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North America’s profitable premium synthetic motor oil market is dominated by several well known brands, which include Mobil 1, Pennzoil Platinum, Castrol Edge, Valvoline SynPower and Amsoil. In this market segment the combination of brand strength, premium approvals and high performance claims provide value to the end customer and allow the oil marketer to command a premium price. The market for full synthetic oils is growing; unlike the rest of the North American passenger car motor oil market which is flat to declining. However, the impact of SAE 0W-20 and dexosTM may limit the growth of the very premium segment, and a lower tier full synthetic is likely to emerge. So, although ‘synthetics’ remains a growth segment, marketers will need to find new ways to differentiate and maintain the profitability of this value added segment. These include even higher performing products, such as Mobil 1 extended performance, Pennzoil Ultra, Castrol Edge with Titanium and Amsoil Signature Series. Today’s consumers are discerning and demanding. They want to cut the cost of motoring, reduce used oil and keep their cars reliably on the road for longer between services. But, at the same time, they are also looking for improved fuel economy, better engine protection and trouble free motoring. However, the consumer is not the only stakeholder with Gone are the days when a lubricant branded as a ‘synthetic blend’ brought value to the oil marketer by commanding a price premium G
Benefits of using next generation detergent inhibitor in full synthetic products: • Enhanced engine protection • Stringent cleanliness • Improved fuel economy (SAE 0W-20) • Extended drain interval • Blending flexibility
high expectations. OEMs are demanding improved lubricant performance to protect advanced engine hardware and to enable them to meet environmental legislation and offer longer warranties on their vehicles. To ensure oil quality meets their exacting requirements many OEMs, including GM, Toyota and Honda, are introducing their own lubricant specifications or recommendations. Gone are the days when a lubricant branded as a ‘synthetic blend’ brought value to the oil marketer by commanding a price premium. Today this claim says nothing specific about oil quality or performance and now applies to just about any motor oil that uses API Group III base stocks in its formulation – no matter how little. This has left many marketers without a true mid-tier product in their portfolio and many of the larger marketers are shying away from describing their products as ‘part synthetic’ or ‘synthetic blend’ because there is just no value left in those terms. The North American lubricant market is becoming increasingly segmented, with ultra low viscosity oils for fuel economy, GM’s dexosTM oils, high-mileage oils, re-refined oils and biolubricants, plus a growing number of private labels all finding a space. So with this increasingly complex and overcrowded marketplace how do marketers get any attention for their product? In our view, focusing on a premium ILSAC GF-5 oil gives marketers a real opportunity to differentiate their oil and tell consumers why theirs is better than the one next to it on the shelf. However, to achieve this differentiated performance formulators must choose the right combination of high quality base stock and carefully designed additive package and, at the same time, balance cost and availability issues. The combination of SAE 0W-20 viscosity grades with specifications such as dexos1TM, which require a 13% NOACK volatility, make it extremely challenging to formulate high quality, low viscosity differentiated products using conventional Group II or Group II+ base stocks. However, Group III supply is currently tight – although we expect this situation will ease as Neste Oil’s new supply reaches North America and as Shell’s GTL plant comes fully online. The other part of the equation is using the right additive package. In our view, the use of next generation detergent inhibitors in premium full synthetic products allows lubricant marketers to deliver value and capture a higher price for their products. The use of premium Group III base stocks, advanced viscosity modifiers and next generation additive packages offer oil marketers the ability to capture higher value through truly differentiated features and premium performance. These high performance oils not only meet the increasingly tough demands made by both OEMs and consumers, but also allow the marketer to more easily differentiate their oil from the competition and help to deliver improved returns.
Infineum P5711 Infineum premium additive technology offers significant performance advantages over conventional ILSAC GF-5 or dexos1TM technologies. When used to create full synthetic oils Infineum P5711 delivers a number of benefits: • Extends oil drain intervals • Improves fuel economy (in SAE 0W-20) • Delivers good fuel economy retention • Provides excellent oxidation stability performance • Improves engine cleanliness and deposit protection • Gives outstanding sludge protection • Exceeds ILSAC GF-5 and dexosTM requirements • Offers excellent low temperature protection • Meets all GM4718M specification requirements In combination with Infineum SV polymers it has a very broad viscosity grade coverage from SAE 0W-20 right up to SAE 5W-50, which provides better film thickness for severe applications.
