Commercial Sector Toolkit Your Performance Advantage Caltex tools v 1.0 FOR CALTEX INTERNAL USE ONLY © 2007 Caltex Products Company. All rights reserved. Using the toolkit This toolkit PDF is fully interactive: – – – – SECTION SECTION 11 2 2 3 APP 3 These buttons give you access to each of the sections within the toolkit The home button will take you back to the cover page The arrows take you chronologically backwards and forwards through the pages within each section The navigation bar in the tint panel on the right will take you directly to a specific part of the section – simply click on the heading. The arrow indicates the section page that you are on All linked documents can be accessed by clicking on the underlined link name/address. The files can also be opened directly from the toolkit CD for ease-of-use within sales presentations (these are divided into two folders on the CD – one which contains the files that a salesperson may need to open with a potential customer, and one which contains the files that are confidential or for internal use only). Commercial Sector toolkit – for Caltex internal use only Using the toolkit Toolkit introduction Toolkit contents Toolkit introduction This Commercial Sector toolkit is designed to enable you to succeed in gaining new, profitable business from both existing and prospective customers. Within the toolkit you will find : – market overview and trends – training and reference materials – sales advice and guidelines – tools to support selling on benefits and customer value, rather than price – sample brochure template – standard proposals and presentations – document templates Please note that all images used in this toolkit and its linked tools are for toolkit use only and must not be duplicated/used for any other purpose. Commercial Sector toolkit – for Caltex internal use only Using the toolkit Toolkit introduction Toolkit contents Toolkit contents Background, strategy and knowledge About Caltex and Chevron Global Lubricants (CGL) Sales Process support Introduction and Sales Process alignment Using the toolkit Standard sales approach Toolkit introduction Commercial Sector background Sales support tools Toolkit contents Caltex technology Links and contacts Commercial Sector strategy Customer Value Proposition (CVP) Templates Products PowerPoint templates Solutions Word templates Creating new Proofs of Performance (POPs) and Customer Testimonials Commercial Sector toolkit – for Caltex internal use only Section 1: Background, strategy and knowledge Commercial Sector toolkit – for Caltex internal use only Background, strategy and knowledge Section 1: Contents About Caltex Caltex and Chevron corporate overview The Caltex Vision, Values & Strategic Intent Commercial Sector background Market overview Commercial channel trends Fleet management Customer profile Competition Caltex technology Caltex technology / R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy Development process overview Commercial Sector toolkit – for Caltex internal use only Key market focus Executive Summary Customer Value Proposition (CVP) Customer segmentation Caltex positioning platform Caltex Delo Advantage programme Products Product menu Heavy Duty Motor Oil (HDMO) products Ancillary products: – Coolants – Drive-line products – Grease – Heavy Duty (HD) Fuel Additives - Fuels: Diesel Complexity Management Solutions Global outline and Commercial Sector overview Global Solutions portfolio Commercial Sector Solution examples About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Solutions Background, strategy and knowledge SECTION 1 About Caltex Commercial Sector toolkit – for Caltex internal use only Section 1: About Caltex Caltex & Chevron corporate overview The following links provide a salesperson with key facts about Caltex and Chevron and its leading position in the global energy sector. Reference to this information will help to raise our level of credibility as a supplier. High-level overview slides are included in the standard sales approach presentation below, which can also be found in Section 2: Standard sales approach. About Caltex Caltex & Chevron corporate overview The Caltex Vision, Values & Strategic Intent Commercial Sector background Caltex technology Commercial Sector strategy CVP www.caltex.com.au Products www.chevronlubricants.com CommSalesPres.ppt Commercial Sector toolkit – for Caltex internal use only Solutions Section 1: About Caltex The Caltex Vision, Values & Strategic Intent Why is it important to refer to the Caltex Vision, Values & Strategic Intent The answer is simple. Even though you will receive a range of information and tools that will provide specific support for sales in the Commercial Sector, the way we behave and bring the Caltex Vision, Values and Strategic Intent to life will communicate a clear message to the market and provide a key differentiator for us in the market place. Please take time to familiarise yourself with the content by using the links below. We recommend that you always have a hard copy available and we would encourage you to share the document with your customers, prospects and other contacts in the sector. About Caltex Caltex & Chevron corporate overview The Caltex Vision, Values & Strategic Intent Commercial Sector background Caltex technology Commercial Sector strategy CVP Products http://col/ Then click on the section entitled ‘have you seen?’ Commercial Sector toolkit – for Caltex internal use only Solutions Background, strategy and knowledge SECTION 1 Commercial Sector background Commercial Sector toolkit – for Caltex internal use only Section 1: Commercial Sector background Market overview: global Overall, global finished lubricants’ demand growth is flat due to a number of environmental, technological, and economic factors. About Caltex However, lubricant demand in individual markets varies greatly from high growth, emerging markets (especially China and India) to flat or declining, mature markets like North America and Western Europe. The largest Commercial markets are North America and Asia Pacific. Commercial Sector background Market overview Commercial trends Fleet management Customer profile Competition Implications: Caltex technology – – It is important for Caltex to identify and understand profitable growth opportunities in key regions and focus resources on key growth markets within Australia. Different go-to-market strategies and tactics will be required for key countries depending on market opportunities (e.g. emerging, high growth markets like India and China require different strategies to a mature, flat growth market like the USA). Commercial Sector toolkit – for Caltex internal use only continued Commercial Sector strategy CVP Products Solutions Section 1: Commercial Sector background Market overview: global Heavy duty commercial marketplace – general trends: About Caltex – Diesel technology and product specifications are evolving rapidly to meet reduced exhaust emission requirements (NOx and particulates), improve fuel economy, and extend service intervals. Accordingly, there is a trend toward globalisation of both engine technologies and lubricant specifications. Commercial Sector background Market overview Commercial trends Fleet management Customer profile – More stringent technical specifications for lubricants make product differentiation more difficult and increase competitive / margin pressures. – Global transition to ultra low levels of sulphur in diesel fuels and lubricants to meet stringent exhaust emission requirements. – HDMO base stock transition away from Group I to Group II/II+/III and, ultimately, to Gas to Liquids (GTL). Competition Caltex technology Commercial Sector strategy CVP Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Commercial Sector background Market overview: global – – Demand for monogrades in Asia Pacific and Latin America will continue in the near future. Increased competitive pressure (quality products, marketing, pricing, etc.) We are utilising our industry knowledge and position to benefit and provide value to our customers About Caltex Commercial Sector background Market overview Commercial trends Fleet management Customer profile Competition Caltex technology Commercial Sector strategy CVP Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Commercial Sector background Market overview: global Projected demand growth, by region About Caltex Forecast lubricant demand growth by region, 2005-2015 [source: Kline] Commercial Sector background Market overview Asia Pacific (3.5%) Commercial trends Central & South America (1.9%) Fleet management Customer profile Central & Eastern Europe (1.5%) Competition Near & Middle East (1.2%) Caltex technology Commercial Sector strategy Australia (0.6%) North America (0.4%) CVP Products Western Europe (3.3%) Solutions -5 -4 -3 -2 -1 0 1 2 3 4 5 Growth rate in % Commercial Sector toolkit – for Caltex internal use only continued Section 1: Commercial Sector background Market overview: global Lubricant volume demand [source: Kline] About Caltex USA Commercial Sector background Market overview China Russia Commercial trends Japan Fleet management Australia Customer profile Competition India Germany Caltex technology Brazil Commercial Sector strategy Canada CVP UK France Products Other Solutions 0 5 10 15 20 25 30 35 40 Volume demand in million tonnes Commercial Sector toolkit – for Caltex internal use only continued Section 1: Commercial Sector background Market overview: global Predominant commercial customer maintenance fluid-related issues: Predominant Original Equipment Manufacturer (OEM) fluid-related issues: – reduced operating and maintenance costs – emission control/regulation Fleet management – after treatment systems – extended fluid service life – reduced cycle time Customer profile Competition Caltex technology – optimum fuel economy – technical support – extended fluid service life – hassle-free fluid performance – extended equipment life – inventory consolidation – minimal warranty claims – distribution and availability – product availability Commercial Sector strategy CVP Products Solutions – aftermarket profit opportunities Commercial Sector toolkit – for Caltex internal use only Commercial Sector background Market overview Commercial trends – engine design changes – extended equipment life – warranty protection About Caltex continued Section 1: Commercial Sector background Market overview: regional Additional global industry background and specific regional trends can be accessed via the following links: About Caltex – Kline and Company website: www.lubelink.com Commercial Sector background Market overview – Kline-online for Caltex employees: www.klineonline.com Commercial trends User ID: Chevron Password: oil2cpc Fleet management Please note that this site has been established for CGL employees only. Use the above link to access this site, but remember, this is for CGL employees only and you MUST NOT allow anyone outside of CGL access to the link. Customer profile – PFC website: www.pfcenergy.com From the PFC Energy page, click on "client login" to enter the client site and select a service from the "membership services" menu. User is automatically authenticated into site. Competition Caltex technology Commercial Sector strategy CVP Products – Lubrizol website: www.mylubrizol.com Solutions Sign in and register as Chevron Global Lubricants Commercial Team. Commercial Sector toolkit – for Caltex internal use only continued Section 1: Commercial Sector background Market overview: strategic significance of Europe Europe has a global strategic importance within the Commercial Sector: – Five of the major HD Commercial OEM’s are based in Europe > Volvo/Renault > Scania > DaimlerCrysler > MAN > Iveco – Technology trends are led from Europe (SCR, AdBlue, Low SAPS oils) About Caltex Commercial Sector background Market overview Commercial trends Fleet management Customer profile Competition Caltex technology Links with US Commercial Sector strategy > Freightliner part of DaimlerChrysler CVP > MACK part of Volvo Products > New 12.9 Litre Paccar MX engine developed and manufactured at DAF Solutions facility in Eindhoven > MAN link with Navistar Commercial Sector toolkit – for Caltex internal use only Section 1: Commercial Sector background Commercial channel trends Observed Commercial Sector channel trends: – More customers are leasing vehicles and moving to contract maintenance About Caltex Commercial Sector background Market overview – Move to third-party service providers (OE workshops, independent workshops, truck stops, quick lubes, mobile maintenance service providers, etc.) Commercial trends Fleet management – Owner Operators are moving from Do-it-Yourself (DIY) to Do-it-for-Me (DIFM) in more mature markets – OEM and other franchised dealers are an influential force in the marketplace Customer profile Competition Caltex technology – Growing influence of hypermarkets and large retailers Commercial Sector strategy – Many commercial products sold in small, higher margin package sizes (B2C) CVP Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Commercial Sector background Commercial channel trends Channel implications: – We must continue to be selective in choosing channel partners that effectively meet customer requirements to represent our commercial offering – We need to build commercial capability by leveraging important channels in key markets. About Caltex Commercial Sector background Market overview Commercial trends Fleet management Customer profile Competition Commercial Sector channel strategy: – Mature markets: focus on profitable growth while increasing penetration/share of wallet with existing customers including fleets, owner operators, OEMs and other franchised dealerships and independent workshops. – Developing markets: align with existing resellers/mass merchants/dealer networks to establish a position and build distribution capability. Commercial Sector toolkit – for Caltex internal use only Caltex technology Commercial Sector strategy CVP Products Solutions Section 1: Commercial Sector background Fleet management Fleet owners and maintenance managers are generally conservative when it comes to trying anything new because of the potential impact that a failure may have on vehicle uptime. This applies not only to lubricants, but Caltex and CGL has: also to the services provided. You can – a proven track record of exceeding the win their confidence and trust by requirements of some of the largest, most demonstrating that you know and demanding, sophisticated fleets in the world understand their industry. – solid, cooperative working relationships Fleet management is most comfortable with some of our industry’s leading OEMs with suppliers whose representatives and truck assemblers can demonstrate good knowledge and experience of fleet operations. About Caltex Commercial Sector background Market overview Commercial trends Fleet management Customer profile Competition Caltex technology Commercial Sector strategy – research and development capabilities CVP that are unsurpassed in our industry Products – a high degree of proficiency, integrity, and business acumen among our sales team members Commercial Sector toolkit – for Caltex internal use only continued Solutions Section 1: Commercial Sector background Fleet management: purchasing process The purchasing process at some fleet operations can be complex with a decision-making unit consisting of a group of people. The degree of influence that each person has also varies according to the fleet operation and business circumstances. About Caltex Commercial Sector background Market overview Commercial trends Potential decision-making unit participants: Fleet management – maintenance who ensure maximum reliability and availability of equipment, and the related products and services required to meet operating objectives and business goals Customer profile – purchasing who often focus on lowest cost instead of cost-effectiveness Commercial Sector strategy – corporate management who negotiate regional and global supply agreements, often influenced by both maintenance and purchasing CVP Competition Caltex technology Products Solutions Remember that it is important to have contacts at all levels. Commercial Sector toolkit – for Caltex internal use only continued Section 1: Commercial Sector background Fleet management: purchasing process It’s vitally important, wherever possible, The Purchasing Process could involve a to quantify the value and savings that a combination, or all, of the following fleet operation achieves when using elements: Caltex products and services. – a Request for Information (RFI) If the benefits are well documented and Commercial Sector background Market overview – a Request for Quote (RFQ) Commercial trends – a detailed presentation to one or several Fleet management reported, they can significantly influence the decision makers who decide which products to source or put out to tender. The documented proof is a hurdle to competitors. influencers within the customer’s organisation – spot purchase(s) About Caltex Customer profile Competition Caltex technology – the utilisation of a third party supplier Commercial Sector strategy – a direct supply arrangement CVP Products Solutions Commercial Sector toolkit – for Caltex internal use only Section 1: Commercial Sector background Customer profile Some of the largest transportation About Caltex and/or logistics companies in the Commercial Sector background Market overview world are existing Chevron customers so you can feel Commercial trends confident that our products and Customer profile services portfolio will meet your Competition needs – and that we have a Caltex technology wealth of excellent, world-class Commercial Sector strategy experience to draw upon and CVP reference. Products Fleet management Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Commercial Sector background Customer profile Global fleet customers include: Australian fleet customers include: – Ryder (USA) – Boral Australia About Caltex – Penske (USA) – Hanson – Frito Lay/Pepsi (USA) – Mini Tankers Commercial Sector background Market overview – Tesco (UK) – K & S Freighters Commercial trends – British Telecom (UK) – Queensland Rail Fleet management – Barcelona Bus (Spain) – Trans Pacific Industries Group Customer profile – Empresa de Ônibus Pássaro Marrom SA (Brazil) – Baileys Marine Competition Caltex technology Commercial Sector strategy Our global OEM customers include: – Volvo – Scania – Mack – Freightliner – PACCAR – International – DAF – Isuzu Commercial Sector toolkit – for Caltex internal use only CVP Products Solutions Contact your marketing manager for a full regional customer listing. continued Section 1: Commercial Sector background Customer profile: summary Typical customer attributes: Customers are generally: – Long term commitment for volume – Output- and cost-driven About Caltex – Risk adverse Commercial Sector background Market overview purchase of lubricants is usually through a tender/bid process – Price and overall value are key factors to win contracts (regional/global decision) – Value-added products and services that can be quantified and illustrated in the form of cost savings are key to winning contracts – Service and delivery is a key factor to retain business – Knowledgeable – Under considerable time pressures and impatient with suppliers that don’t add value – Sceptical, but open to evaluating Commercial trends Fleet management Customer profile Competition Caltex technology products/services that may improve productivity and equipment reliability, and reduce overall operating costs Commercial Sector strategy CVP – Up to 10% of products can usually be Products purchased outside of any contract Solutions – Ancillary products are a significant asset (if available) Commercial Sector toolkit – for Caltex internal use only Section 1: Commercial Sector background Understanding the competition Competition varies dramatically from market to market. Based on feedback from Regional colleagues, quality summary analysis for key competitors has already been compiled by marketing. To supplement this internal information, we suggest that you refer to the PFC documents below as well as Kline and/or competitive websites for additional secondary data to enhance the competitive information that you already maintain. About Caltex Commercial Sector background Market overview Commercial trends Fleet management Customer profile Competition Caltex technology See Section 2: Links and contacts for links to Kline and competitive websites (global and local) Commercial Sector strategy CVP PFC_LubMarketShares_05.xls Products Solutions PFC_LubMkt PositioningOvw_6.pdf Commercial Sector toolkit – for Caltex internal use only Background, strategy and knowledge SECTION 1 Caltex technology Commercial Sector toolkit – for Caltex internal use only Section 1: Caltex technology Caltex technology: leadership and innovation As a leading premier lubrication marketer, Caltex Lubricants recognises the importance of adding value to customers’ businesses and is committed to enhancing the customer’s bottom line through shared product knowledge, industry expertise and value-added services. Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Caltex & Chevron’s lubrication history is legendary – reinforced by an impressive list of industry “firsts” – earning CGL its renowned reputation. Since the early part of the 20th century, CGL has amassed a wide range of industry credentials that built the brand value enjoyed today. Commercial Sector strategy CVP Moving the industry forward on behalf of its customers, CGL has introduced a host of product and technology advancements. Commercial Sector toolkit – for Caltex internal use only About Caltex Products Solutions continued Section 1: Caltex technology Caltex technology: leadership and innovation The list of industry milestones continues to grow and illustrates Caltex and Chevron’s track record of adding value to customers’ business by exceeding their expectations and extending the life of their oil equipment. Our customers benefit from our technology advantage, industry knowledge and relationships with OEMs that result in reduced operating costs. About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy CVP Use this link to view the listing of automotive firsts: Products Solutions CommercialAutoFirsts.doc Commercial Sector toolkit – for Caltex internal use only continued Section 1: Caltex technology Caltex technology Caltex has long been recognised for introducing technically superior lubricants to market before those products were required by OEMs or users. Our ability to continually maintain this position can be achieved with perpetual on-going dialogue between: Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations – Our Research and Technology – OEMs – industry associations – customers/users that make up the Commercial Sector. These efforts have helped take Caltex and Chevron to a market leadership position in several countries, and have generated a high level of value-added benefit for the OEMs and end-use customers. Chevron’s Research and Technology group is considered by many to be the petroleum industry’s benchmark research organisation. Commercial Sector toolkit – for Caltex internal use only About Caltex continued Commercial Sector strategy CVP Products Solutions Section 1: Caltex technology Caltex technology: global technology centres Richmond Technology Centre and Technology HQ USA Rio de Janeiro Technology Brazil Ghent Technology Belgium About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy Sydney Technology Australia CVP Products Globally linked regional technology centres – Caltex has a unique global technology position with research centres on four continents. Commercial Sector toolkit – for Caltex internal use only continued Solutions Section 1: Caltex technology Caltex technology: local technical support Sales support: – provides technical training About Caltex – assists in developing a differentiated performance position via product testing and data interpretation – assists on customer visits – investigates performance/quality issues – develops and publishes technical information – provides support in procuring OEM approvals – manages licensing activity such as The American Petroleum Institute (API), The Association des Constructeurs Européens d' Automobiles (ACEA), The Japanese Automotive Standards Organisation (JASO), etc. Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy Manufacturing support: CVP – publishes and maintains product formulations and specifications Products – ensures accuracy of production product testing Solutions – investigates manufacturing or testing issues Commercial Sector toolkit – for Caltex internal use only continued Section 1: Caltex technology Caltex technology: research and development Advances in equipment and process technology are constantly being sought and developed to sustain the demand for higher productivity and lower operating costs. It is vital, as sales people representing a major supplier of products and services to the industry, that we: – understand the technology – recognise and communicate the importance of good lubrication technology to fleet operations – speak their industry language About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy CVP Use this link to view more detail on CGL’s R&D resources: Products Solutions Research+Development.ppt Commercial Sector toolkit – for Caltex internal use only Section 1: Caltex technology Commercial Sector technology In the late 1980s, engine manufacturers introduced a two piece piston design with a forged steel crown and an aluminium skirt that enhanced engine performance and lowered emissions. Combined with a trend toward higher horsepower engines and higher operating temperatures, this change also impacted the performance requirements placed on engine oil. Caltex’s top-tier heavy duty motor oil products met and exceeded the standards – by controlling high temperature oxidation and protecting against wear – ultimately extending engine life. About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy CVP Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Caltex technology Commercial Sector technology In the 1990s, engines with retarded fuel injection timing systems hit the road in response to even more rigorous emissions requirements for reduced nitrous oxides. Although this change has reduced exhaust emissions, these systems result in significantly higher levels of soot in the crankcase oil. This can severely jeopardise engine performance by plugging filters, increasing wear and reducing fuel economy. Caltex’s top-tier heavy duty motor oil products evolved to again exceed industry standards and guard against these problems, resulting in optimum engine performance and extended engine life. About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy CVP Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Caltex technology Commercial Sector technology Engines fitted with exhaust gas recirculation (EGR) provided a more permanent solution to rigid emissions regulations, restoring fuel economy lost by retarding the fuel injection timing. However, EGR systems return potentially harmful combustion acids to the cylinder where the oil is exposed to them. Using Caltex’s premium heavy duty motor oil products with optimised base reserve protects engines from corrosive damage and still maintains maximum soot dispersancy. About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy CVP Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Caltex technology Commercial Sector technology Selective Catalytic Reduction technology To meet the Euro IV emission standards in Australia in 2008 and beyond, many OEMs are fitting Selective Catalytic Reduction (SCR) exhaust after-treatment systems to their new engines. SCR will also be required in the USA to meet 2010 emission standards. With an SCR system, in-cylinder combustion can be better optimised for fuel economy and convert harmful NOx and CO into CO2 and H2O. SCR can operate with any Caltex lubricant Exhaust gas that meets the standards containing AdBlue tank nitrogen oxides specified for the Metering unit engine. About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy CVP Ammonia + water vapour + nitrogen oxides © DaimlerChrysler AG Commercial Sector toolkit – for Caltex internal use only CO2 + water to the environment continued Products Solutions Section 1: Caltex technology Commercial Sector technology Diesel Particulate Filter technology To meet the USA 2007 emission standards, the majority of OEMs are fitting Diesel Particulate Filter (DPF) exhaust after-treatment systems. DPF is also very likely to be fitted in Europe to meet Euro V. DPFs are normally a wall-flow ceramic honeycomb filter device that removes carbon particulate in the exhaust gas by passing it through pores in the matrix. The API introduced the new category API CJ-4 in October 2007 to reduce the potential for lubricant derived ash build Engine up in the filters. Clean exhaust exhaust API CJ-4 has maximum limits set on the level of Sulphated Ash, Phosphorous and Sulphur to ensure compatibility with catalysed exhaust filters. © Copyright Johnson Matthey Pic 2005 Commercial Sector toolkit – for Caltex internal use only Caltex currently offers CJ-4 lubricants to exceed the performance requirements of this category. (Delo 400 LE to be launched October 2007) continued About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy CVP Products Solutions Section 1: Caltex technology Commercial Sector technology As we move into the 21st century, global emission regulations will become even more stringent, requiring a reduction in the particulate matter and nitrous oxide in exhaust fumes. Future design changes are likely to require a combination of these technologies (EGR + SCR + DPF) and new advancements in engine oil formulations and performance. Scientists working for Chevron are already developing the technology needed to meet these new engine requirements and ensure our toptier products continue to provide the ultimate engine protection and enhance the performance of commercial vehicles. About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy CVP Products Solutions Commercial Sector toolkit – for Caltex internal use only Section 1: Caltex technology Coolant technology Caltex extended life coolants represent a significant opportunity across the whole Commercial Sector. Based on actual coolant sales, a clear opportunity exists for Caltex to increase our “share of wallet” with existing customers on this high margin product. We have a clear competitive advantage with extended life coolants, which can be used as a profitable wedge product to gain new business or to complement and strengthen our existing supply position. Caltex extended life coolants offer: – demonstrable performance benefits – demonstrable economic benefits – approvals by all major OEMs About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy CVP Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Caltex technology Coolant technology: technical training The following coolants technical training links have been created for sales people who want a greater insight into coolants and more specifically Caltex’s proprietary extended life coolant technology. About Caltex Commercial Sector background – Refer to the technical presentation below to improve your competence in this differentiated product line. Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations – The video below highlight the benefits of Caltex’s extended life coolants. Commercial Sector strategy CoolantsTechnicalTraining.ppt CVP Coolants_Caltex SA.exe Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Caltex technology Coolant technology: technical training – A more in-depth training programme is also available on Lubricants University – see the link below. – Should you require any additional training materials or for a more complete understanding of the global and regional coolant markets, a list of key regional and global contacts has been added. About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy CVP www.lubricantsuniversity.com Products Solutions CoolantsTechContacts.doc Commercial Sector toolkit – for Caltex internal use only Section 1: Caltex technology Lubricants University Powered by Chevron, LubricantsUniversity.com offers editorial content and instructional courses that deliver lubricants and coolants related knowledge. The site is designed for individuals in the lubrication and maintenance markets that are interested in obtaining more information on relevant technologies, trends, issues and solutions. To complement the editorial content, LubricantsUniversity.com offers online courses designed to further enhance the skill set of maintenance professionals. The courses provide a cost and time effective way for individuals to expand their knowledge of important issues, trends and technologies. Some of the courses available include: About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy – fundamentals of lubrication – heavy duty engine lubrication CVP – fundamentals of lubricant additives – heavy duty coolants Products – automotive grease lubrication – automotive gear lubrication Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Caltex technology Lubricants University A portion of the resources on LubricantsUniversity.com are available free – just by registering. Training courses and subscriptions for online training can be purchased after you are a registered member. Visit the link below to register. For more information contact Darren Newton on 9250 5467 About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy CVP Products Solutions www.lubricantsuniversity.com Commercial Sector toolkit – for Caltex internal use only Section 1: Caltex technology Technical papers and presentations Caltex & Chevron’s Technology has been a global lubricants industry leader and innovator for many years – accordingly, we have a wide array of inhouse expertise: – a large number of award winning technical papers* (SAE papers and white-papers), authored by our own Jim McGeehan from the Richmond Technology Centre, that specifically address issues of concern to your customers – two Advanced Oil Technology presentations which provide general reference/background information on engine oil lubrication – the Truck & Bus Marketing and Technical Review which gives an introduction to the Commercial Sector market, main market influencers and drivers, as well as descriptions of products and applications, and a brief section on recognition of automotive engine components. *Please refer to the note on the next page for conditions of use for these technical papers Commercial Sector toolkit – for Caltex internal use only continued About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy CVP Products Solutions Section 1: Caltex technology Technical papers and presentations This technical training material can be found on the “Heavy Duty Engine Lubrication: technical papers and presentations” CD which is included with this toolkit. *Please note that the technical papers are included on the CD with permission from SAE International. When using the CD, you are permitted to view these papers and print one copy at no cost for your use only. The pdf files and printout of these SAE papers may not be copied, distributed or forwarded to others or for the use of others. Permission is for this one-time use only. New requests are required for subsequent editions, for reprints or excerpts, or for other uses of the material. About Caltex Commercial Sector background Caltex technology Caltex technology/R&D Commercial Sector technology Coolant technology Lubricants University Technical papers and presentations Commercial Sector strategy CVP A copy of the “Heavy Duty Engine Lubrication: technical papers and presentations” CD is enclosed with this toolkit. If your copy is missing, please contact your local marketing specialist/manager Commercial Sector toolkit – for Caltex internal use only Products Solutions Background, strategy and knowledge SECTION 1 Commercial Sector strategy Commercial Sector toolkit – for Caltex internal use only Section 1: Commercial Sector strategy Commercial Sector strategy The Commercial Sector strategy which underpins our sales and marketing activity is based on intensive research, thorough analysis of market trends, a deep understanding of our customers and the dependable distribution channels we use to reach them. This section describes the areas of focus which will determine how we will achieve our objectives: the opportunities, goals, key market trends, brand proposition, positioning and pricing/margin principles. The Executive Summary which follows gives an overview, with links that allow you to drill down into areas of particular interest. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy Development process Key market focus Executive Summary CVP Products Solutions Commercial Sector toolkit – for Caltex internal use only Section 1: Commercial Sector strategy Development process overview Strategy development considerations About Caltex – The Commercial Sector strategy will be the long-term, strategic roadmap to help achieve specific goals and provide directions beyond 2010. In the short term, it considers the present status of the business and current organisational capabilities. Commercial Sector background Caltex technology Commercial Sector strategy Development process Key market focus Executive Summary CVP Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Commercial Sector strategy Development process overview – The Commercial Sector strategy was developed by utilising available global, regional and country data, information, analysis, interpretation, insight and conclusion. Sources include: About Caltex Commercial Sector background Caltex technology > Kline Report – for market and competitive data > Global Product and Sector Sales (GPASS) 2004 and 2005 – for CGL volume and sales data Commercial Sector strategy Development process Key market focus > competitive websites – for competitive information > customer/consumer research (e.g., global segmentation, positioning studies, concept tests, country customer research studies) > CVP Products Solutions regional inputs on marketing initiatives, programmes and forecasts. Commercial Sector toolkit – for Caltex internal use only Executive Summary continued Section 1: Commercial Sector strategy Development process overview – The Commercial Sector strategy considers ways to maximise opportunities in key target customer segments, while optimising cross-sector opportunities and providing enterprise consistency, cost reduction opportunities, and global synergies. – The Commercial Sector strategy provides focus and priority on opportunities that provide the highest returns and that optimise the efficiency of available resources to achieve the desired goals. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy Development process Key market focus Executive Summary CVP Products Solutions Commercial Sector toolkit – for Caltex internal use only Section 1: Commercial Sector strategy Key market focus The Commercial Sector will maximise the growth opportunities in our markes to achieve goals by: About Caltex Commercial Sector background – following the principle of market focus based on greatest opportunity for growth/profit. Caltex technology – concentrating global resources/programmes on key markets; the intent is to leverage global initiatives/programmes opportunistically across other markets. Focus will enhance the efficient use of resources, global consistency, and cost reduction through global synergy. Commercial Sector strategy Development process – ensuring that key regional markets continue to be important – supported as appropriate by regional and global teams. CVP Key market focus Executive Summary Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Commercial Sector strategy Key market focus: market size & growth rates Top global markets – Commercial Sector 2004 [source: Kline 2004] Market size (million tonnes) and growth rate (%) DECL I NI NG LOW G ROW TH About Caltex HI G H G R OW TH Commercial Sector background USA 2.5MT Caltex technology Commercial Sector strategy Development process 2MT China 1.5MT Key market focus Russia 1MT Executive Summary India 0.5MT CVP Products -8% -6% -4% -2% Germany Italy Japan Iberia UK France Commercial Sector toolkit – for Caltex internal use only 0 2% 4% 6% Brazil Thailand Indonesia Canada South Korea Mexico Australia 8% Solutions Section 1: Commercial Sector strategy Executive Summary Key elements of the Commercial Sector strategy: About Caltex 1 Chevron’s Mission Critical goals – Chevron will be the market leader in Commercial Heavy Duty applications. #1/#2 in market share in select focus markets and in earnings per barrel. 2 Market focus – Caltex will achieve long-term growth by selectively focusing on key strategic markets and effectively maximising available resources. Key markets will include those with the greatest growth potential and those with significant existing share. 3 Brand focus – we will maintain our premium position with our Delo® brand. The long-term objective is to leverage brand strengths and actively support a single commercial product brand family in our market. We will follow globally consistent brand positioning, identity and image standards. Commercial Sector toolkit – for Caltex internal use only continued Commercial Sector background Caltex technology Commercial Sector strategy Development process Key market focus Executive Summary CVP Products Solutions Section 1: Commercial Sector strategy Executive Summary 4 5 Commercial Sector positioning – Commercial Sector strategy will target commercial fleet owners, operators, managers and professional mechanics who place high value on quality products and reliable service, attributes they themselves offer to their own customers. Product line – the Commercial product line will be aligned around a standardised global product menu based on customer requirements and consistent with cost reduction and on-going complexity reduction initiatives – minimising the number of products/formulations with “similar” product profiles. – We will leverage the brand equity of Delo by offering a full range of lubricant/coolant products and services. We will improve Caltex “share of wallet” for higher margin ancillary products among existing customer base and new customers. – We will have a differentiated top-tier offering in key product segments to drive increased margin for those products and provide a halo effect to the mid- and lower-tier products. Commercial Sector toolkit – for Caltex internal use only continued About Caltex Commercial Sector background Caltex technology Commercial Sector strategy Development process Key market focus Executive Summary CVP Products Solutions Section 1: Commercial Sector strategy Executive Summary 6 7 OEMs – our objective is to grow and strengthen relationships with select prioritised OEMs. Additional work in progress: continued collaboration with all key stakeholders (Global Accounts, Technology, Regional Marketing and Sales, Additive Partners, China/India work teams, etc.) to develop specific strategic plans for each target OEM. Distribution and channels – address target customers through both direct sales and “retail” channels. Greater focus on installed channel and develop the appropriate installer business models that will help grow, influence, and improve profitability. Apply additional short term focus to build distributor capability in developing markets. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy Development process Key market focus Executive Summary CVP Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Commercial Sector strategy Executive Summary 8 9 Pricing – pricing guidance will focus on managing pricing discipline aggressively to maximise profit/margin opportunity and build/protect brand equity for Delo®. Prices must be locally benchmarked against the leading competitors in each product tier. Note: actual price bands, price floors and price targets will be addressed by the Regional Pricing Team. Differentiation – we will leverage our Commercial expertise to enable both large and small commercial business owners to profitably provide the same high level of service and reliability to their customers. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy Development process Key market focus Executive Summary CVP Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Commercial Sector strategy Executive Summary The links below provide more detail on the Global Commercial Sector strategy: – Commercial Sector marketing strategy provides the sector definition, the rationale and supporting arguments for our brand positioning and brand focus intents – Commercial product line strategy is focused around a standardised sector-specific global product menu, based on meeting customer needs in key markets About Caltex Commercial Sector background Caltex technology Commercial Sector strategy Development process Key market focus Executive Summary CVP Products CommSectorMktingStrategy.ppt CommProductLineStrategy.ppt Commercial Sector toolkit – for Caltex internal use only Solutions Background, strategy and knowledge SECTION 1 Customer Value Proposition (CVP) Commercial Sector toolkit – for Caltex internal use only Section 1: CVP Customer segmentation About Caltex Chevron commissioned a major market research project across a wide range of commercial, industrial and owner-operator customers and prospects to investigate what really drives their selection of lubricants. Commercial Sector background Caltex technology Commercial Sector strategy CVP Customer segmentation Caltex positioning platform Caltex Delo Advantage Prgm Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: CVP Customer segmentation: Commercial & Industrial – Like all lubricants companies we have traditionally used a segmentation model based on the nature of the customer’s business, e.g. Large Fleets. – It is far more effective to present value propositions to customers that are compatible with their approach to lubricant purchasing decisions. Customers in the same type of business can have vastly different needs. Combined, the process and driver differentiators for commercial and industrial customers create a simple, six segment, purchasing-attribute based model. