Lubricant specialist LIQUI MOLY expanding in the UK
Globalisation is a word that splits people into two camps. But it has a definite supporter and beneficiary in LIQUI MOLY. The German company, which specialises in lubricants, additives and car care, appreciates the importance of international business relationships. It’s not for nothing that its products are now sold in more than 90 countries around the world. And all the signs are pointing towards further growth.
LIQUI MOLY is represented on every continent. Europe is at the forefront with market coverage of 98 percent, more than in America and Asia. The managing partner, Ernst Prost, sees enormous opportunities in globalisation: “Wherever cars are driven in the world, there’s a need for our products” – in other words, there is huge potential around the world for the manufacturer of engine oils, car care products and additives for oil, fuel and cooling circuits: Out of the 640 million cars in the world, Ernst Prost views 500 million as potential. In the long term, he aims to achieve sales of 50 cents per car. The company, which manufactures its products exclusively in Germany, currently generates more than 40 percent of its revenue in the export business. A figure that is also set to rise.
Different solutions, one goal
The company’s definite goal is to expand its market share. But there are different ways of achieving this, depending on the country and region concerned: LIQUI MOLY generally works with strong local wholesalers as sales partners, such as in Indonesia, Australia and Russia. In other countries, its own foreign subsidiaries have proven their worth. Last year saw branches being opened in South Africa and Portugal. British LIQUI MOLY Treatments (LMT) Ltd. in Peterborough is headed up by Mark Smith. “We’re winning more garages and car accessory retailers for the brand on a daily basis, which is a fantastic development,” says the sales manager of LMT. In the eyes of the company boss, Ernst Prost, this proves that the company is on the right track: “There’s no standard recipe for our success. We assess the markets all over the world correctly and support them in an exemplary fashion.” This is accomplished by strategic market developers instead of sales representatives who are oriented towards the German sales mix – although every market has to be catered to individually. Based on the maxim “think globally, trade locally”, multilingual labels, local product names and advertising are just as matter of course as a product range tailored to the needs and purchasing behaviour of the customers – taking local fuel qualities and climatic conditions into account, for instance.
Made in Germany
Engine oils, grease, pastes, service products, repair tools and care products for vehicles are all part of the product mix offered by the full-range provider. And additives: Depending on the product, these have a cleaning or care effect and can be used as a precautionary measure or to solve specific problems. TÜV, Germany’s technical supervisory association, has tested a wide range of additives and confirmed their effectiveness: Clean engines run longer and are more efficient on fuel. This is better for the environment. Along with the TÜV seal of approval, LIQUI MOLY counts on the “made in Germany” mark of quality. Ernst Prost sets great store by this: “German quality workmanship is in huge demand abroad and enjoys an excellent reputation. We supply it to garages and retailers in almost every country on Earth.” To ensure that the highest demands and standards are met at all times, the company’s quality management is DIN ISO 9001 certified and its environment management DIN ISO 14001 certified.
Tailor-made marketing
The top-quality products are one pillar of success and the brand another, as the managing director emphasizes: “We invest an incredible amount in them because we are aware of their power and want to keep boosting this.” This creates a greater feeling of identity with the brand both in the company itself and among the customers. The additive specialist is currently involved in the World Touring Car Championship and the Asian and German series as the main sponsor of LIQUI MOLY Team Engstler, giving the brand a guaranteed TV presence worldwide. “This brand awareness has a pre-selling effect around the globe,” says Ernst Prost.
Campaigns like these are initiated and managed centrally from Germany. Sponsoring in relevant countries is another fixed element of the brand strategy. The FIA will be guesting at Brands Hatch for two of the World Touring Car Championship (WTCC) races. These will be held from 25 to 27 July and LIQUI MOLY Team Engstler will be on the scene with drivers Franz Engstler and Andrei Romanov. “Measures like these boost awareness of the brand around the world,” explains Ernst Prost.
