Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
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- Figure 1: Fan chart forecast for oil change retail revenues, at best-, worst-, and central-case scenarios, 2006-2016
- Market factors
- Vehicle manufacturers challenging 3,000-mile oil change recommendation
- Consumers holding onto vehicles longer, increasing need for oil changes
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- Figure 2: Average age of cars and light trucks, 1995-2011
- U.S. drivers driving fewer miles, threatening oil change frequency
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- Figure 3: Consumer vehicle miles traveled, all U.S. roads and streets, 1998-2011
- Hybrid sales increase has potential to threaten oil change market
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- Figure 4: Total U.S. sales and forecast of hybrid vehicles, 2006-14
- Segmentation
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- Figure 5: U.S. oil change retailers, type of store by number of units, March 2011
- Seven retailers control half of market
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- Figure 6: Top seven U.S. oil change retailers, by store units, March 2011
- The consumer
- Respondents most likely to take vehicle in for oil change
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- Figure 7: Incidence of changing oil, and who did it, by household income, March 2012
- Majority of respondents getting oil changes for cars 7 years old or newer
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- Figure 8: Age of vehicle for latest oil change, March 2012
- Dealership, service shop, and Jiffy Lube top three consumer preferences
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- Figure 9: Shop used for last oil change – top five chains by age, March 2012
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- Figure 10: Shop used for last oil change – dealership/shop types, by age, March 2012
- Window sticker, service checkup primary methods of reminding
- One third of respondents ask oil change technicians about oil
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- Figure 11: How drivers know which oil to use for their vehicle, by gender, March 2012
- Hispanics most likely to get oil changed on cars dating to 1999 and older
- Black, Hispanic respondents most likely to prefer franchises over whites
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- Figure 12: Shop used for last oil change – Usage of main dealership, Jiffy Lube or Walmart, by race/Hispanic origin, March 2012
- What we think
Issues in the Market
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- Impact of changes in recommendations for oil change frequency
- Hybrid, EV market presents new opportunities
- Taking a cue from dealerships to build relationships
Insights and Opportunities
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- Establish a dialogue with customers to understand their driving habits
- Create discounts that are specifically tailored to the community
- Prepaid gift cards can provide convenience, savings
Inspire Insights
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- Inspire trend: Alpha Mothers
- Inspire trend: Experience Is All
Market Size and Forecast
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- Key points
- Oil change retail market forecast to increase 9.5% by 2016
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- Figure 13: Total U.S. revenues of oil change/lubrication retailers, at current prices, 2006-16
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- Figure 14: Total U.S. revenues of oil change/lubrication retailers, at inflation-adjusted prices, 2006-16
- Fan chart forecast
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- Figure 15: Fan chart forecast for oil change retail revenues, at best-, worst-, and central-case scenarios, 2006-16
Market Drivers
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- Public campaigns, manufacturers challenging 3,000-mile recommendation
- Consumers holding onto vehicles longer, increasing demand for service
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- Figure 16: Average age of cars and light trucks, 1995-2011
- Fewer miles driven by U.S. drivers, likely affecting frequency of oil changes
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- Figure 17: Consumer vehicle miles traveled, all U.S. roads and streets, 1998-2011
- Rising gas prices may affect oil change frequency in different ways
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- Figure 18: U.S. regular conventional retail gasoline prices, by first week in April, 2002-12
- Increase in hybrid vehicle sales expected to threaten oil change market
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- Figure 19: Total U.S. sales and forecast of hybrid vehicles, 2006-14
- Majority of respondents report they bought, changed oil over past year
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- Figure 20: Incidence of changing motor oil in the past 12 months, by age, October 2010-November 2011
- Among oil buyers, self-service, oil shop top ways of changing oil over past year
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- Figure 21: Who did oil change In last 12 months, by gender, October 2010-November 2011
Retail Structure—Overview
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- Key points
- Quick lube center fourth choice for respondents in servicing vehicles
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- Figure 22: Type of store used for light or heavy duty maintenance/repair in the last 12 months, by age, October 2010-November 2011
- Repair shops dominate dealerships for servicing
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- Figure 23: Type of store used for light or heavy duty maintenance/repair in the last 12 months, by household income, October 2010-November 2011
- Oil change plus outlets dominate oil change retail market
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- Figure 24: U.S. oil change retailers, type of store, by number of units, March 2011
- More than half the market controlled by top seven retailers
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- Figure 25: Top seven U.S. oil change retailers, by store units, March 2011
Segment Performance—Oil Change Plus
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- Key points
- Three chains control 40% of oil change plus segment
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- Figure 26: Top 15 U.S. oil change plus chains, by store units, March 2011
- Walmart Tire & Lube Express
- Bridgestone Retail Operations
- Goodyear Tire & Service Network
Segment Performance—Fast Lube Chains
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- Key points
- Jiffy Lube controls 30% of U.S. fast lube market
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- Figure 27: Top 15 U.S. fast lube chains, by store units, March 2011
