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KK is Taking Over the Oil Market
mukiha
#1 Posted : Monday, July 11, 2011 3:16:03 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
The 2bob discount was a brilliant idea. I have noticed that on Tuesdays and Fridays there are long queues at their stations.

Bearing in mind that many people fuel their cars twice a week, motorists have now timed their fueling days to coincide with the discount days.

I wonder how much pinch the other dealers are feeling.

Come to think of it; isn't this the kind of market control that NOCK was supposed to be doing?
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
Kirika
#2 Posted : Monday, July 11, 2011 3:34:11 PM
Rank: Member

Joined: 1/26/2011
Posts: 211
Location: Nairobi

Forget NOCK, half the time they dont have even diesel.

True the qeue's may be long on those 2 days but i wouldnt bet on that to shore up the market share.
Gordon Gekko
#3 Posted : Monday, July 11, 2011 3:35:10 PM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
Been wondering if they are making cash or just strangling the opposition to death - already the independents are in rigor mortis. I can't recall the margins set by the ERC formula for wholesalers and retailers, but assuming KK is taking up both (unlikely as they have franchised and don't own the petrol stations) the total margin can't be more than ksh 5/- which is the discount I get on Sundays.
Unless they are working on margins of say 50cts and making sure they ramp up the volumes.
Insurgent
#4 Posted : Monday, July 11, 2011 3:36:39 PM
Rank: User

Joined: 8/6/2010
Posts: 594
mukiha wrote:
The 2bob discount was a brilliant idea. I have noticed that on Tuesdays and Fridays there are long queues at their stations.

Bearing in mind that many people fuel their cars twice a week, motorists have now timed their fueling days to coincide with the discount days.

I wonder how much pinch the other dealers are feeling.

Come to think of it; isn't this the kind of market control that NOCK was supposed to be doing?
The worst part about Nock is that they do not have considerable petrol stations in strategic places such as along highways or main shopping centrals where petrol asking is high. Why they don't see the fact might be because they are primates or think like primates. You find them in Nairobi West where the jam is terrible and thus find no need to go in there when they are cheaper by two bob. Mukiha, are you getting the gist here?


"One man gives freely, yet gains even more; another withholds unduly, but comes to poverty. A generous man will prosper; he who refreshes others will himself be refreshed." Rev Canon Karanja.

nostoppingthis
#5 Posted : Monday, July 11, 2011 3:36:39 PM
Rank: Chief

Joined: 8/24/2009
Posts: 5,909
Location: Nairobi
@Mukiha, you should see the queues on Sunday when it is 3 bob off the pump price....but i'm informed of a place in Buruburu where the fuel remains less 2 shillings any day of the week, not confirmed yet...
jawz1
#6 Posted : Monday, July 11, 2011 3:44:20 PM
Rank: Member

Joined: 8/4/2008
Posts: 205
Location: Nairobi
Kirika wrote:

Forget NOCK, half the time they dont have even diesel.

True the qeue's may be long on those 2 days but i wouldnt bet on that to shore up the market share.

The true picture will come out soon but I believe the market is betting on KK to eat into exiting Shell's share, it's already taken a chunk out of Total smile
"When the pupil is ready to learn, a teacher will appear." -- Zen proverb
jawz1
#7 Posted : Monday, July 11, 2011 3:47:05 PM
Rank: Member

Joined: 8/4/2008
Posts: 205
Location: Nairobi
mukiha wrote:
The 2bob discount was a brilliant idea. I have noticed that on Tuesdays and Fridays there are long queues at their stations.

Bearing in mind that many people fuel their cars twice a week, motorists have now timed their fueling days to coincide with the discount days.

I wonder how much pinch the other dealers are feeling.

Come to think of it; isn't this the kind of market control that NOCK was supposed to be doing?

Don't forget Super Sunday offer! And the K-card which locks in more drivers as well. Didn't you notice NOCK belatedly launcing their fuel card? (Can't even recall it's name now!) d'oh!
"When the pupil is ready to learn, a teacher will appear." -- Zen proverb
mukiha
#8 Posted : Monday, July 11, 2011 3:59:26 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
Gordon Gekko wrote:
Been wondering if they are making cash or just strangling the opposition to death - already the independents are in rigor mortis. I can't recall the margins set by the ERC formula for wholesalers and retailers, but assuming KK is taking up both (unlikely as they have franchised and don't own the petrol stations) the total margin can't be more than ksh 5/- which is the discount I get on Sundays.
Unless they are working on margins of say 50cts and making sure they ramp up the volumes.


Wholesalers get 6bob, retailers 3bob.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
milken
#9 Posted : Monday, July 11, 2011 4:00:10 PM
Rank: Member

Joined: 4/25/2008
Posts: 192
Location: Nairobi
Total and Shell have had cards for more that 10 years and have already taken the big companies with fleets hence KK we be up against an uphill task to convince them to change.
Itari muting'oe ihuragwo ngi ni Ngai
Aguytrying
#10 Posted : Monday, July 11, 2011 4:18:18 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
Kk is definitely taking over. Its just common sense for any motorist to time, tuesdays and fridays. The nock on nairobi west, is constantly at 112.9. I almost thought the tariffs have changed. We'll know soon enough just how effective the price changes have been, from H1 results. I wonder how they are able to sell at these discounts, when the opposition have stayed put.
The investor's chief problem - and even his worst enemy - is likely to be himself
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