Acorn Automotive Lubricants_Marketing Communications Plan

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Abridged copy of Marketing Communications plan for Acorn automotive lubes. To get your downloadable full version (48 slides), go to http://flevy.com/browse/business-document/acorn-automotive-lubricants-marketing-communications-plan-1403

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Acorn Automotive Lubricants_Marketing Communications Plan

  1. 1. Acorn Automotive Lubricants: Marketing Communications Plan Dele Ogundahunsi (+2348164969170)
  2. 2. [background] 2
  3. 3. [background 1] The Brand: an overview 3 C Parent brand remains a notable player in the independent sub-sector of the Nigerian oil and Gas industry. Presence in Sierra Leone, Benin & Geneva A Dip stick survey: lack of awareness of the Acorn brand among auto technicians, mechanics, auto spare part traders & commercial drivers R 5 major strategic business units: the trading, retail, aviation, industrial and Storage/ Terminal Division. N Sole – franchisee of Q8 brand of lubricants, for years, based on a technical agreement with KPIL O First indigenous independent marketer
  4. 4. [background 2] Market Overview ▪ Automotive Lubricant market largely controlled by the major oil marketers, for a long time. where lubricants were sold, were mostly controlled by the major oil marketers. Influx of imported brands and brands owned by independent marketers in recent times. 4 Key Brands of Automotive Lubricants in the Nigerian Market Manufacturer/Marketer Brands The Majors Mobil Mobil 1 & Mobil Super Extensions Forte Oil Super V & Visco Static Total Nigeria Plc Total Quartz extensions & Total Classic Conoil Quatro, Golden Super, Okada Golden Super MRS Premier & Stallion The Independents Acorn Petroleum Plc Acorn & its line extensions Honeywell Oil & Gas Limited HD (SAE 40) & Multi (20W50) LUBCON LUBCON extensions: Adrenalin, Performa, Motorlube, 2T Super, Super XV, Dieselube, Pentagon DTX, etc ASCON Oil Company Limited Motion Plus extensions & Transgard Gear Oil Techno Oil Techno extensions, etc A-Z Petroleum Products Limited A-Z extensions Eternal Oil & Gas Plc Eterna series, Spheerol & Castrol (imported) DOZZY Powerflo extensions Ammasco International Limited VITAL, ENGEN, Rondo, Oris, Oria, ATF Dexron, Amalube & Amagear Tonimas Nigeria Limited ENEZ, Kaper, Primus Super engine oils & Noble brake fluid
  5. 5. 41% 26% 18% 10% 5% Consumption Levels Commercial Transportation Private Automobiles Power Generation Construction & Mining Agriculture Source: adapted from Imran Mufti, the ICIS Middle East Base Oils and Lubricants Conference Oct. 12, 2010 [background 3] Market Overview [cont’d]
  6. 6. [background 6] Market Overview [cont’d] ▪ Recent market dynamics have shown that the last stages in the chain of distribution of automotive lubricants now include points of purchase (POPs at automobile spare markets, auto-shops at Motor Parks and neighborhood auto spare shops accessible by automobile mechanics and auto technicians . This innovation in the distribution chain of automotive lubricants has undermined the control of the major oil marketers over retail channels, opened Up opportunities for the entry of fake and substandard products but has also, arguably, brought lubricant products much closer to end users. The shift in the distribution paradigm has also redefined the value chain, making it easier for upstarts to successfully penetrate the market. ▪While the market continues to grow with the regular addition of new brands, it is important to also note that the scourge of fakes, adulterated and substandard motor oils has remained a malignant issue over the years, prompting industry stakeholders such as the major marketers and trade and regulatory bodies such as LUPAN, PPRA, Standards Organization of Nigeria (SON), DPR, etc to embark on various public enlightenment campaigns to discourage the sales and patronage of fake and substandard products. The growth of fakes, adulterated and substandard products have greatly eroded the margins of genuine brands and undermined consumer confidence. Again, advances in technology have enhanced ease of market entry and many upstarts will continue to join the ranks, thus making the market very competitive. However, discerning brands will be able to differentiate themselves and steer away from commoditization, through Innovation, R & D, strong technical support, easier financing terms, branding strategies and effective marketing communications., etc. 6
