Summer Internship Project in association with Hindustan Petroleum Corporation Limited (Eastern Region) ...

1. Summer Internship Project
“Promotional and Marketing strategies of HYLUBE HDX
MULTIGRADE 20W 40 Diesel Engine Oil Lubricant and
to arrest the decline in sales of HP LAAL GHODA 20W
40 Diesel Engine Oil Lubricant of Hindustan Petroleum
Corporation Limited”
Presented by --
Pranay Guha
MBA Marketing
Techno India, Salt Lake

2. Company Profile
The Company was incorporated in the name of Standard Vacuum Refining
Company of India Limited on July 5, 1952.
Hindustan Petroleum Corporation Limited comes into being after the takeover and
merger of erstwhile ESSO Standard and Lube India Limited in 1974.
 HPCL operates two major refineries –
 Mumbai (West Coast).
 Vishakhapatnam (East Coast).
 Largest lube refinery in India producing Lube Base Oils of International Standards.
This lube refinery accounts for over 40% of India's total lube base oil production.
 The marketing network of HPCL consists of 13 zonal offices in major cities and
101 regional offices.
 HPCL has state of art information technology infrastructure to support its core
business. (Source:- www.hindustanpetroleum.com)

3. Company Products
HP LUBRICANTS
Automotive Grades Industrial Grades Industrial Specialties Greases
Automotive Grades
Engine Oils Gear Oils Transmission Oils Defense Grades Auto Specialties
Engine Oils
Diesel Engine Oils Petrol Engine Oils Natural Gas Engine Oils
HP LAAL GHODA 20W40 HP GASENOL 20W50
HP MILCY SYNTHETIC 15W40 FOUR WHEELER FOUR STROKE HP AUTO SHAKTI
HYLUBE HDX MG 20W 40 HP CRUISE -- HP RACER 2 LOW SMOKE
HP MILCY SUPER 20W 40 1) CLASSIC 20W 40 HP RACER 4 20W40
HP X-3 10W KLT 2) 15w 40 HP BAJAJ GENUINE OIL
HP MILCY TURBO 15W 40 3) CLASSIC TATA 20W40, 20W50
GENUINE OIL
20W 40
(Source:- www.hindustanpetroleum.com)

4. Research Objectives
 To study the decline in sales of HP LAAL GHODA 20W 40 Diesel
Engine Oil lubricant for last 5 years.
 To provide marketing strategies to the company so that they can
arrest this decline in sales of HP LAAL GHODA 20W 40 Diesel
Engine Oil lubricant.
 To study the current market scenario of HYLUBE HDX MULTIGRADE
20W 40 Diesel Engine Oil lubricant and to provide promotional and
marketing strategies to the company in order to boost its market
share.

5. Research Methodology
Research Problem Formulation
Choice of Research Design
Data Source Determination
Data Collection Form Design
(Survey Method only)
Sampling Design and Sample Size
Field Survey
Data Analysis
Research Report Preparation

6. Research Methodology (Contd.)
 Research Problem Formulation :- The research problem was about “to study
the decline in sales of HP LAAL GHODA 20W 40 diesel engine oil lubricant and to
study the current market scenario of HYLUBE HDX MULTIGRADE 20W 40 diesel
engine oil lubricant of Hindustan Petroleum Corporation Limited ”.
 Choice of Research Design :- 1) Exploratory Research –
Advertisement and Promotional analysis.
2) Descriptive Research –
Bazaar shops, retail outlets and mechanic analysis.
 Data Source Determination :-
1)Primary data collection – Interviewing the dealers, distributors, bazaar shopkeepers,
retailers and mechanics.
2)Secondary data collection – Collected from company official websites, books and
newspapers.

