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

1. Acorn Automotive Lubricants:
Marketing Communications Plan
Dele Ogundahunsi
(+2348164969170)

2. [background]
2

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. [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. 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. [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. [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. [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. [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. [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. [strategy]
11

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. 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. 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. 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. 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. 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. 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. 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. [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. 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. 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. [execution]
23

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. ▪ 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. [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. [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. [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. [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