internship report by arthor

1.0 INTRODUCTION

How promotion plays an imperative role in branding is the theme of

this report. These days, a brand is a crucial part of a product. In the

marketplace, we can find very few unbranded products. Consumers

have a tendency to view a branded product of high price, high quality

product. And here comes the role of promotion – to inform and

influence the customers about the brand. The primary objective of

promotion is to communicate with the customers. By exercising

promotion marketers try to aware the customers about the brand or

to create a positive image in the mind of the consumers. Again they

use promotion to create a strong brand association. But the

communication process is changing as the marketing strategies are

changing nowadays. Marketers are exercising the new concept –

Integrated Marketing Communication (IMC), a blend of promotional

tools to communicate with the customers.

1.1 ORIGIN OF THE STUDY

The Internship Report is prepared as a prerequisite for the completion

of the Bachelor of Business Administration Program of the

Independent University, Bangladesh. The objective of this internship

program is to provide the students an opportunity to have a real life

experience in the job market. From this curriculum, the students

obtain a prospect to translate their speculative idea in real life

situation. Under this program, students are placed in diverse

organizations or firms to learn practical stuffs and then they have to

submit a report on the topic assigned by the organization. The

duration of finalizing the report is approximately 3 (three) months.

The proposed topic of this internship report is “The Role of Promotion

in Branding: With Special Reference to Total Lubricants”. As a

The Role of Promotion in Branding: With Special Reference to TOTAL Lubricants 1

student of marketing, this topic helped me to get the facts about how

promotion affects in branding in the lubricant industry.

1.2 PURPOSE OF THE STUDY

The purpose of this study is to assemble information, analyze the

assembled information and finally offering some recommendations.

1.3 PROBLEM STATEMENT

The problem statement of this report is,

To determine the Role of promotion in building a brand:

With Special Reference to Total Lubricants

1.4 OBJECTIVES

1.4.1 Broad Objective

To optimize the Role of promotion in building a brand:

With Special Reference to Total Lubricants

1.4.2 Specific Objectives

o To identify the Role of Promotion in Branding

o To identify the Role of Promotion in Branding in Lubricant

Industry

o To identify the Promotional Activities of Different Companies in

Bangladesh Lubricant Industry

o To develop a Communication Program that ‘Total Lubricant’ will

Offer

1.5 SCOPE OF THE STUDY

The geographic scope of this study is entire Bangladesh. But this

study analyses only Chittagong region. And regarding the products,

only consumer automotive, more specifically engine oil has been

analyzed in this report. And about companies, this report analyses on

Mobil, BP, TOTAL, Caltex, Castrol, Sino, Fuchs, and Sharlu.


1.6 LIMITATIONS OF THE STUDY

Without any exception this report has some limitations too. The

limitations of this report are:

o This report ignores the industrial sector.

o The report could not have enough sources for data collection.

o This report is prepared on the basis of only Chittagong region.

o Lack of Time is another constraint to complete the report in a

discrete way.

2.0 TOTAL GROUP: A GLOBAL MULTI-ENERGY PROVIDER

Total Lubricants is one of the recognized lube oil companies in the

global lubricant market. The activities of TOTAL Group are shown

below:

o World’s fourth-largest publicly-traded integrated oil and gas

company

o Largest market capitalization on the Paris Bourse and the

euro-zone: €130,5 billion at December 31, 2005

o 112,000 employees

o Operations in more than 130 countries

o Exploration and production activities in 41 countries

o Producer in 29 countries

o More than 500,000 shareholders

o 2005 sales is €143,2 billion

TOTAL’s operations span the entire oil and gas chain, from

exploration, development and production to midstream gas, refining

and marketing, and crude oil and petroleum product trading and

shipping. Total is also a world-class chemicals producer, and has


interests in coal mines, cogeneration and power generation. In

addition, Total is helping to secure the future of energy through its

commitment to developing renewable energies, such as wind, solar

and photovoltaic power.

2.1 TRADE SERVICE INTERNATIONAL (TSI)

Trade Service International is the sole distributor of TOTAL

Lubricants in Bangladesh in 2003. It was founded in 1984. Its major

concern was TSI Constructions. But later they focused on lubricants

products. In 2001, they first brought ELF products in Bangladesh. But

when TOTAL acquired ELF they started to take TOTAL products from

2003.

2.2 PADMA OIL COMPANY LIMITED

Padma Oil Company is one of the petroleum and oil distributing

subsidiary of Bangladesh Petroleum Corporation. In 2003, Trade

Service International went in joint-collaboration with Padma Oil

Company Limited to sell and distribute their TOTAL products. Now

with this joint-collaboration TOTAL is now enjoying 428 refueling

stations of Padma.

2.3 MISSION

The mission statement is,

‘Making the brand and product categories familiar among the

potential customers through promotional activities as well as

increasing market share by 10% within December 2008.’

2.4 VISION

The vision is,

‘To be the market leader in the lubricant industry by providing

continuous customer satisfaction with high quality product at a

competitive price.’


2.5 PRODUCT PROFILE

TOTAL Lubricants has different product lines. It has automotive,

industrial, motor, tractor, aviation and marine lube oils. In case of

automotive, there are gasoline engine oil and diesel engine oil. Others

are hydraulic fluids, transmission fluid, gear box fluid etc. For

industrial products, there are hydraulic oils, compressor oils, gear

oils, turbine oils etc.

2.6 HUMAN RESOURCE PROFILE

The human resource profile is as follows:

Chairman Syed Mahmudul Huq

Managing

DirectorSyed Ruhul Huq

Director Syed Samiul Huq

General

ManagerAmir Hossain

Senior Executive

(Marketing and

Sales)

Ratan Sinha

Accounts Officer Johurul Islam

3.0 METHODOLOGY

Methodology is a process of choosing the appropriate method from

different available methods. It includes all the activities that are

required to conduct the research and translate it into a final report.

There are various sections of methodology, such as, research design,

data collection method, sampling design, and data analysis method.

3.1 RESEARCH DESIGN

Research design is the process that specifies the way the required

data will be collected. For the most part, this research report is


prepared on the basis of secondary data study. From the viewpoint of

function, it is a descriptive research.

The objective-oriented methodologies are as follows:

3.2 OBJECTIVE 1

3.2.1 Types of Research

Desk Research

3.2.2 Nature of Data

The nature of data of the report is ‘Qualitative Data’

3.2.3 Sources of information

The sources of information are ‘Secondary Data’. The sources are

different books of marketing management, brand management, and

promotions.

3.3 OBJECTIVE 2


Desk Research




The sources of information are ‘Secondary Data’. The sources are

previous office reports and websites of TOTAL Lubricants, EXXON

Mobil, British Petroleum (BP), Chevron Texaco (Caltex) and others.

3.4 OBJECTIVE 3


Desk Research





The sources of information are both ‘Primary Data’ and ‘Secondary

Data’. The primary data sources are depth interview with marketing

and sales executive and general manager of TOTAL Lubricants in

Chittagong. The secondary sources are previous office reports and

websites of TOTAL Lubricants, EXXON Mobil, British Petroleum (BP),

Chevron Texaco (Caltex) and others.

