Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Oil change market affected by U.S. recession, U.S. automotive market
- Oil change-plus operators control 69% of market; fast lube chains 30%
- Oil change retail threatened by dealership transitioning to service centers
- Fewer miles traveled may create less reliance on oil changes, maintenance
- Industry doubling suggested miles driven requiring oil changes, check-ups
- Car sales plummet as consumers maintain older cars, benefiting oil change
- Consumer survey results
- Youngest respondent households earning least are likely to own car
- Most respondents pay for oil changes than participate in self-service
- About half of respondents change oil every three months as recommended
- Those aged 35-44 are most invested in changing oil every three months
- Higher earning households uniform in changing oil more consistently
- Jiffy Lube most preferred among respondents; Walmart is second
- Routine, quality of work equally responsible for bringing consumers back
- Belt-tightening resulting in respondents preferring basic service the most
- Aftermarket items a tough sell in recessionary times; 60% not interested
- Consumers spending between $30-50 in total at oil change outlets
Insights and Opportunities
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- Offer mobile oil service for commuters, upscale consumers, fleet operators
- Invite customers to stay in their car for novelty, convenience, assurance
- Partner with area restaurants, theaters to offer valet service checks
Inspire Insights
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- Trend: Simplicity and Convenience
- Convenience means far more ease and portability
- Oil change outlets will benefit by allowing convenience to start from home
Market Size and Forecast
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- Key points
- Oil change retail market falls hardest in 2010 but picks up past recession
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- Figure 1: Total oil change retail revenues, at current prices, 2004-14
- Figure 2: Total oil change retail revenues, at inflation-adjusted prices, 2004-14
Competitive Context
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- Dealerships strengthen service component, threatening oil change revenue
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- Figure 3: U.S. new car dealerships, 1987-2008
- Fewer miles traveled may create less reliance on oil changes, maintenance
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- Figure 4: Consumer vehicle miles traveled, all U.S. roads and streets, 1998-2008
- Industry doubling suggested miles driven requiring oil changes, check-ups
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- Figure 5: Factory recommended miles for oil changes, per vehicle brand, December 2007
Market Drivers
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- Car sales plummet as consumers maintain older cars, benefiting oil change
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- Figure 6: Total sales at new car dealerships, at current prices, 2003-09
- New vehicle sales dominate, but losing slight market share to used
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- Figure 7: U.S. sales at new car dealerships, by segment, 2005 and 2007
- Right to Repair Act poised to give oil change operators repair advantage
Segment Performance
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- Key points
- Oil Change-Plus operators control 69% of market; fast lube chains 30%
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- Figure 8: Top U.S. oil change retailers, by store units, March 2009
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- Figure 9: Top U.S. oil change retailers, by store units, March 2009
Segment Performance—Oil Change-Plus Shops
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- Key points
- Overview
- Walmart Tire & Lube Express
- Goodyear Gemini Automotive Care
- Firestone Complete Auto Care
- Focus on recycled motor oil changes; EcoPower launch on both coasts
- Midas Auto Service
- Midas experimenting with co-branding SpeeDee shops, 25 due by 2010
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- Figure 10: Top 50 U.S. oil change-plus chains, by store units, March 2009
Segment Performance—Fast Lube Chains
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- Key points
- Overview
- Jiffy Lube transitions from speed, convenience to preventive maintenance
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- Figure 11: Top U.S. fast lube chains, by store units, March 2009
Segment Performance—Associated Chains
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- Key points
- Overview
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- Figure 12: Top U.S. associated chains, by store units, March 2009
Innovation and Innovators
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- Firestone launches inaugural “greener” oil change service in Oregon
- Technology company markets “green” oil filter to make oil changes last
- Jiffy Lube launches program that evaluates, encourages fuel efficiency
Advertising and Promotion
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- Mobile phone applications, promotions direct consumers to lube outlets
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- Figure 13: Online advertising by the U.S. automotive industry, 2007-12
- Loyalty cards allows convenience, speed for individual and fleet customers
- Analysis of commercial television spots
- Using environmental messages to drive home value of regular oil changes
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- Figure 14: Lube Stop ad, 2009
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- Figure 15: Jiffy Lube ad, 2009
- Preventative maintenance message used to offset gas prices, recession
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- Figure 16: Jiffy Lube Signature Service ad, 2009
- Engine warranty promoted as incentive for regular oil changes
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- Figure 17: Valvoline ad, 2009
Oil Change Retail—Preference
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- Key points
- Youngest respondent households earning are least likely to own car
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- Figure 18: Automotive ownership, by gender, age, and household income, April 1-14, 2009
- Most respondents pay for oil changes than participate in self-service
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- Figure 19: Oil change preference, by gender, April 1-14, 2009
- Younger respondents more than oldest least likely to pay for oil changes
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- Figure 20: Oil change preference, by age, April 1-14, 2009
- Divide in household income not as relevant in determining pay, self-service
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- Figure 21: Oil change preference, by household income, April 1-14, 2009
Oil Change Retail—Frequency
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- Key points
- About half of respondents change oil every three months as recommended
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- Figure 22: Oil change frequency, by gender, April 1-14, 2009
- Those aged 35-44 are most invested in changing oil every three months
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- Figure 23: Oil change frequency, by age, April 1-14, 2009