- Jiffy Lube International
- Valvoline
- Pennzoil
Segment Performance—Associated Lube Chains
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- Key points
- Associated lube chains concentrate locations in specific regions
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- Figure 28: Top U.S. associated lube chains and headquarter location, by store units, March 2011
Innovation and Innovators
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- Mobile app gives consumers ability to compare, contrast deals
- Auto repair shop offers warranty on all service work
- QR code on window sticker provides oil change updates
- Meineke launches program to help returning veterans become owners
Marketing Strategies
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- Strategy: Using cause marketing to create good will
- Strategy: Generate personality through signage, décor, social media
- Strategy: Personalize service workers through humor
- Strategy: Mobile marketing perfectly designed for nature of oil changes
- Strategy: Using the recession to motivate savings
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- Figure 29: Jiffy Lube “Penny Earned” ad, May 2011
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- Figure 30: Meineke “Good For Budget” ad, January 2012
- Strategy: Tailoring message to driving behavior of women
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- Figure 31: Super Lube “Severe Driver” ad, December 2011
- Strategy: Providing perks at the time of the year consumers need it most
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- Figure 32: Delta Sonic “Two For One” ad, December 2011
- Strategy: Emphasizing local connection of oil change outlet
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- Figure 33: Jiffy Lube “On The Road” ad, June 2011
Incidence of Changing Oil
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- Key points
- Most take vehicle in for oil change, few DIYers
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- Figure 34: Incidence of changing oil in past year, and who did it, March 2012
- Incidence of taking to shop rises with age
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- Figure 35: Incidence of changing oil in past year and who did it, by age, March 2012
- Likelihood of taking to a shop rises with income
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- Figure 36: Incidence of changing oil in past year and who did it, by household income, March 2012
- Rural respondents most likely to change their own oil
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- Figure 37: Incidence of changing oil in past year and who did it, by area, March 2012
Age of Vehicle for Latest Oil Change
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- Key points
- Majority of respondents getting oil changes for cars 7 years old or newer
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- Figure 38: Age of vehicle for latest oil change, March 2012
- Higher-income households changing oil on younger vehicles
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- Figure 39: Age of vehicle for latest oil change, by household income, March 2012
- Those in the West most likely to be changing oil on oldest vehicles
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- Figure 40: Age of vehicle for latest oil change, by region, March 2012
Shops Used for Oil Change
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- Key points
- One fourth of respondents last got oil changed at car dealership
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- Figure 41: Shop used for last oil change, by gender, March 2012
- Use of dealerships and local service shops for oil change increases with age
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- Figure 42: Shop used for last oil change, by age, March 2012
- Walmart oil change used most by households earning less than $75K
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- Figure 43: Shop used for last oil change, by household income, March 2012
- Walmart gains oil change customers from rural areas
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- Figure 44: Shop used for last oil change, by area, March 2012
- Other shops used in past two years
- Key points
- Jiffy Lube most preferred oil change operator over last two years
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- Figure 45: Other shops used for oil change in past two years, by age, March 2012
- Highest-earning households prefer Jiffy Lube, dealership
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- Figure 46: Other shops used for oil change in past two years, by household income, March 2012
- Urbanites most likely to have gotten oil changed at local service shop
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- Figure 47: Other shops used for oil change in past two years, by urban area, March 2012
- Shops considered for future oil changes
- Key points
- Majority considering Jiffy Lube for future oil changes
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- Figure 48: Shops that would be considered for future oil change, by age, March 2012
- Future preference for Jiffy Lube reigns for households earning <$75K
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- Figure 49: Shops that would be considered for future oil change, by household income, March 2012
- Jiffy Lube most likely to be future choice in the West
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- Figure 50: Shops that would be considered for future oil change, by region, March 2012
- Rural households most likely to consider local service shops first
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- Figure 51: Shops that would be considered for future oil change, by urban area, March 2012
How Consumers are Reminded of Oil Changes
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- Key points
- Respondents say window sticker, regular servicing top ways of reminding
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- Figure 52: What reminded car owner to do an oil change, by gender, March 2012
- Reminder via oil change light highest among youngest respondents
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- Figure 53: What reminded car owner to do an oil change, by age, March 2012
- Rural households most likely reminded through regular servicing
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- Figure 54: What reminded car owner to do an oil change, by urban area, March 2012
- Swing Generation most responsive to windshield stickers
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- Figure 55: What reminded car owner to do an oil change, by generation, March 2012
Factors Driving Choice of Oil Change Outlet
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- Key points
- Typical reminders don’t impact operator choice for more than a third of vehicle owners
