https://www.linkedin.com/pulse/20141030120943-73811546-the-best-kept-secret-for-sales-success-when-sellinglubricants-globally-and-not-only-lubes-greases
The Best Kept Secret For Sales Success When Selling Lubricants
October 30, 2014
Mark Twain said he could teach anyone how to get what he wants; he just couldn't find anyone who truly knew
what he wanted. I agree. Most people don’t know what it is they really want to achieve. They often know what
they don’t want, and then that’s where their focus and energy goes—to what they don’t want.
Being unclear on exactly what you want is one of the biggest stumbling blocks to success. If you’re not achieving
the success you desire, there’s a good chance you haven’t really defined what you want.
And since you are reading this article- it is obvious that you truly know the secret already- you know what you
want: you want to sell your lubricants globally.
Five Steps for Success:
1. Identify strategic regions that you would like to start with. Take small, conservative baby steps before you
have a global presence. If you are in the lubricants industry- you should research industry reports prepared by
Kline, NLGI, ILMA, ELGI, STLE; do your homework by reading industry specific magazines, blogs and follow major
oil corporations movements.
Start gathering strategic intelligence:

Current competitive positioning and an assessment of the strengths and weaknesses of that position ( +
SWOT)

Consideration of the pros and cons of a relatively small set of strategic actions, to help improve that
position, and the advancement of a set of recommendations based on this analysis
For example in North America and Europe the lubricants market is rather flat- so I suggest that you should look
into the market development within the BRICS countries. Countries such as Nigeria, Ghana, Cameroon, and
Angola are becoming market players. Now is a great time to get the ball rolling by moving your products into
these new territories. For example, one of the lube companies sells a product with one type of packaging in
Nigeria (grease, automotive segment) and has revenue over USD 20 Mil/Year. In the emerging markets you need
to have strong, local partnership.
2. Choose main market segments, such as marine, automotive power generation, refrigeration, etc. Be creative
and try to identify a niche segment. Understand the customers and their purchasing power. You don’t want to
play the lubricant price game- none of us do. If you want to be successful, be creative and know your competitors
and their segments.
For example, recently, I was researching lubricants for the pet food industry and I made some interesting
discoveries:

There are few competitors

The end-user isn’t spoiled with a consultative selling approach.
Besides the greater profit, you have the privilege of selling lubricants for the equipment where your puppy’s
food is made, and work with people who have a great passion for their industry.
Always remember the fundamental principle of competition: If everyone can do it, it’s difficult to create and
capture value from it.You must assess competitors within dynamic market environments.
3. Have clear business development plans: market share, return on assets, return on investment, breakeven
point, plan revenues and unit operation income are items that can and should be considered in the short term,
mid-term and long-term. Don’t forget about the exit strategy- just in-case. Prepare the product & competitive
life cycle analysis.
Have a five forces analysis ready prior to entering the new territory:
1. Threat of new entrants
2. Substitutes and complements
3. Power of suppliers
4. Power of buyers
5. Rivalry among current competitors
Work on Strategy Maps: To place your products based on two or three dimensions that capture either critical
elements, driving consumer preferences or important attributes, characterizing competition.
You must have a clear vision for the organic and non-organic growth.
Let’s say you have made a decision to conquer the Brazilian grease market. Remember about high import taxes,
and if you are embracing manufacturing, think about sourcing of your raw materials. The Brazilian Government
regulates every step of your existence in the marketplace: from where you get your base stock (Only “Petrobas”
+ Minimum Order Quantity+ Regulated Price) and lithium hydroxide (Only “Companhia Brasileira de Litio”, same
story on the MOQ & Price) - to your regulatory and executive decisions. Even with these hurdles, the Brazilian
market can be very attractive and guess what- you can ROCK IT!
4. Consider customer centric approach: Focus on the right customers for strategic advantage; develop life time
valued customer base.
Customer centricity is a strategy to fundamentally align a company’s products and services with the wants and
needs of its most valuable customers. That strategy has a specific aim: more profits for the long term. It is about
identifying your most valuable customers—and then doing everything in your power to make as much money
from them as possible and to find more customers like them.
The way I see things—and the way I want you to start seeing things—is that not all customers are created equal.
Not all customers deserve your company’s best efforts. And despite what that tired old adage says, the customer
is most definitely not always right. Because in the world of customer centricity, there are good customers… and
then there is everybody else. That latter group shouldn’t be ignored, of course. I’m not suggesting that you ditch
them, those are the customers who also hold the key to your company’s long-term profitability. The Pareto
principle: rule 80-20- remember? If not- google.
5. Train your own staff and hire local professionals: Clarify the major sets of activities, skills, and resources that
drive value to customers. At this stage you should analyze your capabilities. Such as processes, people (skills),
systems, etc. This knowledge will help you to highlight when investment might be needed to move onto other
capabilities or to refresh existing capabilities.
Key Items:

Train your sales team!

Find and hire Rainmakers!
But make sure you hire staff with well-developed people skills. Everything else- you will teach them.
Your sales account managers need to learn the art of the consultative sales:

Increase sales & margins

Reduce sell-cycle time

Create loyal customers

Continually improve

Sell the price increase

Outperform competition

Create lasting value

Empower, inspire and motivate their teams

Long term success and leadership
Learn the game and how to play it. Be energetic, honest, and persistent and yes- don’t work too hard, work
smart!
Other miscellaneous: local warehouse, safety stock levels, minimum order, logistics, customs regulations and
imports compliance, strategic partnership, etc.
My late coach and mentor, Hans-Christian Wisløff of Danfoss, who, I was honored to learn from on many global
business developments, told me once:
“In an established market, you need to find out which segment to focus on! Avoid general terms and phrases, be
ultra-precise and use the “language” chosen by the customer. For example: A consultant in the marine business
is called a Naval Architect- use the right words.”