Originally Posted By: AndyH
Sorry, I should have been more clear. I was wondering how you determined that the marketing campaign was a 'disaster'. Just because shelf-space at your local Walmarts was reduced for Castrol Edge does not equal a failed marketing campaign, IMHO.
My comment was based on the many people on this forum who asked Walmart employees if the product is selling, and the universal response that it is not moving well at all. It was also based on my observations of shelf space allocated to Edge in the last few weeks (shelf space is everything in retail) and my discussions with local Walmart employees (in a fairly affluent area).
Even with only one position for the Edge 5w30 5-quart container and one shelf position for 10w30, I have never seen anything less than a fully stocked shelf at my Walmart for Edge. Meanwhile, they are frequently out of stock or near out of stock on many versions of Mobil 1 at the same store.
Then there is fact that they are dropping the price to $25 from $34 in some locations, and some Walmart's no longer carry it.
Don't get me wrong, I suspect Edge is a very good product, but it was ridiculously priced in 5-quart containers against M1 and Mobil 1 Extended Performance. Also, the fact that they don't have a 5W-20 yet in the US is major mistake IMO for a product launch. People who willing to spend that much money on oil typically have newer cars that spec 5W-20.
Fortunately for me (a BP stockholder) BP made a profit of $25.6 billion in 2008, so wasting $25 million in marketing is less than 1/10 of one percent of their 2008 net profit. They waste a lot more than that on those silly "Beyond Petroleum" ads, as if that increases their profit one iota (it doesn't). Oil companies feel like they have persecuted over the years (there may be some truth to that) and they want to be loved like everyone else, and they believe that money can buy you love.