Hunter Business Group

Hunter Business Group: TeamTBA

Sometimes you have a secondary product line that is moving in a direction different from that of the firm . . . You think that everything is OK, that it is just an incremental business, but in fact, it becomes more like an

anchor. . . .

--Vic Hunter, Chairman and CEO, Hunter Business Group

Such was the dilemma that Star Oil faced during the summer of 1992. Its tire, battery, and accessory (TBA) business, the “ugly stepchild” of its gasoline station services division was now unprofitable and consuming valuable field resources. Its downward trend in profitability had led to a growing sentiment within the firm toward abandoning Star’s branded TBA business. Yet, a recent survey of the firm’s service stations produced a surprise finding. Customers who had their cars serviced at the 2,200 U.S. gasoline service stations1 selling Star-branded TBA products bought four times more gasoline than those who bought only gasoline there. This suggested that Star’s branded TBA products played a strategic role in boosting Star’s gasoline sales. The decision to exit the TBA business, therefore, no longer appeared easy. In the face of increasing competition, Star could not afford an erosion of customer loyalty that might damage its well-known brand. However, the unprofitable nature of the business was unacceptable to the firm’s top management. Star executives sought a way to retain the branded TBA business and restore profitability. At this point Star turned to the Hunter Business Group (HBG) for assistance.

Hunter Business Group

The Hunter Business Group (HBG) specialized in reorganizing the sales and marketing efforts of large and small firms, in industries ranging from computers and biomedical supplies to office supplies and auto parts. Vic Hunter (an alumnus of the Harvard Business School), the company’s President and CEO, had founded HBG in 1981 after amassing a wealth of direct marketing and sales management experience. Hunter believed that...