hpcl lube report by vaibhav
Post on 08-Sep-2014
11.733 Views
Preview:
DESCRIPTION
TRANSCRIPT
UNIVERSITY OF PETROLEUM AND ENERGY STUDIES
2010
SUCCESS
DETERMINANTS OF
SELECTED LUBRICANT
BRANDS
SUMMER INTERNSHIP REPORT
BY: VAIBHAV GODSE, MBA OIL AND GAS- 2009-2011
H I N D U S T A N P E T R O L E U M C O R P O R A T I O N L T D . , M U M B A I ( I N D I A )
2
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
EXECUTIVE SUMMARY
Title of the Project: Success determinants of selected lubricant brands.
Objective of the Project: Determining and analyzing the factors responsible for the
of brands in diesel engine oil (DEO), passenger car motor oil (PCMO) and four stroke oil (4T)
segment based on suggestions obtained from bazaar shops and retail outlets through
questionnaire. Further giving possible suggestions to HPCL to gain a competitive edge in its
bazaar shops and retail outlets.
This project is an initiative to determine the exact reason for the success of lubricant brands in the Indian
market. The segment taken for the study was Diesel engine oil, Passenger car motor oil and Four stroke
oil. The objective of the project was:
� To portray the lubricant market in India, it’s historical background, liberalization and
current state of competitiveness.
� To identify the successful lubricant brands launched by Hindustan Petroleum Corporation
Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation
Limited and Castrol India Limited (CIL).
� To identify the brand success factors of selected lubricant brands launched by HPCL,
BPCL, IOCL and Castrol.
Methodology: Literature review through secondary data, then expert opinion by interviewing the
brand managers within the industry and interviewing the bazaar shop and retail outlet owners.
Findings and Conclusions: Thus the basic reasons for the success of any lubricant brand
depends on the seven factors, these are:
� Brand Name
� Brand Image
� Positioning in the mind of consumer
� Quality of parent brand
3
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
� Proper and longer support
� Above the Line - Promotion
� Below the line – Promotion
These factors are one or the other way of communicating the product to the customers
4
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
ACKNOWLEDGEMENT
I, Vaibhav Godse, sincerely acknowledge the support and guidance given by my mentors,
without whom, the project would not have taken shape in the desired direction. Every single bit
put in by my mentors is precious in its own way.
I wish to thank and acknowledge Shri. R. Sudhakar Rao, Executive Director, Direct Sales
SBU, for his constant support and being the mastermind of this project. I owe him priceless
gratitude for making me privilege to work with his talented team in his highly esteemed SBU.
I also wish to acknowledge the valuable contributions of Shri. L.N.Maheswari, Dy.General
Manager, Consumer Lubes and Shri. A.K Bhan, General Manager, South Zone.
I thank Shri. V.Raghunathan, Chief Manager, Retail Lubes and Shri T. Jaya Surya, ESO-
Lubes, Direct Sales SBU.
I also acknowledge the efforts put in by Shri Harpreet Ghosal, LSO, Delhi Office for being “on
filed” mentor.
The architect of the project and the guide in the true sense of the term, Shri Amit Tandon,
Manager, Lubes- Branding, without his guidance this project would never have taken any shape.
I wish to sincerely acknowledge to contribution, guidance and support he lent me throughout the
course of the project and thank him from the bottom of my heart for the same.
5
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
ABSTRACT
The project is based on success determinant of lubricant brands in diesel engine oil, passenger
car motor oil and four stroke oil segments. The companies taken for the study are Hindustan
Petroleum Corporation Limited (HPCL), Indian Oil Corporation Limited (IOCL), Bharat
Petroleum Corporation Limited (BPCL), and Castrol India Limited (CIL).The brands selected for
the study are taken, based on highest sale for the past three years. There were four team members
and each one had to study one company. I did the study on success determinants of HPCL
automotive lubricant brands. The brands selected for the study are Laal Ghoda and Milcy Turbo
in DEO, Cruise and Cruise Classic in PCMO, and Racer 4 in 4T segment. There are about 30
small and big sized players in the market, who produce and market automotive lubes.
Bazaar shops and retail outlets are the only market where the lubricant is sold to the consumers.
For the survey, four cities were shortlisted Delhi, Mumbai, Pune and Jaipur. For data collection
more emphasis was given for DEO in Delhi and Jaipur bazaars, and more emphasis for PCMO
and 4T in Pune and Mumbai bazaars.
To start with, I got myself acquainted with the lubricant market and the various terminologies
used, the specifications required, the standards to be followed, reviewing some articles on
lubricant market in India as a part of my ground work by reviewing some literature, and
gathering information at HPCL’s Marketing Headquarters- Hindustan Bhawan. I reported at
office on June 1, 2010 for the first time, and from there on, eventually, collected the necessary
data regarding the sales, pricing and packaging. Within company the information gathered
formed the platform for my project.
Before exploring the market, one must have a clear awareness about the product of research and
survey, its specifications, its process and other marketing related issues involved.
This was followed by my visit to Delhi Regional office and the Delhi bazaar shops and retail
outlet survey was conducted from June 26 to July 10, 2010. Whereas the data from other cities
were collected by rest of the project members.
After collecting the data from various cities, it was merged and segregated according to the
companies under study. Then this was followed by data analysis and interpretation part.
6
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
At the end a presentation was given in front of Mr Arunbalakrishnan (C.M&D), Mr. Sudhakar
Rao (E.D) and Mr. Amit Tandon (Manager). Necessary changes were made as guided by
respected Sir and a report was submitted thereafter.
Vaibhav Godse
UPES Dehradun.
7
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
DECLARATION
Vaibhav Godse hereby declares that the project work entitled “Success Determinant of Selected
Lubricant Brand” is a bona fide work done by me under the guidance and supervision of Mr.
Amit Tandoon. The work has not formed part of any earlier studies for the award of degree/
diploma/ fellowship.
Place: Mumbai, (Maharashtra)
Date: 31 July 2010 Signature of the Student.
8
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
CONTENT
SI.NO. TOPIC PAGE NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
ABOUT HPCL
RESEARCH METHODOLOGY
LITERATURE REVIEW
INDIAN LUBE MARKET
SUCCESS DETERMINANTS
STRATEGIES IN LUBRICANT BUSINESS
PRODUCT PORTFOLIO AND SPECIFICATION
MARKETING CONCEPTS
SAMPLE MARKET ANALYSIS
CONCLUSION AND RECOMMENDATION
ANNEXURE-
� GRAPHS � QUESTIONNAIRE
LIST OF RETAIL OUTLETS AND BAZAAR SHOPS
SURVEYED
ABBREVATIONS
REFERENCE
8-15
16-19
20-30
31-37
38-41
42-44
45-49
50-55
56-67
68-71
72-83
73-83
83 (1-15)
84-85
86-87
88
9
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
ABOUT HPCL
HPCL is a Fortune 500 company, with an annual turnover of Rs. 1,08,599 Crores and
sales/income from operations of Rs 1,14,889 Crores (US$ 25,306 Millions) during FY 2009-10,
having about 20% Marketing share in India and a strong market infrastructure.
HPCL operates two major refineries producing a wide variety of petroleum fuels & specialties,
one in Mumbai (West Coast) of 6.5 Million Metric Tonnes Per Annum(MMTPA) capacity and
the other in Vishakapatnam, (East Coast) with a capacity of 8.3 MMTPA. HPCL holds an equity
stake of 16.95% in Mangalore Refinery & Petrochemicals Limited, a state-of-the-art refinery at
Mangalore with a capacity of 9 MMTPA. In addition, HPCL is constructing a refinery at
Bhatinda, in the state of Punjab, as a Joint venture with Mittal Energy Investments Pte. Ltd.
HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base
Oils of international standards, with a capacity of 335 TMT. This Lube Refinery accounts for
over 40% of the India's total Lube Base Oil production.
HPCL's vast marketing network consists of 13 Zonal offices in major cities and 101 Regional
Offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Aviation
Service Stations, LPG Bottling Plants, and Inland Relay Depots & Retail Outlets, Lube and LPG
Distributorships. HPCL, over the years, has moved from strength to strength on all fronts. The
refining capacity steadily increased from 5.5 MMTPA in 1984/85 to 14.8 MMTPA presently. On
the financial front, the turnover grew from Rs. 2687 Crores in 1984-85 to an impressive Rs
1,16,428 Crores in FY 2008-09.
VISION
• Market leader in growth and profitability.
• Most preferred supplier of quality products at right price and time.
• Delighting the customers by value added services.
• Professional and empowered team for quick response to customers.
10
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
QUALITY POLICY
• Total customer satisfaction through quality products by doing it right the first time, every
time.
• Ensure consistency of quality, and adherence to time deadlines.
• Strive to achieve excellence in quality through training, motivation, team work and
continuous up gradation of technology.
• To take appropriate steps to minimize wastage, increase productivity and optimize the
quality of products and services in a cost effective manner
PRODUCT COMMITMENT
• To provide quality products and services which shall reflect in a growing list of satisfied
customers.
• To consciously build a quality culture, through employee participation, motivation and
training.
• To strive for an eco - friendly environment.
SUCCESS DETERMINANTS OF SELECTED
HPCL LUBRICANTS
� HP Lubes is an integral part of Hindustan Petroleum Corporation Limited, one of India's
frontline oil majors, committed to providing energy and fueling g
significant area of development. In pursuit of this vision, there is a sustained emphasis on
environment protection and preserving the cultural heritage of India.
� HPCL Lube market share is
� The HP Engine Oils product range covers over 300 brands of lubricants, gr
specialties catering to the automotive as well as the industrial sector.
� HPCL has six lube blending plants at Mumbai, Kolkata, Chennai and Silvassa.
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 ploughing
tractors and industrial machinery. The range conforms strictly to OEM specifica
taking the initiative in customization of products.
The various lubricant segments of HPCL are
AUTOMOTIVE
GRADES
INDUSTRIAL
GRADES
SELECTED LUBRICANT BRANDS
HP Lubes is an integral part of Hindustan Petroleum Corporation Limited, one of India's
frontline oil majors, committed to providing energy and fueling g
development. In pursuit of this vision, there is a sustained emphasis on
environment protection and preserving the cultural heritage of India.
