shell helix quick oil change facility

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Methods in Business Research

HELIX QUICK OIL CHANGE FACILITY

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SHELL PAKISTAN

• The Shell enjoys over 100 years brand equity in the subcontinent, dating back to 1899

• In 1970, when 51% of the shareholding was transferred to Pakistani investors, the name of the company was changed to Pakistan Burmah Shell (PBS) Limited.

• The years 2001-2 have seen the Shell Petroleum Company successively increasing its share, with the Group now having a 76% stake in Shell Pakistan Ltd (SPL)- an expression of confidence in Pakistan Oil Market and Industry.

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PRODUCT: SHELL HELIX QUICK OIL CHANGE FACILITY

• Shell was pioneer in introducing the concept of Quick Oil Change on its forecourts.

• The value proposition for consumer was quick and convenient engine oil change under a purpose built structure. This offer was free with every oil pack purchased from the forecourt.

• This facility is the primary driver of Helix sales in the retail forecourt channel.

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• In order to keep pace with its customer needs, Shell has been gaining customer feedback through a nation wide motorist tracking study, which is on going process.

• The nationwide study being broad based does not offer clear-cut focused insights on Shell Helix Quick Oil change consumers

• The company therefore desires a usage and attitude research for the specific segment.

PROBLEM BACKGROUND

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MANAGEMENT PROBLEM STATEMENT

To gain consumer insights specifically for Shell Helix Oil Change Consumers and use them for increasing usage of the facility and sales of the

product.

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RESEARCH PROBLEM STATEMENT

The core of the research is to gain a deep insight into the motorists needs, attitudes, and usage behavior towards Helix quick oil change service.

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RESEARCH OBJECTIVES

1. To determine the demographic profile of the customers and their behavior and attitudinal pattern towards oil change.

2. To determine the motorists perception of Shell Helix quick oil change service.

3. To determine the usage pattern for the product and service facility.

4. To measure loyalty for Shell Helix Quick Oil Change and site loyalty.

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TYPE OF STUDY

• Research is primarily a descriptive study

• The aim of research is to gain insights about the needs, attitudes and usage patterns for the customers of this facility.

• The exploratory study using 20 in individual interviews and One Focus group discussion was used to develop a survey questionnaire.

• Core Study was focused on Usage and attitude (U&A) behaviors influencing the Research objectives

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EXPLORATORY FINDINGS

• Segmentation

• Psychographic Variables:

– Trouble avoider: “So that the car doesn’t stop in the middle of the road.”

– Performance-Oriented: “I Better performance.”

– Perfectionist: “I want to see my car in a good condition.”

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EXPLORATORY FINDINGS

• Demographic Variables:

• Car Type

• Area Of Residence

• Age Group

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Research Hypothesis/Assumptions

• Using findings from the exploratory research, the core research was used to analyze the multivariate factors and assumptions influencing consumer attitude and behavior :-

– Convenience is the most important attribute in consumer’s choice of using Shell Quick Oil Change Facility.

– The primary decision influencer for using the Quick Oil Change facility is personal experience of the user

– Shell Quick oil Change Service is preferred over its rival brands.

– Shell Quick Oil Change Facility is better than the service offered at other pumps and over conventional methods.

– The value proposition for Shell Helix Quick Oil Change is one-stop oil purchase and oil-change.

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SAMPLE DESIGN

• Stratified Probability Sampling

• Target Population: Car owners and drivers who are Helix Quick Oil Change Consumers, at the facility falling in any age group and income bracket

• The total sample space consisted of 200 respondents.

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Questionnaire Design

Questionnaire was developed keeping in mind:

– Questions to be as short as possible and easy to answer

– Language used was simple and conversational and was translated into in to Urdu from English

– Closed-ended to make it easy for the respondent to answer

– Convenient to analyze the data

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Few examples of Empirical Analysis

Demographics

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CAR OWNERSHIP

73% of all the respondents were car owners.

Car Driver

Car Owner

Identity of the repondent

27%

73%

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Car Ownership/Location

0 5 10 15 20 25 30 35

Owner

Drivers

Marine Drive

Askari

Popular

SunsetBolevard

Best Way

Malik P/S

Shamim P/S

CentralService

Safari

• Central Karachi accounts for 34% of respondents.

