The Study Of Shell Lubricants Chanel Strategy

With China’s continuous economic development and policy support of theautomotive industry, the demand for cars has increased considerably. Especially,the private consumption of cars has entered the stage of rapid growth, and so didthe consumption of commercial vehicles. Following this, the demand of vehiclelubricant is showing a trend of rapid growth. In this grand context, companiesselling lubricant are vigorously exploring the market, resulting in fiercecompetition of the automotive lubricants market, which is pushing the markettowards a gradually matured stage. Channels as a bridge connection betweenproducers and consumers has been studied a lot in the marketing chain. Owing tothe industrial characteristics of the lubricating oil are different from that of theordinary consumer goods, in order to share the market share, an automotivelubricating oil enterprise should always put great importance on the channelmanagement,.This research paper is started with a comprehensive analysis of themanagement status of the lubricating oil channels of Shell Company. Then thestatus quo of automotive lubricants industry is explored from the followingperspectives: the macro-environment analysis, the environmental analysis of thetrade and the analysis of its competitors, the analysis of the strengths,weaknesses, opportunities and threats of Shell automotive lubricant channels bySWOT Analysis. The rapid development of the lubricant market and increase dmarket demand lead to a portfolio and expansion of this product and anintensified integration of channels. The trend of a variety of development ofbusiness model has brought Shell opportunities in its development of automotivelubricant channels; Advantages of the channels of lubricant of Shell are abandantnetwork resources, wide range covering channels and fast product distribution.Disadvantages of the channels of lubricant of Shell is a weak channelmanagement mechanism which did not suit to the current market development.This research paper is based on the theory of channel management, and adoptscombined means of both theory and actual examples in order to identity theproblems which we are confronted with in the channel management of Shell, such as the lack of trust between channel members,cross regions sales problemand channel conflict. To solve these problems, this research paper suggest theadjustment and improvement of the lubricant channel management of Shell,namely that the direction of development and application of the cooperationmechanism,the channel selection mechanism, the channel incentive mechanismand channel assessment mechanism of the sales of Shell lubricant. This couldguarantee a complement of the channel management of Shell, the enhancemen ofthe competition of Shell in channel sales, the development of Shell the company.Based on the theory of channel relationships, channel structure and channelbehavior, this research paper has collected data from both the lubricant indus tryand the lubricant market and the channel management of Shell, identifiedpractical problems arising in the process of the lubricant channel management.An method of a combination of actual examples and theory is adopted inthis paper to give suggestions on the application of the adjustment andimprovement of channels management of Shell in order to provide effective helpto the channel development of Shell, which hopefully could be a reference ofvalue to the channel management of the lubricating oil industry.