3.5 OBJECTIVE 4


Desk Research




The sources of information are both ‘Primary Data’ and ‘Secondary

Data’. The primary data sources are depth interview with managing

director, marketing and sales executive and general manager of

TOTAL Lubricants in Chittagong. The secondary sources are books of

marketing management, brand management, advertising and

promotion and websites of TOTAL Lubricants, EXXON Mobil, British

Petroleum (BP), Chevron Texaco (Caltex) and others. The

communication model is taken from ‘Principles of Marketing’ by Philip

Kotler & Gary Armstrong, Ninth Edition, 2003-2004.

4.0 LITERATURE REVIEW

4.1 Branding


Branding is an effective marketing strategy tool that has been used

with frequent success in the past. Today, branding is experiencing a

new popularity resulting from new, innovative applications. Although

there have been instances where branding has been less than

successful, marketers are beginning to find the appropriate

applications in a given setting. Issues and problems concerning

branding strategy today include the selection of a brand name. This

fundamental issue will impact on the success of a branding strategy.

Once a name is selected, marketers have to choose the advertising

strategy to support and communicate the name. Finally, keeping the

brand in a strong position is a critical concern. New areas of branding

include corporate, industrial, and service branding. These

nontraditional branding environments are becoming the future for

marketers using branding strategy (Source: Branding: A for Today

and Tomorrow by Joseph Arthur Rooney, Journal of Product and Brand

Management).

To add to the new branding areas, there are new branding

techniques. These techniques include brand extensions and ingredient

branding. New strategies, techniques, and arenas for branding have

to be managed. The organization must support and identify with the

strategy. The goals, objectives, and mission of any organization should

be in line with the branding strategy employed (Source: Branding: A

for Today and Tomorrow by Joseph Arthur Rooney, Journal of Product

and Brand Management, 1995).

4.2 Promotion

The major purpose of all marketing promotions is to communicate to

the customers and thus contribute to brand equity. And marketing

promotions can contribute to brand equity in various means of


creating awareness of the brand; linking strong, favorable and unique

associations to the brand in consumers’ memory; eliciting positive

brand judgment or feelings; facilitating a stronger consumer-brand

connection and brand resonance etc (Source: Keller, 2004).

4.3 Lubricant Industry

The lubricants industry is well on its way to becoming a global

business. Major international firms like Exxon Mobil, Shell, BP, and

Chevron Texaco are getting even larger and account for an even more

significant market share of the global lubricants business, which is

estimated at 37.1 million tons in 2003. Most of these major suppliers

are now also managing their lubricants business on a global basis.

Economies of scale are an advantage that these leading players seek

in this very competitive market. Therefore, competition is no longer

limited to local, regional, or even national markets but is increasingly

becoming global in nature (Source: Competitive Intelligence for

Global Lubricant Industry, 2003-2013 by Kline & Company, Kline

Group).

Industry consolidation continues to have a major impact on company

market share and ranking, on the manufacturing and business

economics, on base oil supply positions, and on the competitive

environment. Therefore, it has become even more important to

monitor the market shares, strategies, positioning, advertising and

promotion budgets, supply chain synergies, and outlook of these

players on a global basis (Source: Competitive Intelligence for Global

Lubricant Industry, 2003-2013 by Kline & Company, Kline Group).


Objective 1(To identify the Role of Promotion in Branding)


5.1.0 OVERVIEW

Generally speaking, ‘Promotion is Communication’. It is the activities

that communicate different attributes of the product to the customers

and convince them to buy it. When we look back at the history of

promotion we can see that the thought of promotion was different in

different periods. During the past several decades, marketing was

associated with mass production. Companies around the world

undertook the mass-marketing strategies – selling standardized

products to mass customers. They developed different mass-media

communication techniques to support their mass-marketing

strategies.

However, these days, mass markets have fragmented. Today

marketers are shifting away from mass-marketing to one-to-one

marketing. Now they are developing different focused marketing

programs to build closer relationship with the customers in micro-

markets. Market fragmentation has resulted in media fragmentation

(Kotler 2004).

In the glory days of mass marketing, consumer product companies

spent the lion’s share of their promotion budgets on mass-media


advertising. Today, media advertising captures only about 26 percent

of total promotion spending (Kotler, Armstrong). In this runway, last

addition is integrated marketing communication. In this concept firms

carefully organizes its different communication channels to carry out

an apparent, reliable and convincing message about the organization

and its products to its targeted customers.

Today a brand is an essential part of a product and marketers exercise

branding to attach value to a product. Nowadays consumers see a

branded product as a high quality, high price product whereas they

view any non-branded product as low in quality and thus banding has

become so important to the marketers.

5.1.1 BRANDING

5.1.1.1 Brand

For professional marketers the most distinctive skill is possibly their

ability to create, maintain, protect and enhance brands for their

products and services (Kotler 2004). More and more firms and other

organizations have come to the realization that one of their most

valuable assets is their brand names associated with their products

and services. In an increasingly complex world, individuals and

businesses are facing more and more choices but apparently have less

and less time to make those choices. Thus the ability of a strong brand

to simplify consumer decision making, reduce risk, and set

expectations is significant. Branding has been around for centuries as

a means to distinguish the goods of one producer from those of

another (Keller, 2004). It’s all about public Perception. Brands are the


public perception of a thing or person. Today customers do not buy

products, they buy brands.

There are numerous definitions of a brand. The American Marketing

Association (AMA) defines a brand as,

A name, term, sign, symbol or any other feature that identifies one

seller’s goods or service as distinct from those of other sellers. This

definition suggests that the brand value is associated with specific

seller or marketer. The definition also implies that the brand

differentiates a product or service from the competitors in the market

place.

According to Philip Kotler, a well regarded marketing academic, a

brand is

A name, term, sign, symbol or design, or a combination of these, that

identifies the maker or seller of a product or service. This brand

definition suggests that brand is the identification mark by which

consumers can identify the specific maker or seller in the market.

Today brands occupy a unique place in commerce. Brands can be

brought and sold. They can be franchised or rented. They can be

protected domestically or globally. Brands have value which is critical

in a marketing sense and it is a brand’s value that underpins the

brand’s importance in the market place. The value of the brands is

one of the key ingredients in developing an effective marketing

communication program (Schultz & Barnes, 2003).

5.1.1.2 Importance of Branding

Today branding has become so important that we can not find

anything unbranded whether it is a good or service. Marketers are


using branding to help customers in loads of ways. Brand names help

customers to identify their specific product. Brands also tell the

consumers about the product quality. Customers who always buy the

same brand know that they will get the same features, benefits, and

quality each time they buy. Branding also has various advantages

from the sellers’ perspective. The brand name becomes the basis on

which a whole story can be built about a product’s special features.

The seller’s brand name and trademark provide legal protection for

unique product features that otherwise might be copied by

competitors. Branding also helps the seller to segment markets

(Kotler, 2004).

Now in a twenty-first century marketplace a brand is much more than

a name, term, symbol or any other specific feature. Today the brand

has become a part of the relationship between the marketing

organizations. Now the brand represents the relationship between the

buyer and the seller. It is a relationship that only the consumer can

create. So building the brand refers to building the relationship

(Schultz & Barnes, 2003).

5.1.2 ABOUT PROMOTION

Promotion is anything that helps transfer meaning from one person to

another or from a product or service to the consumers (Kotler, 2004).

Basically, promotion refers to communication. And marketing

promotion or communications are the means by which firms attempt

to inform, persuade and remind customers, directly or indirectly,

about the brands they sell. In a sense, marketing communications

represent the voice of the brand and are a means by which the brand

can establish a channel of communication and build relationships with

consumers (Keller, 2004).