HPCL Lube market share is around 11%.
The HP Engine Oils product range covers over 300 brands of lubricants, gr
specialties catering to the automotive as well as the industrial sector.
HPCL has six lube blending plants at Mumbai, Kolkata, Chennai and Silvassa.
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 ploughing
tractors and industrial machinery. The range conforms strictly to OEM specifica
taking the initiative in customization of products.
lubricant segments of HPCL are:
HP
LUBRICANTS
INDUSTRIAL
GRADES
INDUSTRIAL
SPECIALITIESGREASES
11
HP Lubes is an integral part of Hindustan Petroleum Corporation Limited, one of India's
frontline oil majors, committed to providing energy and fueling growth in every
development. In pursuit of this vision, there is a sustained emphasis on
The HP Engine Oils product range covers over 300 brands of lubricants, greases and
HPCL has six lube blending plants at Mumbai, Kolkata, Chennai and Silvassa.
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 ploughing
tractors and industrial machinery. The range conforms strictly to OEM specifications, often
GREASES
SUCCESS DETERMINANTS OF SELECTED
Since the study is focused on au
are taken under study within which Diesel engine oil, passenger car motor oil and four stoke oils
are taken. The various brands of HPCL in automotive segment are:
ENGINE OILS
DIESEL ENGINE OILS
PETROL ENGINE
OILS
NATURAL GAS
ENGINE OILS
FIRST FILL ENGINE
OILS
GEAR OILS
SELECTED LUBRICANT BRANDS
Since the study is focused on automotive lubricants and within automotive lubricant
within which Diesel engine oil, passenger car motor oil and four stoke oils
various brands of HPCL in automotive segment are:
HPCL AUTOMOTIVE
LUBRICANT
GEAR OILSTRANSMISSION
OILSAUTOSPECIALITIES DEFENSE GRADES
12
within automotive lubricant, engine oils
within which Diesel engine oil, passenger car motor oil and four stoke oils
DEFENSE GRADES
SUCCESS DETERMINANTS OF SELECTED
LUBRICANT PRODUCT LINE IN ENGINE OIL SEGMENT
DIESEL ENGINE OIL SEGMENT
� MILCY 40 – SAE 40 API CD
� LAL GHODA – SAE 20W 40 API CF
� CHAMPION – SAE 20W0 40 API CF/SF
� MILCY TURBO –
� HP NO1 – SAE 15W 40 API CI4
DIESEL ENGINE
OIL
LAAL GHODA
MILCY
MILCY TURBO
CHAMPION
HP NO.1
SELECTED LUBRICANT BRANDS
LUBRICANT PRODUCT LINE IN ENGINE OIL SEGMENT
DIESEL ENGINE OIL SEGMENT
SAE 40 API CD
SAE 20W 40 API CF
SAE 20W0 40 API CF/SF
SAE 15W 40 API CF4
SAE 15W 40 API CI4
ENGINE OIL
DIESEL ENGINE
LAAL GHODA
MILCY
MILCY TURBO
CHAMPION
HP NO.1
PASSENGER CAR
MOTOR OIL
CRUISE
CRUISE CLASSIC
HP ACE
FOUR STROKE
RACER 4
RACER 4 EXCEL
13
SUCCESS DETERMINANTS OF SELECTED
PASSENGER CAR MOTOR OIL
� HP CRUISE - API SG 15W 40
� HP ACE - API SL , 15W 40
FOUR STROKE OIL
� RACER 4 - API SG
� RACER 4- EXCEL (API SL
GRAPH SHOWING THE HPCL SALES/INCOME FROM OPERATIONS
0
20000
40000
60000
80000
100000
120000
140000
2004-05 2005
SA
LES
/IN
CO
ME
FR
OM
OP
ER
AT
ION
S,
RS
/cro
res.
SELECTED LUBRICANT BRANDS
PASSENGER CAR MOTOR OIL
API SG 15W 40
API SL , 15W 40
EXCEL (API SL)
GRAPH SHOWING THE HPCL SALES/INCOME FROM OPERATIONS
2005-06 2006-07 2007-08 2008-09
YEAR
SALES Rs/Crores
SALES Rs/Crores
14
GRAPH SHOWING THE HPCL SALES/INCOME FROM OPERATIONS
SALES Rs/Crores
SUCCESS DETERMINANTS OF SELECTED
GRAPH SHOWING HPCL SALES VOLUME OF LUBES AND GREASES
GRAPH SHOWING THE NUMBER OF RETAIL OUTLETS
0
100
200
300
400
500
600
2004-05 2005-06
SA
LES
VO
LUM
E,
00
0T
ON
NE
S
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2004-05 2005-06
NU
MB
ER
OF
RE
TA
IL O
UT
LET
S
NUMBER OF RETAIL OUTLETS OF HPCL
SELECTED LUBRICANT BRANDS
GRAPH SHOWING HPCL SALES VOLUME OF LUBES AND GREASES
GRAPH SHOWING THE NUMBER OF RETAIL OUTLETS
06 2006-07 2007-08 2008-09
YEAR
SALES VOLUME
SALES VOLUME
2006-07 2007-08 2008-09
YEAR
NUMBER OF RETAIL OUTLETS OF HPCL
NUMBER OF RETAIL
OUTLETS
15
GRAPH SHOWING HPCL SALES VOLUME OF LUBES AND GREASES
SALES VOLUME
NUMBER OF RETAIL
16
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
RESEARCH METHODOLOGY
17
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
RESEARCH METHODOLOGY
DEVELOPMENT OF APPROACH TO THE
PROBLEM
FIELD OR DATA COLLECTION
RESEARCH DESIGN FORMULATION
DATA PREPARATION AND ANALYSIS
REPORT PREPARATION AND
PRESENTATION
PROBLEM DEFINITION
BAZAAR
SHOPS
RETAIL
OUTLETS
18
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
PROBLEM DEFINATION AND APPROACH TO THE PROBLEM
Project is about “Success determinants of lubricant brands”. To identify the determinants for the
success of lubricant brands of HPCL in the diesel engine oil segment, passenger car motor oil
segment and four stroke segment.
How the market dynamics work for the lubricant brands, which factor influences the most for the
sale of any particular brand whether brand name, image, promotion etc.
RESEARCH OBJECTIVE
� To portray the lubricant market in India, it’s historical background, liberalization and
current state of competitiveness.
� To identify the successful lubricant brands launched by Hindustan Petroleum Corporation
Limited (HPCL).
� To identify the brand success factors of selected lubricant brands launched by HPCL.
� Applying various marketing models on HPCL lubricant brands- Poter’s Five Forces,
SWOT Analysis etc.
Before starting the research work some of reasons for the success of any lubricant brands were
shortlisted through literature review.
The basic objective is success determinants of four lubricant brands of HPCL in the three
segment- Diesel Engine Oil, Passenger Car Motor Oil and Four Stroke oil. The selections of
brands made for the study was based on sale of each brand in the Indian market i.e., highest
selling brands for the past three were shortlisted for the study. Two largest selling brands each
of diesel engine oil and passenger car motor oil and one for four stroke oil were taken. The
brands included were:
� Diesel Engine Oil- Laal Ghoda and Milcy Turbo
� Passenger Car Motor Oil- Cruise and Cruise Classic
� Four Stroke- Racer 4
19
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
RESEARCH DESIGN
At first expert opinion is taken to get the insight of the problem. For the same brand managers
were interviewed using a questionnaire based on the determinants shortlisted from literature
review.
The feedback obtained from experts helped in preparing the questionnaire for bazaar shops and
retail outlets. After having the expert opinion and formulating the questionnaire according to the
feedback, field work was carried out. Field work included interviewing the bazaar shop and retail
outlet owners.
FIELD OR DATA COLLECTION
Field work was based on collecting the data from bazaar shop and retail outlet. The survey was
conducted in four cities- Delhi, Mumbai, Jaipur and Pune.
Sampling plan:
CITY DEO (laal ghoda and
milcy turbo)
PCMO (cruise and
cruise classic)
4T (racer 4)
Bazaar
shop
Retail
outlet
Bazaar
shop
Retail
outlet
Bazaar
shop
Retail
outlet
Delhi 12 3 9 2 3 1
Mumbai 12 3 9 2 3 1
Jaipur 12 3 3 1 9 2
Pune 12 3 3 1 9 2
DATA PREPARATION AND ANALYSIS
Data obtained from the field was analyzed. Only those factors were taken which were given
highest weight age or which the retailer and bazaar shops has agreed upon.
Based on the field data various graphs are plotted. The graphs are plotted between “reasons for
success” versus “percentage of people saying yes” for the determinant of that particular brand.
20
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
LITERATURE REVIEW
21
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
LITERATURE REVIEW
LUBRICANT
A lubricant (sometimes referred to as "lube") is a substance (often a liquid) introduced between
two moving surfaces to reduce the friction between them, improving efficiency and
reducing wear. It may also have the function of dissolving or transporting foreign particles and of
distributing heat.
One of the single largest applications for lubricants, in the form of motor oil, is protecting
the internal combustion engines in motor vehicles and powered equipment.
A lubricant is a blend of base oils and performance enhancing additives as required by
engine, gear box and other application areas. At the refinery, the crude oil is refined into
gasoline, diesel, kerosene, LPG, naphtha and base stocks (Lube). This base stock is further
processed, blended and strengthened with required properties to make different kind of
lubricants.
Typically lubricants contain 90% base oil (most often petroleum fractions, called mineral oils)
and less than 10% additives. Vegetable oils or synthetic liquids such as
hydrogenatedpolyolefins, esters, silicones, fluorocarbons and many others are sometimes used as
base oils. Additives deliver reduced friction and wear, increased viscosity, improved viscosity
index, resistance to corrosion and oxidation, aging or contamination, etc.
Lubricants such as 2-cycle oil are also added to some fuels. Sulfur impurities in fuels also
provide some lubrication properties, which has to be taken in account when switching to a low-
sulfur diesel; biodiesel is a popular diesel fuel additive providing additional lubricity.
