In March 2014, Aaron Jonnerson the vice president of Aveline Corporation was in plans of

launching a new product that is an eco- friendly motor oil, Eco7. An environment friendly motor
oil that has been manufactured from recycled oils, the product is made up of 65% recycled oil
and using 45% less energy, still provides premium quality with a premium price tag, appealing
consumer having interest in green automotive technology. Founded in the year 1936 in the US
as an oil refiner, Aveline has come a long way to become the third biggest motor oil brand in
the country. The PCMO (Passenger Car Motor Oil) market in United States is mainly divided in
two segments- DIY (Do it Yourself) and DIFM (Do it for Me). While DIY segment has consumers
who are more cost focus and research oriented, the DIFM segment consumers seek
professional assistance in choosing an oil brand. With other brands like Baud and Motoline, the
market leaders, primarily focusing on fast- lube chains and DIFM (Do it for Me) consumers, the
sole competitor for Eco 7 in green automotive segment is Sevoline with SevoGreen . Eco7
maintaining cost and performance benefits over its competitor, the main concern for Aveline is
the shift from DIY to DIFM emphasizing the lower costs and ease that it offers. As a result of
test marketing, Jonnerson decided two prices for Eco7, one at $5.25 and the other at $6.75 per
quart. Also, there were two positioning strategy, either to offer it in independent DIFM
customer base and Aveline Auto stores or the customers in Aventage program. The case
focuses on dilemma face by Jonnerson to select the right pricing and positioning strategy that
could help Eco7 to be a successful launch.