Direct Male

Direct Male

In-Store Displays

In-Store Displays

Sales Promotion

Sales Promotion

AdvertisingAdvertising

DistributionDistribution

PricingPricing

Product Design

Product Design

Customer Service

Customer Service

Customer View of

marketing communication

Customer View of

marketing communication

Figure: How consumers see marketing communication

(Source: Don E. Schultz & Beth E. Barnes,

Strategic Brand Communication Campaigns)

There are various promotion or communication elements. Advertising

is one of the central elements of a marketing communication program.

There are different forms of advertising like media advertising, direct

response advertising, place advertising online advertising and point-

of-purchase advertising. Without advertising other elements are trade

promotions, consumer promotions, event marketing and sponsorship,

personal selling, publicity and public relations.

5.1.2.1 Role of Promotion


The major purpose of all marketing promotions is to communicate to

the customers and thus contribute to brand equity. And marketing

promotions can contribute to brand equity in various means of

creating awareness of the brand; linking strong, favorable and unique

associations to the brand in consumers’ memory; eliciting positive

brand judgment or feelings; facilitating a stronger consumer-brand

connection and brand resonance etc (Keller, 2004).

5.1.2.2 Traditional Promotion Mix

The traditional promotion mix consists of the blend of advertising,

personal selling, sales promotion, public relations and direct

marketing tools that the company uses to pursue its advertising and

marketing objectives (Kotler, 2004).

Advertising is paid nonpersonal communication from an identified

sponsor using mass media to persuade and influence an audience

(Wells, Burnett, Moriarty). Personal selling is personal presentation

by the firm’s sales force for the purpose of making sales and building

customer relationships. Sales promotion can be defined as short-term

incentives to encourage the purchase or sale of a product or service.

Public relation refers to building good relations with the company’s

various publics by obtaining favorable publicity, building up a good

corporate image and handling and heading off unfavorable rumors

stories and events. And direct marketing refers to direct

communications with carefully targeted individual consumers to

obtain an immediate response, and cultivate lasting customer

relationship (Kotler & Armstrong, 2004).

Each of these categories involves specific tools. For examples,

advertising includes print, broadcast, outdoor and other forms.


Personal selling includes sales presentations, trade shows and

incentive programs. Sales promotion includes premiums, discounts,

coupons, samples, specialty advertising and demonstration. Direct

marketing includes catalogs, telemarketing, fax, internet and so on.

5.1.2.3 The Concept of Integrated Marketing Communication

(IMC)

These days a shift has been noticed in case of marketing strategies –

the shift from product-centered marketing strategies to customer-

centered marketing strategies. And this situation forced businesses to

coordinate a group of activities that had previously been handled

separately. The idea of coordination suggests that a number of

elements influence the marketing process, including the product, the

distribution channel, the sales force and the marketing

communication program. These elements can also be viewed as

activities, such as, product design and development, branding,

packaging, pricing, distribution, personal selling, advertising, sales

promotion and public relations. Implementing the communication mix

in a coordinated manner is integrated marketing communication

(Kotler & Armstrong, 2004).

Two major factors are changing today’s marketing communication.

First, mass markets have fragmented. So, marketers are shifting

away from mass marketing and developing focused marketing

programs designed to build closer relationship with customers in

narrowly defined micro-markets. Second, vast improvement of

information technology. Today’s information technology helps

marketers to keep closer track of customer needs (Kotler, 2004).

The communication process changes like this:


Mass Communicatio

Targeted Communicatio

One-to-One Dialogue

Advertising Personal Selling

Carefully Blended Mix of Promotional Tools

Sales Promotion

Public Relations

Direct Marketing

Now a day, communication goes beyond some specific promotion

tools. Product’s design, price, shape, color, the stores that sell it – all

together communicate something to consumers about the product. So,

the entire marketing mix should be coordinated for utmost

communication impact (Kotler).

5.1.2.4 Definition of Integrated Marketing Communication

(IMC)

Under this concept, company carefully integrates and coordinates its

many communication channels to deliver a clear, consistent and

compelling message about the organization and its products. IMC

means that all company messages, positioning and images, and

identity are coordinated across marketing communication venues. It

means that a company’s public relation materials say the same thing

as its direct mail campaign, and its advertising has the same look and

feel. The IMC solution calls for recognizing all contact points where

the customer may encounter the company, its products and its brands

(Kotler, 2004).


Consistent, clear and

compelling company

and product messages

Figure: Integrated Marketing Communication

(Kotler & Armstrong, 2004)

5.1.3 PROMOTIONAL TOOLS AND IMPLICATIONS

5.1.3.1 Media Advertising

The media advertising is the channel of communication that carries

the messages from the advertiser to the audience. There are different

tools for media advertising, such as, TV advertising, Radio

advertising, Newspaper advertising, Magazine advertising and Online

(Internet) advertising. We can find out various applications of

different media advertising. Numerous companies in the world use

different types of media advertising to promote their products or

services. Here are some examples;

Properly designed and executed TV ads can affect sales and profits.

TV ad of ‘Aromatic Halal Soap’ is a vivid example of this statement.

Their use of the word Halal in the ad increased sales of their beauty

soap and at the same time it reduced the sale of the most popular

soap brand - ‘LUX’. But afterwards LUX came up with their new add

with the concept of vegetable oil soap. They showed that LUX is

completely made of vegetable oil and thus they came back in their

previous position again. Other examples are the ad of AYURVEDIC


FAIR & LOVELY and ASHIAN CITY MODEL TOWN. For example of

newspaper advertising we can convey about the ads of GRAMEEN

PHONE Internet facility, BANGLALINK Desh, BANGLALINK Lifetime

SIM Period etc.

5.1.3.2 Direct Response Advertising

Under direct response advertising, the options are mail, telephone

and other non-personal contact tools to communicate with or solicit a

response from specific customers and prospects. In Bangladesh the

use of direct response advertising is very exceptional. SANMAR, a

well-known real estate company, exercises direct advertising to

inform the customers about their new construction and its facilities

and advantages.

5.1.3.3 Place Advertising

In case of place advertising, billboards and posters, product

placement, point of purchase can be used to show customers a

broader view of the brand. For example, Unilever exercises billboard

advertising for its popular brands – LUX, FAIR AND LOVELY, SURF

EXCEL etc. HSBC bank uses billboard advertising to educate the

customers about their different loan offers. Renowned lubricant brand

Mobil uses billboards at different refueling stations as point of

purchase advertising. When D-JUICE, a telecommunication company,

arranges any music show they use poster to aware the customers

about the show. Different coaching centers use posters to inform their

services to the customers.

5.1.3.4 Consumer Promotions


For consumer promotion, samples, coupons, premiums, refunds and

rebates, bonus packs, price-offs etc. can be given to encourage the

consumers to repurchase the product of the specific brand. Recently

AKTEL, a telecommunication company, offered Gold Coin for its

customers. ‘15% discount on full payment’ offer by Bashundhara

Group, a real estate company is another example of consumer

promotion. Moreover, Thank You bonus offer by GRAMEEN PHONE,

KEYA laundry soap is free with KEYA 1kg detergent powder, Price-off

offer at every refrigerator purchase by SINGER, 10% discount offer by

OTOBI are the illustrations of consumer promotions.

