Pennzoil

Car owners are not changing their oil at the recommended every four months “due to technological improvements in the modern engine and the oil itself (Ivey p2).” When DIFM car owners do take their cars in, they leave the decision of the brand of oil up to the installers. Most installers carry one brand of oil and “the vast majority of DIFM consumers trusted their installer to make the brand selection decision on their behalf (Ivey p6).” This indifference to brand made switching costs for the installers low.

The issue is that consumers are not changing their motor oil as often as PQS wants and when they do, the installers choose which brand of oil goes into the consumer’s car. QMS had come up with a promotional campaign “which was designed to persuade consumers to have their vehicle’s oil changes with a PQS product every four months (Ivey p1).” This program, called “One-to-one” has the objective of creating “closer relationships among the consumer, the installer and PQS (Ivey p11)”; PQS wanted to “make consumers care about the brand of motor oil they selected to put in their vehicles. (Ivey p12)” In order to achieve this, the program had their installers POS systems execute the roadside assistance, engine warranty and reminder card programs. By using this program, PQS would essentially be building relationships with the car owner on three different areas of need. This would hopefully build brand awareness and the car owners would then choose their brand of motor oil every time.

The One-to-one program is essentially a large continuity program through their roadside assistance and engine warranty programs. Switchers are likely to be attracted to this program because it “provides a point of differentiation to consumers, which often may succeed in crating brand loyalty to a particular product (Schultz p1014 Kindle).” Through their warranty program, which they are now automatically enrolled in through the one-on-one program, switchers would receive coupons for oil...