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 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?

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

Wholesalers get 6bob, retailers 3bob.

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.

But the KK could be a victim of the success of this strategy. Any OMC is not allowed to hold more than 25% of the retail market, so I guess someone at ERC is already plotting how to hack KK down - They are at 31%??

I wouldnt even think the strategy was to shore up the market share.... it might have been to restore confidence that had been eroded during all those fights they had and have something nice to talk about KK and maintain their market share.... and clearly, it worked.... instead of consumers and investors seeing them as a horse throwing its last kicks, the fact that they could still give discounts regained the public confidence and the sour taste of the bad news quickly left our mouths/memories....

I thought so. Thanks for the link.

Pardon my ignorance, but is market share determined by the number of outlets or is it by the volume of sales?

VituVingiSana et al

Total lost market share owing to loss of Agrreko contract not because of KK card. Market share in itself does not lead to profits since one may have to sacrifice the margins inorder to sell more.

Cards do not make that much cash for the OMC since most organizations buying will insist on discounts owing to the huge volume of business. However, when the same organization agrees to buy lubes from you and LPG for staff (you start a scheme) the OMC recoups the lower margins.

The most profitable segment is retail i.e. service stations. Total leads here with over 35% share of the fuel business. However with ERC limiting the margins, more cash is being made from non fuel items in the stations such as rent on ATMS, restaurant, shop, service bay etc. Needless said KK stations lack competitiveness in this area. KK may grow but it will be some time before thay threaten Total in the retail segment.

Additionally there is no rule limiting one's market share (Total and Shell have at point in the recent past each controlled in excess of 30% of the market share)