Shell Teams Up With DKSH to Expand Market Coverage for Shell Lubricants

Mrs. Pissawan Achanapornkul, Chairperson of The Shell Company of Thailand, says that this year Thailand’s automobile industry is poised for a better growth, resulting in an expanded lubricant market. Compared to the same period of 2009, this year’s first quarter sees a 6% overall market expansion, with Shell’s own growth outperforming that at 10% which is also higher than the company’s expectation. The company forecasts that in 2010, the overall lubricant consumption should rise to about 450 million litres with Shell to lead in the premium lubricant products thanks to its superior manufacturing technology on the global stance. Each year, Shell has allocated over Bt40 billion (about US$1.3 billion) in research and development to improve the quality of its lubricants for the market.

To satisfy customer’s higher expectation on the product quality and purchasing convenience, Shell has adapted its retailing strategy by adding 2 new channels into its existing distribution network. Firstly, Shell lubricant products are now available through the online Touchless Processing where customer directly interacts with the company and process all the necessary paper works from ordering, stock checking to tracking orders and confirming delivery date, automatically. Currently, the Touchless Processing takes up more than 75% of the company’s total sales volumes.

Secondly, Shell has appointed ‘DKSH’ – the country’s leading marketing expansion firm – as the ‘official distributor’ of the Shell lubricant products, allowing an even wider presence in walk-in retail stores such as auto-part shops and garages. Shell expects to increase this new retailing line through at least 20,000 stores around the country. Customers will get easier access Shell’s premium, high-performance lubricants for their cars.”

Mr. Somboon Prasitjutrakul, President of DKSH (Thailand) Co., Ltd., says that the company’s partnership with Shell solidifies a bond between the two leading companies of Thailand. DKSH, with its outstanding product distribution network, streamlines with an excellent modern inventory management that helps partners achieve the untapped markets while increase sales volumes in the existing ones. Shell, meanwhile, is the world’s leading manufacturer of premium lubricant oils widely trusted for superior quality. Putting the best two together, DKSH is confident that this partnership will work well to enhance growth of the Shell lubricant products. The mutual growth target for this year is set at 15%.”

To provide even better service to the customers, we have managed to bring the technology into the sales system. PDA devices are employed to link with inventory management technology that monitors, in real time, the existing stocks and customer information. This information is the key to improve the store sales nationwide with the employed GPRS tracking device to efficiently map out each day’s delivering routes,” says Mr. Somboon.

“The new business strategy of the lubricant business will this year help us achieve the prospected targets and expand market of high performance lubricants. If the whole lubricant market is expected to grow at 4%, I am sure that Shell will outperform that,” says Mrs. Pissawan.