  7. 7. [background 6] Market Overview [cont’d] 7 Innovation in distribution chain undermines control of the major oil marketers over retail channels, yet opens Up opportunities for the entry of fake and substandard products Scourge of fakes, adulterated and substandard motor oils prompted industry stakeholders such as marketersLUPAN, PPRA, SON, DPR, etc to embark on various public enlightenment campaigns Last stages in the chain of distribution of automotive lubricants now include points of purchase POPs at automobile spare markets, auto-shops at Motor Parks and neighborhood auto spare shops. Commoditization, Innovation, R & D, strong technical support, easier financing terms, branding strategies and effective marketing communications
  8. 8. [background 7] Market Overview [cont’d] Market & Consumer Insights Across the Value Chain (Options & Opportunities) 8 Manufacturer /Marketer Distributor/Dealer/Service Station Car Owner/Driver [OPTIONAL/minimal] Auto Mechanic traditional retail value chain [TVC] Manufacturer /Marketer emerging retail value chain [EVC] Auto Mechanic Manufacturer /Marketer Auto Spare Part Shop Car Owner/Driver [OPTIONAL/minimal] Auto Mechanic potential retail value chain [PVC]
  9. 9. [background 4] Market Overview [cont’d] Market & Consumer Insights Across the Value Chain (Options & Opportunities) cont’d ▪ The Traditional Value Chain: Maintained by major oil marketers, threatened by the Emerging Value Chain. Premium customers will increase, cumulative sales may gradually dwindle as mass market patronage goes through Emerging Value Chain. ▪The Emerging Value Chain gains ascendancy, especially as mass market customers (middle class car owners and commercial transporters & their mechanics) prefer not only its VFM offerings, but also its ease of accessibility. Alternative value chain originally created by upstart brands intending to break into a monopoly market. The majors also are taking advantage of benefits of EVC. ▪The Potential Value Chain presently remains unexplored by most players, offers opportunities for discerning brands to increase market share in the long term: Partnership with and direct sales to mechanics. 9
  10. 10. [background 5] The Brief ▪Agency has been charged with the task of 1.) creating a credible positioning for the Acorn brand of lubricants and 2.) raising awareness for the brand, especially within the southwestern market in Nigeria. 10
  11. 11. [strategy] 11
  12. 12. [swot analysis] 12 S >Relatively new and able to own a single-minded, credible position in the minds of consumers. >The expanding Acorn retail presence provides immediate accessibility to end users. >Umbrella/Corporate branding enables the product to tap into the values and goodwill of the Acorn parent brand (piggybacking). >Competitive pricing strategy enhances product affordability W >New Kid On the Block: needs to be proven >Recall levels among target consumers/specifiers is low >Corporate naming may affect the brand negatively, in times of changing circumstances. O >Concerted efforts at stamping out faking and adulteration has led to growing awareness among consumers & trade. > Lubricant consumption levels in the automotive sector is on the rise. T >Scalable startup costs & technology advances ensure growing competition, as new brands continue to make incursion into the market.
  13. 13. SCENE 13 [positioning blocks] SUPPORT CORE BENEFIT Efficiency  Category: Lubricant/Engine Oil  Longer Engine Life & Cost-Saving  Product quality & Price (cost efficient & produces effective results)  The Acorn Heritage  Mechanics/Auto Technicians/Auto Spare Traders/Commercial Drivers/Car Owners  Adults 25+; Fun-loving, football fans  Not totally aware of differences in lubes & the different categories & applications of lubes  Need to get quality lube at affordable cost
  14. 14. SCENE The Acorn Lube Brand Onion [proposed] Positioning: for Car Owners, Drivers & owners of power engines concerned about engine life, Acorn is the lubricant that keeps engines going for longer, at little cost. Values: Strength, Continuous Mobility & Quality Vision: To be the 1st choice for automobiles & power engines... Personality: Reliable, Friendly & Prudent 14 [the acorn lubricant positioning structure] VALUES A belief system; a way of working and communicating PERSONALITY Informs all communications & public perception VISI0N A snapshot of the future POSITIONING A summary of the brand in relation to competition in the public mind
  15. 15. SCENE 15 [the acorn lubricant brand essence] Brand Essence Attributes Benefits Values Personality ▪Treated Engine Oil ▪ Affordable Price ▪International Quality ▪Unique Packaging ▪Acorn Heritage ▪Assurance of Quality ▪Longer Engine Life ▪Cost-Savings ▪Strength ▪Continuous Mobility ▪Quality ▪Reliable ▪Friendly ▪Prudent Pleasurable Motoring
