consumer perception towards indian oil in kolar

CHAPTER-1

INTRODUCTION

PART A:

INDUSTRYPROFILE:

Indian Oil Corporation Ltd. (IOC) is the flagship national oil company in

the downstream sector. The Indian Oil Group of companies owns and

operates 10 of India's 19 refineries with a combined refining capacity of

1.2 million barrels per day. These include two refineries of subsidiary

Chennai Petroleum Corporation Ltd. (CPCL) and one of Bongaigaon

Refinery and Petrochemicals Limited (BRPL). The 10 refineries are

located at Guwahati, Barauni, Koyali, Haldia, Mathura, Digboi, Panipat,

Chennai, Narimanam, and Bongaigaon. Indian Oil's cross-country crude

oil and product pipelines network span over 9,300 km.

Indian Oil Corporation Ltd. (IndianOil) was formed in 1964 through the

merger of Indian Oil Company Ltd and Indian Refineries Ltd. Indian

Refineries Ltd was formed in 1958, with Feroze Gandhi as Chairman and

Indian Oil Company Ltd. was established on 30th June 1959 with Mr. S.

Nijalingappa as the first Chairman. In 1964, Indian Oil commissioned

Barauni Refinery and the first petroleum product pipeline from Guwahati.

In 1965, Gujarat Refinery was inaugurated. In 1967, Haldia Baraurii

Pipeline (HBPL) was commissioned. In 1972, Indian Oil launched

SERVO, the first indigenous lubricant. In 1974, Indian Oil Blending Ltd.

(IOBL) became the wholly owned subsidiary of Indian Oil. In 1975,

Haldia Refinery was commissioned. In 1981, Digboi Refinery and Assam

Oil Company's (AOC) marketing operations came under the control of

Indian Oil. In 1982, Mathura Refinery and Mathura-Jalandhar Pipeline

(MJPL) were commissioned. In 1994, India's First Hydrocracker Unit

was commissioned at Gujarat Refinery. In 1995, 1,443 km. long Kandla-

Bhatinda Pipeline (KBPL) was commissioned at Sanganer. In 1998,

Panipat Refinery was commissioned. In the same year, Haldia, Barauni

Crude Oil Pipeline (HBCPL) was completed. In 2000, Indian Oil crossed

the turnover of Rs l, 00,000 crore and became the first Corporate in India

to do so. In the same year Indian Oil entered into Exploration &

Production (E&P) with the award of two exploration blocks to Indian Oil

and ONGC consortium under NELP-I. In 2003, Lanka IOC Pvt. Ltd.

(LIOC) was launched in Sri Lanka. In 2005, Indian Oil's Mathura

Refinery became the first refinery in India to attain the capability of

producing entire quantity of Euro-III compliant diesel.

Major Achievements of Indian Oil Corporation

Currently India's largest company by sales.

Highest ranked Indian company in the prestigious Fortune 'Global

500' listing, at 135th position.

20th largest petroleum company in the world.

Note: The above information was last updated on 21-07-2007

BRIEF HISTORY:

India’s Flagship National Oil Company:

Beginning in 1959 as Indian Oil Company Ltd., Indian Oil Corporation

Ltd. was formed in 1964 with the merger of Indian Refineries limited.

(Est. 1958).As India’s flagship national oil company, Indian Oil alone

accounts for 51.2% petroleum products market share among PSU

companies, 42% national refining capacity and 67% downstream pipeline

throughput capacity. The Indian Oil group of companies owns and

operates 10 of India’s 18 refineries with a current combined rated

capacity of 52.80 million metric tonnes per annum (MMTPA) or one

million barrels per day (bpd). These include two refineries of subsidiary

Chennai Petroleum Corporation Ltd and one of Bongaigaon Petroleum

Corporation Limited. Indian Oil owns and operates the country’s largest

network of cross-country crude oil and product pipelines of 7,575 km,

with a combined capacity of 56.85 MMPTA. To maintain its strategic

edge in the market place, Indian Oil has planned investments to the tune

of Rs. 24,400 crore during the X Plan period (2004-09), mainly in linear

integration & diversification projects, besides refining and pipeline

capacity expansions, product quality up gradation and retail operations.

GROWTH AND PROSPECTS

Indian Oil’s countrywide network of over 22,000 sales points is backed

for supplies by its extensive, well spread out marketing infrastructure

comprising:

162 bulk storage terminals, installations and depots

94 aviation fuelling stations and 87 LPG bottling plants.

Its subsidiary, IBP Co. Ltd, is a stand-alone marketing company with a

nationwide network of over 3,000 retail sales points. For the year 2003-

04, Indian Oil sold 48.60 million tonnes of petroleum products, including

exports of 1.81 million tonnes. It’s seven own refineries achieved a

throughput of 37.66 million tonnes, and the pipeline network transported

44.50 million tonnes of crude oil and petroleum products.

CUSTOMER CARE:

Customer delight is the key driver of Indian Oil’s marketing operations.

Under the XTRA retail outlet brand unveiled during the 2003-04, Indian

Oil is making customers visiting its petrol and diesel stations a number of

XTRA offerings, including assured quality and quantity, efficient

forecourt service and high levels of housekeeping, choice of regular and

branded fuels, 100% electronic dispensing, cashless transactions, loyalty

programmes for cash & credit customers, and a number of non-fuel

offerings tailor-made to customer profile and requirements.

ACADEMY COMPANY

Indian Oil is an “academy” company with a score of full-fledged training

centres across the country building skills and competencies among Indian

Oil People to face the challenges of the market place. Among these, the

Indian Oil institute of petroleum management (IIPM) Gurgaon, the Indian

Oil management centre for Learning at Mumbai, and the Indian Oil

Management Academy at Halide have emerged as world-class training

and management academies. IIPM is launching a one-year post-graduate

programme in management, with specialisation in energy, this year in

association with Indian Institute of Management-Ahmadabad (IIM-A) to

nurture management leaders in the sector

PIONEERING R & D:

Indian Oil’s world-class R&D centre has won recognition for its

pioneering work in lubricants formulation, refinery processes, pipeline

transportation and alternative fuels. It has developed over 2,100

formulations of SERVO brand lubricants and greases for virtually all

conceivable applications automotive, railroad, industrial and marine-

meeting stringent international standards and bearing the stamp of

approval of all major original equipment manufacturers. A wholly-owned

subsidiary company, Indian Oil Technologies Ltd., is commercialising

the innovations and technologies of the centre, which has over 140

national and international patents to its credit. Apart from leadership in

development and commercialisation of bio-fuels, the R&D Centre is

currently the nodal agency of the hydrocarbon sector in India for ushering

in Hydrogen fuel in the country.

EXPANDING HORIZONS:

Indian Oil is currently metamorphosing from a pure sectoral company

with dominance in downstream in India to a vertically integrated,

transnationals energy behemoth. The corporation is implementing a

master plan to emerge as a major player in petrochemicals by integrating

its core refining business with petrochemical activities, besides making

large investments in E&P and import/marketing ventures for oil and gas

in India and abroad.

SPREADING WINGS:

Indian Oil is also strengthening its existing overseas marketing ventures

and simultaneously scouting new opportunities for marketing and export

of petroleum products to new energy markets in Asia and Africa. Two

wholly owned subsidiaries are already operational in Sri Lanka and

Mauritius, and a regional office at Dubai is coordinating expansion of

business activities in Middle East region. Within a year of incorporation,

Lanka IOC Pvt. Ltd. (LIOC) has captured a 25% market share in

Srilanka, with a target to take it to about 40% in the near future. Indian

Oil is investing US$ 18 million in Mauritius through its subsidiary,

Indian Oil Mauritius Ltd. (IOML), to set up a range of marketing

infrastructure there.

