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Mission To become lubricant market leader in high street market History

Lub Dagangan was founded by Dato Paduka Rahmat bin Abu Bakar, Dato has sign

contract with Petronas to become Sole distributor in the of the Petronas lubricant in
the high street market.

In 2008, Petronas Dagangan Bhd has bought the remaining 80 per cent stake in Lub Dagangan Sdn Bhd from Natpet (M) Sdn Bhd and Yasmin Jurumuda Sdn Bhd for RM16.2 million. On completion of the purchase within two months

Lub Dagangan will is a wholly-owned subsidiary of Petronas Dagangan.This purchase will help accelerate growth in its lubricant business by synergising its offerings with Lub Dagangan.

Syntium is Petronas lubricant brand for synthetic and semi synthetic Syntium need to competed directly with major player like Shell, Mobil and many more. They already establish long time ago in Malaysia. Petronas is still ranked behind the Shell and Castrol Company in the Malaysia market and this problem needs to be solved before it gets worst.

The Lub Dagangans target is to become market leader in high street market in Malaysia Lub Dagangan must improve customer perception towards Syntium lubricant Improve the weaknesses and strength up the factor become strength of Syntium lubricant All the feedback must be respond aggressively to make sure all of the customer will satisfy and continue buying it

Many factor can affect the customer like dealer or workshop to choose or purchase

This study to determining the factors business to business customer perception of the Syntium
lubricant.

The purpose of the study is to determine business to business


customer perception of Syntium lubricant. With this, specific research objective are developed, they are as follows:

1. 2.

To determine whether quality of product affect customer perception. To determine whether the pricing in lubricant effect have impact in customer perception.

3.

To determine whether the brand image will affect the customer


perception

Customer perception of Syntium lubricant and its factor are subjective and it is not easy to measure.

The sample of the study is limited due to the time constraint because I have only about 3 months to complete this report.

There are limited skills that researchers have that make the
research more complicated. High level of skill is needed in order to get excellent findings.

The present study was limited by the small sample size and it
will affect the analyze of data. However, the efforts are made to minimize the factors from affecting the result of the study.

Sometime data gathered come from unwilling respondent, or respondent with some limitation.

Time is a crucial restrain that the researcher to face. The researcher has given short time to complete the task, study to

understanding, research, gathering data and analyze data also


consume much precious time.

Confidentiality of data not all data available in the company is made accessible to the researcher.

Financial constraints the research need high cost to finance especially the cost is being borne by researcher.

The company This research also may help the Lub Dagangan to examine these factors on lubricant market before they make any decision to make marketing program. Furthermore, the management can make a better planning and strategy for improving their product and thus increasing their profit. The researcher For the researcher, this research may be able to educate me as the students on a problem in lubricant market and help me to identify and give the experience in the real corporate world. Other researches By conducting this study, it will contribute to the pool of the knowledge. The researcher wishes that the result be found useful to other researcher who are interested to pursuing the topic of interest

This research focuses only for high street market. Workshop, dealer, premium dealer is being studied for the research business to business customer perception of Syntium lubricant. The distribution of the questionnaire for this study are limited to the Klang valley and no other competing brand are include in this study The subjects of the study include the quality of the Syntium lubricant, the pricing strategy, and the brand image of the lubricant. Total of 50 questionnaires are to be disseminated at random by using convenience sampling method

Secondary data

Companys database, internal data will be collected from

company database.

The company staff can give insight idea about the problem their faces, the real experience to make this research success

Journals are important in order to study previous research already conducted in particular field.

Reference book will be use to provide deeper understanding for this subject of study.

The internet is rich of valuable information and can aid researcher in this research

Primary data

Interview was conducted with the person in charge of the dealer and workshop, this is to further explore

and gain understanding insight to the independent


variable being studied

The questionnaire will be disseminated by the researcher to the respondents. The researcher would be present when the respondent is answering the questionnaire in order to answer queries related to the questionnaire.

Method of sampling

For this study, the data will be collect by convenience sampling method. Sampling units are accessible and easy to measure. The researcher will meet and interview the selected LUB Dagangan customer to complete the questionnaires.

