Sunday, April 5, 2009
Almost a decade back the fear of competition forced the PSU oil companies to become more market savvy, the logos were changed , the retail outlets were refurbished, some of them started their own retail ventures to make best use of the available space and along with that came the concept of branded fuel. Each of them had their own brand of extra mileage fuel and though people were initially sceptical about the actual benefit now many users have slowly started using branded fuel...
Now there are conflicting news on the actual benefit that a user might derive out of using branded fuel. The state-run oil companies have not been able to back up the claims to Monopolies and Restrictive trade practices Comission (MRTPC)that the branded fuel gives higher mileage and better engine performance. Link Though a cursory visit to their websites provides many details of the benefits of branded fuel, HP Power, IOC Speed
A couple of years back I had written about my observation on how branded fuel was being used by auto-riskha drivers, which showed that they were able to get the extra mileage by using branded fuel. And managers at the oil companies are clear on the benefits from these. Maybe there is an urgent need on the part of the companies to react quickly and provide the backing for their claims on branded fuel otherwise it could lead to a back lash from consumers.
Because consumer value is part perception and part reality, and a successful product is a good mix of both, same hold true for branded fuel, once the users starts doubting the authenticity of the claims of the company sales and bound to drop,