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Mak KL
Mak KL
Abstract
This research paper is based on the impact of brand positioning on the consumer purchase decision of lubricant consumers.
First of all researcher has found the different attributes of brand positioning . The attributes of brand positioning are
independent variables whereas the attributes of consumer purchase decision are dependent variables. After that the
researcher has found the relationship between the attributes of brand positioning and consumer buying behaviour by using
multiple regression analysis. So this research helped the PSUs to find out the important factors on which they should focus to
increase their market share. Multiple dimensional scaling has been used to identify the important dimensions of brand
positioning based on consumer perception. Different brand has been mapped on perceptual mapping to determine the points
of parity and points of differences.
Key words: Brand positioning, Perceptual mapping, PSUs, Multiple regression analysis
1.Introduction
1.1.Brand Positioning
Kotler aptly defines positioning as the the act of designing the companys offer so that it occupies a distinct and valued place in
the mind of the target customers.
Bovee et al defines positioning as the the process of promoting buyers to form a particular mental impression of our product
relative to our competitors.
David Aaker considered Brand Positioning a part of brand identity and value proposition that is to be actively communicated to
the target audience, and that demonstrates an advantage over competing brands.
Branding is the added value or augmented elements that determine a brands positioning in the market place.
Al Ries and Jack Trout said that to develop a positioning program, six critical questions must
be answered. They are;
What position do you own in the mind of the prospect, now?
What position do you want to own?
Whom must you outrun to achieve that position?
Do you have enough money?
Can you stick it out?
Does your communication match your position?
The market position of a brand shows where a specific brand is located. It also shows the relationship to competitive brands. We
can determine the market position of a brand on the basis of the answers to the following four questions:
Why (which benefits and advantages does the brand bring to the consumers).
When (determining the opportunities for which the brand is most suitable).
For whom (it is about the determination of the consumer of a brand or target group).
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Brand Name
Major Product
Bharat Petroleum
Corporation Ltd.
MAK
Hindustan Petroleum
Corporation Ltd.
HP
SERVO
Table 2: Psus Indian Oil Corporation, Bharat Petroleum Corporation Ltd., Hindustan Petroleum Corporation Ltd.
Company Name
Brand Name
Major Product
Castrol
Superfleet
Veedol
HDB 30, 40, 50, HDB 20W, 40, HDB 30, 40, HDC30, 40, HDC Fleet
30, 40
Table 3: Private Lubricant Manufacturer- Castrol Indian Ltd., Tide Water Oil Corporation Ltd., Gulf Oil Corporation Ltd.
Indian Lubricant market in India divided into diesel lubricant and petrol lubricant.
Market size and Demand of Lubricant Oil in India
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30%
Petrol Lubricant
Diesel Lubricant
70%
Figure 3
Source: www.scribd.com
The original equipment segment and retail trade are the two major marketing channels in the Indian automotive lubricants market.
PSUs sell their lube oil through petroleum retail outlet whereas major private players like Castrol sell their lubricant through
bazaar trade.
2.Literature Review
PSUs companies have lost market share from 90 percent in 1991 to 58.5 percent in 2012. The increasing dominance of Castrol, a
well enriched MNC in the lube oil sector, has added their woes. Castrol, which had a market share of six percent in 1991 had
increased it to 18 percent. To major gainers in market shares during this period are Tide water oil and Gulf oil India (A Hinduja
group).
100
P
e
r
c
e e
n
t
a
g
90
80
58.6
60
40
20
0
1991
2012
Year
Business Problem
Loss of market share of PSU in Lubricating Oil. (IOCL, HPCL and BPCL).
NOTE: During the 90s the market share of the PSU Lubricant sector were 90% and currently it is 60%. Now a days PSU is
spending significant amounts on Brand Positioning to influence consumer behaviour which was missing during 90s.
5.Research Objectives
To determine the important attributes of brand positioning of lubricant oil.
To determine the impact of important attributes of brand positioning of lubricant oil on consumer purchasing decision.
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1980-81
1990-91
2000-01
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
Personal Vehicles
Commercial Vehicles
Personal
Vehicles. M.
