Where is National Petroleum’s marketing focus?

The thought of a cheaper fuel in the petroleum retail sector was an illusive dream which time and technology has almost put to rest. If we should reflect upon the touting of CNG as the cheaper fuel of tomorrow we should realise the capital injection via high cost compression compressors and dispensing pumps did not realise the return on capital investment. This could have been easily averted if appropriate marketing research would have revealed that the shift from carburetor fuel system to gasoline injection system would have made Compressed Natural Gas a non-optional fuel.

The ad-hoc availability of unleaded fuel at service station outlets in Trinidad and Tobago is way behind the needs of the consumer as it relates to convenience and demand. Added to the above, the quality of unleaded fuel available to motorists in Trinidad and Tobago is of a questionable standard. This observation is based upon the consumption of fuel additives sold through the service station and automotive retail sector, specifically as it relates to vehicles equipped with gasoline injection systems. Today’s technology as related to gasoline fuel injection systems is one of precision, requiring a fuel not only of octane rating and combustible qualities but one free of gum and free of impurities, so as to not reduce the efficiency of the fuel injection system.

From its inception in 1972 National Petroleum’s focus as a Marketing Company was never proactive. The management of the company and members of staff who then found themselves under the NP monopoly brought with them retail marketing knowledge from the former multinational corporations whose operations were acquired by the Government of the day. Over the years the company did not see it imperative to have their marketing staff benefit from long term Diploma courses or University qualifications in the areas of marketing, advertising, lubrication engineering or fuel technology. As a consequence, members of staff departing from the company by virtue of age or seeking greener pastures, created a chasm as the company found itself with depleted skills in its core business, resulting in a situation of inadequate knowledge and inexperienced management staff.

As a state-owned company, National Petroleum’s decision to operate as a wholesaler and retailer has not met with success. The disappearance of cash and stock from its operated outlets; wholesale purchasing by the company from middlemen, company and service  station managers abrogating their responsibilities, when added up contributes to the company’s inability to realise an acceptable return on the investment. The marketing architects of the company departed in silence or left with the political tide after putting their plans for failure into action, with NP as the sacrificial lamb. Sometimes half a loaf is better than none. The tunnel vision introduced by NP’s Visionaries to the old NP Board remains on the same channel of the new NP Board. The company continues its pursuit for wholesale and retail profit margins as NP lubricant oil sales slides to its lowest ebb and another foreign lubricant wolf stalks at the doorstep of the house. It is time for the company’s marketing focus to be re-assessed rather than have its sales representatives spin in paper work.

For some illogical reason the planners of the new NP dispensation did not see it feasible to construct and develop service stations on new sites. Demographics, traffic flow and larger sites for further expansion were unable to capture their imagination as they planned toward the future. Today their planning and policies can only be viewed as an indictment against their incompetence. Space for saleable goods, fuel and office at the newly constructed service stations is now inadequate. The locating of diesel pumps on the same island as gasoline, has resulted in a liability for the company of more than half a million dollars as a result of the mix up of fuels into customer vehicles. The planners were forewarned about this situation.

The decision by National Petroleum to concentrate its focus on managing its newly constructed and renovated service stations, and those which were formally leased to dealers, so as to capture the wholesale and retail profit margins can only be described as the futile killing of the goose. In the process, the dealers who have excellent performance records and were subsequently given managerial portfolios, departed or were kicked out of the system. Expert managers brought in did not last, and in the case of one service station, six managers were changed. In the whole scenario one private dealer constructed a service station on a new site in Central Trinidad. The outlet can be described as multifaceted since it caters for more than fuel and a Quik Shoppe, since its construction expansion has been necessary because of the growth in business. This is an example of the potential of a new strategically located site.

Thirty years after the departure of NP’s predecessors from the petroleum retail sector, the company has not seen it fit to brand name some of its products sold through the service station network. For example, consumers still refer to 20 lb LPG cooking gas as Texgas and Shellane. It is time NP brand name some of its own products, for example, automotive chemicals, car batteries, gasoline, dieseline and LPG. At present there is a small local wholesaler-retailer on the marketing horizon. National Petroleum must remember that the great oak was once a seed. Although National Petroleum has been able to blend its lubricants to API and SAE standards, the Company nevertheless continues to experience declining sales in the lubricating oil market, with sales now less than 50 percent. The irony of this situation is compounded by the fact that its competitors do not operate service stations and are unable to have the consumer as a captive customer.

It is time National Petroleum review its business and marketing strategies. There is need for a concerted effort from advertising to the point-of-sale. The lubricant factor must enjoy an advertising presence as the need and occasion demands. For example, service station point-of-sale, the Great Race and Wallerfield Car Racing are without an NP lubricant advertising presence and promotion. The business section of the print media could also be used to highlight the technological capability of National Petroleum lubricants. Consideration must be given to the return of service station dealerships with a focus on equity and viability for the Company and the dealer.