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- Figure 56: What persuaded the car owner to use a particular store for last oil change, by age, March 2012
- Urban respondents most likely influenced by windshield sticker
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- Figure 57: What persuaded the car owner to use a particular store for last oil change, by urban area, March 2012
- Swing Generation respondents most persuaded by windshield stickers
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- Figure 58: What persuaded the car owner to use a particular store for last oil change, by generation, March 2012
How Drivers Know Which Oil to Use for Vehicle
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- Key points
- Reading the manual and asking the technician are main ways to know which oil to use
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- Figure 59: How drivers know which oil to use for their vehicle, by gender, March 2012
- Those aged 65+ most likely to seek advice from technicians
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- Figure 60: How drivers know which oil to use for their vehicle, by age, March 2012
- Highest-income households least informed about which oil to use in car
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- Figure 61: How drivers know which oil to use for their vehicle, by household income, March 2012
- Late, Early Boomers most likely to read manual
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- Figure 62: How drivers know which oil to use for their vehicle, by generation, March 2012
Attitudes Regarding Last Oil Change Experience
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- Key points
- Youngest respondents least likely to agree reception staff explained work
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- Figure 63: Attitudes regarding last oil change experience shop and staff, by age, March 2012
- Millennials, Gen Xers least likely to agree they were charged a fair price
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- Figure 64: Attitudes regarding last oil change experience shop and staff, by generation, March 2012
- Respondents at Walmart most likely to agree they received a fair price
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- Figure 65: Attitudes regarding last oil change experience shop and staff, by shop used for last oil change, March 2012
Attitudes and Behavior Relating to Oil Change
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- Key points
- Half of respondents say they always choose same shop for oil changes
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- Figure 66: Attitudes and behavior relating to oil change, by gender, March 2012
- Going to the same outlet is most important for older respondents
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- Figure 67: Attitudes and behavior relating to oil change, by age, March 2012
- Swing Generation most likely to go to the same shop
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- Figure 68: Attitudes and behavior relating to oil change, by generation, March 2012
- Dealership customers say consistency is important
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- Figure 69: Attitudes and behavior relating to oil change, by shop used for last oil change, March 2012
Impact of Race and Hispanic Origin
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- Key points
- Hispanics most likely to get oil changed on cars dating to 1999 or earlier
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- Figure 70: Age of vehicle for latest oil change, by race/Hispanic origin, March 2012
- Shops for oil change
- Blacks, Hispanics more likely than whites to use franchises for last change
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- Figure 71: Shop used for last oil change – Usage nets, by race/Hispanic origin, March 2012
- Over the longer term, Walmart and Jiffy Lube prominent for blacks and Hispanics
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- Figure 72: Other shops used for oil change in past two years, by race/Hispanic origin, March 2012
- White, black, Hispanic respondents all prefer Jiffy Lube for future changes
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- Figure 73: Shops that would be considered for future oil change, by race/Hispanic origin, March 2012
- Best oil change reminders, and influence on shop used
- Stickers dominate reminders; Hispanics keep an eye on oil change light and coupons
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- Figure 74: What reminded car owner to do an oil change, by race/Hispanic origin, March 2012
- Stickers dominate for shop choice but television influences blacks
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- Figure 75: What persuaded the car owner to use a particular store for last oil change, by race/Hispanic origin, March 2012
- Hispanics more likely than others to look for advice from family, friends on which oil to use
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- Figure 76: How drivers know which oil to use for their vehicle, by race/Hispanic origin, March 2012
- Preference to seek more than one quote higher with Hispanics, blacks
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- Figure 77: Attitudes and behavior relating to oil change, by race/Hispanic origin, March 2012
- Choice of outlet for all servicing influences oil change work
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- Figure 78: Type of store used for light or heavy duty maintenance/repair in the last 12 months, by race/Hispanic origin, October 2010-November 2011
- White respondents most likely to have purchased, changed oil
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- Figure 79: Incidence of changing motor oil in the past 12 months, by race/Hispanic origin, October 2010-November 2011
- Hispanics most likely to change/add vehicle oil at home
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- Figure 80: Who did oil change In last 12 months, by race/Hispanic origin, October 2010-November 2011
- Asian respondents most likely to not know brand of oil purchased
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- Figure 81: Brands of oil bought or changed in the last 12 months, by race/Hispanic origin, October 2010-November 2011
Appendix
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- How drivers know which oil to use for their vehicle, by area
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- Figure 82: How drivers know which oil to use for their vehicle, by area, March 2012
- Oil change attitudes/behavior, by shop last used for oil change
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- Figure 83: Attitudes and behaior relating to oil change, by shop used for last oil change, March 2012
Appendix—Trade Associations
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