5.1.3.5 Trade Promotions

In favor of trade promotions, trade deals and buying allowances,

point-of-purchase display allowances, push money, contest and dealer

incentives, training programs, trade shows, cooperative advertising

can be given to the dealers, retailers and wholesalers to motivate

them to sell the specific brand. For example of trade promotions, we

can say about TOTAL Lubricants. They offer buying allowances and

incentives to its dealers. Without TOTAL Lubricants, other lubricant

brand also offer different purchase allowances and incentives to their

dealers.

5.1.3.6 Event Marketing and Sponsorship

To aware and educate the customers a brand can sponsor in various

events related to the product category and its image. For example,

different sports event, arts, entertainment, fair and festivals, cause-

related events. For example, lately BANGLALINK organized a 2 days

music festival under the banner of ‘Banglalink Desh Music Festival’ at

Fantasy Kingdom to help the flood victims.

5.1.3.7 Public Relation and Publicity


Public relation and publicity relate to a variety of programs and are

designed to promote or protect a company’s image or its individual

products (Keller). Publicity refers to non-personal communications

such as press releases, media interviews, press conferences, feature

articles, newsletters, photographs, films and tapes. Public relations

may also involve annual reports, fund-raising and membership drives,

lobbying, special event management, and public affairs. For example

of public relation and publicity, BANGLALINK arranged different

musical programs for acid victims and ‘say no to drugs’ campaigns.

5.1.4 ESTABLISHING BRAND AWARENESS THROUGH

PROMOTION

The target market may be totally unaware of the brand. Then the first

task is to build awareness. Brand awareness consists of brand

recognition and brand recall performance. Brand recognition relates

to consumers’ ability to confirm prior exposure to the brand when

given the brand as a cue. Brand recall relates to consumers’ ability to

retrieve the brand from memory when given the product category or a

purchase or a usage situation as a cue.

Brand awareness is created by increasing the familiarity of the brand

through repeated exposure. That is, the more a consumer experiences

the brand by seeing it, hearing it or thinking about it, the more likely

it is that the brand will become strongly registered in memory. Thus,

anything that causes consumers to experience a brand name, symbol,

logo, character, packaging, or slogan can potentially increase

familiarity and awareness of that brand element.

A wide range of promotional tools can be used to create brand

awareness, such as, advertising, sales promotion, sponsorship and


event marketing, publicity and public relation. Moreover, it is

important to visually and verbally highlight the brand name with a full

complement of brand elements in every promotional tool. Particularly,

to build brand awareness it is often desirable to develop a slogan or

jingle that creatively pairs the brand and the appropriate category.

Many marketers have attempted to create brand awareness through

shock advertising (Shock advertising is a kind of advertising that used

to create a sudden and shocking physical and mental impression). But

the problem with such approaches is that they invariably fail to create

strong category links because the product is just not prominent

enough in the ad, thus inhibiting brand recall. They also generate a

fair amount of ill will in the process. Often coming across as desperate

measures, they rarely provide a foundation for long-term brand equity

(Keller).

5.1.5 ROLE OF PROMOTION IN ESTABLISHING BRAND

KNOWLEDGE

The target market may know only its name or only a few things about

the product or service. Then by using different promotional tool a

company can create brand knowledge. Basically, brand knowledge is

making the consumers educated about the product.

Communication

For example, when Nissan introduced its Infiniti automobile line, it

began with an extensive teaser advertising campaign to create name

familiarity (Brand awareness). Initial ads for the Infiniti created

curiosity and awareness by showing the car’s name but not the car.


Current Brand

Knowledge

Desired Brand

Knowledge

Later ads created knowledge by informing potential buyers of the

car’s high quality and many innovative features (Kotler, Armstrong).

To create the desired brand knowledge, companies can use a wide

range of its promotional tools. By media advertising they can educate

the customers how they will be benefited from the product or service.

Here they can also use public relation and publicity, such as media

interviews, press conference, articles, special event management etc.

5.1.6 PROMOTION FOR BRAND LIKING, PREFERENCE AND

CONVICTION

After brand awareness and brand knowledge the question comes

about brand likings, brand preference and brand conviction. How the

consumers feel about the product? What about their preference and

belief about it? Here, liking refers to the feeling favorable about the

product; preference includes preferring the product to other brands;

and conviction indicates about believing that this product is the best

one for them.

A combination of the promotion mix tools can be used to create

positive feelings and conviction. By different media advertising,

companies can show the customers about product’s advantages over

competing brands. They can use press releases and public relations

activities to notify the consumers about the product’s unique features.

Moreover, point-of-purchase advertising can be used to remind the

customers about the product.


5.1.7 CREATING POSITIVE BRAND IMAGE THROUGH PROMOTION

Today a brand is much more than just a name. It is an image in

customers’ mind that reflects what they think and feel about a

product. It is a psychological image that reflects the way customers

perceive the brand.

Different promotional tools can be used to create a positive brand

image. One way is direct experience - by communicating information

about the brand to the customers directly. Consumer reports or other

media vehicles can be used to carry out these kinds of messages.

Another way is word-of-mouth or noncommercial sources of

information. For example, different consumer union's reports or

popular press releases etc.

To create positive image it is important for any company how they use

different promotional tools, their social activities or how they want to

position themselves in the marketplace. Packaging is another

important factor in this case. Finally, it is important to associate

unique, meaningful points of difference to the brand to provide a

competitive advantage and ‘reason why’ consumers should buy it.

5.1.8 PROMOTION FOR BRAND LOYALTY

Brand loyalty has been described as a behavioral response and as a

function of psychological processes (Jacoby and Kyner, 1973). Thus

brand loyalty is a function of both attitudes and behavior. In contrast

to brand attitudes and habit, which are brand specific, the concept of

brand loyalty represents a general concept which describes a

consumer’s overall buying behavior patterns within a product class. It

is a descriptive variable that refers to individual differences in

consumers’ general shopping behavior and buying styles within a


particular product class. Brand loyalty is defined here as a consumer’s

preference to buy a single brand name in a product class; it is a result

of the perceived quality of the brand and not its price.

Figure: Model of attitudes, habit, loyalty and brand equity

outcomes

(Source: Journal of Product & Brand Management Vol. 4 No. 1 1995)

A company can make its customers loyal by providing all the

marketing mix as a whole. Discount for members, reward programs,

sending cards on different occasions, mail them etc. can be done to

make the customers loyal. But the best technique to make consumers

loyal for the brand is relationship marketing. For example, frequent

flier program reward by American Airlines, Membership Reward

program by American Express, Discounts for members by Safeway

Savings Club, Safeway etc.


Brand

Attitude

Habit

Brand

Loyalty

Brand

Equity

Outcomes

Objective 2

(To identify the Role of Promotion in Branding

in Lubricant Industry)


5.2.0 OVERVIEW

A lubricant is a substance, usually a liquid, introduced between two

moving surfaces to reduce the friction and wear between them. A

lubricant provides a protective film which allows for two touching

surfaces to be separated, thus lessening the friction between them.

Typically lubricants contain 90% base oil most often petroleum

fractions, called mineral oils and less than 10% additives. Vegetable

oils or synthetic liquids such as hydrogenated polyolefin, esters,

silicone, fluorocarbons and many others are sometimes used as base

oils. Additives deliver reduced friction and wear, increased viscosity,

improved viscosity index, resistance to corrosion and oxidation, aging

or contamination, etc. Non-liquid lubricants include grease, powders

(dry graphite, PTFE, Molybdenum disulfide, etc.), teflon tape used in

plumbing, air cushion and others. Another approach to reducing

friction and wear is to use bearings such as ball bearings, roller

bearings or air bearings or to use sound, in the case of acoustic

lubrication.