Non-liquid lubricants include grease, powders (dry graphite, PTFE, Molybdenum
disulfide, tungsten disulfide, etc.), teflon tape used in plumbing, air cushion and others. Dry
lubricants such as graphite, molybdenum disulfide and tungsten disulfide also offer lubrication at
temperatures (up to 350 °C) higher than liquid and oil-based lubricants are able to operate.
Limited interest has been shown in low friction properties of compacted oxide glaze
layers formed at several hundred degrees Celsius in metallic sliding systems, however, practical
use is still many years away due to their physically unstable nature.
SUCCESS DETERMINANTS OF SELECTED
LUBE OIL BASE STOCK MANUFACTURING
Lubricating oils need to be viscous, have stability during the heat generated by frication of the
machine, and the viscosity should not fall sharply with the rise in temperature due to friction.
These qualities are met by vacuum gas oils i.e. high boiling cuts distilled by vacuum distillation
of crude oil. These gas oil cuts are cal
give good lube base stock. For example waxy
Asian crudes oils are not good for lube oil manufacture. Yield of suitable lube base stocks are
lower in these cases (as the oil is light) an
extraction process. Some of the medium heavy Middle East Crude oils give good quality lube
base stocks.
SELECTED LUBRICANT BRANDS
LUBE OIL BASE STOCK MANUFACTURING
Lubricating oils need to be viscous, have stability during the heat generated by frication of the
viscosity should not fall sharply with the rise in temperature due to friction.
These qualities are met by vacuum gas oils i.e. high boiling cuts distilled by vacuum distillation
of crude oil. These gas oil cuts are called lubricating oil base stocks (LOBS). All crude oil do not
give good lube base stock. For example waxy crude oils like Mumbai High or some South East
Asian crudes oils are not good for lube oil manufacture. Yield of suitable lube base stocks are
lower in these cases (as the oil is light) and wax creates a lot of operational problems during lube
extraction process. Some of the medium heavy Middle East Crude oils give good quality lube
22
Lubricating oils need to be viscous, have stability during the heat generated by frication of the
viscosity should not fall sharply with the rise in temperature due to friction.
These qualities are met by vacuum gas oils i.e. high boiling cuts distilled by vacuum distillation
All crude oil do not
oils like Mumbai High or some South East
Asian crudes oils are not good for lube oil manufacture. Yield of suitable lube base stocks are
d wax creates a lot of operational problems during lube
extraction process. Some of the medium heavy Middle East Crude oils give good quality lube
23
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
LUBE OIL MANUFACTURING PROCESS
The various processing steps are:
� De-asphalting Unit: Asphalt from the lube base stocks is removed by solvent extraction
process.
� Aromatics Extraction: Aromatic hydrocarbons are removed by solvent extraction
process to improve viscosity.
� De-waxing: This is another solvent extraction process which removes wax from the lube
base stock.
� Hydro-finishing: After the series of extraction processes, the lube base stock is treated
with hydrogen (hydro-finishing process) to improve color and give stability.
� Finally additive chemicals in small dozes are added to boost certain properties.
ADDITIVES
Plain mineral oils cannot provide all the necessary functional properties that an engine requires.
These plain mineral oils need fortification with chemicals/additives which when used in small
quantities, import or enhance the desirable functional properties. Some of the types and reasons
for their use are as follows:
Dispersants: Keeps sludge, carbon and other deposit- precursors suspended in oil.
Detergents: Keeps the engine parts clean from deposits.
Rust/Corrosion Inhibitors: Prevents or controls oxidation of oil, formation of varnish, sludge and
corrosive compounds, limit viscosity increase.
Extreme Pressure (EP), Anti wear and friction modifiers: These form protective film on the
engine parts and reduce wear and tear.
24
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
Metal deactivators: Forms surface films so that metal surface does not catalyze oil oxidation.
Pour Point Depressant: Lowers freezing point of oils assuring free flow at lower temperatures.
Anti-foamants: Reduces foam in crankcase and blending.
GRADES
The Society of Automotive Engineers (SAE) has established a numerical code system for
grading lubricants (motor oils) according to their viscosity characteristics. SAE viscosity grading
include, from low to high viscosity: 0, 5, 10, 15, 20, 25, 30, 40, 50 or 60. The numbers 0, 5, 10,
15 and 25 are suffixed with the letter W, designating their "winter" (not "weight") or cold-start
viscosity, at lower temperature. The number 20 comes with or without a W, depending on
whether it is being used to denote a cold or hot viscosity grade. The document SAE J300 defines
the viscometrics related to these grades.
Kinematic viscosity is graded by measuring the time it takes for a standard amount of oil to flow
through a standard orifice, at standard temperatures. The longer it takes, the higher the viscosity
and thus higher SAE code.
Note that the SAE has a separate viscosity rating system for gear, axle, and manual transmission
oils, SAE J306, which should not be confused with engine oil viscosity. The higher numbers of a
gear oil (eg 75W-140) do not mean that it has higher viscosity than an engine oil.
Single/ Mono-grade
A single-grade engine oil, as defined by SAE J300, cannot use a polymeric Viscosity Index
Improver (also referred to as Vicosity Modifier) additive. SAE J300 has established eleven
viscosity grades, of which six are considered Winter-grades and given a W designation. The 11
viscosity grades are 0W, 5W, 10W, 15W, 20W, 25W, 20, 30, 40, 50, and 60. These numbers are
often referred to as the 'weight' of a motor oil.
25
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
For single winter grade oils, the dynamic viscosity is measured at different cold temperatures,
specified in J300 depending on the viscosity grade, in units of mPa·s or the equivalent older non-
SI units, centipoises (abbreviated cP), using two different test methods. They are the Cold
Cranking Simulator (ASTM D5293) and the Mini-Rotary Viscometer (ASTM D4684). Based on
the coldest temperature the oil passes at, that oil is graded as SAE viscosity grade 0W, 5W, 10W,
15W, 20W, or 25W. The lower the viscosity grade, the lower the temperature the oil can pass.
For example, if an oil passes at the specifications for 10W and 5W, but fails for 0W, then that oil
must be labeled as an SAE 5W. That oil cannot be labeled as either 0W or 10W.
For single non-winter grade oils, the kinematic viscosity is measured at a temperature of 100 °C
(212 °F) in units of mm²/s or the equivalent older non-SI units, centistokes (abbreviated cSt).
Based on the range of viscosity the oil falls in at that temperature, the oil is graded as SAE
viscosity grade 20, 30, 40, 50, or 60. In addition, for SAE grades 20, 30, and 40, a minimum
viscosity measured at 150 °C (302 °F) and at a high-shear rate is also required. The higher the
viscosity, the higher the SAE viscosity grade is.
For some applications, such as when the temperature ranges in use are not very wide, single-
grade motor oil is satisfactory; for example, lawn mower engines, industrial applications, and
vintage or classic cars.
Multi-grade
The temperature range the oil is exposed to in most vehicles can be wide, ranging from cold
temperatures in the winter before the vehicle is started up to hot operating temperatures when the
vehicle is fully warmed up in hot summer weather. A specific oil will have high viscosity when
cold and a lower viscosity at the engine's operating temperature. The difference in viscosities for
most single-grade oil is too large between the extremes of temperature. To bring the difference in
viscosities closer together, special polymer additives called viscosity index improvers, or VIIs
are added to the oil. These additives are used to make the oil a multi-grade motor oil, however it
is possible to have a multi-grade oil without the use of VIIs. The idea is to cause the multi-grade
oil to have the viscosity of the base grade when cold and the viscosity of the second grade when
hot. This enables one type of oil to be generally used all year. In fact, when multi-grades were
initially developed, they were frequently described as all-season oil. The viscosity of a multi-
26
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
grade oil still varies logarithmically with temperature, but the slope representing the change is
lessened. This slope representing the change with temperature depends on the nature and amount
of the additives to the base oil.
The SAE designation for multi-grade oils includes two viscosity grades; for example, 10W-
30 designates common multi-grade oil. The two numbers used are individually defined by SAE
J300 for single-grade oils. Therefore, an oil labeled as 10W-30 must pass the SAE J300 viscosity
grade requirement for both 10W and 30, and all limitations placed on the viscosity grades (for
example, a 10W-30 oil must fail the J300 requirements at 5W). Also, if an oil does not contain
any VIIs, and can pass as a multi-grade, that oil can be labeled with either of the two SAE
viscosity grades. For example, very simple multi-grade oil that can be easily made with modern
base oils without any VII is a 20W-20. This oil can be labeled as 20W-20, 20W, or 20. Note, if
any VIIs are used however, then that oil cannot be labeled as a single grade.
The real-world ability of an oil to crank or pump when cold is potentially diminished soon after
it is put into service. The motor oil grade and viscosity to be used in a given vehicle is specified
by the manufacturer of the vehicle (although some modern European cars now have no viscosity
requirement), but can vary from country to country when climatic or fuel efficiency constraints
come into play.
Turbine
Turbine motor oils are designed somewhat differently than reciprocating engine oils traditionally
used in automobiles. Deposit control and corrosion are not significant issues when formulating
turbine oil, and the shear stresses that turbine oils are exposed to are minimal in light of the fact
that turbines are naturally balanced rotating machines unlike reciprocating engines. Turbine oils
tend to have the ISO VG range 32, 46, and 68 (cst at 40 °C/104 °F), and make extensive use of
diester, polyolester, polyalphaolefin and Group II as base stock due to the high temperatures they
must withstand. Some jet turbine oils contain an amount of polyglycols. Varnish is one of the
most problematic contaminants, leading to sticking components, reduced oil flow and increased
wear. Most routine oil analysis tests cannot determine the formation of varnish. The most widely
accepted process for measuring varnish formation is with Membrane Patch Colorimetry testing
although the ultra centrifuge test is also run by a few laboratories.
27
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
In most aviation gas turbine applications, peak lubricant temperatures are not reached during
engine operation, but after shutdown, when heat has been able to migrate from the
combustor cans and the compressors into the regions of the engine with lubricated bearings and
gearboxes. The gas flow associated with running the turbine provides significant
convective cooling that disappears when the engine is shutdown, leaving residual heat that
causes temperatures within the turbine to rise dramatically, an often-misunderstood phenomenon.
