1. PT Pertamina Lubricant Oil
LOCAL MARKET STRATEGY
SYNDICATE 4: RACHMI, RAFAEL, RIEKE,
PRAMADONA, YUNUS, JOSEPH

2. 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

3. 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

4. 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, et
c.

5. 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

6. 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

7. 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

8. 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

9. product price place promotion
 Oil used for  Competitive  Pertamina  Directly through
operates 7 dealers and gas
passenger price compred station
to other marketing
car, bus, truck,  Personal selling :
regions, 180 face to face with
motorcycle and similar oils
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 through Gas sponsor many
are such as : station, Pertamin activities
Fastron, Prima a  Above the line
Olimart, Lubricat and below the
XP, mesran, En line activities
ing agent and
duro, etc.
Consumer direct

10.  How to increase market share

11. 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

12. 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

13. The third focus was in industrial segment
▫ Doing partnership with companies, create their
loyality to use national product with special price

14. THANK YOU