Market
Sri Lankas 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.
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-
16 SUPERBRANDS
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.
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 companys Caltex,
Texaco and Chevron
products, its global values of
people, partnership and
performance reinforce
Caltexs strengths. This
enables the brand to
continue strengthening
relationships with its
customers, partners and
communities.
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, Caltexs 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
companys 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 worlds
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.
Recent Developments
The companys 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.
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 brands philosophy of
helping people realise their long-term dreams
through small, practical and necessary steps. This
customer-oriented philosophy is embodied in
Caltexs 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 Caltexs 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.
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 organisations 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 Caltexs 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.
www.chevronlubricants.com
THINGS YOU DIDNT KNOW ABOUT
CALTEX
Caltex is the fifth most powerful brand in Sri
Lanka.
Caltexs 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.
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