Total is an energy provider

Total is an energy provider

Automotive economy:Mr. Katzengruber, there is currently a lot of speculation that the upcoming electric cars will take business away from the lubricants industry, especially when it comes to engine oil. Are you sweating yet?
Günther Katzengruber:But not at all! (laughs) I'll say it very clearly: we're not afraid of the electric buckets. There are several reasons for this. Firstly, the share of electric cars is currently so low, both in terms of new registrations and the total number in Austria, that even a massive boom will have no impact on the liters sold. Secondly, Total is not just a lubricant manufacturer, but an energy provider. In this respect, we basically have no problem with electric cars; we just supply the electricity for them. (laughs)

So does that mean that the domestic lubricants market is still producing a lot?
Günther Katzengruber:The domestic market is no longer growing; on the contrary, it is shrinking. According to our analysis, by 0.5 percent annually. With all of our products in all divisions (cars, trucks, motorcycles, agriculture, etc.) we currently have a 13 percent market share. But for us that means that 87 percent of the pie is still there. And we want to get more of that in the coming years.

And you will now mention total direct sales as a USP, right?
Günther Katzengruber:Correct! (laughs) The nice thing is that we are very successful with direct sales – unlike our competitors. That's why we will stick to it. By the way, our Austrian solution is currently setting a precedent across Europe: we recently opened a branch with direct sales in Croatia and Portugal.

Augustin Rigaud:It should not be forgotten that by selling directly to our partners, we also protect their margins. No end customer can come into the workshop with Total or Elf oil from the supermarket and ask to fill it in. In this way, we help significantly to generate healthy contribution margins. Direct selling also eliminates price discussions because our products are not available cheaper elsewhere.

Mr. Rigaud, you are leaving marketing in Austria and moving west. What happened?
Augustin Rigaud:Honestly, I got a tempting offer. I wanted to gain sales experience before I turned thirty and the Total Group offered me the opportunity to take over fuel card sales in the greater Bavaria area. You can hardly say no to that. (grins)

You are currently training your successor, Sophie Cornu. Ms. Cornu, will anything change under your marketing leadership?
Sophie Cornu:I don't believe. Augustin has done a great job, the results of the last three years prove this. Through direct sales we can do very direct marketing, which is exciting because we get immediate feedback from our partners and the sales team and quickly determine whether the direction is right.
Günther Katzengruber:That's the way it is. With Augustin we had a highly professional marketing specialist on the team for the first time, with new, creative ideas, and that paid off. And I am convinced that I have found a strong, creative successor in Sophie.

Hand on heart: How long will Total be willing to continue selling directly?
Günther Katzengruber:Quite a while longer. (smiles) Last year we were able to gain two importers, KIA and Kawasaki, as lubricant partners. We have thus positioned ourselves strongly in both the passenger car and motorcycle business with the Total and Elf brands. Our path is right, we have a strong, motivated sales team, and according to our customer survey, we enjoy the highest level of trust from our partners.

Speaking of Total and Elf: Are there any considerations about reducing yourself to one brand?
Augustin Rigaud:No, not at all. We will continue to be present on the market with Total and Elf. They are two strong, high-quality brands with a good image. Of course, there are certain differences depending on the division. In the two-wheeler sector, we are only represented with Eleven on the domestic market, although there are also Total motorcycle oils. Vice versa in the truck market, where we have a very strong presence with Total. And in the passenger car sector we will continue to have the same presence with both brands.

Keyword presence: There are competitors who also have a strong visual presence in workshops. Total is holding back. What are the reasons?
Sophie Cornu:Total supplies the highest quality lubricants, offers competent support and an experienced sales team. We want to score points with our products and services and not with the most eye-catching facade painting.
Günther Katzengruber:Honestly: Workshops should remain workshops and not become Total or Elf stores. We are happy to provide our partners with advertising material and advertisements at any time upon request. But I would prefer that the independent Huber workshop remains Huber and whose company name is present, but that we can ensure the appropriate margins and income with great products and services in the background. That is our path and I believe that it is the right one on home soil.