Report: Oil Change Retail - US

Scope and Themes
What you need to know
Definition
Data sources
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
Executive Summary
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
Market Size and Forecast
Key points
Oil change retail market falls hardest in 2010 but picks up past recession
- 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
Dealerships strengthen service component, threatening oil change revenue
- Figure 3: U.S. new car dealerships, 1987-2008
Fewer miles traveled may create less reliance on oil changes, maintenance
- Figure 4: Consumer vehicle miles traveled, all U.S. roads and streets, 1998-2008
Industry doubling suggested miles driven requiring oil changes, check-ups
- Figure 5: Factory recommended miles for oil changes, per vehicle brand, December 2007
Market Drivers
Car sales plummet as consumers maintain older cars, benefiting oil change
- Figure 6: Total sales at new car dealerships, at current prices, 2003-09
New vehicle sales dominate, but losing slight market share to used
- 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
Key points
Oil Change-Plus operators control 69% of market; fast lube chains 30%
- Figure 8: Top U.S. oil change retailers, by store units, March 2009
- Figure 9: Top U.S. oil change retailers, by store units, March 2009
Segment Performance--Oil Change-Plus Shops
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
- Figure 10: Top 50 U.S. oil change-plus chains, by store units, March 2009
Segment Performance--Fast Lube Chains
Key points
Overview
Jiffy Lube transitions from speed, convenience to preventive maintenance
- Figure 11: Top U.S. fast lube chains, by store units, March 2009
Segment Performance--Associated Chains
Key points
Overview
- Figure 12: Top U.S. associated chains, by store units, March 2009
Innovation and Innovators
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
Mobile phone applications, promotions direct consumers to lube outlets
- 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
- Figure 14: Lube Stop ad, 2009
- Figure 15: Jiffy Lube ad, 2009
Preventative maintenance message used to offset gas prices, recession
- Figure 16: Jiffy Lube Signature Service ad, 2009
Engine warranty promoted as incentive for regular oil changes
- Figure 17: Valvoline ad, 2009
Oil Change Retail--Preference
Key points
Youngest respondent households earning are least likely to own car
- 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
- Figure 19: Oil change preference, by gender, April 1-14, 2009
Younger respondents more than oldest least likely to pay for oil changes
- Figure 20: Oil change preference, by age, April 1-14, 2009
Divide in household income not as relevant in determining pay, self-service
- Figure 21: Oil change preference, by household income, April 1-14, 2009
Oil Change Retail--Frequency
Key points
About half of respondents change oil every three months as recommended
- Figure 22: Oil change frequency, by gender, April 1-14, 2009
Those aged 35-44 are most invested in changing oil every three months
- Figure 23: Oil change frequency, by age, April 1-14, 2009
Higher earning households uniform in changing oil more consistently
- Figure 24: Oil change frequency, by household income, April 1-14, 2009
Oil Change Retail--Segment Preference
Key points
Oil change outlets, car dealerships equally preferred by respondents
- Figure 25: Oil change segment preference, by gender, April 1-14, 2009
As respondents turn 55, they shift from oil change outlets to dealerships
- Figure 26: Oil change segment preference, by age, April 1-14, 2009
Wealthiest respondents more likely to use dealerships, less use mechanics
- Figure 27: Oil change segment preference, by household income, April 1-14, 2009
Oil Change Retail--Brand Preference
Key points
Jiffy Lube most preferred among respondents; Walmart is second
- 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
- 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
- Figure 30: Oil change brand preference, by household income, April 1-14, 2009
Oil Change Retail--Reason for Choice
Key points
Routine, quality of work equally responsible for bringing consumers back
- Figure 31: Oil change reason for choice, by gender, April 1-14, 2009
Older respondents motivated most by quality, routine than youngest
- Figure 32: Oil change reason for choice, by age, April 1-14, 2009
Oil Change Retail--Service Choice
Key points
Belt-tightening resulting in respondents preferring basic service the most
- Figure 33: Oil change service choice, by gender, April 1-14, 2009
Gap between oil change services narrow as respondents age
- Figure 34: Oil change service choice, by age, April 1-14, 2009
Wealthy more inclined to get basic service than more expensive full
- Figure 35: Oil change service choice, by household income, April 1-14, 2009
Oil Change Retail--Aftermarket Activity
Key points
Aftermarket items a tough sell in recessionary times; 60% not interested
- Figure 36: Oil change aftermarket, by gender, April 1-14, 2009
Least wealthy households most likely to purchase aftermarket items
- Figure 37: Oil change aftermarket, by household income, April 1-14, 2009
Oil Change Retail--Consumer Spend
Key points
Consumers spending between $30-50 in total at oil change outlets
- Figure 38: Oil change consumer spend, by gender, April 1-14, 2009
Those aged 18-24 are spending the most at oil change outlets
- Figure 39: Oil change consumer spend, by age, April 1-14, 2009
Race and Hispanic Origin
Key points
Hispanics show potential growth for marketing oil change service, repair
- 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
- Figure 41: Oil change frequency, by race or Hispanic origin, April 1-14, 2009
Hispanics most prefer oil change outlets; blacks prefer dealers most
- Figure 42: Oil change segment preference, by race or Hispanic origin, April 1-14, 2009
Hispanics value personal recommendations more than blacks, whites
- 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
- 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
- Figure 45: Oil change consumer spend, by race and Hispanic origin, April 1-14, 2009
Appendix: Other Useful Consumer Tables
Reason for choice and household income
- Figure 58: Oil change reason for choice, by household income, April 1-14, 2009
Aftermarket purchasing and respondent age
- Figure 59: Oil change aftermarket, by age, April 1-14, 2009
Consumer spend and household income
- Figure 60: Oil change consumer spend, by household income, April 1-14, 2009
Brand preference and race and Hispanic origin
- Figure 61: Oil change brand preference, by race or Hispanic origin, April 1-14, 2009
Oil change service choice and race and Hispanic origin
- Figure 62: Oil change service choice, by race and Hispanic origin, April 1-14, 2009
Appendix: Trade Associations

Oil Change Retail - US - August 2009