Showcase
Trade fairs are organised at the German headquarters to guarantee a consistent corporate identity at both national and international level. The Automechanika in Frankfurt am Main stands out from the other trade fairs. Over 4,600 exhibitors will be presenting themselves to more than 160,000 visitors from 16 to 21 September – including LIQUI MOLY with a 400 m2 stand in hall 9.1, corridor C, stand 06 and hall 9.2, corridor C, stand 61. “This is a definite must for us every two years – a chance to showcase the brands. Retailers and garages around the world accept our invitations. We make the most of this opportunity,” says the managing director, looking forward to the industry’s most important event worldwide.
The company
LIQUI MOLY has been an important player in the automotive field for more than 50 years, with some 4,000 articles including engine oils, additives and car care products. Based in the south-German city of Ulm, the company develops, tests, manufactures and markets the extensive offering itself and enjoys close contact with reputable vehicle manufacturers: because high-quality engine oils are developed in parallel with modern vehicle technology.
In the fiscal year of 2007, the lubricant manufacturer’s growth curve headed steeply upwards. The company generated sales of €210.3 million – a record figure and an increase of more than 18 percent on the previous year. Ernst Prost gives the basic requirement for consistent, two-figure growth: “quality, brand, reliability and customer service.” And this growth also has an impact on the number of employees: Around 420 people now work for the company in Germany alone. However, the cost explosion in the crude oil market has resulted in economy measures and the expectation of profits for 2008 being curbed. According to the company boss, this is the toughest year in company history. But he still sees his task in an optimistic light despite this: “Speed, flexibility and commitment to our work set us apart from our oversized competition. This is why we will master the situation.” Compared to the mineral oil groups, LIQUI MOLY appears modest, but it is no small fry. With its strengths, it is real competition for the big players. “It makes us an interesting alternative” – of that Ernst Prost is convinced.
For more information, please contact:
LMT Ltd.
Mark Smith
28-29 Maxwell Road
Peterborough PE2 7JE
England
Tel.: +44 1733-396175
Fax: +44 1945-410918
marksmith.lmt@fsmail.net
For more information, please contact:
LIQUI MOLY GmbH
Tobias Göbbel
Head of Media Relations National
Jerg-Wieland-Str. 4
89081 Ulm-Lehr
Fon: +49 (0)731/1420-890
Fax: +49 (0)731/1420-82
Tobias.Goebbel@liqui-moly.de
Downloads
Eye on the world - press release - (LM_goes_worldwide_GB_EN.doc | 145,5 KB)
LIQUI MOLY boss Ernst Prost sees globalisation as an opportunity. - high resolution picture - (ernst_prost_fill_EN.jpg | 315,9 KB)
International trade fairs such as Automechanika are a definite must for globally operating companies like LIQUI MOLY. - high resolution picture - (Automechanika_EN.jpg | 225 KB)
Made in Germany – an essential mark of quality for LIQUI MOLY. - high resolution picture - (Made_in_Germany_EN.jpg | 417,7 KB)
Every market gets the advertising materials it requires. And LIQUI MOLY’s offering is suitably versatile. - high resolution picture - (Prospekte_EN.jpg | 606,8 KB)
Grabbing attention around the world: As the main sponsor of LIQUI MOLY Team Engstler, the company showcases the brand in the World Touring Car Championship - high resolution picture - (Engstler_France_EN.jpg | 299,5 KB)
Consistently high-quality goods require regular quality controls. At LIQUI MOLY, all products undergo a series of fixed checks from goods receipt through to delivery. - high resolution picture - (Qualität_Scholer_EN.jpg | 1,2 MB)
LIQUI MOLY tests and develops products in its own laboratories. - high resolution picture - (Labor_SLS_EN.jpg | 766,3 KB)
Additives clean and maintain engines. They are the core of LIQUI MOLY’s business. - high resolution picture - (CeraTec_fill_EN.jpg | 121,4 KB)
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