Petro-Canada Lubricant's Food-Grade Competitive Analysis

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Part
01

Petro-Canada CL - Petro-Canada Lubricants

Petro-Canada Lubricants' competitive advantage is its use of the HT Purity Process to remove the impurities, found in many conventional products, that hinder performance. They advertise on TV and social media, including YouTube and Twitter.

Petro-Canada Lubricants

  • Petro-Canada lubricants' competitive advantage is their specialty fluids and greases that have a pure advantage in quality and performance. This advantage is a result of the company's use of the HT Purity Process to remove the impurities found in many conventional products that hinder performance. The purity process creates 99.9% crystal-clear base oils.

The company's unique selling proposition

  • Customers of Petro-Canada lubricants can make orders online through iBuy, an online platform that is available 24 hours daily. It is reliable and can be used in French, English, Spanish, and German. iBuy is also fast, secure, and easy to use.
  • Here is a recent example of a creative ad from Petro-Canada Lubricants via YouTube. Another recent example of a creative ad from Petro-Canada Lubricants is on Twitter.



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Part
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Petro-Canada CL - Nevastane

Nevastane's competitive advantage is found in its safety certifications and its software, which is designed to support their customers. Their selling proposition highlights not only Nevastane's safety but its support of both Halal and Kosher diets. Its advertising resources are targeted to professional magazines for food professionals and web sites in multiple languages.

Competitive Advantage

  • Total's brand Nevastane is a range of NSF H1-registered products used in the food processing industry.
  • They are formulated to ensure consumer safety in the event of accidental contact.
  • Total Nevastane lubricants also meet stringent ISO 21469 hygiene certification criteria.
  • The ISO 21469 standard is implemented voluntarily by lubricant manufacturers.
  • "This certification creates new benchmarks for lubricant manufacturers that ultimately benefit end-users by taking a holistic farm to fork approach to the manufacturing of food-grade lubricants."
  • They also provide an Industrial Lubrication data processing software called TIG 6, which customers can deploy and use to monitor their HACCP (Hazard Analysis and Critical Control Point) policy on a day to day basis.
  • Both the certification and the software ensure and demonstrate compliance give Nevastane a significant competitive advantage in selling to a food processor.

Selling Proposition

  • Nevastane's selling proposition is outlined on their site with several salient points.
  • They provide a warranty of NSF H1 formulations.
  • Their products are Allergen and GMO-free certified.
  • Nevastane is produced in ISO 21469 certified plants, and the products are Halal & Kosher certified.
  • Total has a full range of synthetic products, including PAO, PAG, Ester, outstanding performance calcium sulfonate complex, and PTFE greases.
  • There are currently 26 different products in the catalog, ranging from Nevastane 2+ (1), Nevastane AW 22 through 68 (4), Nevastane Clear (1), Nevastane EP 100 through 680 grades (6), Nevastane SH 10 to 68 (4), Nevastane XS 80 to 460 grade (7) and 3 other individual-specific use products.
  • The company has a global network of more than 120 affiliates and local warehouses, which allow them to deliver quickly to any food processing operation.
  • They not only supply the product, but they also provide technical experts in each country to support the food processor on HACCP approach and implementation.
  • TIG 6, the IL data processing software, is also part of their selling proposition.

Current Advertising







Part
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Part
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Petro-Canada CL - Cassida

Cassida's competitive advantage has to do with its range of products and industry certifications. One of its selling propositions is that its lubricants can be used on equipment that makes some of the most popular foods. The media used to promote Cassida are primarily social media pages and websites of retailers and the parent company Fuchs.

Competitive Advantage


Unique Selling Proposition

  • Cassida's selling features are linked to the fact that the industry considers their lubricants clean, safe and trusted. Drennan an oil company, emphasizes this in all its posts on their products.
  • Another feature is the fact that Cassida is backed by high levels of industry certification, NSF and ISO.