The corporation has launched 11 joint ventures in partnership with some

of the most respected corporate from India and abroad- Lubrizol, Nyco

SA, Patrons, Oil tanking GmbH, Marubeni, to name a few. SERVO

lubricants are being marketed in Dubai, Nepal, Bhutan, Kuwait,

Malaysia, Bahrain, Indonesia, Srilanka, Kyrgyzstan, Mauritius,

Bangladesh, etc. Indian Oil has been lending its expertise for nearly two

decades to various countries in several areas of refining, marketing,

transportation, training and research & development. These include

Srilanka, Kuwait, Bahrain, Iraq, Abu Dhabi, Tanzania, Ethiopia, Algeria,

Nigeria, Nepal, Bhutan, Maldives, Malaysia and Zambia. Indian Oil’s

sincere commitment to Quality, safety, Health and Environment is

reflected in the series of national and international certifications and

awards earned over the years. The 17th largest Petroleum company in the

world, Indian Oil, is well on its way to becoming an integrated,

transnationals energy corporate.

PART B:

ABOUT SUBJECT:

THEORETICAL BACKGROUND OF STUDY:

MARKETING CONCEPT:

Marketing has its origin in fact that humans are creatures of needs and

wants. Since many products can satisfy a given need, product choice is

guided by the concepts of value, cost, and satisfaction. These products are

obtainable in several ways, self-production, coercion, and exchange.

Marketing arises from this last approach to acquiring products. The whole

of marketing as based on the process of exchange for the purpose of

satisfying human needs and wants. According to “Philip Kotler”.

“Marketing is human activity directed as satisfying needs and wants

through exchange process”.“According to American Marketing

association (AMA)”. “Marketing is the performance of these business

activities that directs the flow of goods and services from producers to

consumers”

MODERN DEFINITION OF MARKETING

“Marketing is a social and management process by which individuals and

groups obtain what they need and want through creating offering and

exchange products of values with others”

THE CORE CONCEPT OF MARKETING

IMPORTANCE AND OTHER RELEVANT ASPECTS OF

THE SUBJECT:

The marketing concept holds that key to achieve organizational goals

consists in determining the needs and wants of target market and

delivering the desired satisfaction more effectively than Co petitioners.

NEEDS

MARKETING

TRANSACTION

EXCHANGE

VALUE, COST &SATISFACTION

WANTS

DEMAND

PRODUCT

TARGET MARKET:

No company can operate in every market and satisfy its needs. No

company can do better without a broad market. Companies can do their

best when they define their market, customer needs with co-ordinate

marketing efforts. Actually the concept rest on four main pillars namely

target, customer needs, co-ordinate marketing and profitability.

STARTING

POINT

FOCUS MEANS ENDS

Target Customer Co-ordination Profit

through

Market Needs Marketing Customer

Satisfaction

VALUE OF MARKETING CONCEPT:

1. PRODUCTION STAGE

The industrial revolution gave the various motions ability to producers in

large quantity. New technologies skilled labor and scientific management,

these all have help in producing better and cheaper product, which the

consumer can buy without any efforts made by the producers to induce

the consumers to buy the product.

2. SALES STAGE

This is the stage where producer’s release the products cannot be sold by

itself. The consumer must be motivated to buy for these he adopt

publicity

3. MARKETING STAGE

This is consumer stage in which the needs of the consumer are given the

top priority. These needs were systematically determined through

marketing research and then steps were taken to produce only those

goods that could satisfy the wants of potential customer.

4. SOCIAL RESPONSIBILITY AND HUMAN ORIENTATION

STAGE:

Business is no longer reaming limited to be object of earning profit but

have become stronger force for overall all welfare of mankind.

MARKET SEGMANTATION:

Market consists of buyers and buyers differ in one or more aspect. They

may differ in their wants, purchasing power geographical buying attitudes

and buying practices any of these variables can be used to segment a

market. There is no single way to segment a market. A marketer has to try

different segmentation variables for effective segmentation.

MARKET POTENTIAL:

Marketers talk about potential marketers, available markets served

markets, and penetrated market. To clarify this terms let us start with the

notation that a market is the set of all actual and potential buyers would

have three characteristics: interest, income and access.

CONSUMER BEHAVIOUR:

The starting point understanding buyer behavior is the stimulus response

model shown in figure. Marketing and environmental stimuli enters the

buyers consciousness. The buyer’s characteristic and decision process

lead to certain purchase decisions. The marketer’s task is to understand

what happens in the buyers purchase decisions Customer’s behavior in

aggregate is observable on the bottom line. This aggregate is the market.

However, individually who are those buyers? If you knew for certain (say

because of extensive questionnaire filled out at the cash register by

purchase of all products), then would know among other things, if your

products was properly positioned or marketed. You might even clean

market direction and be able to determine what would be selling well

years hence.

MAJOR FACTORS INFLUENCING BUYING BEHAVIOUR:

CULTURAL FACTORS

Culture

Sub Culture

Social Class

SOCIAL FACTORS

Reference groups

Family

Roles and status

BUYING ROLES

Initiator : - Person who first suggest the idea of buying the

Influences : - a person whose view or advice influences the

Decider : - on any components of a buying decision.

Buyers : - the person who makes the actual purchase.

Users : - a person who consumes or uses the product.

STAGES OF BUYING DECISION PROCESS:

Problem recognition

Information search

Evaluation of alternatives

Purchase decision

Post purchase behavior

CONSUMERISM:

Consumerism is defined as a social force designed to protect consumer

interest the market place by organizing consumer pressure on business.

The balances of power in the market usually line with the seller.

Consumerism is attempts in the society to redress the imbalances in the

exchange transaction between buyers and sellers. The Economic

development process in an economy has given rise to industrialization

and urbanization. The growth of business economy was purely attributed

for such phenomenon. This has spiraled the effect of heavy urbanization

were each city has expanded from smaller dwelling to mega cities. The

distance between two boundaries running to 60 KMs and maximum

undefined this has given lift to the need of transportation to the

commuting public, In addition to this tremendous growth of business

economy necessitated the need for movement of people and goods to

various destinations. Government has provided some of the transport

facilities but it is inadequate for the growing demand of the public. This

gap was filled by people buying their own personal vehicles which

offered them high utility, greater convenience and efficient time

management. This helps the people to improve standard of living,

improved social class and contributed for greater economic sense to the

society. Their personal vehicles are four wheelers and two wheelers. In

addition to these there are commercial heavy vehicles like trucks, buses

etc..., mainly used for transportation of goods. All these vehicles

including public and private vehicles run on petroleum products like

petrol or diesel, the movements of these vehicles are based on the

engines, which induces movement of vehicle by utilizing petrol or diesel

as fuel. But these engines being metallic are inflected by various

environmental hazards while it is increasing its movement this hazards

corrodes the metallic portion and changes of position due to climatic

conditions. These hazards will render engine as non-performer. This can

be overcome by providing sufficient oil to the engine of desired quality

and quantity, which keeps the engine in good condition. As long as there

is higher demand and high movement of vehicles there will be equally

high demand for engine oils. As every vehicle has an engine and needs

engine oil. There are various manufactures of engine oils that are in the

market selling different brands of engine oils with different brand names

to suit the different engine designs. INDANOIL CORPORTION

LIMITED is one such seller of engine oil in India with brand name of

SERVO. It is a public sector company and has several brands of engine

oils suitable for all vehicles. It is brand of engine oils in Indian market.

