Pennzoil LongLife

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Pennzoil Long-Life

• 2nd Brand Strategy Discussion

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Content Overview

• Long-Life Sales Information
• Long-Life MacKay Study Info
• Long-Life Marketing Programs
• Long-Life Marketing Materials
• Brochures
• Pamphlets
• Sell Sheets
• Next Steps

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Long-Life Sales Information

• Volume trend, sales by channel, top 25s

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Long-Life Customers

• 4,925 Active LL Customers
• Total LL Volume YTD (7/04) 6.8 MM Gals
• 20 of Customers (985 active customers) account
  for 6.2 MM Gals YTD
• Top 25 Customers Acct. For 38 of LL Volume
  (2.6MM gals)

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3 Year Long-Life Volume Overview
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Sales By Channel
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2002 2003 2004
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Top 25 Long-Life Customers - 2004(gallons)
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The Next 25 Long-Life Customers (26-50) (gallons)
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The Third 25 Long-Life Customers (51-75) (gallons)
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Top 25 End User/Comm Trans (COT 17) (gallons)
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Top 25 Distributors (COT 2, 48, 49) (gallons)
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Top 25 HD Installer (COT 15) (gallons)
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Top 25 Automotive Installer (COT 14) (gallons)
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Top 25 Retailer (COT 13) (gallons)
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Top 25 General (COT 9) (gallons)
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MacKay Information
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Only 10 of the Medium/Heavy truck segment
preferred Pennzoil. Owner Operators preference
of the brand was just under 3. For Hire
Carriers preferred Pennzoil, 57.4 On the flip
side, 500 fleets preferred it in 2003 at 67.
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Current/Most Recent LL Programs
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Long-Life Lube Center Advantage2002

• Target HD Installed locations (Class 5-8
  Trucks)
• New or existing quick lube locations
• Truck stop service bays
• Service depts. W/in dealerships
• Number enrolled in program ???
• Currently supporting???

• Offerings
• Site analysis/facility design
• Financial consultation
• Economic business modeling
• Business mgmt. consultation
• Training
• Signage promotional materials support
• Advertising support
• Corporate acct. selling support
• Long-Life Center Quality Certification Program

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Long-Life Incentive Greeter Program

• Targeted to HD Installed channel
• Can implement for two non-consecutive 60 day
  periods w/minimum of 30 days between periods
• You get monthly work order recap sheets, payment
  summary sheets, tracking poster, letter
  explaining forms
• Checks sent out monthly
• 5 awarded for every qualifying oil change (paid
  monthly)
• Performance
• 12 sign-ups YTD in 2004
• Total of 1,040 paid out YTD
• Cost of program (mgmt., etc)?

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Backup Info. On Greeter Program
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Get Ready for Fall Harvest

• DIY Consumer targeted
• Buy specified LL products and gets 5 rebate
• Support materials
• Counter card
• Tear pad
• Ad slick

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Get Ready for Spring Planting

• DIY Consumer targeted
• Buy specified LL products and gets 5 rebate
• Support materials
• Counter card
• Tear pad
• Ad slick

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Heavy Duty Truck Installer Program

• Available to lube centers w/70 business in
  sale/repair of vehicles Class 5 or over
• Accrual fund to help offset marketing expenses
• Long-Life 15W-40 in bulk earns credits
• 0.30/Gallon
• Grand Opening Program
• Targeting new Pennzoil customers
• 0.25/gallon accrued on purchases during any 30
  day window during first 180 days of business
• Max. credit of 1,500
• Credit must be spent on themed Grand Opening
  materials

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Transport Marketing Retail Program

• New Product Allowance Program
• Available to retailers (Pennzoil direct and
  distributors retailers) who have not purchased
  LL in previous 12 months
• 0.75/gallon allowance on LL 15W-40 in 4/1gallon
  cases
• LL Retail Display Program
• Receive additional 0.25/gallon for displaying LL
  oil in above package
• LL Stack Out or End Cap Promo
• Given if retailer agrees to do stack out during
  each of the two LL promos in 2003
• 0.50/gallon
• Agricultural Program
• Geared to support 3 categories of product
• LL HDEO
• Tractor Fluid
• AW Hydraulic Oil
• 0.12/gallon for one of 3 categories purchased
• 0.24/gallon if 2 of 3 purchased
• 0.36/gallon if all 3 purchased

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The Long-Life Installer Program Through
Distributors

• For every gallon of LL 15W-40 distributor buys,
  0.04 accrued in ACB fund
• This fund is designed for distributor customers
  who are RESELLERS
• 100 of funds can be used for advertising
• 50 can be used for materials (trinkets/trash)
• How many are enrolled who are they?
• Total cost where is it hitting?

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Distributor ProgramsTransport Development Fund
(active)

• TDF targeted to help distributors grow sales of
  Pennzoil Transport products
• Expenditures approved through local sales rep and
  DM
• Processed through ACB
• Items based on approval

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Long-Life Marketing Materials

• Brochures

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Long-Life Marketing Materials

• Product Lists By Segment

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Long-Life Marketing Materials

• Misc. Pamphlets

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Long-Life Marketing Materials

• Sell Sheets

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Areas of Focus?

• Re-build Brand Awareness in 2005
• Media, Grass Roots Mktg., Acct. Specific Activity
• Focus on Following Areas
• Distributors
• Fleets Construction
• LDD
• Generate confidence in brand
• Leverage Consumer Brand Spend

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Next Steps

• Work with David Robinson Patty on brand plan
  for LL
• Develop Media Brief for JWT
• Update materials for National Sales Meeting
• Work together to set keys to success in channels