Lucas Oil products

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Lucas Oil High Performance Motorcycle Oil

The Company

Lucas Oil products Inc. is a firm that manufactures and sells automotive oil and additives. The company was established by truck driver Forrest Lucas and his wife Charlotte in 1989 and is based in Corona, California. The company offers lubricants and additives for automotives in the United States. It provides heavy duty plus synthetic lubricate stabilizers, as well as fuel treatment products like semi-synthetic automatic transmission fluids. It also provides transmission fix products such as racing, motor, gear, truck, gun, and motorcycle oils, in addition to wheel and slider lube, hydraulic fluids, heavy duty grease, chain lubricants as well as liquid and metal polishes. The company too engages in automobile sponsorships and racing occasion promotions. For instance, the company is the sponsor of a number of racing events like National Association for Stock Car Auto Racing (NASCAR), and Indy Racing League events (The McGraw-Hill Companies Inc. 2009).

Lucas Oil Products Inc. is among the fastest-growing additive companies in the customer automotive industry; reason because it is featuring a line of oils, grease and problem-solving additives. Through inventive product research and improvement, in conjunction with aggressive marketing strategy, the company has established itself as the top selling additive form in the America's automotive industry and is rapidly becoming a product of preference for many clients Hispanic, (2005). The company has many competitors in the market of automotives oil, some of them include; U.S. Oil Co., Wynn Oil Company, Shell, Chevron corporation and many others.

Micro Environmental Factors are internal factors attached to the corporation that have a direct influence on the organizations strategy (Learnmarketing, 2009). They factors include:

Customers;

firms survive on the base of meeting the interests, wants and offering benefits for their clients. Failure to accomplish this will result in an unsuccessful business strategy. Lucas Oil Products are available in many retailers in the country such as Auto Zone, Napa, O'Reilly Auto Parts, PEP Boys, Advance Auto, Checker, Shucks, Carquest, Murray's, CSK Auto Parts and Kragen Stores nationwide.

Employees;

employing the correct personnel and keeping these personnel motivated is a crucial factor of the strategic planning process of a business. Training and development of the work force is essential, especially in the service sector marketing to enable the firm to gain a competitive edge.

Suppliers;

these include the raw materials suppliers. When the prices of raw material used by any company increase; it results to a negative impact on the marketing strategy of the company as prices are forced to rise as a result. Closer supplier associations are one approach of ensuring competitive and excellence products for a company.

Shareholders;

companies require bigger inward investment to grow and the major source to this is from the shareholders. Satisfying shareholder requirements is essential to winning their confidence and willingness to invest in the company. Lucas products Inc. through their more frequent appearances and support of public events has been capable of wining the support of its shareholders.

Media;

Positive media attention on a company product or service is vital in making the company. Consumer programmes with big and more direct spectators can have a very influential and positive impact in the marketing strategy of the company. Lucas products Inc. is a common name in the media as it is featured every now and then in the automotive racing events.

Competitors;

market differentiation is essential to survival in the competitive market. Companies must strive to offer benefits that their competitors cannot or are not offering. Competitor monitoring and analysis is critical to any organization in order to maintain its place within the market.

There are numerous factors in the macro-environment that effects decision making in any company (Oxford University Press, 2007). Examples of macro changes include tax changes, new policies, demographic change, trade barriers and government policy changes.

Macro-environmental factors can be categorized as follows:

Political factors;

which refers to government policy like the degree of intervention in the economy. Political decisions may impact on a lot of vital issues for business like the education of the personnel, the health of the state and the excellence of the infrastructure of the economy like the road and rail system.

Economic factors;

comprise of interest rates, economic growth, inflation, taxation changes and exchange rates. For example elevated national income growth can boost demand for a company's products

Social factors;

like dynamics in social trends can have a shock on the demand for a firm's merchandise and the availability as well as the willingness of persons to work. For instance the main clients of Lucas Oil Inc. are the middle aged people which can be attributed to the high percentage of this population in the U.S.

Technological factors:

novel technologies generate new products and innovative processes. This company has utilized this and it has enabled them to remain stable in the market through introducing new and advanced automotive oil products in the market regularly. Technology reduces costs, advance quality and show the way to innovation.

Environmental factors:

environmental factors comprise of the weather and climate changes. The growing need to look after the environment is having an influence on many companies; for instance, more taxes are being placed on hybrid cars, which affect this company.

Legal factors:

these are linked to the legal environment in which business operate. Legal changes might affect a company's costs, for instance if new systems and measures have to be developed and demand; if the law influences the likelihood of clients buying the product or using the service.

 

The product

Lucas High Performance Motorcycle Oils are the products of technology achieved through years of blending automobile oils and gear oils for the racing sector. They are true racing oils that by far surpass all manufacturer specifications and are known to outlast other oils up to four times on the road. Lucas presents a full range of motorcycle oils that by far go beyond all OEM specifications for the motorcycle and All-Terrain Vehicles industry. Lucas Motorcycle oils may be used in every motorcycle or ATV engine, water cooled or air cooled.

