Adrenaline Hike Team Phoenix Sayan Aditya Niladri Saha Rohan Engineer
Lubricant Industry in India Industry Brief Major Players India is the seventh largest lubricant market in the Four major players(brand): world and the sixth largest automotive lubricant 1. Castrol India Limited market. 2. Indian Oil Corporation Limited(Servo) Market of finished lubricants in India, 1.86 million 3. Bharat Petroleum Corporation Limited (MAK) metric tons which is valued at $2.8 billion in 2009. 4. Hindustan Petroleum Corporation Limited These four contribute to 70% of the overall market. Three major market sectors: Automotive, Industrial Other players like Shell make up the minor market. and Marine & Energy applications. Servo from IOCL commands 40% of the market share. Industry Outlook • Market of finished lubricants in India is expected to grow at a CAGR of 3.7% till 2015. • Automotive lubricants constitute 63% of the Indian market • The current growth in the automotive lubricant market is led primarily by increased four stroke motorcycle and passenger car sales, recovery in agri-driven lubricant consumption and a growing, new generation, high technology, tractor segment.
Major Lubricant Brands in IndiaCompany Lubricant Brand Positioning Brand Association Communication Strategy •High tech products •Easily available •Strategically •Value added almost everywhere located modern services by IOCL •Value for money petrol stations on tech engineers highways •Television ads •Loyalty Programs •Caters to the lower •Value for money •Television ads end of the market lubricant featuring normal •Low impetus on actors high performance •Ads at dhabas and highways •High performance •High Performance •Sponsoring engine oil •Motorsports motorsports •Technologically •Castrol Football •High impetus on advanced Index performance enhancing for high end vehicles •Purely functional •Value for money •Television ads benefits lubricant •Participation in •Increase the life of youth festivals your engine •Association with •Low cost car and bike rallies
Major Lubricant Brands in International MarketsCompany Lubricant Brand Positioning Brand Association Communication Strategy •Technology Leaders •High Quality •Sponsoring in in lubricants •Highly reliable motorsports •Delivers first class products •Television and print lubricants ads showing technical leadership •Technologically •Reliable •Sponsoring in driven •Improves motorsports •High Performance performance •Television and print •Low cost due to ads highlighting supply chain superior efficiencies performance •Green Technology •High Reliability •Television and print •Environment •Longer Engine life ads highlighting Friendly •High performance green technology and environment safety •Low cost •Value for money •Good distribution •Good Performance •Not very high Channels reliability •Mainly WOM marketing and referals
Brand Servo Brand Positioning Brand Communication •SERVO’s main mode of promotion is•Tagline-“100% performance. Every time” through petrol pumps. •Servo is positioned as a brand that gives •IOCL have a YouTube channelengine life, reduces friction and optimizes (Indianoilcorpltd) where the latest performance advertisements of SERVO are uploaded and•Functional benefit highlighted in all forms shared. of communication. •‘SERVO 4T CAR in a CAN’ offer. •‘SERVO 4T ZOOM’ game (on zapak.com). Brand Association Customer behavior •Moderate cost with high performance, so attractive for customers•Easily Available almost everywhere •Customer tends to use Servo during•Value for Money servicing of automobiles.•High Performance •Purchase mostly done from nearby petrol•High Reliability pumps.•Better engine life •If bought product is used over a period of 1-2 months
Brand Identity Present Brand identity Targeted future Brand Identity Physique Personality Performance Simple Physique Personality Masculine Traditional Performance Adventurous Logo Indian Speed Sporty Thrill Bold Picture of Sender Relationship CultureRelationship Culture Reliable CooperativeReliable Cooperative Friendly SharingFriendly Sharing Trustworthy OpenTrustworthy Next Generation Picture of Receiver Reflection Self Image Ambitious Passionate Reflection Self Image Confident Performance Economical Machine user Independent seeking Conservative Value seeking Upbeat Performance seeking
Leveraging The distribution network of IOCL•The hoardings of the Force India car with brand logo of Servo will entrench association of racing, speed and modern with Servo brand.•This hoarding will be visible from quite a •When a car or a bike stops for refuellingdistant since petrol stations are mostly on at the petrol stop, it stops on the highways. chequered area. •It gives a spontaneous association with racing since chequered flag is an integral part of F1 race.
