ANUBHUTI SINGH P43071 SDM ECO7 CASE SUBMISSION

In this case, Jonnerson of Avellin faces a critical decision regarding the distribution strategy for Eco7, a
new environmentally friendly motor oil. The two primary distribution channel options are as follows:
1. Exclusive Distribution through Independent DIFM Customer Base and Avellin Auto Stores:
Target Audience: This strategy would focus on independent Do-It-For-Me (DIFM) customers, including
repair shops, fast lube, and Avellin Auto stores.
Benefits: By offering Eco7 exclusively to this channel, Avellin aims to build strong relationships with
DIFM installers, gain support, and combat the encroachment of private-label motor oils promoted by critical
wholesalers.
Challenges: This approach overlooks the Do-It-Yourself (DIY) segment, potentially limiting initial
exposure and sales.
2. Distribution to Avellin Auto Stores and Independent DIFM Customers in the Aventage Program:
Target Audience: This option specifically targets independent DIFM customers and AvellinAuto stores
that are part of the Aventage program.
Benefits: By catering to Aventage program stores, known for valuing exclusivity, Avellin seeks to ensure
more engagement and effective product rollout.
Challenges: Like the first option, it excludes the DIY segment, which may limit initial market exposure
and sales.
To make an informed decision, we see through the lens of the following marketing concepts to analyse the
two options:
Target Audience: Both options primarily focus on the DIFM segment, which is aligned with Eco7's
characteristics and potential benefits.
Market Coverage: The second option, targeting Aventage program stores, emphasises exclusivity, which
can be advantageous in brand building and quality perception.
Competition: The first option aims to counter private label encroachment by avoiding national mass
merchandisers, clubs, and significant auto parts chains.
Long-Term Strategy: The second option offers a more sustainable approach by engaging with dedicated
Aventage stores, which may yield better execution and product loyalty.
Short-Term Impact: The first option might generate higher initial sales due to its broader reach, though it
may not be sustainable in the long run.
Given these considerations, Jonnerson should choose the second option—offering Eco7 exclusively to
Avellin Auto stores and independent DIFM customers in the Aventage program. This strategy aligns with
a more sustainable, long-term focus on brand loyalty and effective execution, even though it may require
sacrificing short-term sales. However, Jonnerson should also plan to eventually expand to national account
outlets to maximise Eco7's reach while maintaining its unique value proposition.