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David and Goliath – Feedback |
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 |
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 |
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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