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Customer segmentation Caltex positioning platform Caltex Delo Advantage Prgm Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: CVP Customer segmentation: Commercial & Industrial The main processes and drivers for each of the segments are summarised in the following table: CUSTOMER SEGMENTATION BUYING PROCESS GROUP 1 Low Complexity – Largely unstructured, informal buying process TYPICAL PURCHASE PROCESSES & DRIVERS – Short buying cycle BUYING PROCESS GROUP 2 Medium Complexity – Engage in formal buying process with a number of defined events BUYING PROCESS GROUP 3 High Complexity – Employ a complex, lengthy, and formal purchasing process with multiple decision points and buying events – Often a single decision-maker – Will evaluate select suppliers against defined business and technical requirements BUYER SEGMENT C1 "Little Gems" BUYER SEGMENT C2 "Rough diamonds" BUYER SEGMENT C3 "Performance driven" BUYER SEGMENT C4 "Diligent proprietor" BUYER SEGMENT C5 "Technocrats" BUYER SEGMENT C6 "Smooth operators" Purchase decision motivated largely by product performance Purchase decision motivated largely by price Purchase decision motivated by product performance and OEM recommendation Purchase decision motivated by combination of service levels & price Purchase decision motivated by perceived product performance Very balanced purchase decision influenced by considerations over quality, price & service Most likely to purchase lubricants directly from retail store Credit/financing terms also an important consideration Desire a close, collaborative relationship with lubricant supplier Will pay more for product with greatest performance Brand loyal, and most will only consider top tier brand More likely to consider a supplier if they can satisfy fuel and lubricant needs Place emphasis on ease of doing business Often need product quality to exceed industry specs Low likelihood of switching Unlikely to deviate from initial fill brand Low likelihood of switching Often require product to perform above and beyond industrial specifications Prepared to pay more for the best performance lubricant Tend to buy directly from supplier Will switch if product performance or OEM recommendation changes Desire single point of contact Prefer suppliers who can provide fuel and lubricants – Likely to conduct detailed oil sampling, field testing and/or quality checks before making the final purchase decision Multiple decision makers involved in decision Strong degree of importance placed on quality of supplier relationship (close and collaborative) High switching potential based on price or better product Multiple decision makers involved in decision High switching potential due to price changes or relationship problems ZOOM IN ON CHART Commercial Sector toolkit – for Caltex internal use only continued About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Customer segmentation Caltex positioning platform Caltex Delo Advantage Prgm Products Solutions Section 1: CVP Customer segmentation: insights Insights around “how” and “why” a customer purchases a lubricant will help us to differentiate customers within an industry by: – those that are likely to be receptive to a Caltex value proposition and provide a good profit opportunity – those that are unlikely to be receptive or profitable. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy We must continue to focus on the nature of our customers’ operation, because they will expect to meet sales personnel that understand their business. However, we have to recognise and respond to the fact that two customers in the same business may have very different approaches to lubrication decisions. CVP Customer segmentation Caltex positioning platform Caltex Delo Advantage Prgm Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: CVP Customer segmentation: analysis – Using the customer “classification” tool in conjunction with global sales, we classified the top 20% of our customer portfolio in 10 markets. About Caltex – We then linked this data to GPASS to analyse the relative profitability by customer segment. Caltex technology Commercial Sector background Commercial Sector strategy Results: – C2 and C4 segments delivered half of all Chevron’s profits made during FY04-05. – For the Commercial Sector, the majority of C2 and C4 customers are medium to large fleets. These customers account for nearly half of all profits for the Commercial sector. CVP Customer segmentation Caltex positioning platform Caltex Delo Advantage Prgm Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: CVP Customer segmentation: analysis Our Target Customer Segments (C2/C4) are receptive to a customer-focused strategy About Caltex Commercial Sector background Service Price Performance Low complexity Product leadership Customer focus Relationship / expertise Value Commercial Sector strategy High complexity CVP Customer segmentation Operational efficiency Caltex positioning platform Caltex Delo Advantage Prgm Value orientation Products Ease of doing business Solutions One-stop shop (the right products) Commercial Sector toolkit – for Caltex internal use only Caltex technology Section 1: CVP Caltex positioning platform What we’ve learned so far… Our positioning – “Human Energy” People working together to deliver energy for human progress About Caltex Commercial Sector background Caltex technology Competitor positioning Internal business strategy – Lack of consistency, focus, and connection to parent brand – No one owns customer focused – People are the thread that pulls our strategy together (“People First”) – Customer Focus Caltex positioning Commercial Sector strategy CVP Customer segmentation Caltex positioning platform Caltex Delo Advantage Prgm Target market insights – Relationship / expertise – Value orientation – Ease-of-doing-business – One-stop shop (the right products) Commercial Sector toolkit – for Caltex internal use only Products Solutions continued Section 1: CVP Caltex positioning platform Defining value to the customer About Caltex Customer value equation = customer benefits People first + Global sector expertise Innovative, passionate Caltex team Industry-specific knowledge base and experience Long-term committed partner Efficient and scalable ‘best-practice’ global deployments Human energy for commercial success One-stop single dedicated source + Balanced product & Solutions portfolio Industry-specific products Depth for fit with any application Street credibility (e.g. #1 choice, partner with some of world’s largest fleets) Commercial Sector background = Best in class TCO Caltex technology Commercial Sector strategy Combination allows Caltex to provide greatest value through acquisition and ownership CVP Customer segmentation Caltex positioning platform Caltex Delo Advantage Prgm Global sourced for competitive pricing Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: CVP Caltex positioning platform Caltex positioning – statement of relevant differentiation Target audience For our target customers looking for… a full-service lubricants partner, providing a holistic approach to assessing and fulfilling their specific industry needs About Caltex Commercial Sector background Caltex technology Single point of difference Reason to believe Customer value Only we (Caltex) can rightfully claim to be… knowledgeable people with experience helping customers make the right choices This is backed by our… – unrelenting focus on our customers and spirit of partnership – unrivalled sector experience and expertise – complete product line to support sector requirements at competitive pricing Commercial Sector strategy CVP Customer segmentation Caltex positioning platform Caltex Delo Advantage Prgm Products And gives our audience the benefit of… Solutions People first + Global sector expertise Commercial Sector toolkit – for Caltex internal use only + Balanced product & Solutions portfolio = Best in class TCO continued Section 1: CVP Caltex positioning platform Developing a global messaging platform – positioning Caltex and externalising our CVP and offer: Caltex positioning CVP(s) About Caltex Offer(s) Commercial Sector background Caltex technology People first + Global sector expertise + = Best in class TCO Balanced product & Solutions portfolio e.g. Performance Advantage programme e.g. local “Delo” promotion Commercial Sector strategy CVP Customer segmentation – direct – indirect – owner/operator Caltex positioning platform Caltex Delo Advantage Prgm FIXED / GLOBAL CUSTOM / LOCAL Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: CVP Caltex positioning platform CUSTOM / LOCAL FIXED / GLOBAL About Caltex + Global sector expertise + Balanced product & Solutions portfolio ONE = Best in class TCO Knowledgeable people with experience in helping the customer make the right choices. CVP / Campaign Direct, Indirect, Owner/Operator XYZ “Performance Advantage”programme Commercial Sector background Caltex technology Commercial Sector strategy CVP Customer segmentation Caltex positioning platform Caltex Delo Advantage Prgm Offers / Promotions MA NY E XTER N AL PRIMARY AUDIENCE People first AUDIENCE VERSIONS INTER NA L Caltex positioning “Delo Advantage” promotion Products Solutions S HO RT Commercial Sector toolkit – for Caltex internal use only SHELF LIFE LO NG Section 1: CVP Caltex Delo Advantage programme The Delo® Advantage About Caltex Commercial is a critical contributor to Caltex’s business and a key enabler in Chevron’s global sector strategy. Delo has always symbolised reliability, quality and trust to our customers. Commercial Sector background Caltex technology Commercial Sector strategy The Delo Advantage programme is designed to build on this strong foundation and leverage the historical equity of our global brands into other product and service areas. With the Delo Advantage programme, sales colleagues will have a value proposition to bring to our target customers (both fleets and owner operators). Commercial Sector toolkit – for Caltex internal use only continued CVP Customer segmentation Caltex positioning platform Caltex Delo Advantage Prgm Products Solutions Section 1: CVP Caltex Delo Advantage: description The “Delo Advantage” concept is an adaptable programme, developed primarily for B2B customers. It can be customised geographically to take account of local supply logistics, technical support and customer demands. About Caltex Commercial Sector background Caltex technology Our “Delo Advantage” will deliver a compelling proposition to our customers and prospects, which implies that using a full suite of “Delo Advantage” products and services from Caltex can deliver measurable savings in Total Cost of Ownership to their enterprise. Commercial Sector strategy CVP Customer segmentation Caltex positioning platform Caltex Delo Advantage Prgm Products Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: CVP Caltex Delo Advantage: description This is supported by the demonstrated benefits of the Delo Advantage suite of products and services, and a level of value that customers can take to the bank. About Caltex The Delo Advantage programme is about providing real, bottom-line value to a customer and not solely a means of price discount. Caltex technology Commercial Sector background Commercial Sector strategy CVP Customer segmentation Use these links to view Caltex Delo Advantage Programme description, key messages and product listings: Caltex positioning platform Caltex Delo Advantage Prgm Caltex DeloAdvantageProg.doc Products Caltex DeloAdvantageKeyMssg.doc Solutions Caltex DeloAdvantageProductListings.xls Commercial Sector toolkit – for Caltex internal use only continued Section 1: CVP Caltex Delo Advantage: Customer success story Customer success story: Delo® Advantage selected by Ryder Trucks About Caltex Commercial Sector background “The success of this relationship has exceeded our expectations. We continue to reduce our operating costs as a result of the support and value we receive from Chevron’s services, people, and products.” Caltex technology Peter Harte, Ryder Trucks [source: Factiva/Business Wire, 2 October 2006] CVP Customer segmentation Commercial Sector strategy Ryder Systems, Inc. was looking for an oil fleet and have made their trucks more supplier. What they got was a partner that reliable for their customers. Chevron’s helps them save millions every year. dedication to the lubrication and coolant Ryder selected Chevron not only for their needs of Ryder’s 180,000 unit fleet and superior Delo products, but for their the 800 maintenance facilities that serve Products extensive experience in fleet maintenance. them ultimately saves Ryder millions Solutions Delo lubricants and extended life coolants every year in maintenance costs. have helped extend the life of the Ryder Commercial Sector toolkit – for Caltex internal use only continued Caltex positioning platform Caltex Delo Advantage Prgm Section 1: CVP Caltex Delo Advantage: Customer success story Customer success story: Delo® Advantage selected by Penske Truck Leasing About Caltex Commercial Sector background “We considered many factors in selecting Chevron as our lubricants supplier…we needed a supplier that has proven the quality of its products on the road and the ability to provide exceptional service levels. We also sought a supplier with expertise related to the complicated issues surrounding the new emissions regulations.” Caltex technology Marc Althen, Senior Vice President, Administration and Facilities, Penske Truck Leasing Caltex positioning platform [source: Factiva/ Business Wire, 2 October 2006] Commercial Sector strategy CVP Customer segmentation Caltex Delo Advantage Prgm Penske Truck Leasing is a leading global Penske’s products include full-service truck transportation provider, operating over leasing, contract maintenance, commercial Products 216,000 vehicles and serving customers and consumer truck rentals, transportation Solutions from over 1,000 locations in North and warehousing management and supply America, South America, Europe and Asia. chain management solutions. Commercial Sector toolkit – for Caltex internal use only Background, strategy and knowledge SECTION 1 Products Commercial Sector toolkit – for Caltex internal use only Section 1: Products Product menu The Commercial Product line has been developed around a standardised sector-specific global product menu, based on meeting customer needs in key markets. It covers all lubricant and coolant product groups that a Commercial customer will require, allowing us to fully meet customer needs and compete for a larger “share of wallet”. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP The Product Menu is also “tiered” indicating increasing performance and customer value. More information on moving customers to higher value products is contained later in the toolkit. Products Product menu HDMO products Ancillary products Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Product menu: tiering The Product Menu for the Commercial Sector is divided into four performance tiers and covers all product categories in all geographies: About Caltex Tier 1 Commercial Sector background Tier 2 – branded, premium, exceptional performance; unsurpassed products – industry standard, branded, differentiated performance; branded offer of products of similar performance to other oil companies, but at higher specification or performance Tier 3 – industry standard, market offer; branded product similar to all other major oil companies Tier 4 – cost-competitive offer; Caltex branded, price sensitive commercial offer Commercial Sector toolkit – for Caltex internal use only Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products Complexity Mngmnt Solutions Section 1: Products Heavy Duty Motor Oil products Commercial Heavy Duty Motor Oil (HDMO) performance is classified by three main industry bodies covering the globe: About Caltex – The American Petroleum Institute (API) Commercial Sector background – The Association des Constructeurs Européens d' Automobiles (ACEA) Caltex technology – The Japanese Automotive Standards Organisation (JASO). Commercial Sector strategy The attached presentation gives an overview of these organisations and the HDMO standards that they have issued. CVP Products Product menu HDMO products Ancillary products Complexity Mngmnt Solutions MainBodies+HDMO stnds.ppt Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products HDMO products: performance The overall performance of a lubricant can best be described by a “spider chart” illustrating the relative performance of the lubricant across various dimensions assessed by standard industry tests. These dimensions are graphically represented on the next page to indicate the relative levels of defined performance and customer benefits based on various API classifications. Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products Complexity Mngmnt Please note that Caltex’s premium differentiated products are designed to exceed the minimum requirements in one or more of these dimensions of performance; areas that are meaningful to deliver value to a customer. Commercial Sector toolkit – for Caltex internal use only About Caltex continued Solutions Section 1: Products HDMO products: performance Major performance attributes of HDMO meeting API standards About Caltex [Spider Diagram comparing API categories, courtesy of Lubrizol] Commercial Sector background Oxidation After-treatment compatibility Caltex technology Oil aeration Commercial Sector strategy Shear stability Used oil viscometrics CVP Filter plugging Sludge CJ-4 CI-4 Plus CI-4 Piston deposits Ring & liner wear CH-4 CG-4 Corrosion Oil consumption CF-4 CF Valvetrain wear Commercial Sector toolkit – for Caltex internal use only Soot handling continued Products Product menu HDMO products Ancillary products Complexity Mngmnt Solutions Section 1: Products HDMO: key products Selecting engine oil involves more than just the price of the lubricant. The engine oil the customer chooses can have a tremendous impact on maintenance costs, engine life, and equipment availability. About Caltex Delo®400 LE SAE 15W-40 Caltex technology Delo 400 LE is the latest addition to the Commercial Sector strategy Delo family of products. CVP Formulated to improve the protection and Products Product menu HDMO products Ancillary products Complexity Mngmnt performance of both the engine power system and advanced emission control systems like Diesel Particulate Filters, Delo 400 LE provides up to 30% enhanced engine wear reduction versus Delo 400 CI-4 Plus. It also provides improved deposit and oil consumption control and soot-related viscosity control. technology and advanced low ash additives to give outstanding engine protection in both new and legacy engines while helping to maintain the life of the exhaust after-treatment system. ® Delo 400 LE combines ISOSYN Commercial Sector toolkit – for Caltex internal use only Commercial Sector background continued Solutions Section 1: Products HDMO: key products Delo®400 Multigrade SAE 15W-40 other CI-4 Plus products by improved soot Delo 400 Multigrade is a smart investment thickening control and wear protection. This because it significantly reduces, if not will allow customers to benefit from eliminates, the possibility of engine failure extended oil drain potential or extended due to poor lubrication. It combines ISOSYN® equipment life. technology and advanced additives to the most cost-effective solution to keeping our customer’s vehicles in operation, day to day and year after year. This means real savings for our customer’s business. Delo 400 is as much a business solution as a proven performer in hardworking equipment. Delo 400 Multigrade has been developed to provide our customers with exceptional overall performance, differentiated from Delo Gold SAE 15W-40 Commercial Sector strategy Delo Gold is a high-performance heavy-duty engine oil designed for a range of diesel and CVP protection for mixed fleets, commercial Products Product menu HDMO products Ancillary products Complexity Mngmnt trucks and buses. Solutions gasoline engines requiring API CH-4, CF, or SL performance lubricants. Formulated with ISOSYN technology, it provides superior Delo Gold provides customers with a high performance, cost effective lubricant that provides exceptional wear and deposit protection in modern diesel engines. Commercial Sector toolkit – for Caltex internal use only Commercial Sector background Caltex technology disperse soot, control deposits, and significantly slow engine wear. It provides About Caltex continued Section 1: Products HDMO: talking points Change up in API service category About Caltex A customer in a “regular” fuel sulphur-level country (e.g. 500 ppm) who is currently using an API CG-4 engine lubricant, like Delo® Silver, will see benefits by moving to API CH-4, like Delo® Gold. Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products HDMO: talking points Spider Diagram comparing three Delo® Engine Oil products – Delo 400 Multigrade SAE 15W-40 at CI-4 Plus, Delo Gold at CH-4 and Delo Silver at CG-4 [chart courtesy of Oronite] A review of the spider plot’s Piston deposits Shear stability 12 dimensions of lubricant Corrosion Soot thickening HEUI oil aeration Used oil cold pumpability improvement in performance CVP performance in four others. Delo 400 Delo Gold Oil consumption Delo Silver Sludge Commercial Sector toolkit – for Caltex internal use only Products Product menu HDMO products Ancillary products Complexity Mngmnt Solutions Ring & liner wear Filter plugging Caltex technology Commercial Sector strategy additional proven Valvetrain wear Commercial Sector background performance shows clearly the on six of the parameters and Oxidation About Caltex continued Section 1: Products HDMO: talking points By using the information in the spider plot, we can discuss the benefits of upgrading with customers, such as the potential improvements in engine wear, deposit formation protection and reductions in oil consumption. About Caltex Commercial Sector background The largest improvement that a customer When qualifying a CG-4 product, limited oil Caltex technology will see is in the area of soot control. The consumption protection is assured by the API proven performance offered in the areas of industry testing. Reduced oil consumption Commercial Sector strategy filter plugging and sludge protection and translates to decreased piston deposits and CVP improvements in soot thickening control less oil top-off between oil changes. will provide customers with real benefits in A customer moving to CH-4 will also see terms of improved engine life, oil flow and potential equipment life benefits from filter life, or extended oil service intervals lower engine wear as CH-4 lubricants are Products Product menu HDMO products Ancillary products Complexity Mngmnt when compared to their CG-4 predecessors. tested to ensure performance related to Solutions You can discuss with a customer who is ring and liner wear, valve train wear, and using CG-4 lubricant the oil consumption improved bearing wear. control performance of a CH-4 product. Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products HDMO: talking points Change from monograde to multigrade engine oils About Caltex The major reason a customer would elect to change from monograde to multigrade is to access the modern API and ACEA classifications or because some important OEM approvals are only available on multigrade products. Other factors are reduction in oil consumption, improved starting during cold weather, improved piston deposit control and improved engine cleanliness. – It is most likely that lower oil consumption is due to the higher “low shear” viscosity of typical (SAE 15W-40) oils at piston and liner temperatures, that reduces the throw-off from the rings and oil pumping losses from the rings. It may also provide optimum oil film thickness between the ring and cylinder liner at high shear conditions. Commercial Sector toolkit – for Caltex internal use only continued Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products Complexity Mngmnt Solutions Section 1: Products HDMO: talking points – – There are fuel economy benefits by moving from an SAE 30 to SAE 15W-40. Improvements are partly due to better oil circulation at start-up. About Caltex Several customers who have switched from monograde to multigrade Commercial Sector background complain of either “dirty” drain oil and/or low oil pressure. The “dirty” visual Caltex technology image experienced is primarily due to the higher dispersant multigrade oil, “cleaning” up deposits of soot left in oilways and in other parts of the engine, Commercial Sector strategy holding these in suspension and removing them from the engine with the oil CVP drain. The low (or lower) oil pressure is caused by the viscosity of the Products Product menu HDMO products Ancillary products Complexity Mngmnt multigrade oil being lower under start-up conditions. This aids rapid flow of the lubricant to the valve train and provides full protection to the engine faster. Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products HDMO: talking points Sludge formation in a heavy duty diesel engine About Caltex – Sludge formation in a heavy duty diesel engine is primarily a result of soot generation that the lubricant is unable to keep in suspension. These large Commercial Sector background soot agglomerations are deposited in the cooler areas of the engine. Soot Caltex technology generation occurs under conditions when the air-fuel mixture is not at the Commercial Sector strategy design ratio. Over-fuelling under engine acceleration when the turbocharger cannot match the engine airflow demand is likely to cause poor combustion and high soot generation. – Stop-Go service is particularly severe in the generation of excessive soot and one where protection against excessive deposit formation in rocker covers, oil sump pan and oil pathways is needed. – Products Product menu HDMO products Ancillary products Complexity Mngmnt Solutions Soot thickening, filter plugging and sludge formation are measures that indicate the relative ability of a lubricant to protect against damage caused by insufficient dispersancy. Commercial Sector toolkit – for Caltex internal use only CVP continued Section 1: Products HDMO: talking points – Customers who report high sludge formation normally see improvements when using a lubricant with higher dispersancy. Lubricants that have been About Caltex formulated to keep soot particles in suspension will avoid the problems Commercial Sector background associated with depositing soot in the colder regions of the engine. Caltex technology – Look for lubricants that have improved sludge performance and if available, improved soot thickening performance. Caltex engine oils have been Commercial Sector strategy recognised for decades for their ability to minimise sludge formation and CVP effectively disperse soot. Products Product menu HDMO products Ancillary products Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products HDMO: talking points Fuel dilution and how it affects engine lubrication About Caltex – – Fuel dilution is often difficult to detect in a heavy duty diesel lubricant, and is both common in modern diesel engines and seriously affects the wear Commercial Sector background performance of the lubricant. Caltex technology Fuel dilution occurs due to leakage of fuel past seals in the fuel injector, or Commercial Sector strategy injector pump. Fuel dilution has become more prevalent with modern cam driven, high pressure unit injectors. The heavy fractions of the fuel gather in The difficulty in detection occurs because although fuel dilution “thins” the Products Product menu HDMO products Ancillary products Complexity Mngmnt lubricant causing a reduction in the kinematic viscosity (KV), this change in Solutions the oil sump, diluting the additive and reducing the oil viscosity and load carrying characteristics. – CVP KV can also be the result of viscosity modifier shearing and the reduction may also be off-set by soot thickening. Careful analysis of the used oil is needed to detect fuel dilution. Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products HDMO: talking points – – If fuel dilution is suspected due to higher than expected bearing wear or additive depletion, sophisticated laboratory tests are required to confirm the About Caltex presence of fuel in the oil. Commercial Sector background However, if a diesel smell is detected in the used oil, then advise checking the fuel injectors for sealing and shut off and the fuelling rate to minimise the amount of unburned diesel that can contaminate the lubricant. – Caltex oil analysis solution can help customers identify and address the negative effects of fuel dilution. Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only Section 1: Products Ancillary products: strategy and focus A key part of the Commercial Sector strategy and product line strategy is a focus on selling the full range of lubricant and coolants products. Caltex has market-leading ancillary product technology expertise that we can leverage to generate additional profit opportunities. About Caltex Commercial Sector background Caltex technology – Ancillary product lines offer less price sensitivity and a greater unit margin opportunity relative to engine oil. Commercial Sector strategy – We have a significant profit opportunity by gaining a greater “share of wallet” with existing customers. Products Product menu HDMO products Ancillary products – This strategy supports the “Performance Advantage” concept by offering total customer vehicle protection. Future sales proposals should include the full range of (available) commercial products. – Work with OEMs to define new advanced ancillary product requirements – opportunity to get exclusive approvals and leverage OEM endorsements Commercial Sector toolkit – for Caltex internal use only continued CVP – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Section 1: Products Ancillary products: focus Typical bus lubricant requirements About Caltex Actual lubricant consumption varies by vehicle type, maintenance practices and quality of lubricant. Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products Engine oil Coolant Automatic transmission oil Photo: MAN Group Brake/clutch fluid Refrigeration oil Commercial Sector toolkit – for Caltex internal use only Power steering fluid Wheel bearing grease Differential gear oil continued – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Section 1: Products Ancillary products: focus Typical % share of consumption 2006 Global Commercial sales % Diesel engine oil 71% 86% Coolant 3% 5% PRODUCT GROUP Automatic transmission oil 3% 5% Differential gear oil 4% 3% Wheel bearing/ chassis grease 16% 1% Refrigeration oil 1% 0% Power steering fluid 1% 0% Brake fluid 1% 0% TOTAL: 100% – Current coolant and Automatic Transmission Fluids (ATF) sales are heavily influenced by success in NA – significant opportunity still exists in most key countries. 100% Commercial Sector toolkit – for Caltex internal use only – Significant opportunity exists for grease across all key markets. – Opportunity exists to upgrade customers to higher tier products that are not represented by this chart. Please note that there is no recommendation to de-emphasise diesel engine oil sales without appropriate profitability analysis. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Section 1: Products Coolant products Engine coolants are an important element in the overall maintenance of your commercial equipment: “ Greater than 20% of engine failures are related to engine cooling system failures.” About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP [source: CG Car-Garantie] The ability to provide the appropriate coolant and the solutions to facilitate maintenance will help reduce potential failures and save the customer money. Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Coolant products Caltex is a global technology leader for coolants About Caltex Caltex is part of a global coolant business – Active in all regions – Global production capability – Integrated product offering Commercial Sector background Caltex technology Commercial Sector strategy CVP > Differentiated products Products Product menu HDMO products Ancillary products > Proprietary OAT technology > OEM approved products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels > Strong factory-fill position > Regional solutions Complexity Mngmnt – Fit-for-Market solutions Commercial Sector toolkit – for Caltex internal use only Solutions continued Section 1: Products Coolant products Caltex extended life coolants have changed the coolant markets and created the extended life coolant category, providing enhanced customer benefits. Caltex Technology developed a new engine coolant technology – carboxylate technology. The coolants based on this technology provide: Commercial Sector background Caltex technology Commercial Sector strategy CVP – improved performance Products Product menu HDMO products Ancillary products – improved corrosion protection – lower maintenance cost – extended life up to 1,250,000 kms This technology has a proven performance and illustrated cost savings for the commercial customer providing solutions to engine cooling system problems and coolant concerns. Commercial Sector toolkit – for Caltex internal use only About Caltex continued – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Section 1: Products Coolants: industry drivers and trends Industry drivers and trends: About Caltex Extended service life There is an industry trend toward extending the length of time (intervals) between vehicle services. OEMs are offering longer warranties and are seeking to reduce warranty costs and improve product reliability through the use of longer drain programmes. Thermal stability In an effort to reduce exhaust emissions and increase fuel economy, OEMs are employing new engine technologies that require higher temperature cooling. Engine coolants are being reformulated to meet these higher temperature demands and offer greater protection. Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Coolants: industry drivers and trends Lower toxicity OEMs are seeking changes in coolant formulations to reduce toxicity. This trend is driven by increased consumer awareness. In addition, there is increased legislation to restrict the use of hazardous inhibitors in coolants. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy Cost control CVP New formulations in reducing the use of raw materials with volatile markets will stabilise product costs for a longer period of time, making them more attractive. Products Product menu HDMO products Ancillary products New technology developments New engine technologies, such as the use of lighter weight alloys and fuel cell engines, are requiring new coolant technologies and the discovery of new coolant materials. Commercial Sector toolkit – for Caltex internal use only continued – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Section 1: Products Coolants: product positioning Premium tier We will continue to leverage the current technological advantage that our coolants enjoy in the market place. This tier will include the modified and improved formulations, based on the current extended life coolant technology. There may be a significant opportunity to market our water-based XLI. In countries where there is no freezing requirement and where water is commonly used, an offering around XLI would offer an economic long life alternative. The premium tier products should continue to reflect the existing value propositions: – – – – state-of-the-art technology optimised protection for your equipment cost and maintenance reduction – saves money OEM approvals and endorsements Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions The product technologies and product claims will be globally consistent. Commercial Sector toolkit – for Caltex internal use only About Caltex continued Section 1: Products Coolants: product positioning Secondary tier (Aftermarket) These will be hybrid technology-based coolants to satisfy specific, regional needs in the market. Low tier/fighting grade (Aftermarket) These products will be “fit for market” products that will satisfy obvious needs: – from 3rd parties and distributors who sell volume – to those customers that prefer a low cost option This is a large market and we must ensure that we can offer a low cost alternative when we need to. Special products These products will be approached opportunistically, but will form part of our overall offering. Commercial Sector toolkit – for Caltex internal use only About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Section 1: Products Drive-line products In general, the automotive drive-line market continues to fragment as OEM requirements diverge, pushing our product portfolio toward a more complex structure. OEM partnerships and approvals remain critical for our success in the commercial sector. Product requirements, new hardware technology and extended warranty programmes are driving developments in driveline fluid technologies. OEMs are pushing for the development of fill-for-life products and extended drain products. These developments will further tighten the potential volume in aftermarket sales. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Drive-line products Commercial drive-line products are the liquid connection that ensures efficient use of the power generated by the engine. Caltex is committed to provide a full range of drive-line products to meet market demands, and both OEM and end-use customer requirements. They can be categorised based on their primary application. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy They include: CVP – Automatic Transmission Fluids (ATF) Products Product menu HDMO products Ancillary products – Power Steering Fluids (PSF) – Automotive Gear Oils – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels – Manual Transmission Fluids – Gear Lubricants Complexity Mngmnt – Future possibilities… one drum solutions (under development) Commercial Sector toolkit – for Caltex internal use only Solutions continued Section 1: Products Drive-line products: industry drivers and trends The key industry trends and drivers are: About Caltex 1. Fuel economy In an effort to gain even small improvements in fuel economy, there is a move by OEMs toward the use of lower viscosity axle and transmission products. There is also an increase in the use of higher grade base oils, such as Group III, Polyalphaolefin (PAO) and, ultimately, GTL. The trend toward increasing fuel economy has also led to the development of new hardware that requires specific niche lubricants. Key global Top tier and Premium tier products providing maximum fuel economy include: APPLICATION PRODUCT RECOMMENDATIONS Automatic Transmission Fluids (or ATF) • Synthetic ATF HD Automotive Gear Oils • Syn-Star GL Manual Transmission Fluids • Syn-Star TL Commercial Sector toolkit – for Caltex internal use only Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt • Delo Gear Lubricant Solutions continued Section 1: Products Drive-line products: industry drivers and trends 2. Extended service life OEMs are pushing for the development of products that support the high performance levels of their vehicles for longer periods of time between servicing. Drive-line fluids play an integral part in the long-term performance of a vehicle, and OEMs are requiring drive-line fluid with longer performance life. In some cases, customers are choosing to extend drain frequency beyond what OEMs recommend. To gain a competitive advantage and offer added value to their customers, OEMs are offering extended warranties and improved product reliability through the use of longer drain programmes, which require the use of higher quality drive-line fluids. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Drive-line products: industry drivers and trends Key global Top tier and Premium tier products providing extended service life include: About Caltex APPLICATION PRODUCT RECOMMENDATIONS Commercial Sector background Automotive Gear Oils • Synthetic ATF Heavy Duty Caltex technology Manual Transmission Fluids • Delo Trans Fluid ESI Commercial Sector strategy CVP In addition to the example products listed for maximum fuel economy, the products in this list were specifically designed to provide cost effective extended drain capabilities, based on a proprietary borate technology. See Section 1: Global product menu for full product details/listings, including drive-line products (available 2007). Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Drive-line products: industry drivers and trends 3. OEM Specifications OEM drive-line fluid specifications are becoming more and more specialised. OEMs are requiring exclusive, customised formulations, and using them as a selling point to take advantage of a potential revenue stream in the genuine fluid business. These customised formulations are leading to an increase in the average performance rating of the OEM drive-line fluid product offering. The OEMs are also supporting the growth of genuine formulations globally – they will no longer allow local approvals or even local variations of the approved product. The rationalisation process goes hand in hand; the globalisation will mean a reduction in formulations that are approved and available. This results in more stringent fluid requirements, higher quality products, less differentiation between approved products and an overall higher product cost. Commercial Sector toolkit – for Caltex internal use only About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Section 1: Products Grease The on-highway heavy-duty trucking industry has seen rapid movement on extended-drains and service intervals. About Caltex Commercial Sector background To keep pace with this, greases have recently gone through significant changes in performance, extending grease service intervals to match engine oil drains. Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Grease Lithium-complex has become the dominant grease type taking over from Lithium 12-Hydroxy Stearate in modern vehicles. Lithium-complex greases offer higher temperature range performance and thickener stability without losing any of the advantages of the former type Although OEMs generally have their own performance specifications and approval procedures, industry standards such as NLGI GC-LB specifications are becoming the accepted norm in some markets. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Grease Different types of wheel bearings on trucks About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products Driven: – often grease NLGI 2-3 – oil lubrication is also possible Non-driven: – often fluid greases – oil lubrication is also possible Complexity Mngmnt There is often a choice of grease lubrication versus oil lubrication for wheel lubrication which should be noted. Commercial Sector toolkit – for Caltex internal use only – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels continued Solutions Section 1: Products Grease: breadth of applications On a modern heavy-duty truck there are a number of different applications involved which may require one or more products: About Caltex – wheel bearing and chassis applications Commercial Sector background – fifth wheels Caltex technology Commercial Sector strategy – steering system bearings CVP – onboard lubricators (Lincoln/Vogel etc.) Products Product menu HDMO products Ancillary products Suggested products used in commercial applications include: – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels – Liplex EP – Texclad 2 – Delo® Grease E Complexity Mngmnt - Solutions Ultra Duty Grease Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Grease Recommendations for chassis lubrication About Caltex Unless there is a specific OEM guideline for a given component, Caltex greases will provide sufficient lubrication for 18,000-25,000 miles under normal driving/weather/terrain. For adverse conditions, re-greasing at shorter intervals is recommended. Commercial Sector background Caltex technology Commercial Sector strategy CVP Always follow OEM recommendations! Please note that grease compatibility can be a significant service problem, where greases of different thickener types are mixed. Unless certain that you are mixing grease of identical types, it is recommended to remove all traces of the old grease and completely re-pack bearings. Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Grease: grease soap compatibility chart Compatibility of binary grease mixtures LITHIUM LITHIUM COMPLEX ALUMINIUM COMPLEX CALCIUM LITHIUM LITHIUM COMPLEX Maybe CALCIUM SULFONATE COMPLEX About Caltex BARIUM COMPLEX SODIUM BENTONE (CLAY) POLYUREA Maybe Maybe Maybe Maybe Commercial Sector background Caltex technology Commercial Sector strategy ALUMINIUM COMPLEX CVP CALCIUM CALCIUM SULFONATE COMPLEX Maybe Maybe Maybe Maybe Maybe Maybe BARIUM COMPLEX Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels SODIUM BENTONE (CLAY) POLYUREA Maybe Maybe Maybe Maybe Maybe Maybe = possibly compatible/should be checked Commercial Sector toolkit – for Caltex internal use only Complexity Mngmnt Solutions Section 1: Products Heavy Duty Fuel Additives Utilise fuel additive product technology expertise to generate profit opportunity as part of complete product portfolio. – High margin profit opportunity for Caltex as well as third party maintenance suppliers and workshops About Caltex Commercial Sector background Caltex technology Commercial Sector strategy – Leverage an industry-leading technology that already exists – Supports strategy to build relationships with key OEMs and their component suppliers – Growth opportunities with OEMs around variable diesel fuel quality (low-sulphur lubricity issues and effect of bio-diesel on fuel system integrity) – Re-branding opportunities for genuine product offerings CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt – Supports Commercial Sector ancillary product focus Solutions – Support heavy duty and light duty diesel opportunity Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Heavy Duty Fuel Additives Fuel quality and type can affect diesel engine operation. Engine technology is changing at a faster pace today than ever before. Smaller engines with various designs have led to more critical engine conditions, which demand closer tolerances on operating systems. It is likely that every owner of a diesel engine has had, or will have, some experience with the deteriorating performance of the engine. One of the major causes for this change is the effect diesel fuel can have on the various fuel system components such as: – fuel tank – diesel fuel pump – fuel filter – fuel injection system. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Heavy Duty Fuel Additives Fuel tank Diesel fuel pump Diesel fuel is a corrosive liquid that can Diesel fuel contains sulphur. These days, About Caltex interact with the various components in low sulphur diesel fuels are mandatory in Commercial Sector background the fuel tank or the whole fuel system and many countries in response to cause corrosion. The formation of environmental regulation of diesel corrosion products in the system can be emissions. But the same refining Commercial Sector strategy detrimental as it will contaminate the fuel processes that remove sulphur from the CVP and cause blockages in the fuel system. fuel also remove materials that provide Products Product menu HDMO products Ancillary products necessary lubricity for the diesel fuel pump. Without the proper treatment and additives, the use of low-sulphur fuels could significantly shorten service life of diesel pumps. Most diesel fuel marketers add lubricity additives to the diesel fuel, – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt but in exceptional circumstances, consumers may unknowingly put low lubricity diesel fuel in their fuel tanks. Commercial Sector toolkit – for Caltex internal use only Caltex technology continued Solutions Section 1: Products Heavy Duty Fuel Additives Fuel filter Fuel injection system There are many ways that water can form The tip of the fuel injectors protrudes into About Caltex in a fuel tank. One way is through the combustion chamber. As a result, Commercial Sector background condensation due to temperature deposits can form on the fuel injectors: a variations in the fuel tank where fuel is thin layer of deposit can form on the walls heated when returning to the tank and and the other parts of the nozzles. This Commercial Sector strategy cooled down when the engine is idle. This “coking” effect can have a disruptive CVP small amount of water, if present in impact on the fuel spray-patterns, the untreated diesel, could lead to reduced injection timing and the droplet fuel filter life and premature wear on fuel- distribution in the combustion chamber. injection pump and injectors. Incomplete combustion will result, causing Products Product menu HDMO products Ancillary products Sediment and insoluble gums arising from cold start problems, misfiring, black the oxidation of unstable diesel fuels could smoke/increased emission generation, loss also block the fuel filter. of fuel economy and reduced engine power. Caltex technology – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Heavy Duty Fuel Additives Key issues around diesel fuel quality: Inconsistent quality around the world: About Caltex – limited standardisation and/or use of cheap alternatives (e.g. kerosene) – reduced combustion efficiency (Cetane number) Caltex technology Commercial Sector strategy Emissions – development of new fuel systems and fuel delivery systems – development of improved fuels > lower sulphur and aromatics leading to lower lubricity > higher cetane required CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Evolving technology: bio-diesel and other alternative fuels – wide range of base stocks and limited data available – limited test data available and potential performance concerns: > lower stability – biodegradation > higher deposit formation > impurities Commercial Sector toolkit – for Caltex internal use only Commercial Sector background Complexity Mngmnt Solutions continued Section 1: Products Heavy Duty Fuel Additives Customer benefits: About Caltex Detergent – clean up fuel injector deposits and/or keep injectors clean Lubricity Agent – compensate for the poor lubricity of severely hydrocracked diesel fuels Caltex technology – prevents acid-base reactions that cause fuel instability CVP Demulsifier – ensure clean phase separation between water and fuel Anti-Foam – prevent excessive foaming during filling Products Product menu HDMO products Ancillary products Corrosion Inhibitor – rust preventative Cetane Improver – direct measure of the fuel’s tendency to auto-ignite Complexity Mngmnt – addition of a Cetane Improver can increase the Cetane number by 3-5 units Solutions Fuel Stabiliser Commercial Sector toolkit – for Caltex internal use only Commercial Sector background Commercial Sector strategy – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels continued Section 1: Products Heavy Duty Fuel Additives CGL’s diesel aftermarket fuel additives have been formulated to address these key issues about diesel fuel quality: About Caltex – compensate for variances in fuel quality Commercial Sector background – compensate for use of bio-diesel Caltex technology Commercial Sector strategy – improves lubricity > compensates for use of Ultra Low Sulphur Diesel (ULSD) CVP > can compensate for use of kerosene Products Product menu HDMO products Ancillary products – improves fuel economy and restores horsepower – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels – minimises emissions – reduces wear and neutralises combustion acids – enhances stability and prevents gum formation and blockages Complexity Mngmnt – improves water tolerances Commercial Sector toolkit – for Caltex internal use only Solutions continued Section 1: Products Heavy Duty Fuel Additives CGL Fuel Additive product line PREMIER TIER CALTEX Delo Complete Fuel System Cleaner TEXACO Commercial Sector background PowerClean™ Diesel Delo Complete Fuel System Cleaner CHEVRON About Caltex SECONDARY TIER Texaco Diesel Additive Extra Delo Diesel Injector Cleaner Caltex technology Commercial Sector strategy Texaco Diesel Additive CVP Detergent Products Product menu HDMO products Ancillary products Lubricity agent Stabiliser – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Demulsifier Anti-foam Corrosion inhibitor Cetane improver Complexity Mngmnt Cold flow improver Commercial Sector toolkit – for Caltex internal use only Solutions continued Section 1: Products Heavy Duty Fuel Additives: key messages – Caltex can offer a complete diesel fuel additive package that provides total functionality About Caltex – Caltex has a unique detergency package based on proprietary mono-succinimide technology: Commercial Sector background Caltex technology Commercial Sector strategy > special production technique: high conversion rate > highly concentrated and pure product > very active detergent CVP – Caltex fuel additive technology has been tested and proven over our 30 years of diesel additive experience – Caltex has experience working with global OEMs to develop products that meet specific applications/requirements. Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Heavy Duty Fuel Additives: aftermarket Aftermarket customer benefits About Caltex Caltex Diesel Aftermarket Fuel Additives have been formulated to address the critical issues. It is not one additive, but a complete additive package designed to provide optimum protection and customer benefit from the potentially detrimental effects of poor quality diesel fuels. Commercial Sector background Caltex technology Commercial Sector strategy products to reduce the ignition delay of a CVP detergency package. This is an ashless, diesel fuel. Introducing the additive to phosphorous free package capable of diesel fuel at the recommended dosage providing “superior” detergency will typically increase the cetane number Products Product menu HDMO products Ancillary products performance as defined by the of the diesel fuel by 3-4. Inadequate Cummins material specification 60032. cetane number in a diesel fuel is certain – Cleaner engines due to a strong – Improved engine starting from a Cetane to create diesel knock as well as black improver additive, chemically known as smoke, noise and higher NOx emission, 2-ethyl hexyl nitrate. A cetane improver especially in high speed, high load diesel is introduced in our premium tier engines. Commercial Sector toolkit – for Caltex internal use only continued – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Section 1: Products Heavy Duty Fuel Additives: aftermarket – Pumps and injectors last longer. A – Fuel lasts longer in storage. A stabiliser lubricity improver will protect the fuel guarantees the fuel’s storage stability About Caltex pump and the fuel injector system from and prevents the formation of excessive wear. sediments or insoluble gums. Commercial Sector background – Filters last longer and engines run – Fuel flows better at lower ambient Caltex technology better with well-filtered fuel. A temperatures. Cold-flow improving Commercial Sector strategy demulsifier will help shed water and additives lower the fuel’s pour point CVP reduces the potential problems caused through interaction with wax crystals by wet fuel including filter plugging and that form at colder temperatures. This stalling. is a typical USA requirement and is Products Product menu HDMO products Ancillary products – Injection systems last longer and work incorporated in the USA regional better. Corrosion inhibitors protect the products, and also covered through injectors and the fuel system/fuel tank diesel specifications in EAME, Japan from corrosion and rust formation. and Korea. – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only Section 1: Products Fuels: Diesel We offer our customers the following Diesel fuels: Ultra low sulphur diesel Ultra low sulphur diesel has a high cetane About Caltex Ultra low sulphur diesel (ULSD) is an number (indicative of good ignition quality) automotive diesel with a maximum sulphur and controlled volatility to ensure easy Commercial Sector background content of 50 parts per million (PPM) or 50 starting, smooth combustion, maximum Caltex technology mg/kg. Lowering the amount of sulphur in power output and freedom from diesel Commercial Sector strategy diesel is a key step towards achieving knock. Its viscosity, low residue content and reduced emissions from existing vehicles and close distillation range ensure minimum facilitating the adoption of cleaner engine wear and corrosion, and proper lubrication technologies. It enables reduction in of fuel pump and injectors. emissions of hydrocarbons, oxides of Caltex ultra low sulphur diesel complies with nitrogen and particulates. AS 3570-1998 and State Environment It is recommended for use in high-speed Protection Regulations where applicable. It diesel engines widely used in automotive and may be used where BS 2869 Class A2 and industrial applications specifically where low ASTM D975 No. 2D is specified and has a soot emissions are desirable. gross energy per unit volume of approximately 38.2 MJ/L. Commercial Sector toolkit – for Caltex internal use only continued CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Section 1: Products Fuels: Diesel Caltex ultra low sulphur diesel complies with Extra Low Sulphur Diesel the Fuel Quality Standards Act (2000), and Some Caltex Terminals are now supplying About Caltex the Fuel Standard (Diesel) Amendment Extra low sulphur diesel (XLSD) which Determination 2002 (No 1). contains a maximum sulphur content of 10 Commercial Sector background KEY PROPERTIES parts per million (PPM) or 10 mg/kg. Caltex technology Sulphur, mg/kg 50 max All Caltex Terminals will supply Extra low Commercial Sector strategy Flash Point °C 61.5 min sulphur diesel by 1 January 2009. CVP Density at 15°C, kg/L 0.820 - 0.860 KEY PROPERTIES Cetane index 46 min Code 420 Lubricity, mm 0.460 max Products Product menu HDMO products Ancillary products Sulphur, mg/kg 10 max Flash Point °C 64 min Density at 15°C, kg/L 0.820 - 0.850 Cetane index 46 min Code 429 Lubricity, mm 0.200 max – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Fuels: Diesel Caltex Biodiesel Blends New Generation Diesel Caltex New Generation Fuels include diesel In 2006, Caltex introduced diesel enhanced About Caltex fuel enhanced with biodiesel. These blended with 2% biodiesel. Caltex New Generation fuels help reduce Australia's reliance on Diesel is suitable for use in all diesel vehicles Commercial Sector background fossil fuels and help to support regional and and equipment that run on automotive diesel. rural Australia. Caltex New Generation diesel can have a Commercial Sector strategy Biodiesel is made from renewable beneficial impact on exhaust emissions. CVP feedstocks, such as canola oil and tallow. It is Numerous studies have been conducted blended into diesel in varying ratios to create throughout the world on the tailpipe exhaust a number of biodiesel blends that meet our emissions from biodiesel fuels and their customer requirements. blends. While it is difficult to quantify Products Product menu HDMO products Ancillary products At Caltex, strong product stewardship is in emission trends from these results, it is place to ensure that biodiesel is known that biodiesel reduces particulate manufactured, transported, stored and matter, sulphur dioxide (SOx) and carbon blended to provide quality biodiesel blends monoxide (CO) emissions in blends*. The to our customers. average impact of biodiesel on exhaust emissions from heavy duty engines is shown on the next page. Commercial Sector toolkit – for Caltex internal use only continued Caltex technology – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Section 1: Products Fuels: Diesel Caltex New Generation Diesel enhanced with 2% biodiesel meets the Australia fuel standard for diesel. Eligibility for fuel tax About Caltex credits is not affected and you can claim Commercial Sector background exactly the same fuel tax credits as for any Caltex technology other Caltex diesel. There is no problem Commercial Sector strategy mixing Caltex New Generation Diesel with any other diesel and there should be no noticeable change in your vehicle’s fuel economy or power. Caltex New Generation Diesel is available from over 150 selected Caltex service stations. *Source: US EPA (the correlations are statistically valid although the source data showed significant scatter) CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Section 1: Products Fuels: Diesel Bio B5 Diesel In 2005 Caltex was one of the first to bring About Caltex biodiesel blends to retail pumps when it Commercial Sector background launched the trial of Bio B5 Diesel (a 5% blend of biodiesel in diesel fuel) at a small number of service stations in NSW. Today, basis) range from 1.5% to 4.18% for B5 Caltex technology relative to ULSD*. Commercial Sector strategy Caltex also supplies Bio B5 Diesel to Caltex Bio B5 Diesel meets Caltex's strict commercial truck and bus fleets. fuel quality standards and the Australian fuel Caltex Bio B5 Diesel can help reduce greenhouse gas emissions (GHG). The calculation of GHG emissions must be based on a full life cycle and the amount of benefit will depend upon a number of factors such as feedstock, manufacture process and percentage of biodiesel in the blend. GHG emissions reductions (on a full life cycle Commercial Sector toolkit – for Caltex internal use only quality standard for diesel. Most Original Equipment Manufacturers and Fuel Injection Equipment Manufacturers are comfortable that a 5% biodiesel blend is suitable in diesel applications. We recommend that you check and verify with your equipment CVP Products Product menu HDMO products Ancillary products – Coolants – Drive-line – Grease – HD Fuel Additives – Fuels manufacturer. Complexity Mngmnt *Source: 2003 Appropriateness of a 350ML Biofuels Target – ABARE, CSIRO and BTRE Solutions continued Section 1: Products Complexity Management – Complexity Management will be a Marketing-led approach that delivers an optimised “fit to market” portfolio, enabling the organisation to achieve sector objectives. Complexity Management is a globally driven and regionally executed sustainable process not a short term local complexity reduction initiative. – Through 2007, product menu-driven complexity management will be a phased implementation and integrated into future business plans and management systems. Implementation will incorporate best practices and become an integral part of the Portfolio “Life Cycle” management process, which will manage new product introductions and on-going product line maintenance and reduction plans. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Product menu HDMO products Ancillary products Complexity Mngmnt Solutions Commercial Sector toolkit – for Caltex internal use only continued Background, strategy and knowledge SECTION 1 Solutions Commercial Sector toolkit – for Caltex internal use only Section 1: Solutions Solutions It is becoming ever more important to differentiate our offering from that of our major competitors based on the lubricant products that we offer. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy The scope of our offering must increase and include: – – – – CVP Products other fluids services Solutions expert consultancy Solutions Global outline and sector overview Global Solutions portfolio Solution examples Solutions are an important element of the Caltex value proposition. Commercial Sector toolkit – for Caltex internal use only continued Section 1: Solutions Solutions: definition A Caltex Solution: – is a value proposition that contains an element of service as well as product(s) – may be simple, such as lubricant sample analysis, or as complex as a fluid management programme It is vitally important that we respond to customer needs in terms of solutions and provide value propositions that they appreciate and are willing to pay for. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Solutions Global outline and sector overview Global Solutions portfolio Solution examples Commercial Sector toolkit – for Caltex internal use only Section 1: Solutions Global outline and sector overview Although Caltex does have some exceptional products and we aim to gain maximum advantage from them, most customers now expect some element of service and support beyond routine sales calls. Some Solutions have now become standardised within the lubricants industry and are often provided to customers free of charge. Properly demonstrating the financial benefits of a Solution to the customer will help to avoid it being undervalued. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Solutions Global outline and sector overview Please note that all of the Solutions described in this section may not be available in our market – please confirm your ability to deliver with your sales manager or marketing manager before offering a particular Solution to your customer. Commercial Sector toolkit – for Caltex internal use only continued Global Solutions portfolio Solution examples Section 1: Solutions Global outline and sector overview Our Solutions Portfolio is organised by three levels of execution complexity and CGL differentiation from our competition (Level 1 being the easiest and lowest point of differentiation): – Level 1 > Traditional Solutions: provides customers with basic support services to ensure proper application of our products. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy We would include providing affiliated products to enhance our core lubricants and coolant product platforms or provide ease-of-doing business service. CVP Products Solutions Global outline and sector overview Global Solutions portfolio Solution examples Commercial Sector toolkit – for Caltex internal use only continued Section 1: Solutions Global outline and sector overview – Level 2 > Consultative Services Offering: provides customers with consultative services concerning the procurement, application processes, system support, and Key Performance Indicator (KPI) bench-marking to enable improvements of targeted Total Cost of Ownership (TCO) drivers. We would include use of Caltex Partners (internal and external) to bring Subject Matter Experts on-board as required. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP – Level 3 > Managed Services Offering: provides customers with management of lubrication related services concerning the procurement, application and preventative maintenance (PM) tasks, Computerised Maintenance Management System (CMMS), specific customer services, and tracking of KPI bench-marking data to effect improvements in agreed upon TCO drivers. We would include management of Caltex Partners and/or Subject Matter Experts (internal and external) as required. Commercial Sector toolkit – for Caltex internal use only Products Solutions Global outline and sector overview Global Solutions portfolio Solution examples Section 1: Solutions Global Solutions portfolio Level 1 > Traditional Solutions currently available (in some areas): About Caltex – Bulk tank farm and dispensing system installations – Equipment loan programmes Commercial Sector background – E-business Caltex technology – Equipment lubrication surveys (product-application charting and complexity reduction Commercial Sector strategy – Oil and coolant analysis CVP Products – Specialised oil containers Solutions Global outline and sector overview – Auto-greasers Global Solutions portfolio – Coolant test kits Solution examples Commercial Sector toolkit – for Caltex internal use only continued Section 1: Solutions Global Solutions portfolio Level 2 > Non-traditional consultative services currently available (in some areas): About Caltex – automatic tank gauging systems Commercial Sector background – Lubricants University Caltex technology – Computex™ Fleet (computerised maintenance and procurement management system) Commercial Sector strategy CVP – extended drain programme Products – HSE bulk tank and storage facility audits Solutions Global outline and sector overview – waste stream coordination Global Solutions portfolio Solution examples Commercial Sector toolkit – for Caltex internal use only continued Section 1: Solutions Global Solutions portfolio Level 3 > Managed services currently available (in limited areas): About Caltex – Fuel management programmes – Vendor managed inventory Commercial Sector background – Reliability programme management Caltex technology Commercial Sector strategy CVP Products Solutions Global outline and sector overview Global Solutions portfolio Use this link to view a definition of the Solutions available to the Commercial Sector: Solution examples Advanced Solutions defined.xls Commercial Sector toolkit – for Caltex internal use only continued Section 1: Solutions Global Solutions portfolio To learn more about the Commercial Sector Solutions portfolio, the link below provides you with detailed training for the Fleet Solutions components, Sales Process and required tools and an interactive training guide for the Computex™ Fleet Programme. About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Products Solutions Global outline and sector overview Global Solutions portfolio Use this link to find out more about Commercial Sector Solutions: www.computexfleet.com Commercial Sector toolkit – for Caltex internal use only Account ID: CGLFLEET Password: SOLUTION$ Solution examples Section 1: Solutions Solution examples: Commercial Sector The Solutions portfolio that we currently can offer to customers focuses on two primary areas of operation: – Supply chain services which focuses on procurement and related savings opportunities – Reliability excellence which focuses on maintenance and savings that are maintenance programme related About Caltex Commercial Sector background Caltex technology Commercial Sector strategy CVP Helping a customer in both of these areas can result in a reduction in Total Cost of Ownership for the customer’s enterprise. Products Solutions Global outline and sector overview Global Solutions portfolio Solution examples Commercial Sector toolkit – for Caltex internal use only continued Section 1: Solutions Solution examples: Commercial Sector Supply Chain Services – procurement About Caltex e-Business Computex™ Fleet Commercial Sector background – Order, track and pay module Caltex technology – Quality control (certificate of analysis) module Commercial Sector strategy – Link to CGL e-business/biz-online CVP Waste Stream Management Products Caltex HSE Services Solutions Global outline and sector overview – Bulk tank and storage area planning – Spill response plan and appropriate unloading and unit fill procedures Global Solutions portfolio – Computex™ Fleet – waste disposal tracking and historical records Solution examples – Approved waste oil collection