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Marketing strategy for lubricants among fleet owner segment

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Project report on marketing strategy for lubricants among fleet owner segment . ( HPCL Bengaluru)

Project report on marketing strategy for lubricants among fleet owner segment . ( HPCL Bengaluru)

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  • 1. Marketing strategy for lubricants among Fleet owner segmentINTRODUCTION:In this period of globalization, factors like economic crises, differences in standards ofliving, imbalances in income distribution, environmental degradation, political unrestand a plethora of other social, economic and technological problems tend to increasethe challenges and threats faced by companies and nations. While these factors can bethreats to a business, marketers try continuously to convert them into opportunities.Thus, marketing plays a significant role in successfully running a business.Marketing has become an inherent part of our lives and permeates every aspects ofour day- to-day existence. Activities such as watching television, listening to theradio, reading the news paper, buying grocery items- they are all dependent onmarketing. Marketing focuses on satisfying human and social needs and wants, andhelps companies transform private and social needs into profitability businessopportunities.Marketers need to deliver value to their customers. They also need to communicate totheir customers the value they are delivering. Complete customer satisfaction isachieved by understanding customer requirements and delivering superior qualitygoods and services. Companies must provide the customers with a continuous flow ofnew ides/offers and constantly enhance their service levels to build up satisfactionamong customers.A marketing program starts with idea generation for a product and ends only whencustomer‟s wants have been completely satisfied. It might run well beyond the sale ofthe product, to ensure customer satisfaction and encourage repeat business.STRATEGIC MARKETING PLANNING:Strategic market planning is the process of communicating and sharing data betweendifferent departments of an organization to collectively formulate future strategies andimplement them with maximum efficiency. Strategy formulation helps the decisionmakers of the organization to proactively respond to needs of the market and thus stayahead of companies.Noble School of Business 1
  • 2. Marketing strategy for lubricants among Fleet owner segmentCORPORATE AND DIVISIONAL STRATEGIC PLANNING:Strategic planning involves framing corporate and divisional strategies. However,prior to that the company has to identify its position in the market. Today firms faceglobal competition. To sustain itself in a global market a company has to adapt tointernational standards. The strategic planning process may suffer, if there is anincreased resistance to change within the organization. To deal with such situation,Igor Ansoff suggested a „managed-resistance or accordion approach‟ in which a firmcan employ coercive strategy when there is a pressing need for change.MARKETING PROCESS:The marketing process of a company typically involve identifying the viable andpotential marketing opportunities in the environment, developing strategies toefficiency utilize these opportunities, evolving suitable marketing strategies andsupervising the implementation of these marketing efforts. Traditionally, marketinghas been done on the basis of production concept, where a product is made andpushed into the market without considering the consumer perception and attitudes.But over the years, the marketing process has transformed into an integratedmarketing approach, which is now largely being employed by most organizationsacross the globe. The firm must therefore concentrate on formulating strategies toattract customers based on their value perceptions.STEPS IN PLANNING PROCESS:The steps in the marketing planning process are, analyzing the marketingopportunities, developing marketing strategies, planning marketing programs, andmanaging effort.ANALYZING THE MARKETING OPPURTUNITIES:Every company has to analyze its marketing opportunities based on its area ofsignificance, position, and sales in the market. For example, let us say there is a hugeNoble School of Business 2
  • 3. Marketing strategy for lubricants among Fleet owner segmentmarket potential for micro mobile phones. Where a small chip can be placed insidethe ear and one can hear and speak through it. Market research has to be conducted toestimate the market potential for the product, and the segments to be targeted and tosearch for appropriate channels and distributors. The company has focus on factorssuch as the features and benefits that the customers would expect and the advertisingand promotional strategies that have to be adopted. With such data, the product maybe developed using advanced technology, such as WAP and Bluetooth.DEVELOPING MARKETING STRATEGIES:Marketing strategies have to be designed subsequent to the product development andthe analysis of marketing opportunities. Specific suitable to the target markets have tobe developed, even while the product enters the different stages of its life cycle.Strategies developed at these stages should be so effective that competitiveadvantages developed at these stages should be so effective that a competitiveadvantage is always sustained.PLANNING MARKETING PROGRAMS:Marketing programs have to be planned in such a way that the strategies formulatedare properly implemented and aid in the achievement of organizational goals. Everycompany while planning the marketing programs should consider the marketing mixvariables- product, price, place, and promotion. Each marketing mix variable in turnhas several factors that have to be focused upon. For instance, the product has factorslike features, design, quality, packing, etc. the pricing factor are discounts, creditlimits etc. The place includes factors such as distributors, location, market coverageetc and finally the promotional factors include advertising, offers, public relations etc.The budget allocation for different program has to be planned by the manager. Thebudget for different marketing programs is often allocated depending upon theestimated sales of the products.Noble School of Business 3
  • 4. Marketing strategy for lubricants among Fleet owner segmentMANAGING THE MARKETING EFFORT:Managing the marketing effort is a crucial task. After the strategy formulation and thesubsequent development of the marketing plan, necessary steps have to be taken tocontrol the activities and put them on track. The budget allocated has to be properlyutilized. If any deviations occur at any stage of marketing process, the managershould efficiently control them. The management of the marketing effort is theresponsibility of the entire organization, as any fault at any stage of productdevelopment process, will affect the scale badly. Therefore due care has to be takenwhile selecting the raw materials, stocking them, processing them and so on.MARKETING PLAN:Marketing planning involves the development of logical process to establishmarketing goals and plans to achieve these goals. It involves allocating budgets fordifferent marketing activities and evaluating the target market segment. Marketingplanning may be informal in small organizations while it may be formal process inlarge organizations. Experts have identified, developed and implementation ofmarketing plans. They are confusion between tactics and strategy, marketing functionand the marketing concept, organizational obstacles, lack of a proper evaluationprocess, confusion between operations and output, absence of adequate knowledge,absence of a structural approach, inappropriate method of sequencing the goals, andan unfavorable corporate environment. Therefore, the management should takenecessary steps to overcome these barriers to marketing planning and implementation.The marketing plan of a business firm involves several functions namely, a chartspecifying the content, opportunity and issue analysis, marketing strategy, actionprogram, project profit and loss statement and control measures.SWOT ANALYSIS:The overall evaluation of a company‟s strengths, weakness, opportunities, and threatsis called as SWOT analysis. It‟s a way of monitoring the external and internalmarketing environment.Noble School of Business 4
