Chevron Ranks as Most Powerful Brand for Second Year in a Row, According to OPIS.WALL, N.J. -- Last year saw gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by prices eclipse the $3.00 mark for the first time ever, putting the industry in the forefront of the media and bitter consumers. Despite claims that brand loyalty no longer exists some brands were able to extract a higher price over their direct competitors. The key questions to brand power are whether a particular flag can obtain a premium for its product in an increasingly more competitive landscape, and does an investment in one brand return more than an investment in another brand. For the second straight year, Oil Price Information Service (OPIS OPIS Oil Price Information Service OPIS Ocean Planning Information System (US NOAA) OPIS Online Procurement Information System OPIS Online Planning Information Service OPIS Optical Path Integration Solutions ), has just released its Brand Power Ranking Report (http://www.opisnet.com/retail/pandemonium_pr022106.asp) which ranks the price differentials of some of the most influential gasoline retailers. Retail data in this report shows that Chevron was the most powerful brand in terms of pricing power Pricing Power An economic term referring to the effect that a change in a firm's product price has on the quantity demanded of that product. Pricing power ties in with the "Price Elasticity of Demand. in 2005. The average Chevron station was able to extract an extra 1.94 cts per gal from its customer over what the direct competition was charging at the pump. Despite the impressive differential, the Chevron brand ranked 6th in overall national margins and had the best margin in only one state. This indicates that the Chevron flag fly's in more competitive markets than those brands which had higher margins. The Texaco Brand which was number one in 2003 jumped from the fourth spot last year to the second spot in 2005. Texaco also finished one spot lower in terms of national brand margins than Chevron, but had the best branded margins in a whopping 10 states. The Texaco flag still retains a lot of clout with consumers in many markets despite being neglected over the last few years. Some other major flags that saw their rankings jump from the previous year include, Mobil, Exxon, Marathon Ashland, Fina, Sinclair & Gulf. Brands showing a decline in rankings include Shell, BP, Sunoco, Conoco, Phillips 66, 76, Tesoro, Citgo, Mapco and Irving. Irving, however, had the best rack-to-retail margins in the country, mostly benefiting from the locations in which its sites reside. The Exxon and Mobil flags also saw impressive margins ranking third and fourth in national margins respectively. Geography helped these flags -- each one had the best margins in 11 states. At the opposite end of the spectrum were those brands who priced very aggressively against their competition. Arco was the only traditional retailer to be ranked in the bottom twenty. Most of the others included supermarket chains such as Safeway, Kroger, Stop & Shop and Albertsons or wholesale warehouse clubs such as Costco, BJ's or Sam's Club Sam's Club is a membership-only warehouse club owned and operated by Wal-Mart Stores, Inc. History The first Sam's Club opened in April 1983 in Midwest City, Oklahoma in the United States.[1] Sam's Club is named after Sam Walton. . Other aggressive players were new era convenience store chains such as Wawa, Sheetz, Maverik and Racetrac. Some of these flags averaged a price differential that was nearly 10 cts per gal less than those brands they directly competed against. Not surprisingly these brands finished at the bottom in terms of rack-to-retail margin rankings as well. It is important to note that the Brand Power Rankings reflect how the flags retail price compares against the retail prices of stations in the direct trade area. The rack-to-retail margins examine the average profits of the brand at each of its stations. The Brand Power Rankings are more reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of what type of value the brand puts on itself, and the price differential that the consumer is willing to pay to shop at the station. Among the influential gasoline retailers listed in the OPIS Brand Power Ranking Report are Arco, Rotten rot·ten adj. rot·ten·er, rot·ten·est 1. Being in a state of putrefaction or decay; decomposed. 2. Having a foul odor resulting from or suggestive of decay; putrid. 3. Robbie, Sam's Club, Wawa, Costco, Aloha, BJ's, Safeway, Murphy USA, Maverik, Meijer, Royal Farms, Racetrac, Kroger, Stop & Shop, Miristar, Weigel, Albertsons, Sheetz, Optima, Hess, Thornton Oil, Getty, Gate, QuikTrip, Clark, Valero, Gas America, Mapco, Gulf, Speedway Speedway, town (1990 pop. 13,092), Marion co., central Ind., just W of Indianapolis; inc. 1926. The Indianapolis Speedway, site of the annual Indianapolis 500 car race, is located there. There is also light manufacturing. , Citgo, Tesoro, PDQ (Parallel Data Query) A query optimized for massively parallel processors (MPPs). The software breaks down the query into pieces so that several parts of the database can be searched simultaneously. See SMP. 76, Phillips 66, Casey's, Sinclair, Crown, Fina, Kum & Go, Conoco, Marathon, Exxon, Mobil, Sunoco and more. The OPIS Brand Power Ranking Report is part of "Pandemonium Pandemonium Milton’s capital of the devils. [Br. Lit.: Paradise Lost] See : Confusion Pandemonium chief city of Hell. [Br. Lit.: Paradise Lost] See : Hell at the Pump". A brand new 140 page detailed report that examines the entire supply chain and includes statistics on NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). data, supply & demand information, refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar margins, wholesale trends, retail margins, significant industry news and more. To get your copy of the full report, call toll-free 1-888-301-2645 or visit http://www.opisnet.com/retail/pandemonium_pr022106.asp. OPIS is the principal provider of downstream From the provider to the customer. Downloading files and Web pages from the Internet is the downstream side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail, etc.). oil industry news, spot, rack (wholesale) and retail gasoline prices, providing more than 100,000 prices a day to thousands of traders, marketers, and end-users. More than 1 billion gallons of fuel are sold annually in the U.S. based on OPIS prices. For more information, visit http://www.opisnet.com/index_pandemoniumpr.asp. |
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