SPECIFICATION:
The lubricant is said to meet a certain specification. In the consumer market, this is often
supported by a logo, symbol or words that inform the consumer that the lubricant marketer has
obtained independent verification of conformance to the specification. Examples of these include
the API’s donut logo or the NSF tick mark.
The most widely perceived is SAE viscosity specification, like SAE 10W-40. Lubricity
specifications are institute and manufacturer based. In the U.S. institute:
� API S for petrol engines
� API C for diesel engines.
The current specs are API SM and API CJ. Higher second letter marks better oil properties, like
lower engine wear supported by tests.
In EU the ACEA specifications are used. There are classes A, B, C, E with number following the
letter.
Japan introduced the JASO specification for motorbike engines.
SOCIETIES AND INDUSTRY BODIES FOR STANDARDIZATION OF LUBES:
API
American Petroleum Institute
STLE
Society of Tribologists and Lubrication Engineers
28
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
NLGI
National Lubricating Grease institute
SAE
Society of Automotive Engineers
ILMA
Independent lubricant manufacturer association
ACEA
European Automobile Manufacturers Association
JASO
Japanese Automotive Standards Organization
APPLICATION OF LUBES:
Lubricants are mainly used is three sectors automotive, industrial and aviation. There are
numerous application of lubes in these sectors, some of these applications are listed below:
Automotive
� Engine oils
� Petrol (Gasoline) engine oils
� Diesel engine oils
� Automatic transmission fluid
� Gearbox fluids
� Brake fluids
� Hydraulic fluids
� Tractor (one lubricant for all systems)
� Universal Tractor Transmission Oil – UTTO
� Super Tractor Oil Universal – STOU – includes engine
� Other motors
� 2-stroke engine oils
29
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
Industrial
� Hydraulic oils
� Air compressor oils
� Gas Compressor oils
� Gear oils
� Bearing and circulating system oils
� Refrigerator compressor oils
� Steam and gas turbine oils
Aviation
� Gas turbine engine oils
� Piston engine oils
� Marine
� Crosshead cylinder oils
� Crosshead Crankcase oils
� Trunk piston engine oils
� Stern tube lubricants
LUBRICANT COMPANIES:
Public Sector Undertakings (PSUs):
� Indian Oil Corporation Limited (IOCL)
� Hindustan Petroleum Corporation Limited (HPCL)
� Bharat Petroleum Corporation Limited (BPCL)
Private Players:
� Reliance Petroleum
� Castrol
� Elf Total-Fina
30
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
� Gulf
� Shell Oil
� Caltex
� Pennzoil
� Mobil
MARKETING CHANNELS:
The marketing channels for automotive lubricants in India consist of the following,
� Petrol Stations
� Wholesale Distributors
� Lube Oil Shops
� Auto Spare Shops
� Authorized Service Stations
� Garages
� Rural & Agricultural dealers
� Super Markets.
31
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
INDIAN
LUBE MARKET
32
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
MARKET STRUCTURE
ERA OF LIBERALIZATION
Prior to 1992 the lube industry in India was controlled by the 4 major Public Sector Oil
companies namely Indian Oil, HPC,BPC & IBP and a handful of private companies like Castrol,
Gulf, Tidewater & others. With the distribution & canalization of base oil import being controlled
by the Government of India, the PSU Oil Companies controlled 90% of the market share. The de-
canalization of the lube base oil imports in 1993 by the Govt. of India followed by reduction of
import duty on lube base oils from 85% to 25% and gradual scrapping of administered pricing
observed the announcement of almost a new lube venture every month during 1994. Most of the
new entrants formed associations with Indian companies both in the Private and Public sectors.
INDIAN AUTOMOTIVE LUBRICANT MARKET
Total demand for finished lubricants in India is estimated at over 1,600 kilo tones. The Lube
market consists of two major segments, automotive and industrial.
The Indian automotive lubricants market is largely price sensitive and volume growth is
stagnating due to longer lasting lubricants. The market is fragmented with over 22 big and small
manufacturers and with the spate of mergers and acquisitions (M&A), only a handful of big
companies enjoy a major market share.
Companies are adopting a more customer-oriented approach where they are likely to focus on
creating brand awareness through print and visual media. For example promotional campaigns
and trade shows offering gifts to their customers are methods of driving sales of automotive
lubricants.
The original equipment segment and retail trade are the two major marketing channels in the
Indian automotive lubricants market. Due to the growing competition, tie-ups with original
equipment manufacturers (OEM) are becoming important as they reinforce the value proposition
of a particular brand.
33
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
Petrol pumps form a major distribution channel in retail trade, however sales of lubricants
through retail outlets (also called ‘the bazaar trade’) has transformed the Indian automotive
lubricants market into a fast moving consumer goods (FMCG) sector. The other marketing
channels are authorized service stations, garages, rural and agricultural dealers, super markets,
and wholesale distributors
Public sector unit (PSU) companies, that manufacture their own base oil, follow different
distribution strategies as compared to private participants that solely dependent on imports.
While PSUs sell through their own wide spread network of petrol stations private manufacturers
prefer retail outlets.
Engine oil, which accounted for over 70.0 percent market share in 2004 in the Indian automotive
lubricants market, plays the most crucial role in deciding the market share of manufacturers.
Increase in demand for four stroke motorcycles, tie ups with original equipment manufacturers,
and implementation of new pollution norms are just some of the key drivers of the engine oil
segment.
The brake oil and coolant is the next largest segment in the Indian automotive lubricants market.
Demand for coolants is increasing due to continuous growth in heavy commercial vehicles,
increasing awareness among the customers, new cooling system technologies, and OEM tie-ups.
In brake oil segment, increasing growth in light commercial vehicles, introduction of new brake
systems, and consumption of lubes by commercial passenger vehicles, and changing customer
mindset regarding specialty lubricants are expected to push demand further.
The market for gear oils is also growing rapidly and has a high potential due to the increasing
number of vehicles on the road. New generation vehicles with advanced gear system
technologies and automatic transmission systems require special type of lubricants resulting in
greater demand for multi axel gear oil and API synthetic gear oil, API GL-5, API MT-1, and
ultra-Matic, which reduce the oil changing intervals.
In the long term, the overall outlook for the automotive lubricants market is expected to be
positive due to the growing Indian economy along with the increased purchasing power of
consumers.
SUCCESS DETERMINANTS OF SELECTED
MARKET SIZE AND GROWTH RATE
Segment wise market share
40%
LUBE MARKET SHARE
AUTOMOTIVE SEGMENT
2- stroke
14%
4- stroke
7%
PCMO
SELECTED LUBRICANT BRANDS
ZE AND GROWTH RATE
60%
LUBE MARKET SHARE
AUTOMOTIVE SEGMENT INDUSTRIAL SEGMENT
Diesel engine oil
71%
PCMO
6%
CNG Oils
2%
MARKET SHARE
34
35
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
Indian Lubricant market comprises about 0.90 MMTPA of the automotive segment and 0.60
MMTPA of the industrial/direct segment.
The Indian automotive lubricant market is the sixth largest market in the world with revenues of
approximately $1.30 billion. Total production of automotive lubricants in India is approximately
8 to 10 percent of global lube production. Indian lube industry has an annual demand of 1 million
tones. Unlike other countries where lubricant demand has witnessed stagnation, the Indian
market has been growing at approximately 7 percent per annum for the past 2 years. The public
sector contributes to over 60 percent of the revenues for this market. MNC’s have 5 percent
market share and the remaining share is held by the unorganized sector. Automotive lubricants
are further divided into diesel lubes and petrol lubes. Diesel lubes comprise 70 percent of the
market and petrol based lubricants cover the rest. As diesel lubes are used by commercial
vehicles, which have to cover greater distances, their market share is higher. Engine oil
constitutes around 83 percent of total sales volumes. Gear oils, transmission fluids, hydraulic
brake fluids, and engine coolants contribute to the balance.
MARKET TERND
In the recent past, the Indian lubricant market has witnessed a phase of consolidation.
Multinationals with better technology, brand name and finances have the power to launch
themselves on their own in the market. However, with increasing number of competitors it is not
possible for everyone to carve a niche in the market. This sector has witnessed considerable
amount of mergers and acquisitions. British Petroleum’s not so recent acquisition of Castrol is
one example. The Indian lubes market is a combative market place and lubricant companies find
themselves fighting a tough battle for survival. In the OE sector also lubricant manufacturing,
companies are entering into collaborations with vehicle manufactures. Maruti Udyog, Hyundai
Motors, Hindustan Motors, TAFE, Toyota, and Skoda have entered into collaboration with IOC
and Castrol for some of their models
36
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
AUTOMOTIVE INDUSTRY
The growth of lubricant industry is directly linked with the growth of automobile industry.
Therefore to grow in lubricant market one has to keep the growth record of automobile industry.
India is the 4th largest car market in Asia (after Japan, Korea & China). For commercial
vehicles, it holds 5th spot in the world. Whereas, for 2-wheelers, India is the second largest
market, next only to China, with both countries accounting of over 50% of global two wheeler
production and sales. The Tractor segment is also making steady progress in India.
According to McKinsey Report – “Auto Components Industry: Vision 2015,” the Indian Auto
Components Industry is envisaging to grow to US$ 33-40 Billion, by 2015 from around US$ 7
Billion, at present.
LUBRICANT INDUSTRY SEGMENTATION
The lubricant industry can be divided into two major categories i.e., Automotive & Industrial
brand of lubricants. The industrial segment basically comprises of Core Sector industries like
Defense, Railways, State Transport Undertakings, Steel Plants, Coal Mines, Fertilizers, Power
Houses, and Chemicals & Heavy Engineering Industries. In the industrial segment, the PSUs
could successfully maintain their stronghold due to the reasons that the requirement is most end
use specific, customer focused, productivity linked & service oriented. Here, price, quality,
performance track record, R&D infrastructure for technology up gradation and product
development for end use specific application & after sales service play the most significant role
& FMCG techniques of promotion and creating illusions takes a back seat. The automotive
segment which accounts for major share i.e., 67% of the lubricant market became soft target for
new entrants and here private sector players could immediately consolidate their market share by
adopting FMCG techniques. PSU oil companies initially restricted their channel of distribution
through their large infrastructure of marketing network i.e, petrol stations & distributor network.