• The drivers segment have their highest frequencies with Marine Drive.

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Age Segment

8%

49%

23%

12% 8%

18-25

26-40

41-50

51-60

above 60

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Age against Respondents Identity

Amongst the leading majority in the age group segment, we observe that 68% are car owners.

The respondents in the segment 60 or more age segment, were all owners.

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Other Demographics

• Which car uses which lubricant

• Frequency and time

• Area of Residence

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Psychographics

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Reasons for Oil Change

I want my car to be in good condition

Better car performanceCar doesn't stop in the middle of the road

Reasons for Oil change

60

50

40

30

20

10

0

Perc

ent

Reasons for Oil change

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• Car drivers, as opposed to owners contributed almost 50% to being trouble avoiders in their oil-change practices.

• Standard car owners were predominantly trouble-avoiders and not pro-active.

• Age group 26-40 contributed the largest number of total respondents and hence the highest percentage in all psychographic segments.

Reasons for Oil Change

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BEHAVIORAL & ATTITUDNAL PATTERN

• The most preferred facility of the respondents pertaining to oil change was the petrol pumps with almost 94% of the sample responding in favor of it.

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Factors influencing the use of different oil change facilities

0102030405060

Petrol Pump % of Total

Spare Parts Shop % ofTotal

Mechanic's Workshop %of Total

Company's Workshop %of Total

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METHOD PREFERENCE

0

50

100

150

Frequency

AutomatedService

Trustworthy Good for theCar

Clean Service Faster Service

VARIABLES DIFFERENTIATING HELIX QUICK OIL CHANGE FROM TRADITIONAL OIL CHANGE

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0

1

2

3

4

5

Mean

ServiceSatisfaction

Quickness Oil and PetrolAvailability

Free Service Shell Loyalty AutomatedService

ProfessionalAttendants

HelixAvailability

Brand Perception

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VALUE OF HELIX OIL-CHANGE & SHELL HELIX AVAILABILITY

01020

30405060

70

Percentage

Helix Availability

Buy Shell Helix from thesite anyway

Buy Shell Helix from anyother workshop/ spareparts shop

Go to another Shell station

Buy some other oil brand

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COMPARATIVE RATING FOR SHELL HELIX OIL-CHANGE

020406080

100

Percentage

Muchbetterthan

others

Betterthan

others

Same asothers

Worsethanothers

Muchworsethan

others

Total

HELIX QUICK OIL CHANGE COMPARISON WITH OTHER BRANDS

Percent

• The comparative perception of Shell Helix Quick Oil Change seems to be very highly rated.

• 80.3% of the respondents feel that the Helix Quick Oil Change is either better or much better than other oil change facilities.

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Other

Total Quartz

PSO Castrol

Caltex Havoline

Shell Helix

Didn't have to answer

Most Preferred Brand Facility

• 91.1% said that Shell Helix Quick Oil Change Facility was the most preferred.

• When comparing the brand loyalty of the respondents with the engine oil used, it was interesting to note that 40% of the respondents who preferred Caltex Havoline, actually preferred the facility at Shell.

• 98% of the respondents who preferred Shell Helix oil, actually preferred the facility also.

Brand Loyalty

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• Car ownership and Comparative perception

• Oil brand Users and Helix Oil Change Preferences

• Value attached to Helix Oil Change

• Site Loyalty

Some others

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Hypothesis/Assumption Findings

• Convenience is the most important attribute in consumer’s choice of using Shell Quick Oil Change Facility.- ACCEPT

0102030405060

Petrol Pump % of Total

Spare Parts Shop % ofTotal

Mechanic's Workshop %of Total

Company's Workshop %of Total

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Hypothesis/Assumption Findings

• The primary decision influencer for using the Quick Oil Change facility is personal experience of the user.- ACCEPT

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10152025303540

Instr

uctions

on O

il P

ack

Mechanic

s

Advic

e

Pers

onal

Experience

Oil

Colo

r/

Vis

cosity

Oth

er

Reasons

$DecisionInfluencers(a)

Percent

Percent

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Hypothesis/Assumption Findings

