PT Pertamina Lubricant Oil

LOCAL MARKET STRATEGY

SYNDICATE 4: RACHMI, RAFAEL, RIEKE,
PRAMADONA, YUNUS, JOSEPH

The Issues

Sales of Pertaminas lubricant products were

declined, caused by the competitors increase
of share
There were competitions between other
competitors 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
Pertaminas 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 oils
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

Oil used for

passenger
car, bus,
truck,
motorcycle
and industry
with proven
quality and
recognized
internatinally
The products
are such as :
Fastron,
Prima XP,
mesran,
Enduro, etc.

price
Competitiv
e price
compred to
other
similar oils

place
Pertamina
operates 7
marketing
regions, 180
distributors,
45 olimart,
spread all
over
Indonesia
Distribute it
through Gas
station,
Pertamina
Olimart,
Lubricating
agent and
Consumer
direct

promotion
Directly
through
dealers and
gas station
Personal
selling : face
to face with
potential
buyer
Sales
promotion
Create
gathering dan
events with
customers
Exhibitions
and sponsor
many
activities
Above the line
and below the
line activities

How

to increase market
share

The first focusison themotorcyclesegment.Shareof

consumptionof oilformotorcycle was >50%
Doing partnership with motorcycle dealers, that all
new motorcycles should use pertaminas lubricant
Doing pertnership with motorcycle garage, and have
them advice the customer, the best product is
pertaminas products
Create gathering involved authorized motorcycle
dealers and motorcycle garage to strengthen
positioning of pertaminas 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 pertaminas products
Create gathering that involved PO and passenger car
garage to strengthen positioning of pertaminas

The third focus was in industrial segment

Doing partnership with companies, create their
loyality to use national product with special price

THANK YOU