LA MIGRACIÓN INTERNACIONAL EN EL PERÚ Y EL IMPACTO ECONÓMICO, SOCIAL DE LAS REMESAS

The data in the supply chain suggests motor oil brands generate brand identity through direct link with customers in the retail. In the following sections, the factors relating to brand identity and how brands are to be seen in the retail towards attracting customers’ attention and profitability comprising the communication process and nature of shelving will be uncovered. The findings provide meanings to retail promotions of motor oil in the UK and Nigeria towards attracting customer attention. For the purpose of this study, the retail included traditional stores, motor factors stores, DIY stores, supermarkets and stores found in filling stations. Tables 5.3 and 5.4 show the classification of the UK and Nigerian automotive end channel structure.

Table 5.3: Classification of UK channel structure

Retail Garage

Table 5.4: Classification of Nigerian channel structure

Retail Garage

Filling stations Traditional retail Car dealers Independent garages Service centre

The findings of this study suggest store image and the influence it has on the consumer's mind play a leading role in improving brand perception and favourable image. However, with changes in consumer tastes and market structure between different countries, the findings will offer meanings to retail branding culture in the UK and Nigeria to gain insight into motor oil retail branding culture. Figure 5.1 models the different retail branding attributes in order to draw consumer attention.

Figure 5.1: Retail model

As mentioned in Section 5.1.2, retail served as the point of contact between the brand and the consumer. The researcher uncovered the use of middlemen as intermediaries between the manufacturer and the retailer among the major brands; hence, motor oil is pushed from the wholesaler to the retailer. Perhaps this trend may be as a result of the wider market reach of global brands. However, the results further revealed brand push of the lower brands directly to the retailer without using middlemen. At this point, the interplay of brand push and pull between the retail and the motorist takes place with both sectors using different strategies to encourage patronage.

The use of attractive shelves in retail is an important attribute in building store image. The results from traditional retail stores in the UK and Nigeria suggest a lack of effort to make the shelves attractive. Respondents in the UK seem to point to the inherited nature of the business, while the lack of finance is most influencing with Nigerian retailers as reasons for the lack of store improvement. However, retailers seem to have more emphasis on shelves in motor factors, DIY, superstores and filling station stores having price and brand information for customer convenience. Similarly, these retailers consistently use POS promotional material with target poster display to attract the DIY motorist by the global brands.

Counterintuitively, despite their high promotion and adverts in different channels, global brands are rarely found in shelves of stores and motor factors. However, lower and generic brands seem to dominate the retail market, perhaps because of the price difference between the brands influencing brand choice, with the global brands priced higher than the lower brands.

This is surprising, considering the equity these global brands have and the image enhancement they will have when displayed in retail. However, results from the more established retailers in both countries suggest stocking global brands to enhance store image.

This is consistent with the views of Ailawadi and Keller (2004), where they posit retailers improve store and brand image by stocking major brands that have established a brand image and equity, operating as “ingredient brands”, where they boost consumer interest, loyalty and patronage to the store image. This then suggests that the equity of the store and the other brands rely on the equity of the higher brands. Furthermore, the result indicates shelf space competition between the major brands and generic brands, due to the higher price of major brands compared to the lower priced generic one’s offered by the retailers. Additionally, a recurrent theme among the UK retailers is the presence of store brands stacked alongside manufacturer brands. Counter-intuitively, results from Nigerian retail show no presence of store brands. This then suggests the sophistication and power of UK retailers in developing brands, whereas Nigerian retailers rely solely on manufacturer brands.

Similarly, the researcher uncovers retail brand assortment is used to influence brand image so as to generate consumer pull and build equity by displaying different brands to improve market share in the channel profit. Given the diversity of consumer tastes and the consumer tendency to seek variety, the literature suggests retailers that increase brand variety or assortment have an increase in the market share (Kahn, 1998; Bayus and Putsis Jr, 1999;

Hoch et al. 1999). This is consistent with the research findings in the UK and Nigeria where respondents indicated the importance of stocking different brands to influence sale and consumer choice. In contrast, Dhar (1997), Iyengar and Lepper (2000), Boatwright and Nunes (2001), Chernev (2003) and Gourville and Soman (2005) questioned the assertion of assortment creating a positive impact on purchase behaviour. Hence, they argued that an increase in assortments does not improve consumer choice.

Additionally, a cognitive influence to draw the customer awareness towards brand purchase was uncovered in Nigerian filling stations. They do this by displaying brands in shelves near fuel dispenser pumps. A response from an informant at a Total station echoed this: “They are there to remind motorists to buy the oil”. Here, the strategy seems to serve two purposes, improve brand awareness and induce purchase; however, this strategy is not found in the UK retail. Consequently, branding at the retail stage involves different strategies such as brand image, retail brand equity, product assortment, merchandising, pricing, brand awareness and brand reach to attract the customer.

