study of market perception of hpcl diesel engine
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HINDUSTAN PETROLEUM CORPORATION LTD.
Future full of energy
PROJECT REPORT ON
STUDY OF MARKET PERCEPTION OF HPCL DIESEL ENGINE
LUBRICANTS.
Submitted by Under the guidance ofSantosh Singh .M5-34 PGDM, (Marketing) GUIDE, SSIM
SIVA SIVANI INSTITUTE OF MANAGEMENTKOMPALLY, SECUNDERABAD
(2010-12)
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ACKNOWLEDGEMENT
Through this acknowledgement I want to express my sincere gratitude to Mr. P.ABHISEK the
LUBRICANT SALES HEAD OF COMPANY for giving me an opportunity to work on this project
under his able guidance. He guided me a lot from time to time and without his motivation the project
was impossible.
I am also thankful to . , faculty member of Siva Sivani
Institute of Management for his valuable help.
I would also like to express my gratitude towards colleagues who had co-operated a lot while
preparing this project.
Santosh Singh
PGDM (Marketing)
M5-34
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DECELARATION
I Santosh Singh declare that this project report titled STUDY OF MARKET
PERCEPTION OF HPCL DIESEL ENGINE LUBRICANTS is an original work done by me
under the guidance of., the faculty guide of Siva
Sivani Institute of Management. I further declare that it is my original work as a part of my academic
course.
PLACE: Secunderabad Santosh Singh
DATE:
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CONTENTS
TABLE OF CONTENT
PAGE
ACKNOWLEDGEMENT
DECLARATION
Chapter-1 --- --------------------------------------------------------------------- (5)
Introduction
Industry Profile
Company Profile
Chapter 2 ------------------------------------------------------------------------ (23)Objectives of the study
Scope of the study
Significance of the Study
Literature Review
Scheme of Dissertation
Chapter -3 ------------------------------------------------------------------------- (29)
Research Methodology
Research Design
Sample Profile
Tools and Methods Data Collection
Data Processing and Analysis
Limitations
Chapter-4 --------------------------------------------------------------------------- (32)
Data Analysis
Chapter-5 ---------------------------------------------------------------------------- (43)
Conclusion and findings
Chapter-6 ----------------------------------------------------------------------------- (45)
Bibliographie
Questionnaire
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Chapter-1
INTRODUCTION
INDUSTRY PROFILE
COMPANY PROFILE
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INTRODUCTION
Liberalization has brought a significant change in lubricant market. Earlier the lubricant market was
dominated by a few namely BPCL, IBP & IOCL. But with the arrival of new foreign entities in the
market the entire scenario has changed. Today companies like SHELL, CASTROL, GULF OIL, and
SHELL, etc. are giving Indian PSUs a tough time.
Foreign companies are busy in making brand image for their product to capture the Indian Lubes
Market. To attract the customers and to strengthen the market demand, several companies have made
plan to enter in Lubes Market with the collaboration of top most players who have good reputation
and experience in world Lubes market. In this way we can say that in the coming years there will be
tremendous change in Indian Lubes market.
Under these new conditions it becomes very necessary to know consumption pattern of various
Authorized Service Stations and Garages and to know the various market strategies adopted by the
competitors, as this will help the company in formulation of future strategies.
The first reason for choosing this industry was out of sheer curiosity to understand the all ready
existing Lubes market in the region of Hyderabad and how the rest management moves from this
point and a more fruitful tomorrow.
Secondly, working with this project we had been given the chance not only to give the suggestions to
improve the market shares of HP MILCY SUPER but also to become a part of promotional
activities, which was a great opportunity to get the exposure and to understand the market strategies
of different companies.
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Industry profile
These are exciting times for the lube industry in India. Each one of the vast contingent of 22
Multinationals and a total of 80 big & small players are vying for a pie of Rs.5, 500 Crore market.