  16. 16. SCENE [market entry & channel options for acorn lubricant] ANSOFF Matrix: Options for Acorn Lube Option 4 >New Channel-New Product: Introduce new products (along with existing ones) through innovative own-branded channels. Amplification: See Next Page Existing Products ExistingChannelsNewChannels Market Development Market Penetration Product Development New Products Diversification Option 1 >Existing Channel-Existing Products: Market existing/traditional Products to target market as stated in “positioning blocks”, using traditional channels. Option 2 >New Channel-Existing Product: Market existing products through innovative channels, with moderate changes in product & pricing structures. Option 3 >Existing Channel-New Product: Create new, innovative products/enhanced products targeted at the market 16
  17. 17. SCENE [market entry & channel options explained] ANSOFF Matrix: Options for Acorn Lube Option 4 >New Channel-New Product: Introduce new SKUs (e.g Acorn-branded brake fluids, non-Acorn branded complementary automotive products from partnering organizations ) delivered via franchised, Acorn-branded one-stop autocare shops. Recommendations: Options 1 & 2 to be upheld in the short & medium terms. Options 3 & 4 are recommended for implementation in the medium to long term. NOTE: Franchising of Acorn AutoCare Shops may be used as an innovative go-to-market strategy to break parity with competition. Market Penetration Option 1 >Existing Channel-Existing Products: Sell the usual range & grades of lubes through Acorn branded points of purchase (gas stations). Good for quick market roll-out, but limiting for growth. Option 2 >New Channel-Existing Product: Market existing products through innovative channels, such as Auto spare traders & Acorn-branded midscale (not upscale) mechanic workshops , with moderate changes in product structure (e.g bundling & pricing such as differential pricing, incentives, etc). Option 3 >Existing Channel-New Product: Create new SKUs (e.g brake fluids, hydraulic lubes, gear oils, etc) to be sold at Acorn stations & auto markets. Feasible as a long term investment for the brand. 17
  18. 18. Auto Spare parts traders, particularly those in notable cluster markets across commercial cities . The general public SCENE a.) Mechanics to commercial vehicles & mechanics to car owners in the A, B & C1-3 Socio-economic Strata b.) Fleet Managers & Transport Managers of MNCs, Blue-Chip companies & multi-branch firms c.) Car Owners in A, B, C1-3 SES 18 The Media, especially Electronic Broadcast Presenters, Editors & Senior Reporters on Automobile, Transport & Motoring beats. [target market]
  19. 19. 1 2 3 Effectively position Acorn lubricants Increase consumer awareness, recognition & recall for Acorn lubricants (while underscoring associations with the parent brand, Acorn Petroleum Plc) Encourage uptake of the Acorn brand of lubricants among auto mechanics/ technicians and auto spare part retailers. 19 [communication objectives]
  20. 20. [Desired Consumer Response] 20 Current Actions Buy brands from the majors or buy substandard products Message Acorn Lubricant is the only standard quality engine oil that is not expensive , effective & owned by a non-major Desired Belief Acorn Lube is at par with the best, yet pocket-friendly Desired Actions Buy Acorn Lube for quality & savings Current Beliefs The best quality lubes are the big brands & they are expensive Target: Mechanics, Drivers & Car Owners
  21. 21. About lubricant use, fake & substandard products , Acorn’s quality & efficiency as an automotive lubricant and its pedigree. activateengageeducate Make key target market connect emotionally with Acorn, by providing opportunities for customers to experience the brand. Inspire continuous usage and brand advocacy through partnership and incentives. [strategic approach] schematic, with tactical media support
  22. 22. Direct Marketing & Sales Promotion ▪Phase 2 >Mechanic Workshop partnerships. >POP merchandising Advertising ▪Phase 1 >Tactical Outdoor & Radio Advertising Support Public Relations ▪Phase 1 >Social Media Programme on facebook >Tactical PR Support for Sales Activation Experiential Marketing & Sponsorships ▪Phase 1 >Experiential components in Sales Activation & Roadshow [communications mix] ▪Phase 1 >Sales Activation & Roadshow ▪Phase 2 >Sponsored Football Competition for Mechanics ▪Phase 2 >Tactical Advertising Support for Mechanic Partnerships & Football Competition ▪Phase 2 >Tactical PR Support for Mechanic Partnerships & Football Competition.