  • 5. Marketing strategy for lubricants among Fleet owner segmentSTRENGTH’S:SL STRENGTH’SNO 01 HPCL has largest base oil refinery in India (produce 360 varieties) 02 A Fortune 500 company, with Navaratna status. 03 2nd largest oil company in India. 04 Low cost of product. 05 Good reach in urban & rural areas. 06 Lal ghoda (HP lube) has highest sales. 07 Strength to decide domestic base oil process; competitive Edge.WEAKNESS’S:SL WEAKNESS’SNO 01 Lack of promotions. 02 R&D Expenditure is comparatively less. 03 Weak logistics. 04 Depend on competitors for Grade ii & iii, base oil‟s. 05 Old refineries.Noble School of Business 5
  • 6. Marketing strategy for lubricants among Fleet owner segmentOPPORTUNITIES:SL OPPORTUNITIESNO 01 Aviation lubes market; Tie up with MNC. 02 Tie up with private oil companies. 03 Growing economy. 04 Entry to global markets. 05 Opportunities in Export market. 06 Grease: tie up with bearing manufacturer.THREATS:SL THREATSNO 01 Increased drain period. 02 Mineral base lube volume loss to synthesis base lubes. 03 Increasing cost of crude oil. 04 Technology edge of competitors. 05 Alternate energy resources.Noble School of Business 6
  • 7. Marketing strategy for lubricants among Fleet owner segment LUBRICANTSWhat are Lubricants?Lubricants are an essential part ofmodern machinery. Everything fromcomputer hard disk drives to theAirbus A380 requires lubrication of itsmoving parts.A lubricant (colloquially, lube, although this may also refer to personal lubricants) isa substance (usually a liquid) introduced between two moving surfaces to reduce thefriction and wear between them. A lubricant provides a protective film, which allowsfor two touching surfaces to be separated, thus lessening the friction between them.Lubricants also play a role in cooling, rust prevention and help to avoid deposition ofsolids between closely fitting parts. Liquid lubricants are most commonly used, butfor some special situations like extremes of temperature or where renewal of liquidlubes is difficult, solid lubricants like graphite or molybdenum are used.Crude oil is an excellent source of lubes because refining can produce a wide range ofliquids with different physical properties. The basic process includes vacuumdistillation and dewaxing to produce the fraction with the right viscosity-temperaturecharacteristics. Viscosity (*) is the most important characteristic while deciding onlubes. Changes in viscosity with temperature are of significance and are denoted bythe Viscosity Index *Viscosity is a measure of its thickness or ability to flow.By use of relatively large amounts of additives it is possible to formulate oil whichmay fall within the range of more than one SAE (Society of Automotive Engineers)grade. Since all VI improvers increase viscosity, a base oil of low viscosity is used.Lubes can therefore be classified on the basis of the characteristic as single grade ormultiple grades. Multi grade lubes are superior because of better physicalcharacteristics and variety of use.Noble School of Business 7
  • 8. Marketing strategy for lubricants among Fleet owner segmentTypically lubricants contain 90% base oil (most often petroleum fractions, calledmineral oils) and less than 10% additives. Vegetable oils or synthetic liquids such ashydrogenated polyolefin‟s; esters, silicone, fluorocarbons and many others aresometimes used as base oils. Additives deliver reduced friction and wear, increasedviscosity, improved viscosity index, resistance to corrosion and oxidation, aging orcontamination, etc.Non-liquid lubricants include grease, powders (dry graphite, PTFE, Molybdenumdisulfide, etc.), Teflon tape used in plumbing, air cushion and others. Anotherapproach to reducing friction and wear is to use bearings such as ball bearings, rollerbearings or air bearings or to use sound, in the case of acoustic lubrication.Lubricants such as 2-cycle oil are also added to some fuels. Sulfur impurities in fuelsalso provide some lubrication properties, which have to be taken in account whenswitching to a low-sulfur diesel; biodiesel is a popular diesel fuel additive providingadditional lubricity.Types of Lubricants: Liquid including emulsions and suspensions Solid Greases PastesLiquid lubricants:Liquid lubricants may be characterized in many different ways. One of the mostcommon ways is by the type of base oil used. Following are the most common types. Water Mineral oils Vegetable (natural oil) Synthetic oils Others Solid lubricantsNoble School of Business 8
  • 9. Marketing strategy for lubricants among Fleet owner segment Graphite Molybdenum disulphide Teflon Boron nitrideApplication by Fluid Types Automotive o Engine oils  Petrol (Gasoline) engine oils  Diesel engine oils o Automotive transmission fluids o Gearbox fluids o Brake fluids o Hydraulic fluids Other motors o 2-stroke engine oils Industrial o Hydraulic fluids o Compressor oils o Gear oils Aviation o Gas turbine engine oils o Piston engine oils Marine o Top engine oil o Crankcase fluids o Stern tube lubricantsLube Market in IndiaThe entire lubes market in India can be classified into two key segments, automotiveand industrial. In India, the automotive lubes account for over 60% of the market.Diesel lubes share is estimated at 70% of the same because it comprises commercialNoble School of Business 9
  • 10. Marketing strategy for lubricants among Fleet owner segmentvehicles including trucks. The current Indian market is estimated at Rs55bn in valueand is growing at 5% pa. This translates to a volume of 1.05 mn kl per annum. Theinstalled capacity is 1.6 mn kl per annum, leading to oversupply.There are two key markets for lubes in India, namely the original equipment (OE)segment and retail trade. Given high levels of competition, OE linkages are becomingimportant. The channels for replacement market or the retail segment are petrolpumps and retail outlets. Under the Administered Pricing Mechanism, ownership ofpetrol pumps was restricted to the four major oil-marketing companies, i.e. IOCL,HPCL, BPCL and IBP.The Indian lubes market was regulated till 1993, with the market dominated by the 4public sector undertakings including IOCL, BPCL, HPCL and IBP. Followingliberalization, the major policy initiatives taken were Decanalisation of base oil - Before 1993, base oil, and the key raw material was imported by IOCL, the sole canalizing agent. Pricing - Under APM, the lube base oil pricing was regulated. This was deregulated in a phased manner and now base oil pricing is market determined. Quantitative restrictions - Base oil stock was allotted to the users on a quota basis, which became irrelevant after decanalisation and freer imports. Reduction in duties - Customs duty on base oil stock was reduced from a peak of 85% to current levels of 35%.Noble School of Business 10