North America’s profitable premium synthetic motor oil market is dominated by several well known brands, which include Mobil 1, Pennzoil Platinum, Castrol Edge, Valvoline SynPower and Amsoil. In this market segment the combination of brand strength, premium approvals and high performance claims provide value to the end customer and allow the oil marketer to command a premium price. The market for full synthetic oils is growing; unlike the rest of the North American passenger car motor oil market which is flat to declining. However, the impact of SAE 0W-20 and dexosTM may limit the growth of the very premium segment, and a lower tier full synthetic is likely to emerge. So, although ‘synthetics’ remains a growth segment, marketers will need to find new ways to differentiate and maintain the profitability of this value added segment. These include even higher performing products, such as Mobil 1 extended performance, Pennzoil Ultra, Castrol Edge with Titanium and Amsoil Signature Series. Today’s consumers are discerning and demanding. They want to cut the cost of motoring, reduce used oil and keep their cars reliably on the road for longer between services. But, at the same time, they are also looking for improved fuel economy, better engine protection and trouble free motoring. However, the consumer is not the only stakeholder with Gone are the days when a lubricant branded as a ‘synthetic blend’ brought value to the oil marketer by commanding a price premium G
Benefits of using next generation detergent inhibitor in full synthetic products: • Enhanced engine protection • Stringent cleanliness • Improved fuel economy (SAE 0W-20) • Extended drain interval • Blending flexibility
high expectations. OEMs are demanding improved lubricant performance to protect advanced engine hardware and to enable them to meet environmental legislation and offer longer warranties on their vehicles. To ensure oil quality meets their exacting requirements many OEMs, including GM, Toyota and Honda, are introducing their own lubricant specifications or recommendations. Gone are the days when a lubricant branded as a ‘synthetic blend’ brought value to the oil marketer by commanding a price premium. Today this claim says nothing specific about oil quality or performance and now applies to just about any motor oil that uses API Group III base stocks in its formulation – no matter how little. This has left many marketers without a true mid-tier product in their portfolio and many of the larger marketers are shying away from describing their products as ‘part synthetic’ or ‘synthetic blend’ because there is just no value left in those terms. The North American lubricant market is becoming increasingly segmented, with ultra low viscosity oils for fuel economy, GM’s dexosTM oils, high-mileage oils, re-refined oils and biolubricants, plus a growing number of private labels all finding a space. So with this increasingly complex and overcrowded marketplace how do marketers get any attention for their product? In our view, focusing on a premium ILSAC GF-5 oil gives marketers a real opportunity to differentiate their oil and tell consumers why theirs is better than the one next to it on the shelf. However, to achieve this differentiated performance formulators must choose the right combination of high quality base stock and carefully designed additive package and, at the same time, balance cost and availability issues. The combination of SAE 0W-20 viscosity grades with specifications such as dexos1TM, which require a 13% NOACK volatility, make it extremely challenging to formulate high quality, low viscosity differentiated products using conventional Group II or Group II+ base stocks. However, Group III supply is currently tight – although we expect this situation will ease as Neste Oil’s new supply reaches North America and as Shell’s GTL plant comes fully online. The other part of the equation is using the right additive package. In our view, the use of next generation detergent inhibitors in premium full synthetic products allows lubricant marketers to deliver value and capture a higher price for their products. The use of premium Group III base stocks, advanced viscosity modifiers and next generation additive packages offer oil marketers the ability to capture higher value through truly differentiated features and premium performance. These high performance oils not only meet the increasingly tough demands made by both OEMs and consumers, but also allow the marketer to more easily differentiate their oil from the competition and help to deliver improved returns.
Infineum P5711 Infineum premium additive technology offers significant performance advantages over conventional ILSAC GF-5 or dexos1TM technologies. When used to create full synthetic oils Infineum P5711 delivers a number of benefits: • Extends oil drain intervals • Improves fuel economy (in SAE 0W-20) • Delivers good fuel economy retention • Provides excellent oxidation stability performance • Improves engine cleanliness and deposit protection • Gives outstanding sludge protection • Exceeds ILSAC GF-5 and dexosTM requirements • Offers excellent low temperature protection • Meets all GM4718M specification requirements In combination with Infineum SV polymers it has a very broad viscosity grade coverage from SAE 0W-20 right up to SAE 5W-50, which provides better film thickness for severe applications.