Lubricants such as 2-cycle oil are also added to some fuels. Sulfur

impurities in fuels also provide some lubrication properties, which

have to be taken in account when switching to a low-sulfur diesel;


biodiesel is a popular diesel fuel additive providing additional

lubricity.

In addition to automotive and industrial applications, lubricants are

used for many other purposes, including K-Y Jelly, often used as a

personal lubricant, bio-medical applications (lubricants for artificial

joints) and others.

5.2.1 USAGE

Lubricants are an essential part of modern machinery. Everything

from computer hard disk drives to the Airbus A380 requires

lubrication of its moving parts. One of the single largest applications

for lubricants, in the form of motor oil, is to protect the internal

combustion engines in motor vehicles.

5.2.2 APPLICATION BY FLUID TYPES

Automotive

o Engine Oils

Petrol (Gasoline) Engine Oils

Diesel Engine Oils

o Automotive Transmission Fluids

o Gearbox Fluids

o Brake Fluids

o Hydraulic Fluids

Tractor (one lubricant for all systems)

o Universal Tractor Transmission Oil - UTTO

o Super Tractor Oil Universal - STOU - includes Engine

Other Motors

o 2-stroke Engine Oils

Industrial


o Hydraulic Oils

o Air Compressor Oils

o Gas Compressor Oils

o Gear Oils

o Bearing and Circulating System Oils

o Refrigerator Compressor Oils

o Steam and Gas Turbine Oils

Aviation

o Gas Turbine Engine Oils

o Piston Engine Oils

Marine

o Crosshead Cylinder Oils

o Crosshead Crankcase Oils

o Trunk Piston Engine Oils

o Stern Tube Lubricants

5.2.3 ABOUT LUBRICANT INDUSTRY

5.2.3.1 Global Lubricant Industry

The lubricants industry is well on its way to becoming a global

business. Major international firms like Exxon Mobil, Shell, BP, and

Chevron Texaco are getting even larger and account for an even more

significant market share of the global lubricants business, which is

estimated at 37.1 million tons in 2003 (Competitive Intelligence for

Global Lubricant Industry, 2003-2013 by Kline & Company, Kline

Group). Most of these major suppliers are now also managing their

lubricants business on a global basis.

Economies of scale are an advantage that these leading players seek

in this very competitive market. This has led to erosion among the

midsize players and increasing polarization—that is, a move toward


large and very large manufacturers on the one hand and small niche

suppliers on the other. Competition is therefore no longer limited to

local, regional, or even national markets but is increasingly becoming

global in nature.

Altogether, more than half of the world lubricants market has been

part of such a concentration. Industry consolidation continues to have

a major impact on company market share and ranking, on the

manufacturing and business economics, on base oil supply positions,

and on the competitive environment. Therefore, it has become even

more important to monitor the market shares, strategies, positioning,

advertising and promotion budgets, supply chain synergies, and

outlook of these players on a global basis.

5.2.3.2 Bangladesh Lubricant Industry

There are many well-known global companies are now competing in

Bangladesh market. Companies, such as, Mobil (Exxon Mobil), British

Petroleum (BP), TOTAL Lubricants, Caltex (Chevron Texaco), Castrol,

Fuchs, Sino, Sharlu etc. are competing very hard to get their share in

the market. Most of the brands have to import finished goods from

outside as they do not have any blending plant here. Amongst these

three companies, only Mobil has blending plant here. So they are

getting the cost benefit as the tax of finished good import is 25%

whereas the tax of raw material import is only 12% (Source: Trade

Service International, Sole Distributor of TOTAL Lubricants in


Bangladesh). And thus Mobil is the price leader in Bangladesh

Lubricant Market.

There are three subsidiaries of Bangladesh Petroleum Corporation in

Bangladesh. They are Padma Oil Company Limited, Meghna Oil

Company Limited and Jomuna Oil Comany Limited. Mobil, BP and

TOTAL are in joint-collaboration with Jomuna, Meghna and Padma Oil

Company respectively.

Nowadays Mobil is exporting finished goods from Bangladesh.

Conversely, BP and TOTAL Lubricants are imported from outside.

TOTAL is imported by Trade Service International (TSI). Caltex is

imported by Navana Group and Castrol is imported by Rahim Afroz

and they sell it only at their own Rahim Afroz outlets.

There are two segments in the market based on price and quality.

Mobil, BP, TOTAL, Caltex, Castrol and Shell are in the high price, high

quality segment. On the other hand, Fuchs, Sino, Sharlu etc. are in

the low price, low quality segment. From a street Market (Retailers

and Wholesalers) survey, it is found that Mobil is the best-selling

brand in Bangladesh. Regarding quality, customers associate Mobil,

BP and TOTAL are of premium quality as they are the eminent global

brands. Besides they are with the Government companies.

5.2.4 DIFFERENT BRANDS/COMPANIES IN BANGLADESH

There are many world-famous brands are operating their business in

Bangladesh. The profile of different brands is as follows:


Name Distributor

Mobil (Exxon Mobil) Own Plant and Operation

British Petroleum (BP) Meghna Petroleum Limited

TOTAL Lubricants Trade Service International (TSI)

Caltex (Chevron

Texaco)Navana Group

Castrol Rahim Afroz

Fuchs Own Plant and Operation

Sino Own Plan and Operation

Sharlu Hossain Spring

5.2.5 PROMOTIONAL STRATEGIES OF DIFFERENT GLOBAL

LUBRICANT BRANDS

The global lubricant market is generally competitive with numerous

manufacturers and marketers. And in this global market, promotion

plays a very significant role in branding. The lubricant marketers

generally pursue one or more of the following strategies when

pursuing business.

5.2.5.1 Specification

The lubricant is said to meet a certain specification. In the consumer

market, this is often supported by a logo, symbol or words that inform

the consumer that the lubricant marketer has obtained independent

verification of conformance to the specification. Examples of these

include the API’s donut logo or the NSF tick mark. In the industrial


market place the specification may take the form of a legal contract to

supply a conforming fluid or purchasers may choose to buy on the

basis of a manufacturers own published specification.

5.2.5.2 Original Equipment Manufacturer (OEM) Approval

Specifications often denote a minimum acceptable performance levels.

Thus many equipment manufacturers add on their own particular

requirements or tighten the tolerance on a general specification to

meet their particular needs. This gives the lubricant marketer an

avenue to differentiate their product by designing it to meet an OEM

specification. Often, the OEM carries out extensive testing and

maintains an active list of approved products. This is a powerful

marketing tool in the lubricant marketplace.

5.2.5.3 Performance

The lubricant marketer claims benefits for the customer based on the

superior performance of the lubricant. Such marketing is supported

by glamorous advertising, sponsorships of typically sporting events

and endorsements. Unfortunately broad performance claims are

common in the consumer marketplace, which are difficult or

impossible for a typical consumer to verify. In the B2B market place

the marketer is normally expected to show data that supports the

claims, hence reducing the use of broad claims.

5.2.5.4 Longevity

The marketer claims that their lubricant maintains its performance

over a longer period of time. For example in the consumer market, a

typical motor oil change interval is around the 3000-6000 miles

(Wikipedia). The lubricant marketer may offer a lubricant that lasts


for 12000 miles or more to convince a user to pay a premium.

