ASSESSMENT OF FACTORS HINDERING MARKET LEADERSHIP IN PETROLEUM PRODUCTS IN THE CASE OF NATIONAL OIL ETHIOPIA PLC (NOC)

Abstract

Marketing is a key tool by which business organizations are able to achieve corporate objective they are primarily intended for. Likewise, owning a leadership position in certain industry needs a strong orchestration of marketing strategies in view of responding to demand outlying over the market and competitors actions. Likewise this study is intended for identifying factors constraining National Oil Ethiopia plc (NOC) in leading the Ethiopian oil industry particular to lubricants business segment. The Ethiopian downstream petroleum companies are composed of both multinational and indigenous firms in which the multinational companies are having an upstream source serving them as one of the competitive advantages they are having over the independent local marketers. Hence, as a strong market challenger with significant share in the market, National Oil Ethiopia plc (NOC) has been sustainably securing a second position in an industry with fierce competition. However, pinpointing the major factors hindering NOC not to possess the leadership position is still vital. Accordingly, this study is envisioned for addressing both internal and external factors banning NOC not to own the leadership position. Thus, responses for the major customer segment of the company namely Distributor, Reseller and dealers are used as an input in revealing gaps observed from the external stakeholders point of view from the major marketing mixes perspective. Furthermore, internal responses from the marketing officials and sales person in the company were addressed in pinpointing the extent to which devised marketing strategies are compatible with the level of competition outlying over the market. Secondary data from government bodies have been utilized to supplement the findings as well.As a result areas including branding, packaging and pricing are found to be where the company is challenged of most as compared to the outlying competition over the market as an internally sourced gaps. In addition Price ceiling by MOT, Illegal importation of lubricants, and challenges from entrants were observed as an external gap to be further addressed by the company in its strive towards owning market leadership in the industry.