Recently, Dongfeng Oil Group Co., Ltd. and South Korea's GS Caltex Co., Ltd. jointly sponsored a product promotion campaign called “Delivering Excellence.†The introduction of Dongfeng GS lubricants marks the birth of the company’s second co-brand. It is a butterfly change of Dongfeng Oil Group. It is reported that this is Dongfeng Oil Group's long-standing brand breakthrough campaign, which has important strategic significance for the company's impact on domestic leading lubricant companies. Dongfeng GS lubricants are regarded as a “watershedâ€. From the moment, Dongfeng Oil Group has a clearer product structure and market positioning, and has clearly determined the impact of the international brands. The development of the Chinese automotive industry has developed a huge treasure for automotive lubricants. It is expected that by 2020, China will replace the United States as the world's largest consumer of lubricants. Lubricating oil products have the dual characteristics of industrial products and consumer goods. The rise and fall of this particular industry echoes the rise and fall of various industries. It is a vane for insight into the development of the dialysis economy. The level of production and sales data is directly related to the warm and cold nerves of economic development. . Experts predict that with the continuous rise of domestic brands, the lubricant industry will be more radiant and the competition will be intensified. For a long time, a small number of foreign brands have occupied most of their profits, which is the crux of local lubricants companies. "Breakthrough" and "shaping the brand" have become the first criteria for many lubricant manufacturers to keep in mind, hang on, and act quickly. As a leader in the national brand, Dongfeng Oil Group has always been in the process of branding and internationalization in the development process. Through continuous external and internal integration, it has the strength to share market with international brands. Looking at the domestic market, "scattered, chaotic, and small" is the current status of the lubricant market. At present, there are several thousand lube oil production enterprises with different strengths across the country, which present a competitive pattern of “three pillarsâ€. In the high-end market, foreign brands have an advantage; in the mid-range market, there are mainly two state-owned oil companies, Sinopec and PetroChina, at the helm; in the low-end market, most local private enterprises are maintained. At present, the domestic market for lubricant oil has exceeded 100 billion yuan, of which high-end products account for 20% of the profits, and thus rise to the main battlefield of lubricants competition. Foreign brands such as Mobil, Shell, and Castrol have launched a new round of competition with local brands such as Great Wall Lubricants. Other local brands have only been “bystanders†for some time. In an interview with the media, an executive from an international oil company’s China region stated: “In the next 10 years, China will fully enter the automobile era. Whoever wins the Chinese market will win the future of the global lubricant market.†Analysts pointed out that the future of the Chinese lubricants market, mergers and acquisitions is not new, and the rise of national brands, will be another aspect. First, the accelerated distribution of international brands such as Mobil, Shell, BP, Caltex; Second, the rapid expansion of the local brands such as the Great Wall, Kunlun, etc.; and the biggest oil companies in the country. In order to occupy more shares, each lubrication brand is leveraging its own capital, technology and brand advantages to join the downstream automotive and industrial companies to divide the market. Even if the "28 law" is the biggest obstacle to the growth of domestic brands, it faces Who will give up huge market profits? “China's lubricant industry is undergoing an evolution from a low-end to a mid-to-high-end upgrade.†Industry insiders pointed out that domestic lubricants companies represented by Dongfeng Oil Group have started strategic adjustments and upgraded their products. In the face of the blockade of international brands, national brands have also resorted to killers, using their own geographical, channel and service advantages, blew the clarion call of the branding war. Among them, the three-star five-star marketing model introduced by Dongfeng Oil Group is the best evidence. It continuously innovates from the aspects of product quality, brand positioning, marketing ideas, etc., and takes internationalization as the goal, and uses differentiation as a means to strive to break the “28 law†and call Banyang brand. According to reports, after the establishment of Dongfeng Oil Group, it achieved a two-year, step-by-step, five-year benign development: in 2000, it began to hold Exxon Mobil. In the same year, it entered Dongfeng after-sales service guarantee system and new car maintenance manual, and the company’s products became Dongfeng Motor's designated after-sales service oil has entered the Dongfeng Company's nearly 500 service stations nationwide and has driven the entire market; in 2002, the company passed the ISO9001 quality management system certification; in 2007, the company's internationalization strategy was fully launched, and it is a world-class enterprise. Implemented strategic cooperation and formally signed a new five-year strategic cooperation agreement with Exxon Mobil Corporation, the giant of the international oil products industry. Independent research and development and cooperation were introduced to ensure the simultaneous development with the world's most advanced technologies. In 2011, Dongfeng Oil Group and the Fortune 500 companies, Asian oil giants, and South Korea's GS Caltex Co., Ltd. successfully signed the “Dongfeng GS Lubricants†brand, becoming the best birthday gift since the establishment of the group. And it made a sensation both at home and abroad. According to reports, Dongfeng GS lubricants products cover automotive lubricants and industrial lubricants, etc., products meet the International Organization for Standardization (ISO), the American Petroleum Institute (API) requirements. The first step in brand building is to develop a channel network. After 12 years of continuous exploration, Dongfeng Oil Group has found a solution to the construction of market channels. The star-shaped service operation has made Dongfeng different from the others and demonstrated differentiation. On the issue of selecting a channel model, Dongfeng Oil Group Co., Ltd., together with senior experts inside and outside the industry and large market sales players, simultaneously considers the existing distribution channels of industry products, the channel models adopted by industry companies, their own product mix, and differences. In June 2010, the company officially announced a three-star, five-star marketing system. This market operation model has enabled Dongfeng Oil Group to achieve a good record.
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