Today November 03, 2010, the shell Gas Lanka signed an agreement with Srilankan government to sell 51% of shake for US$ 63 million. While the government gets the power of control, its change the name of Shell Gas Lanka to Litro Gas.
As management student I am analyzing the usefulness of the brand name changes,
The Strengths’ of the new Brand name [Litro Gas]
- Widely distribute Litro Gas in overall Srilanka with more distributional centers,
- New pricing strategy and possibility of reduction in Gas Prices,
- Be monopoly distribution in Gas at affordable price,
- Providing a better management style as the locals need,
- New marketing strategies,
- Loyalty service from the government services,
- Special regulations for price setting and avoidance of less sudden price increments,
Weakness of the new Brand name [Litro Gas]
- May incurred huge cost for new brand development.
- Loosing of multinational brand name.
- Loosing of better management styles [ subjective and conditions apply ]
- High risk of competitions from the Laughs gas.
- The relationship with the mother company of Royal shell Gas, Netherlands.
- How the market will be react with government services,
- How the quality of services,
But whatever it is changing of the brand name and the controls creates a hope to the people to reduction in Gas prices in soon. And if the srilankan government is hoping to serve better services to public is greatly appreciate by public.