Typically, the consumer would need to balance the longer life and any

warranties offered by the lubricant manufacturer with the loss of

equipment manufacturer warranties by not following its schedule. In

the industrial market place the longevity is generally measured in

time units and the lubricant marketer can suffer large financial

penalties if their claims are not substantiated.

5.2.5.5 Efficiency

The lubricant marketer claims improved equipment efficiency when

compared to rival products or technologies. Typically the efficiency is

proven by showing a reduction in energy costs to operate the system.

5.2.5.6 Operational Tolerance

The lubricant is claimed to cope with specific operational environment

needs. Some common environments include dry, wet, cold, hot, fire

risk, high load, high or low speed, chemical compatibility,

atmospheric compatibility, pressure or vacuum and various

combinations.

5.2.5.7 Economy

The marketer offers a lubricant at a lower cost than rivals.

5.2.5.8 Environment Friendly

The lubricant is said to be environmentally friendly. Typically this is

supported by qualifying statements or conformance to generally

accepted approvals. Several organizations, typically government

sponsored, exist globally to qualify and approve such lubricants by

evaluating their potential for environmental harm. Typically, the


lubricant manufacturer is allowed to indicate such approval by

showing some special mark. Examples include the German “Blue

Angel”, European “Daisy” Eco label, Global Eco-Label “GEN mark”,

Nordic, “White Swan”, Japanese “Earth friendly mark”; USA “Green

Seal”, Canadian “Environmental Choice”, Chinese “Huan”, Singapore

“Green Label” and the French “NF Environment mark”.

5.2.5.9 Composition

The marketer claims novel composition of the lubricant which

improves some tangible performance over its rivals. Typically the

technology is protected via formal patents or other intellectual

property protection mechanism to prevent rivals from copying.

5.2.5.10 Quality

The marketer claims broad superior quality of its lubricant with no

factual evidence. The quality is “proven” by references to famous

brand, sporting figure, racing team, some professional endorsement

or some similar subjective claim.

5.2.6 ROLE OF PROMOTION IN BRANDING IN LUBRICANT

INDUSTRY

There are numerous competitors are competing hard in the lubricant

industry. And different promotional methods can be used to create

brand awareness, desired brand knowledge, positive brand image,

brand loyalty, relationship marketing and so on.

5.2.6.1 Promotion for Brand Awareness in Lubricant Industry


A lubricant marketer can use a wide range of promotional tools to

create brand awareness. To create brand awareness he can use

repeated advertising to visually and verbally highlight the brand

name. Moreover, he can sponsor in different sports events to

emphasize the brand. In addition, the company can go for road shows

to show the brand to the customers. Another important promotional

tool that can be used for brand awareness is public relation – product

publicity, news, special events etc. It can be done at a much lower

cost than advertising.

5.2.6.2 Promotion for Brand Knowledge in Lubricant Industry

To create the desired brand knowledge in the lubricant industry,

lubricant companies can exercise media advertising (TV, Newspaper,

FM radio) to educate the customers about different features and

advantages of the brand. In the advertisement, they can show how

the customers will be benefited from using a specific brand.

Furthermore, they can use various public relation and publicity, such

as, seminars about environmental issues of lubricant, press releases

to educate the customers about the brand quality and performance,

special event management etc.

5.2.6.3 Promotion for Positive Brand Image in Lubricant

Industry

In the lubricant industry a positive brand image can be created by

associating the brand with a noble event according to the category.

Direct communication with the customers about the brand is another

way to create appositive image. This can be done by consumer reports

or other media vehicles. Another key approach is noncommercial


information sources or word-of-mouth. Conventional press releases or

a certain well-liked consumer group’s reports can be used here to

create a unique and favorable brand image.

5.2.6.4 Promotion for Brand Loyalty in Lubricant Industry

To make its customers loyal a lubricant company can prepare a

consumer database to gather information about their needs and

demands. Moreover, brand loyalty can be created by offering samples

or discounts to customers and dealers; price offs on more repeat

purchases; greet the customers on various occasions etc. can be done.

Objective 3(To identify the Promotional Activities


of Different Companies

in Bangladesh Lubricant Industry)

In Bangladesh, different companies are carrying out different

promotional activities for branding according to their resources and

position in the market.

5.3.1 MOBIL

Mobil associated their brand name in the mind of the customers in

such a way that people know Mobil as a product! When consumers go

to retail shop they do not ask for lubricant or engine oil, they ask for

Mobil. Most of the people in Bangladesh do not even know the word

lubricant. All they know about engine oil is - ‘Mobil’. Mobil took all the

advantages of being a first-mover.

Certain issues of Mobil:

Customers are already aware of Mobil

It created a strong relationship with its stakeholders

It has many outlets

It built a strong positive image in the marketplace


It is associated with ‘Jomuna Oil Company Limited’, a

subsidiary of Bangladesh Petroleum Corporation.

It positioned as a provider of high quality products in the

market.

When Mobil first came to the market there was no competitor in their

segment. Then it started showing its advertisements in TV. It was the

only ad of lube oil that had been on aired then. Thus it created the

brand awareness among the customers. It built a strong positive

relationship with its stakeholders by offering them a good commission

margin. Now they are focusing on upholding the existing good

relationship with it stakeholders. In addition, they are using point-of-

purchase advertising at different refueling stations to remind the

customers about Mobil.

5.3.2 BRITISH PETROLEUM (BP)

British Petroleum started its operation in Bangladesh at 1984. But

afterwards it collapsed their operation here. However, BP started its

operation in Bangladesh all over again.

Certain issues of BP:

It built a strong reputation in the market

It positioned itself as a high-quality, high-price participant in the

market

It is associated with ‘Meghna Oil Company Limited’, another

subsidiary of Bangladesh Petroleum Corporation

Now they are using their previously earned goodwill as their key

strength in the market. Currently they are offering a free sunglass

with each 5 liter Super V pack.

5.3.3 TOTAL LUBRICANTS


Trade Service International (TSI) first brought TOTAL Lubricants in

Bangladesh at 2003. Major strength of TOTAL is their joint-

collaboration with another subsidiary of Bangladesh Petroleum

Corporation ‘Padma Oil Company Limited’. Now they are enjoying 428

distribution outlets of Padma.

Certain issues of TOTAL:

Brand awareness of TOTAL is very poor

It is not doing any promotional activities to increase the

awareness

Only focusing on trade promotions whether they should focus on

consumer promotion

It is associated with ‘Padma Oil Company Limited’, a subsidiary

of Bangladesh Petroleum Corporation

From a street market (retailers and wholesalers) survey in Chittagong

(Measuring Sales and Competitor Analysis of TOTAL Lubricants in the

Chittagong Street Market), it is found that brand awareness of TOTAL

Lubricants is very much low. Most of the consumers do not even know

about TOTAL Lubricants. But they are not going for any promotional

activities to crate brand awareness or create a positive brand image.

They are only focusing on trade promotions and within trade

promotions they only follow trade deals and dealer incentives.

5.3.4 CALTEX

Caltex is brought and distributed by Navana Group in Bangladesh.

Like TOTAL, They are not using any kind of consumer promotions or

advertising. They are also focusing on trade promotions (dealer

incentives) and they are selling the CNG engine oil in their own CNG

service center.


5.3.5 CASTROL

Rahim Afroz is the sole distributor of Castrol in Bangladesh. They sell

different products of Castrol at their own outlets. But there are some

big retailers, who control the street market, keep some products of

Castrol. Castrol did not go for any kind of promotional activities.

