A Comparative Study of Brand Building Activities of Oil Marketing Companies in India with Their Western Counterparts
EPOCH Strategies for Marketing: Family Business and Entrepreneurship, International Conference Proceeding, pp. 45-60
17 Pages Posted: 9 Jan 2012
Date Written: January 7, 2012
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 does a comparative analysis of brand building activities of oil marketing companies in India with their western counterparts. This analysis would help identify opportunities for Indian oil marketing companies to increase their brand equity.
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)
JEL Classification: M31, M37, C12
Suggested Citation: Suggested Citation