A foreign brand by name CASTROL is also one of the leaders in market

comparatively IOCL has low market share. This project aims to find out

the perception the consumers towards various brands of engine oils so

that a suitable strategy can be recommended to IOCL to improve market

share.

CHAPTER-II

RESEARCH DESIGN

A detailed plan of research indicating the methods and procedures to be

used for collecting and analyzing data on a giving subject and reporting

results is termed as “Research Design”

2.1 TITLE OF THE PROJECT:

The Title of the Project is “A STUDY ON CONSUMER

PERCEPTION TOWARDS INDIAN OIL IN KOLAR”

2.2 STATEMENT OF THE PROBLEM:

Consumer and consumer needs are the focus of marketing. To be a

successful manager, it is important to understand the nature and

characteristics of consumer. On average, a customer can be described as

one who is in active stage of development of the organization. The

capability exists in income, literacy and culture and his choice of

performance as he is living in an active environment, his needs will keep

getting altered. As India is one of the fastest growing countries, the

automotive market is also expending with full swing. Today we have lots

of companies in the oil market taking this into consideration, a buyer with

many oils in the market would be totally be baffled and confused on

which oil to buy to suit his vehicle. Justice should be made for the

consumer. Should be satisfied with what he buys, the consumer

expectation and the values for money should be looked into based on the

fluctuating needs and demands. At present there are many different

companies offering different brands of engine oil suitable for different

engine designs.

2.3 OBJECTIVE OF THE STUDY:

To find out the factors, which influence the people to buy engine, oils

To find out the performance of the engine oils according to their

viscosity.

To find out the performance of the different brands of engine oils.

2.4 SCOPE OF THE STUDY:

The company’s Strengths and weaknesses and areas of development

or

Decline are analyzed. Financial, strategic and operational factors are

considered.

The report contains critical company information – business

structure and operations, the company history, major products and

services, key competitors, key employees and executive biographies,

different locations and important subsidiaries.

2.5 OPTIONAL DEFINITION OF CONCEPTS:

According to “American marketing association.” Marketing

as the performance of business activities that directs the flow of

goods and services from producers to consumer forever”.

ACCORDING TO GREEN AND TULL:

“A research design is the specification of methods and procedures for

acquiring the information needed. It is the overall operational pattern or

frame work of the project that stipulates what information is to be

collected from which sources by what procedures”.

MARKET:

Market consists of all the potential customers sharing particular

needs or wants who might be willing to satisfy their needs or wants.

MARKETING:

It is a social and managerial process by which individuals and

groups obtain what they need and want though creating, offering and

exchanging products of value with other.

CONSUMERS:

It is an individual who purchases of has the capacity to purchase

goods and services offered for sale by marketing institution in order to

satisfy personal needs, wants and desires as consumer of efferent leaves

are scattered at different places.

PERCEPTION:

"Perception can be defined as the process of receiving, selecting,

organizing, interpreting, checking and reacting to sensory stimuli or

data".

2.6 SAMPLING:

The survey Method that was used to collect the Primary data is the

Interview Method. The Respondents were Personally Interviewed by

Issuing Questionnaire’s and the survey was conducted. The sample size

was Restricted to 100 samples after considering the degree of confidence

and the degree of error. The sample size is restricted to Kolar alone.

CHOOSING OF SAMPLING UNITS

Each sampling unit was selected by the research according to the fact to

whether the respondents would be in position to supply necessary data.

The quota to be followed was also born in mind while selecting sampling

units.

2.7 TYPES OF RESEARCH PLUS TOOLS FOR DATA

COLLECTION:

The data is collected through Issue of Questionnaire’s, which is Primary

data in Nature.

RESEARCH PLAN:

Designing a research plan calls for decision on data sources, research

instrument gambling plan and contact methods.

RESEARCH APPROACH: Survey Method is used to collect the

Primary Data from the Respondents. The survey Method is used here to

facilitate understanding or Enable Prediction of some aspects of

perception of the Respondents

2.8 PLAN OF ANALYSIS:

Perhaps the most essential task is the analysis of the date. After the data

was collected from various sources, information was tabulated and was

summarized in from of point and graph etc, on the basis of this analyzes,

RESEARCH PLAN

DATA SOURCES SECONDARY DATA, PRIMARY DATA

RESEARCH APPROACHES OBSERVATION, FOCUS GROUPS SURVEY

EXPERIMENT

RESEARCH INSTRUMENT QUESTIONNAIRE, MECHNICAL INSTRUMENT

SAMPLING PLAN SAMPLING UNIT, SAMPLE SIZE, SAMPLING

PROCEDURE

findings were noted and conclusion were arrived and at studying the

conclusion, suggestion are recommended a suitable plan is made on

various function. In this present project, an attempt has been made to

analyze the consumer perception towards servo engine oils by using the

questionnaire method. It was originally a field-oriented task. After

collecting all the information was transferred to a worksheet the data

relating to set of the objectives was then classified and the findings

recovered after which the data was graphically represented. Here some

special statistical techniques are used some of them are mentioned below:

Sampling statistics

Chi square analysis

Analysis of variants

Correlation

2.9 REFERENCE PERIOD:

The reference period of this study was 45 days i.e., one & half month.

2.10 LIMITATIONS OF THE STUDY:

The projects deal with “CONSUMER PERCERTIUON TOWARDS

SERVO ENGINE OILS”.

A study on “consumer perception towards servo engine oils”.

Needs large sample size. A large sample gives more results rather than

small, but my sample size is only 100, which is limitation to my

project.

As we know a good Marketing research takes time but time is again

the limitations of my project.

Some respondents show unwillingness to fill the questionnaire.

Some respondents give the biased information in case of close ended

questions and multiple choice

Due to small area of kolar and small sample size, the exact data

couldn’t be collected.

2.11 CHAPTER SCHEME

Chapter: 1 Introduction:

It clearly shows the Theoretical background, Brief theory, Growth and

Prospectus, Definition, Essentials of Good Advertising, Creating

Advertisements That Attracts Attention, Brand Patronage..

Chapter: 2 Research Design:

It clearly shows the Title of the Study, Statement of the Problem, Objectives

of the Study, Scope of the Study, Operational Definition of the Study,

Research methodology, Tools Used for Data Collection, Plan of Analysis,

Reference Period of the Study, Limitations of the Study..

Chapter: 3 Company Profile:

It clearly shows the Inception, Growth and Development of Company,

Nature, Functional chart, Mission, Vision, Industry Development and Trends,

Market Share, Business Strategy, Organizational Structure, Business

Operation Method, Types,

Chapter: 4 Data Analysis and Interpretation:

It defines the survey conducted with Graphical Representation of Company

Products & Title of the table, Analysis of the table, Inference of the table,

Graphical Representation

Chapter: 5 Summary of Findings and Conclusions:

Here, it finds the problems of the company & Justifies it.

Suggestions:

It helps to take out some unwanted information’s by giving suggestions.

Appendices and Annexure:

It’s a copy of Questionnaire; it particularly represents the Merits and

Demerits about the product.

Bibliography:

The reference made from textbooks, magazines, newspapers & websites

etc...