37
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
The focus happened to be on ensuring quality & customer accountability and restrict
mushrooming of spurious trade in bazaar through the marketing channels where some kind of
control could be exercised by the company. The major thrust put by Industry leader like Indian
Oil at this juncture was to promote brand visibility and creation of brand image through
endorsement, TV advertisements & image building at Retail sites.
38
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
SUCCESS DETERMINANTS
39
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
KEY SUCCESS FACTORS FOR LUBRICANTS
Brand Name
A word, group of words, letters, or numbers that represent a product or service; also known as a
product brand. Name used to distinguish one product from its competitors. It can apply to a
single product, an entire product line, or even a company.
Brand Image
With lubricants becoming a fast moving consumer good and the brand preference of the
consumers witnessing a change, brand image plays a key role in affecting the consumer’s
decision to buy a lubricant. In a recent study by Frost & Sullivan, it was found that vehicles
owners’ decision to buy a certain lubricant is affected by a garage mechanic, retail storeowner, or
the advertisements. Hence, it becomes important to have a good brand name in the market, which
can affect the customer’s decision to buy a certain brand.
Proper and Longer Support- Distribution Channels
With increasing number of players in the market, it is vital for the companies to reach a wider
segment of customers. The lubricants market in India is very highly fragmented and complex.
Public limited companies selling primarily through petrol pumps manage to achieve a deeper
penetration. Most of the MNC’s have tied up with oil majors to market their brands like Castrol
with Escorts, Tata BP with Telco. This will help the private companies to establish a wider
access, brand awareness, as well as preference.
good or bad quality, high or low price.
Quality of parent brand
Any product in its start has a parent or the initial product and then further modification or up
gradation is seen in the upcoming new product. If the initial product or the parent had good
quality then this would in turn affect the success of the product in the market.
40
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
New Technology
Any up gradation done in the existing product would reflect its success or not. Introducing new
features to the existing lubricant whether in lube itself or packaging would affect its market
share.
Prices and Promotion
The transformation from the administered pricing mechanism to free pricing has increased the
importance of providing cost effective product to the users. Thus product costing and
competitive pricing are key factors affecting the market.
Above the line (ATL)
ATL is a type of advertising through media such as television, cinema, radio, print, web
banners and web search engines to promote brands. This type of communication is conventional
in nature and is considered impersonal to customers. It differs from BTL advertising, which uses
unconventional brand-building strategies, such as direct mail and printed media (and usually
involves no motion graphics). It is much more effective when the target group is very large and
difficult to define.
The term comes from top business managers and involves the way in which Procter & Gamble,
one of the world’s biggest advertising clients, was charged for its media in the 1950s and 1960s.
Advertising agencies made so much commission from booking media for clients that the creative
generation and actual production costs of making TV ads was free – hence above the line.
Everything else they paid for and were therefore below the line.
Below the line promotion (BTL)
BTL sales promotion is an immediate or delayed incentive to purchase, expressed in cash or in
kind, and having short duration. It is efficient and cost-effective for targeting a limited and
specific group. It uses less conventional methods than the usual ATL channels of advertising,
typically focusing on direct means of communication, most commonly direct mail and e-mail,
often using highly targeted lists of names to maximize response rates. BTL services may include
those for which a fee is agreed upon and charged up front.
41
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
BTL is a common technique used for "touch and feel" products (consumer items where the
customer will rely on immediate information rather than previously researched items). BTL
techniques ensure recall of the brand while at the same time highlighting the features of the
product.
Another BTL technique involves sales personnel deployed at retail stores near targeted products.
This technique may be used to generate trials of newly launched products.
Private companies mostly sell their products through stockiest, dealers, distributors, mechanics,
and retail stores. Maximum sales are achieved through mechanics and retail stores. Margins and
discount schemes offered to the storeowners and mechanics prompt them to sell and promote a
particular brand.
Tie Up with OEMs
Among the PSU Oil Companies Indian Oil is one company who has all along given utmost
importance on tie ups with Original Equipment Manufacturers (OEMs) after signing agreements
with major OEMs like Maruti Udyog Ltd, TELCO, Bajaj Auto, Kinetic Engineering, SKODA
etc. Even initial fill & warranty fill agreements were also signed with TELCO & Hindustan
Motors. In fact, the Japanese vehicle manufacturers prefer to tie up with one or two major oil
manufacturers for use of engine oils as `Genuine Spare Part' of the vehicle whereas the American
vehicle manufacturers prefer to follow the American Petroleum Institute who defines the
performance parameters of engine oils. The Indian vehicle manufacturers follow a route which is
combination of both.
These inner strengths of PSUs and the quality policy adopted by them, even attracted major
multinational players like Shell, Mobil, Exxon & Caltex to enter into tie up with one or the other
PSU to have access to their well established marketing network.
Environment Friendly
Now a days environment awareness is increasing a lot, therefore providing the lubes in
environment friendly packaging could be one factor for success. This is basically the factor
which relates to the packaging, whether providing the lubricant in environment friendly
packaging would affect its success or not.
42
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
STRATEGIES IN LUBRICANT
BUSINESS
43
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
LUBE BUSINESS STRATEGY
To compete with dominant public sector distribution, concepts like "Bazaars" and "Super
Stores" have also been developed. Castrol developed the concept of "Bazaars." These are outlets
meant only for lubricant sales.
The concept of "User Outlet" is another new concept developed by Castrol. In this, the consumer
selects his own brand of lube after giving his vehicle for service in the same outlet. Convenient
stores and highway stops for vehicles are being built from where the vehicle owners can get their
vehicles repaired and get their supply of lubricants.
In this front Indian Oil after emerging as India's largest commercial organization and being the
only company in the country to feature in the Fortune Global 500 listing has adopted structured
business plan approach to strike a balance between conventional marketing channels (petrol
stations)/distribution network and parallel marketing channels (bazaar trade). The parallel
marketing channels chosen by the Company also adopted the path of brand image, customer
focus & customer accountability.
Mergers and acquisitions is another way of increasing market share for any industry. British
Petroleum’s acquisition of Castrol is one example. The Indian lubes market is a combative
market place and lubricant companies find themselves fighting a tough battle for survival. In the
OE sector also lubricant manufacturing, companies are entering into collaborations with vehicle
manufactures. Maruti Udyog, Hyundai Motors, Hindustan Motors, TAFE, Toyota, and Skoda
have entered into collaboration with IOC and Castrol for some of their models.
STRENGTH OF OIL COMPANY
Manufacturing of quality lubricants is guided by two important parameters i.e., resourcing of
consistent premium quality base oils and incorporation of cost & performance effective additive
technology which is privy to the oil company and is an effective tool to establish superiority over
competitors. In this area R & D effort plays a significant role as it has to be end use specific,
location specific, environment specific & at the same time cost effective. Just bringing in
44
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
imported technology without any own & defined resource of quality inputs like base oil may not
be suitable for Indian road/market conditions. Today, technology has become so demanding and
requirement is so stringent that leading institutes like API (American Petroleum Institute) gives
performance approval on the basis of identification & sourcing of base oils. Their approval is on
crude specific, Refinery specific & base oil specific considerations. Bringing in base oils taking
leverage of decanalisation of imports & reduction of duty, putting up blending plants at Tax
holiday locations to remain in the cut throat competition & dumping may or may not yield far
reaching benefits. The need of the hour is long term commitment and not sheer opportunism and
with more competition expected in the coming years, customers will also realize impact of such
approach.
The automotive lubricant trade is gradually becoming wiser today. The traders now understand
the benefits of stocking fast moving & familiar brands instead of overcrowding the shelf space
because there are very few companies in India, who can make the entire range of automotive
products available. It has also been found by the trade that because of working capital constraints
the new entrants are increasing cash discounts resulting in price war and reduction of dealer
margins. For making all the products available at all times a company would need to keep a high
inventory commensurate with the sales volume for which an additional working capital of at
least 35% would be necessary.
OUTLOOK
In the future, growth in the automotive lubricants industry will largely depend on the overall
performance of the economy. In the past one and a half years, the scenario has improved with
higher sales of commercial vehicles and two-wheelers. However, in the future volume growth
will be affected because of use of better quality, long drain lubes. This will increase the
replacement cycle for lubes. In the shorter term, one will witness intense competition in a slow
growing market marked by a consolidation activity, which has the potential to change the face of
the lubricant industry. Given the rising competition, success of a product would largely depend
how well it is branded and distributed
45
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
PRODUCT PORTFOLIO AND
SPECIFICATION
SUCCESS DETERMINANTS OF SELECTED
PRODUCT PORTFOLIO AND
LAAL GHODA 20W40
HP laal ghoda is a multigrade diesel engine oil and economy range diesel engine
API CF and US military MIL-L-
It is recommended for, use in all types of diesel engines in
set and DG set.
Characteristics / Features:
� All round performance
� Engine cleanliness
� Efficient lubrication
Specification:
Kinematic Viscosity cSt @40 deg C
Kinematic Viscosity cSt @100 deg C
Viscosity Index, MIN
Flash point, (COC) C,MIN
Pour Point, C , MAX
Sulphated Ash,%WT,MAX
TBN ,mgKOH/g,MIN
Colour
SELECTED LUBRICANT BRANDS
PRODUCT PORTFOLIO AND SPECIFICATION
multigrade diesel engine oil and economy range diesel engine
-2104B, IS:13656:1993 specification.
It is recommended for, use in all types of diesel engines in truck, bus, muv, tractor, taxi, pump
cSt @40 deg C 130
cSt @100 deg C 13.5-16
110
200
-18
0.8
4.4
Red
46
multigrade diesel engine oil and economy range diesel engine oil. It meets
truck, bus, muv, tractor, taxi, pump
SUCCESS DETERMINANTS OF SELECTED
MILCY TURBO 15W 40
HP Milcy Turbo is a premium quality multi grade Diesel Engine Oil with enhanced
handling capacity which keeps engine clean and reduces
control and sludge control helps to keep the engine in healthier condition.
