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|JOBBERSWORLD...MARKET INTELLIGENCE FOR INTELLIGENT MARKETERS
The First and Only Independent Newsletter to Focus on Lubricant Distributors.
Your needs, your concerns, your outlook. No bias, no fluff and no punches pulled. Whether it's buy backs or brand battles, allocation of co-op ads, operating costs or turf wars, Jobbers World keeps you on top of the issues that matter to YOU: The Lubricant Marketers!
week we reported that Honda awarded its genuine oil contract to ConocoPhillips.
This business was formerly serviced by the long-time incumbent, ExxonMobil. Whereas
bad news for ExxonMobil, it was certainly good news for ConocoPhillips. Further,
as we said in our article breaking this story, its also good news for ConocoPhillips
marketers since they will likely enjoy additional buyback business with ConocoPhillips as a result. Well, from
what JobbersWorld is now hearing, there is more to the story. And according to
some marketers, the rest of the story smells a little like "sour grapes."
Honda's decision is good news to ConocoPhillips, some marketers say, that what
should be good news for them as well could turn bad. This is because these marketers are multibranded
and sell both ConocoPhillips and ExxonMobil lubricants. And rather than graciously conceding defeat,
many of these marketers say ExxonMobil is "very disgruntled" about Honda's
decision. As a result, ExxonMobil is now putting pressure on its marketers to
turn their backs on the ConocoPhillips Honda program.
Specifically, JobbersWorld has learned... ExxonMobil is advising some marketers that carry both ConocoPhillips and ExxonMobil lubricants that their alignment with ExxonMobil will
be further scrutinized if they lead with ConocoPhillips engine oil rather than
ExxonMobil when selling to Honda dealers.
In the views of these marketers, this approach is nothing short of a
"veiled threat." In fact, several marketers say they were told if they participate
in the ConocoPhillips program with Honda dealers, their alignment with
ExxonMobil could be brought into question and this could affect their future
buyback business with ExxonMobil.
marketers say the pressure ExxonMobil is now putting on them with regards to
Honda dealer business may be symptomatic as to why Honda made the decision to
switch from ExxonMobil to ConocoPhillips. This is because in their view the
decision is about the value of the lubricants offered, not the long-standing
relationship Honda had with ExxonMobil. And apparently, in Honda's view, the
value ConocoPhillips brought to the table exceeded the value offered by ExxonMobil
(inclusive of its long-standing relationship). But, marketers add, although
relationships may not make or break a deal, never take them for granted.
marketers now ask, is ExxonMobil truly willing to put its long-standing
relationship with its aligned marketers on the line in an attempt to claw back
the Honda genuine oil business without offering a better value proposition? If
so, are they prepared for what could be a loss of that marketer's business as
well? And even if they are, have they thought through how other OEMs might
react to these scuffles?
Written and published by experts, Jobbers World is brought to you by Petroleum Trends International, Inc.
2010 Petroleum Trends International, Inc.