Discuss Of China Industrial Lubricating Oil Company's M2C Direct Selling Model

Industrial lubricating oil is called the blood of industrial, different from gasoline and automobile engine lubricating oil, which belongs to typical industrial activities, so characteristics of its sales model with general industrial products sales, for example sales agents, rational purchase, purchase quantity and large amount, high technical requirements, direct selling, and so on. Industrial lubricating oil market is occupied by several multinational firms year by year, such as ExxonMobil, shell, BP, Castrol, CNPC, Sinopec, and other Fortune 500 enterprises. Most of these huge multinational firms have industrial lubricants divisions, and agency channel is the majority way while they are selling industrial lubricants. The benefits of this model are in many aspects, for example, quickly join in a new market, reducing costs in human resources, reducing the management costs and so on. Agency channel has become the only choice for those multinational companies in the market of China. But for the smaller size of enterprises of China domestic, if they want to increase the market share in China, they have to enhance their core values---flex and price. The biggest problem of agent channel is the supply chain has been extended between manufactures and end consumers, it means the price will be increased.So this thesis intends to find out a proper way for Chinese domestic industrial lubricating oil companies. At the beginning of this thesis, the author will analysis the current selling models in China industrial lubricating oil market; and then summing up a trend through a case of BP industrial oil selling model in Asia Pacific. Then the author will bring out the main body of this thesis, which is how to design a M2 C Direct Selling model for an industrial lubricating oil company.