In Bangladesh, brand value works less in the engine oil market, mostly in the regular trade, like agricultural needs, outdated vehicles and transports, and poor types of machinery.
The regular trade of these segments holds a major market share of the engine oil.
As a trade of the techno-commercial product, most companies had failed to create their brand value over the popular brands.
By nature, the companies are the authorized and exclusive distributors of the various trademark brands. We found they keep 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.
The trade always follows either the distribution-based or retailer-based marketing policy.
The conventional way of product marketing, agricultural-based oil demand, and the lack of awareness among the end-users are the key reasons too.
The market is growing to meet the demand from the increased motorization, industrial machinery and equipment application, driven by the power, manufacturing, logistics, automotive manufacturing, and others.
Now the distributors have many options to play with the existing brands in this saturated market. Every day they welcome the company representatives.
More than 100 brands and local oil trading companies exist in Bangladesh. So a market with numerous brands which is surprising, even many countries don’t allow many brands to exist.
That is why 65% of the market share belongs to several brands those are the various local and imported brands. And their individual market share is untraceable.
And it is the only country, where it is very easy to start importing brands from any corner of the world.
An open market economy always allows product brands to enter in any trade to grab the market share.
However, 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.