  23. 23. [execution] 23
  24. 24. [phase one: the acorn lube instant winner roadshow] ▪The Acorn Lubricant Roadshow will consist of a branded bus ; a promotional team of 15 brand ambassadors, a Supervisor and DJ. Acorn Petroleum Plc provides sales van stocked with products. Over a period of 3 days roadshow visits selected popular spare parts markets, mechanic clusters / ’villages’ and motorparks across Lagos, Ogun, Oyo, Osun and Ondo states. ▪ Typical Roadshow format: recce team visits location latest 3 days ahead of Roadshow. On D- day, roadshow team sets up at location as early as 9 a.m & the DJ pumps the crowd , just as brand ambassadors move around, educating target market on how quality lubes protect engines and why they must shun fake/substandard lubes. ▪ Acorn Lubricant is introduced to them and they are encouraged to either stock and sell, or buy and use. Commuters and target market are given handbills which espouse the benefits of Acorn lubricants. ▪Buyers instantly given raffle tickets and advised to go to the stationary bus, where raffle draw takes place. Compere calls two members of the audience to help pick raffle tickets . 24
  25. 25. ▪ Prizes are given, including Face Caps, T-Shirts, etc. Roadshow moves on to another location within the city, after this. ▪Field Sales Promoters data-capture each auto spare part retailer sold to, for easy follow-up by the Acorn Sales staff in that area. ▪Activation to be supported with tactical radio commercials (2 Weeks) and outdoor billboards (6 months) 25 *Budget attached [phase one: the acorn lube instant winner roadshow] cont’d
  26. 26. [phase one: acorn social media –creating conversation and community] ▪According to official statistics for the last 6 months, Nigeria ranks number 31 on the list of facebook users per country, as there were 6,502,420 Nigeria-based users on Facebook. Facebook cuts across various socio-economic strata. ▪ Artisans, Technicians, Traders, Professionals, Business People and others from different works of life have facebook accounts & interact with those who share like interests with them. ▪ Vibrant, well-branded and regularly-updated facebook fan page to be created for & promoted on facebook ads in order to garner an optimum number of clicks & followers. ▪ Dedicated online content manager to drive conversation & engage facebook fans of Acorn through Automobile safety tips, Motoring tips, including information on lubrication, contests, regular updates of Acorn events (including live streaming & interactive games. ▪Facebook adverts will also be published to take web visitors to the fan page, or a special blog created for Acorn Lubricant. *See attached budget 26
  27. 27. [phase two: the Acorn Mechanic Partnership Scheme (AMPS)] ▪Mechanic workshops are usually the penultimate point in the value chain for automotive lubricants. They are POC, apart from the car owner (end-user). ▪ Redefinition of value chain can bridge the gap between POP & POCby co-opting selected mechanic workshops as AMP centres. ▪ Typical mechanic workshops selected as AMP centres will have branded product rack(s) to display the brand and other POP merchandise. Criteria for selecting mechanic workshops will include a.) location and b.) current volume of footfalls, etc ▪ Ancillary automobile needs (such as plugs, etc) may be bundled with Acorn lubricants, for this purpose, done in partnership with the owners of such brands to offer cross- marketing opportunities. 27
  28. 28. [phase two: the acorn football competition for mechanics –acorn mechanical moves] ▪Annual national football competition to be organized in association with trade associations such as the Motor Mechanics & Technicians Association of Nigeria (MOMTAN) and the National Automotive Technicians Association (NATA). ▪ Entry qualifications for teams will include purchase of a specific number of cartons of Acorn lubricant, while Team selection will be done in conjunction with executives of trade associations. Regional Qualifying matches will be organized and prizes given out to the winning teams and runners-up. ▪ Final matches will involve presentation of trophy, medals and other prizes such as tricycles, auto diagnostic kits, cartons of Acorn lubes, etc. A joint press conference will be organized with partnering associations to formally launch and announce the competition. Apart from media mileage which accrues to the Acorn brand through effective media relations support at each stage of the competition. ▪ Branding at each match venue will include live brand experiences reflective of Acorn lubricant’s positioning. *Budget to be provided 28
  29. 29. [key performance indices] >Efficient & seamless planning & execution of activations & other marketing communications support >Professional handling of the production of all merchandise >Efficient Brand Stewardship in all executions (sync with brand strategy) >Generation of ready-to-deal (RTD) retailers on database >Trial Sales of a significant sample of Acorn Lubricants. 29

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