GLOBAL

EDITION Issue 04 | OCTOBER 2010

CASTROL
PROFESSIONAL Marketing Welcome!

NEWS viewpoint We are in the middle of

our planning and investment process for
2011. It is critical that our key markets
by Polly Flinn have a robust marketing plan, so that our
OEM businesses continue to grow in a still
challenging economic environment.
The memories of the FIFA World Cup™ 2010 may be fading, but the positive
effects are still being felt. The Lubricants SPU gross margin growth has been Globally, we will continue to invest in our
strong this year to date and we achieved better than expected results in our key strategic partnerships, strengthening both
Castrol ‘brand health’ measures. our technology and offer pipelines. One
While the industry category has been flat, This re-launch of the product portfolio major project is the Castrol Professional
Castrol has improved its brand measures, includes the launch of a new brand across our re-launch and, while we’re still months
including awareness, preference and loyalty, OEM Franchised Workshop (FW) space, away, I would like to take this opportunity
year on year. Let’s continue this momentum the first for many years. to thank the project team for their hard
into 2011! work, innovation and energy. It has

ISSUE CONTENTS Our growth strategy can be summed up in

The new products are a win for our OEM
FW customers and their consumers,
carried us to the great position we
are in today.
one word – premiumisation - concentrating providing even more exclusive features for
> MARKETING VIEWPOINT 01 on those consumers/customers who are the workshops, plus new, stronger consumer The Castrol Professional Brand Centre
> WELCOME willing to pay a premium. benefits. New tools such as the B2B will also be re-launched in 2011, allowing
segmentation and demonstration kits easier access to all the materials you need
For almost two years, we have focused on our will help support our sales teams. to manage OEM programmes and ensure
> Castrol supports Mazda WITH RECALL 02
‘Day After the World Cup’ plans. One of the their confidence in our brand.
> Volvo tests Castrol knowledge key programmes is the re-launch of Castrol Be on the look out for more news and
Professional in early 2011. information as we get closer to the launch. 2010 is shaping up to be a strong year
> Business boom in the Middle East 03 for the OEM space, so while we have one
> Volvo’s green racing at Brands Hatch eye on the exciting initiatives in 2011,
> NEWS IN BRIEF let’s end this year on a high note.
Castrol’s brand equity
is stronger than average Mike Jones
> Joint promotions fOR Russia & Germany 04 globally, and it’s growing OEM/FW Global Marketing Director
> OEMs practice safer driving while the category
remains static.

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 Issue 04 | OCTOBER 2010

Castrol supports Mazda

with safety recall Volvo tests Castrol
As an extension of their United States (US) Castrol
motor oil programme, Mazda selected us to support
knowledge
them with their Power Steering recall, which is The global Volvo after-sales championship, ´VISTA´, held a successful
currently ongoing and affecting over 215,000 event from 23 to 27 of August in Gothenburg, Sweden. At the event
vehicles across the US, Mexico and Puerto Rico. Castrol sponsored a half day ‘Football Kicker Tournament’. From 32
countries, 160 VISTA winners enjoyed this sport experience.

Through extensive compatibility testing at Mazda Japan,

our Domestic Multivehicle Automatic Transmission Fluid
product has been chosen as the ‘flush’ fluid and is being
delivered to 650 dealers during the eight to ten month
campaign which began in June 2010.

Many logistical challenges have been successfully

overcome by our OEM team. Not only have they ensured
we could commit to producing an initial £265,000 worth
of the fluid, our Supply Chain did an ‘outstanding’ job
of sourcing additional volumes in light of the tight US
base oil market. All 650 dealers have been entered into VISTA runs every two years with more than technology to service and training. These
our system and 103 distributors assigned to order and 16,000 Volvo employees participating. kinds of sponsorship programmes will
warehouse the product to ensure that dealers keep help to ensure that Castrol remains in pole
receiving it when and where they need it. This campaign The run up to the event started 12 months position.
should deliver around 1.3 million litres of new business ago when participants had to answer
for Castrol US, which will drive approximately $1.2M of questions about our products, plus parts Castrol and Volvo have a long history of
and customer service, designed to improve promoting the partnership through their
additional Gross Margin to the business.
the dealer network’s knowledge of modern dealer networks. Volvo recommends the use
lubricants. The most successful dealership of our engine oils for all their cars in first fill
Ross Tomberlin, OEM Business Development Manager, commented “Due to the complexity and and service fill.
service advisors and technicians were invited
timing, this project magnified the incredible professionalism and expertise of our team. Although we to the final event in Gothenburg.
were faced with short deadlines and new system integrations, everyone involved stepped up to support And Castrol is often featured in the
our global OEM partner in this challenging project.” This is an excellent example of the wide regular “Volvo Master” magazine, which is
scope of our strategic partnership with translated into 14 languages and distributed
Mazda’s programme with Castrol in the US already has over 175 dealers using our oil. The campaign Volvo, which covers everything from internally globally.
offers opportunities in the States’ other territories.

