Enhancing Market Penetration Through Custom Automotive Lubricants
The client lacked technical expertise in lubricant formulation and was unfamiliar with the blending, packaging, and distribution ecosystem. There was also significant concern regarding market saturation due to the presence of several international and regional brands with established dealer networks. In addition, the regulatory requirements for product testing, standards compliance, and labeling across Gulf countries varied, making it difficult to streamline product development and launch. Price sensitivity and brand trust also posed key consumer adoption hurdles.
We conducted a comprehensive feasibility and route-to-market study for the client’s proposed entry into the automotive lubricants segment. This included benchmarking API standards, advising on base oil selection, recommending local blending partners, and mapping out a competitive pricing strategy. We supported the client in crafting a three-tiered product range (synthetic, semi-synthetic, and mineral oils) designed for different climate zones and vehicle types in the region. A parallel track focused on co-branding and white-label opportunities to fast-track brand exposure. Regulatory approval timelines and harmonized SKU design were incorporated to reduce time-to-market.
- Conducted in-depth market sizing across key Gulf states using passenger car population and oil consumption estimates.
- Benchmarked 12 competing brands in price, packaging, and certifications.
- Recommended reliable local blending facilities with ISO and API accreditations.
- Created launch-ready product profiles aligned with SN and SP API ratings.
- Designed a distributor incentive program to penetrate multi-brand workshops.
- Supported digital content and workshop training modules for mechanics.
- Pursue a two-phase rollout starting with mineral oils before introducing synthetic grades.
- Select blending partners with flexibility to meet low-MOQs and climate-optimized formulation.
- Secure certification from SASO (Saudi Arabia) and ESMA (UAE) early in product design.
- Introduce a rewards program to build loyalty among B2B workshop mechanics.
- Utilize digital marketing (YouTube mechanic influencers, TikTok garage reviews) to build trust with younger DIY car owners.
Within 18 months of implementation, the client successfully launched its own automotive lubricant brand with distribution across 900 workshops. Sales volumes reached 1.2 million liters in Year 1, exceeding forecasts by 35%. Gross margin was maintained above 18%, and the entry into lubricants increased average basket size per workshop by 22%. The client reported a 3.5x return on consulting investment through accelerated market entry, improved procurement cost from blending partners, and optimized distributor onboarding.