Worldwide established brands, some of them albeit new to India, like Shell, Mobil, Elf, Pennzoil are
fighting it out with established Indian brands like SERVO & others to establish their foothold in the
6th largest lubricant market in the World. Compared to the average World consumption of 35
Million tones per annum & Asia-Pacific region consumption of 7.5 million tones, the Indian lube
industry with annual demand of 1 million tones is just behind Japan and China in Asia having a
demand growth rate of 4% compared to the World growth rate ranging between zero to 2%. That is
the lube industry in India today.
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 Government policy of deregulation followed by entry of multinationals through JVCs had its
effect on the market dominance of PSUs. This has been followed by sudden entry of lot many
players, each one claiming to have some international collaboration and a `foreign' brand name. This
had its initial impact and illusions in the market and the market became more volatile. During these
phases marketing channels of distribution had drifted from petrol stations to bazaar trade.
The 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
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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. Indian Oil virtually dominated and continues to dominate this sector
through their proven track record of quality product and vast network of professionalized pre sales &
after sales services. But 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 in
general and IOC in particular initially restricted their channel of distribution through their large
infrastructure of marketing network i.e., petrol stations & distributor network. 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 thecompany.
WHAT ARE LUBRICANTS
Lubricating oils are basically made of two components viz., Lube base oil which comes out from
refineries after refining the crude oil and has some inherent lubricating properties like any other
liquid. Greases are mixture of a thickening agent like soap with oil. The soap may be metallic soaps
like lithium, calcium etc. Greases are used where lubrication by oil is not possible. For example
wheel bearings, chassis of vehicles.
IOC is also in the process of establishing certain strategically located modern petrol stations on the
highways where apart from all way side amenities like motel, dhaba, restaurant, amusement parks,
toilets, car parking slots, wash rooms, communication facilities (STD/ISD,E-mail) etc. also service
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& repair shops of major OEMs of the country will be put up to facilitate quality services at right
price.
The coming years will ensure availability of more effective & customer friendly channel of
distribution and will have its impact in the long run on the short terms strategy presently beingpracticed in the automotive lubricant market. The strength of a marketing company more so in the
field of specialized lubricants definitely lies in their access to superior technology base. This is more
so because the automotive sector is undergoing a major technology up gradation programmed with
entry of reputed international automobile manufacturers in the market. Moreover, stringent emission
norms & eco-friendly devices are taking over old practices which will necessitate improvement in
performance of lubricating oils. Such challenges can not be encountered with only technological
collaborations but also input resourcing. Consistency of inputs and sound infrastructural base will
play a significant role to combat competition. The thrust in the coming years will be more on
adopting to Indian market & Indian road conditions and thereby it will be essential to develop
indigenous lubricants technology keeping pace with international standards.
Market Size
Total production of automotive lubricants in India is approximately 8 to 10 percent of global lube
production. 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. MNCs 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.
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Competitive Analysis
The first seeds of competition were sown in the early 1990s when following the liberalization of the
Indian economy, the government decided to open the Indian market to foreign competition. Import
of base oil, the key raw material, was de-canalized with IOC losing its status as the sole canalizing
agent .All quantitative restrictions were also removed. These developments naturally encouraged the
entry of foreign players on Indian shores who were already facing a slowdown in demand in their
local markets. The coming in of foreign participants created an excess supply situation in the Indian
automotive lubes market, which made it more difficult for the Indian lube manufacturers to survive.
Recent deregulations in the lubricant market have promised many new opportunities for the private
lube manufacturers. With the dismantling of Administered Price Mechanism (APM) the burden of
subsidies is now being passed on to the government. Private participants will also gain a presence in
the Indian oil and gas sector and hence there will be competition between participants that will
ensure the growth of the sector. In the next couple of years, the industry is going to witness sea
changes. Retail networks, logistics management, and risk management are going to be the crucial
factors. The stand-alone refineries will have to be merged with the marketing companies, as they do
not have the distribution infrastructure to sell their products in a deregulated market. Companies like
Reliance are already selling their products through petrol pumps. The monopoly of the public sector
holdings will no longer exist. MNCs will be able to sell their products through petrol pumps. Lubesmanufactured by Castrol, Gulf Oil etc, which are now sold at petrol pumps.