  • 11. Marketing strategy for lubricants among Fleet owner segmentLubricants at HPCL also known as HP LubesHP Lubes is an integral part of Hindustan Petroleum Corporation Limited, one ofIndias frontline oil majors, committed to providing energy and fuelling growth inevery significant area of development. In pursuit of this vision, there is a sustainedemphasis on environment protection and preserving the cultural heritage of India.HP Lubricants are borne out of an intense and unrelenting R & D effort, which aimsat producing quality products that enhance automotive performance standards. Therange of HP Lubes is comprehensive and catering to the minutest needs; from newgeneration cars to ploughing tractors and industrial machinery. The range conformsstrictly to OEM specifications, often taking the initiative in customization of products. Staffed with highly qualified scientists and employing the latest state - of - the - arttechnologies, the PDC ensures that HP Lubes invariably meet demandinginternational standards. Committed to the concern of the Lube industry at large, thePDC constantly shares useful data with other industry members and technical bodiesthrough presentations, publications (national and international journals), seminars andconferences.The HP Engine Oils product range covers over 300 brands of lubricants, greases andspecialties‟ catering to the automotive as well as industrial sector. With consumersrecognizing the importance of high quality lubricants in ensuring prolonged andtrouble-free operations, the demand for HP engine oils, gear oils, transmission oils,greases and other specialties have gone up appreciably over the years.Behind the success of HP Engine Oils lies years and years of research and technicalexpertise. They are engineered to meet the rigours of modern automobiles and theextreme service conditions of highly sophisticated industrial machines. HPCL has sixlube blending plants at Mumbai, Calcutta, Chennai and Silvassa.Based on extensive market research, the lubes business unit has launched several newbrands, which have become highly successful in the market. A large number of newindustrial grades have also been introduced to meet specific requirements of industrialconsumers.Noble School of Business 11
  • 12. Marketing strategy for lubricants among Fleet owner segmentHPCL has also introduced a large number of Exclusive Lube Distributors who areaccessing remote corners of the Bazaar trade. To cater to small volume customers,HPCL has recently launched CFAsHPCL market now extends to countries like Nepal, Sri Lanka, Bangladesh, SaudiArabia and Malaysia.Noble School of Business 12
  • 13. Marketing strategy for lubricants among Fleet owner segmentCOMPANY PROFILEINTRODUCTION:HPCL was formed in 1974 on nationalization of ESSO India operations. Theoperations of Caltex were merged in 1976. Hindustan Petroleum Corporation Limitedtoday is the second largest integrated oil refining and marketing company in India andalso a fortune 500 company with a turnover of Rs.646.89 billion (US$ 14,709Millions). The Corporation has already been identified by the Government of India asa company which has the potential to become a global giant. The company employsabout 11,088 people and has a market value of US $2.73 billion as of 2005. It facesstiff competition from Bharat Petroleum and Indian Oil Corporation. It is a megaPublic Sector Undertaking (PSU) with Navaratna status. HPCL accounts for 20.9 % of the market share and 10.3% of the nation‟s refiningcapacity with two coastal refineries, one at Mumbai (West Coast) having a capacity of5.5 (Million Metric Tonnes Per Annum) MMTPA and the other in Vishakhapatnam(East Coast) with a capacity of 7.5 MMTPA. HPCL also holds an equity stake of16.95% in Mangalore Refinery & Petrochemicals Limited (MRPL), a state-of-the-artrefinery at Mangalore with a capacity of 9 MMTPA. HPCL is well on its way towardssetting up another grass root refinery in the state of Punjab, called Guru Gobind SinghRefineries Limited. HPCL also owns and operates the country‟s largest LubeRefinery, producing Lube Base Oils of international standards. With the capacity of3,35,000 Metric Tons. This refinery accounts for over 40% of the country‟s total LubeBase Oil production. Besides, the Corporation owns 6 Lube Blending Plants (2 inMumbai and 1 each at Budge, Ramnagar, Chennai & Silvassa) and a Lube oil pipelinefor evacuation of base oil from Mumbai Refinery. Presently HPCL is producing over300 grades of lubes, specialties and greases.Noble School of Business 13
  • 14. Marketing strategy for lubricants among Fleet owner segmentORIGIN:1952: The Company was incorporated in the name of Standard Vacuum Refining Company of India Limited on July 5, 19521962: On 31st March, 1962 the name was changed to ESSO Standard Refining Company of India Limited.1974: Hindustan Petroleum Corporation Limited comes into being after the takeover and merger of erstwhile Esso Standard and Lube India Limited1976: Caltex Oil Refining (India) Ltd. - CORIL is taken over by the Government of India with an Ordinance in 1976, subsequently ratified by an Act in 1977 and merged with HPCL in 1978.1979: Kosan Gas Company, the concessionaries of HPCL in the domestic LPG market, are taken over and merged with HPCL.Products &Services Offered:Refinery: HPCL has two Refineries with 10% of the nation‟s refining capacity located in Mumbai (West Coast) and Visakhapatnam (East Coast) with capacities of 6.5 MMTPA and 7.5 MMTPA respectively complying with the international quality standard and operated there capacity utilization above 100%. HPCL also holds an equity stake of 16.95% in Mangalore Refinery & Petrochemicals Limited (MRPL), a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. Mumbai Refinery is the largest Lube based refinery in India which amounts to 40% of the national capacity of Lube Oil production. The offsite product handling facilities of Refineries at Mumbai and Visakhapatnam has been automated and facilities upgraded to produce green fuels like unleaded petrol and low sulphur diesel.Noble School of Business 14
  • 15. Marketing strategy for lubricants among Fleet owner segment Refinery Performance (Last 5 years)The refineries crude oil production capacity in MMTPA is shown in the CrudeThroughput in MMTPA 18 16.66 16.77 15.8 15.76 16 13.82 14 12 10 9.24 9.41 9.15 8.79 7.57 7.42 7.36 8 6.65 6.97 6.25 6 4 2 0 2005-06 2006-07 2007-08 2008-09 2009-10 MUMBAI REFINERY Series2 Series3 Hindustan Aviation: Hindustan Petroleum (as Esso and Caltex prior to 1974) has been providing aviation refueling (Aviation Turbine Fuel – ATF) services at various airports in India for more than a century through 31 Aviation Services Facilities. Bulk fuelling: The Bulk Fuel & Specialties Business unit caters to marketing of Bulk fuels & petroleum products directly to Industrial consumers like power plants, chemicals, fertilizers, shipping companies and airlines. Noble School of Business 15