Auto
Taxis
Buses
Good
cars & Jeeps
cycles/Scooters
Rickshaw
Vehicles
22.48
64.13
3.83
1.20
1.52
6.85
21.74
67.51
3.51
0.57
1.06
5.61
26.64
64.53
2.52
0.53
1.20
4.59
30.66
63.64
1.43
0.48
0.90
2.89
30.73
63.58
1.33
0.54
0.93
2.85
30.92
63.17
1.40
0.66
0.91
2.91
31.21
62.85
1.34
0.70
0.89
2.99
31.34
62.64
1.27
0.84
0.89
3.02
31.50
62.43
1.19
0.94
0.86
3.08
Table 4: Percentage Distribution Of Registered Vehicles Of The Total
Source: Offices Of State Transport Commissioners
Total
100
100
100
100
100
100
100
100
100
7.Research Design
7.1.Exploratory Research
Exploratory research has been used to find out the different factors responsible for brand positioning of lubricant oil and the
impact of that factors on consumers purchasing decision.
7.2.Descriptive Research
Descriptive research has been used to find out the relationship between the attributes of brand positioning and consumer
purchasing decision.
8.Sources Of Data Collection
8.1.Sources Of Data
8.1.1.Primary data
Primary data will be collected from the four strata:
Four Wheeler segment consumers
Four wheeler segment consumers will be divided into the following strata
Non commercial four wheeler (petrol)
Non commercial four wheeler (diesel)
commercial four wheeler (petrol)
commercial four wheeler (diesel)
8.1.2.Secondary Data
Secondary data are required for the study and will be collected from the annual report of the lube companies, magazines.
8.2.Sampling
Total No. Of four vehicles in Delhi = 2412893 (Source: Population census 2011)
The sample size will be calculated by using Yamane, 1967 formula.
n=
N
1 + N e2
Where n = The sample size
N = The size of the population
e = The error of 5 percentage points.
n=
2412893
1 + 2412893 (.05) 2
=
399.93
=
400
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Cronbach's Alpha
.214
Reliability Statistics
Cronbach's Alpha
Based on StandardizedItems
.225
Table 6
Item Statistics
Mean
Price
Quality
Accessibility
Consumer Benefits
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2.41
2.17
2.78
2.25
Table 7
Std.
Deviation
1.421
1.204
1.337
1.063
N of Items
4
N
99
99
99
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1.000
.137
.049
.207
2.404
1.597
.068
Scale Mean if
Item Deleted
Price
Quality
Accessibility
Consumer Benefits
.049
-.249
1.000
.241
Mean
Item Means
Item Variances
Inter-Item Correlations
.137
1.000
-.249
.022
Table 8
7.20
7.44
6.84
7.36
Consumer
Benefits
.207
.022
.241
1.000
Item-Total Statistics
Scale
Corrected
Variance if
Item-Total
Item Deleted
Correlation
4.306
.217
6.433
.045
5.749
.011
5.111
.284
Table 10
Maximum /
Minimum
1.279
1.789
-.969
Squared
Multiple
Correlation
.062
.087
.124
.099
Varianc
e
.072
.152
.029
N of
Items
4
4
4
Cronbach's
Alpha if Item
Deleted
.021a
.349
.300
.043a
In the above table all the value of Cronbachs Alpha is positive which shows that the variables are fit into the reliability model
8.8.Multiple Regression Analysis
Multiple Regression has been used to find out the relationship between the independent variables Price, Quality, Accessibility and
Customer Benefits and dependent variables consumer purchase decision.
Descriptive Statistics
Mean
Std.
Deviation
PurchaseDecision
1.28
.453
Price
2.41
1.421
Quality
2.17
1.204
Accessibility
2.78
1.337
Consumer Benefits
2.25
1.063
Table 11
50
N
99
99
99
99
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Correlations
Purchase Decision
Price
Pearson
Correlation
Purchase Decision
Price
Quality
Accessibility
Consumer Benefits
Purchase Decision
Price
Quality
Accessibility
Consumer Benefits
Purchase Decision
Price
Quality
Accessibility
Consumer Benefits
Sig. (1-tailed)
1.000
.038
-.034
-.030
.083
.
.354
.370
.384
.206
99
99
99
99
99
Table 12
.038
1.000
.137
.049
.207
.354
.
.088
.315
.020
99
99
99
99
99
Quality
Accessibility
-.034
.137
1.000
-.249
.022
.370
.088
.
.007
.416
99
99
99
99
99
-.030
.049
-.249
1.000
.241
.384
.315
.007
.
.008
99
99
99
99
99
Consumer
Benefits
.083
.207
.022
.241
1.000
.206
.020
.416
.008
.
