Pertamina is Indonesia's largest lubricant company but has seen declining market share as competitors increase their share. Motorcycle oil consumption contributes 50% of automotive lubricant consumption in Indonesia. Pertamina aims to increase its 52.3% market share by partnering with motorcycle dealers and garages to promote its products for motorcycles. It also plans to partner with passenger vehicle companies and garages to promote its products for cars. Additionally, it will partner with industrial companies to promote its industrial lubricants and gain their loyalty.

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