In Bangladesh, the lubricants oil market is one of the unstable markets. Many oil marketers are enjoying their lubricants business and more brands are entering this market. However, the market analysis on this industry has outlined few observations. It has found least reporting or proper knowledge on quality lubricating oil, which are the main reason for lagging behind this market.
In recent years, the power sector has got more attention to media because of the national agenda by the present govt. A brief analysis of the case studies and market insights has drawn the nature of the lubricants oil market in Bangladesh.
The lack of market research and the least reporting on this market might see as the limitations to its natures. These natures are limited to both communication and business strategy of the lubricants oil industry.
More brands to take entry
The number of oil marketers has been increased dramatically in Bangladesh. By nature, they are the importer or national authorized dealer. Apart from few established brands, most marketers are importers by nature. These importers were involved in the lubricants oil business as the distributor earlier.
More lubricants oil brands are entering in Bangladesh market. According to Bangladesh Energy Regulatory Commission, “Around 350 application has been filled to open LC for bringing abroad oil brands”
Open barrel making policy
It is alarming, many local brands are being disparate to market their products deploying the toll blenders. It is a forthcoming peril for the existing popular lubricants brands. And the toll blending facility is an open barrel making policy. It has liberalized an uneven practice, thus created an opportunity for the local lubricants oil business.
More new brands will enter into this growing lubricant industry. But it is more challenging for the new brands to cope up with this market situation, even to establish in the lubricants oil shelf.
Still, the distributors, retailers, and garage mechanics are the key players in the automotive and mono-grade market. However, the marketer always has to think about purchase decision of customers in the consumer market.
Market observation says the key lubricants oil brands are struggling to enjoy their brand values. Still, it is a question how the brand value is working in this sales-driven market. Other quality brands are trying to take the market share, also fail to achieve that goal because of the nature of the market.
Here, in this backdrop, to establish a new brand in this market is quite hard. And this market is yet to transform its business strategy.