Compton Lubricants: Differentiated Competition Helps Leading Companies

Mentioning Compton , some users may not understand that this is a lubricant brand. In terms of brand awareness, it is not as famous as the international brands Shell and Mobil, and it is not as widely known as the domestic brands Great Wall and Kunlun. However, in some regional markets and market segments, its popularity is not low, even better than the well-known brand market in the past, with a stable customer base.

What kind of brand does Compton have in the end? What are the advantages? On October 31st, the reporter walked into Qingdao Compton Technology Co., Ltd. (hereinafter referred to as Compton) and interviewed Xiao Shumei, the marketing director of the company.

Products adhere to the high-end positioning

Xiao Shumei, who was born in the engineering department, knows the product well and mentions Compton's products. Having worked at Compton for 17 years, she witnessed the growth, development and growth of the company during these years. "Since its founding, Compton's products have positioned high-end and high-end products, not low-end products. Now, looking back, this position is correct," Xiao Shumei said.

The competition in the lubricants industry is very fierce. To a certain extent, it may be even more fierce than the competition of the entire vehicle company. Because there are too many brands and they are both big international brands and domestic big brands, Compton is equivalent to survive in the cracks. Recognizing how the industry environment is located, the company has always adhered to the high-end brand positioning and differentiated product strategy since its inception. “If positioned at the low end, the company may have already died in price war.” Xiao Shumei added .

According to industry insiders, the price war in the lubricants industry is very common, especially for domestic companies located at the bottom of the smile curve, once forcing survival with price. Because more than 90% of the production cost of lubricating oil comes from raw materials, this part of cost consumption is rigid and difficult to reduce. The price reduction means that it is difficult for lubricating oil companies to seek profit through cost transfer. Therefore, blindly playing a price war has a great damage to the company's own profits, and product quality and service will inevitably be affected, eventually leading to a loss of both consumers and businesses.

The high-end market is dominated by foreign brands. Even large state-owned companies such as Sinopec and PetroChina may find it difficult to squeeze into this market. The low-end market is already a Red Sea. It is in recognition of the current status of this industry that Compton sticks to the differentiated positioning of high-end and high-end products. It has not participated in the price war, and has won a batch of excellent product quality and good service, and at the same time, it has won a number of price advantages over international brands. Loyal dealers and customers.

According to reports, Compton's sales of high-end products at the SJ and CH-4 level and above are now over 40%. This kind of product sales structure is relatively rare in the lubricant industry. It also shows that the company's long-term brand positioning persists. Success.

Quality and service are indispensable

"The quality is good, the price is right, the user will naturally be loyal, we will have a stable customer group." Xiao Shumei believes that quality is the first, "the iron must be hard", brand building first of all need quality support, if However, the brand positioning is even more high-end, such as building a tower in the sand.

For this reason, Compton has strict requirements on product quality. In terms of product quality control, the company has passed DNV ISO9001 international quality system certification and TSO16949 certification, and strictly controls the production process according to the requirements of the quality system to ensure product quality. In terms of product quality standards, products that implement national standards and industry standards are all subject to standard upper limits for corporate internal control. Other enterprise standards are based on the requirements of the American Petroleum Institute (API) and the American Society of Automotive Engineers (SAE) standards.

With strict quality management, Compton lubricants have obtained API certification from the American Petroleum Institute for a variety of products and obtained the right to use the API logo. They have also been certified by a number of well-known domestic and foreign manufacturers as their loading or service oils. Xiao Shumei told the "Commercial Automotive News" reporter that the company's technical service personnel often went to the 4S shop of the main engine plant and the team to conduct technical exchanges and training, and provided some oil detection services to guide users in correct and economical oil changes.

In addition, Compton has also set up the Compton Business School to provide training for distributors, service providers and other partners, covering product knowledge and technology, product use, sales and branding, and received good effect.

Still maintain double-digit growth this year

Although the overall situation of the automotive market this year is not optimistic, but the Compton company has not been affected by the excessive impact of the automotive industry environment, from January to October, the company completed the expected sales tasks.

"At present, the sales situation is still good, which represents an increase of over 10% over the same period of last year. The sales during the first five months of the year were particularly good, but after May, the situation was affected by the downturn in the automotive market. The company took timely and relevant measures. , launched a variety of marketing activities, especially the brand recognition meeting of the regions twice a year.This autumn's thank you meeting to start preparations earlier than in previous years, in the form of innovation in varying degrees, won the opportunity to increase sales In the interview, Xiao Shumei admitted that she felt "tired" this year and that it was difficult for the company to maintain double-digit growth.

According to Xiao Shumei, Compton's current business is mainly based on automotive lubricating oil, supplemented by industrial oils and automotive maintenance products. The ratio of steam engine oil and diesel engine oil products is approximately 4:6, achieving a full range of oil products. Series coverage. In diesel engine oil, nanoceramic engine oil accounts for more than 20% of the total sales of diesel engine oil.

“This is a major product in the mid- to high-end market, with independent intellectual property rights. It reduces engine wear through the formation of a layer of nano-ceramic protective film on the surface of the machine, and can extend the oil change cycle. This is good at calculating the economic account. For commercial vehicle users, the revenue is very obvious, so sales in the operating vehicles are very good.” Xiao Shumei said.

Xiao Shumei is not worried about the national IV emission standards to be implemented on July 1 next year. She told reporters that since the company began to make related preparations last year, it has introduced oil products that meet China IV emissions early on and is passing a series of Promotion and promotion activities to warm up the market, once the policy is implemented, the market will be able to achieve a smooth transition.

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