7. Research Methodology (Contd.)
Data collection form design :- Preparation of questionnaire. The questionnaire
was constructed using Likert scale. At first, an expert opinion was taken from Mr.
Beladhi Mukhejee [Deputy Manager(Lubes)] (External Guide) to get an insight of
the problem and then the parameters obtained from Prof. (Dr.) Amit Kundu
(Internal Guide) helped in preparing the questionnaire for field survey.
 Sampling design and Sampling size :-
Sample Design – The target population for this project is defined as follows:-
 Element :- Bazaar shopkeepers, retailers and mechanics.
 Sampling Units :- Bazaar shops, retail outlets and garages.
 Extent :- Kolkata (South).
 Time :- The survey was conducted in the month of July.
Sample Size - Sample size consists of 34 respondents.
Table showing the number of respondents segment wise :
BAZAAR SHOPKEEPERS RETAIL OUTLETS MECHANICS
16 14 4

8. Research Methodology (Contd.)
 Field survey :- Having prepared the questionnaire and selected the sample
design and size of sample, the next step is to conduct the field survey which
includes two most important aspects :-
 Interviewing.
 Supervision of field work.
Data Analysis:- In order to derive meaningful results from the feedbacks
collected via questionnaire through field survey, the data has been analyzed
by factor and regression analysis.
Research report preparation:- Once the data have been tabulated,
interpreted and analyzed, the final report is prepared embodying the
findings of the research study and recommendations or policy prescription
for the organization.

9. QUESTIONNAIRE

10. Questionnaire
1. Which diesel engine oil lubricant customers are preferring most currently?
2. Who influence the customer to buy the lubes?
4. MECHANICS 3.SHOPKEEPER 2.CUSTOMER HIMSELF 1.OTHERS
3. What do you look into a lubricant?
4. MARKET DEMAND 3.PROFIT 2.BRAND POPULARITY 1.QUALITY
4. Comparative Study of HP LAAL GHODA 20W 40 API CF and HP HDX
MULTIGRADE API CF 20W 40 with other competitive brands?
BRAND NAME
RATINGS HP LAAL
GHODA
CLOSE
COMPETITORS(NAME)
HP HDX
MULTIGRADE
CLOSE
COMPETITORS(NAME)
Excellent)
Good)
Average)
Satisfactory)
Poor)
QUALITY
RATINGS HP LAAL
GHODA
CLOSE
COMPETITORS(NAME)
HP HDX
MULTIGRADE
CLOSE
COMPETITORS(NAME)
Excellent)
Good)
Average)
Satisfactory)
Poor)

11. PRICING
RATINGS HP LAAL
GHODA
CLOSE
COMPETITORS(NAME)
HP HDX
MULTIGRADE
CLOSE
COMPETITORS(NAME)
Excellent)
Good)
Average)
Satisfactory)
Poor)
AVAILABILITY
RATINGS HP LAAL
GHODA
CLOSE
COMPETITORS(NAME)
HP HDX
MULTIGRADE
CLOSE
COMPETITORS(NAME)
Excellent)
Good)
Average)
Satisfactory)
Poor)
PACKAGING
RATINGS HP LAAL
GHODA
CLOSE
COMPETITORS(NAME)
HP HDX
MULTIGRADE
CLOSE
COMPETITORS(NAME)
Excellent)
Good)
Average)
Satisfactory)
Poor)
PROMOTION
RATINGS HP LAAL
GHODA
CLOSE
COMPETITORS(NAME)
HP HDX
MULTIGRADE
CLOSE
COMPETITORS(NAME)
Excellent)
Good)
Average)
Satisfactory)
Poor)

12. FREQUENCY OF PURCHASE
RATINGS HP LAAL
GHODA
CLOSE
COMPETITORS(NAME)
HP HDX
MULTIGRADE
CLOSE
COMPETITORS(NAME)
Excellent)
Good)
Average)
Satisfactory)
Poor)
VIII. BRAND SWITCHER (Customers are doing on frequent basis)
RATINGS CLOSE COMPETITORS(NAME)
5
4
3
2
1
MAXIMUM OFFER
RATINGS HPCL CLOSE COMPETITORS(NAME)
Excellent)
Good)
Average)
Satisfactory)
Poor)
Relevant schemes available in the market for HDX MG API CF 20W 40
RATINGS HP HDX MULTIGRADE
Strongly Agreed)
Moderately Agreed)
Agreed)
Moderately Disagreed)
Not agreeing)