Population

The suitable population for the study are the dealer of the lubricant product, workshop around Klang Valley

The rule of thumb for the number of a sampling unit is 10% of population. But considering that this is a small study, 50 respondents will be enough to generalize the perception of the data.

Data analysis technique

Questionnaire is an efficient collection data collection mechanism (Sekaran, 2000) since the researcher knows what is required and how to measure the variables.

The proposed method to analyze data suggests that this study is a quantitative
study. The study will use various statistical tests and Statistical Package for Social Science (SPSS) Version 16.0 to interpret the results of data

its commonly used by researchers and easily available in business settings. To

confirm the factor business to business customer perception of the Syntium


lubricant, the pricing , the brand image and the quality of the lubricant indicate the items that are most appropriate for each dimension,

Factor analysis will be conducted. Cronbachs alpha will be used to test the reliability of scales because Cronbachs scale is best used for multipoint scaled items.

Multiple Regression Analysis will be used to determine the most significant factor(s) the pricing of the lubricant the logistic solution of the lubricant and the quality of the lubricant

business types Cumulative Frequency Valid premium dealer dealer spare part shop workshop chain workshop Total 3 5 5 34 3 50 Percent 6.0 10.0 10.0 68.0 6.0 100.0 Valid Percent 6.0 10.0 10.0 68.0 6.0 100.0 Percent 6.0 16.0 26.0 94.0 100.0

Annual sales revenue


Cumulative Frequency Valid less than 50k 50k to 100k 100K to 200k 1 4 18 Percent 2.0 8.0 36.0 Valid Percent 2.0 8.0 36.0

Percent
2.0 10.0 46.0

200M to 500K
500K to 1M More than 1M Total

14
10 3 50

28.0
20.0 6.0 100.0

28.0
20.0 6.0 100.0

74.0
94.0 100.0

Years in business Cumulative Frequency Percent 8.0 30.0 Valid Percent 8.0 30.0 Percent 8.0 38.0

Valid

Less than 2 years


2 5 years

4 15

5 10 years
10 20 years More than 20 years Total

11
16 4

22.0
32.0 8.0

22.0
32.0 8.0

60.0
92.0 100.0

50

100.0

100.0

Region in Klang Valley Cumulative Frequency Valid cheras ampang gombak klang petaling jaya kajang bangi kepong others Total 4 3 5 1 12 3 6 2 14 50 Percent 8.0 6.0 10.0 2.0 24.0 6.0 12.0 4.0 28.0 100.0 Valid Percent 8.0 6.0 10.0 2.0 24.0 6.0 12.0 4.0 28.0 100.0 Percent 8.0 14.0 24.0 26.0 50.0 56.0 68.0 72.0 100.0

Dealer/workshop another brand lubricant status Frequenc y Valid Have use, distribute another brand product Do not have use,distribute another 27 54.0 54.0 100.0 23 Percent 46.0 Valid Percent 46.0 Cumulative Percent 46.0

brand product
Total 50 100.0 100.0

Dealer/workshop Syntium lubricant status. Frequenc y Valid Have use, distribute Syntium product Do not have use,distribute Syntium product Total 50 100.0 100.0 Percent Valid Percent Cumulative Percent

47

94.0

94.0

94.0

6.0

6.0

100.0

Independent variable

Dependent variable

Quality

Pricing Brand image

Customer perception of Syntium lubricant

Figure 1.1: Theoretical Framework of the study

RQ1:Syntium lubricant can protect the engine better from others Ho: The level of decision of dealer or workshop is not positively related to its characteristics H1: Dealer or workshop with a greater degree of quality of lubricant will choose product that have higher quality

Syntium lubricant can protect your engine better than others * business types Crosstabulation Count business types premium dealer Syntium lubricant can protect your engine better than others agree strongly agree Total 3 3 0 5 0 5 7 34 1 3 11 50 disagree uncertain 0 dealer 0 spare part shop 0 workshop 1 chain workshop 1 Total 2

0 0

0 5

2 3

7 19

0 1

9 28

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 24.920a 22.782 2.970 50 df 12 12 1 sided) .015 .030 .085

a. 17 cells (85.0%) have expected count less than 5. The minimum expected count is .12.

