Halfords owned a motor oil brand that was not selling well in the 1990s due to being poorly valued by customers. Pentagram was commissioned to redesign the product. Their research found consumers had low oil knowledge and often bought the wrong type. The new design featured a "pull-up teapot pouring spout" for easier pouring and clearer labeling of oil types. Sales increased 18% in volume, 44% in value, and 54% in profits after one year with the redesigned packaging and labeling helping reposition Halfords oil as a more premium brand.

1. WBB 10202 - INNOVATION MANAGEMENT
HALFORDS MOTOR OIL
redesign and re-branding of an existing product
Prepared by:
Mohd Syahmi Nuruddin
Mohd Khairul Najmi Najid
Alif Izamie Osman

2. Introduction
 A leading retailer of car parts, cycles and accessories in
UK.
 1.2 million customers every week.
 Around 12,000 product lines.
 Annual turnover of in excess of £500 million.
 Own brand of motor oil in 1990s but did not sell well.
 Not highly valued by customers.
 The company set out to in investigate.

3. Company History
 1892 – Founded as local hardware store in Birmingham
by F.W. Rushbrooke.
 1965 – Halfords Limited.
 1969 – open its 300th store.
– become part of the Burmah Group.
 1980 – changes; recognizing customers’ needs.
 1984 – changes of ownership 1 (Ward white Group).
 1989 – change of ownership 2 (The Boots Company).

4. Company History
 2000 – Rod Scribbins became MD.
– ‘Arcade’ superstore programme (Bikehut, Audio
Parts, Ripspeed and Touring).
 2002 – Acquired by CVC Capital Partners from The
Boots Company .
– Rod Scribbins appointed CEO.
 Until today – the business moved to a custom-built head
office and warehouse in Redditch,
Worcestershire.
 Head office employs 600 people, with 400 stores with
total staff of 9,000.

5. The problem
 Why the not motor oil?
 How Halfords saw this as a business opportunity they
wished to exploit?
 Was there something particularly unusual about motor
oil?
 Who were the competitors?
 What were the other brands?
 Was this a market in which Halfords could be
competitive?

6. Design Brief
 Did not have sufficient expertise in-house to tackle the
task of exploring the task of re-branding and repackaging
a major product.
 Commissioned Pentagram (international design group)
with a brief to redevelop the motor oil brand.
 Involved redesigning the container, re-labeling, and
repositioning it in the market.
 Product design expertise rarely found in-house
 Such projects commonly contracted to third-party
experts.

7. Research
 Pentagram undertook its own market research on
retailing motor oil and undertook a series of in-depth
interviews with consumers in the form of focus group to
try to uncover some of the issues surrounding motor oil.

8. Finding from Pentagram
 Overall decline in sales as modern cars require less
servicing and less frequent top-ups and changes.
 Premium grade motor oils rather than standard grade
becoming more prevalent.
 The industry is dominated by some of the largest firms in
the world (most notably the world’s oil companies).
 The ‘flashy’ Grand Prix-style branding gives no help for
consumers to select the correct oil.

9. Brand leaders in Europe
 BP and Castrol.
 Shell Oils.
 Exxon (Esso) Mobil.

10. Purpose of Engine motor oil:
 Lubricant of the moving engine parts to prevent wear.
 Reducing friction.
 Maintaining engine cleanliness.
 Protecting against engine rust and corrosion.
 Cooling engine parts.
 Sealing combustion gases.
 Permitting easy starting.
 Extending engine life.

11. Different types of engine oil
 There are different types of engine oil and consumers
have to pick the oil is the best for their own usage and
application.
 They have to choose an oil depending upon how they
use their car, and the outdoor temperature they are
driving in.

12. Outdoor Temperature
 As the temp. changes, the viscosity of the oil changes.
 When oil in an engine is cold, the oil will be thick.
 If it is too thick, it may not even allow the engine to turn
over and start.
 If it is too thin, it may allow the engine to start but it could
be too thin when the engine warms up to do its work
properly.

13. Viscosity measurements
 The Society of Automotive Engineers (SAE) established
a viscosity classification on top of oil cans for consumers
awareness.
 5W – very thin oil used in extremely cold weather
conditions, up to…
 50 – very thick oils that have specials uses such as very
hot applications or racing engines.
 Most people use a multi-graded oil that covers the
highest and lowest temperatures that will be
encountered.

14. SAE Viscosity grade
 Was useful and helped Pentagram paint a picture of the
product, the brands and the market.
 50% of cars required premium grade oil
 70%of sales was standard grade.
 Many consumers were not buying the correct oil;
moreover Halfords was not selling its most profitable
lines.
 Many motorist did not buy motor oil and left this to the
annual service of their car.

15. Motor Oil Buyers
 DIY enthusiast – regular motor oil purchaser
which undertook their own servicing of their
vehicle.
 DIY part-timer – did not service their own
vehicle but regularly checked their vehicle and
would top-up their engine with oil if necessary.
 Emergency – only purchased oil in an
emergency.

16. Research Conclusion
 DIY enthusiast is the group that most likely to
purchased the Halfords store brand.
 This group armed with more knowledge that
would make their purchase decision based on
performance and price.
 However the price itself would be sufficient
 There needed to be additional qualities that
would convince the DIY enthusiast to select the
Halfords brand ahead of the branded oils.

17. Consumer testing
 The price was a significant factor in the decision-
making process.
 They have low knowledge about the properties
and performance of motor oil.
 Many were buying incorrect oil for their car.
 Halfords brand hold up well under analysis and
regarded as a trusted brand.
 Consumers feel leading manufacturer brands of
oil are expensive, yet only few tried it.

18. Consumer testing
 Problems with pouring a heavy 5-litre container.
 The only way to determine how much oil was in
a can was to lift it up and feel the weight.
 So, if the Halfords brand can solve the pouring
problem and make it simple, provide a viewer for
oil level and offer some better info and labelling
regarding properties and performance, maybe
this would encourage people to try Halfords
brand.

19. New packaging
 The problem seemed to center on the inability to
accurately direct the flow of oil
 Designers developed
the ‘pull-up teapot
pouring spout’.
 A ring tab is pulled,
revealing a long neck
about 50cm in length,
giving sufficient direction
in pouring.
 Improve direction of
flow.

20. New packaging
 The handle for the container is in line with the spout,
helping
to direct the
flow of oil.

21. New packaging
 Labeling issue solved:
 A premium-grade oil for most 16-valve petrol engines.
 A diesel grade for diesel engines.
 A standard grade.
 Offered in three different colors.
 After one year, volume of sales increased by 18%, its
value by 44% and profits by 54%.

22. Discussion
 This case clearly illustrates the value of packaging and
labelling in product development.
 The motor oil remained unchanged, but the packaging
and labelling was considerably altered, enabling
Halfords to reposition its oil as a slightly more upmarket
store-brand oil.
 Initial sales were very encouraging and if copying is
viewed as a form of flattery then Halfords is surely
content.

23. END OF PRESENTATION
Thank you for your attention!!!