Effect of Global Oil Price Volatility on NNPC Ltd Marketing Strategy

Abstract

The study examines the effect of Global oil prices volatility on Nigeria National Petroleum Company Limited (NNPCL) marketing strategy. The study specifically determines how global oil price volatility effect on product, pricing and place strategy of NNPCL. The study adopted a survey research design. The population of the study was 5,566 staff. The sample size was 373 determine using Taro Yamani. The study adopted Stratified and random sampling technique, while data were collected via structured questionnaire from the respondent. Data were analyzed using ordinary regression analysis to test the formulated hypotheses. The findings revealed that Global oil price volatility has positive significant effect on Nigeria National Petroleum Company Limited (NNPCL) product strategy. Hypotheses two indicate that Global oil price volatility has positive significant effect on NNPCL pricing strategy. The third hypotheses further showed that global oil price volatility has positive significant effect on NNPCL place strategy. The study concludes that global oil price volatility has positive significant effect on product strategy, pricing strategy and place strategy of Nigeria National Petroleum Company Limited (NNPCL) . The study recommends that Nigeria National Petroleum Company Limited should embark on diversifying its product portfolio to include other petroleum products, such as petrochemicals, lubricant and biofuels to mitigate the effect of global oil price volatility. Nigeria National Petroleum Company Limited should adopt a dynamic pricing strategy that takes into account changes in global oil prices, demand and supply. Nigeria National Petroleum Company Limited can form strategic partnerships with other oil companies, logistic providers, and retailers to improve its distribution network to various places and reduce costs.