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David and Goliath – Feedback |
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JW received a significant number of comments about
the “David and Goliath” story we ran yesterday (see
link at bottom of story). Interestingly, the
opinions expressed were very consistent.
First off, of the nearly 10,000 subscribers we
e-mail Jobbers World News Briefs to, there was a
time yesterday when I would have sworn I received
12,000 e-mails about how to spell Pittsburgh. Yep,
we made a “typo” and left the "h" off of
"Pittsburgh." Our apologies go out to everyone in
"The Big Little City," But we learned something
important. That is, people from Pittsburgh love
their "h.” In addition, we learned that many
educated people (or at least people who can spell)
actually read every word we write in Jobbers World.
Another common thread in the feedback we received is
that there doesn’t seem to be much sympathy from our
readership for the David in the story. Our readers
don’t see it as big oil beating up on a little guy.
Instead they see it as a major doing what it should
to protect its business and the business of its
marketers.
As an example, one marketer said, “It may be “David
and Goliath” but in my view, majors have gotten
slack about protecting their brand. Our supplier
sure has. There are signs out on the curb, on
buildings, etc., that lead customers to believe that
their brand is inside. What’s inside, though, is
often private label—usually supplied by a multi-line
distributor that has other brand options. When they
let their brand value fall to zero, that’ll be it;
game over. Branded distributors actually benefit
when their suppliers protect the brand and have it
mean something. This makes the distributor’s
contract and value higher. Shell is just trying to
make some noise and I think they should. I wish our
supplier (a leading major) would take a stronger
position about protecting its brand.”
Here is what another marketer had to say:
“No legitimate jobber in the business wants to see
mis-branding like this – it hurts everyone in the
long run. I think it is great an oil company is
policing its branded bulk business.”
Another example, and maybe one majors and marketers
should really think about came from a consumer that
just happened to read yesterday’s David and Goliath
story. This seemingly unbiased consumer, said:
“I read you article in Jobber’s World in regards to
the Shell lawsuit. I agree with Shell, they have the
consumer’s interest at heart. There are a lot of
small lube shops that take advantage of people that
trust them and the signs they see around. Having a
Pennzoil Sign at your premises implies to the
consumer they are receiving Pennzoil products. If
you are not selling me Pennzoil when I drive into a
fast lube with a Pennzoil sign then the Pennzoil
sign should not be there. Have a sign made out to
reads, “We sell House Brand Lubricants” or "We Sell
Wal-Mart Lubricants" and see how your customer
responds. Everyday in America consumers are being
taken advantage off. Thank you Shell for doing the
right thing and setting an example.”
Okay - enough about our readers throwing stones at
the David in this story. Who knows, there are always
two sides to every story and we will likely never
know them both. Nor will we ever know what truly
lies in the hearts and minds of people when they
enter into ugly battles like this. But this is not
the only battle taking place in this space. In fact,
its one of many in the ongoing war in the installer
class of trade. It’s a war that pits brand against
price. As one reader said after seeing the story,
“Perhaps a follow-up article could be titled "Sign
of the Times" as more installers say no to higher
priced lubricants with ever lessening support and
programs to justify the cost.”
As we said, Jobbers World plans to track this David
and Goliath story to its conclusion. We suspect
there is a good deal that can be learned and taught
from how it plays out. Your comments and thoughts
are welcomed. And if you see any spelling errors
in this story, please let us know!
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Chemtura Completes Acquisition of Kaufman Holdings
Corporation |
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Chemtura Builds on Core Competencies Expects High
Growth in Lubricants for Hydro Fluorocarbon (HFC)
Refrigeration Compressors
Chemtura Corporation (NYSE: CEM) announced
yesterday that it has completed the acquisition of
the stock of Kaufman Holdings Corporation in an
all-cash transaction. Kaufman has approximately 300
employees and 2006 revenues in excess of $200
million.
The acquisition includes Kaufman’s two operating
companies, Hatco Corporation, a worldwide leading
producer of polyol esters used for technically
demanding synthetic lubricant applications,
including aviation turbine oils and lubricants for
HFC refrigeration compressors; and Anderol Inc., a
worldwide leader in high-performance, synthetic
lubricants used in demanding aviation and industrial
applications, such as compressors, bearings, gears
and food-grade machinery.
“The acquisition of these companies aligns with
our strategy to add high-performing businesses to
our portfolio,” said Chemtura Chairman and CEO
Robert L. Wood. “Both Hatco and Anderol are world
leaders in their respective markets. “Our existing
Petroleum Additives / Lubricants business is core to
our growth, and Hatco and Anderol fit in well with
this business. There are related product offerings
in key customer areas, as well as the opportunity to
strengthen alliances with major suppliers. There may
be distribution synergies as well, benefiting our
global customers,” he said. “Chemtura will add
industry expertise, Six Sigma-based products and
processes, and new information technology systems
that will benefit Kaufman customers.”
“The acquisition brings together complementary
technology and manufacturing experience and will
result in our ability to offer customers a broader
portfolio of products, technology and service,” said
Janet Mann, general manager and vice president of
Chemtura Performance Specialties, which includes the
Petroleum Additives / Lubricants business. Hatco and
Anderol will become part of the Performance
Specialties group of businesses.
“We see many opportunities for global expansion
in two high-growth markets: HFC refrigeration
lubricants and high-performance synthetic
lubricants,” Mann said. “Growth in HFC refrigeration
lubricants is driven by the Montreal Protocol, which
provides for the accelerating adoption of
environmentally friendly refrigerants. Growth also
will be driven by the demand for improved fuel and
energy efficiency, as well as increased equipment
durability, all of which are enhanced by the use of
synthetic lubricants.”
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ConocoPhillips Lubricants Upgrades Kendall
Lubricants Analysis System (KLAS®) Oil Analysis
Program |
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ConocoPhillips Company, the fourth largest U.S.
lubricants supplier, today announced several changes
to Kendall Motor Oil’s Kendall Lubricants Analysis
System (KLAS®) oil analysis program. Effective
January 1, 2007, ConocoPhillips aligned its software
service provider with its oil analysis testing
laboratory, consolidated contact phone numbers into
one comprehensive support line and enhanced training
opportunities, according to Steven Tarbox, director
of product management, ConocoPhillips Lubricants.
“In our continued efforts to increase the ease
and efficiency of doing business with ConocoPhillips
Lubricants, we are pleased to announce these
upgrades to our oil analysis program,” said Tarbox.
“It is important that our programs and systems
improve in tandem so that our customers have a
program with maximum function and value. The
modifications to our KLAS oil analysis program
provide our customers with a more efficient system
and increased online support.”
In 2007, the KLAS Web-based software and
management tools for fleet analyses is now provided
and supported by POLARIS Laboratories. The new
system is very similar to the previous service, but
it provides easier web access for remote and
multiple users as well as additional management
reporting options for distributors and their
customers.
This change in service providers has also led to
changes in the KLAS Web site, www.KLAS.net. The site
now incorporates all of the new program information
along with new reporting capabilities.
Finally, ConocoPhillips says, training will
continue to be an important element of the KLAS
program as ConocoPhillips Lubricants adds field
training sessions to the existing Web-based
training. They say the goal of both online and field
training is to help Marketers and customers better
understand the oil analysis program and encourage
them to take full advantage of the program.
“The KLAS program will continue to be an
exceptional value as distributors and their
customers convert their fleets to the ULSD and CJ-4
diesel engine oils,” said Tarbox. “The program is
designed to make all users lubrication analysis
experts.”
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