Creative Ads and Media Placement

  • Cassida does not do much marketing of its products, however, one creative ad depicts Cassida as a safe and trusted brand. One post shows highlights Cassida's products as being used on equipment that make foods loved by many.
  • In another ad, it depicts Cassida being used on equipment that handles meat. This suggests that they are Kosher and safe.
  • The company sells through oil companies retailers and distributors. These retailers have highlighted products on their social media pages such as YouTube, examples of which can be viewed here. It highlights the use of Cassida on equipment used to make ice cream.
  • In addition to Twitter and Youtube, posts on their products or the brand, are made on Facebook. These ads were placed on the social media pages of the parent company Fuchs as well as the retailers of the brand, such as Drennan and Davor.

Research Strategy

In search of Cassida's competitive advantage, unique selling proposition, creative ads, and media placement, we reviewed brand's web page, social media posts, and information published by its retailers/distributors. We did not much information on Cassida. Essentially, we put pieces of information together from the sources we mentioned above.

We did not find an independent website for the brand, instead we found a page with very little details of the brand or the products it carries. Much of the information found, came from the sources external to the brand and the parent company.
Part
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Part
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Petro-Canada CL - Kluberfood

Kluberfood offers specialty lubricants with high-end and high quality tribological solutions to customers all across the world. It caters to all the industries and its specialty lubricants in the food industry are ISO 21469 certified “and registered as NSF H1, 3H and HT1”.

1. Competitive Advantage

  • Kluberfood offers specialty lubricants with high-end and high quality tribological solutions to customers all across the world.
  • It caters to all the industries. Some of them include automotive, food and beverage, knowledge center, marine, mining and cement, textile and wind, etc.
  • The company publishes articles about its food and beverage lubricants and their safety while highlighting areas such as food processing, conveyor belt, package line performance, package line efficiency, heat transfer fluids, synthetic lubricating grease, and specialty lubricant.
  • Kluberfood keeps its customers and consumers informed every step of the way once they have made improvements or have new offerings. This allows them to be aware of lubricants that can enhance their business.
  • Kluberfood also has archived articles from various categories for easy access to website visitors. The archives date back to 2013. This enables the consumers to be able to see the progress over the past 6–7 years which would also help them to make informed decisions as it relates to doing business with the company and the needs that can be supplied.
  • Customers are able to make contact with the company quite easily because contact information is made available. There is also a prompt encouraging customers to stay informed by signing up to newsletters called TriboLetter where they’ll have access to even more details in whitepapers, cases studies, product information, and even gain access to the company’s tradeshow schedule.
  • The company declares transparency by making its adherence to California Supply Chain Act clearly visible on its website which also highlights their compliance to labor laws, only working with suppliers that are certified, training of staff, conducting audits, and maintaining internal accountability which is likely to attract consumers who are able to see the company’s value and standards.
  • Kluberfood makes it easy for website visitors to explore its products via product finder.

2. Unique Selling Proposition

  • Kluber Lubrication prides itself as the company that provides food and beverage lubricants that are safe and specific to food or beverages (eg. bread production or dairy production or meat processing) and can withstand certain temperatures and functions as expected.
  • Its speciality lubricants in the food industry are ISO 21469 certified and registered as "NSF H1, 3H and HT1.
  • To help customers and consumers understand the company’s reputation, Kluberfoods also highlighted its position as having NSF H1 registration which is needed for international food regulations compliance. This will help the customers to gain confidence in the company.
  • Kluberfood states its involvement and membership in the European Hygienic Engineering & Design Group, experience of over 80 years in the lubricant market, working with top manufactures, and the fact that over 100 of its “H1 lubricants are also certified as halal or kosher” is likely to attract companies that are catering to a more diet-inclined customer base.
  • All of its products in the food industry are considered to be both cost-effective and efficient.