CHAPTER-III

COMPANY PROFILE

Indian Oil Corporation (IOC), established in 1959, is engaged in

exploration and production and marketing of oil. It is India’s largest

company sales wise with a turnover of Rs 2,47, 479 core ($ 59.22

billion). IOC has sub diaries namely Indian oil Technologies, Chennai

Petroleum Corporation, Bongaigaon Refinery & Petrochemicals, Indian

Oil (Mauritius) and Lanka IOC. Out 19 refineries, IOC owns and operates

10 with a combined capacity of capacity of 60.2 million metric tonnes per

annum (MMTPA), i.e. 1.2 million barrels per day. It has 166 bulk storage

terminals and depots, 101 aviation fuel station and 89 Indene bottling

plants. The refining major has a countrywide network of petrol and diesel

stations with 17,600 retail outlets. Its Indene cooking gas network has

presence in 50 million households through its distribution network of

5,000 distributors.

MILESTONES:

IOC is the highest ranked Indian company In Fortune ‘Global 500’

list.

It is 18th largest petroleum company in the world.

It is India’s most trusted fuel pump brand as per the survey

conducted by ET brand equity and AC Neilsen.

It has received National Award for “Innovation in Implementing

Business Continuity For SAPR/3 Environment “from the

Government of India.

OUTLOOK:

IOC and GAIL have signed a memorandum of understanding for

cooperation in setting up an Rs 10,000 crore petroleum plant at Barauni

in Bihar. Indian Oil launched its lubricant brand Servo in Oman. Servo

has 500 different grades and 1200 varied formulations.

INCEPTIONS:

Indian Oil corporation Limited (Indian Oil) is the country’s largest

commercial enterprise, with a

Sales turnover of Rs. 1, 30,203 crore (US$ 29.8 billion) and

Profits of Rs 7,005 crore (US$ 1,603 million) for fiscal 2003.

Indian Oil is India’s No.1 Company in Fortune’s prestigious listing of the

world’s 500 largest corporations, ranked 189 for the year 2004 based on

fiscal 2003 performance. It is also the 19th largest petroleum company in

the world. Indian Oil has been adjudged No.1 in petroleum among the

national oil companies in the Asia pacific region, and is ranked 325 th in

the current Forbes’ “Global 500” listing of the largest public companies

Indian Oil has achieved the enviable distinction of being the only

petroleum brand in the latest ranking of the top 150 Indian Brands Equity

of Economic Times, the trusted testament on the brand related

information. This ranking of top 150 comprised brands from all product

and service categories. The ranking done by Brand Equity on the classic

parameters of brand performance through a scientific evaluation process

is the final authentic word on the positioning of the brands in the mind

space of Indian customers. In addition to this composite ranking across

the product and service .Categories, sector wise ranking for specific

product and service categories are also part of this elaborate survey.

Among the exclusive services list for petrol pumps, while Indian Oil

leads the charge with the top rank, IBP, HPC and BPC are ranked 2nd, 3rd

and 4th respectively. This is truly a creditable performance given the fact

that this is the debut appearance for the petrol pumps, which have been

introduced in the services category only this year. In the sector wise

ranking of all services Indian Oil has powered to the 11 th position, leaving

the competition far behind. While IBP, our group company, HPC and

BPC are ranked at 51, 56, and 64 respectively.

TYPE: It is a public sector company

NATURE:

Indian Oil is currently metamorphosing from a pure sect oral company

with dominance in downstream in India to a vertically integrated,

transnational energy behemoth. The corporation is implementing a master

plan to emerge as a major player in petrochemicals by integrating its core

refining business with petrochemical activities, besides making large

investments in E&P and import/marketing ventures for oil and gas in

India and abroad

BOARD OF DIRECTORS:

Sarthak Behuria Chairman of the board

B M Bansal Director of planning and business development

S V Narsimhan Director of Finance

V C Agarwal Director of human resources

G C Dage Director of Marketing

B N Bankapur Director of Refineries

Anand Kumar Director of Research & Development

CHAIRMAN

VICE CHAIRMAN & MANAGING DIRECTOR

ACCOUNTS DEPARTMENTINTERNAL AUDITSTORES & PURCHASESSECRETARIAL BRANCH

DIRECTOR PERSONNEL & ENVIRONMENTDIRECTOR SERCURITY & VIGILANCEDIRECTOR SERCURITY & VIGILANCE

BANGALORE CITYBANGALORE RURALKOLARMYSORE URBANMYSORE RURALHASSANMANGALORETUMKURDAVANGAREECHIKMAGULAR

PERSONNEL & ADMINISTRATIONENVIRONMENT & POLLUTIONLABOUR & WELFAREESTATE MATTERSLAW DEVELOPMENTSPORTSDISPLINARY SECTIONHRDMEDICAL DEPARTMENT

SECURITY & VIGILANCETRAFFICCOMMERCIAL MATTERSEDP DEPARTMENTACCIDENT RELIEF FUNDLINE CHECKING

MECHANICAL & ENGINEERINGCIVIL ENGINEERINGPRINTINGSTATISTICAL PLANNINGPUBLIC RELATIONSLEGISLATURE MATTERS

RWS-BANGALORERWS-HASSAN

CENTRAL OFFICE

ORGANIZATIONAL CHART

BUSINESS OPERATIONS:

CORPORATE OFFICE

Indian oil corporation Ltd Corporate office, 307/3, J B Tito Marg, Sadiq

Nager,New Delhi- 110049

Tel: 011- 26260000

Srilanka

Mr. K.R. Suresh Kumar M.D, Lanka IOC PLC, 20th floor, West

Tower, World Trade Centre, Colombo, Srilanka

Tel: 00 94147520, 000941475700

Mauritius

Rajesh Ahuja M.D, Indian oil Ltd, Mer Rouge, Port Louis, Mauritius

Tel: [230] 2172710

PRODUCTION/ SERVICE PROFILE:

PRODUCT PROFILE

PRODUCTS: It provides spectrum of petroleum products through its

retail outlets like Extra Care (Urban), Swagat (Highway) and Kisan Seva

Kendras (Rural).

IOC provides auto gas, aviation turbine fuel, bitumen-a binder used for

road construction, high speed diesel, bulk industrial fuels like furnace oil,

Indane gas, Servo Lubricants and greases and special products like

benzene and surplus.

It has created brands like Indiana LPG, Servo Lubricants, Auto gas LPG,

Extra Premium Branded Petrol, Extra Mile Branded Diesel, Extra Power

Fleet Card.

PRODUCT OVERVIEW:

Product Name YearMont

h

Sales

Quantity

Sales

Value(Rs.Million)

% of

STO

Petroleum Products 2011 03 788.84 2920285.40 81.76

Crude Oil 2011 03 88.52 249565.70 6.99

Lubricants & Greases 2011 03 4.82 61386.80 1.72

Gas 2011 03 851.73 28301.10 0.79

PX/PTA Plant 2011 03 4.47 25301.10 0.71

Other Petrochemicals 2011 03 3.67 23756.20 0.67

Product (including

Polymers, MEG and

DEG)

LAB Plant 2011 03 1.24 11813.70 0.33

Base Oil & Additives 2011 03 0.99 6540.70 0.18

Explosives 2011 03 0.71 1686.40 0.05

Cryocontainer &

Accessories2011 03 0.18 342.20 0.01

Site Mixed Slurry

Explosives2011 03 0.00 0.00 0.00

Crude Processing 2011 03 0.00 0.00 0.00

Lubricating Oil 2011 03 0.00 0.00 0.00

Wax/Bitumen/

Asphalt Lube Oil

Drums

2011 03 0.00 0.00 0.00

Oxygen Plant 2011 03 0.00 0.00 0.00

Propylene Recovery

Unit2011 03 0.00 0.00 0.00

MTBE Unit 2011 03 0.00 0.00 0.00

Naphtha Cracker

Plant2011 03 0.00 0.00 0.00

Indian Oil reaches Indane cooking gas to the doorsteps of 37.5 million

households in over 2,100 markets through the country’s largest network

of 4,350 distributors

Indian Oil’s ISO-9002 certified Aviation service, with 68% market share,

meets the fuel and lubricants needs of domestic and international flag

carriers, Defence services and private aircraft operators.

