David Lancaster, Lubrizols Hazelwood, U.K.-based commercial marketing manager for Europe, the Middle East and Africa, told the ICIS Middle Eastern Base Oils & Lubricants Conference in Dubai that simple marketing tools and concepts can help promote brand value. Most important, said Lancaster, are industry and original equipment manufacturer formal qualifications. Lets use them.

Next, focus on differentiated end user benefits. Speak your end users language, Lancaster continued. Quantify the benefits of your products, such as improved wear. And use images to portray whats inside an engine.

The global and Middle East lubricant landscape is a place of rapid change. Globally, theres massive growth in lube demand in China and India, while the largest market, the U.S., is declining, as is the most complex, Europe.

New specifications and tests are introduced at an increasing rate. Over 70 new engine oil specifications have emerged since 2000, including OEM specs, said Lancaster. Three factors are driving these changes: increased demand for durability, the need for cost savings through fuel economy and coping with emissions.

Just 30 years ago, one heavy-duty diesel truck produced the same level of particulate emissions as 50 of todays heavy goods vehicles meeting Euro V specifications, Lancaster noted. Euro VI will cut particulate matter limits by a further 50 percent. Its not solely the lubricant, of course. But the lube is the enabler for the technology that provides benefits to society as a whole.

But these benefits come at a cost. In 1993, top tier passenger car development was typically 94,000. Today, said Lancaster, that has escalated to 1.34 million. And thats for one additive with one base oil. Add another base oil and the cost doubles.

In addition to the visible costs of engine testing, there are hidden costs of development, such as regulatory requirements for new chemical notification. There may be 10 or 20 components in an additive package that require registration in the nine regions of the world that currently have such schemes.

Lubrizol estimated that the additive industry spends just short of 472 million a year on research and development, of which some 182 million a year goes for industry registered drivetrain and engine tests. Ensuring lubricant performance requires a serious investment, and meeting OEM specifications can give lubricant marketers in the Middle East and worldwide an important advantage.

Based on its 2012 survey of more than 550 companies in the Middle East, Lubrizol found that the average age of heavy duty vehicles in the region is now just 7.7 years, as newer vehicles are entering the fleet. In addition, 83 percent of the surveyed fleet was dominated by six European OEMs: Daimler, Volvo, MAN, Scania, Renault and Iveco. And all of these OEMs, Lancaster noted, have technical requirements and corresponding specifications for lubricants.

OEM approvals are important, Lancaster continued. Investing in the right engine lubricant can eliminate risk. A poor quality engine lubricant may seriously harm an end users investment. In addition, using the wrong lubricant can void the warranty of vehicles that are still under warranty.

OEM specs can go way beyond ACEA and API requirements, said Lancaster. The benefits of having both API CH-4 and OEM approvals include extra protection in areas such as deposit control, wear protection and oil consumption.

Not all API CH-4 oils are equivalent. OEM approvals allow differentiation, Lancaster said. An SAE 15W-40 API CH-4 oil backed by key OEM performance claims can show quantitative and demonstrable performance benefits which are valued by the end user.

Formal approvals and industry licensing give quality assurance to end users, Lancaster said. Oil marketers gain brand synergy – it ties your brand, for example, to Daimler. And formal approvals allow brand differentiation, separating you from others oils.

Problems such as poor soot control, high oil consumption, sludge formation and lower engine efficiency can destroy a lubricant brand. A lubricant brand can easily be associated with an end user problem when you try to save a few cents per liter in formulating costs.

Lancaster concluded, OEM approvals and industry licenses represent significant value. They are recognized and valued in the Middle East and worldwide.