3. Current Marketing Copy/Creative Ads

  • The company uses LinkedIn and YouTube to market its products.
  • LinkedIn: “Superior food-grade conveyor chain lubrication” using hashtags such as #foodindustry and #foodandbeverage, its presence/ attendance at SAG Conference [R]evolution 2019, its conveyor belt lubricant using hashtags such as #foodindustry and #foodandbeverage and more.
  • YouTube: “Greater efficiency for your filling line” and speed when using its lubricants in its “Coefficient of friction” video.
  • Kluberfood's current marketing and creative ads for the food industry are limited. Based on Moat, some of the other recent ads were for their high performance conveyor belts which was last active in September 2019.
  • Although the articles on the company’s website were dated in 2018, the company also uses images above the headlines in the food and beverage category to provide visual aid and attract customers who’d like to see and read what the company is able to do.
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Part
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Petro-Canada CL - Jax

JAX is a United States company that manufactures industrial lubricants. The company's primary advantage over competitors includes its history of outstanding customer service experience methods and innovative solutions, combined with work experience, field service, technical skills, and a global network of distributor partners.

Competitive Advantage

Unique Selling Proposition

Current Marketing Copy/Creative Ads

  • JAX Industrial Lubricants has no current marketing copy/creative ads.

Media Positioning

  • The company's media dissemination tools include its website, which the company recently upgraded to a more user-friendly and more productive version in terms of content, accessibility, and responsiveness.
  • The company has about 3,281 monthly web visitors and uses about 28 technologies for its website, which include iPhone / Mobile Compatible, Viewport Meta, and Google Analytics.
  • Another tool is the social media channel LinkedIn. JAX has 488 followers on LinkedIn and last posted about the change in JAX Leadership in April 2019. The company has no Twitter or Facebook channel.

RESEARCH STRATEGY

To answer the request, we searched for existing data on the company's website regarding its competitive advantage, unique selling proposition, current marketing copy/creative ads for JAX and their media positioning. We also consulted the company profile on trusted business directory sources such as Crunchbase and Craft.co. Unfortunately, we were unable to find any Current Marketing Copy/Creative Ads by the company.

To find this information, we started by searching through the company website for information regarding its marketing and advertisement commitment. We looked at sections such as the News and Press Releases, About Us, the company history, and Events. Our search proved futile as we found no data regarding the company's Current Marketing Copy/Creative Ads. The information available in the company's news section was about the change in leadership, which happened some six months ago and an upgrade to the company website done in June.

Next, we focused our search on public domain for media reports, news details, publications and articles about JAX Inc. Our search revealed only similar information as found in the company's news and press releases apart from which, no new occurrence about JAX Incorporation was available for public consumption. We then extended our search to social media to find some articles or publications by the company on its social media channel. This strategy showed that JAX only had a LinkedIn presence among all the social media tools deployed by similar companies such as JAX Incorporation. Also, the only information available on the company LinkedIn profile was about the change in company leadership and was posted about six months ago.

Lastly, we extended our search width to third-party sources and trusted business directory experts like Crunchbase and Pitchbook hoping to find recent news about the company in any of these sources or a forecast of the advertising spend by the company. This strategy yielded no result as the news section of the company's profile on these sources was blank. Since JAX is a private company, we had no access to the annual report in order to determine their total marketing or advertising spend from it.
Part
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Part
06

Petro-Canada CL - Bel-Ray

Bel-Ray's competitive advantage is their commitment to sustainability, protecting the environment, and corporate responsibility. The company's unique selling proposition is "Flex Your Engine". Their media is placed on platforms like Twitter, Instagram, and YouTube.

