Environmental Aspects Demographics Competition Marketing Term Paper

Pages: 13 (3281 words)  ·  Bibliography Sources: ≈ 7  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business

Their innovation strategies would be categorized as innovators in the industry. Jiffy Lube was the first chain of fast service car maintenance stations. This innovation continues with their wide range of services they now offer. Rather than resting on their laurels, Jiffy Lube continues to seek out new opportunities by expanding their services and their product offerings.

Their growth strategies include diversification and intensification. As mentioned previously, Jiffy Lube has continued to expand the services and products they offer their customers. They are constantly vigilant in seeking out new opportunities that will compliment their existing business. In addition, they seek to intensify their market positioning with new corporate owned stores and new franchises being opened each year.

Jiffy Lube's aggressiveness strategy could be classified as a builder and a prospector. Although they have a secure position in the lead of their industry, they are not content, and as such, look to continue to build their business units. Jiffy Lube is constantly prospecting for new products and services to add to their line up. Their goal is to take advantage of these new opportunities before their competitors, further securing and creating new competitive advantages.

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In light of their internal strengths and weaknesses, these strategies are very effective. They utilize Jiffy Lube's ability to service customers quickly and cost effectively, while acknowledging that there are simply areas that they cannot compete in, such as full-service mechanical repairs. In addition, these strategies also seek to take advantage of any emerging opportunities, while continuing to grow their business in such a way that wards off threats. Jiffy Lube definitely is able to implement these strategies with their given resources.

Term Paper on Environmental Aspects Demographics Competition Marketing Assignment

The market segments that these strategies cover include personal use vehicle maintenance services and products. This is a considerable segment, however, another segment may hold an even greater opportunity. Commercial and fleet vehicle maintenance is a segment that seems to not be emphasized in Jiffy Lube's strategies currently. This valuable segment could mean great revenue increases if it was fully exploited. Although they do offer fleet services, this key service is simply not marketed effectively currently. As such, this would be the only suggested modification.


There are very few clearly defined tactics for each strategy. Jiffy Lube periodically evaluates its competitors' pricing, in order to ensure that they are in a cost leadership position. They also have a team dedicated to the development and implementation of new services for their customers. This tactic is fully integrated into the corporate organization, however, the rest of the strategies do not have as clearly defined strategies. They instead are fluid, in order to take advantage of emerging opportunities.

Jiffy Lube's tactics could be more clearly in the other areas. This may have allowed them to take better advantage of the opportunity in the commercial and fleet segment.

4.0-4 Ps


The current product line for Jiffy Lube is appropriate. They specialize in vehicle maintenance services, and that is what they provide. Jiffy Lube has a wide array of services including:

The Jiffy Lube Signature Service Oil Change

A/C evacuation and recharge service

Air filtration replacement service

Automatic transmission drain and fill

Automatic transmission filter and gasket replacement

Automatic transmission fluid exchange

Automatic transmission services

Battery maintenance services

Engine cooling system services

Fuel filter replacement services

Fuel system cleaning services

Gearbox services

Light bulb replacement services

Serpentine belt replacement services

Tire rotation services

Windshield repair service

Wiper blade replacement service

AutoXray on-board computer diagnostics service

Starting and charging system diagnostics service

And, state vehicle inspection ("Services," 2004)

None of these items should be discontinued as Jiffy Lube's customer has seen them all as valuable. The one service that Jiffy Lube may consider adding is that of car detailing. Although Jiffy Lube technicians typically vacuum out a vehicle after service, full detailing would be a nice compliment to their current lineup. Detailing options could range from an automated brushless, drive through car wash option, to full exterior and interior detailing, including hand waxing.

Research on adding this particular service has not been announced, however, the Jiffy Lube team is quite secretive in what services it is investigating. This is in order to get the jump on their competitors. This ability to implement new services ahead of their competition allows them a competitive advantage.


One of Jiffy Lube's most powerful marketing strategies is their position as a low cost leader in the industry. Although Jiffy Lube's service is more expensive than the costs of materials for do-it-yourselfers, they are less expensive than most private full service mechanics, and even less expensive than other quick-service maintenance competitors. Jiffy Lube's pricing is evaluated quarterly to ensure that they are maintaining this competitive advantage.

Customers see Jiffy Lube's services as an incredible value. Their service is completed in a time saving manner at a cost efficient price. Quality, professional service is performed making it an even more exceptional value. Because of the volume of customers they service, Jiffy Lube is able to maintain profitability at industry norms, despite their lowering pricing. For these reasons, their pricing policy should not be changed.


Distribution occurs directly to the customers at each location. Although there are thousands of Jiffy Lube service facilities, more can be added to help meet the growing numbers of vehicles being added into service each year. These facilities can be especially valuable in more suburban areas as more and more drivers commute into work each day.

Other distribution channels are not particularly suitable for Jiffy Lube, however partnerships may be of interest. Jiffy Lube may wish to partner with gas stations building new facilities together. Customers would be able to fuel their vehicle and have maintenance performed at the same time. A discount may even be given with fill up, or a discount on gasoline may be given with a service performed as a marketing strategy.

Unlikely partnerships may also be of interest. A partnership with a fast food chain may be of interest as well. A facility such as Subway, where customers could grab a bite to eat while getting their vehicle service may be seen as an added value. Again, both companies could give reciprocal discounts. And, it may give Jiffy Lube the unique feature that would cause a customer to choose them over another service provider.


Advertising and promotion strategies are in place. Nationwide television commercials are shown on a variety of networks targeting a variety of demographics. The company also sponsors high visibility items, such as racecars, to help build brand recognition. These advertising and promotion strategies are minimally effective as the Jiffy Lube brand is quite strong. A more effective promotion may be to emphasize their services other than oil changes, and also to promote their commercial and fleet maintenance services. Currently, there is little measure of return on investment for the current strategies.


The organization is made up of a corporate body, corporate managed service centers and independently owned franchise locations. Marketing related activities are clearly delineated at each level, although it is not the responsibility of just one individual. The corporate marketing department develops corporate marketing plans. These plans are then implemented at the national level. Corporate and franchise locations also take part and take advantage of corporate marketing plans. In addition, independently owned franchises implement their personal marketing plans, including local advertising. This is handled differently dependent on the owner of the franchise. This is the most effective method of marketing organization given the structure.


In the end, clearly Jiffy Lube has positioned itself well in the industry. They have combined superior service, with time efficiency and low cost. Jiffy Lube has understood society's need to spend more of their free time enjoying leisure activities rather than maintaining their vehicle. By offering quick and cost efficient service, they have capitalized on this need.

Although there is competition to Jiffy Lube in the form of similar quick service facilities, more competition comes from other service providers. These competitors include full service automotive repair facilities, do-it-yourselfers, and car dealership service centers. Jiffy Lube has had to ensure that their services are not only of superior quality, but differentiated by their speediness and their cost.

It is recommended that Jiffy Lube continue their aggressive strategy of continuing to build their company by expanding their facilities and their services. Although they are one of the leaders in their industry, only by continuing to build their business will they be able to maintain their position in the marketplace. It is also recommended that Jiffy Lube pursue some new strategies to take better advantage of one particular market segment, as well as further differentiate themselves from the competition.

Jiffy Lube does currently offer fleet services, however, this is not exploited as much as it should be. This is a large segment in the marketplace, and by taking advantage of this opportunity; Jiffy Lube may dramatically and quickly increase their sales revenue. When one considers a… [END OF PREVIEW] . . . READ MORE

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