Business Competition

on Lubricants
(Pertamina Case)
Kuspratama (29113021)
Karina Ramadhani (29113033)
Made Rai Laksmi (29113146)
Nenden Watnasari (29113143)

History
Indonesia government issued Oil & Gas Law No. 22/2001,
this is the end of monopoly era for pertamina in oil & gas
industry.

In September 2003; Pertamina become PT Pertamina
following the Government Regulation No. 31/2003

In December 2005; PT Pertamina change the logo from sea
horse into 3 arrow shape logo

In December 2007; PT Pertamina announce his new vision
To Become Class National Oil Company
Business Activity
Pertamina activities can divided into two main business which
consist :

Upstream Business : its covers exploration and production
of oil, gas and geothermal business, which the activity of
this operation run with partner business model like Badan
Operasi Bersama (BOB)

Downstream Business : its cover crude oil refining into the
several product of oil (fuel & non fuel) and the distribution
of the product all arround the region
Lubricant Market Overview
Motorcycles is the largest market share in the lubricant market
share in Indonesia

In 2005 there were arround 260 lubricant brands circulate in
Indonesia from local brand to the foreign brand

Pertamina owned 55% of market share lubricant in Indonesia

The second follower of Pertamina is Top 1 which owned 11%
of total market share

Picture of Competitors
1. Top 1 (Spend 15% of revenue to the promotion cost)

2. Pennzoil (Doing aggresive promotion just like Top 1 and
introduce Evalube which target specific user segments)

3. Shell (launch various high end product especially for two
wheeler segment)

4. Castrol (Same like Shell while using Celebrity as a high
profile marketing campaign)


Pertamina Lubricant
In order to maintain the market share, Pertamina improve its quality
product, production line, channel management, and professional
manner to meet customers needs.

More than 17 brands are now available for domestic retail market,
while 18 others are available for industrial market

Pertamina Lubricant won Customer Satisfactions Award (ICSA)
2007 for satisfy his customers and then two of Pertamina Lubricant
(Prima XP & Mesran) won Top Brand Award

Marketing Mix

Selling lubricant
used by
personal car,
bus, truck,
motorcycle and
industrial
machinary with
various quality
product
Pertamina
offered
competitive
price if
compared with
world class
brand
Distributing the
product through
:
1.Gas Station
(SPBU)
2. Pertamina
Olimart
3. Lubricating
Agent
4.Consumer
Direct (Industry
Scale)
1.Convince the
owner of the
service station
to use
pertamina
lubricant
2. Direct selling
to the personal
buyer
3. Make an
event or
exhibition
4. Becoming of
sponsor racing
event

SWOT Analysis


Relatively easy to sell product because the big
name of the Pertamina
Has a good history for quality service to the
customers
Own high capital to invest in the marketing
strategies
Has many selling point all over in Indonesia


Waste production resulting a highly harmful to the
surrounding community
processing of the crude oil (raw material for lubricant
oil) was carried out by foreigners companies
Due the raw material of lubricant still imported, the
price depend on the fluctuation of world oil price


Opportunities to compete both in regional and
international scale on lubricant competition,
due Pertamina has a lot of resources
Thousands of pertamina outlet that can be
used to penetrate the market.
Opportunities
Market Strategies


Entry of world class competitors business with
a big brand like Castrol, Shell, Repsol, Etc
Many appearance of new local brands, which
make the competition more fierce like Top1,
Indomobil, Jumbo, etc
Market Strategies



Question is how to increase local market
share in lubricants oil business ?
First strategy :

Get an approval certified of lubricants
product from top engine maker, so they
will be a statement example like this :

Honda recomended Fastron


Second strategy :


Create a CSR Program by allocating 2 5% of profit from
lubricants to the Program Kemitraan Bina Lingkungan. This
programme help local minor and small enterprise to expand
its business.

Notes : company that care about the society can obtain a good image
from the society


Third strategy :

Doing partnership with the car & motorcycle
workshop by offering special offer for selling
pertamina lubricant as its main product.

Notes : This special offer can be offering them with an insentive
for renovating the workshop into good ones. Brand Pertamina
can be put to the workshop by applying it along side with brand
of the workshop.

Last strategy :


Make a Race Tour with Pertamina program

Notes : if you buy any pertamina lubricants, you have a chance to
choose a prize by visiting the selected event of F1, GP 500, Le Mans,
WRC, or Daytona on live.
To create a new marketing strategies you need a
brand new communication message. This will be a
new message for new marketing strategies :


serve you in a different way


Conclussion


To earn market share in the competitive and dynamic
situation is not easy although Pertamina had been
monopolized the market for 30 years. Pertamina must
act swiftly to step forward beyond its competitors both in
innovation of its products and services
As the matter of fact, Pertamina has a potential to
obtain both in local & world market share, due of owned
several awards and high capital to invest in promotion.
Get a professional racing teams to use Pertamina
lubricants in a world class events is the best ways to
get world market share.