The country’s leading SERVO brand lubricants from Indian Oil, with over

42% market share and 450 grades, are sold through more than 9,100

Company retail outlets, besides a countrywide network of bazaar traders.

To maintain its strategic edge in the market place, Indian Oil has planned

investments to the tune of Rs. 24,400 crore during the X Plan period

(2002-07), mainly in linear integration & diversification projects, besides

refining and pipeline capacity expansions, product quality up gradation

and retail operations.

MARKET SHARE:

Indian oil has market share of 68% in the Aviation services & 42% of the

market share in the servo brand lubricants & in the world it has 51.2%

market share on the petroleum products among U P S Companies.

COMPETITORS:

Hindustan Petroleum:

HPCL, a fortune 500 company, is one of the major integrated oil refining

and marketing companies in India. It is a Mega Public Sector

Undertaking (PSU) with Navaratna status.

HPCL accounts for about 20% of the market share and about 10%

of the nation's refining capacity with two coastal refineries, one at

Mumbai (West Coast) having a capacity of 6.5 Million Metric Tons Per

Annum (MMTPA) and the other in Visakhapatnam (East Coast) with a

capacity of 8.3 MMTPA. HPCL also holds an equity stake of 16.95% in

Mangalore Refinery & Petrochemicals Limited (MRPL), a state-of-the-art

refinery at Mangalore with a capacity of 9 MMTPA.

HPCL owns the country's largest Lube Refinery with a capacity of

335,000 Metric Tons which amounts to 40% of the national capacity of

Lube Oil production. HPCL has given India a firm ground in this sector

with its world class standard of Lube Base Oils. Presently HPCL

produces over 300+ grades of Lubes, Specialties and Greases.

HPCL has earned "Excellent" performance for fifteen Consecutive

years up to 2005-06, since signing of the first MOU with the Ministry of

Petroleum & Natural Gas. HPCL won the prestigious MOU Award for

the year 2007-08 for Excellent Overall Performance, and for being one of

the Top Ten Public Sector Enterprises who fall under the 'Excellent'

category. HPCL's performance for the year 2008-09 also qualifies for

"Excellent" rating.

HPCL, over the years, has moved from strength to strength on all

fronts. The refining thru put has increased three fold between 1984/85 to

2007/08, rising from 4.47 MMTPA in 1984/85 to 15.76 MMTPA (2009-

10).

Bharat Petroleum:

Bharatgas - Providing Customer Delight to over 30 million Homes!

History

LPG as a household cooking fuel was introduced by erstwhile Burmah

Shell under the brand name “Burshane” in mid 1955. The journey of

LPG as a domestic fuel continued with Burmah Shell until the

Government nationalized the Company Burmah Shell to become Bharat

Petroleum. “Bharatgas” from Bharat Petroleum has dominated the LP

Gas market in India for over three decades. It was indeed a great

challenge for Bharatgas to replace Burshane as a brand name since

“Burshane” had become a generic name in the country for LPG. Bharat

Petroleum's inspiration to meet every challenge drove them to work

towards establishing Bharatgas as a dominant brand.

Achievements

Over the years, the urban Market reach was very large, the customer more

sensitive. Whereas, it was a herculean task to reach the rural consumers

primarily due to inhabitation being spread over very far flung areas unlike

FUNCTIONAL CHART

ACCOUNTS SUPR AEE( CIVIL )

AEE( ELE )

ASSTENG

J Es

CHANGE MAN PRINTING ASSTART

PRIN.

HELPER

EST SUPDT

ASST J A

A C O P STATE OFFICER P R O

ESTSURP

ASST STATSURP

ASST J A

ME (O) E E DY. COP WORKS MANAGER C P S O C P R O

DME AME

ESTSUPR

SK CHANGE MAN

ASST/JA

CHAIRMAN

VICE CHAIRMAN & MANAGING DIRECTOR

DIRECTOR (TECHNICAL)

MECH ENGGCME (2)

CIVIL ENGGCCE

PRINTING REGIONAL WORK SHOPS

STAT & PLANNING PUBLIC RELATIONS

CENTRAL OFFICE

FUTURE PROSPECTS AND GROWTH OF THE COMPANY:

VISION

A major, diversified, transnational, integrated energy company, with

national leadership and a strong environment conscience, playing a

national role in oil security & public distribution

MISSION

To achieve international standards of excellence in all aspects of

energy and diversified business with focus on customer delight

through value of products and services, and cost reduction.

To maximize creation of wealth, value and satisfaction for the

stakeholders.

To attain in leadership in developing, adopting and assimilating

state-of-the-art technology for competitive advantage.

To provide technology and services through sustained Research

and development

To foster a culture of participation and innovation for employee

growth and contribution.

To cultivate high standards of business ethics and Total Quality

Management for a strong corporate identity and brand equity.

To help enrich the quality of life of the community and preserve

ecological balance and heritage through a strong environment

conscience.

OBJECTIVES AND OBLIGATIONS

OBJECTIVES:

To serve the national interests in the oil and related sectors in

accordance and consistent with Government policies.

To ensure and maintain continues and smooth supplies of

petroleum products by way of crude refining, transportation and

marketing activities and to provide appropriate assistance to the

consumer to conserve and use petroleum products efficiently.

To earn a reasonable rate of interest on investment.

To work towards the achievement of self-sufficiency in the field of

oil refining by setting up adequate capacity and to build up

expertise in lying of crude and petroleum product pipelines.

To create a strong research and development base in the field of oil

refining and stimulate the development of new product

formulations with a view to minimise / eliminate their imports and

to have next generation products.

To maximise utilisation of the existing facilities in order to

improve efficiency and increase productivity.

To optimise utilisation of its refining capacity and maximise

distillate yield from refining of crude to minimise foreign

exchange outgo.

To minimise fuel consumption in refineries and stock losses in

marketing operations to effect energy conservation.

To further enhance distribution network for providing assured

service to customers throughout the country through expansion of

reseller network as per Marketing Plan/Government approval.

To avail of all viable opportunities, both national and global,

arising out of the liberalisation policies being pursued by the

Government of India.

To achieve higher growth through integration, mergers,

acquisitions and diversification by harnessing new business

opportunities like petrochemicals, power, lube business,

consultancy abroad and exploration and production.

OBLIGATIONS:

Towards customers and dealers

To provide prompt, courteous and efficient service and quality products

at fair and reasonable prices.

Towards suppliers

To ensure prompt dealings with integrity, impartially and courtesy and

promote ancillary industries.

Towards employees

Develop their capability and advancement through appropriate training

and carrier planning.

Expeditious redressal of grievances

Fair dealings with recognised representatives of employees in pursuance

of healthy trade union practice and sound personnel policies

Towards community

To develop techno-economically viable and environment-friendly

products for the benefit of the people.

To encourage progressive indigenous manufacture of products and

materials so as to substitute imports.

