India: IOC Promotes Branded Fuels
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Tuesday, 13 May 2008 |
Mr G.C. Daga, Director Marketing, of IOC has told local media that IOC
is moving more and more to branded fuels. The move is also seen as an
attempt to reduce the burden of selling fuel products under controlled
pricing.
IOC will be spending Rs 800 crore towards the retail segment, which
includes setting up new outlets, upgrading and automating existing
ones. On branding and promotional activities, the company spends about
Rs 35 crore annually.
IOC has notched up a market share of over 48 per cent for its branded
petrol XtraPremium with 38 per cent of its 17,700 retail outlets
offering it. In fact, the company has found 28.5 per cent of its
existing customers
shifting to the branded category.
In the case of its branded diesel XtraMile, the company has
posted 65 per cent growth, with a market share of 58 per cent and 17.3
per cent of regular customers opting for it. Branded diesel is being
sold at 58 per cent of the retail outlets.
Outlining the strategy for promoting branded fuels, Mr Daga said that
besides increasing the product reach at retail outlets, the company has
taken up a branding and communications exercise which includes
incentives
seller networks and making use of local campaigns.
Currently, depending on customer preference, the company sells branded
fuels through select outlets in metro and major cities. These
outlets have been picked because of consumer demand. In most of the
outlets both regular and branded fuels are available.
IOC is spending 30 per cent more this fiscal on
below-the-line-activities. "There will be structured training for pump
attendants and increased consumer awareness. Every stakeholder will be
involved in the process of
creating brand equity," Mr Daga added.
PetrolWorld 120508
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