• Shell Quick oil Change Service is preferred over its rival brands- ACCEPT

020406080

100

Percentage

Muchbetterthan

others

Betterthan

others

Same asothers

Worsethanothers

Muchworsethan

others

Total

HELIX QUICK OIL CHANGE COMPARISON WITH OTHER BRANDS

Percent

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Hypothesis/Assumption Findings

• Shell Quick Oil Change Facility is better than the service offered at other pumps and over conventional methods. -ACCEPT

0

50

100

150

Frequency

AutomatedService

Trustworthy Good for theCar

Clean Service Faster Service

VARIABLES DIFFERENTIATING HELIX QUICK OIL CHANGE FROM TRADITIONAL OIL CHANGE

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Hypothesis/Assumption Findings

• The value proposition for Shell Helix Quick Oil Change is one-stop oil purchase and oil-change.- ACCEPT

IMPORTANCE ATTACHED TO HELIX OIL CHANGE ATTRIBUTES-

DEVIATION FROM THE MEAN

0 0.2 0.4 0.6 0.8 1 1.2 1.4

Service SatisfactionQuickness

Oil and Petrol AvailabilityFree ServiceShell Loyalty

Automated ServiceProfessional Attendants

Helix Availability

Standard Deviation

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CONSUMER PROFILES

• NORTH

• Age group: 26-40 years

• Petrol Pump: Shamim Petroleum Service

• Identity: Car Owner

• Car Type: Compact

• Lubricant: Yellow

• Decision Influencer: Oil Color/ Viscosity

• Choice of Engine Oil: Shell Helix

• Frequency of Change Kilometer: 2000-3000 km

• Time: Every month

• Brand Loyalty: Shell Quick Oil Change Facility

• Preference of Method: Oil Suction Machine

• Facility Loyalty: Petrol Pump

• Psychographic Segmentation: Perfectionist

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CONSUMER PROFILES

• EAST

• Age group: 26-40 years

• Petrol Pump: Popular Service Station

• Identity: Car Owner

• Car Type: Standard

• Lubricant: Yellow

• Decision Influencer: Oil Color/ Viscosity

• Choice of Engine Oil: Shell Helix

• Frequency of Change Kilometer: 2000-3000 km

• Time: Every two months

• Brand Loyalty: Shell Quick Oil Change Facility

• Preference of Method: Oil Suction Machine

• Facility Loyalty: Petrol Pump

• Psychographic Segmentation: Perfectionist

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CONSUMER PROFILES

• WEST

• Age group: 26-40 years

• Petrol Pump: popular Service Station

• Identity: Car Driver

• Car Type: Standard

• Lubricant: Yellow

• Decision Influencer: Personal Experience

• Choice of Engine Oil: Shell Helix

• Frequency of Change Kilometer: 3000 km or more

• Time: After three months

• Brand Loyalty: Shell Quick Oil Change Facility

• Preference of Method: Oil Suction Machine

• Facility Loyalty: Petrol Pump

• Psychographic Segmentation: Perfectionist

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CONSUMER PROFILES

• SOUTH

• Age group: 26-40 years

• Petrol Pump: Marine Drive

• Identity: Car Owner

• Car Type: Standard

• Lubricant: Yellow

• Decision Influencer: Personal Experience

• Choice of Engine Oil: Shell Helix

• Frequency of Change Kilometer: 3000 km or more

• Time: Every two months

• Brand Loyalty: Shell Quick Oil Change Facility

• Preference of Method: Oil Suction Machine

• Facility Loyalty: Petrol Pump

• Psychographic Segmentation: Performance Oriented

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CONSUMER PROFILES

• CENTRAL

• Age group: 26-40 years

• Petrol Pump: Askari Service Station

• Identity: Car Owner

• Car Type: Compact

• Lubricant: Yellow

• Decision Influencer: Personal Experience

• Choice of Engine Oil: Shell Helix

• Frequency of Change Kilometer: 2000-3000 km

• Time: Every month

• Brand Loyalty: Shell Quick Oil Change Facility

• Preference of Method: Oil Suction Machine

• Facility Loyalty: Petrol Pump

• Psychographic Segmentation: Perfectionist

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Recommendations

• Advertising and Marketing Efforts

• Capacity Utilization

• Consumer Awareness

• Justifying Price & Inducing Incentives

• Facility Placement

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THANK YOU!

QUESTIONS / COMMENTS