MARKET
Sri Lanka’s lubricant market has evolved significantly over the last several years with the deregulation of the industry, which saw the entry of several large multinationals and a regional player into the local arena.
Caltex, however, has proved its superiority by competing successfully with all players in the market to take the lead with well-articulated marketing and brand strategies, and has become the brand of choice in the mind of the Sri Lankan consumer.
Top ^
ACHIEVEMENTS
The Caltex brand, which has achieved exponential growth over the years, was rated as the fifth most powerful brand and the eleventh most valuable brand among all product and service brands in Sri Lanka by the UK-based Brand Finance, in association with STING Consultants. The rankings, which were published in LMD, reflect the amount of brand equity that has been created through real value additions to customers. In an era in which the economic prowess of brands is gaining momentum, the Caltex brand is ideally positioned to translate its perceived brand power into superior financial results.
In addition, the Caltex management team was adjudged runner-up in the Management Team Of The Year category at the annual CIMA-Janashakthi Pinnacle awards.
Caltex was ranked sixth in 2000 – up from seventh the previous year – in a ranking of the top ten companies by Business Today magazine.
Caltex has placed great emphasis on preserving and maintaining the environment. In 2000, 2001 and 2002, it clinched The Green Sri Lanka National Environmental Award bestowed by the South Asian National Environment Committee (SANEC) of Sri Lanka, in collaboration with the Federation of Wildlife Conservation (FWC). Subsequent to this achievement, Caltex has worked very closely with FWC to undertake various awareness campaigns aimed at educating the public on a variety of environmental issues.
And Caltex has been recognised for its contribution towards developing and enhancing the facilities at deaf and blind schools nationwide. Through such CSR practices, the Caltex brand in Sri Lanka has aligned itself with the values embraced by the global organisation.
Top ^
HISTORY
Brand Caltex had an early start in Sri Lanka, having maintained a presence in the country since the 1930s. Between the 1960s and 1990s, the brand was not an active player in view of the nationalisation of multinational oil companies by the governments of those times. Since its re-entry in 1994, however, Caltex has become synonymous with lubricants in Sri Lanka.
The liberalisation of the lubricants market, which came into effect in 1999, brought new challenges and opportunities. This enabled Caltex to sustain its performance levels, in spite of efforts by other global competitors to carve out a share of the local market.
The Caltex brand is highly competitive across all energy sectors. It brings together a wealth of talent, shared values and a strong commitment to developing vital energy resources worldwide. In addition to operating synergies resulting from the company’s Caltex, Texaco and Chevron products, its global values of ‘people, partnership and performance’ reinforce Caltex’s strengths. This enables the brand to continue strengthening relationships with its customers, partners and communities.
Top ^
PRODUCT
The corporate brand Caltex has strong name recognition. Since its inception, Caltex has been manufacturing and marketing quality lubricants around the world. The Chevron Corporation, Caltex’s parent company, stands behind the brand in a competitive high-performance and value-added lubricant market – it ranks amongst the largest and most competitive energy concerns in the world. Chevron Corporation is active in more than 180 countries around the world and it is engaged in every aspect of the global oil and gas industry, including oil and gas exploration and production, refining, marketing and transportation, manufacturing and power generation.
Renowned Caltex brands such as Havoline, Delo and Revtex have established both a local and international reputation for reliability and unsurpassed performance. Among the company’s comprehensive range of products, the ‘Lanka’ range, formerly a local product, now operate under the Caltex umbrella. It adds an international stamp of excellence and performance to the brand.
Caltex focuses on understanding its customers’ needs and lifestyles. Its Star Lubes and XPress Lubes concepts have been geared to deliver service excellence.
Caltex introduced a new concept to the market with the launch of its Star Lube service stations, with the objective of integrating various aspects such as products, technology, image and service. The Star Lube concept envisions playing a more meaningful role for the benefit of its customers, partners, neighbours and the environment. Caltex Star Lubes are equipped to provide an enhanced lubrication service within one and half hours, which is quicker compared to the conventional services offered by traditional service stations.
Caltex XPress Lube is fully geared to provide an eighteen-point maintenance check, which is estimated to take less than 45 minutes.
Through its Commercial and Industrial Unit, Caltex is able to serve the lubrication needs of the industry. This could range from a small-scale local manufacturer to some of the world’s largest companies. Developing successful partnerships is imperative to the ongoing growth of the organisation. Customer loyalty is a crucial element of success – and thus, the Caltex industrial team works in partnership with its customers to develop innovative ways of meeting customer expectations and achieving results.
Caltex has developed the concept of a Total Solutions Centre, whose services are differentiated by customer groups, to provide outstanding customer-focused solutions.