MB 228.1 & EDL-5 of IS 13656 requirements
Recommended for:
Diesel engines of heavy duty as well as light duty service of
Turbocharged Engines- heavy & light commercial vehicles,
& jeeps.
Characteristics / Features:
� Long drain & Prolonged engine life
� Good control over soot reduces engine wear
� High temperature stability reduces oxidative oil
� Reduced oil consumption
Specification:
Kinematic Viscosity cSt @100 deg C
Viscosity Index, MIN
Flash point, (COC) C,MIN
Pour Point, C , MAX
TBN, mg KOH/g, MIN
SELECTED LUBRICANT BRANDS
remium quality multi grade Diesel Engine Oil with enhanced
handling capacity which keeps engine clean and reduces soot induced wear. Excel
control helps to keep the engine in healthier condition. It m
5 of IS 13656 requirements
engines of heavy duty as well as light duty service of both Naturally Aspirated and
heavy & light commercial vehicles, tractors, multi utility vehicles, cars
Long drain & Prolonged engine life
d control over soot reduces engine wear
High temperature stability reduces oxidative oil thickening
Reduced oil consumption
cSt @100 deg C 14- 15.2
120
190
-21
9
47
remium quality multi grade Diesel Engine Oil with enhanced soot
soot induced wear. Excellent oxidation
It meets API CF-4,
both Naturally Aspirated and
tractors, multi utility vehicles, cars
48
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
CRUISE
HP Cruise is premium quality multi grade engine oil which provides outstanding performance in
all petrol engine passenger cars. It meets API SJ/CD, MIL-L-46152D & E-PL 3/ E-DL 2 of IS:
13656:1993. Recommended as engine oil for all Passenger cars running on petrol.
Characteristics / Features:
� Outstanding engine cleanliness & enhanced engine life
� Excellent lubrication over a wide temperature range
� Improved fuel economy
� Compatible with catalytic converter.
Recommended for:
� M/s Hyundai Motors India
� M/s Mahindra & Mahindra Ltd.
Specification:
Kinematic Viscosity cSt @100 deg C 14-16
Viscosity Index, MIN 120
Flash point, (COC) deg C,MIN 200
Pour Point, deg C , MAX -24
Sulphated Ash,%WT,MAX 1.03
TBN ,mgKOH/g,MIN 6.0
Colour Orange
49
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
CRUISE CLASSIC
HP Cruise Classic is red color superior quality multi grade engine oil for cars made from high
quality base stocks and additives. It meets API SF/CC, MIL-L-46152B & E-PL 2/ E-DL 1 of
engine oil for all passenger cars running on petrol.
Characteristics / Features:
� Outstanding engine cleanliness
� Excellent oxidation stability
� Improved wear protection & extended engine life
� Improved fuel economy
� Compatible with catalytic converter.
Specification:
20W40 20W50
Kinematic Viscosity cSt @100
deg C
14-16 18-20
Viscosity Index, MIN 110 118
Flash point, (COC) deg
C,MIN
200 200
Pour Point, deg C , MAX -21 -21
Sulphated Ash,%WT,MAX 1 1
TBN ,mgKOH/g,MIN 4.19 5.4
Colour Red Red
Approved by:
� M/s Maruti Udyog Ltd.
� M/s Hindustan Motors Ltd.
50
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
RACER 4
HP Racer 4 (20W40) is multipurpose engine oil for lubrication of engine, gear box and wet
clutches in 4- stroke two wheelers. it meets API SG and JASO T903: MA specifications. It is
recommended for use in all 4 stroke motorcycles, scooters, mopeds and scootteretes.
Characteristics / Features:
� Optimized co-efficient of friction
� Excellent oxidation stability
� Sludge and Varnish control
� Gear anti wear and extreme pressure properties.
Specification:
Kinematic Viscosity cSt @100 deg C 1.5-15.5
Viscosity Index, MIN 110
Flash point, (COC) deg C,MIN 200
Pour Point, deg C , MAX -21
Sulphated Ash,%WT,MAX 0.82
TBN ,mgKOH/g,MIN 5.9
Approved by:
� M/s Escorts Yamaha Motors ltd.
� M/s Royal Enfield Motors.
� M/s Bajaj Auto.
51
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
MARKETING CONCEPTS
SUCCESS DETERMINANTS OF SELECTED
POTER’S FIVE FORCES
EXSISTING RIVALRY AMONG COMPETITORS
� Lubricant market is highly competitive, with mor
� Major competitors are Castrol, BPCL
� Strong product promotions
PCMO and FOUR STOKE (Castrol magnetec) segment
� Quality of parent brand-
impact on customers mind, therefore driving the customer to buy
� Strong distribution channel
BARGAINING POWER OF SUPPLIE
� Lube base stock is obtained from its own (HPCL) refinery
bargaining power
� May or may not depend on IOCL and
BARGAINING
POWER OF
SUPPLIER
SELECTED LUBRICANT BRANDS
POTER’S FIVE FORCES
EXSISTING RIVALRY AMONG COMPETITORS
Lubricant market is highly competitive, with more than 30 players in the market
are Castrol, BPCL, IOCL, Gulf, Valvoline
Strong product promotions through advertisements for example Castrol is doing for its
PCMO and FOUR STOKE (Castrol magnetec) segment
- quality of first brand launched by the competitors have good
impact on customers mind, therefore driving the customer to buy the current brand
Strong distribution channel- Castrol has strong hold on bazaar shops
BARGAINING POWER OF SUPPLIER
Lube base stock is obtained from its own (HPCL) refinery, hence have some control over
May or may not depend on IOCL and BPCL
RIVALRY
AMONG
EXSISTING
COMPETITORS
THREAT OF
NEW
ENTRANTS
BARGAINING
POWER OF
BUYER
THREAT OF
SUBTITUTE
PRODUCTS
52
e than 30 players in the market
through advertisements for example Castrol is doing for its
quality of first brand launched by the competitors have good
the current brand
, hence have some control over
53
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
BARGAINING POWER OF BUYER
Bargaining power of consumer in high because of large number of competitors, therefore
consumer has many choices.
� Margins for retailers and bazaar shop owners
� Schemes provided for retailers, mechanics.
� Product variety/ differentiation based on pack size, based on quality or specification
� Quantity/ volume purchased (KL) per month by buyer- Based on the amount ordered the
schemes can be provided to the retailers and bazaar shop owners.
� Importance of product to the buyer- Whether the brand is providing all the benefits or not
� Credit period to the buyer, whether the period is 1 month or more
� Quality of pack- Attractive packaging (sticker, labeling), packaging material
� Cost of lubes is low as compared to Castrol, Valvoline, Gulf etc.
THREAT OF SUBTITUTE PRODUCTS
No substitutes
THREAT OF NEW ENTRANTS
� Government policies- Decanalization of lubricant industry in 1993, gave entry to private
players.
� New technology- IOCL to launch biodegradable lubricant.
� Cost advantage- Provide same segment lubricant brand at lower price.
� Entry barrier- Brand name and image of existing brand and distribution network.
SUCCESS DETERMINANTS OF SELECTED
SWOT ANALYSIS
STRENGTH
� Prices are comparatively low
� Consumer have good image about the company
� Laal ghoda has made position
product is concerned.
� Schemes offered to consumers are good
� Manufactures raw material (LOBS) for lubricants thus having control over margins
� Retail outlet as strong distributional channel.
STRENGTH
OPPORTUNITY
SELECTED LUBRICANT BRANDS
Prices are comparatively low.
Consumer have good image about the company.
Laal ghoda has made position as low price DEO, which is competitive as per cost of
Schemes offered to consumers are good.
Manufactures raw material (LOBS) for lubricants thus having control over margins
distributional channel.
STRENGTH WEAKNESS
THREATSOPPORTUNITY
54
as low price DEO, which is competitive as per cost of
Manufactures raw material (LOBS) for lubricants thus having control over margins.
55
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
WEAKNESS
� Low above the line (ATL) activities such as advertisements through media, hoardings,
bill boards etc.
Since lubricant marketing is same as that of FMCG products therefore requires continuous media
promotion as a reminder to the customers.
� Packaging of Racer 4 is not attractive specially the label and sticker.
� Laal Ghoda is used only for top-up purpose. Also, most of customers use this brand for
pressure jack oil, not as engine oil.
� Has lower percentage occupancy of lubes in bazaar shop shelf, which is around 10-12%.
OPPORTUNITY
� Tie ups with OEMs (original equipment manufacturers) such as with Eicher Motors, Tata
Motors, Volvo etc. specifically in DEO segment.
� Expansion in rural India, auto firms have begun tapping the countryside. For instance,
Maruti Suzuki generates 10 per cent of its sales from rural sales, amounting to 32,000
cars.
THREATS
� Increasing market share of Valvoline and IOCL in Delhi NCR region.
� High duplicity in market leads to low pull for product.
56
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
SAMPLE MARKET ANALYSIS
57
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
SAMPLING PLAN
In the project two types of sampling techniques are used judgmental and convenience sampling.
� Judgmental sampling through expert opinions within HPCL.
� Convenience sampling was done during field survey based on convenience of bazaar
shops and retail outlets.
Survey was conducted in Delhi, Mumbai, Pune and Jaipur. Data was collected from both bazaar
shops and retail outlets.
Table showing number of sample collected from each city:
CITY DEO (laal ghoda and
milcy turbo)
PCMO (cruise and
cruise classic)
4T (racer 4)
Bazaar
shop
Retail
outlet
Bazaar
shop
Retail
outlet
Bazaar
shop
Retail
outlet
Delhi 7 3 6 2 3 1
Mumbai 10 3 7 2 3 1
Jaipur 12 3 1 1 9 2
Pune 12 2 3 1 9 2
Therefore a total of 105 questionnaires for HPCL are collected, out of which 82 are from bazaar
shop and 23 from retail outlets. Survey data collected for Diesel engine oil segment are 41, for
passenger car motor oil are 17 and four stroke oil are 24.
58
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
SAMPLE DATA AND ANALYSIS
Response of managers across various strategic dimensions within HPCL
Strategic Dimensions Hindustan Petroleum Corporation Ltd.