= 0.05 Non-Rejection Region

Rejection Region
2 x = 44.311

CV=

x 0.05,12 =26.2962

CV=

0.05,16 =

26.2962

Test statistic =

Since the value of the test statistics x = 24.920 is higher than the critical value x 0.05,12 = 21.0261 is falls inside the rejection region. Therefore, the decision is to accept H1. This is support by p-value = 0.950 is greater than 0.05. It can be conclude the level of decision of Dealer or workshop with a greater degree of quality of lubricant will choose product that have higher quality

RQ2: Pricing of Syntium lubricant give more profit as compared to other brands

Ho: The level of decision of dealer or workshop is not positively related to its characteristics H2: Dealer or workshop with a greater degree of pricing strategy will choose the product that will offer good price over the product

Pricing of Syntium lubricant give more profit as compared to other brands * business types Crosstabulation Count business types premium dealer Pricing of Syntium lubricant give more strongly disagree disagree uncertain 2 0 1 dealer 0 1 0 spare part shop 0 1 0 workshop 0 2 11 chain workshop 0 0 1 Total 2 4 13

profit as compared
to other brands

agree
strongly

0
0 3

4
0 5

2
2 5

17
4 34

2
0 3

25
6 50

agree
Total

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio 44.311a 28.168 df 16 16 sided) .000 .030

Linear-by-Linear Association
N of Valid Cases

5.534
50

.019

a. 23 cells (92.0%) have expected count less than 5. The minimum


expected count is .12.

= 0.05 Non-Rejection Region

Rejection Region

2
CV=

x 0.05,12 = 26.2962
Test statistic =

CV=

0.05,16

= 26.2962

x = 44.311

Since the value of the test statistics x = 44.311 is higher than the critical value x 0.05,16 = 26.2962 is falls inside the rejection region. Therefore, the decision is to accept H2. This is support by p-value = 0.950 is greater than 0.05. It can be conclude the level of decision Dealer or workshop with a greater degree of pricing strategy will choose the product that will offer good price over the product

RQ3: Pricing of Syntium lubricant is competetive against other major lubricant brands
Ho: The level of decision of dealer or workshop is not positively related to its characteristics H3: Dealer or workshop with a greater degree of brand image will choose the product that can offer the good brand image

Pricing of Syntium lubricant is competetive against other major lubricant brands * business types Crosstabulation Count business types premium dealer Pricing of Syntium lubricant is strongly disagree disagree uncertain agree strongly agree Total 0 0 0 0 3 3 dealer 0 1 0 4 0 5 spare part shop 0 1 0 4 0 5 workshop 1 2 12 16 3 34 chain workshop 0 1 1 1 0 3 Total 1 5 13 25 6 50

competetive against
other major lubricant brands

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 33.283a 27.307 5.501 50 df 16 16 1 sided) .007 .038 .019

a. 23 cells (92.0%) have expected count less than 5. The minimum expected count is .06.

= 0.05 Non-Rejection Region

Rejection Region

2
CV=

x 0.05,12 = 26.2962
Test statistic =

CV=

0.05,16

= 26.2962

x = 33.283

Since the value of the test statistics x = 33.283 is higher than the critical value x 0.05,16 = 26.2962 is falls inside the rejection region. Therefore, the decision is to accept H3. This is support by p-value = 0.950 is greater than 0.05. It can be conclude the level of decision Dealer or workshop with a greater degree of brand image will choose the product that can offer the good brand image

Most of dealer or workshop/respondent very concern about quality of the product

Dealer or workshop choose the product that can offer the product that can offer good price over product Dealer or workshop choose the product that can offer the good brand image

Lub Dagangan must create high quality product and keep improving the quality of the product

Lub Dagangan must improve the perception of the customer about brand image Lub Dagangan must implement more profitable pricing to capture more market share