Eco7: Launching a New Motor Oil Questions for Analysis Total Points: 100 [20 points] 1. Characterize and assess the behavior of consumers in their purchase of motor oil i.e. assess, among any other considerations, the nature of the purchase, the benefits and risks associated with the purchase of the product, the price sensitivity, where it is bought, etc. [15 points] 2. Assess Avellin’s position in the passenger car motor oil (PCMO) market, including consumer perceptions and distribution strategy. Why has it lost market share over time? [15 points] 3. What is the strategic role of Eco7 in Avellin’s product portfolio? How should Avellin weigh consumer interest in, and willingness to pay for green motor oil? Is it the right product for the firm at the right time? Explain. [50 points] 4. Develop a suitable launch strategy for Eco7? That is, whom should it target and how should it position the product? Propose a marketing mix (product, price, place, and promotion) to implement your proposed targeting and positioning decisions. Justify fully your recommendations. Note: Your analysis should be based on both qualitative and quantitative considerations, given the data in the case. In order to assist you with the quantitative analysis, you may download from the case download site an Excel spreadsheet that contain the data in some of the case exhibits, as well as partially filled-in tables that should provide some guidance to do the quantitative analysis.
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