Brand value works less in the engine oil market of Bangladesh. Is it really true?
We have observed this market for a long and tried to understand its nature. The answer could be a simple one that the open market is the main reason behind this status, which is literally saturated one.
The conventional way of product marketing, agricultural-based oil demand, and the lack of awareness among the end-users are the key reasons too.
As a trade of the techno-commercial product, most new entrants had failed to create their brand value over the popular brands.
We found the marketers has accepted this trade as limited to the strategy in terms of pricing, and regular distribution policy rather than creating a brand engagement to the end users.
Demand is growing here to meet the requirement from the increased motorization, industrial machinery and equipment application, driven by the power, manufacturing, logistics, automotive manufacturing, and others.
Is this growing demand is ensuring the actual growth of the market?
A competitive market always allows product brands to enter in any trade to grab the market share. However, dealing with a saturated market like Bangladesh is really difficult.
Let’s come to the point. How many engine oil brands exist in Bangladesh? It is more than 100. But, how many of them are globally recognized?
“We are very much surprised seeing so many brands in Bangladesh, even in India we don’t have too many brands,” said Kaushik Mazumder, national sales manager to Veedol Lubricants in Bangladesh.
However, global brands like Mobil, Shell, Castrol, and BP who entered earlier in Bangladesh are enjoying around 35% of the total market share.
Rest 65% of the market belongs to those struggling brands and their individual market share is untraceable.
How this market can hold a lot of brands? It is as because of the lacks of the proper trade union as well as the lacks of proper monitoring.
That is why this market turns into a volatile one as it is easy to start importing brands from any corner of the world.
The entry of a new brand has a barely visible impact on the market.
Recently, the market-insiders have brought out a concerning message for the recognized brands. And their statement is that existing trademark brands are losing 5% of its lubricant shelves every month.
The market players should concentrate on the overall market scenario to regulate it to make it business- friendly for the future. The more open this market, more unregulated market it is.