To ensure safety in operations and highest standards of environment

protection in its manufacturing plants and townships by taking suitable

and effective measures.

Towards Defence Services

To maintain adequate supplies to defence services during normal and

emergency situations as per their requirement at different locations .

Financial Objectives

To ensure adequate return on the capital employed and maintain a

reasonable annual Dividend on its equity capital.

To ensure maximum economy in expenditure.

To manage and operate the facilities in an efficient manner so as to

generate adequate internal resources to meet revenue cost and

requirements for project investment, without budgetary support.

To develop long-term corporate plans to provide for adequate growth

of the activities of the Corporation.

To endeavour to reduce the cost of production of petroleum products

by means of systematic cost control measures.

To endeavour to complete all planned projects within the stipulated

time and cost estimates.

OPPORTUNITIES & THREATS:

OPPORTUNITIES:

India’s petroleum consumption was about 107.7 million tonnes in 2003-

04, an increase of 3.5% over 104.1 million tonnes registered in 2002-03.

After a flat growth in 2001-02, the industry recovered and registered a

growth of over 3% for the second year in succession. The centre for

Monitoring of Indian Economy (CMIE) expects industrial output to rise

by 6.4% and agricultural sector to grow by 2.7% in the current fiscal as

against 6.5% and 9.1% growth in 2003-04. The services sector, which

contributes about 50% to GDP, is projected to grow by 7.9%. With the

economy poised to grow at 7% to 8%, trade and industry will need the

support of the hydrocarbon sector to fuel their demand.

In its transition to align fully with market-driven mechanism, the

hydrocarbon sector is also reinforcing its latent strengths to meet the

expectations of a wide array of stakeholders.

This would mean offering a comprehensive value proposition package to

the customer with emphasis on non-fuel services also, which opens up

myriad opportunities to the corporation in addition to growth in its core

fuel business.

THREATS:

Of particular concern to the industry is the slowing down of diesel

demand over the last two years. In 2003-04, diesel demand grew by only

1.7% against the overall growth of 3.4% in petroleum products

consumption. In 2002, rights to set up a total of 11,000 petrol and diesel

stations (Ross) were granted to select private and public sector

companies. The year 2003-04 saw these players consolidating their plans

for setting up Ross and associated infrastructure, and a few Ross have

already become operational. Further expansion of the network would only

intensify competition in the market place. There is a threat to liquid fuels

from gas and other alternative fuels. Gas is certainly going to replace a

substantial volume of Naphtha and Fuel Oil/LSHS and have an impact on

the liquid fuel business.

CHAPTER-IV

DATA ANALYSIS & INTERPRETATION

PART 1:

TYPE OF VEHICLE:

4.1 TABLE:

TYPES OF VEHICLES TEST:

Type of Vehicles No of Respondents Percentage

Cars 78 78

Turks, Buses 22 22

Total 100 100

Sources: (Primary Data)

ANALYSIS:

Out of the total Sample size taken 78% respondents belong to owner of

cars & 22% were Owners of Trucks, Buses.

GRAPH 4.1:

TYPES OF VEHICLES

Type of Vehic l e

78%

22%

c ar s Tr uc ks, Buses

INTERPRETATION:

Because the majority of the respondents are car owner the test is valid to

find out the attitude and perception of those car owners towards engine

oil. That means to say that the study confirms only to engine oil used by

the car owners.

TABLE 4.2

VEHICLE BRAND TEST:

Brand of Vehicles No of Respondents Percentage

Maruti 20 20

Hyundai 22 22

Tata Cars 16 16

Toyota 10 10

Ashok Leyland 14 14

Tata Trucks 12 12

Others 6 05

Total 100 100%


ANALYSIS:

In the sample, respondents Hyundai is the first position with 22% of

contribution from the total score in the brand test of the cars. 2nd position

goes to Maruti with 20%, 3rd position goes Tata cars with 16%, 4th

position goes to Ashok Leyland and 12%,10%, & 05% goes to Tata

Trucks, Toyota and others respectively.

GRAPH 4.2

VEHICLE BRAND TEST

No of Respondents

MarutiHyundaiTata CarsToyotaAshok LeylandTata TrucksOthersTotal

INTERPRETATION:

All Vehicles (Automobiles) need engine oil to given for maintenance of

vehicle by providing frequently engine oil for the smoothness in running

the vehicle. Without the engine oil the vehicle will not run. Normally

engine oils are used for specific distance mileage covered. After that

engine oil has to change. This test is conducted towards the usage of

engine for specific distance.

TABLE4.3

CHANGES OF OIL:

Kilometers No of Respondents Percentage

2000Kms 10 10

3000Kms 08 08

4000Kms 14 14

5000Kms 20 20

More than 5000Kms 48 48

Total 100 100


ANALYSIS:

More than 5000 KMs is the normal average running of the car per oil

With 48% of the total score. That means to say most of the respondent’s

changes oil after running for 5000 Km’s (20%), 14% changed at 4000

Km’s and 08% changed at 3000 Km’s.

GRAPH 4.3

CHANGES OF OIL:

0%10%20%30%40%50%

2000Kms

3000Kms

4000Kms

5000Kms

Morethan5000Kms

Kil ometr es

Per centage

INTERPRETATIONS:

Normally 5000 Km’s is the minimum distance utility per oiling in a

vehicle. There is an optimum efficient utilization. If people are changing

oils for lesser distance it can be inferred that these engines are not

performing up to, its expectation and the brand have outdated engine

designs. If more than is distance covered then there is an unnecessary

strain on the engine.

TABLE 4.4

PURCHASE POINT:

Purchase point No of Respondents Percentage

Automobile Outlet 26 26

Petrol pumps 52 52

Lube outlet 22 22

Total 100 100


ANALYSIS:

The point of purchase of engine oil mostly takes place at Petrol Pumps

52% and followed by to some 26% of them purchase at Automobile

outlet and lesser extent 22% in the exclusive Lube outlet.

GRAPH 4.4

PURCHASE POINT:

No of Respondents

Automobile Outlet

Petrol pumps

Lube outlet

Total

INTERPRETATIONS: It is obvious that oil is changed at mostly Petrol

pumps mainly because of the reason that it offers convenience to fill

petrol. Hence, strategically the oils should be distributed through Petrol

Pumps.

TABLE 4.5

THE BUYING INFLUENCE:

Influence No of Respondents Percentage

Self 70 70

Driver 16 16

Garage Mechanic 14 14

Total 100 100


ANALYSIS:

While influencing the Buying of engine oils in cars most of the decisions

are taken by the car owners themselves 70%, car driver is also influence

in selection of the oil to 16%and around 14% influence by garage

mechanic.

GRAPH 4.5

THE BUYING INFLUENCE:

Infl uence

0% 10% 20% 30% 40% 50% 60% 70% 80%

Self

Driver

Garagemechanic

Per centage

INTERPRETATIONS:

Most of the Car owners are aware about oiling their Cars. There may be

influenced that while they buy a car they have sufficient knowledge in

smooth running of the car. This appears the car owners have. Hence the

oil manufacture should target their communication message to the car

owners directly.

TABLE 4.6

SERVICE OF VEHICLES FOR OIL CHANGE

Point of purchase No of Respondents Percentage

Private S.S 10 10

Authorized S.S 48 48

Petrol Pumps 42 42

Total 100 100


ANALYSIS:

Preference is for the service centre for changing oil. Most of them prefer

going to Authorized Service Station at 48%, closely followed by petrol

pumps with 42% and little preference to Private Service Station with

10%.