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 Issue 04 | OCTOBER 2010

Business boom in the Middle East Innovation with e-marketing

Our teams in the Middle East have secured new contracts in Abu Dhabi and Iran.
Abu Dhabi Motors is the fastest growing
importer of BMW and MINI in the Middle
East and it’s an authorised Rolls-Royce
dealer. Castrol signed a five year contract
in May 2010 to supply 75,000 litres of fully
synthetic SLX oil to the company’s state of
the art Umm Al Nar parts assembly facility.
Now, we have started to supply its sister
site, a Quick Service Centre in Mussafah.
This centre houses an expansive showroom
dedicated to BMW and MINI vehicles,
as well having a BMW parts and
accessories department. History was made
in Iran when Peugeot agreed a partnership
with Castrol at the start of the year.
While we do not have any global tie-up with
Peugeot, we are proud to be the special
exception powering the Peugeot 206, Pars
and Samand (Modern Engine) factory fill
business, opening up sales of potentially
two million litres. In addition, owner’s
manuals and engine stickers include our logo.
“History was made in Iran when
Peugeot agreed a partnership with
Castrol at the start of the year...”
Previously the factory had only been
endorsed by TOTAL and we now share
50 per cent of the business with them.
16 Franchised Workshop customers from different OEMs took part in
our first e-marketing workshop at a golf club in Cologne, Germany
on 16 September. Part of the Professional offer in this country
and led by Frank Rasche, OEM Franchised Workshops - Marketing
Activation, the programme demonstrated the advantages
of modern electronic communication in a relaxed atmosphere.
Lubricants partner of choice
for exclusive dealership
On 22 July, Castrol Singapore was proud and delighted to
be announced the lubricants partner for Munich Automobiles,
the world’s first exclusive
BMW M-Series dealership.
BMW is now shifting away from
sole dealerships and wants to
reposition their premium marquee
M-series range to compete
with brands like Ferrari and

Volvo’s green racing Lamborghini globally.

at Brands Hatch Mazda approves SLX in Japan

Volvo’s environmentally friendly C30 car took part in the World
Touring Car Championship (WTCC) race at Brands Hatch in
Swanley, England on 18 July 2010.
The Castrol sponsored, bio-ethanol fuelled car, driven by
Robert Dahlgren, completed a successful race at Brands
Hatch, finishing in 12th position. This type of fuel offers
many benefits including reduced greenhouse gas emissions,
plus it is biodegradable.
It’s proved to be a busy year for the C30; it has also featured
in the 2010 Swedish Touring Car Championship, which
ends this month. It is yet to be confirmed but Volvo may be
Two Castrol SLX Professional full-synthetic products, 5W–30 and
0W–30, were launched in May to the Mazda Franchised Workshop
space in Japan and are now making
their presence in more than 400
joining the 2011 and 2012 WTCCs which already include our franchised workshops.
partner OEMs BMW and SEAT. It will appear again for the
Championship at the Okayama International Circuit in Japan It is the first time Mazda have globally
on 31 October. approved non-genuine oil brands and
we plan to promote these as top-end
Other highlights for Castrol at Brands Hatch were our options to their aftermarkets in other
sponsored drivers Andy Priaulx for BMW and Gabriele countries during deployment.
Tarquini for SEAT finishing first and third respectively in the
second race of the double header event.

3

Joint promotions fOR
Russia and Germany
Russian and German OEMs have joined forces to take part in successful
promotions this year with the overall winners from each country getting
the opportunity to meet the footballer Cristiano Ronaldo in Madrid.
In Russia, the launch of Magnatec Professional A1
to the Ford dealer network was supported by an
integrated promotion which ran from March
until August, and included a sales competition
for service managers and advisors to win a trip
to the World Rally Championship, Wales, plus a
prize draw giving drivers who choose Castrol a
chance to meet Ronaldo.
The promotion was supported by 40 per cent
of Ford dealers in the country and got massive
publicity coverage in car related media.
As part of the promotion, Ford Russia introduced
a premium service package with Castrol oil
and included a promotion in their Summer
aftersales campaign. We expect 100,000 litres
of our products will be sold in 2010 to the
Ford dealerships in Russia as a result.
“In total, 612 dealers took part in the
promotion, which finished in July...”
In Germany, strategic OEM dealerships took
part in the ‘big Castrol Ronaldo promotion’ by
carrying out a Castrol branded ‘safety checklist’
then passing the checklist on to customers.
This resulted in recommendations from
Volkswagen, Ford and Volvo. It was a huge
success for us and the OEMs as it gave a
reason to contact current customers and also
encouraged new ones.
Prizes for both dealers and end-consumers
in Germany included FIFA tickets, flatscreen
televisions and Playstation 3 games consoles,
as well as the trip to meet Ronaldo in Madrid
in November. In total, 612 dealers took part
in the promotion, which finished in July, and
thousands of customers were reached.
OEMs practice safer driving
Twice a year, Castrol Australia invites 24 OEM guests to BMW Driver Training Days
where they experience the fun of driving at the best race circuits in the country.
This year’s second event took place on
24 August at Eastern Creek International
Raceway near Sydney.
Initially, participants learn safer driving
techniques, including steering control and
emergency braking. These are then put
to the test on the circuit, with an aim to
improve concentration and awareness. The
August event allowed the guests to practice
in the BMW 123d, BMW 323i and BMW
M3 models.
The course is professionally run by the BMW
team and chief instructor David Brabham has
a wealth of experience, gained from years
of competing successfully in international
motorsport. He is also the son of three-time
Formula One World Champion Jack Brabham.
Issue 04 | OCTOBER 2010
“The events are a fantastic way to spend
a whole day building our relationships and
trust with valued clients while they learn
about safer driving. One dealership owner
even bought a racing car afterwards as
he had such a great time,” says Andrew
McGrath, OEM Business Development
(Castrol Lubricants).
The previous session took place on 23 July at
the Phillip Island track which is renowned for
its stunning ocean views. Castrol has been
holding these events since 2002.
“The events are a fantastic way
to spend a whole day building
our relationships and trust with
valued clients...”