Leveraging The distribution Cost: * * network of IOCLReach: * *** The association with motorsports entrench the speed, sporty and contemporary association with Brand Servo. Youth in the age group 20-35 gets an instant connect.Co Branding with Force India at petrol pumps across the country provides mutual benefits. Hence cost of co-branding comes out to be very low Entrenching Brand AssociationsAs soon as the customer comes near the petrol pump the banner of “The power to transform” is seen and he gets a clear message about Brand Servo’s usage benefitsThe chequered flag area near petrol filling places further differentiates the experience of the customer and gives an association of speed, race and thrill to both Indian Oil and Servo brand
Servo Speed Stops @ IOCL petrol pumps Cost: * *Reach: * *** •Servo Speed Stop is the servicing block at Indian oil Petrol pumps. •The speed stops provide service facilities like engine clean up and other maintenance function so that “100% performance is maintained” •These wing will also be the place to display and educate the customers about the benefits of lubricants in automobile usage. • This stops will focus on communicating the functional aspects of Brand All of us have seen the Servo and demonstrate hands on performance improvement after using itMacDonalds “M” logo onhigh poles in Noida and in the NCR •Also a mode to build customer relationship in the form of interacting and providing guidance to maintain long engine life.
Co-Branding with TV shows Cost: * * ** Stunt mania Servo Reach: * *** •Lubricant Partner. •Thrill, Speed, youth and Sporty.•Pulsar Stuntmania is a stunt biking adventure event popular amongst the age group-18-30.•It showcases thrill, speed and modern probiking stunts to generate interest about biking and racingamongst the youth surrounding the Brand pulsar•Servo will co-brand with Pulsar as the lubricant partner. In return Servo can take up Pulsar’s model in its lubricant ad campaigns thus jointly promoting the brands. •Association with the show will attribute the smooth functioning of bikes to usage of quality engine oils and lubricant brand like Servo.
Proximity marketing during Auto Expo Cost: * * Expo Website Reach: * ** •Auto Expo 2012 is one of the most covered events amongst automobile lovers. •Servo will be the lubricant partner organizing the proximity marketing infrastructure for the expo. •Proximity or Bluetooth marketing refers to the means of advertising or sharing product information on customer mobile phones when they are near to the product•Call to action banners will urge the crowd to keep on the Bluetooth. •When near an automobile viewers would receive infosabout them. The downloadable content will have logo of Servo as the lubricant partner •Since Servo facilitates the product specification via theproximity network hence cost of advertising Servo is low. •Association-lubricant partner of wide range of automobiles, world class quality, contemporary
Lubricant Sponsor of Racing and Cross Country rallies Rally Poster •Cross country rallies are gaining popularity as motorsport and adventure becomes a Cost: * * rage in India Reach: * * •Maruti Suzuki have been organizing Raid de Himalaya and desert storm since 2004. •Futura, Castrol have been associated with various other rally events •The recently concluded India –Bangladesh 4 day cross country rally received tremendous mediasupport. Rugged terrain , long lasting performance and racing enthusiasm has been the main features. •Servo can be the lubricant or co-title sponsors for major rallies across the nation. Associations : Enduring Performance, Adventure, Racing
Cost: * * ** Servo Speed ShowReach: * ** •Castrol, AutoCar, Overdrive –these are some of the brands that sponsors auto shows on television. Also commands high TRP ratings in age group 18-35. •The shows provide latest automobile launch updates, auto performance reviews and in depth analysis and tips about existent auto products •For Servo to leverage association with modern automobiles, speed and technology which enthuses the youth , it should sponsor a news review show on a sports network •The Cost may be high but the reach will be specific and will have long term implication. Brand recall will be very high through this mode
Long term Association Medium-Cost: * * ** Buddh Intl. Circuit Seating ArenaReach: * *** •It’s the grand stand sitting arena which will house the Servo logo. •Lot of promotions are done before the start of F1 race. The arena is shown on TV repeatedly. The brand will receive lot of recognition at that time. •Those coverage typically starts a month before the race is scheduled
Timelines of various Initiatives Servo Speed Show @Ten sports Rallies Rallies Rallies Servo Speed stops @ IOCL petrol pumpsOrder of Occurrence Co branding with Pulsar Auto Expo Banner display, cut outs and Banner display, cut outs and chequered area at IOCL petrol chequered area at IOCL petrol pumps pumps 0-4 months 5-8 months 9-12 months 13-16 months 17-20 months 21-24 months Timeline