There are many key benefits that the consumer can get through using these products that cannot be gotten from other manufacturers. These benefits include lower oil temperatures, longer oil life, less noise and smaller amount of leaks, which assures the user extended component life.

The Lucas High Performance Motorcycle Oils are packaged in several packages that are suitable for specific users that utilize the product. This enables the user save money and avoids wastages as the oil cases/packages are designed to fit the exact use it was intended for. The packages for this product include:

 

SWOT Analysis

The best way to reviewing your business and market strategies is to undertake a SWOT analysis. SWOT is an acronym for strengths, weaknesses, opportunities, and threats that a business has. A company is affected by various factors that may be both internal and external. Strengths and weaknesses correspond to internal factors while opportunities and threats stand for external factors that influence the company. A SWOT Analysis tool is a management's internal and external diagnosis methodology that helps financial institutions deal with this ever changing environment. In marketing, we will perform a SWOT analysis as an aid to strategic planning.

The internal factors are those that come out from within the organization ranging from the way it processes its products to how it handles the personnel within its premises. Strengths represent the internal factors of your company, either tangible or non-tangible that can be judged to be working well (Chapman, A. 2009). They can consist of particular personnel skills or the products and services that the company considers their best. They concentrate on any area of the organization that can not be matched by its competitors. One of the strengths of the company is the partnership playing with MavTV and they have formed a Major Strategic Agreement involving the Two Companies; MavTV (an all time cable and satellite television network) and Lucas Oil Products (Reuters, 2009). The two firms will be working jointly on original HD programming that involved sharing production services in Atlanta and Los Angeles and organizing joint marketing and promotional campaigns. Besides the dealer complex and distributors, Lucas Oil has also created an exceptional partnership with hand chosen eminence aftermarket and OEM motorcycle dealers known as to as ‘Lucas Oil Pit Stops'.

Weakness being another internal factor looks at the gaps in the product or service provision, skills that the personnel of the company are considered not to have, or still be deficient in of capital. They represent those areas or aspects within your organization that adversely have an influence on the organization's ability to expand and move to the next level.

The external factors are those influences from without the organization; they range from competitors to the market factors. Opportunities represent the areas and strategies that can make the organization expand, take advantage of on an existing hole in the market, or come up with a new offering to meet an expectation in the market. Valuable opportunities can emerge from things like: advancements in technology and markets on both a narrow broad and level, changes in government policy connected to your field, changes in communal patterns, population profile and lifestyle dynamics and local events (Mindtools, 2009). The brand name of Lucas oil is well known worldwide today. The main concern over the past small number of years has been to put this name brand to be still better known globally which they have achieved. Their provision of new products has been tended by the public demands.

Similar to opportunities, threats are external to the business. They are factors in the market that might have an unfavorable impact on growth, like a new competitor or dynamics in the client behaviors. A company should look at the obstacles it is facing, what are the competitors are doing that should be concern you, changes in the required specifications for your job, goods or services, any change technology that might threaten your position, bad debt and cash-flow problems at your organization and if any of your weaknesses critically threaten your company. Brand recognition is the important factor affecting their competitive position. The most crucial threat is that of the global credit crunch which has threatened to force business away from any company Lucas oil included.

Marketing Strategy

Marketing strategy the process that allows a business to concentrate its scarce resources on the best opportunities to enhance sales and realize a sustainable competitive advantage. It is centered on the key theory that customer satisfaction is the chief goal. A marketing strategy is a designed plan which unites product development, distribution, promotion, and pricing system, identifies the organization's marketing goals, and explains the way they will be accomplished within a declared timeframe. Marketing strategy helps in deciding on the choice of target market division, positioning, marketing merge, and distribution of resources.

Marketing strategy have six elements that are vital and should be adopted it the strategy has to be fruitful. These elements are sometimes referred as the six P's of marketing. The six P's of marketing have been tested by several market theorists practically and found to be effective. Understanding every of the six P and how to use it can assist your marketing outcomes skyrocket. They include;

Product;

importantly here is to know what is the company's real product. This is greatly influenced by what do the customers or users of the products have to say and consequently changing the services and products you offer them to satisfy their wants and desires. Lucas Oil Products Inc. has noticed these and has offered direct links to their clients to give their view and opinions through their website and in the open events that they sponsor. By the way of innovative product research and development, together with aggressive marketing strategies, the company has revealed itself as the favorite selling fuel treatment and additive products producer in America and Canada.

Price;

which help the company identify if people can really afford the products and what they value do they attach to it. Compare the company costs with those of the competitors are they low, high or in the middle? It is also important to identify factors that influence pricing and those that shouldn't. Relative to the kind of products this company offers their prices have been termed as fair by most of their customers in the testimonials column in that appears in their website.