Other lower segment companies, such as, Fuchs, Sino or Sharlu, are

not using any types of advertising or consumer promotions. They are

only focusing on trade promotions. In this industry most of the

companies or distributors are not focusing on advertising or consumer

promotions. They only understand one type of promotion that is trade

promotion – ‘dealer incentives’.


Objective 4(To develop a Communication Program

that ‘Total Lubricant’ will Offer)

5.4.0 OVERVIEW

TOTAL Lubricants is a well-known lube oil company in global

lubricant market. But in Bangladesh, consumers are not aware of the


product. Now what are the reasons behind that? Why customers do

not know the name of TOTAL Lubricants? From the very beginning

Mobil is the market leader in this sector in Bangladesh. As a first-

mover they created brand awareness and a positive brand image.

People associate Mobil as the product not as the brand. At this

moment, what TOTAL should do in order to sustain in the market? The

simple response is TOTAL has to increase its brand awareness by

exercising huge promotional activities. They have to inform the

customers about the existence of TOTAL Lubricants in the

marketplace. They have to

Currently, TOTAL Lubricants is facing problem with brand awareness

in the marketplace. Accordingly, it has to arrange a communication

program to aware its target customers. An effective communication

program includes: Identifying the target audience; Determining the

communication objectives; Designing a message; Choosing the media

through which the message will be send; Selecting the message

source and Collecting feedback.

5.4.1 COMMUNICATION PROGRAM

5.4.1.1 Target Market

In preparing communication programs, at first TOTAL has to identify

its target market and its characteristics. As I have spoken before, in

Bangladesh, there are two market segments based on price and

quality. Mobil, BP, TOTAL, Caltex, and Castrol are in the high price,

high quality segment and Sino, Fuchs, Sharlu etc. are in the low price,

low quality segment. But TOTAL wants to attract its customers by

providing high quality product at a lower price than its competitors.

The target market profile of TOTAL Lubricants is given below:


5.4.1.2 Target market Profile

Demographic

Age 18+

Gender Male, Female

Family Size 3-4, 4-5

Income Tk. 50000+ (Monthly)

Occupation Private Car Owners, Covered Van Owners, District

moving Bus and Truck Owners

Education Secondary School and Upper

Psychographic

Social Class Middle Class, Upper Middle Class, Lower Upper

Class, Upper Class, Upper Uppers Class

Lifestyle Achivers, Strivers

Personality Habitual, Extroverted, Ambitious

Geographic

Country

Region

Urban areas of all 6 districts of Bangladesh with

developing suburban areas.

Density Urban, Suburban

5.4.1.3 Communication Objectives

Currently most of the target customers are not aware of TOTAL

Lubricants. Again many of them associate the name TOTAL with

TOTAL Gaz not with TOTAL Lubricants. So, TOTAL must first build

customer awareness and knowledge. The objectives can be as follows:

o To aware the customers about TOTAL Lubricants

o To build brand knowledge among the customers


5.4.1.4 Designing a Message

The message should be develop in such a way that it should get

Attention (A), hold Interest (I), arouse Desire (D), and obtain Action

(A) – the AIDA model. In developing the message, TOTAL should

carefully design what to say (message content) and how to say it

(message structure and format).

5.4.1.4.1 Message Content

TOTAL has to decipher an idea that will create the desired response

for it. It has to develop messages that will show the quality or value or

performance of TOTAL products. In its messages TOTAL should relate

its products with customers’ self-interest. For example, TOTAL can

develop a message focusing on ‘Higher Quality at a Lower Price’ or

‘Higher Performance with Quality’. Then again TOTAL can contact to

an ad agency to work out on an idea.

5.4.1.4.2 Message Structure

The message structure should be developed in such an approach that

it will represent TOTAL’s strength clearly. And TOTAL should

represent its strength at the first point. By characterizing the strong

points at the first will aid TOTAL to get customers’ attention. For

example, “TOTAL Lubricants, Higher Performance with Quality”.

5.4.1.4.3 Message Format

TOTAL has to cautiously intend a message format. In case of print and

display media, it should design the headline, illustration, copy, color

etc carefully. It should use the ‘red’ color of TOTAL in everything. It


can use different eye-catching pictures of its sponsored sports events.

It can also highlight its brand name by using car pictures holding its

brand name from different racing events. Besides TOTAL has to be

careful in message size, message position, contrast etc. For TV media,

TOTAL should carefully plan the presenter’s body language, facial

expression, gesture, posture, dress, hair-style etc. If the message

delivering media is radio then TOTAL has to choose the words, voices,

sounds watchfully.

5.4.1.5 Choosing Media

Since TOTAL has to increase its brand awareness it should go for

personal and non-personal channel of communications mutually. In

case of personal communicational channel, to create brand awareness

TOTAL should send its salespeople to contact the target customers in

the marketplace. There they can offer discounts to the buyers of

TOTAL products.

In case of non-personal communication, they should go for numerous

Medias to create brand awareness and brand knowledge among the

target customers. For instance, under print media they can go for

frequent newspaper and magazine advertising. In this case, they

should choose the newspaper and the magazine carefully. Nowadays

the bestselling newspapers are Prothom Alo (Bengali newspaper) and

The Daily Star (English newspaper). To get most coverage TOTAL can

primarily choose ‘Prothom Alo’ and ‘The Daily Star’ to carry out its

messages.

TOTAL can also choose monthly published car magazines and related

publications for magazine advertising. For broadcast media, TOTAL

can go for continuous TV advertising and Radio (FM) advertising. In

case of TV advertising it can choose ‘N TV’, ‘Channel i', ‘Channel 1’


and ‘BCB News’ to show its advertising. On the other hand, for radio

(FM) advertising TOTAL can pick ‘Radio Furti’ and ‘Radio Today’as

these two channels are currently active. To create awareness, display

advertising is another important aspect. TOTAL can issue different

billboards at different central places to highlight their brand name

from a broader view. In Chittagong, they can choose GEC circle,

Agrabad Badamtoli Circle Dewanhaat Circle etc to place their

billboards. Then again TOTAL can organize various events to

communicate its messages to the target audiences. For example, Road

shows, sports events, public tours, opening of a new outlet etc.

5.4.1.6 Media Effectiveness

The major problem of ‘TOTAL Lubricants’ is that the customers are

not aware of the brand name of TOTAL in the marketplace. Hence,

TOTAL should carefully choose the medias that will deliver its

messages to the customers. They have to figure out the effective

media to carry out the messages. To create awareness mass media

should be practiced at first. They should go for TV advertising,

Newspaper advertising and Magazine advertising to deliver messages.

The use of mass media will help TOTAL to get most exposure of its

brand name.

There are certain advantages of TV advertising - Mass coverage; High

reach; Impact of sight, sound, and motion; High prestige; Low cost

per exposure, Attention getting; Favorable image. Advantages of

newspaper advertising are High coverage; Low cost; Short lead time

for placing ads; Ads can be placed in interest section; Reader controls

exposure; Can be used for coupons. The advantages of magazine

advertising are Segmentation potential; Quality reproduction; High


information content; Longevity; Multiple readers. (Source: George E.

Belch and Michael A. Belch, Introduction to Advertising and

Promotion, 3rd Edition, 1995).

