Collection | September 2015

Eco7: Launching a New Motor Oil

by John Quelch and Sunru Yong

Abstract

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.

Keywords: Distribution Channels; Environmental Sustainability; Product Launch; Transportation; Energy Sources; Auto Industry;

Language: English Format: Print 11 pages EducatorsPurchase

Citation:

Quelch, John, and Sunru Yong. "Eco7: Launching a New Motor Oil." Harvard Business School Brief Case 916-507, September 2015.

About the Author

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John A. Quelch
Charles Edward Wilson Professor of Business Administration, Emeritus

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