- Higher earning households uniform in changing oil more consistently
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- Figure 24: Oil change frequency, by household income, April 1-14, 2009
Oil Change Retail—Segment Preference
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- Key points
- Oil change outlets, car dealerships equally preferred by respondents
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- Figure 25: Oil change segment preference, by gender, April 1-14, 2009
- As respondents turn 55, they shift from oil change outlets to dealerships
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- Figure 26: Oil change segment preference, by age, April 1-14, 2009
- Wealthiest respondents more likely to use dealerships, less use mechanics
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- Figure 27: Oil change segment preference, by household income, April 1-14, 2009
Oil Change Retail—Brand Preference
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- Key points
- Jiffy Lube most preferred among respondents; Walmart is second
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- Figure 28: Oil change brand preference, by gender, April 1-14, 2009
- Walmart most heavily patronized by those aged 18-24; those 65+ the least
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- Figure 29: Oil change brand preference, by age, April 1-14, 2009
- Wealthiest least loyal to Walmart; most likely than others to go to Jiffy Lube
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- Figure 30: Oil change brand preference, by household income, April 1-14, 2009
Oil Change Retail—Reason for Choice
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- Key points
- Routine, quality of work equally responsible for bringing consumers back
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- Figure 31: Oil change reason for choice, by gender, April 1-14, 2009
- Older respondents motivated most by quality, routine than youngest
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- Figure 32: Oil change reason for choice, by age, April 1-14, 2009
Oil Change Retail—Service Choice
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- Key points
- Belt-tightening resulting in respondents preferring basic service the most
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- Figure 33: Oil change service choice, by gender, April 1-14, 2009
- Gap between oil change services narrow as respondents age
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- Figure 34: Oil change service choice, by age, April 1-14, 2009
- Wealthy more inclined to get basic service than more expensive full
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- Figure 35: Oil change service choice, by household income, April 1-14, 2009
Oil Change Retail—Aftermarket Activity
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- Key points
- Aftermarket items a tough sell in recessionary times; 60% not interested
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- Figure 36: Oil change aftermarket, by gender, April 1-14, 2009
- Least wealthy households most likely to purchase aftermarket items
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- Figure 37: Oil change aftermarket, by household income, April 1-14, 2009
Oil Change Retail—Consumer Spend
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- Key points
- Consumers spending between $30-50 in total at oil change outlets
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- Figure 38: Oil change consumer spend, by gender, April 1-14, 2009
- Those aged 18-24 are spending the most at oil change outlets
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- Figure 39: Oil change consumer spend, by age, April 1-14, 2009
Race and Hispanic Origin
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- Key points
- Hispanics show potential growth for marketing oil change service, repair
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- Figure 40: Oil change preference, by race or Hispanic origin, April 1-14, 2009
- Blacks most active in changing oil every three months; Hispanics more so
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- Figure 41: Oil change frequency, by race or Hispanic origin, April 1-14, 2009
- Hispanics most prefer oil change outlets; blacks prefer dealers most
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- Figure 42: Oil change segment preference, by race or Hispanic origin, April 1-14, 2009
- Hispanics value personal recommendations more than blacks, whites
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- Figure 43: Oil change reason for choice, by race and Hispanic origin, April 1-14, 2009
- Hispanics spending more than peers on aftermarket parts, fluids
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- Figure 44: Oil change aftermarket, by race and Hispanic origin, April 1-14, 2009
- Hispanic respondents most likely to spend the most, whites the least
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- Figure 45: Oil change consumer spend, by race and Hispanic origin, April 1-14, 2009
Cluster Analysis
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- Retailers
- Shoppers
- Dealers
- Cluster characteristics
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- Figure 46: Oil change clusters, April 2009
- Figure 47: Oil change segment preference, Oil change clusters, April 2009
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- Figure 48: Oil change reason for choice, change clusters, April 2009
- Figure 49: Oil change service choice, Oil change clusters, April 2009
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- Figure 50: Oil change aftermarket, Oil change clusters, April 2009
- Figure 51: Oil change brand preference, Oil change clusters, April 2009
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- Figure 52: Oil change clusters, April 2009
- Cluster demographics
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- Figure 53: Oil change clusters, by gender, April 2009
- Figure 54: Oil change clusters, by age group, April 2009
- Figure 55: Oil change clusters, by income group, April 2009
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- Figure 56: Oil change clusters, by race, April 2009
- Figure 57: Oil change clusters, by Hispanic origin, April 2009
- Cluster methodology
Appendix: Other Useful Consumer Tables
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- Reason for choice and household income
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- Figure 58: Oil change reason for choice, by household income, April 1-14, 2009
- Aftermarket purchasing and respondent age
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- Figure 59: Oil change aftermarket, by age, April 1-14, 2009
- Consumer spend and household income
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- Figure 60: Oil change consumer spend, by household income, April 1-14, 2009
- Brand preference and race and Hispanic origin
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- Figure 61: Oil change brand preference, by race or Hispanic origin, April 1-14, 2009
- Oil change service choice and race and Hispanic origin
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- Figure 62: Oil change service choice, by race and Hispanic origin, April 1-14, 2009
Appendix: Trade Associations
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