MARKET SEGMENTATION IN PETROLEUM PRODUCT MARKETING: A CASE STUDY OF UNIPETROL NIG. PLC.
MARKET SEGMENTATION IN PETROLEUM PRODUCT MARKETING: A CASE STUDY OF UNIPETROL NIG. PLC.
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Date
1997-10
Authors
JEGEDE, OLORUNFEM1 CORNELIUS
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Abstract
ABSTRACT
Business under the prevailing economic environment, have to be
efficient to survive. Faced with diminishing markets, businesses have
had to compete more aggressively with one another to attain
acceptable sales volumes and market share.
This development has brought the marketing function to the fore
front of business activity in the country. Businesses now find it
necessary to fashion out strategies and marketing programmes aimed
at growth, market retention or simply, their continued existence as a
going concern. In performing this function at a time when costs have
become more critical than ever before, marketing managers have to
ensure that resources available to them are effectively utilised to
achieve set objectives.
This study is an attempt to investigate the application of the
concept of market segmentation in marketing petroleum and allied
products by the major petroleum marketers with Unipetrol Nig. Plc, a
major marketer as a case study. Three petroleum products were
considered for the study viz: premium motor spirit (PMS), Diesel and
engine oil - a lubricant.
The study reveals the various segmentation strategies/approaches
unipetrol employs in marketing the three products under study. Two
of the products: premium motor spirit (PMS) and Diesel has almost
the same segmentation strategy while Engine oil-a lubricant, has a
different segmentation strategy. The marketing strategy used for
premium motor spirit and diesel is the undifferentiated strategy while
differentiated strategy is used for engine oil. Unipetrol Nig. Plc uses
two main criteria to select market segments for the three products
under study, these are recheability for premium motor spirit and diesel
and size of the market is used for engine oil. Geographic
characteristics is the basis for market segmentation for the three
products while the segmentation strategy for premium motor spirit and
diesel in market orchestration and that of engine oil is product
differentiation.
Market segmentation has enabled Unipetrol Nig plc witness
increased total sales leading to a satisfactory sales performance over
the last five years.
Description
Department of Business Administration,
Faculty of Administration,
Ahmadu Bello University, Zaria.
Keywords
MARKET,, SEGMENTATION,, PETROLEUM,, PRODUCT,, MARKETING:, CASE STUDY,, UNIPETROL,, NIG. PLC.