13. Market Operating Price (MOP) of HP HDX MG API CF 20W 40 can be of which
range to attract the customers vision and preference
RATINGS HP HDX MULTIGRADE PRICE RANGE
Excellent)
Good)
Average)
Satisfactory)
Poor)
XII. HP LAAL GHODA 20W 40 API CF and HP HDX MULTIGRADE API CF 20W 40 is
known to everyone
RATINGS HP LAAL GHODA HDX MULTIGRADE
Strongly Agreed)
Moderately Agreed)
Agreed)
Moderately Disagreed)
Not agreeing)

14. Data Analysis
 The collected data has been analyzed by using two statistical tools :-
 Factor Analysis.
 Regression Analysis.
Factor Analysis :- There are two objectives of Factor Analysis :-
1) It simplifies the data by reducing a large number of variables to a set of
small number of variables.
2) It analyses the interdependence of interrelationships among a total set of
variables.
Regression Analysis :- Regression analysis is widely used for prediction and
forecasting. It is also used to understand which among the independent
variables are related to the dependent variable, and to explore the forms of
these relationships.
(Source:- Internal Guide - Prof. (Dr.) Amit Kundu)

15. DATA ANALYSIS
Factor Analysis
Factor Analysis
KMO and Bartlett's Test
.533
63.555
36
.003
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
Approx. Chi-Square
df
Sig.
Bartlett's Test of
Sphericity
Total Variance Explained
Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
2.375 26.389 26.389 2.375 26.389 26.389 2.025 22.505 22.505
1.794 19.933 46.322 1.794 19.933 46.322 1.817 20.185 42.690
1.304 14.492 60.814 1.304 14.492 60.814 1.410 15.670 58.359
1.074 11.936 72.751 1.074 11.936 72.751 1.295 14.391 72.751
.776 8.620 81.371
.618 6.867 88.238
.475 5.280 93.518
.335 3.725 97.243
.248 2.757 100.000
Component
1
2
3
4
5
6
7
8
9
Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
Extraction Method: Principal Component Analysis.

16. Regression Analysis
REGRESSION ANALYSIS
Rotated Component Matraix
Component
.825 2.913E-04 -3.80E-02 9.226E-02
.697 .144 .287 -5.25E-02
.663 -.237 -.178 -.361
-.156 .905 -2.51E-02 -6.73E-02
.138 .897 -6.79E-02 -3.93E-02
-8.87E-02 -1.74E-02 .905 -3.94E-02
.473 -.132 .561 4.668E-02
-.209 1.515E-02 -.182 .831
.317 -.314 .349 .674
pricing of the product
Distribution netw ork
Packaging/ Quality &
Promotion
Qualty
Brand Name
Satisfaction-Frequency
of Purchase
Aw arness-Brand &
Product
Sales Promotional Tools
Integration Marketing
Communication
1 2 3 4
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax w ith Kaiser Normalization.
a. Rotation converged in 7 iterations.
Model Summaryb
1.000a 1.000 .999 5.1057 2.120
Model
1
R R Square
Adjusted
R Square
Std. Error of
the Estimate
Durbin-W
atson
Predictors: (Constant), REGR factor score 3 for analysis 1 ,
REGR factor score 1 for analysis 1 , REGR factor score 2 for
analysis 1
a.
b. Dependent Variable: Sleas data HP LAL GHODA in KL
Coefficientsa
Unstandardized
Coef f icients
Standardi
zed
Coef f icien
ts
1190.754 5.519 215.739 .003
167.513 2.399 1.337 69.824 .009
-247.863 6.109 -1.083 -40.573 .016
-41.802 4.704 -.193 -8.887 .071
(Constant)
REGR factor score
1 for analysis 1
REGR factor score
2 for analysis 1
REGR factor score
3 for analysis 1
Model
1
B Std. Error
Beta
t Sig.
a. Dependent Variable: Sleas data HP LAL GHODA in KL

17. Interpretation Of The Results
 From the questionnaire we have chalked out 9 parameters:-
1) Pricing of the product.
2) Distribution network.
3) Packaging/Quality and Promotion.
4) Quality.
5) Brand name.
6) Satisfaction- frequency of purchase.
7) Awareness- Brand and Product.
8) Sales promotional tools.
9) Integrated Marketing Communication.
By using these 9 parameters and their corresponding data available, factor
analysis and regression analysis have been performed.