  • 16. Marketing strategy for lubricants among Fleet owner segmentINTERNATIONAL TRADE Crude Oil Imports: The crude oil requirement of two refineries is met partly by Indigenous crude and balance through imports. Imported crude oil requirement for our refineries is both sweet and sour grades, with latter for Mumbai refinery being Lube bearing. The crude oil import for HPCL‟s refineries is approx. 220 thousand barrels per day (11.0 million tons per annum). The requirement is partly met thru term contracts with National Oil Companies and the balance through spot procurement by tendering process.Petroleum Product Imports: HPCL imports products for meeting domestic market requirement. The products being imported by HPCL are: LPG, Kerosene, Gas Oil, Gasoline, and Low Sulphur Fuel Oil. Imports are finalized by tendering. Details regarding cargo size, product quality, discharge port etc. are covered in the specific tenders. Parties registered with HPCL only can participate in these tenders.Petroleum Products Exports: HPCL exports products and intermediate streams from its refineries. The products being exported by HPCL are: Fuel Oil, High Sculpture Gas Oil, Naphtha, Packed Bitumen, food grade Hexane, Lube Oil base stock. The exports are finalized by tendering. Only parties registered with HPCL can participate in these tenders. Details regarding cargo size, product quality, load port etc. are detailed in the specific tenders.Noble School of Business 16
  • 17. Marketing strategy for lubricants among Fleet owner segmentHP Gas: Hp gas, the HPCL brand of LPG which is bottled at 43 LPG Bottling plants throughout the country. Its total capacity is over 2500 thousand metric tons per annum (TMTPA). HP Gas conforms to IS: 4576-1999 specifications.WORLD LUBE MARKET:India - fifth largest in world INDIA BRAZIL RUSSIA 4% 3% JAPAN 4% 5% CHINA 12% OTHERS 52% USA 20% Global lubricant demand is forecast to reach 40.5 million metric tons in 2012. Gains will be strongest in the Asia/Pacific, Africa/Mideast and Latin American regions due to ongoing rapid industrialization and rising car ownership rates. Engine oils will remain the largest segment while process oils grow the fastest. According to data of 2009 United States of America leads the World Lube Market with around 25% of the total market share. India is the fifth position after Russia.Noble School of Business 17
  • 18. Marketing strategy for lubricants among Fleet owner segment Demand of lubricants is illustrated as shown below: INDIA, 3% ASIA, 25% WORLD, 72% WORLD – 38000 TMT, ASIA – 9500 TMT, INDIA – 1250 TMTDemand in Asia alone accounts to 28% of the total demand and thus the market ishighly lucrative and profitable.Leading Lube Market:Market size is 500 TMTPA and the splitting among the companies isshown in graph below. 160 130 110 50 40 10 IOCL HPCL BP/CASTROL BPCL IBP OTHERSNoble School of Business 18
  • 19. Marketing strategy for lubricants among Fleet owner segmentCOMPETITORS BASTION RAILWAYS OTHERS 2% DEFENCE 3% OE FILL/ SERVICE FILL 1% 5% BAZZAR SALES 18% CORE SECTOR 52% RETAIL OUTLETS 19% HPCL OTHERS DEFENCE 10% OE FILL/ SERVICE FILL 3% 3% RAILWAYS 4% CORE SECTOR BAZZAR SALES 44% 14% RETAIL OUTLETS IOCL 22%Noble School of Business 19
  • 20. Marketing strategy for lubricants among Fleet owner segment OTHERS 3% DEFENCE RAILWAYS 1% 6% OE FILL/ SERVICE FILL CORE 12% SECTOR 19% BAZZAR SALES RETAIL 21% OUTLETS 38% BPCL OTHERS 2% CORE SECTOR 3% OE FILL/ SERVICE FILL 15% BAZZAR SALES 80% CASTROLNoble School of Business 20
  • 21. Marketing strategy for lubricants among Fleet owner segmentMarket Future Drives:  Base oil requirement shift from group 1 to group 2/3  India – the future hub for automotive industry. o 3rd largest car market. o Passenger vehicle segment recorded 35% growth. o The overall Indian automobile industry recorded increase of 30% in May 2010 @ 1,208,851 units as compared to 929,917 units in May 2009.  India moving to BS 2/ BS 4- call for long drain and fuel economy based Engine, Gear & Hydraulic oils.  GDP growth at 7.4% - so focus should be on the cross sector such as power, steel, mining and construction industry.  Global level business understanding & trend analysis.HPCL RETAIL:  At HPCL retail outlets believe in maintenance, not just vehicle but also having a steady relationship with the consumers and provide better and efficient value added services.  Keep stock related products like tires, batteries and accessories.HPCL CARDSDEBIT CARDS:Swipe HPCL_ICICI bank debit card on an terminal only and save surcharge on yourfuel purchases i.e. a waiver of 2.5% transaction.Noble School of Business 21
  • 22. Marketing strategy for lubricants among Fleet owner segmentHP DRIVE TRACK:Drive track fleet card is a prepaid (debit) card with e-purse cum loyalty application forfleet operation (mainly highly segment).CERDIT CARD:  HPCL, Axis Bank and Shriram Transport Finance Company (STFC) have come together to launch tripartite co-branded credit card.  By using this card incur the 2.5 per cent surcharge attracted on normal credit cards.I-MINT:I-mint is India‟s first multi-partner rewards program on point system having partnerslike HPCL, Air India, ICICI Bank (credit cars/debit card), Makemytrip.com, planetfashion, Gitanjali, bookmyshow.com, ferns petals and many more.CLUB HP:  It is a high quality personalized “ Vehicle and consumer Care”  A part of HPCL‟s strategic retail marketing initiative different from traditional fuel retailing is done through select set outlets.  “Club HP” concept aims to provide the assurance of “quick fills” “Expert, personalized Service” ,”Total Vehicle Management”, and “Consumer Conveniences”Noble School of Business 22
  • 23. Marketing strategy for lubricants among Fleet owner segmentJOINT VENTURE:  Crude Refining and Marketing of finished petroleum products is the core area of the corporation and opportunities are also being explored to accesses new revenue streams, and augment downstream businesses.  Accordingly, HPCL has ventured in upstream activities (Exploration and production) and piped gas distribution in major cities.  Some of the joint ventures are with companies like HPCL-Mittal Energy Ltd.(HMEL), Hindustan Colas (HINCOL), Prize Petroleum company limited , south Asia LPG co Pvt Ltd .( SALPG), Bhagyanagar Gas Limited (BGL), Aavanitika Gas Limited , Petro net India Limited (PIL), Petro net MHB Limited (PMHBL),Mangalore Refineries and petrochemicals Limited (MRPL), CREDA-HPCL Bio-fuel Limited (CHBL), Sushrut Hospital and Research centre.HP LUBES:  HP Lubes is an integrated part of Hindustan petroleum corporation limited, one of the India‟s frontline oil majors, committed to providing energy and fueling growth in every significant area of development.  Various grades of HP Lubes Lubricating Oils and Greases have been classified below based on their end use. LUBES INDUSTRIAL AUTOMOTIVES INDUSTRIAL GREASES SPECIALITIESNoble School of Business 23
  • 24. Marketing strategy for lubricants among Fleet owner segment  HP Lubricants are borne out of an intense and unrelenting R&D effort, which aims at producing quality products that enhance automotive performance standards.  The range of HP Lubes is comprehensive and catering to the minutest needs, from new generation cars to plough tractors and industrial machinery.  The range conforms strictly to OEM specifications, often taking the initiative in customization of products.Noble School of Business 24
  • 25. Marketing strategy for lubricants among Fleet owner segment • TURBINE OIL • BEARING OIL • COMPRESSOR OIL • SPINDLE OIL INDUSTRIAL • OPEN GEAR OIL GRADS • STEAM CYLINDER OIL • PNEUMATIC TOOL OIL • SUGAR MILL ROLL Beraing OIL • GEAR BOX OIL • HYDROULIC OIL • DEFENSIVE GREASES • INDUSTRIAL • ENGINE OIL • TRANSMISSION OIL AUTOMOTIVE • GEAR OIL • AUTO SPECIALITIES • DEFENCE GRADE • METAL CUTTING FLUID • METAL ROLLING OILS INDUSTRIAL • QUENCHING OILS SPECIALIST • RUBBER PROCESS OIL GRADE • RUST PREVENTIVE • HEAT TRANSFER FLUID • METAL DRAWING COMPOUNDNoble School of Business 25