Bel-Ray

  • Bel-Ray's competitive advantage is their commitment to sustainability, protecting the environment, and corporate responsibility. They make non-toxic, food-grade lubricants for “clean” industries such as food, beverage, pharmaceutical and cosmetics processing.
  • Bel-Ray also makes biodegradable mining and industrial lubricants and specialized eco-friendly marine products.
  • The company's unique selling proposition is "Total Performance Lubricants".
  • Bel-Ray prides itself on its unique performance, quality and innovation in lubrication technology. This has helped it gain access to multiple different industries such as aerospace, automotive, energy, food, marine, military, mining, motorcycle, OEM, powersports, steel, and textile.
  • Their media is placed on platforms like Twitter, Instagram, and YouTube.
  • Here is an example of a current marketing creative ad for Bel-Ray from Instagram.
  • Here is another example of a current marketing creative ad for Bel-Ray via Twitter.
  • The company uses billboards and sponsor racing teams and rallies as well.

Research Strategy

To conduct this research, there was an initial analysis into Bel-Ray through their social media, official website, public releases, and news articles. This information was used to gather key data about the company and their marketing. This data was used to determine the competitive advantage, unique selling proposition, and current marketing ads for Bel-Ray.
Part
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Part
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Petro-Canada CL - Lubriplate

Petro-Canada's Lubriplate

In order to have a better understanding of the product, the research team elaborated an analysis of its competitive advantage, selling proposition, marketing strategy and media placement. Petro-Canada offers an efficient, reliable and outstanding variety of products with shear stability, a higher film strength than traditional lubricants, great customer service and a selling proposition that harbors a unique experience that emphasizes the superiority and quality of their product. Their marketing is mainly done on social media, relying on newsletters and fliers as well.

Competitive Advantages

Unique Selling Proposition

Marketing and Placement



Part
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Part
08

Petro-Canada CL - Whitespace

The whitespaces in the food-grade lubricants market are adherence to stringent food safety standards to win customers, building brand trust to attract and keep a customer base, extension of lubricant life to reduce equipment downtime and maintenance intervals, and providing in-depth training and support to customers in the usages and compatibilities between their products.

Food Safety Standards

  • SFK, (Swedish: Svenska Kullagerfabriken) a leading bearing and seal manufacturer in Sweden, say that food safety is the top priority of food and beverage manufacturers in their process of choosing lubricants.
  • Nevastane and Cassida are excellent examples of highlighting food safety standards. Nevastane advertises that their products meet stringent food safety standards, such as having warranties on their food safety formulations. Cassida stresses that as many as 95 of their products are registered with the NSF, and their facility is certified with ISO 2146.
  • Many companies such as KluberFood, Cassida, and Nevastane all advertise that some of their products are Halal and Kosher, further certifying their consumption for a wider audience.
  • Nevastane adds as well that their products are also GMO-free and allergen-free, which would open up their products to a very large array of consumers.

Building Brand Trust

  • Tyler Housel, head of Lexolube states that trust in a label's food products will make or break the company, highlighting that people will not consume food they do not trust.
  • Nevastane creates a level of trust in their products by advertising that they are both allergen and GMO-free, leaving many more people open to using their products. This takes away the stress behind consumption when there is a possibility of adverse reactions to products.

Extending Lubricant Life-Span

  • Food processing companies are continually trying to keep up with the high demand for their products, needing to increase their production to meet it. Higher production rates mean the machines will be under more stress for longer periods of time and will require better performing, and longer-lasting lubricants.
  • John Lorimor, technical director for Aerospace Lubricants says "In this environment, reducing equipment downtime becomes paramount in order to reach the equipment’s cost-saving potential, and therefore extended lubricant life and reducing maintenance intervals is a key aspect of lubricant selection."
  • Jax Lubricants cover all of these points in the advertisement of their products, stating "JAX formulation decisions are based upon product quality and field performance leading to substantial cost savings through extended machine life, reduced downtime and increased production."

Customer Support

  • Jim Girard, executive VP of Lubriplate Lubricants Company has noticed a trend of lubricant suppliers working closely with consumers. Customers might lack the very specific knowledge of the properties of the products they use and how they might interact with other products, which could lead to system stoppages.
  • "Customers are asking for help with understanding how lubricants are being used in their plants, how they should be used, and how employees should be trained in applying lubricants," Girard says.
  • Nevastane offers a comprehensive network of customer support, with more than 120 affiliates and warehouses worldwide, they not only offer local support but easy accessibility of their products.
  • Nevastane also offers their own software, TIG6, to consumers to help them manage and organize their industrial resources, along with in-in depth support from technical experts to help with the implementation of their products and services.