GRAPH 4.6

SERVICE OF VEHICLES FOR OIL CHANGE

INTERPRETATIONS:

Most of the car owners would not like to take chance while changing the

engine oils. Hence, they go Authorized Service Station or to Petrol

pumps. There is a relationship to the smooth running of the vehicles. It is

commonly believed that Authorized Service Station provides a perfect

service in oil changes and in the Petrol pumps they belief that better

service is a matter of faith as he is visiting the Petrol pumps.

TABLE4.7

USE OF DIFFERENT BRANDS OF ENGINE OILS:

Brands Used No of Respondents Percentage

Servo IOC 19 38

H.P 10 10

I.B.P 14 14

Castrol 30 30

Other Brands 08 08

Total 100 100


ANALYSIS:

In the different engine oil brand Servo IOC enjoy the maximum brand

share that is 38% in the study. Followed by Castrol and the third position

is enjoyed by I B P with 14%.

GRAPH 4.7

USE OF DIFFERENT BRANDS OF ENGINE OILS:

Br ands Used

Servo I O C

H.PI.B.P

Castrol

Others Brands

Ser vo I O C H.P

I.B.P C astr ol

Other s Br ands

INTERPRETATIONS:

Servo I O C is a way ahead brand leader and enjoys’ the highest Market

share. This is corroborated even in the secondary data. They do not have

immediate challenges as per study they have only followers in the market

share.

TABLE 4.8

THE BRAND LOYALTY TEST:

Period No of Respondents Percentage

6 Months 18 18

1 Year 20 20

2 Years 28 28

More than 2 Years 34 34

Total 100 100


ANALYSIS:

In the brand loyalty test 34% of the respondents used same brand for the

more than 2 years, 28% use the same brand in between 1 and 2 years and

20% of the users are using for lesser than 1 year and followed by 18% of

the user using 6 months.

GRAPH 4.8


0%5%

10%15%20%25%30%35%

6 Months One Year Two Years More than2 Years

Per iod

Per centage

INTERPRETATIONS:

There is high degree of brand loyalty towards the engine oil that is lesser

than and that is why Servo I O C is the brand leader. That means it is able

to satisfy to the customers need.

TABLE 4.9

ATTRIBUTE TEST:

Attribute No of Respondents Percentage

Price 20 20

Good Quality 48 48

Easy Availability 32 32

Total 100 100


ANALYSIS:

The most important attribute for engine oil is the good quality 48%,

followed by easy availability to customers 32% and finally the price with

20%.

GRAPH 4.9

ATTRIBUTE TEST:

Attr ibute

Price

Good Quality

Easy Availability

Pr ice Good Qual ity Easy Avail abil ity

INTERPRETATIONS:

The engine oil is the requirement for the car owner for smooth running of

the vehicle. Vehicle owner will be moving too often in different places

and there may be a need for the engine oil wherever they go, it also

means that the brands of engine oil, which is made available in various

places, will have more sales. It appears that Servo IOC has adopted this

distribution strategy and hence they are successful.

TABLE 4.10

PROMOTIONAL TEST:

Promotion No of Respondents Percentage

Advertisement 20 20

Word of mouth 10 10

News paper 38 38

Bill Boards 32 32

Total 100 100


ANALYSIS:

While creating promotional strategy of engine oils the most important

promotional material is the Lube awareness campaign held in petrol

pumps 38%, Bill boards in petrol pumps, mainly at some intersection in

the 2nd position 32%, 3rd is enjoyed by advertisement 20% and remaining

10% in marketing company messages.

GRAPH 4.10

PROMOTIONAL TEST:

No of Respondents

AdvertisementWord of mouthNews paperBill BoardsTotal

INTERPRETATION:

While creating promotional strategy of engine oils the most important


pumps 38%, Bill boards in petrol pumps, mainly at some intersection in

the 2nd position 32%, 3rd is enjoyed by advertisement 20% and remaining

10% in marketing company messages.

TABLE 4.11

AWARENESS OF IOC LUBE:

Awareness No of Respondents Percentage

Yes 82 82

No 18 18

Total 100 100


ANALYSIS:

82% of the respondents are aware about Servo Engine oils. Only 18% of

the test respondents are aware of Servo lubricant.

GRAPH 4.11


Awar eness

Yes No

INTERPRETATIONS:

INDIAN OIL is one the oldest company which introduced engine oil for

all types of automobile. Hence the awareness about their oil is very high

among the users suggested.

TABLE 4.12

TYPES OF VEHICLE:

Type of Vehicle No of Respondents Percentage

Motor Bike 58 58

Scooters 32 32

Moped 10 10

Total 100 100


ANALYSIS:

In this type of vehicle the sample is collected from respondents. Out of

that, 58% are Motor Bike, 32% are Scooters and 10% are moped.

GRAPH 4.12

TYPES OF VEHICLE:

Type of Vehic l e

58%32%

10%

Motor Bike Scooter s Moped

INTERPRETATIONS:

Since the distribution of respondents in two wheeler4s segment has

Motorbikes, Scooters and moped there by requirements for 2T engine oil

will be there.

TABLE 4.13

TYPE OF OIL IN DIFFERENT SIZES:

Type No of respondents Percentage

Loose 58 58

Pouches 30 30

Sealed Tins 12 12

Total 100 100


ANALYSIS:

In this, oil preference in the two wheelers 58% of the two wheelers

owners preferred loose oil. 30% Pouches and 12% sealed tins.

GRAPH 4.13

TYPE OF OIL IN DIFFERENT SIZES:

Type of O il

58%30%

12%

Loose Pouches Seal ed Tins

INTERPRETATIONS:

In most of the vehicles the design of the vehicle is built up where by

petrol is consumed along with the oil hence the preference for loose oil is

more as this oil will be poured into the tank along with petrol. Some

vehicles have sealed can oil.

TABLE 4.14

BRANDS OF 2T OILS:

Brands No of Respondents Percentage

Servo 38 38

Castrol 32 32

B.P.C 10 10

H.P.C 20 20

Total 100 100


ANALYSIS:

In the different 2T oil brand Servo is the leader with maximum share

market that is 38% in market closely followed Castrol by 32%, 10% and

20%is B.P.C and I.B.P.

GRAPH 4.14

BRANDS OF 2T OILS:

Br ands

Servo

Castrol

B P C

H P C

Ser vo C astr ol B P C H P C

INTERPRETATIONS:

Servo is ahead brand leader and enjoys’ the highest market share this is

corroborated even in the secondary data. They do not have immediate

challenges as per study they have only followers in the market share.

TABLE 4.15


Period No of Respondents Percentage

6 Months 18 18

1 Year 20 20

2 Years 28 28

More than 2 Years 32 34

Total 100 100


ANALYSIS:

In the brand loyalty test 34% of the respondents used same brand for the

more than 2 years, 28% use the same brand in between 1 and 2 years and

20% of the users are using for lesser than 1 year and followed by 18% of

the user using 6 months.

GRAPH 4.15


INTERPRETATIONS:

There is high degree of brand loyalty towards the engine oil that is lesser

than and that is why Servo is the brand leader. That means it is able to

satisfy to the customers need.

TABLE 4.16

ATTRIBUTE TEST:

Attribute No of Respondents Percentage

Price 20 20

Good Quality 48 48

Easy Availability 32 32

Total 100 100


ANALYSIS:

The most important attribute for engine oil is the good quality 48%,

followed by easy availability to customers 32% and finally the price with

20%.