  • 26. Marketing strategy for lubricants among Fleet owner segmentCOMPANY’S IDEOLOGYCOMPANY’S MISSION:  HPCL, along with its joint ventures, will be fully integrated company in the hydrocarbons sector of exploration and production, refining and marketing, focusing on enhancement of productivity, quality and profitability, caring for customers and employees caring for environment protection and cultural heritage.  It will also attain scale dimensions by diversifying into other energy related fields and by taking up transnational operations.COMPANY’S VISION:  To be a world class energy company known for caring and delighting the customers with quality products and innovative services across domestic and international markets with aggressive growth and delivering superior financial performance.  The company will be a model of excellence in meeting social commitment, environment, health and safety norms and in employee welfare and relations.INFRASTRUCTURE:  HPCL‟s infrastructure is at par with that of the best global corporations in the hydrocarbons sector.  For over a quarter century now , HPCL has been consistently breaking new grounds in production and marketing.  A glimpse of the vast marketing network already developed is given below in the table.Noble School of Business 26
  • 27. Marketing strategy for lubricants among Fleet owner segmentMarketing network: 2008- 2007- 2006- 2005- 2004- 09 08 07 06 05Regional office 90 91 86 85 85Terminal/Installations/Tops 42 42 37 36 36Deposits 100 93 93 92 100LPG Bottling Plants 43 43 42 41 40ASF’s 21 16 13 13 10Retail Outlets 8539 8329 7909 7313 6667SKO/LDO Dealers 1638 1648 1648 1648 1648LPG Distributors 2250 2232 2238 2202 2153LPG Customers(in cores) 2.698 2.52 2.39 2.28 2.17The strengthening of the marketing network over the years has lead to dominance inthe market reflected in its growth and leading to best quality of service.HPCL was one of the first companies to understand the nation‟s energy requirementsand take necessary measures to fulfill the expectations. Its increasing infrastructurefacilities are due to the successful realization of set targets and sustained quality ofservice and customer relations.HPCL presently owns and operates two coastal refineries at Mumbai andVishakhapatnam along with a joint refinery at Mangalore. Another refinery of 9MMTPA is under construction in bhatinda, Punjab by HMEL, a joint venture withMittal Energy Investment Pvt Ltd. A massive infrastructure comprising two crosscountry pipelines and an extensive network of terminals, deposits, LPG BottlingPlants, Lube Filling Plants and Aviation Service Facilities (ASF) contributes t oIndia‟s growth every year.Noble School of Business 27
  • 28. Marketing strategy for lubricants among Fleet owner segmentVAST MARKETING NETWORK:  4 Zonal Offices  34 Zonal Offices( including 10 LPG Regional Offices)  22 terminals  31 LPG Bottling Plants  9 Aviation Service Stations  4 Lube blending plants & a lube pipeline for base oil evacuation from the refinery  90 Inland relay depots  4327 Retail outlets  1622 SKO/LDO dealerships  1463 LTG distributorshipIn addition to the above, two pipelines i.e. the 161 long kms long Mumbai-Puneproduct, pipeline of 3.67 MMTPA capacity and the recently commissioned 350 kmslong Vishakhapatnam- Vijayawada pipeline of 4.1 MMTPA capacity, are used fortransportation of MS, SKO, HSD and LDO.Noble School of Business 28
  • 29. Marketing strategy for lubricants among Fleet owner segmentRESEARCH DESIGNA research design is the plan, structure and strategy of investigation conceived so it isobtain answer to research questions and to control variance. Exploratory research isconcerned into discovering the general nature of the problem and variables that relateto it.Research design is needed because it facilitates the smooth sailing of the variousresearch operations, thereby making research as efficient as possible yieldingmaximal information with minimal expenditure of effort, time and money. Just as forbetter, economical and attractive construction of house, we need a blue print wellthroughout and prepared by an expert architect, similarly we need a research design orplan in advance of data collection and analysis for our research design or plan inadvance of data collection and analysis for our research project. Research designstands for advance planning of the methods to be adopted for collecting the relevantdata and the techniques to be used in their analysis, keeping in view the objective ofthe research and availability of time and money.TITLE OF THE PROJECT:A STUDY ON “MARKETING STRATEGY FOR LUBRICANTSAMONG FLEET OWNER SEGMENT”OBJECTIVES OF THE STUDY: To know the marketing strategy for lubricants among fleet owner segment. To know the perception of Fleet owners about HPCL lubes. To create brand awareness and to build brand image of HPCL among the Fleet owners. To know the buying behavior of lubricants among a Fleet owner segment. To know the taste and preference of the Fleet owners. To know the Fleet owners expectation towards the Lubricants.Noble School of Business 29
  • 30. Marketing strategy for lubricants among Fleet owner segmentWHAT IS THE STUDY ABOUT?The study is an attempt to To know the marketing strategy for lubricants among a fleet owner segment. To know the buying behavior of lubricants among the fleet owners. To know the strategies of fleet owners for buying the lubricants.This study shall conclude with few strategies recommended to uplift the sales figure.It is done in Bangalore.This study shall make use of primary data which is collected through custom madequestionnaire.TIME PERIOD:The study was done from the period of 2nd January 2011 to 12th march 2011.SAMPLE DESIGN:Relational of sampling:  This study is done under the HPCL Direct sales regional office, K.R.Puram, Bangalore.  The main target groups of the study are the FLEET owner segment.This study is thus done in the regional area under the Bangalore office. Fleet ownersare the main carrier of lubes in market. They are the best to know about the marketdynamics. Fleet owner are main in deciding the lubes for their vehicles.SAMPLE SIZE:Sample size consists of total of 50 Fleet Owners.Noble School of Business 30
  • 31. Marketing strategy for lubricants among Fleet owner segmentMETHOD OF SAMPLING:The method used for sampling is a Non Random Sampling Method – JudgmentSampling, the sample was suggested and approved by the executive sales officerHPCL office Bangalore.SAMPLE CATEGORIZATION: STRUCTURED SURVEY USING FORMATTED QUESTIONNAIREFLEET OWNERS: A fleet owner is a person who has got control over a number of buses, aircrafts etc. Fleet owner are decision makers for buying the lubricants. Focus was on the Fleet owners segment because they can give us the clear picture of how they by the lubricants and what‟s the preference for buying the lubricants and the strategies they adopt to buy the lubricants.PROBLEM IDENTIFICATION: To understand the market stand of HP lubricants, To understand the Fleet owner‟s view towards lubricants. To find out what can be the solution to improve sales.SCOPE OF THE STUDY: The study will be done with the aim of getting acquainted with the functioning of the company. One of the major scopes of the study was to get an exposure to the working environment of the company.Noble School of Business 31
