pertamina - marketing case

5/25/2018 Pertamina - Marketing Case

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Business Competition

on Lubricants

(Pertamina Case)

Kuspratama (29113021)

Karina Ramadhani (29113033)

Made Rai Laksmi (29113146)

Nenden Watnasari (29113143)


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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 Pertaminafollowing 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

ToBecome Class National Oil Company


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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 ofthis operation run with partner business model like Badan

Operasi Bersama (BOB)

Downstream Business : its cover crude oil refining into theseveral product of oil (fuel & non fuel) and the distribution

of the product all arround the region


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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


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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 highprofile marketing campaign)


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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


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Marketing Mix

Selling lubricantused by

personal car,bus, truck,

motorcycle andindustrial

machinary withvarious quality

product

Pertaminaoffered

competitiveprice if

compared withworld class

brand

Distributing theproduct through

:

1.Gas Station(SPBU)

2. PertaminaOlimart

3. LubricatingAgent

4.ConsumerDirect (Industry

Scale)

1.Convince theowner of the

service stationto use

pertaminalubricant

2. Direct sellingto the personal

buyer3. Make an

event orexhibition

4. Becoming ofsponsor racing

event


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SWOT Analysis

Relatively easy to sell product because the bigname of the Pertamina

Has a good history for quality service to the

customers

Own high capital to invest in the marketingstrategies

Has many selling point all over in Indonesia


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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, theprice depend on the fluctuation of world oil price


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Opportunities to compete both in regional andinternational scale on lubricant competition,

due Pertamina has a lot of resources

Thousands of pertamina outlet that can be

used to penetrate the market.

Opportunities


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Market Strategies

Entry of world class competitors business witha big brand like Castrol, Shell, Repsol, Etc

Many appearance of new local brands, which

make the competition more fierce like Top1,

Indomobil, Jumbo, etc


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Market Strategies

Question is how to increase local market

share in lubricants oil business ?


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First strategy :

Get an approval certified of lubricantsproduct from top engine maker, so they

will be a statement example like this :

Honda recomended Fastron


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Second strategy :

Create a CSR Program by allocating 2 5% of profit from

lubricants to the ProgramKemitraan 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


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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 insentivefor renovating the workshop into good ones. Brand Pertamina

can be put to the workshop by applying it along side with brand

of the workshop.


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Last strategy :

Make a Race Tour with Pertamina program

Notes : if you buy any pertamina lubricants, you have a chance tochoose a prize by visiting the selected event of F1, GP 500, Le Mans,

WRC, or Daytona on live.


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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 different y


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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.


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pertamina - marketing case

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