Degree to which you focus
your effort in terms of:
Width of your product line. Target customer segment. Geographic spread of markets served.
Medium to high Medium to high High
The degree to which you
seek brand identification
rather competition based on:
Price Other variables
Medium to high Medium
Degree to which you seek to
develop brand identification
with end consumer:
Directly on your own Through distributional channel
Medium to high Medium
The choice of distributional
channel based on:
Bazaar Trade Petrol pumps
Low to Medium Medium to high
Level of product quality: Raw materials Features
Low to medium Medium to high
Degree to which you provide
ancillary services, schemes
etc. with your product line
Medium to High
Price position of your
product in market relative
to:
Cost position Product Quality
Medium to high Low
59
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
Data collected from bazaar shops and retail outlets is represented in form of percentage of people
agreeing for the reason for success of that particular brand. This data obtained is plotted between
percentages of people agreeing versus reasons for success of the brand.
Delhi bazaar shops
Reasons For success Laal
ghoda(%)
Milcy
Turbo%
Cruise% Cruise
classic%
Racer
4(%)
Brand name 71.4 85.7 100 100 66.6
Brand Image 71.4 85.7 100 100 100
Quality of parent brand 42.8 42.8 83.3 83.3 66.6
Positioning of brand in the
mind of consumer
71.4 85.7 66.6 66.6 66.6
Proper and longer support
(distributional channel)
28 71.4 50 50 33.3
Quality of pack 14.2 85.7 83.3 83.3 33.3
Variety of pack 85.7 42.8 66.6 66.6 33.3
New Technology 0 42.8 16.6 16.6 33.3
Making product
environment friendly
0 0 0 0 0
Brand promotion- ATL 42.8 71.4 83.3 83.3 66.6
Brand promotion- BTL 14.2 14.2 66.6 66.6 33.3
Accreditations/
Recommendations
- - 16.6 16.6 25
60
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
Analysis of Delhi bazaar shop
The table clearly shows that for Laal Ghoda the key success factors are brand name, brand
image, positioning in the mind of customer and variety of pack, whereas for Milcy Turbo it is the
brand name, brand image, positioning in the mind of consumer, quality of pack, proper and
longer support, and above the line promotion are dominant factor for its success.
For Cruise and Cruise Classic brand name, brand image, quality of parent brand, positioning of
brand in the mind of consumer, variety of pack, quality of pack, above the line promotion and
below the line promotion are the success determinants.
For Racer 4 brand name, brand image, quality of parent brand, positioning in the mind of
consumer, and above the line promotion are the reasons for its success.
61
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
Jaipur Bazaar Shop
Reasons For success Laal ghoda Milcy
Turbo
Cruise Cruise
classic
Racer4
Brand name 83.3 100 100 100 88.8
Brand Image 83.3 `100 100 100 88.8
Quality of parent brand 75 91.6 100 100 77.7
Positioning of brand in the
mind of consumer
91.6 100 100 100 88.8
Proper and longer support 91.6 100 100 100 88.8
Quality of pack 16.6 66.6 0 0 77.7
Variety of pack 83.3 25 100 100 25
New Technology 8.3 8.3 0 0 0
Making product
environment friendly
0 0 0 0 0
Brand promotion- ATL 75 100 100 100 100
Brand promotion- BTL 83.3 100 100 100 100
Accreditations/
Recommendations
- - 16.6 16.6 -
62
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
Analysis of Jaipur bazaar shop
The table clearly shows that for Laal Ghoda the key success factors are brand name, brand
image, quality of parent brand, positioning in the mind of customer, proper and longer support
variety of pack, above the line and below the line promotion, whereas for Milcy Turbo it is the
brand name , brand image, quality of parent brand, positioning in the mind of consumer, quality
of pack, proper and longer support, above the line promotion and below the line promotion are
dominant factor for its success.
For Cruise and Cruise Classic brand name, brand image, quality of parent brand, positioning of
brand in the mind of consumer, proper and longer support, above the line promotion and below
the line promotion are the success determinants.
For Racer 4 brand name, brand image, quality of parent brand, positioning in the mind of
consumer, proper and longer support, quality of pack and above the line promotion and below
the line promotion are the reasons for its success.
63
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
Mumbai Bazaar Shop
Reasons For success Laal ghoda Milcy
Turbo
Cruise Cruise
classic
Racer4
Brand name 88 100 85.7 100 100
Brand Image 80 90 100 85.7 100
Quality of parent brand 70 80 85.7 85.7 100
Positioning of brand in the
mind of consumer
70 80 100 100 100
Proper and longer support 60 90 85.7 71.4 100
Quality of pack 30 70 42.8 57.1 100
Variety of pack 70 30 28.5 14.2 0
New Technology 0 10 0 0 0
Making product
environment friendly
0 0 0 0 0
Brand promotion- ATL 30 90 100 100 100
Brand promotion- BTL 40 80 85.7 85.7 100
Accreditations/
Recommendations
- - 17 17 -
64
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
Analysis of Mumbai bazaar shop
The table clearly shows that for Laal Ghoda the key success factors are brand name, brand
image, quality of parent brand, positioning in the mind of customer, proper and longer support
and variety of pack, whereas for Milcy Turbo it is the quality of parent brand, positioning in the
mind of consumer, quality of pack, above the line promotion and below the line promotion
proper and longer support are dominant factor for its success.
For Cruise and Cruise Classic brand name, brand image, quality of parent brand, positioning of
brand in the mind of consumer, proper and longer support, above the line promotion and below
the line promotion are the success determinants.
For Racer 4 brand name, brand image, quality of parent brand, positioning in the mind of
consumer, proper and longer support, above the line promotion and below the line promotion are
the reasons for its success.
65
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
Pune Bazaar Shop
Reasons For success Laal ghoda Milcy
Turbo
Cruise Cruise
classic
Racer4
Brand name 66.6 58.3 100 100 100
Brand Image 33.3 58.3 100 100 100
Quality of parent brand 58.3 83.3 100 100 88.8
Positioning of brand in the
mind of consumer
83.3 58.3 66.6 66.6 77.7
Proper and longer support 75 83.3 100 100 100
Quality of pack 8.3 0 33.3 33.3 22.2
Variety of pack 0 16.6 33.3 33.3 22.2
New Technology 0 33.3 33.3 33.3 11.1
Making product
environment friendly
0 0 0 0 0
Brand promotion- ATL 41.6 33.3 33.3 33.3 66.6
Brand promotion- BTL 58.3 75 100 100 77.7
Accreditations/
Recommendations
- - 100 100 22.2
66
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
Analysis of Pune bazaar shop
The table clearly shows that for Laal Ghoda the key success factors are brand name, positioning
in the mind of customer and proper and longer support, whereas for Milcy Turbo it is the quality
of parent brand, proper and longer support and below the line activity is dominant factor for its
success.
For Cruise and Cruise Classic brand name, brand image, quality of parent brand, positioning of
brand in the mind of consumer, proper and longer support and below the line promotion are the
success determinants.
For Racer 4 brand name, brand image, quality of parent brand, positioning in the mind of
consumer, proper and longer support, above the line promotion and below the line promotion are
the reasons for its success.
67
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
CONCLUSION
68
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
CONCLUSION
Those determinants are taken as a success determinant, which the bazaar shop owners and
retailers have agreed up to 60%. Thus conclusion is obtained brand wise for the reasons for the
success of that particular brand.
Key determinants from bazaar shop survey are:
Laal Ghoda Milcy Turbo Cruise Cruise Classic Racer 4
Brand name Brand name Brand name Brand name Brand name
Brand image Brand image Brand image Brand image Brand image
Quality of parent
brand
Quality of parent
brand
Quality of parent
brand
Quality of parent
brand
Quality of parent
brand
Positioning of brand
in the mind of
consumer
Positioning of
brand in the mind
of consumer
Positioning of
brand in the mind
of consumer
Positioning of
brand in the mind
of consumer
Positioning of
brand in the mind
of consumer
Proper and longer
support
Proper and longer
support
Quality of pack Proper and longer
support
Proper and longer
support
Variety of packs Brand promotion-
ATL
Brand promotion-
ATL
Quality of pack Brand promotion-
ATL
Brand Promotion-
BTL
Brand Promotion-
BTL
Brand promotion-
ATL
Brand Promotion-
BTL
Brand Promotion-
BTL
69
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
Key determinants from retail outlet survey are:
Laal Ghoda Milcy Turbo Cruise Cruise Classic Racer 4
Brand name Brand name Brand name Brand name Brand name
Brand image Brand image Brand image Brand image Brand image
Quality of parent
brand
Quality of parent
brand
Quality of parent
brand
Quality of parent
brand
Quality of parent
brand
Positioning of
brand in the
mind of
consumer
Positioning of
brand in the mind
of consumer
Positioning of
brand in the mind
of consumer
Positioning of
brand in the mind
of consumer
Positioning of
brand in the mind
of consumer
Proper and
longer support
Proper and longer
support
Brand promotion-
ATL
Brand promotion-
ATL
Brand promotion-
ATL
Quality of pack Brand Promotion-
BTL
Brand Promotion-
BTL
Brand Promotion-
BTL
Brand promotion-
ATL
Brand Promotion-
BTL
70
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
RECOMMENDATIONS / CONCLUSIONS
Thus the basic reasons for the success of any brand depends on the seven factors, these are:
� Brand Name
� Brand Image
� Positioning in the mind of consumer
� Quality of parent brand
� Proper and longer support
� Above the Line - Promotion
� Below the line – Promotion
These factors are one or the other way of communicating the product to the customers.
For Example:
� HP Milcy Toofan to HP Milcy Turbo, the change in brand name relates that brand name
should able to convey or able to communicate to the customer the type of segment it is
meant for.
� Media promotion, showing a “Oil man” with a tag line “ your engine’s engineer”
� Promotion through sponsorship like Castrol has done in FIFA world cup.
71
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
OTHER RECOMMENDATIONS
For DEO
� Aggressive media promotion.
� Increase visibility of the brand.
For PCMO
� Strategic Alliance: More tie-ups with OEMs, which would help in increasing the sale at
retail outlets through service stations.