  • 32. Marketing strategy for lubricants among Fleet owner segmentMETHOD OF DATA COLLECTION:  The Source of the data in this project was collected on a primary basis. Analysis and interpretation was also made on the basis of primary data collected.  Questionnaire method has been used to elite response from the respondents. The questionnaire has been prepared keeping in mind the Ares specified by the marketing and sales department.  Secondary data was collected from news papers, company websites and other general publications. For capturing the secondary data few of the data collection instruments were used. E.g. HPCL journals, magazines, etc  The questionnaire has been designed for the Fleet Owners to know the marketing strategies for lubricants among the fleet owner segment i.e. the buying behavior of lubricants among the fleet owners.  This questionnaire consists of 17 queries.  Questions are combination of open ended and closed ended questions. Secondary data related to this topic is obtained through Internet and books. For details please refer the bibliography.SPECIFIC RESEARCH TECHNIQUE USED:The main objective of this project is to study about marketing strategies for lubricantsamong a Fleet owner segment, so exploratory and descriptive research is mainly used.a. EXPLORATORY RESEARCH:This study aimed to gain familiarity with problem and to generate ideas to formulatethe problem. A survey was conducted among few Fleet owners to know the actualproblem and then a final questionnaire was prepared.Noble School of Business 32
  • 33. Marketing strategy for lubricants among Fleet owner segmentb. DESCRIPTIVE RESEARCH:Descriptive research gives more insight into particular problem. Descriptive researchwas used for this study to understand the marketing strategies adopted by thecompany in Bangalore region. It also provides a clear insight into the perception ofpeople towards HPCL lubes.METHOD OF ANALYSIS:  Question to Fleet owners are mostly open-ended and are analyses by quantifying them with pie charts and other graphical representations.  A simple method of analysis has been used .Each question has been evaluated with the help of tables and graphs expressed in percentage terms.  Likert scale is being used where necessary.  The number of responses is written in absolute terms.LIMATATAION OF THE STUDY: HPCL lubes are sold all over India but the study was limited to the Bangalore only. The complete access to some of the information of the company was not available due to confidentiality. Non-cooperation and personal bias made it difficult to get the specific answer. Few of the Fleet owners were not interested in giving their response.Noble School of Business 33
  • 34. Marketing strategy for lubricants among Fleet owner segment TABLE 1: TABLE SHOWING LUBRICANT CURRENTLY USED BY THE FLEET OWNERS.Sl No Companies Respondents Percentage 01 CASTROL 25 50% 02 SERVO 06 12% 03 GULF 03 6% 04 HPCL 09 18% 05 BALMOROL 01 2% 06 ELF 02 4% 07 VEEDOL 01 2% 08 SHELL 03 6% ANALYSIS: 50% of the respondents choose Castrol. 12% of the respondents choose Servo. 6% of the respondents choose Gulf. 18% of the respondents choose HPCL. 2% of respondents choose Balmoral. 4% of respondents choose Elf. 2% of respondents choose Veedol. 6% of respondents choose Shell. INFERENCE: Major of the fleet owners according to the survey preferred Castrol lubricants. HP lubricants stand in the 2nd position as per the survey. Noble School of Business 34
  • 35. Marketing strategy for lubricants among Fleet owner segmentGRAPH 1:CHART SHOWING, THE LUBRICANT CURRENTLY USED BYTHE FLEET OWNERS. Sales VEEDOL ELF 2% 4% SHELL BALMAROL 6% 2% HPCL 18% CASTROL 50% GULF 6% SERVO 12%Noble School of Business 35
  • 36. Marketing strategy for lubricants among Fleet owner segmentTABLE 2:TABLE SHOWING QUANTITY OF LUBES USED DAILYQuantity 0-10 lt. 10-20 lt. 20-35 lt. >50 lt.(Lt’s)Frequency 29 11 8 2(No. ofrespondents)ANALYSIS: 68% of the fleet owners use 0-10 liters of lubes daily as per the survey. 22% of the fleet owners use 10-20 liters of lubes daily as per the survey. 16 % of the fleet owners use 20-35 liters of lubes daily as per the survey. 4% of the fleet owners use more than 50 liters of lubes daily as per the survey.INFERENCE: Major of the Fleet owners use 0-10 liters of lubes for their vehicles as per the survey.Noble School of Business 36
  • 37. Marketing strategy for lubricants among Fleet owner segmentGRAPH: 2CHART SHOWING QUANTITY OF LUBES USED DAILY. 35 30 25 Frequency 20 15 10 5 0 0-10 lt. 10-20 lt. 20-35 lt. >50 lt. QuantityNoble School of Business 37
  • 38. Marketing strategy for lubricants among Fleet owner segment TABLE: 3 CHART SHOWING FROM WHOM THEY PURCHASE LUBRICANTSDISTRIBUTORS DEALERS COMPANY RETAILERS SALES PERSON 7 28 8 7 ANALYSIS: 14% of the Fleet owners buy their lubes from the Distributors. 56% of the Fleet owners buy their lubes from the dealers. 16% of the Fleet owners buy their lubes from the company sales persons. 14% of the Fleet owners buy their lubes from the retailers INFERENCE: Major of the Fleet owners buy their lubricants from the Dealers Company salespersons stands in the 2nd position as per the survey Distributors stand in the third position as per the survey. Noble School of Business 38
  • 39. Marketing strategy for lubricants among Fleet owner segmentGRAPH: 3CHART SHOWING FROM WHOM THEY PURCHASELUBRICANTS. FROM WHOM THEY PURCHASE 30 25 20 15 10 5 0 DISTRIBUTOR DEALER COMPANY RETAILERS SALES PERSONNoble School of Business 39
  • 40. Marketing strategy for lubricants among Fleet owner segmentTABLE: 4TABLE SHOWING HOW OFTEN THEY BUY LUBRICANT PACK. REGULAR ONCE IN ONCE IN ONCE IN A WEEK TWO WEEKS MONTH 11 10 5 24ANALYSIS: 22% of the Fleet owners buy the lubes regularly as per the survey. 20% of the Fleet owners buy the lubes once in a week as per the survey. 10% of the Fleet owners buy the lubes once in two weeks as per the survey. 48% of the Fleet owners buy ht lubes once in a month as per the survey.INFERENCE: Major of the Fleet owners buy the lubes once in a month as per the survey. Regular purchase of lubes stands in the second position as per the survey.Noble School of Business 40
  • 41. Marketing strategy for lubricants among Fleet owner segmentGRAPH: 4CHART SHOWING HOW OFTEN THEY BUY LUBRICANT PACK. purchase 25 20 15 10 5 0 REGULAR ONCE IN A ONCE IN TWO ONCE IN A WEEK WEEKS MONTHNoble School of Business 41
  • 42. Marketing strategy for lubricants among Fleet owner segmentTABLE: 5(1)TABLE SHOWING ATTRIBUTE WHEN SELECTING ALUBRICANT.1: BRAND NAME RATING 5 4 3 2 1 NO. OF 30 14 06 00 00 RESPONDENTSANALYSIS: 60% of the Fleet owners gave 5 rating for the brand name. 24% of the Fleet owners gave 4 rating for the brand name. 12% of the Fleet owners gave 3 rating for the brand name.INFERENCE: 60% of the Fleet owners gave more rating and preference for the brand name.Noble School of Business 42
  • 43. Marketing strategy for lubricants among Fleet owner segmentGRAPH: 5 (1)CHART SHOWING ATTRIBUTES TOWARDS “BRAND NAME”OFLUBRICANTS. BRAND NAME 30 30 25 20 15 14 10 6 5 0 0 0 5 4 3 2 1Noble School of Business 43
  • 44. Marketing strategy for lubricants among Fleet owner segmentTABLE: 5(2)TABLE SHOWING ATTRIBUTES TOWARDS “QUALITY” OFLUBRICANTS.2: QUALITY RATING 5 4 3 2 1 NO. OF 41 07 02 00 00 RESPONDENTSANALYSIS: 82% of the Fleet owners gave 5 rating to the Quality. 14% of the Fleet owners gave 4 rating for the quality. 4% of the Fleet owners gave 3 rating for the quality.INFERENCE: 82% of the Fleet owners gave more rating and preference for the quality.Noble School of Business 44
  • 45. Marketing strategy for lubricants among Fleet owner segmentGRAPH: 5(2)CHART SHOWING ATTRIBUTES TOWARDS “QUALITY” OFLUBRICANTS. QUALITY 50 40 30 20 10 0 5 4 3 2 1Noble School of Business 45
