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SYPNOSIS: (CASE SITUATION) Delta oil was a national chain of franchised, specialty oil change outlets. In 1994, the owner introduced an Express Service package to Rosemont market, offering a “no frills” oil change for $19.99, and promising to complete the oil change in five minutes. Initially, the Express Service appeared to be responsible for a significant increase in sales. However, by the summer of 1995, sales had fallen to the levels achieved before the new service was introduced. So the owner decides to research the oil change consumer IDENTIFICATION OF ISSUES • CUSTOMER RETENTION In reference to question 2c in the questionnaire, about 42% of the Delta Clients have had their last four oil changes in the same place as compared to 61% of the Rosemont clients. It can be inferred that the former a larger percentage of the Delta clients do not go back to the Delta outlets in comparison to the Rosemont residents who do. Therefore the clients do not have their expectations met resulting in them returning to the same Delta outlets. This may signify that the product does not have a competitive edge in the target market. • PRODUCT The Express Service package is offered in five minutes. From the question 7, only 19% of the Delta Clients and 5% of the Rosemont clients expect to have their oil change to take less than 15 minutes. Compare to 80%of Delta clients and 78% of Rosemont resident who expect the work to take between 15-30 minutes. Eighty-five percent of the Delta clients and 74% of Rosemont clients expect to have invoice and work explanation. In addition to that, 70% of the delta clients and 58% of the Rosemont resident they would like to spend more time with the Service agent so that they could be explained to the services that they have been rendered. However, 86% of the Delta clients and 88% of the Rosemont residents would pay more for these services. • This service has been omitted in the Express Service package. Also omitted in the Express Service package is the comprehensive visual check, of which 89% of Delta clients and 88% of Rosemont Residents would like to have one. Although, 73% of the Delta clients and 74% of the Rosemont clients are not willing to pay more for it. In question 20a, 60% of the clients responded that they had not yet heard of the Express Service package yet, meaning that that their publicity is not effective and hence not reaching their targeted customers. • PRICE About 37% of the Delta clients and 36% of the Rosemont Residents would pay less than 20 US Dollars for oil change and filter as compared to 55% of Delta clients and 52% who expect to pay between 21 to 30 US Dollars.
Approximate Word count = 1705
Approximate Pages = 6.8
(250 words per page double spaced)
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