� Introducing “free service programs at retail outlets”.
� New Distribution system: Making product available at OEM workshops and service
stations.
For FOUR STROKE
� Below the line promotion should be aggressive- through mechanics.
� Awareness among mechanics for the brand- through schemes.
� Sponsorships- Sponsoring the events like sports, T.V. program (MTV roadies) would
increase publicity.
� Celebrity branding.
72
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
ANNEXURE
73
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
GRAPHS
SUCCESS DETERMINANTS OF SELECTED
GRAPHS FOR BAZAAR SHOPS
FOR DIESEL ENGINE OIL
LAAL GHODA
77.3
6761.5
79
0
10
20
30
40
50
60
70
80
90
Percentage of retailer agreeing for the reasons behind the success of Laal Ghoda
SELECTED LUBRICANT BRANDS
FOR BAZAAR SHOPS
79
63.7
17.1
65.7
2 0
47
Percentage of retailer agreeing for the reasons behind the success of Laal Ghoda
74
4742
0
Percentage of retailer agreeing for the reasons behind the success of Laal Ghoda
SUCCESS DETERMINANTS OF SELECTED
MILCY TURBO
84
7074
0
10
20
30
40
50
60
70
80
90
100
Percentage of retailer agreeing for the reasons behind the success of Milcy Turbo
SELECTED LUBRICANT BRANDS
80.786
55
2823
0
73
Percentage of retailer agreeing for the reasons behind the success of Milcy Turbo
75
73
67
0
Percentage of retailer agreeing for the reasons behind the success of Milcy Turbo
SUCCESS DETERMINANTS OF SELECTED
FOR PASSENGER CAR MOTOR OIL
CRUISE
96100
92
0
20
40
60
80
100
120
Percentage of retailer agreeing for the reasons behind the success of Cruise
SELECTED LUBRICANT BRANDS
FOR PASSENGER CAR MOTOR OIL
83
5864
31
12
0
Percentage of retailer agreeing for the reasons behind the success of Cruise
76
7987
33.3
Percentage of retailer agreeing for the reasons behind the success of Cruise
SUCCESS DETERMINANTS OF SELECTED
CRUISE CLASSIC
10096
92
0
20
40
60
80
100
120
Percentage of retailer agreeing for the reasons behind the success of Cruise Classic
SELECTED LUBRICANT BRANDS
8380
68
28.4
12.4
0
Percentage of retailer agreeing for the reasons behind the success of Cruise Classic
77
79
88
33.3
Percentage of retailer agreeing for the reasons behind the success of Cruise Classic
SUCCESS DETERMINANTS OF SELECTED
FOUR STROKE
88.5
97
88.5
0
20
40
60
80
100
120
Percentage of retailer agreeing for the reasons behind the success of Racer 4
SELECTED LUBRICANT BRANDS
82.780
58
20
11.1
0
Percentage of retailer agreeing for the reasons behind the success of Racer 4
78
8377.5
55
Percentage of retailer agreeing for the reasons behind the success of Racer 4
SUCCESS DETERMINANTS OF SELECTED
GRAPHS FOR RETAIL OUTLET
FOR DIESEL ENGINE OIL
81 81
72.7
90.9
0
10
20
30
40
50
60
70
80
90
100
Percentage of retailer agreeing for the reasons behind the success of Laal Ghoda
SELECTED LUBRICANT BRANDS
GRAPHS FOR RETAIL OUTLET
90.9
63.3
11
54.5
18.18
0
36.6
Percentage of retailer agreeing for the reasons behind the success of Laal Ghoda
79
45.45
0
Percentage of retailer agreeing for the reasons behind the success of Laal Ghoda
SUCCESS DETERMINANTS OF SELECTED
MILCY TURBO
90.9 90.9
81
0
10
20
30
40
50
60
70
80
90
100
Percentage of retailer agreeing for the reasons behind the success of Milcy Turbo
SELECTED LUBRICANT BRANDS
90.9
63.3
72.7
45.4
27.2
0
90.9
Percentage of retailer agreeing for the reasons behind the success of Milcy Turbo
80
90.9
72.7
0
Percentage of retailer agreeing for the reasons behind the success of Milcy Turbo
SUCCESS DETERMINANTS OF SELECTED
PASSENGER CAR MOTOR OIL
CRUISE
83.3 83.3
66.6 66.6
0
10
20
30
40
50
60
70
80
90
Percentage of retailer agreeing for the reasons behind the success of Cruise
SELECTED LUBRICANT BRANDS
PASSENGER CAR MOTOR OIL
66.6
33.3
50 50 50
0
83.3
Percentage of retailer agreeing for the reasons behind the success of Cruise
81
83.3
50
Percentage of retailer agreeing for the reasons behind the success of Cruise
SUCCESS DETERMINANTS OF SELECTED
CRUISE CLASSIC
83.3 83.3
66.6
0
10
20
30
40
50
60
70
80
90
Percentage of retailer agreeing for the reasons behind the success of Cruise Classic
SELECTED LUBRICANT BRANDS
66.6
33.3
50 50 50
0
Percentage of retailer agreeing for the reasons behind the success of Cruise Classic
82
83.3 83.3
57
Percentage of retailer agreeing for the reasons behind the success of Cruise Classic
SUCCESS DETERMINANTS OF SELECTED
FOUR STROKE
66.6
83.3
66.6
83.3
0
10
20
30
40
50
60
70
80
90
Percentage of retailer agreeing for the reasons behind the success of Racer 4
SELECTED LUBRICANT BRANDS
83.3 83.3
33.3
16.6
33.3
0
83.3
Percentage of retailer agreeing for the reasons behind the success of Racer 4
83
83.3
66.6
50
Percentage of retailer agreeing for the reasons behind the success of Racer 4
84
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
LIST OF RETAILERS AND BAZAAR SHOPS
BAZAAR SHOPS AND RETAIL OUTLET SURVEYED
� Aggrawal Petrochem
� Goyal Sales corporation
� G.S.Lubes
� Hindustan Lube oil Co.
� Om Motors
� Universal Oil
� Aggrawal oil Co.
� Vinsol Oil Co.
� Laxmi Oil Lubricants
� Satnam Automobile
� M/S Olympic Oil
� S.M Motors
� Bunty Auto parts
� Darshan Motors
� Singh automobiles
� Kholi Autoparts
� Jungpura motors Store
� M/S Garg oilCo.
� M/s Barkat laal & Roshan Laal
� Navkar trading Co.
� Sanchit Trading Co.
� Malhotra Petrochem
� Hindon Motors & Spares
� Varinder Motors & repairs
� Sahni Petroleums
� Vadhera oil Co.
� Paras lubricants
85
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
� Jain motors & repairs
� Winstrol Petrochemical
� Mittal Oil Co.
� Arihant energy Solutions
� Prakash oil Coorp.
� Prem oil Company
� Hindustan service station
� Chadha oil company
� Anand service station
� Ever green service station
� Angara H.P centre
� Dhaulakuan service station
86
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
ABBREVATIONS
DEO- Diesel Engine Oil
PCMO- Passenger Car Motor Oil
4T- Four Stroke
ATL- Above The Line
BTL- Below The line
OEM- Original Equipment Manufacturer
MRP- Maximum Retail Price
API- American Petroleum Institute
STLE- Society of Tribologists and Lubrication Engineers
NLGI- National Lubricating Grease institute
SAE- Society of Automotive Engineers
ILMA- Independent lubricant manufacturer association
ACEA- European Automobile Manufacturers Association JAS0- Japanese Automotive Standards
Organization
HPCL- Hindustan Petroleum Corporation
BPCL- Bharat Petroleum Corporation
IOCL- Indian oil Corporation
CIL- Castrol India Limited
PSU- Public Sector Undertaking
MNC- Multinational Company
87
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
MMTPA- Million Metric Tonnes Per Annum
MGO- Maruti Genuine Oil
AMA- American Marketing association
MBA- Master of Business Administration
88
SUCCESS DETERMINANTS OF SELECTED LUBRICANT BRANDS
REFERENCE
� HPCL site- http://www.hindustanpetroleum.com/En/UI/LubesHome.aspx ,
http://www.hindustanpetroleum.com/En/UI/Home.aspx
� http://en.wikipedia.org/wiki/Lubricants, API 1509, Engine Oil Licensing and
Certification System, 15th Edition, 2002. Appendix E, API Base Oil Interchangeability
Guidelines for Passenger Car Motor Oils and Diesel Engine Oils
� www.thehindubusinessline.com-
http://www.blonnet.com/catalyst/2005/11/17/stories/2005111700020100.htm
� www.bharatbook.com-
http://www.bharatbook.com/general/searchresults.asp?cx=015290539315878563373:km
okkcuchgw&cof=FORID:11&q=lubricants&srchgo.x=0&srchgo.y=0&srchgo=Go
� www.ibscdc.org-
http://www.ibscdc.org/Case_Studies/Strategy/Growth%20Strategies/GRS0233A.htm
� www.frost.com-http://www.frost.com/prod/servlet/report-
toc.pag?ctxixpLink=FcmCtx1&searchQuery=lubricants+in+india&repid=4B40-01-00-
00-
00&bdata=aHR0cDovL3d3dy5mcm9zdC5jb20vc3JjaC9jYXRhbG9nLXNlYXJjaC5kbz9
4PTAmeT0wJnF1ZXJ5VGV4dD1sdWJyaWNhbnRzK2luK2luZGlhJnBhZ2VTaXplPTh
AfkBTZWFyY2ggUmVzdWx0c0B%2BQDEyODgxODgyMTA0ODA%3D&ctxixpLab
el=FcmCtx2
� www.klinegroup.com-klinegroup.com/2010/.../the-passenger-car-lubricants-market-in-
india-leapfrogs-quality-levels/
� www.shilpabichitra.com- http://www.shilpabichitra.com/shilpa2000/indart32.htm
� www.ibef.org- http://www.ibef.org/download/IBEFreport_april6.pdf
� indiaanalysis.com/Indian%20lubricants%20press%20release%20(070408).pdf
� www.motorindiaonline.com/.../valvoline-proves-fastest-growing-indian.html.
top related