SEGMENTATION AND MARKETING STRATEGY : A CASE STUDY OF A COMPANY IN THE CONSUMER LUBRICANT BUSINESS

Abstract

The Singapore consumer lubricant market is not only interesting and unique, it is little known - the core product, lubricants, is undifferentiated; yet, there is strong brand, price and product differentiation in the market place. This study, through a company case, focusses on how consumer motor lubricants are managed and marketed. The motor lubricant business is technology driven and this study examines the company's participation in the consumer based segments, which are two of the three segments in the motor lubricant market - the Retail market segment (service stations in Singapore) and the backstreet market segment (highstreets of Singapore). Both segments exhibit different behaviour, the retail segment is highly visible and somewhat regulated whilst the backstreet segment is fragmented and extremely competitive. Besides doing a detailed segmentation study, this project examine the market structure, market characteristics, distribution behaviour and marketing strategies of participants in the selected segments. Motorists' buying behaviour and attitude towards consumer lubricants in both segments are also reviewed. For the case study company, major problems and opportunities together with their marketing programmers are examined. This is followed by recommendations to make the case company more effective and to increase their market share in both segments. In the consumer lubricant business, improve corporate performance comes with good after sales services an engaging in sustained advertising and sales promotional activities but this must be supported by good product and corporate image and the use of the right marketing strategies for each segment.