Oil – Retail

Market dynamics based only on price

Competition on the oil consumer market among the different companies is now mainly focused on the fuel sale price. It is the result of a greater consumer attention to the expense, matured during the many years of economic crisis that, although in different ways, has affected all Western countries.

Previously, the items in the competitive challenge were:

• the fuel’ and lubricants ’quality;
• the service level offered by the manager of the station;
• the station welcome in terms of functionality of spaces and technological images;
• and, finally the presence density on the territory were part of the equation.

The competition on the fuel: a strategic challenge for the Brand Identity.

A clearly visible presence on the territory increases the likelihood of distribution and reinforces the company’s Brand Identity. On the other hand, in a context of price competitiveness, the multiple presence of stations reflected into a criticality of return on investment.

After an initial positive impact, the value of sales promotion and the investments for customer loyalty collide over time against a complex reality marked by a high level of competition that is always and in any case focused on the price.

Duel: the turning point.

Duel offers to large oil companies the opportunity to integrate, in the own apps, a customized traffic information service based on the user’s position and destination. The information is made available through voice messages and in all safety for driving.

In the crystallized context of price competition, a breaking element is introduced with an exclusive service. The application operates in a proactive way and provides useful information to the driver only for the optimization of the travel.

The application, which is typically always active, offers the opportunity to oil companies not only to send messages for sales promotion offered by the station along the route, but also to combine the app with special loyalty campaigns.