Similarly, the location of brands in store, store size and store atmosphere are important attributes in improving retail image and influence perception. Although previous studies (Richardson et al. 1996; Schlosser 1998; and Baker et al. 2002) centred on stores’

environmental factors to influence the merchandise quality, price, employee service quality and socially communicative product perceptions, this study counterintuitively identified shelving, the location of the brands and store size to have an improved store image and provide a pleasing atmosphere to reflect on the perceptions of brand quality. However, with a store the size of 6x5 feet or 7x6 feet in traditional stores and motor factors in the UK, these research findings show a large number of stores offer limited space for a favourable atmosphere. These contrast findings in Nigeria where the data indicates stores in all categories are 6x5 feet in stores and 17x16 feet in filling stations. This shows that UK stores are more appealing with consumer purchase convenience, whereas Nigerian stores are poorly arranged with no effort to provide purchase convenience.

Also, consistent with Ailawadi and Keller (2004), the findings suggest an appealing store atmosphere provides a hedonic utility to consumers, encourage a regular visit, repeat purchase and a longer stay. Hence, an appealing store suggests a higher potential for differentiation and carving a unique image. This is identified in department stores, DIY stores

appealing. This is not found in Nigeria where counterintuitively results suggest brands are placed in front of stores facing the road (see Appendix 28). Filling station stores are often hot with no electricity to allow for air conditioning.

5.1.2.3.2 Merchandising

Retail merchandise displays used to systematically influence customer purchase and improve the retail image are an integral part of modern retail. This is mostly found in the UK retail and filling station stores of global brands in Nigeria. This finding is consistent with the submission of Smith and Burns (1996) in that a retailer’s price offering is influenced by the number of stock keeping units (SKUs) on shelves in food supermarkets. Additionally, the study is consistent with Kent's (2003) evaluation of retailer’s use of display and space to define customers brand experience. Shelving and location of brands capture the retailer attributes to influence the retailer’s brand image (Davies and Brooks, 1989; Davies, 1992;

Ailawadi and Keller, 2004; Dabija and Abrudan, 2008). The findings further reveal retail shelves in the UK are modern and attractive, but this was not the case in Nigerian retail, except at the filling stations.

Furthermore, to influence loyalty and induce purchase, the results suggest prize draw promo through POS offers by urging customers to contact retailers for a winning price. This was evident in the results from a motor factors store which showed:

“…a picture of Ford Motor Sport World Rally Championship, Moto GP, UEFA EURO 2012, featuring Cristiano Ronaldo, Sashin Tendulkar for World Cricket Twenty 20, British superbikes and Lizzie Armistead for Olympics 2012”.

This finding supports that of Kumar and Leone (1988), where they found display activities, price promotion and featured improved brand sale. Counterintuitively, the paradox of using sporting events that are not motor related as uncovered in this finding is consistent with the results of Lear et al. (2009) who posited that sports celebrity endorsement in retail adverts utilises football and baseball players more frequently than other professional athletes.

The results suggest that manufacturers use differentiation as a value creation tool to distinguish brands and build competitive advantage. The researcher uncovered tangible features like the packaging (design, size and colour) are used to distinguish brands. This was

explained by a respondent in one of the stores: “Well, if you want to beat price premium of the brand you have to consider your packaging”. The data also shows the importance of colours to differentiate Castrol having its distinct colours, “the green, white and golden colour stands out” in every store visited. “Mobil has maintained the silver colour which does not seem to be attractive”. The results thus show an effort to differentiate between other brands in the market. A similar trend was observed with other local brands where “silver colour is used” to package the brand. However, “generic” brands “use bright attractive colours” to differentiate their brands from others. Halfords, for example, uses six different colours in its package design, which serves as a way of competing with those global brands on the shelf.

The data further suggests intangible features, including brand quality, image, security and use of technology, safety, durability, reliability, pre-sale, after-sales service and distribution patterns were used to differentiate and build awareness. This is consistent with Bendixen et al. (2004) where they found price, technology, perceived quality, reliability, performance and delivery have an important role in B2B branding. Consistently, ad copies indicate expressing the brand's functional benefits by using slogans like, “It’s more than just oil. It's liquid engineering”. Here the brand’s unique quality is expressed drawing the customer’s attention to the brand importance of performance and excellence while expressing differentiation.

Furthermore, the brand aimed to build trust by assuring motorists of the brand function while building a strong brand image. Brands advertised here are made to appear as leading brands, stressing unique characteristics and expressing market leadership.