Tanzania Petrol Station Investors Focus on Location, Price, and Services to Stay Competitive

The petrol station industry is getting more crowd and complex in Tanzania and Africa. How do you move beyond the competition and become the obvious choice in your trading area?

Understanding these three drivers of choice in the petrol station sector will help you remain competitive.

In the petrol station industry, the following are the drivers of choice:

1.Location: Location is the number one driver of choice in petrol stations. Motorists can travel to the next petrol station if it is difficult to see your petrol station site.

You may achieve maximum visibility if you are located on the far corner of the main road intersecting the secondary road.

The optimum distance from the site for a motorist driving at normal speed to have enough time to make a buying decision, slow down his vehicle, and enter the station safely is 250m. Also, barriers such as proximity to junctions, traffic lights, and plot size like small frontage can affect the likelihood of customers visiting your petrol station beyond those barriers.

2. Prices. Like any commodity, fuel is consumed regularly, so the price of fuel is very important to consumers. So consider offering a special discount at your petrol station is critical to improving sales. My research reveals that due to intense competition, most petrol stations in Tanzania sell based on cost leadership and heavy discount.

3. Services. The motorists and customers pay attention to your petrol station’s level of services and experiences. Ensuring safe and clean operation, as well as fast services and employing loyalty cards and free car wash services, is a way to provide an outstanding customer experience.

Why this is Important?
It is very important for the investors considering an expansion plan in the petrol sector to select a suitable location. And the same time, it is clear that remaining competitive on price and services.