Shell Lubricant Marketing Targets High End

In the lube industry, product gentrification has become a common trend. In the face of domestic brands, the international lubricant brand Shell has shown its mature branding ability.

As an earlier open commodity market in China, the Chinese lubricants industry has long been favored by the world's major lubricant brands such as Shell, Mobil, and Castrol. However, in recent years, the “national team” led by Sinopec Great Wall Lubricants and PetroChina Kunlun Lubricants, and a large number of private enterprise brands have also been pressing hard on the high-end market.

Under the attack of the competition partners' massive coverage of marketing campaigns such as TV commercials and promotional activities, Shell, the world's No. 1 international lubricants supplier, has maintained its high-profile attitude from beginning to end. The market strategy with media criticism is “Ning Losing the market without lowering the price would rather lose the brand strategy of losing the share of profit."

“We hope that our target consumers are brand-oriented, value-oriented consumers.” Shen Jian, general manager of Shell Lubricants China and Hong Kong, said in an exclusive interview with reporters that Shell’s pricing strategy, sales strategy and channel strategy Demand for this target group.

Three consumer groups

Automotive lubricants are an important part of the BtoC market's Shell product line. Shen Jian told reporters that Shell's personal consumption groups for automotive lubricants are divided into three categories based on consumption habits:

The first category is "expert" consumer groups: they are proficient in automobiles and will choose the right lubricants for their own cars; the second category is "branded" consumers: China's residential environment and automotive applications are still in the early stages. There is a certain difficulty for consumers to change their own oil, so after a certain part of the Chinese consumers have a certain understanding of the car, they will habitually use a fixed brand of lubricants at a fixed location; the third category of automotive lubricants consumers identify the brand Not high, but will rely on the recommendation of experts and friends to choose branded lubricants.

"Customers who are inclined to buy the cheapest lubricants are not our target group," Shen Jian said. For the different maintenance needs of consumers, Shell is establishing and improving the corresponding service system. In addition to the 4S and 3S stores, which are still the main traditional oil-changing maintenance channels, Shell has continued to develop customer relationships for independent maintenance channels. From the fast-repair shops to the “flagship store” of the conservation center, its channels have continued to deepen.

Cultivate consumers

Lubricants are products that consumers are highly involved in. Most consumers believe that lubricants are essential for the maintenance of automobiles. On the other hand, the characteristics of lubricants also determine that consumers are hard to use to evaluate product quality. Therefore, the brand's position in marketing is crucial.

According to a market survey commissioned by Shell in early 2010, 64% of consumers in China are concerned about lubricants and know that good lubricants can bring better protection to cars. However, there is a general lack of knowledge on how to make choices in the lube products with many brand names and labels on the market. How to make the product “visual” and allow consumers to understand the technical value? Shell did a variety of experience marketing attempts.

Shen Jian said: "We have a lot of scientific and technological information behind our products. Through this form, we hope to show Shell's leading technology more clearly to consumers."

In terms of media selection, Shell brand promotion aims at a combination that covers consumers' potential access to media. Advertising coverage covers Beijing, Shanghai, Guangzhou, Shenzhen, Dalian, Tianjin, Foshan, Dongguan, Suzhou, Hangzhou and other key cities. The contents include television advertisements, long-term cooperation in television programs, and long-term cooperation in radio programs, among which the focus is on popularizing lubricant knowledge among vehicle owners in the core automotive magazines and mass media.