99
99
99
99
99
Coefficient Correlationsa
Model
1
Correlations
Covariances
Consumer
Benefits
Quality
Consumer Benefits
1.000
-.058
Quality
-.058
1.000
Price
-.191
-.140
Accessibility
-.243
.264
Consumer Benefits
.002
.000
Quality
.000
.002
Price
.000
.000
Accessibility
.000
.000
a. Dependent Variable: Purchase Decision
Price
Accessibility
-.191
-.140
1.000
-.036
.000
.000
.001
-4.492E-005
-.243
.264
-.036
1.000
.000
.000
-4.492E-005
.001
Table 13
Model
R
.114a
Model Summary
Std. Error
Change Statistics
of the
R Square
F
df1
df2
Estimate
Change
Change
.013
-.029
.459
.013
.310
4
94
a. Predictors: (Constant), Consumer Benefits, Quality, Price, Accessibility
R
Square
Adjusted
R Square
Sig. F
Change
.871
Table 14
ANOVAa
Model
1
Sum of Squares
df
Mean Square
Sig.
Regression
.262
.065
.310
.871b
Residual
19.819
94
.211
Table 15
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Dimension
Eigenvalue
4.341
2
3
4
5
.274
.202
.131
.053
Condition
Index
1.000
Variance Proportions
Constant
Price
Quality
Accessibility
.00
.01
.01
.01
Consumer
Benefits
.01
.43
.16
.02
.38
.22
.04
.31
.42
.03
.01
.88
.07
3.982
.00
.02
4.641
.01
.91
5.766
.01
.03
9.067
.98
.04
a. Dependent Variable: Purchase Decision
Table 16
Multi Dimensional Scaling has been used to measure the perception of consumers towards the different brand of lubricant oil.
First of all two dimensions price and quality has been identified on the perceptual map on which perception of consumers towards
different brands has been mapped.
After that consumers perception responses have been mapped on the perceptual map.
8.10.Perceptual Mapping
Perceptual map has been used to map the different brand of lubricant oil on two attributes price and quality.
Following brand has been mapped on the perceptual mapping:
Servo
MAK Lubricant
HP Lube
Veedol
Superfleet
Step 1: Perceptual Map of the lubricating oil in Indian market.
Step 2: Entered the two labels of the horizontal axis
For the upper side of the map Low Price
For the bottom side of the map High Price
Step 3: Entered the two labels of the vertical axis
For the left side of the map High Quality
For the right side of the map Low Quality
Step 4: Entered the brand to be mapped
Step 5: Scored each brand for the two attributes price and quality
Used a 1 to 9 scale
Horizontal attributes
1 = Low Price
5 = Equal mix of both
9 = High Price
Vertical Attributes
1 = Low Quality
5 = Equal mix of both
9 = High Quality
Step 6: Size of the circles shows the market share of the different brands.
1 = Small
5 = Medium
9 = Large
Brand
Servo
MAK Lubricant
HP Lube
Castrol
Veedol
Superfleet
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Horizontal axis
6
7
7
5
8
8
Vertical axis
7
6
5.5
7
4
3
Table 17
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Castrol
Servo
Low
Healthy
Quality
High Quality
Mak Lubricant
HP Lube
Veedol
Superfleet
High Price
Limited Choice
Price
Figure 5
9
8
7
6
5
4
3
2
1
0
BranServo
Mak
HP Lube
Castrol
Veedol
Supeerfleet
0
10
Quality
Figure 6
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Quality
7
Castrol Servo
Servo
Mak
Mak
HP Lube
5
1
4 4 5
7 Veedol
8
9
Supeerfleet
HP Lube
10
Castrol
Veedol
Supeerfleet
2
1
0
Price
Figure 7
9.Conclusion
With the help of factor analysis for factors price, quality, accessibility and customer benefits. Multiple regression analysis has
been used to find out the relationship between the independent variable price, quality, accessibility and customer satisfaction and
the dependent variable purchase decision. Multiple correlation coefficient concludes that the Pearson correlation coefficient
between purchasing decision and the price is 0.38, purchasing decision and consumer benefits is 0.83, purchasing decision and
quality is -0.34, purchasing and accessibility is -0.30. It means there is a positive correlation coefficient between purchasing
decision and price, consumer benefits whereas there is negative correlation between the purchasing decision and quality,
accessibility. Major brand of lubricant oil Servo, HP Lube, MAK Lubricant, Castrol, Veedol and Superfleet has been mapped on
perceptual map. The two dimensions of perceptual map are price and quality.
10.Limitations
This research will be limited only to Delhi region.
This research will be limited to four wheeler segment (Petrol and Diesel).
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