Research Strategy

To identify whitespaces in the food-grade lubricants market, we first identified consumer priorities and preferences when searching for food-grade lubricant products, to do this, we looked through consumer standpoint pieces on what to look for when searching for such products, and supplier standpoint pieces highlighting what consumers most prioritized in their searches for products, and what drove their choices. The research previously completed on each company by our team was an important reference from which company standards, information, and examples were drawn. As well as their priorities, we identified their requests, what they wanted from companies, which would suggest avenues for companies to take when attempting to field customer needs. To do this, we looked at pieces from industry leaders, highlighting the main support that customers were asking for in the industry.


Part
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Part
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Petro-Canada CL - Tradeshows

Major tradeshows in the food-grade lubricants space for the past three years include Global Petroleum Show, PACK EXPO, UK AD and World Biogas Expo, and CIM EXPO. Petro-Canada Lubricants is the only company in the food-grade lubricants space that participated in all the events.

Global Petroleum Show

  • The Global Petroleum Show (GPS) was held from June 11 – 13, 2019 in Calgary, Canada.
  • The Global Petroleum Show is known as "North America’s leading energy event" and it brings stakeholders in the oil and gas sector together to chart a stronger future.
  • The event had 53,657 attendees, over 1000 exhibiting companies, 22,571 represented companies, 170 expert speakers, 15 NOCs, and 30 IOCs.
  • Among top players in the food-grade lubricants space like FUCHS, British Petroleum, Total, Exxon Mobil, Petro-Canada, Chemtura (Anderol), Kluber, ITW, SKF, and Jax, only Petro-Canada Lubricants participated in the event.
  • Cibus, Nevastane, Cassida, Kluberfood, Jax, Bel-Ray, and Lubriplate did not participate in the event.

PACK EXPO

UK AD and World Biogas Expo

  • The UK AD and World Biogas Expo is the "largest international trade show dedicated solely to AD and biogas".
  • The 2019 event took place in Birmingham, UK on 3rd and 4th July 2019. The expo ran concurrently with the 2019 World Biogas Summit.
  • The Expo had over 3,000 attendees, more than 250 exhibitors, and over 100 speakers.
  • Among top players in the food-grade lubricants space, only Petro-Canada Lubricants participated in the event.
  • Cibus, Nevastane, Cassida, Kluberfood, Jax, Bel-Ray, and Lubriplate did not participate in the event.

CIM EXPO

  • The CIM EXPO is Canada's "premier mining trade show", and it features many companies exhibiting the latest mining tools, equipment, technology, products, and services.
  • The CIM 2019 EXPO was part of the CIM 2019 Convention which took place from April 28-May 1, 2019 in Montreal, Canada.
  • The event attracted over 5,000 attendees.
  • Among top players in the food-grade lubricants space, only Petro-Canada Lubricants participated in the event.
  • Cibus, Nevastane, Cassida, Kluberfood, Jax, Bel-Ray, and Lubriplate did not participate in the event.

Research Strategy

We started our search by looking for tradeshows focused on the food-grade lubricants space and we found ICIS Food Grade Lubricants conference. However, the last event was held in 2015 which is over three years ago so we did not include it.

We then searched for more general major tradeshows which included food-grade lubricant companies as participants. Major tradeshows are defined as those with over 1,000 attendees.

According to PR Newswire, top players in the food-grade lubricants space include FUCHS, British Petroleum, Total, Exxon Mobil, Petro-Canada, Chemtura (Anderol), Kluber, ITW, SKF, and Jax. We searched for them as relevant brands to find out if they participated in those trade shows.


Sources
Sources

From Part 09