18. Interpretation Of The Results (Contd.)
 After undergoing the calculation of data, we have got only 4 components which
describe the rest of the 9 components.
 The four components are :-
1) F1- Overall marketing strategy.
2) F2- Brand associated with equity.
3) F3- Customer satisfaction.
4) F4- Communication strategy.
 F1 comprises of pricing of the product, distribution network and packaging/quality
and promotion.
 F2 comprises of quality and brand name.
 F3 comprises of frequency of purchase.
 F4 comprises of sales promotional tools and integrated marketing communication.
 F1 – 0.825, 0.697 and 0.663.
 F2 – 0.905 and 0.897.
 F3 – 0.905.
 F4 – 0.831 and 0.674.

19. Interpretation Of The Results (Contd.)
Adjusted R Square value is about 0.999 which states that the analysis done is
good.
 In the co-efficient table, we have got four predictors or p-values for four
components. These values are 0.003, 0.009, 0.016 and 0.071.
The general form of each hypothesis test is:
H0 :This independent variable is not a significant predictor of the
dependent variables.
H1 : This independent variable is a significant predictor of the dependent
variables.
The decision rule is:
If p < 0.05, reject the null hypothesis and accept the alternative
hypothesis.
Therefore, we choose the component F4 whose value is 0.071 according to
the above stated rule.

20. Conclusion
The component F4 (sales promotional tools and integrated marketing
communication) contribute significantly in arresting the sales of HP
LAAL GHODA 20W 40.
 Therefore, the above mentioned component is essential in boosting
up its sales.
 In a more simpler way, we could say that the brand associated with
adequate sales promotional techniques and proper integrated
marketing communication strategy in place will help in satisfying the
customers in broader perspective.

21. Research Findings
Service Stations are playing the key role in influencing the customer to buy or to use
selective lubricant products for their vehicles.
New vehicles are coming up with turbo charged engines where HP LAAL GHODA is
falling behind on their requirements.
 Vehicles with engine specifications are locking up the consumer’s view.
There are no offers or discounts for consumers on HP LAAL GHODA and HP HDX
MULTIGRADE currently available in the market.
HP LAAL GHODA costs Rs. 170 in retail outlets whereas it costs only Rs. 130/140 in
bazaar shops.
 Distribution channel conflict between the retailers and distributors is killing these
products.

22. Policy Prescription For The Organization
 HP LAAL GHODA 20W 40
1) Packaging - Better outlook for the containers.
2) Advertising - Cost effective one.
3) Distribution Channel - Distributors should play an active role as a part of
pushing the product in the market.
4) Sales Promotion -
 Trade coupons for the consumers .
 Discount with 1 liter or bigger packs in order to boost up the seasonal
sales.
 Providing incentives to the bazaar shopkeepers.

23. Policy Prescription For The Organization (Contd.)
 HP HDX MULTIGRADE 20W 40
1)Budget Allocation - The first major step before promoting this product.
2)Hiring an agency - To provide some quality manpower assistance to the company for
promotional activities.
3)Leaflet distribution - HP retail outlets and in office areas.
4)Mobile hoardings - Target market areas.
5)Market Survey - In places where the promotional activities will be carried on.
6)Retail Promotion - Putting up flex uni-pole hoardings carrying an overall description of
the product along with its hidden or noticeable qualities.
7)Sales Promotion - Trade coupons for the customers.

24. Scope For Future Research
 To convert more mechanics, retailers and fleet owners into dedicated HPCL customers.
 Analyze the requirements of HP HDX MULTIGRADE 20W 40 and HP LAAL GHODA 20W 40
diesel engine oil lubricants and devise strategies for market penetration.
 To resolve the issues regarding the distribution channel between the retailers and DSRO
which will ultimately lead to the growth of these products in the lube market.
 This study will help the company to accelerate their reach towards those mechanics
working in the service stations and impart them with the adequate knowledge about their
products.
 To start the promotional activities in target areas or regions for HP HDX MULTIGRADE 20W
40 with an additional knowledge of how their competitor’s are on the rise with their
promotions in this regions.
 The company can also develop a more useful push strategy for their products rather than
dumping them into the retail outlets.