Penzoil Quaker State
Business and Management
Submitted By Orso2010
The Pennzoil Products Company and Quaker state corporation joined on December 1998 to become one of the leading worldwide automotive consumer product companies. The company was marketing more than 1300 products in more than 90 countries. Quaker State Company before its merger with Pennzoil was operating since 1932 in Canadian market and was successful in capturing the market share. Pennzoil entered the Canadian market in 1989 which was quite late as compared to Quaker’s inception. With its marketing strategies Pennzoil was able to capture the lube market and reached on number fourth position in market share. After their merger a subsidiary of the PQS named Jiffy Lube became the world’s largest quick lube operator and franchisor. Through its marketing campaign PQS was able to penetrate in the market and gain market share even though big competitors like Petro Canada, Imperial Oil, Moto master and Havoline were in the same business.
After reviewing the case, it is observed that the major challenge which the company needs to address is whether Pennzoil-Quaker State (PQS) implement One to One Promotional program introduced by Quality Marketing Solutions (QMS) or not.
Canadian car market was involved in the dilemma that as the technology has advanced there would be less frequent visit for Lube, Oil and filter (LOF) change. The requirement for the LOF change was three times a year recommended by the manufacturers but in reality the vehicle owners were stretching the time period to 2.2 times per year. With the advancement in technology the oil category was divided into three different segments including base oil, semi synthetic and full synthetic creating more complexity and Stock keeping units (SKUs). These lubricants were distributed to retailers and from them to final consumers. The LOF market was further divided into two...