PT Pertamina Lubricant Oil

LOCAL MARKET STRATEGY

SYNDICATE 4: RACHMI, RAFAEL, RIEKE,

PRAMADONA, YUNUS, JOSEPH
The Issues
 Sales of Pertamina’s lubricant products were declined,
caused by the competitor’s increase of share
 There were competitions between other competitor’s
products
Lubricants Industry in Indonesia
 2004 : Indonesia had a market volume of about 493
million of lubricants
 Motorcycles or 2 wheelers have a larger population
 Liberalized market turning Indonesia into an attractive
center for lubricant sales
 Pertamina commands 52,3% of market share in 2007
The Competitors
 Trailing in the second spot was Top 1 (11% market share)
 The other 34% split among various lubricant brands:
Pennzoil, Shell, BP, Castrol, Evalube, Agip, Motul, etc.
Pertamina Lubricant
 Pertamina still leads domestic lubricant market
 In 2008: Pertamina launched new Lubricant for
automotive and industrial usage
 Pertamina lubricant quality has been proven and
recognized internationally
 Pertamina’s products : Enduro, fastron, Mesran, etc.
 More than 17 brands are now available for domestic retail
market, while 18 others are available for industrial market
Distribution
 There are 4 kinds of distribution patterns conducted by
Pertamina:
 Gas station
 Pertamina olimart
 Lubricating Agent
 Consumer Direct
 Pertamina operating 7 marketing regions, 180 distributors,
45 olimarts, widely spread all over Indonesia
Sales and Promotion
 Directly through dealers and gas station
 Personal sellling : face-to-face with prospective buyers
 Sales promotion
 Participate in exhibition
 Sponsors rally and sport activities
 Above the line and below the line activities
Lubricant consumption

Motorcycle oil’s
consumption have
rapid growth.
Contributing 50% of
oil consumption for
automotive sector

Oil consumption sfor

automotive sector have
positive growth tendency,
contributing over 50%
towards oil consumption
in automotive and industry
 product price place promotion

 Oil used for  Competitive  Pertamina  Directly through

dealers and gas
passenger car, price compred operates 7
station
bus, truck, to other marketing
 Personal selling :
regions, 180
motorcycle and similar oils face to face with
distributors, 45 potential buyer
industry with olimart, spread  Sales promotion
proven quality all over  Create gathering
and recognized Indonesia dan events with
internatinally customers
 Distribute it
 Exhibitions and
 The products are through Gas sponsor many
such as : Fastron, station, activities
Prima XP, Pertamina  Above the line
Olimart, and below the
mesran, Enduro, line activities
Lubricating
etc.
agent and
Consumer direct
 How to increase market share
The first focus is on the motorcycle segment. Share of
consumption of oil for motorcycle was >50%

▫ Doing partnership with motorcycle dealers, that all

new motorcycles should use pertamina’s lubricant
▫ Doing pertnership with motorcycle garage, and have
them advice the customer, the best product is
pertamina’s products
▫ Create gathering involved authorized motorcycle
dealers and motorcycle garage to strengthen
positioning of pertamina’s products
The second focus was in passenger car segment.
Usually owned by a company (PO), so it will be
easy for Pertamina to promote their products

▫ Doing partnership with PO, create their loyality to use

national product with special price
▫ Doing partnership with passenger car garage, advise
them that the best product is pertamina’s products
▫ Create gathering that involved PO and passenger car
garage to strengthen positioning of pertamina’s
The third focus was in industrial segment

▫ Doing partnership with companies, create their

loyality to use national product with special price
THANK YOU