  • 46. Marketing strategy for lubricants among Fleet owner segmentTABLE: 5(3)SHOWING ATTRIBUTES TOWARDS “PRICE” OF LUBRICANTS.RATING 5 4 3 2 1NO. OF 5 11 25 9 00RESPONDENTSANALYSIS: 10% of the Fleet owners gave 5 rating for the price as per survey. 22% of the Fleet owners gave 4 rating for the price as per survey. 50% of the Fleet owners gave 3 rating for the price as per survey.INFERENCE: Only 10% of the Fleet owners give preference to the price of the lubricants as per the survey.Noble School of Business 46
  • 47. Marketing strategy for lubricants among Fleet owner segmentGRAPH: 5(3)CHART SHOWING ATTRIBUTES TOWARDS “PRICE” OFLUBRICANTS PRICE 1 2 RATING 3 4 5 0 5 10 15 20 25 NO. OF RESPONDENTSNoble School of Business 47
  • 48. Marketing strategy for lubricants among Fleet owner segmentTABLE: 6SHOWING HAVE YOU CHANGED THE BRAND OF LUBE USEDIN PAST ONE YEAR. YES NO 08 42ANALYSIS: 16% of the Fleet owners have switched to other lubricants as per the survey. 84% of the Fleet owners have not switched from the lubricants as per the surveyINFERENCE: 84% of the Fleet owners are HARDCORE LOYALS. Hardcore loyal are loyal to one particular type of products and they are satisfied with that product.Noble School of Business 48
  • 49. Marketing strategy for lubricants among Fleet owner segmentGRAPH: 6CHART SHOWING HAVE YOU CHANGED THE BRAND OF LUBEUSED IN PAST ONE YEAR. YES 16% NO 84%Noble School of Business 49
  • 50. Marketing strategy for lubricants among Fleet owner segmentTABLE: 7SHOWING HOW IS THE SUPPLY OF LUBES TO YOU. GOOD AVERAGE BAD 41 09 00ANALYSIS: 82% of the supply of lubes to Fleet owners is GOOD as per the survey. 18% of the supply of lubes to Fleet owners is AVERAGE as per the survey.INFERENCE: Nearly 82% of the lubes supply to Fleet owners is GOOD as per the survey.Noble School of Business 50
  • 51. Marketing strategy for lubricants among Fleet owner segmentGRAPH: 7CHART SHOWING THE SUPPLY OF LUBES SUPPLY OF LUBES 45 40 NO OF RESPONDENTS 35 30 25 20 15 10 5 0 GOOD AVERAGE BADNoble School of Business 51
  • 52. Marketing strategy for lubricants among Fleet owner segmentTABLE: 8SHOWING SIZE OF LUBRICANTS PACK THEY BUY. 5 lt. 10lt. 50lt. Barrel 11 8 3 28ANALYSIS: 56% of the Fleet owners buy lubricants in barrel as per the survey. 22% of the Fleet owners buy lubricants in 5 liter packs as per the survey. 16% of the Fleet owners buy lubricants in 10 liter packs as per the survey.INFERENCE: Major of the Fleet owners buy the lubricants in barrels. 5 liters lubricants pack stands in 2nd position as per the survey. 10liters lubes pack stands in 3rd position followed by 50 liters pack as per the survey.Noble School of Business 52
  • 53. Marketing strategy for lubricants among Fleet owner segmentGRAPH: 8CHART SHOWING THE SIZE OF LUBRICANTS THEY BUY. size of lubricants they buy 5 lt. 22% Barrel 56% 10 lt. 16% 50 lt. 6%Noble School of Business 53
  • 54. Marketing strategy for lubricants among Fleet owner segmentTABLE: 9SHOWING STOCK THEY KEEP AT A POINT OF TIME. No stock 20-50 50-150 150-200 >200 11 5 10 8 16ANALYSIS: 32% of the Fleet owners keep stock more than 200 liters at a point of time. 22% of the Fleet owners keep NO stock at a point of time. 20% of the Fleet owners keep 50-150liters of stock at a point of time. 16% of the Fleet owners keep 150-200liters of Stock at a point of time. 10% of the Fleet owners keep 20-50liters of the stock at a point of timeINFERENCE: If the vehicles are more than the Fleet owner will keep more stock at a point of time. Major of the Fleet owners keep stock more than 200 liters as per the survey.Noble School of Business 54
  • 55. Marketing strategy for lubricants among Fleet owner segmentGRAPH: 9CHART SHOWING STOCK THEY KEEP AT A POINT OF TIME. STOCK LEVEL AT A POINT OF TIME >200 150-200 50-150 20-50 No stock 0 2 4 6 8 10 12 14 16 18Noble School of Business 55
  • 56. Marketing strategy for lubricants among Fleet owner segmentTABLE: 10SHOWING WOULD YOU LIKE TO USE HPCL PRODUCTS ATCOMPLETIVE RATES? YES NO 15 35ANALYSIS: 70% of the Fleet owners are Hardcore loyal. 30% of the Fleet owners are soft core loyal.INFERENCE: Major of the Fleet owners are hardcore loyal, hence they won‟t like to switch from one lube to other. 70% of the Fleet owners are not interested to switch their lubricant brand.Noble School of Business 56
  • 57. Marketing strategy for lubricants among Fleet owner segmentGRAPH: 10CHART SHOWING WOULD YOU LIKE TO USE HPCL PRODUCTSAT COMPLETIVE RATES? 35 30 25 20 35 15 10 15 5 0 YES NONoble School of Business 57
  • 58. Marketing strategy for lubricants among Fleet owner segmentTABLE: 11SHOWINGS ARE YOU AWARE OF HPCL PRODUCTS. YES NO 13 37ANALYSIS: 74% of the Fleet owners are not aware of the HP lubricants as per the survey. 26% of the Fleet owners are aware of the lubricants of HP as per the survey.INFERENCE: Major of the Fleet owners are not aware of HP products. 74% OF The Fleet owners are aware of the HP products hence the awareness of the products of HP to Fleet owners are necessaryNoble School of Business 58
  • 59. Marketing strategy for lubricants among Fleet owner segmentGRAPH: 11CHART SHOWINGS ARE YOU AWARE OF HPCL PRODUCTS. 37 NO 13 YES 0 5 10 15 20 25 30 35 40Noble School of Business 59
  • 60. Marketing strategy for lubricants among Fleet owner segmentFINDINGS: The study was conducted on “Marketing strategy for lubricants among Fleetowner segment” by distributing the questionnaire to the Fleet owners and the analysiswas done. Following are the main findings from the survey conducted. 1. Brand image plays an important role in fleet owner‟s buying decision. 2. Some fleet owner‟s had common complaints that no HPCL sales persons had visited them. 3. Fleet owners care for their vehicles so much that they give full importance to quality and relatively lower preference to price. 4. It is found that only 26% of the Fleet owners are aware of HPCL lubricants. 5. It is found that 70% of the Fleet owners are not interested to switch their brand of lubricants. 6. As per the survey, major of the Fleet owners are using lubricants of Castrol, followed by HPCL. 7. It was found that 68% of the fleet owners use 0-10 liters of lubes daily as per the survey. 8. It was found that 56% of the Fleet owners buy their lubes from the dealers 9. It was found that 48% of the Fleet owners buy lubes once in a month as per the survey. 10. It is found that 82% of the Fleet owners gave 5 rating to the Quality as per the survey. 11. It is found that 84% of the Fleet owners have not switched from the lubricants as per the survey. 12. It was found that only 16% of the Fleet owners have switched their brand of lubricants from past one year. 13. It was found that 82% of the supply of lubes to Fleet owners is GOOD as per the survey.Noble School of Business 60
  • 61. Marketing strategy for lubricants among Fleet owner segment 14. It was found 56% of the Fleet owners buy lubricants in barrel as per the survey. 15. It was found that 32% of the Fleet owners keep stock more than 200 liters at a point of time. 16. Fleet owners were not ready to revel there business secretes. 17. Fleet owners afraid to switch the lubricant because it may affect the vehicle as their perception.Noble School of Business 61