vendor – Spill clean-up and bioremediation products (RSA only) Commercial Sector toolkit – for Caltex internal use only continued Section 1: Solutions Solution examples: Commercial Sector Supply Chain Services – procurement (cont.) About Caltex Inventory management Commercial Sector background Caltex Services Caltex technology – Complexity reduction (includes movement to bulk where justified) – Computex™ Fleet – inventory management module Commercial Sector strategy – Eye-Tank™ CVP – Star Card for fuel Products Solutions Global outline and sector overview Global Solutions portfolio Solution examples Commercial Sector toolkit – for Caltex internal use only continued Section 1: Solutions Solution examples: Commercial Sector Reliability excellence – maintenance About Caltex Knowledge transfer Computex™ Fleet Commercial Sector background – Caltex technology Self-paced training modules > Engine lubrication > Heavy duty coolants > Drive train lubrication > Chassis lubrication Commercial Sector strategy CVP > Hydraulic system lubrication > Oil analysis for fleets Products > Fuel Solutions Global outline and sector overview > OEM specifications and trends – Area workshops for customers (OEM partner linkage) Global Solutions portfolio Solution examples Commercial Sector toolkit – for Caltex internal use only continued Section 1: Solutions Solution examples: Commercial Sector Reliability excellence – maintenance (cont.) About Caltex CMMS – Computex™ Fleet Computex™ Fleet Commercial Sector background – Caltex technology Pre-loaded Computerised Maintenance Management System (CMMS) programme designed for fleets (preventative maintenance (PM), intervals, components, make and model) to provide ability to schedule PMs, work orders (WOs), and evaluate unit performance based on Total Cost of Ownership KPIs – Oil and coolant analysis programme > linked to Computex™ Fleet – Extended drain programme Commercial Sector strategy CVP Products Solutions Global outline and sector overview Global Solutions portfolio Solution examples Commercial Sector toolkit – for Caltex internal use only continued Section 1: Solutions Solution examples: moving forward If you believe you have an immediate customer opportunity for any of the Solutions listed and require assistance to begin moving the process forward, please follow this 3 step process: About Caltex 1 Caltex technology Commercial Sector background Discuss with your sales manager to determine if the account fits into your area’s Commercial Sector sales plan 2 Complete the Sales Opportunity – Solutions (SOS) form (below) 3 Schedule a conference call with Darren Newton and appropriate stakeholders Commercial Sector strategy CVP Products Solutions Global outline and sector overview Global Solutions portfolio Solution examples Commercial_SOS form.xls Commercial Sector toolkit – for Caltex internal use only continued Section 2: Sales Process support Commercial Sector toolkit – for Caltex internal use only Sales Process support Section 2: contents Introduction and Sales Process alignment Standard sales approach Sales qualification – General information gathering – Coolants seven-step questionnaire – Networking Needs/Solutions identification – Customer maintenance goals – Cost Benefit calculator Standard sales presentation Activate and transition – Converting the sale Retain and grow Sales support tools Sales presentation (PPT) and sales proposal (Word) samples Sample customer letters Calculators – Cost Benefit calculator – Capex tool Sales literature – Commercial customer brochure – Support documents OEM approvals Product demonstrations and procedures Links and contacts Commercial industry links Commercial Sector contacts Commercial Sector toolkit – for Caltex internal use only Introduction and Sales Process Standard sales approach Sales support tools Links and contacts Section 2: Introduction and Sales Process alignment Introduction These sales tools will help you shape and prepare a value-added offering to a prospect or customer in a consistent format. Introduction and Sales Process The toolkit will: Standard sales approach – ensure alignment with and enhance the Caltex Sales Process Sales support tools – assist you in profitably growing your business Links and contacts – emphasise Caltex products and services that are differentiated – give us an advantage over competitors that sell solely on price – provide additional ammunition that you may not have had access to before. To help you develop a value-added selling proposition, this section provides guidance on the standard sales approach, sales support tools and useful links and contacts. Commercial Sector toolkit – for Caltex internal use only continued Section 2: Introduction and Sales Process alignment Sales Process alignment As well as being professional and friendly, you will need to establish credibility through your knowledge of the industry and begin to build a relationship of trust – asking the right questions is an important part of that process. Links and contacts – to the right customer – in the right way (i) Qualify (ii) Needs & solutions (iii) Presentations (iv) Activate & transition (v) Retain & grow Commercial Sector toolkit – for Caltex internal use only Standard sales approach Sales support tools This strategy is in line with the Sales Process and helps sell: – the right product Introduction and Sales Process continued Section 2: Introduction and Sales Process alignment Sales Process alignment There are three basic ways that we can add value to customers’ businesses: – we can help them to avoid cost – we can help them to reduce cost – we can provide them with education and information that makes them more competitive Remember that: – customers love to buy from people who can teach them something – knowing your material and your proposition is critical to your success – The best sales people, the true experts, are those that seek and leverage external sources for education and information. Your customers, as well as many of the links provided in this toolkit, will help you continually build your knowledge base and overall expertise. Commercial Sector toolkit – for Caltex internal use only Introduction and Sales Process Standard sales approach Sales support tools Links and contacts Sales Process support SECTION 2 Standard sales approach Commercial Sector toolkit – for Caltex internal use only Section 2: Standard sales approach General information gathering Introduction and Sales Process In order to satisfy the needs and requirements of the customer, you will need to gather some account-specific information during your pre-call. Standard sales approach Sales qualification – Information gathering – Coolants q’naire – Networking Needs/Solutions Sales presentation Activate & transition Retain & grow Sales support tools Links and contacts Commercial Sector toolkit – for Caltex internal use only continued Section 2: Standard sales approach General information gathering Remember your objectives: – – – gain an understanding of the organisation and the decision-making process by transposing all of the relevant information about the account into your ‘account strategy’ establish your credibility, founded on prior knowledge of the industry, research about the prospect and your knowledge of the customer benefits associated with doing business with Caltex, by using the information that has been clarified in the Account Planning gather the technical and commercial information needed to prepare a detailed proposal and to demonstrate an understanding of the customer's requirements Introduction and Sales Process Standard sales approach Sales qualification – Information gathering – Coolants q’naire – Networking Needs/Solutions Sales presentation Activate & transition Retain & grow Sales support tools Links and contacts Commercial Sector toolkit – for Caltex internal use only continued Section 2: Standard sales approach General information gathering Given a positive result in the qualification phase of your Account Planning, you would schedule a first meeting with a prospective customer. You can then review the questions during your pre-call work to determine how much you already know about your prospect. Highlight the areas where you are uncertain and concentrate on gathering this information during the next call. Remember your objectives: – establish your credentials as part of the Caltex Lubricants organisation – you may choose to use some of the standard presentation material during this initial call, if appropriate – establish a rapport – deal convincingly with objections – document unfamiliar objections and develop an adequate response to them, therefore preparing yourself for when the same objection surfaces again with another prospect or customer – identify the key lubricant/fluid issues and other relevant prospect requirements. Develop a customer profile for your file and future reference – identify the benefits that will need to be emphasised in the presentation Commercial Sector toolkit – for Caltex internal use only continued Introduction and Sales Process Standard sales approach Sales qualification – Information gathering – Coolants q’naire – Networking Needs/Solutions Sales presentation Activate & transition Retain & grow Sales support tools Links and contacts Section 2: Standard sales approach General information gathering You can gather more information from a Commercial prospect. The following pages show some typical probing questions that you should consider asking a new prospect. They specifically: – target the customer’s primary concerns with lubricants and coolants – allow the salesperson to gather information about the customer’s buying and maintenance habits. Remember from your sales training that open questions will usually result in more detailed responses from the prospect, but not every question needs to be an open one. Please note for coolant-specific questions, refer to the Coolants 7-step questionnaire. Commercial Sector toolkit – for Caltex internal use only continued Introduction and Sales Process Standard sales approach Sales qualification – Information gathering – Coolants q’naire – Networking Needs/Solutions Sales presentation Activate & transition Retain & grow Sales support tools Links and contacts Section 2: Standard sales approach General information gathering Background information Introduction and Sales Process – What is the operating profile for the fleet? Standard sales approach Sales qualification > Identify the quantity of units by service type > Identify makes, models, vintages of units – including engines and all drive train components > What is their average fuel economy? Needs/Solutions Sales presentation Activate & transition Retain & grow > What is their average oil consumption? > What type(s) of service are their trucks in? Sales support tools > Are they utilising oil analysis? Links and contacts > Are they following OEM recommended drain intervals? > What are the current drain intervals? > What are this fleet’s three biggest challenges? Commercial Sector toolkit – for Caltex internal use only – Information gathering – Coolants q’naire – Networking continued Section 2: Standard sales approach General information gathering – What are their growth plans for the fleet? – What is the average expected engine life to overhaul of this fleet? Introduction and Sales Process Standard sales approach Sales qualification – What new equipment investments are planned for the fleet? – Information gathering – Coolants q’naire – Networking – What are their main environmental concerns? – Do they have Solutions needs (e.g. training, Computex, etc.)? Needs/Solutions Sales presentation Activate & transition Retain & grow – What do they like and/or dislike about their current supplier? Sales support tools Links and contacts Commercial Sector toolkit – for Caltex internal use only continued Section 2: Standard sales approach General information gathering Current contract details – Does this operation or the company have preferred equipment suppliers? Introduction and Sales Process – Do they always adhere to OEM lubricant recommendations during warranty and after warranty? Standard sales approach Sales qualification – Do they have an existing lubricants supply contract – if so, how often is it re-negotiated and when is it next due? – Are they able to purchase certain speciality products outside the contract? – Information gathering – Coolants q’naire – Networking Current supply details Needs/Solutions Sales presentation Activate & transition Retain & grow – How many different lubrication products do they use? Sales support tools – How many lubricants suppliers do they currently use? Links and contacts – What are the reasons for splitting suppliers? – What additional services are provided by their current supplier(s)? – What do those additional services cost? Commercial Sector toolkit – for Caltex internal use only continued Section 2: Standard sales approach General information gathering Our opportunities – What would be the main challenge to introducing a new lubricants supplier? – Which equipment causes you most concern with regard to lubrication? – If you could eliminate or alleviate one lubrication-related problem, what would it be? What are the customer's contractual obligations to their current supplier? – Have you already tried alternative lubricants in those applications? If so, what were the results? – What proportion of your maintenance budget do you spend on lubricants (oil and grease) and what is the amount? Introduction and Sales Process Standard sales approach Sales qualification – Information gathering – Coolants q’naire – Networking Needs/Solutions Sales presentation Activate & transition Retain & grow Sales support tools Links and contacts Commercial Sector toolkit – for Caltex internal use only Section 2: Standard sales approach Coolants seven-step questionnaire Coolants represent a significant profit opportunity for Caltex. They offer an opportunity to approach potential customers with a unique, differentiated offering which can prove to be a door opener for further business. The questions in the linked questionnaire specifically target extended life coolants. As you guide your prospect through the seven step questionnaire you will be collecting data used to complete your customer’s coolants cost comparison, maintenance cost assessment and conversion payout schedule. Introduction and Sales Process Standard sales approach Sales qualification – Information gathering – Coolants q’naire – Networking Needs/Solutions Sales presentation Activate & transition Retain & grow Sales support tools Links and contacts Commercial Sector toolkit – for Caltex internal use only continued Section 2: Standard sales approach Coolants seven-step questionnaire The seven steps will cover: Introduction and Sales Process 1 Equipment and fleet size 2 Truck, equipment and engine OEMs 3 Multiple coolants – experience with extended life coolant technology 4 Coolant preventative maintenance practices 5 Current coolant usage 6 Coolant-related equipment failures 7 Maintenance budget and extended life coolant conversion plan Standard sales approach Sales qualification – Information gathering – Coolants q’naire – Networking Needs/Solutions Sales presentation Activate & transition Retain & grow Sales support tools Links and contacts Commercial Sector toolkit – for Caltex internal use only continued Section 2: Standard sales approach Coolants seven-step questionnaire You should familiarise yourself with the content of the questionnaire prior to conducting a customer visit. Go through the document in detail with a colleague as part of your training to ensure that you are comfortable with using this tool. Use the features, advantages and benefits captured in the selling points of the seven steps to help you answer the needs of the customer and overcome objections. All questionnaire items marked with * are crucial in this information-gathering phase. Introduction and Sales Process Standard sales approach Sales qualification – Information gathering – Coolants q’naire – Networking Needs/Solutions Sales presentation Activate & transition Retain & grow Sales support tools Links and contacts Use this link to view the Coolant Customer questionnaire – pay attention to the *symbols: CoolantCustomerQnaire.ppt Commercial Sector toolkit – for Caltex internal use only Section 2: Standard sales approach Networking The development of a solid business base depends on far more than traditional prospecting activity and customer service interaction. People are ever more pressed in terms of their work schedule and every minute is assessed to make sure that it is delivering value. Today’s fast moving world relies on up to the minute intelligence to ensure that you know what is happening in the market as quickly as possible (ideally before your competitors). The link below gives a framework for this important activity. Introduction and Sales Process Standard sales approach Sales qualification – Information gathering – Coolants q’naire – Networking Needs/Solutions Sales presentation Activate & transition Retain & grow Sales support tools Links and contacts CommercialNetworking.ppt Commercial Sector toolkit – for Caltex internal use only Section 2: Standard sales approach Needs/Solutions identification Caltex has been at the forefront of helping customers maximise their preventative maintenance practices for well over half a century. To do this correctly, it is key to understand the operating objectives and maintenance goals of the customer or prospect. Introduction and Sales Process Standard sales approach Sales qualification Based on this understanding, you'll find that some customers might be best served by: Needs/Solutions – Sales presentation maximising equipment life (durability) to overhaul; – Customer maintenance goals – Cost Benefit calc Activate & transition while others might be best served by: Retain & grow – Sales support tools extending fluid service intervals. There is value associated with both approaches and our Cost Benefit calculator will help you quantify the value of choosing one approach versus the other with your specific customer or prospect. Commercial Sector toolkit – for Caltex internal use only Links and contacts Section 2: Standard sales approach Customer maintenance goals Maximising equipment life/durability Long equipment life is best achieved through regular, thorough and frequent fluid maintenance intervals. OEMs set their recommended fluid drain intervals with the intention of maximising equipment durability. Fluid changes in excess of what the OEM recommends may result in a loss of equipment durability if not properly monitored and managed. What type of customer benefits from maximising equipment durability? Introduction and Sales Process Standard sales approach Sales qualification Needs/Solutions – Customer maintenance goals – Cost Benefit calc Sales presentation Generally: Activate & transition – smaller fleets that keep their equipment for long periods (5 to 10+ years) Retain & grow – fleets in severe service (e.g. steep grades, heavy loads, stop and go service, with high idle time and low fuel economy) Sales support tools – smaller fleets that don't have the leverage with their OEM that larger fleets might have – fleets that don't have a tightly controlled, sophisticated maintenance programme Commercial Sector toolkit – for Caltex internal use only continued Links and contacts Section 2: Standard sales approach Customer maintenance goals Extended fluid service intervals Simply put, this approach extends the fluid service interval between changes; often beyond what the OEM recommends. Sound risky? It is. By making equipment work harder, operators risk shortening equipment life and an increased risk of equipment failure. The payoff however could be significant for those customers who factor in the related savings associated with extending fluid service intervals (e.g. the fluid cost, the filter cost, the cost of labour, used oil collection fees, the cost of downtime). Introduction and Sales Process Standard sales approach Sales qualification Needs/Solutions – Customer maintenance goals – Cost Benefit calc Sales presentation Activate & transition What type of customer benefits from extending fluid service intervals? Retain & grow Generally large, on-highway fleets because: – they do not operate in a severe service environment (steady state, highway driving) – OEMs are more likely to allow customers to extend fluid service intervals based on their purchasing power/size – fleets of this size often "turn" their trucks every 3 to 5 years – this type of customer generally has a well managed/monitored maintenance programme – including oil analysis and the ability top track fuel and oil consumption Commercial Sector toolkit – for Caltex internal use only continued Sales support tools Links and contacts Section 2: Standard sales approach Customer maintenance goals The Extended Oil Drain white-paper below, authored by Chevron's Jim McGeehan, provides an analysis of potential risks and rewards associated with extended engine oil drain intervals. Introduction and Sales Process Standard sales approach Sales qualification Needs/Solutions – Customer maintenance goals – Cost Benefit calc Sales presentation Activate & transition Retain & grow Sales support tools Links and contacts Extended Oil Drain white paper.pdf Commercial Sector toolkit – for Caltex internal use only Section 2: Standard sales approach Cost Benefit calculator The Cost Benefit calculator will illustrate the potential reduction in operating costs and added-value benefit to customers/prospects using selected Caltex products. It is a user-friendly tool that will help you provide the customer with a tangible, financial benefit estimate based on the information that they provide. It is difficult for customers to dismiss the result if they have provided the information for the calculations. It is important to understand the customer’s operating goals and objectives. The customer’s vehicle replacement cycle is a key indicator of how to provide value by either extending drains or extending equipment service life. The calculator provides you with both options. – The calculations are based on the lubrication requirements for high consumption items – engine / coolant / transmission / grease / axle / hydraulic – Calculations also taken into consideration – cost of lubrication / downtime / labour / filters / as well as number of vehicles etc. Commercial Sector toolkit – for Caltex internal use only continued Introduction and Sales Process Standard sales approach Sales qualification Needs/Solutions – Customer maintenance goals – Cost Benefit calc Sales presentation Activate & transition Retain & grow Sales support tools Links and contacts Section 2: Standard sales approach Cost Benefit calculator Data input sheet Introduction and Sales Process Standard sales approach Sales qualification Needs/Solutions – Customer maintenance goals – Cost Benefit calc The benefit calculator works better as a sales tool if it Activate & transition can be used whilst with the Retain & grow customer, since the values input into the calculations will be their own. Commercial Sector toolkit – for Caltex internal use only Sales presentation continued Sales support tools Links and contacts Section 2: Standard sales approach Cost Benefit calculator Introduction and Sales Process Standard sales approach Sales qualification Needs/Solutions – Customer maintenance goals – Cost Benefit calc Sales presentation Activate & transition Retain & grow