GRAPH 4.16

ATTRIBUTE

1 2 3 40

102030405060708090

100

Chart Title

No of RespondentsPercentage

Axis Title

Axis Title

INTERPRETATIONS:

The engine oil is the requirement for the two wheeler owner for smooth

running of the vehicle. Vehicle owner will be moving too often in

different places and there may be a need for the 2T oil wherever they go,

it also means that the brands of 2T oil which is made available in various

places will have more sales. It appears that Servo IOC has adopted this

distribution strategy and hence they are successful.

TABLE 4.17

VARIOUS WAYS OF PROMOTIONAL TEST:

1 2 3 40

102030405060708090

100

Chart Title

No of RespondentsPercentage

Axis Title

Axis Title

Promotion No of Respondents Percentage

Advertisement 10 20

Marketing 05 10

Lube Awareness 19 38

Bill Boards 16 32

Total 50 100


ANALYSIS:

While creating promotional strategy of 2T oils the most important


pumps 38%, Bill boards in petrol pumps in the 2nd position 32%, 3rd is

enjoyed by advertisement 20% and remaining 10% in marketing

company messages.

GRAPH 4.17

VARIOUS WAYS OF PROMOTIONAL TEST:

No of Respondents

AdvertisementMarketingLube AwarenessBill BoardsTotal

INTERPRETATION:

While creating promotional strategy of 2T oils the most important


pumps 38%, Bill boards in petrol pumps in the 2nd position 32%, 3rd is

enjoyed by advertisement 20% and remaining 10% in marketing

company messages.

TABLE 4.18

PURCHASE POINT:

Purchase point No of Respondents Percentage

Automobile Outlet 26 26

Petrol pumps 52 52

Lube outlet 22 22

Total 100 100


ANALYSIS:

The point of purchase of 2T oil mostly takes place at Petrol Pumps 52%

and followed by to some 26% of them purchase at Automobile outlet and

lesser extent 22% in the exclusive Lube outlet.

GRAPH 4.18

PURCHASE POINT:

Pur chase Point

AutomobileOutlet ,20%

Petrol ,Pumps

32%

LubeOutlet ,48%

AutomobileOutlet

Petrol Pumps

Lube Outlet

Per centage

INTERPRETATIONS:

It is obvious that oil is changed at mostly at Petrol pumps mainly because

of the reason that it offers convenience to fill petrol. Hence, strategically

the oils should be distributed through Petrol Pumps.

TABLE 4.19


Awareness No of Respondents Percentage

Yes 82 82

No 18 18

Total 100 100


ANALYSIS:

82% of the respondents are aware about Servo 2T oils. Only 18% of the

test respondents are aware of Servo lubricant.

GRAPH 4.19


INTERPRETATIONS:

INDIAN OIL is one the oldest company which introduced 2T oil for all

types of automobile. Hence the awareness about their oil is very high

among the users suggested.

CHAPTER-V

SUMMARY OF FINDINGS AND CONCLUSION

FINDINGS:

In the Analysis of four wheelers segment, demographically they

have been classified as follows:?

Both the cars and trucks have different engine’s are require

different type of suitable engine oils for them, but the study

confined for cars only.

In the different brands of cars, Hyundai has the highest brand

preference of oil followed by Maruti, TATA, and Toyota.

Most of the respondents change oil of their vehicle for above 5000

Km’s.

Most of the customers buy engine oils from petrol pumps only as it

offers convenience and as a symbol, of quality and professional

service can be obtained.

Most of the vehicle owners are well qualified and hence make their

own decision in buying different brands of engine oil.

The car owner would prefer to go to authorized service stations or

private service stations as they depend completely on professionals

to change the engine oil. This is because they would like to change

the running of the vehicles

Most of vehicle owners are aware about different types of engine

oils, as it is one of the oldest public sector company and a quality

provider to the customers.

In the brand tested SERVO brand is the most preferred brand by

the vehicle owners followed by CASTROL, Hindustan Petroleum

Corporation, Bharath Petroleum Corporation, etc.

The engine oils enjoy brand loyalty among the respondents.

Easy availability to the customers and maintaining consistent

quality are the two most important attributes in the sale of engine

oils.

Lube awareness that is making the product aware to the customers

at petrol pumps is the most important promotional activity in making

the engine oil more popular.

In the Analysis of two wheelers segment, demographically they have

been classified as follows:

88% were respondents were male.

12% were respondents were female.

Most of the two wheelers use loose oil except few who use sealed

tin oils.

Out of 100% sample size 56% were motorbikes, 35% were

scooters and 09% were Mopeds.

Most of the two wheelers owners remain brand loyal to SERVO 2T

oils.

CASTROL has higher market share in the brands of 2T oils for two

wheelers followed by INDIANOIL.

Easy availability and a good quality are the most important criteria

for the sales of 2T oils in two wheelers segment.

Lube awareness that is making the product aware to the customers

at petrol pumps is the most important promotional activity in

making the 2T oil more popular. To most extent, display hoardings

at intersections and junctions and media ads also play very

important role in the promotion of the 2T oils.

CONCLUSIONS:

Automobile run on petrol as the fuel are many type of automobiles such

as two-wheelers, and more than four-wheelers run on the road.

Depending upon the different engine capacities of the vehicle. The engine

those consume petrol as fuel need engine oil necessarily for smooth

running of the engine. Petrol is used as fuel for movement but it cannot

maintain smoothness in the engine. Hence, there is need for lubricating

the engine with necessary engine oils to increase the efficiency of the

engine. There are various such oils available in the market, for all types

of vehicles. One of the major suppliers of such engine oils and other

different types of oils in INDIA is INDIANOIL CORPORATION LTD

(IOCL).The study is conducted to find out the perception of customers

towards engine oils offered by INDIANOIL with a brand name as

SERVO. To show that a suitable strategy for marketing can be developed.

Around 50 Customer of 4 wheelers alone & 50 Customer of 2 wheelers

were conducted to obtain their perception on different types of engine oils

available in the market.

RECOMMENDATIONS & SUGGESTIONS

Some of the suggestion in order to improve the Indian Oil Co., Ltd

Where as follows:

Indian-Oil Corporation Limited has many differentiated brands of

engine oils in the market but as compared to the competitors, the

numbers of types of brands are less in Indian-oil.

It should introduce differentiated engine oils for different engine

designs and communicate such differentiation to the target market.

Indian oil has to develop a brand preview strategy as its close

competitor Castrol does. They should design an attractive brand for

their engine oil, good packing based on the culture of the society

and it should be attractive.

The philosophy of the brand equity may be adopted and every

effort of marketing program should be conducted as developing the

brand equity.

The petrol pumps owners, oil dealers whether wholesale or

retailers should be provided better incentives and good margin of

profit to create pump strategy to increase the sales of engine oils.

The pull strategy should be created through sufficient awareness

campaigns.

More lube advertisement near petrol pumps and display hoarding at

junctions and intersection should be used as promotional activities.

The company should appoint preferred personnel at selected petrol

pumps through media service to target the customer.

A corporate advertisement should be provided in electronic media

and print media.

The company should appoint an admirable person as brand

ambassador of the product to increase the sales as people admire

many great personalities.

Some P.O.P material like posters, handbills, pamphlets clearly

indicating the benefit to customers from the company.

consumer perception towards indian oil in kolar

Documents

year indian oil

control of indian oil

indian oil blending

merger of indian oil

indian oil group of

owned subsidiary of

indian oil launched

merger of indian refineries