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Taiwan’s domestic market has long been open to free competition in the field of lubricants,
and in recent years major international petroleum companies have rushed in to compete by
using M&A, integrated marketing channels and cost reductions. As a result, competition has
become ever more intense. Furthermore, rapid economic growth in the Asia-Pacific region
has stimulated demand in the lubricants market; China and Southeast Asia, particularly, have
become favored bases for deployment by international petroleum companies.
CPC’s Kuo-Kuang brand of lubricant oil leads in the domestic market, with a share of more
than 30%. Our company’s Lubricants Business Division espouses an operating strategy of
“consolidating domestically, expanding overseas,” adopting a twin-brand (Kuo-Kuang and
Mirage) marketing strategy in the domestic market while vigorously promoting quality services,
reinforcing marketing channels, expanding auto, motorcycle repair and garage channels
and using differentiated products and timely services to satisfy customers’ needs. The main
strategies for targeting overseas markets are to operate brands and distribution channels;
carry out direct exports and multifaceted trade businesses; promote the lubricating oil and base
oil businesses; serve successful overseas Taiwanese enterprises in the Asia-Pacific region;
and deploy Kuo-Kuang brand marketing channels. Using these methods, the company has
successfully entered the market in mainland China, Vietnam, Indonesia, the Philippines and
other Southeast Asian countries; and has used a quality product image, reasonable pricing
and stable supplies to establish a beachhead in Asia-Pacific markets for vehicle maintenance
and industrial oils.
In the field of liquefied petroleum gas, CPC’s monopoly was broken and it was exposed to free
competition after the government opened the LPG market in 1999. Formosa Petrochemical
Corp. entered the ranks of producers and independent traders began importing supplies.
As a state-owned enterprise and a major supplier of LPG, CPC is charged with the mission of
enhancing its operating performance while providing sufficient supplies of LPG to the domestic
market. In the field of household gas, CPC’s LPG Business Division makes full use of its
quality advantage and fully utilizes both its north-south transport and storage system and its
comprehensive marketing network to consolidate the market. With industrial gas, the company
works at strengthening customer service so as to both retain existing customers and develop
new ones. Furthermore, in response to increasing market competition in Taiwan the LPG
Business Division is planning to develop and expand international trading through the creation
of more overseas sales channels.
Other Business