  • 62. Marketing strategy for lubricants among Fleet owner segmentSUGGESTION’S:During the course of my project, I have been able to identify some of the factorswhich need to be considered for the further upliftment and progress of the company.  Create awareness about HPCL lubes for Fleet owners by conducting Lube seminars Update Fleet owners on new brands/ Technology.  The quality of products is currently satisfied but still the company has to look to increase in kilometers in the motors.  Very few of the HPCL products are intensively promoted; where as other products are not equally promoted. Thus focus should be on products equally.  The company executives have to meet the Fleet owners and present them a small presentation about the HPCL lubes and products.  Gift coupons should be given to the customers and Fleet owners regularly. This motives them to buy the products.  HPCL has to create a free oil change camp or free service campaign.  Brand awareness like; display boards, advertising, should be eye catching, so that they can draw the attention of the customers and the Fleet owners.  As the price is pretty less as compared to other competitors, this made a negative perception in the mind of customers. They dubbed the products as an inferior quality product. So HPCL should promote both (high priced and low priced product) simultaneously.  HPCL must try and increase Fleet owner‟s satisfaction by providing them with better schemes.  HPCL should adopt different strategies in different market area according to their demand and buying pattern.  More than the schemes and offers fleet owners expect a higher credit period from the distributors. If the company could provide it, the fleet owner would be more happy and stock more HPCL products.  HPCL has to concentrate more on increasing their brand awareness.Noble School of Business 62
  • 63. Marketing strategy for lubricants among Fleet owner segmentCONCLUSION: The Indian lubricants industry is currently crowded with lot of playersand few more players are expected to enter the market. All players are fighting hard toget a maximum share in which even 1% means 55 cross sales. So the main weapon ofall players is effective marketing strategy. HPCL has adopted many marketingstrategy and create awareness to capture the market level but still it is not able tocome in the top brands in country in the lubricant segment. The main factor that influences purchasing decision of all fleet owner‟sand consumers is the quality and the brand name of a product. Castrol has beensuccessful in doing that by going all out in advertisements. HPCL now has a goodawareness with the fleet owner but still they are hesitant to go ahead with the brand ina big way. The main reason for this being is lack of customer demand awareness.More than gifts the dealers are expecting good support from the fleet owners, expectgood relationship with the company and some price discounts. It can be conclude by saying that if HPCL goes on with promotionalactivities at local level and have a good relationship with the Fleet owners and providethem with adequate support it can capture a huge portion of market. So HPCL mustconcentrate on building a huge brand for product which will serve as best marketingtool for lot many years to come. It can be conclude by saying that if HPCL goes on with promotionalactivities at local level and have a good relationship with the fleet owner providingthem with support it can capture a huge portion of market. So HPCL must concentrateit building a huge brand for its product which will serve as the best marketing tool forlot many years to come.Noble School of Business 63
  • 64. Marketing strategy for lubricants among Fleet owner segment BIBLIOGRAPHY 1. BOOKS:  Marketing Management - ICFAI - PHLIP KOTLAR  Modern Marketing - R.S.N.PILLAI BAGAVAT  Research Design - Tata McGraw-Hill publications 2. NEWS PAPER REFFERED: Ramesh, Kumar. “HPCL lubricants can capture 30% market share.” Business Line 3. ARTICLES: - Mittal may buy HPCL refinery stakeNoble School of Business 64
  • 65. Marketing strategy for lubricants among Fleet owner segment 4. WEB SITES:  http://www.google.com  http://www.en.wikipedia.org  http://www.myhpcl.com  http://www.catrol.com  http://www.bpcl.com  http://www.shell.com  http://www.indialubes.com  http://www.hpcl.comNoble School of Business 65
  • 66. Marketing strategy for lubricants among Fleet owner segment STUDY ON MARKETING STRATEGY FOR LUBRICANTS AMONG FLEET OWNER SEGMENT. NOBLE SCHOOL OF BUSINESS, BANGALORE QUESTIONNAIRE FOR FLEET OWNERSDear Sir/Madam,I am a VI B.B.M. student representing NSB-BANGALORE. I am doing my projectas a part of course in HPCL Regional office, Bangalore under Mr.Gyan Prakash,Executive sales officer. I am assigned a project on “MARKETING STRATEGYFOR LUBRICANTS AMONG FLEET OWNER SEGMENT”. I will be obliged ifyou spare your time to fill up this questionnaire. 1. Name: 2. Address: 3. Choose the lubricant that you are currently using [ ] HPCL [ ] Valvoline [ ] Veedol [ ] Pennzoil [ ] Castrol [ ] Shell [ ] Servo [ ] Elf [ ] MAK [ ] Any other specify ________________________________________________ 4. Name the product brand you useNoble School of Business 66
  • 67. Marketing strategy for lubricants among Fleet owner segment 5. Quantity of lubes used daily [ ] 0-10 liters [ ] 10-20 liters [ ] 20-35 liters [ ] 35-50 liters [ ] more than 50 liters 6. From whom do you purchase this lubricant pack? [ ] Distributors [ ] Dealers [ ] Company‟s salesperson 7. What is the size of the lubricant pack that you frequently buy? [ ] 5liters [ ] 10liters [ ] 20liters [ ] barrel [ ] Any other specify___________________ 8. How often do you purchase this lubricant pack? [ ] Once in a week [ ] Once in two weeks [ ] Once every month 9. Rate the importance of the following attributes when selecting a lubricant  Brand name: Very high 5___ 4___ 3___ 2___ 1___ Very low  Quality: Very high 5___ 4___ 3___ 2___ 1___ Very low  Price: Very high 5___ 4___ 3___ 2___ 1___ Very low  Credit: Very high 5___ 4___ 3___ 2___ 1___ Very low  If any other, specify_________________________________ 10. Have you come across promotional programs like trainings, workshop meets, new product launch etc, of any of the below listed lubricant companies.Noble School of Business 67
  • 68. Marketing strategy for lubricants among Fleet owner segment [ ] HPCL [ ] Valvoline [ ] Veedol [ ] Pennzoil [ ] Castrol [ ]Shell [ ] servo [ ] Elf [ ] MAK [ ] Any other specify ______________________________________________________________11. What do you expect from a lubricant company? Most preferred _____________________ least preferred  Certificate training programs: 5___ 4___ 3___ 2___ 1___  To help in business growth: 5___ 4___ 3___ 2___ 1___  Brand association (Paintings and display boards) 5___ 4___ 3___ 2___ 1___  Educational needs for family 5___ 4___ 3___ 2___ 1___  Health related needs(insurance): 5___ 4___ 3___ 2___ 1___  Specify your other wants:______________________________ 12. Have you come across representative of any of these lubricants companies in the past six months [ ] HPCL [ ] Valvoline [ ] Veedol [ ] Pennzoil [ ] Castrol [ ] Shell [ ] servo [ ] Elf [ ] MAK [ ] Any other specify _______________________________________________ 13. Have you changed the brand of lubricant used in past 1 year? [ ] Yes [ ] No  If yes, which brand?  If no, how long have you been using it:____________ 14. How much stock do you keep at any point of time? [ ] 20-50 liters [ ] 50-150 liters [ ] 150-200 liters [ ] More than 200 litersNoble School of Business 68
  • 69. Marketing strategy for lubricants among Fleet owner segment 15. How is supply of lubes to you? [ ] Good [ ] Average [ ] Bad 16. WOULD YOU LIKE TO USE HPCL PRODUCTS IF THE SAME IS MADE AVAILABLE TO YOU AT HIGHLY COMPLETIVE RATES? [ ] Yes [ ] No 17. Are you aware of HPCL lubricants? [ ] YES [ ] NoRemarks:___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Thank you for your co-operation YOURS SINCERELY [RAGHAVENDRA.GS]Noble School of Business 69