ts market this can create a real competitive edge. Caltex has better products in terms of quality and specifications. Castrol are the most expensive in the market, they can do so because their aggressive marketing has created the perception that their products are better, because of this, people do not object to paying a small premium. What Caltex also has to do is to maintain their pricing position until such a time that the market realises that they have a better product and they can raise their prices above the market. The current margins are good and viable for the long term14.3PromotionCaltex should embark on a sales promotion project with the help of a high profile sports person to be identified. It will be effective to carry out these promotions on a Saturday after month end, at major shopping malls , when they can reach a maximum amount of people. It is also recommended that a strategy that creates an awareness of the capabilities of the Caltex products be embarked upon. Currently the perception is that all oils are the same and people do not focus on the real capabilities of the different brands.While workshops understand a bit about lubrication, their objective is to make this filter down to the vehicle owner so that they may be able to demand that only the best be used in their car. Some customers take a 5 litre of the oil of their choice when they take their cars in for service. This is the level of awareness that Caltex should seek to create.All Caltex carry approvals and endorsements from all the major OEM’s in the various fields. The plant is to publicise the OEM approvals. For example Caltex has the only AA approved unleaded fuel and Caltex does not utilise this edge to the maximum. The average person on the street does not know this, yet market research has shown that most people are aware of the motto for Castrol as “A Can of the Best”.The approvals of the products should be loudly displa...
