Learning for Public Sector Oil Marketing Companies in India to Manage Business in Turbulent Times

Abstract

Indian market is dominated by Public Sector Oil Marketing Companies in the marketing of petroleum products and the customer behavior that has intrigued the marketers has been lack of customer brand loyalty. Today marketing of petrol has changed from what it was and petrol is on its way to transformation from being an 'undifferentiated commodity' to a 'branded product'. Although companies have introduced different octane fuels, the lack of switching costs creates a challenge for marketers as consumer has no reason to stay with one particular brand. In the present times of continuous increase of fuel prices, rising inflation and continued weakening of Indian Rupee against the US Dollar, it has become difficult for the oil marketing companies to increase their market share and the share of customer wallet. The companies in the west faced a tougher recessionary period as compared to their Indian counterparts and have succeeded in sustaining themselves in such tough times by devising various strategies to increase their brand value. This paper analyses the brand building activities of the top five oil marketing companies in the west and identifies the opportunities and learning for Indian oil marketing companies to manage their business in turbulent times.

Keywords: brand building activities, oil marketing companies, customer loyalty, brand value, Hindustan Petroleum Corporation Ltd.(HPCL), Bharat Petroleum Corporation Ltd. (BPCL), Indian Oil Corporation Ltd. (IOCL), Shell, British Petroleum , Esso, ConocoPhillips, Chevron