The total solutions concept anticipates customer needs, taking into account every possible aspect of customers’ requirements.
The Total Solutions Centre is staffed by a team of highly-qualified professionals, who are equipped to handle all customer complaints, queries and concerns. Caltex has an award-winning laboratory, a state-of-the-art manufacturing facility and sophisticated research-and-development facilities – plus the SAP ERP system, unique for a Sri Lankan lubricant company.
Top ^
RECENT DEVELOPMENT
The company’s twin-brand strategy has been paying dividends, with the decision to invest substantially in brand building, develop an independent distribution network, restructure plant and warehouse operations, and outsource non-core activities transforming its entire operation into a cost effective and productive business.
It has also successfully fought off the attempts of competitors to penetrate the Caltex franchise through increasing credit periods.
Moreover, its unique position as the only operator that is capable of delivering in bulk, not to mention the competitive edge it gains from its on-ground laboratory, has held Caltex in good stead in Sri Lanka. Together with its blending plant, its fully equipped laboratory services provide Caltex with a unique advantage – to respond to customers promptly. In addition, its ability to deliver in bulk means that the larger corporate clients enjoy substantial savings in packaging costs.
Caltex Lubricants Lanka was among the first to make a strong comeback into the newly opened markets in the north and east of the country following the signing of a ceasefire agreement between the government and the LTTE. Its distribution plan – one which encompassed the appointment of distributors, market-awareness campaigns and brand-building activities – has resulted in Caltex being amongst the most visible brands in these areas.
Innovative technology to meet surging market demands has further boosted the popularity of this brand.
Caltex completed the initial phase of upgrading vehicle-service stations to complement its new Star Lube and Xpress Lube concepts in 2005. It then launched the second phase by virtue of its Delo service facilities. In addition, its introduction of non-traditional lubricant outlets has also been a success – justification of its decision to develop its distribution channels to reach more customers.
Top ^
PROMOTION
The success of Caltex can be attributed to the considerable investment it has made in marketing the brand. All promotional activities are firmly rooted in the brand’s philosophy of helping people realise their long-term dreams through small, practical and necessary steps. This customer-oriented philosophy is embodied in Caltex’s What Drives You campaign, which was introduced in all key markets in early 2001.
The Caltex Cash Carnival promotion was launched to coincide with the ten-year celebrations of successful operations in Sri Lanka. Its aim was to reward the many thousands of loyal customers who have placed their trust in Caltex brands. All product ranges were open for this promotion, enabling buyers to win cash for purchases of Caltex products, thereby rewarding customer loyalty.
At Caltex, sponsorship is a key marketing tool that is used to reach out and communicate with customers. Through sponsorship, Caltex is able to associate itself with subjects that share the same values and characteristics that the brand aspires to.
Sponsorship is part of Caltex’s way of doing business. Sponsorship of sports such as rugby football provide the right mix for the brand to leverage its power, energy and strength – and at the same time, symbolise the traits of the game. The brand has been linked with sponsoring sports activities such as volleyball and boxing at schools. Sponsorship is considered to be one of the most effective tools through which Caltex can reach out and build relationships with its various target customers.
Caltex is firmly committed to the spirit of corporate citizenship in all its activities. Safety is promoted as the number one business value and this has recognised the importance of sharing safety practices with the community. To leverage the safety concept, a road-safety campaign, Haritha Gamana, was launched in 2005, to promote the values of Health, Environment and Safety (HES). The project encompasses activities and awareness sessions designed to create a culture in which concerns about HES are automatically considered before embarking on any activity.
Top ^
BRAND VALUES
The Caltex star stands for quality. The Caltex star stands for value. The Caltex star stands for service. But most importantly, the Caltex star symbolises the organisation’s commitment to treat its customers as individuals, not merely numbers. In everything it does – from advertising to manufacturing products and services, to staff welfare and so much more – building relationships is Caltex’s key focus.
Brand Caltex is the embodiment of everything the organisation strives to accomplish. The brand acts as an endorsement of quality, indicating professionalism and an established company that is agile, customer focused and socially responsible. Caltex also takes advantage of its brand status by continually improving its performance and strengthening competitiveness to meet the challenges of the energy industry.
Top ^
THINGS YOU DONT KNOW ABOUT Caltex
♥ Caltex is the fifth most powerful brand in Sri Lanka.
♥ Caltex’s brand value is amongst the eleven highest in Sri Lanka.
♥ The multinational has maintained a presence in Sri Lanka since the 1930s.
♥ In Sri Lanka, Caltex sponsors rugby football, volleyball and boxing.
Top ^
www.chevronlubricants.com