Sales support tools Customer summary reports Links and contacts These graphs and charts are a powerful, visual representation of the cost savings that a customer can expect to achieve with a Caltex Lubricants “Performance Advantage” package Commercial Sector toolkit – for Caltex internal use only continued Section 2: Standard sales approach Cost Benefit calculator Please remember: – it is important that real values are used wherever possible Introduction and Sales Process – if estimates are used they should be the customer’s estimate and not ours Standard sales approach Sales qualification – it is important that you also use your knowledge of the customer’s operation and common sense to judge the validity of the output before sharing the information with the customer. As good sales people you will already be aware of the dangers of over-promising – other versions of ‘benefit calculators’ exist and can also provide valuable comparison data for a customer – feel free to use what works best for you. Commercial Sector toolkit – for Caltex internal use only continued Needs/Solutions – Customer maintenance goals – Cost Benefit calc Sales presentation Activate & transition Retain & grow Sales support tools Links and contacts Section 2: Standard sales approach Cost Benefit calculator Use the links below to view: – the Cost Benefit calculator – the Cost Benefit calculator support data document which gives important test results and information on our premium lubricants or coolants, to guide discussions with a customer concerning extending service intervals or extending equipment life. Introduction and Sales Process Standard sales approach Sales qualification Needs/Solutions – Customer maintenance goals – Cost Benefit calc Sales presentation Activate & transition Retain & grow Sales support tools Links and contacts Cost Benefit calculator.xls [Password: 123456] CBC User Guide.pdf Commercial Sector toolkit – for Caltex internal use only continued Section 2: Standard sales approach Cost Benefit calculator – Once completed, save the Cost Benefit calculator with your client’s name and then use the link within the calculator to add the Excel document to the central database, where customer surveys will be stored. – Please also make sure that you visit the Cost Benefit calculator support website to: Introduction and Sales Process Standard sales approach Sales qualification Needs/Solutions – Customer maintenance goals – Cost Benefit calc > collect the most recent version of the calculator, user guide and Proof of Performance information Sales presentation > report any bugs in the programme Retain & grow Activate & transition Sales support tools http://col/Depts/marketing/marketing_dev/new_product_dev_lubes_ marketing/lubricants_marketing/proof_of_performance.htm Commercial Sector toolkit – for Caltex internal use only Links and contacts Section 2: Standard sales approach Standard sales presentation This sales presentation gives a high-level introduction to Caltex & Chevron Lubricants, our industry position and capabilities. Introduction and Sales Process Standard sales approach Sales qualification It provides a salesperson with: – a consistent customer-facing global brand and image – consistent and up-to-date information on our corporate message, global and Sales presentation regional products and services offerings Activate & transition Needs/Solutions Retain & grow The deck can be used as the first part of your sales presentation and additional slides should be added to: – demonstrate a thorough understanding of the prospect’s business needs and challenges – present the main proposal with your recommendations and budget implications Commercial Sector toolkit – for Caltex internal use only continued Sales support tools Links and contacts Section 2: Standard sales approach Standard sales presentation Prior to delivering the presentation, the local sales team should make the following changes: Introduction and Sales Process – ensure that the information presented is consistent with organisational capability. Standard sales approach Sales qualification Needs/Solutions Sales presentation Activate & transition Please note local teams also need to delete any slides that are not consistent with local capabilities and to add relevant new content whilst maintaining the overall presentation style. Retain & grow Sales support tools Links and contacts Use this link to view the commercial sales presentation sample (in PowerPoint) that has already been created: CommSalesPres.ppt Commercial Sector toolkit – for Caltex internal use only Section 2: Standard sales approach Activate and transition Once your prospect has agreed to buy Caltex products, it is important to concentrate on the conversion process. Introduction and Sales Process – Develop a transition plan that includes key issues, milestones and stakeholders as needed Standard sales approach Sales qualification Needs/Solutions – Understand and meet the back and front office requirements of the customer (an orientation meeting; customer employee training/ guidelines regarding ordering procedures; ensure correct pricing; ensure proper invoicing; understand and meet delivery/logistical requirements; address all ebusiness needs; address Material Safety Data Sheet (MSDS) needs etc.) – Execute a supply contract (including agreed to price movement guidelines) to the mutual benefit of Caltex and your customer – Introduce key Caltex resources to the customer (e.g. managers, resellers, customer support colleagues, etc.) Commercial Sector toolkit – for Caltex internal use only continued Sales presentation Activate & transition – Converting the sale Retain & grow Sales support tools Links and contacts Section 2: Standard sales approach Activate and transition – Identify and pursue opportunities for customer inventory consolidation/complexity reduction Introduction and Sales Process – Identify and address any product compatibility issues as a result of a change in supplier Standard sales approach Sales qualification – Identify and recommend flush and refill procedures as required Needs/Solutions Your activate and transition strategy will differ from customer to customer. The above list represents basic core elements of an activate and transition strategy that should be applied to every new fleet customer. Sales presentation Activate & transition – Converting the sale Retain & grow Sales support tools Links and contacts Commercial Sector toolkit – for Caltex internal use only Section 2: Standard sales approach Converting the sale The information in the following presentations will help you advise your customer about changeover and maintenance practices: – Oil sampling procedure – Coolants Demonstration Kit – Using a Refractometer Please note that you can find more detail on each of these presentations in Sales support tools: Product demonstrations and procedures. Introduction and Sales Process Standard sales approach Sales qualification Needs/Solutions Sales presentation Activate & transition – Converting the sale Retain & grow Sales support tools Links and contacts Oil Sampling Guide.doc CoolantsDemoTestKit.ppt Using a Refractometer.ppt Commercial Sector toolkit – for Caltex internal use only continued Section 2: Standard sales approach Converting the sale: coolants conversion process To ensure the maximum benefits associated with Caltex unique extended life coolants it is important to ensure proper conversion of the vehicle or fleet from a traditional product to Caltex coolant. There are three ways to convert a fleet to extended life coolant: – – Drain, Flush and Refill: the most technically correct way and ensures full benefits of extended life coolants. However, this is the most time consuming method. Drain and Fill: requires less downtime compared to the first method, but about 10-15% of the old coolant will remain in the system. This causes possible contamination issues and some reduction in total benefits of extended life coolants. Introduction and Sales Process Standard sales approach Sales qualification Needs/Solutions Sales presentation Activate & transition – Converting the sale Retain & grow Sales support tools Links and contacts Commercial Sector toolkit – for Caltex internal use only continued Section 2: Standard sales approach Converting the sale: coolants conversion process Before recommending any procedure to the customer, the salesperson should be familiar with all the available options and tools required to correctly convert the customer to extended life coolants. This information will help you advise your customer about changeover and maintenance practices. Introduction and Sales Process Standard sales approach Sales qualification Needs/Solutions Sales presentation Please note that additional information is available from the AP In Service Engine Coolant Monitor. Activate & transition – Converting the sale Retain & grow Use these links to help advise your customer about the coolant conversion process: CoolantTechnlgy.ppt CoolntChngovrPrcdure_EE.doc Commercial Sector toolkit – for Caltex internal use only Sales support tools Links and contacts Section 2: Standard sales approach Retain and grow Once an account is secured, work is still required to make sure that the account's expectations and requirements are met on an ongoing basis. In addition to what the Sales Process tells us, it is suggested that the salesperson: Introduction and Sales Process Standard sales approach Sales qualification – periodically review the progress and status of our relationship Needs/Solutions – establish and pursue lubrication programme goals Sales presentation – establish Scorecard metrics if appropriate – define our current "share of wallet" with the account and target/pursue additional opportunities – educate, update and inform the account on subjects that they might benefit from – identify and pursue training opportunities – identify and pursue solutions needs and opportunities Commercial Sector toolkit – for Caltex internal use only Activate & transition Retain & grow Sales support tools Links and contacts Section 2: Standard sales approach Retain and grow – identify levels of the customer's organisation that would benefit from having a relationship with Caltex management; engage management as required – pursue testimonial opportunities as applicable – uncover and pursue field test opportunities that provide mutual benefit to both companies Introduction and Sales Process Standard sales approach Sales qualification Needs/Solutions Sales presentation Activate & transition Retain & grow Your retain and grow strategy will differ slightly from customer to customer. The above list represents the minimum, core elements of a retain and grow strategy that should be applied to every customer that represents a profitable return and/or additional opportunity to Caltex. Commercial Sector toolkit – for Caltex internal use only Sales support tools Links and contacts Sales Process support SECTION 2 Sales support tools Commercial Sector toolkit – for Caltex internal use only Section 2: Sales support tools Sales presentation sample This sales presentation gives a high-level introduction to Caltex Lubricants and our industry position and capabilities. Introduction and Sales Process It provides the sales teams with: Standard sales approach – a consistent customer-facing global brand and image Sales support tools Sales presentation & proposal samples – consistent and up to date information on our corporate message, global and regional products and services offerings Sample letters Calculators Sales literature OEM approvals Product demonstrations Links and contacts Use this link to view the commercial sales presentation sample (in PowerPoint) that has already been created: CommSalesPres.ppt Commercial Sector toolkit – for Caltex internal use only continued Section 2: Sales support tools Sales proposal sample The standard sales proposal should be used as the basis for individual customer proposals. It has been designed to incorporate most of the material that a standard proposal should contain and includes examples. This document can be edited so that you can prepare individual proposals that will still have the standard appearance that customers will come to recognise. Introduction and Sales Process Standard sales approach that has been placed in the header or footer, Sales support tools Sales presentation & proposal samples such as the logo, will appear ‘knocked-back’ Sample letters on the live document, but will print to hard Calculators copy and PDF correctly. Sales literature Please note that anything on this template OEM approvals Product demonstrations Links and contacts Use this link to view the Commercial Sector sales proposal sample (in Word) that has already been created: CommercialSalesProposal.doc Commercial Sector toolkit – for Caltex internal use only Section 2: Sales support tools Sample customer letters Effective written communication is a key contributor to creating a positive perception and creating interest among customers and prospects. Effective, informative, professional communication can clearly differentiate us from our competition. Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Here are six letter templates provided for your use and benefit. The subjects addressed in these letters are: Sample letters – introduction / follow-up – letters of guaranteed performance – previsit or precall messaging – our Research capabilities Calculators Sales literature OEM approvals Product demonstrations Feel free to edit these letters as you see fit. Links and contacts Commercial Sector toolkit – for Caltex internal use only continued Section 2: Sales support tools Sample customer letters After meeting with customers and prospects for the first time, or after meeting on a specific subject that is important to a customer or prospect, it is important to follow up in writing. A short thank you and follow-up communications are also strongly suggested. Please note that customer letters must be printed on Caltex approved letterhead. Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators Sales literature OEM approvals Use these links to view the six letter templates: 2007Followup.doc Product demonstrations 2007FollowupwCRTC.doc Links and contacts 2007FollowupINTRODUCTION.doc 2007guaranteedDelogeneral.doc 2007FollowupPreVisit.doc 2007guaranteedRPMgeneral.doc Commercial Sector toolkit – for Caltex internal use only Section 2: Sales support tools Cost Benefit calculator The Cost Benefit calculator is an easy-to-use, web supported tool, designed to illustrate to a customer the potential cost saving that can be realised by using premium lubricants and coolants to extend service interval or extend equipment life. – Completed surveys should be added to the central database – a link to this can be found within the calculator – Visit the support website to collect the most recent version of the calculator, user Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples guide and Proof of Performance information, and to report any bugs in the Sample letters programme: http://lubricants.chevron.com/global_operations/calculator.asp Calculators Please note that you can find more detail on the Cost Benefit calculator in Standard sales approach: Needs and Solutions > Cost Benefit calculator. – Cost Benefit calc – Capex tool Sales literature OEM approvals Use these links to view the Cost Benefit calculator and support data document: Cost Benefit calculator.xls [Password: 123456] CBC User Guide.pdf Commercial Sector toolkit – for Caltex internal use only Product demonstrations Links and contacts Section 2: Sales support tools Capex tool Capital Expenditure (Capex) on equipment is often required for consideration in a customer acquisition or retention strategy. It is important therefore to ensure that all costs, up-front costs and hidden costs are identified and analysed to provide a comprehensive profitability picture of the customer. This Capex tool is an important management decision-making tool, and has been developed to: – Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators – Cost Benefit calc – Capex tool assist the sales teams with the profitability Sales literature analysis of the customer in question; OEM approvals determine the return on investment (ROI) Product demonstrations associated with providing the funding Links and contacts proposed. – Introduction and Sales Process provide an in-depth guide to identify the hidden and up-front costs. Commercial Sector toolkit – for Caltex internal use only continued Section 2: Sales support tools Capex tool A Capex investment to provide equipment at customer premises is a key part of our Solutions capability. Providing funding for on-site equipment can facilitate the introduction and use of a Caltex Solution that the customer may otherwise be unwilling to commit to. In such circumstances the customer is able to realise and appreciate the benefits of the Solution and subsequently contribute to the cost of implementation. The Capex tool ensures a globally consistent approach is employed across Caltex when determining capital expenditure, ROI, budget implications and allocations. Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators – Cost Benefit calc – Capex tool Sales literature OEM approvals Product demonstrations Links and contacts Commercial Sector toolkit – for Caltex internal use only continued Section 2: Sales support tools Capex tool: user guidelines The Capex Tool is made up of the following worksheets: – Results Introduction and Sales Process – Average margin calculations Standard sales approach – Sensitivity analysis Sales support tools Sales presentation & proposal samples – Calculations Sample letters If you have Adobe Acrobat installed on your computer, you can retain a digital copy of the reports by creating PDFs of them. Calculators – Cost Benefit calc – Capex tool Sales literature Use this link to view the Capex tool: Big Cindy.xls OEM approvals Product demonstrations Links and contacts Little Cindy.xls New Version BigCINDY3.doc Commercial Sector toolkit – for Caltex internal use only Section 2: Sales support tools Sales literature To support the Sales Process, a range of printed collateral has been developed for use at exhibitions, trade shows and for meetings with prospective customers. The following pages show visuals of the customer-facing brochure and a range of support documents including product information and case histories applicable to the Commercial Sector. To reinforce the professionalism of your For this reason these materials should be presentation, all materials should meet the professionally printed, rather than quality standard expected of Caltex. printed from your desktop printer. Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators Sales literature – Customer brochure – Support documents OEM approvals Product demonstrations Please note you can access the master artworks through your local marketing manager, who can arrange quality printing. Commercial Sector toolkit – for Caltex internal use only Links and contacts continued Section 2: Sales support tools Customer brochure The purpose of this brochure is to communicate to potential customers: – who we are Introduction and Sales Process – what we have to offer Standard sales approach – why we are different from other lubricants companies Sales support tools Sales presentation & proposal samples – where to obtain more information Sample letters Calculators Sales literature – Customer brochure – Support documents It can be used as a leave-behind item and as the basis of an informal presentation about Caltex. OEM approvals Product demonstrations Links and contacts Commercial Sector toolkit – for Caltex internal use only continued Section 2: Sales support tools Customer brochure The customer brochure includes a pocket at the back to hold inserts to provide the customer with more detailed information. Introduction and Sales Process Standard sales approach These should include relevant: – POP documents Sales support tools Sales presentation & proposal samples – Customer Testimonials Sample letters Calculators – Product Data Sheets Sales literature – Customer brochure – Support documents – Product-specific material (e.g. Coolants) OEM approvals Product demonstrations Links and contacts Commercial Sector toolkit – for Caltex internal use only continued Section 2: Sales support tools Customer brochure The brochure artwork is in a format which can easily be adapted to meet specific local market needs – the sample shown demonstrates Caltex-approved structure and content. Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators Sales literature – Customer brochure – Support documents OEM approvals Product demonstrations Use this link to view a PDF of the Commercial Sector customer brochure – for reference only, not suitable for printing CommercialSectorBrochure.pdf Commercial Sector toolkit – for Caltex internal use only Links and contacts Section 2: Sales support tools Support documents Support documents are important and influential items, and should be included as part of the information left with prospects. They can be used as stand-alone items or can be placed in the pocket of the customer brochure. There are several different types of support documentation available which focus on our products from different perspectives: Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters – Proof of Performance (POP) Calculators – Customer Testimonial Sales literature – Product Data Sheet (PDS) – Customer brochure – Support documents OEM approvals One of our many requirements is to align the terminology we use to describe different sales and marketing material as well as to standardise the format of these documents. Commercial Sector toolkit – for Caltex internal use only continued Product demonstrations Links and contacts Section 2: Sales support tools Support documents: Proof of Performance One of the most important supporting documents for any salesperson is the Proof of Performance (POP). POPs can be used to substantiate the claims that we make about the performance of our products. A POP should highlight the proven features and benefits of a product based on lab test results and preferably field trial or field experience (ideally with several customer examples) as evidence of performance. Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators Sales literature – Customer brochure – Support documents OEM approvals Your help is needed in building our POP library. The larger our library, the easier it will be to illustrate our performance advance and cost saving customer benefits. Commercial Sector toolkit – for Caltex internal use only Introduction and Sales Process continued Product demonstrations Links and contacts Section 2: Sales support tools Support documents: Customer Testimonials Testimonials are independent confirmations of the value of Caltex products and/or Solutions. Written by existing customers, they have a significant influence on prospects because of their neutrality and reduce the level of risk for the prospect. A Testimonial should feature a customer success story as a result of Caltex products and/or Solutions that facilitated a significant source of value generation. Your help is needed in building our Testimonial library. The larger our library, the easier it will be to illustrate our performance advance and cost-saving customer benefits. Commercial Sector toolkit – for Caltex internal use only continued Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators Sales literature – Customer brochure – Support documents OEM approvals Product demonstrations Links and contacts Section 2: Sales support tools Support documents: POP & Testimonial database New design templates have been developed for POP and Testimonial information and these will be used to create a database of material in the new ‘look and feel’, for use with customers. This database will be updated continuously as new POPs and Testimonials are received, and we will progressively adapt those that are not signed testimonials to the new template. Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators Sales literature It is important that we keep up-to-date with our POPs and Testimonials, so we can build a comprehensive database covering all possible application areas. – Customer brochure – Support documents OEM approvals Product demonstrations Links and contacts Please note to create new versions, see Section 3: Creating new POPs and Testimonials. Commercial Sector toolkit – for Caltex internal use only Introduction and Sales Process continued Section 2: Sales support tools Support documents: POP & Testimonial database You should always aim to quantify the value to the customer of the products and Solutions referred to in POPs and Testimonials. Financial values are vastly more influential than any other parameter, e.g. hours or volumes. Virtually every successful application of It is hard to emphasise just how valuable a Caltex product has the potential to these documents can be as sales aids. use of Caltex products to identify applications of particular value that Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters become a POP or Testimonial and you should regularly review your customer’s Introduction and Sales Process Please note your local marketing manager can help to obtain artworks for printing as required. Calculators Sales literature – Customer brochure – Support documents would help other sales personnel. OEM approvals Use this link to view the POP/Testimonial database – for reference only, not suitable for printing: Product demonstrations Links and contacts http://col/Depts/marketing/marketing_dev/new_product_dev_lubes_ marketing/lubricants_marketing/proof_of_performance.htm Commercial Sector toolkit – for Caltex internal use only continued Section 2: Sales support tools Support documents: Product Data Sheets Product Data Sheets (PDS), also known as Product Bulletins, give a brief description of the product and its specifications. Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples They summarise the product, with just enough technical information to determine whether this is the correct product for the customer’s application. Sample letters Calculators Sales literature – Customer brochure – Support documents OEM approvals Product demonstrations Links and contacts Commercial Sector toolkit – for Caltex internal use only continued Section 2: Sales support tools Support documents: Product Data Sheets Product Data Sheets are generated centrally for every product and can be accessed using the link below. They are designed to be consistent across material. Only use fax transmission if the all sectors since many products are not customer specifically requests it. exclusive to a particular sector. When sending PDSs to customers for information purposes, send via email rather than fax to maintain a consistently Please note your local marketing manager can help to obtain artworks if high quality printing is required for tradeshows or exhibitions. high quality of presentation across all our Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators Sales literature – Customer brochure – Support documents OEM approvals Product demonstrations Use this link to access PDSs by region on the intranet: http://www.caltex.com.au/products_oil.asp. Commercial Sector toolkit – for Caltex internal use only Links and contacts Section 2: Sales support tools OEM approvals On-highway Truck and Bus OEM approvals are often a prerequisite for gaining business, specifically for the drive-train, cooling system and engine. Drive-train (transmission and axles): significant work on gaining preferred New trucks and buses are often provided approval of our products. In addition, we with the option for an extended have similar products meeting most of the drain/extended warranty programme. These OEM requirements available globally. programmes require the use of specific Engines: In most cases, our heavy duty lubricants that have undergone significant engine oils carry all the required OEM bench and field testing. Caltex has products approvals. Some unique engines may require globally approved for most of these specific approvals, which are already programmes, in addition to non-warranty captured, or require field sales requests. products. See the following pages for information on tracking existing approvals. Remember that many fleet owners are willing to evaluate unapproved products Cooling systems: Most of the OEM where they believe the risk of failure is equipment in the world is factory filled with low and the potential benefits are clear. Caltex coolant technology. This is a result of Commercial Sector toolkit – for Caltex internal use only continued Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators Sales literature OEM approvals Product demonstrations Links and contacts Section 2: Sales support tools OEM approvals If you need actual OEM approval letters for either lubricants or coolants then please contact Darren Newton at Caltex@com.au Introduction and Sales Process Standard sales approach Please note in the future, all approvals information will be consolidated into a single database. Approvals information is also contained on the PDSs. Sales support tools Sales presentation & proposal samples Sample letters Calculators Sales literature OEM approvals Product demonstrations Links and contacts Commercial Sector toolkit – for Caltex internal use only continued Section 2: Sales support tools OEM approvals: Commercial Sector examples Caltex spends significant time and effort in maintaining working relationships with key OEMs globally. These relationships are maintained to provide the following long term benefits to Caltex: – alignment with Marketing Strategy target customer requirements for OEM approvals and value added products – provide access to the OE Dealer channel, leverage Caltex branded product aftermarket sales – – understand industry trends, obtain foreknowledge of specifications, joint product development, 1st to market products, etc recognised and endorsed as a business partner with OEMs (influence/drive our leadership position in the industry and with their customers) – provide value-added products and services, enabling access to higher margin product sales – secure OEM approvals to develop future technology platform and build reputation Commercial Sector toolkit – for Caltex internal use only continued Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators Sales literature OEM approvals Product demonstrations Links and contacts Section 2: Sales support tools OEM approvals: Commercial Sector examples Caltex & Chevron’s focus is on OEMs that influence the industry, maintain the same value set as Chevron, and provide a good geographical and product fit. Chevron currently has strong relationships globally with the following key OEMs: – Volvo (Volvo and Mack Truck, Bus, Construction Equipment, and Marine) – PACCAR (Kenworth/Peterbilt, DAF, Leyland) – Mercedes Benz (Freightliner) Standard sales approach Sales support tools Sales presentation & proposal samples – Isuzu – Dana (Dana-Spicer) Sample letters – Eaton Calculators – International Sales literature – Scania OEM approvals In addition, CGL has strategic intent on building relationships globally with the following additional OEMs: – Allison – Hino – ZF Commercial Sector toolkit – for Caltex internal use only Introduction and Sales Process continued Product demonstrations Links and contacts Section 2: Sales support tools OEM approvals: Commercial Sector examples Chevron’s partnership with Volvo is a good example of two companies working together for a common goal. Introduction and Sales Process Volvo is: Standard sales approach – 81,000 employees Sales support tools Sales presentation & proposal samples – $28 USD billion annual sales revenue Sample letters – World’s #1 diesel engine builder Calculators – World’s #2 HD commercial vehicle assembler Sales literature – World’s #3 construction equipment company OEM approvals – Operating companies buying from us – Mack/Renault/Volvo Trucks, Volvo Construction Company, Volvo Bus Company, Penta Marine Corp – 47 manufacturing facilities world wide We have business with Volvo in every region where we operate... factory fill, private label, brand products, etc Commercial Sector toolkit – for Caltex internal use only continued Product demonstrations Links and contacts Section 2: Sales support tools OEM approvals: Commercial Sector examples Volvo provides CGL value: – joint writing the next generation construction equipment transmission fluid (WB-102) specification – joint development of the next generation fuel economy engine oil for Europe – joint development of the next fill for life transmission fluid for on-highway transmissions – obtaining exclusive approval for several CGL products – acknowledged globally as Volvo’s lubricant partner – significant field test programmes underway – key partner in new coolant development Our partnership with Volvo provides a unique opportunity to grow business based on exclusive product approvals and quick turn around on non-exclusive product approvals. Commercial Sector toolkit – for Caltex internal use only Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators Sales literature OEM approvals Product demonstrations Links and contacts Section 2: Sales support tools Product demonstrations and procedures Once your prospect has agreed to buy Caltex products, it is important to concentrate on the conversion process. The information in the following presentations will help you advise your customer about changeover and maintenance practices: Introduction and Sales Process Standard sales approach – Oil sampling procedure Sales support tools Sales presentation & proposal samples – Coolants Demonstration Kit Sample letters Calculators – Using a Refractometer Sales literature OEM approvals – Coolants changeover procedures (EE and NA versions) Product demonstrations Links and contacts Commercial Sector toolkit – for Caltex internal use only continued Section 2: Sales support tools Product demonstrations and procedures Oil sampling guide When taking a sample of oil from an engine in service, for the purpose of carrying out oil analysis, there are a number of measures and procedures that will ensure that this is fully representative of the bulk oil. The ‘Oil sampling guide’ below fully explains the detailed process for taking a true sample. Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators Sales literature OEM approvals Product demonstrations Links and contacts Oil Sampling Guide.doc Commercial Sector toolkit – for Caltex internal use only continued Section 2: Sales support tools Product demonstrations and procedures The Coolant Demonstration Test Kit The main objective of this kit is to deliver a visual reinforcement of the performance of our premium coolants. It can also be used as a sales and maintenance tool. The kit alerts customers to the issues related to using only water in their cooling systems and the impact this can have on their equipment. Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators Sales literature OEM approvals Product demonstrations Links and contacts Use this link to view the Coolant Demonstration Test Kit: CoolantsDemoTestKit.ppt Commercial Sector toolkit – for Caltex internal use only continued Section 2: Sales support tools Product demonstrations and procedures Using a Refractometer Refractometers are simple, optical devices for determining the actual concentration of concentrates in water. They are commonly used for determining the concentration of engine coolants and soluble metalworking fluids. This presentation will enable you to make efficient use of this measurement device (see link below). Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators Sales literature OEM approvals Product demonstrations Links and contacts Using a Refractometer.ppt Commercial Sector toolkit – for Caltex internal use only continued Section 2: Sales support tools Product demonstrations and procedures Coolants changeover procedures To ensure the maximum benefits associated with Caltex’s unique extended life coolants it is important to ensure proper conversion of the vehicle or fleet from a traditional product to Caltex’s coolant. This information will help you advise your customer about changeover and maintenance practices. Introduction and Sales Process Standard sales approach Sales support tools Sales presentation & proposal samples Sample letters Calculators Please note that you can find more about the coolant conversion process in Standard sales approach: Activate and transition. Sales literature OEM approvals Product demonstrations Links and contacts CoolntChngovrPrcdure_EE.doc CoolntChngovrPrcdure_NA.doc Commercial Sector toolkit – for Caltex internal use only Sales Process support SECTION 2 Links and contacts Commercial Sector toolkit – for Caltex internal use only Section 2: Links and contacts Commercial industry links The following sites are very valuable resources for general global lubricants industry information, market background and competitive intelligence. Kline and Company: Kline is a valued supplier of market intelligence and insight to Caltex. Use this link to view the Kline website: Standard sales approach Sales support tools www.lubelink.com Kline has also established a site for Caltex employees only. Use this link to access this site, but remember this is for Caltex & Chevron employees only and you MUST NOT allow anyone outside of Caltex access to the link: www.klineonline.com User ID: Chevron Password: oil2cpc PFC Energy: The PFC Energy website provides information on country and competitor profiles, key market indicators and base oil dynamics for the global lubricants market: www.pfcenergy.com From the PFC Energy page, click on "client login" to enter the client site and select a service from the "membership services" menu. User is automatically authenticated into site. Commercial Sector toolkit – for Caltex internal use only Introduction and Sales Process continued Links and contacts Commercial industry links Commercial Sector contacts Section 2: Links and contacts Commercial industry links Transportation companies, as well as equipment manufacturers have websites and it is worth checking them occasionally for potential information that could lead to a sales opportunity. It will also help you increase your knowledge of the industry or a specific customer’s operations and hence your own credibility. Introduction and Sales Process Standard sales approach Sales support tools Additional links can be found in the document below (external and Caltex links) and will provide valuable information regarding: Links and contacts Commercial industry links – the Commercial Sector in general – our competitors Commercial Sector contacts – OEMs and their requirements – regional-specific data – demand and trends information etc. Useful links+addresses.doc Commercial Sector toolkit – for Caltex internal use only Section 2: Links and contacts Commercial Sector contacts The following file includes contact information for key Commercial Sector colleagues (both global and regional) as well as other key global support organisations. Introduction and Sales Process Please contact the appropriate person if you have any questions or require additional information. Sales support tools Standard sales approach Links and contacts Commercial industry links Commercial Sector contacts Commercial Sector Contacts.xls Commercial Sector toolkit – for Caltex internal use only Section 3: Templates Commercial Sector toolkit – for Caltex internal use only Templates Section 3: contents PowerPoint templates Master template and style guidelines Creating new Proofs of Performance (POPs) and Customer Testimonials POP and Testimonial content templates Word templates Standard legal forms Master templates Commissioning a photo shoot Commercial Sector toolkit – for Caltex internal use only PowerPoint templates Word templates Creating new POPs and Testimonials Templates SECTION 3 PowerPoint templates Commercial Sector toolkit – for Caltex internal use only Section 3: PowerPoint templates Master template and style guidelines A master PowerPoint template has been created with a fresh and exciting look and feel. Use this template to ensure that your presentations are in the Caltex corporate style. PowerPoint templates Master guidelines/ template There is also a supporting guidelines document that outlines: Word templates – type style and size Creating new POPs and Testimonials – use of imagery – Commercial Sector colour palette – styles for charts and graphs Please note it is important that you refer to the supporting guidelines when using the new template. A sample presentation has also been created using this template – see Section 2: Sales support tools – Sales presentation and proposal samples. Use these links to view the master commercial PowerPoint template and guidelines document: Template_Comm.ppt PPTGuidelines_Commercial.ppt Commercial Sector toolkit – for Caltex internal use only Templates SECTION 3 Word templates Commercial Sector toolkit – for Caltex internal use only Section 3: Word templates Master templates Two master Word templates have also been created – one that incorporates a cover page and one that doesn’t. Use these templates to ensure that your Word documents are in the Caltex corporate style. A sample proposal has been created Please note that anything on this template using the master template (with a cover that has been placed in the header or footer, page) – see Section 2: Sales support such as the logo, will appear ‘knocked-back’ tools – Sales presentation and proposal on the live document, but will print to hard samples copy and PDF correctly. Use these links to view the master Word templates: CommTmplt+cover.dot CommTmplt_No cover.dot Commercial Sector toolkit – for Caltex internal use only PowerPoint templates Word templates Master templates Creating new POPs and Testimonials Templates SECTION 3 Creating new POPs and Testimonials Commercial Sector toolkit – for Caltex internal use only Section 3: Creating new POPs and Testimonials Creating new POPs and Testimonials It is important that we keep up-to-date with our POPs and Testimonials and build a comprehensive database covering all possible application areas. To create new versions: – complete the content templates (in Word) – ensure that the customer signs all the required legal forms which need to be stored in a safe place for reference – if you need to commission any photography, please refer to commissioning a photo shoot in this section Please note it is crucial that the legal forms are signed by a legally authorised signatory within the customer’s organisation, so that we have official approval to use photographs and quotations. Commercial Sector toolkit – for Caltex internal use only PowerPoint templates Word templates Creating new POPs and Testimonials Content templates Standard legal forms Commissioning a photo shoot Section 3: Creating new POPs and Testimonials POP and Testimonial content templates New POP and Testimonial content and design templates have been created by marketing to simplify the development process. Once complete, please send the materials to your marketing manager or designated point person to incorporate into the new Testimonial design template, and add to a database. Please note that once a Testimonial is complete, they should also be sent along with a copy of the original artwork, high resolution images and rights information to Marketing for archiving. Use these links to view the POP and Testimonial content templates, and guidelines document: POP & Testimonial Guidelines.doc POP content_tmplt.doc Testimonial content_tmplt.doc Commercial Sector toolkit – for Caltex internal use only PowerPoint templates Word templates Creating new POPs and Testimonials Content templates Standard legal forms Commissioning a photo shoot Section 3: Creating new POPs and Testimonials Standard legal forms The Customer Release Agreement must be signed by an Authorised Representative of the customer when preparing new POPs and Testimonals. – Customer Release Agreement [Customer Release Agreement.doc]: Required when a third-party (i.e. a customer) gives his/her opinion and/or quote regarding Caltex products or services which we will use in advertising or marketing materials, or where a customer allows Caltex to use an image owned by the customer in Caltex’s Marketing material. Commercial Sector toolkit – for Caltex internal use only PowerPoint templates Word templates Creating new POPs and Testimonials Content templates Standard legal forms Commissioning a photo shoot continued Section 3: Creating new POPs and Testimonials Commissioning a photo shoot In the event Caltex hires a contract photographer, even when working through an agency, please use the following process: 1. Review photographer's qualifications/background and ask for references within Caltex, if possible. 2. Authorised Caltex manager prepares a photography brief and agrees the content with the photographer: Word templates Creating new POPs and Testimonials Content templates Standard legal forms – Caltex Photography Brief.doc 3. The photographer MUST be given a copy of Caltex’s Photography Standard and sign a Deed of Assignment of Copyright: – Caltex Photography Standard.doc – Deed of Assignment of Copyright.doc Refer to the Corporate Affairs Intranet site for future updates of the above documents. 4. For photo shoots at a Caltex facility, photographer must be accompanied by a Caltex employee at all times. Commercial Sector toolkit – for Caltex internal use only PowerPoint templates continued Commissioning a photo shoot Section 3: Creating new POPs and Testimonials Commissioning a photo shoot 5. A general customer release form is required from each individual (employees, contractors, or non employees) that appear in any photograph or image whether the photograph or image will be used internally or externally: PowerPoint templates Word templates – Customer Release Agreement.doc 6. The responsible manager should complete an SPSA checklist before proceeding with the photoshoot: Standard legal forms – Caltex Photography Film/Video SPSA Checklist.doc Please remember that photo release forms should reside with Caltex and not with the contractor, as all photos of Caltex operations are the property of Caltex. Use these links to view the legal forms that you will require when commissioning a photo shoot: Caltex Photography Standard.doc Caltex Photography Brief.doc Photography SPSA Checklist.doc Customer Release Agreement.doc Commercial Sector toolkit – for Caltex internal use only Creating new POPs and Testimonials Content templates Photography Copyright Deed.doc Commissioning a photo shoot We hope this information helps strengthen your personal "Performance Advantage" in your local market. Your feedback on how we can supplement and enhance this toolkit is welcome. Please send your comments and suggestions directly to your Commercial Marketing Manager for consideration. Good luck and good selling!