Promotion

is the means by which the company let people know what the company offers. This involves advertising, public relations as well as other forms promotion. Despite the fact that promotion is vital, it is always important that promotional budgets are well planed and are fair if not excellent to the company. Lucas Oil is vastly involved in the motor sports industry, with key commitments to racing series, like the International Hot Boat Association (IHBA), the National Hot Rod Association (NHRA), and sponsorships of events like tractor pulling (Lucas Oil Pro Pulling League), off-road racing (LOORRS-Lucas Oil Off Road Racing Series) and dirt track racing (Lucas Oil Late Model Dirt Series). All these events attract multiples of spectators and media coverage and it consequently provides a way for the company to make their products widely known and also display their performance practically.

Place;

involves where, when and how people get to the product of the company. It comprises of stocking, distribution and delivery of the products to the consumers. Creative distribution is important in marketing to increase the amount of sales. Lucas Oil Products are available in many retailers in the U.S. such as Auto Zone, Napa, O'Reilly Auto Parts, PEP Boys, Advance Auto, Checker, Shucks, Carquest, Murray's, CSK Auto Parts and Kragen Stores nationwide. Despite these stores in the U.S. the company has retailers and distributors in other countries all over the world, like in Canada, China, Taiwan, Southeast Asia, Korea, Australia, United Kingdom and Poland.

Target market;

though Lucas Oil Products Inc. produces oil for all purpose their main target market is in the motor sport industry. They do sponsor a lot of motor racing events were they make use of their product. Through these events they demonstrate the power that their products have and how effective they are made for perfect working of the racing engines.

Positioning;

Lucas Oil Products, Inc. has made itself to be one of the rapidly-growing lubrication product lines in the customer automotive market industry. The constant innovative product research and development and strategic marketing have the company establish itself as the number one selling oil products manufacturer in America and Canada.

Global Events and Current Events

Despite having their headquarters in the U.S., Lucas Oil Products in addition have offer their services and products in Canada, Latin America, Europe, Australia, Asia and Ireland. On top of Lucas being is heavily involved in motor sports through sponsoring largest motor sports occasions in the country, they too produce long hours of motor sports programming in the Lucas Oil Studios (Reuters 2009).

For instance, the company is involved in a range of motor sports sponsorships, including the Official Motor Oil by the AMA Pro Motocross Championship. AMA Pro Racing is the leading professional motorcycle racing association in North America, operating a jam-packed schedule of events and championships for a range of motorcycle disciplines. The motorcycle oils and lubricants are reformulated almost every year and season and these races give Lucas Oil product a vast deal of trackside and TV exposure. Lucas is a common trackside brand at dragster racing actions in the UK and Europe, which has given the company an adventure into circuit racing in the UK (Lucas Oil Products-UK, 2009). Lucas Oil has extended its UK distribution actions in Southern England through strengthening its distributor base. They have established to provide lubricant and additive products and full technical support to independent retail store and garages in and around the counties like Kent, Sussex and Hampshire.
Race fans are seeing new vehicles with the Lucas brand in fresh events across the racing arena, from carts to saloons, monster trucks, off-road trucks, specialist drag racers and numerous F1 derivative classes in the UK. For now, business suppliers and buyers are becoming more recognizable with the Lucas lubricants and additive products range through local and international exhibitions. The Lucas Oil 'Outer Limits' group in the UK is also often featured in the Powerboat P1 championship (Lucas Oil Products-UK, 2009).

A partnership new has been formed that joins the Honda Team of Troy Lee Designs and AMA Pro MX Championship Title Sponsor Lucas Oil. The team is now known as the Troy Lee Designs / Lucas Oil / Honda Motocross Team. This alliance will join Lucas Oil in a variety of motor sports actions.

The 2009 Lucas Oil AMA Pro Motocross Championship is currently in progress with round 8 held on July 25, 2009 now in news and the rest of the rounds up in the August. There are also many other series such as Lucas Off-Road racing, Dirty Race, Maxxis EnduroCross, Pro Pulling League and Super Clean modified series.

Reference:

The McGraw-Hill Companies Inc. (2009). Lucas Oil Products, Inc. Retrieved July 28, 2009 from http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=46240

Hispanic, (2005). Lucas Oil Seeks to Knock Out the Competition with Julio Cesar Chavez Jr. Retrieved July 28, 2009 from http://www.hispanicprwire.com/news.php?l=in&id=6581

Learnmarketing, (2009). Micro Environmental Factors Retrieved July 28, 2009 from http://www.learnmarketing.net/microenvironment.htm

OxfordUniversity Press, (2007). PESTEL analysis of the macro-environment. Retrieved July 28, 2009 from http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm

Flyte New Media, (2009). Fix Your Marketing Workshops: The 6 P's -- The Building Blocks of Marketing, Retrieved July 28, 2009 from http://www.fixyourmarketing.com/workshops/sixp.htm

Lucas oil Products Inc, (2009). Products. Retrieved July 28, 2009 from http://www.lucasoil.com/products/

Lucas Oil Products-UK, (2009). news. Retrieved July 28, 2009 from http://www.lucasoil.co.uk/news.php

Reuters (2009) MavTV Joins the Lucas Oil Products Family. Retrieved July 28, 2009 from http://www.reuters.com/article/pressRelease/idUS142884+02-Apr-2008+BW20080402

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