Pennzoil-Quaker State Essay

387 Words2 Pages
Case Write-Up The problem of Pennzoil-Quaker State Canada (PQS) is that the Canadian consumption of motor oil has decreased since 1999. In addition, the industry growth was estimated to fall within next three years. Car owners were not willing to follow the suggestion of their dealer or repairman to change their motor oil three times per year. The majority of car users believed that they are able to extend the usage time of motor oil due to the improving technology of the car engines and the quality of motor oil. In short, the biggest problem of PQS is how to increase customer retention and to secure their loyalty, moreover alter their motor oil change frequency. Four solutions available are listed below: 1. One-to-One program 2. Improve Roadside Assistance and Engine Warranty 3. Discontinue Roadside Assistance and Engine Warranty 4. Do nothing If I were Reed, I would execute the One-to-One program as the marketing strategy of PQS because this program contains two promotional tools that can help PQS to reach marketing objectives which are continuity programs and coupons. The One-to-One program is type of continuity program. PQS may increase customer retention by launching the reminder card involved in the One-to-One program. According to our textbook, “continuity program can establish brand loyalty among customers and help companies to build databases to learn which individuals are their best customers”. Through the One-to-One program, customer retention and loyalty are likely to increase by providing reminder cards to customer. It reminds them to change the motor oil, check engine condition or even do further purchasing afterwards. While the One-to-One program also gives rebate coupons to vehicle owners, it might be very effective to switchers due to their purchasing characteristics. In the text book, it mentioned “switchers are

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