Mobil 1 motor oils prove to be a big hit in Russia

Sales of Mobil 1 lubricants are paced by a new product lineup tailored to consumers at each stage of auto-engine life.

Automobiles, especially imports, have become prized possessions in Russia among the country’s rising middle class. To keep their cars in peak condition, owners overwhelmingly insist on using automotive products with a reputation for superior performance — products such as Mobil 1 lubricants.

In the world of lubricants, synthetics are widely regarded as the gold standard due to their superior properties in protecting high-performance engine parts when compared with conventional motor oils.

Mobil 1 is the leading brand of synthetic motor oil in Russia, and this nation of approximately 140 million people is one of the fastest- growing markets for Mobil 1. Other top international synthetics marketers are campaigning to trim Mobil 1’s lead, especially in the competitive category of passenger vehicle lubricants (PVLs).

To bolster its position, ExxonMobil revamped its PVL lineup this year and introduced Mobil 1 Ages, a new concept in product selection tailored specifically to the Russian market. The effort is already boosting Mobil 1 motor oil sales and extending market penetration in the country.

A land of “do-it-yourselfers”
During the past four years, purchases of new foreign cars in Russia have jumped more than fivefold. This spring, foreign car sales surpassed sales of local makes such as Lada and Volga for the first time in history. Until Ford Motor Company opened a Russian factory in 2002, all foreign autos in Russia were imported.

“Now most of the major foreign auto makers are here,” says Yrjo Jalasvirta, head of the representative office for ExxonMobil’s Lubricants and Specialties Russian Cluster. “St. Petersburg is becoming the Detroit of the East.”

In July, Ford rolled its 250,000th automobile off its Russian assembly line, and other major manufacturers experienced increased production as well.

Julian Proddow, automotive marketing manager for ExxonMobil Lubricants & Petroleum Specialties Company (L&S), notes that in emerging markets such as Russia and Eastern Europe the majority of car owners are “do-it-yourselfers” who perform their own oil changes.

“Even as upwardly mobile consumers have begun getting their cars serviced, most still prefer to buy motor oils from independent retailers or, to a lesser extent, from traditional openmarket bazaars,” says Proddow. “It’s therefore important for lubricant marketers to reach the eyes and ears of the end user.”

“Typical Russian motor-oil customers are decision-makers,” says Henrik Guldberg, L&S marketing communications manager for Europe, Africa and the Middle East. “They shop around, and they seek purchasing advice from car manufacturers, mechanics, automotive magazines and friends.”

A sound message for consumers
“In Western countries, it’s harder for a brand to stand out,” adds Jalasvirta. “The quality of various brands is about equal in the consumer’s mind. In Russia, however, people tend to listen more closely to messages about different products.”

Based on extensive consumer research, Mobil 1 Ages addresses two key challenges: Russia’s mixed inventory of automobiles, ranging from the very old to the very new, and a consumer desire for more information about choices of lubricants. The key message behind Mobil 1 Ages is that there’s a synthetic motor oil for each stage of an automobile’s life — new, midlife and older.

“It addresses the perception that Mobil 1 motor oils are just for new high-end cars,” says Guldberg.

The revamped product lineup comprises three formulations: New Life, Peak Life and a new entry, Extended Life, designed to protect older engines via a combination of increased antiwear and seal-swell additives. The first shipment of the new product line rolled into Russia about one year ago.

“Mobil 1 Ages is a highly integrated marketing campaign, reaching target audiences through advertising, retail outlets, a trade education program, the Internet and a traveling exposition,” says Guldberg. “Going to expositions is a Russian tradition.”

Mobil 1 profiled throughout Russia
The premier exposition, held in Moscow last February, featured a photography exhibition — The Mobil 1 Perspective: Cars, People, Generations — that showcased the evolution of the automobile in Russia and around the world.

Guests at the opening event included ExxonMobil business partners, automotive journalists and local celebrities. Among the presenters was Bill Maxwell, considered the “father” of Mobil 1 synthetic motor oils, who is a distinguished engineering advisor with ExxonMobil Research and Engineering. As a young Mobil engineer, Maxwell was part of the global team that developed the original synthetic PVL formulation in the early 1970s.

The leading luminary of the Moscow event was Vodafone McLaren Mercedes Formula One driver Lewis Hamilton, who opened the photo exhibition and described Mobil 1 as “the unsung hero of Grand Prix racing.” In collaboration with ExxonMobil engineers, Hamilton’s race team tests the performance of new lubricant technologies on the track.

The exposition traveled through Russia in March and April.

“We focused mainly on the European side of Russia — Moscow, St. Petersburg and Krasnodar — where the automotive market is strongest,” says Jalasvirta. “However, we also went behind the Ural Mountains to the Asian side to Novosibirsk and Ekaterinburg.

“Our distributors were very happy that we came to the field and further raised the profile of Mobil 1,” he says. “The retailers are quite pleased that they now have more information to tell consumers about why they should choose one motor oil or another.”