5.4.1.7 Selecting the Message Source

In either personal or non-personal communication, the message’s

impact on the target audience is also affected by how the audience

views the communicator. Message delivered by high credible sources

are more persuasive (Kotler, Armstrong 2004). In case of TOTAL

Lubricants, it should hire product related celebrity endorsers. For

example, it can hire Bangladesh cricket team members or TV

actor/actresses to promote its products. Yet again, it can sign up with

international celebrities to get attention of cable TV viewers.

5.4.2 PROMOTION MIX

TOTAL must divide the promotion budget among the promotional

tools they will exercise. According to the integrated marketing

communication, the whole promotional budget must blend the

promotion tools into a coordinated promotion mix. Well, it differs from

industry to industry and company to company in the same industry. In

case of TOTAL Lubricants, to aware the customers they should use

the promotional blend of advertising, sales promotion, public relation,

and direct marketing.

5.4.2.1 Advertising

Advertising can help TOTAL to reach its geographically scattered

consumers at a low cost. By repeated advertising, considerably,


TOTAL can aware its target audience. By mass advertising media,

such as, TV, radio, newspaper or magazine they can reach huge

audiences. For example, they can on air their foreign ad in different

selected Bengali channels to get primary attention from the

customers. Advertising allows a company to dramatize its products

through the artful use of visuals, print, sound, and color (Kotler and

Armstrong, 2004). By advertising TOTAL can build up a long-term

image for its products. Beyond its reach, large-scale advertising says

something about the seller’s size, popularity and success. Because of

advertising’s public nature, consumers tend to view advertised

products as more legitimate (Kotler and Armstrong, 2004).

5.4.2.2 Sales Promotion

TOTAL can use sales promotion, such as, coupons, discounts and

others to attract customer attention. They can offer strong incentives

to purchase TOTAL products. For example, they can offer scratch card

gifts or they can offer customers on buying discounts etc. According

to Philip Kotler, whereas advertising says, ‘Buy our product’, sales

promotion says, ‘Buy it now’.

5.4.2.3 Public Relation

Public relation can be one of the trump-card promotional tools for

TOTAL Lubricants. For example, TOTAL can arrange different sports

events, road shows to get customer attention. Public relation is one of

the most credible promotional tools. People tend to believe different

events or features or stories. They think these event organizing are

more real than advertising. At this moment, a well-developed public


relation campaign with other promotion mix elements can be very

effective and economical for TOTAL Lubricants in the marketplace.

5.4.2.4 Direct Marketing

TOTAL can exercise direct marketing to get attention of industrial

buyers. For example, there are many industries in Bangladesh and

they need huge lube oil to keep active their machineries. TOTAL can

organize a seminar and invite various industry people to show the

benefits of using TOTAL for their machineries. Again TOTAL can send

mail to these industries or send salespeople to describe the features

of TOTAL lube oil.

5.4.3 PROMOTION MIX STRATEGIES

Currently TOTAL is following the push strategy to sell its products.

They are pushing through some big retailers. But to aware the

customers they should follow the pull strategy rather than push

strategy in order to build up consumer demand that will pull its

products through the distribution channels. On the other hand, with

pull strategy they should continue its push strategy for the industrial

sector.

5.4.4 COLLECTING FEEDBACK

After delivering the message, TOTAL must conduct a research to

figure out its effect on the target market. They should arrange a

primary survey to collect information like whether they remember the

message, how many times they saw it, what points they recall, how

they felt about the message, and their past and present attitude

toward the product and company. TOTAL should conduct another

survey to measure behavior resulting from the message. For example,


how many people bought a product, talk to others about it or visited

the store.

5.4.5 PROMOTION BUDGET

TOTAL should fix its promotion budget on the basis of ‘Task-Objective

Method’. Under this method, at first, TOTAL has to define the

promotional objectives and then they have to determine the task that

must be performed to achieve the objectives. The tasks involve

designing message, media selection etc. And the costs of performing

the tasks will be the proposed promotion budget.

A Projected Budget (for 1 year):

Target

customers

we can

reach

TV Newspaper MagazineDirect

MarketingOut Door

80%-100% 70%-80% 30%-40% 20% 40%-45%

How often

All 7 days a

week in NTV,

Channel (i),

Channel 1

and CSB

News.

7 days in

a week

Once in a

month

In a regular

basisContinuous

Entire

Media cost

(In Tk.)

for one year

50000000* 10000000* 5000000* 5000000* 10000000*

(*Approximately taken)


Here the entire cost is Tk 80000000. so the budget is Tk. 80000000.

CONCLUSION

Branding is an effective marketing strategy tool that has been used

with frequent success in the past. Today, branding is experiencing a

new popularity resulting from new, innovative applications. Although

there have been instances where branding has been less than

successful, marketers are beginning to find the appropriate

applications in a given setting. Issues and problems concerning

branding strategy today include the selection of a brand name. This

fundamental issue will impact on the success of a branding strategy.

Once a name is selected, marketers have to choose the advertising

strategy to support and communicate the name. Finally, keeping the

brand in a strong position is a critical concern. New areas of branding

include corporate, industrial, and service branding. These

nontraditional branding environments are becoming the future for

marketers using branding strategy. To add to the new branding areas,

there are new branding techniques. These techniques include brand

extensions and ingredient branding. New strategies, techniques, and

arenas for branding have to be managed. The organization must

support and identify with the strategy. The goals, objectives, and

mission of any organization should be in line with the branding

strategy employed.


References

Books

o Kotler and Armstrong, Principles of Marketing, Ninth Edition,

2003-2004, (Pages: 252-268; 510-534)

o Kevin Lane Keller, Strategic Brand Management, Second

Edition, 2004, (Pages: 2-16; 64-98; 175-190; 283-336)

o Philip Kotler, Marketing management, Eleventh edition, 2003-

2004

o William G. Zikmund, Business Research Methods, 6th edition

o Collis, Jills & Roger Hussey, Business Research, 2nd edition,

2003.

o Harper W. Boyd, Jr., Ralph Westfall, Stanley F. Stasch,

Marketing Research Text and Cases, Seventh Edition

o Kenneth E. Clow and Donald Baack, Integrated Advertising,

Promotion and Marketing Communication, Price Edition

o Don E. Schultz and Beth E. Bernes, Strategic Brand

Communication Campaigns

o Jim Blythe, Marketing Communication

o William Wells, John Burnett and Sandra Moriarty, Advertising -

Principles and Practice, Fifth Edition


Internet

www.emeraldinsight.com

www.brandingasia.com

www.marketingresearchworld.net

www.articleplanet.net

www.asiamarketresearch.com

www.wikipedia.com

Others

o BP China: Developing Automotive Lubricants Business by Chan

Jeoffre Jerome Jr. Tiongson, Goh Yong Leng, Annie, Kho Julius

Ekoputra, Kuwabara Katsue; Nanyang Business School, China

o Measuring Sales and Competitor Analysis of Total Lubricants in

the Chittagong Street Market by Antar Jyoti Shome, S. M.

Bakhtiar and Kazi Ainul Huda; Independent University,

Bangladesh

o Relationship Marketing, Understanding and Implementing the

Concept by Mahmud Hassan and M. Tahlil Azim


http://www.wikipedia.com/

http://www.asiamarketresearch.com/

http://www.articleplanet.net/

http://www.marketingresearchworld.net/

http://www.brandingasia.com/

http://www.emeraldinsight.com/

internship report by arthor

Documents

role of promotion

internship report

report analyses

promotion marketers

primary objective of

study analyses

imperative role

total lubricants1