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.
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Company Profile
Board of Directors:-
Mr.Arun Balakrishnan
Chairman & Managing Director
Mr.S.Roy Choudhury
Director-Marketing
Mr.V. Vizia Saradhi
Director- Human Resources
Mr.B.Mukherjee
Director- Finance
HPCL is a Fortune 500 company, with an annual turnover of over Rs 1,03,837 Crores ($
25,142 Millions) during FY 2007-08, 16% Refining & Marketing share in India and a strong market
infrastructure. Corresponding figures for FY 2006-07 are: Rs 91,448 crores ($20,892 Million).
Hindustan Petroleum Corporation Limited (HPCL) is the result of a successful
convergence of four established companies. Today the second largest integrated oil refining and
marketing company in India, HPCL was born of the merger of ESSO, Lube India Ltd.
The Corporation operates 2 major refineries producing a wide variety of petroleum fuels &
specialties, one in Mumbai (West Coast) of 5.5 MMTPA capacities and the other in
Vishakapatnam, (East Coast) with a capacity of 7.5 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.
HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils.
The vast marketing network of the Corporation consists of Zonal offices in major cities and over 91
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Regional offices facilitated by a Supply & Distribution infrastructure comprising Terminals,
Aviation Service Stations, LPG Bottling Plants, and Inland Relay Depots & Retail Outlets. The
Corporation over the years has moved from strength to strength on all fronts. The refining capacity
steadily increased from 5.5 million tones in 1984/85 to 13.70 million metric tones (MMT) presently.On the financial front, the turnover grew from Rs. 2687 crores in 1984-85 to an impressive Rs 1,
03,837 Crores in FY 2007-08. HPCL is a Mega Public Sector Undertaking (PSU) with Navaratna
status. HPCL has achieved its market leadership through efficiency in production and management.
HPCL accounts for about 16% of the market share and 10.3% of the nation's refining capacity with
two coastal refineries, one at Mumbai (West Coast) having a capacity of 5.5 MMTPA and the other
in Vishakapatnam (East Coast) with a capacity of 7.5 MMTPA. HPCL also holds an equity stake of
16.95% in Mangalore Refinery & Petrochemicals Limited (MRPL), a state-of-the-art refinery.
HPCL owns the country's largest Lube Refinery with a capacity of 335,000 metric Tones which
amounts to 40% of the national capacity of Lube Oil production.
HPCL has returned "Excellent" performance for fifteen Consecutive years upto 2005-06, since
signing of the first MOU with the Ministry of Petroleum & Natural Gas. HPCL won the prestigious
MOU Award for the year 2006-07 for Excellent Overall Performance, and for being one of the Top
Ten Public Sector Enterprises who fall under the 'Excellent' category. HPCL performance for the
year 2007-08 also qualifies for "Excellent" rating.
Consistent excellent performance has been made possible by highly motivated workforce of over10,
800 employees working all over India at its various refining and marketing locations.
HPCL continually invests in innovative technologies to enhance the effectiveness of employees and
bring qualitative changes in service. Business Process Re-Engineering exercise, creation of Strategic
Business Units, ERP implementation, Organizational Transformation, Balanced Score Card,
Competency Mapping, benchmarking of refineries and terminals for product specifications.
HPCL has successfully integrated Information Technology in its activities at different levels. The
Enterprise Resource Planning (ERP) system is now operational on J.D.Edwards, an Oracle product,
across the Company.
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Corporate Governance in HPCL
Implementation
HPCL has taken necessary steps to comply with the requirement and spirit of Corporate
Governance .HPCL lays special emphasis on conducting its affairs within the framework policies,
internal and external regulations and in a transparent manner. Being a Government Company, its
activities are subject to review by several external agencies like the Comptroller & Auditor General
of India (CAG), the Central Vigilance Commission (CVC), Parliamentary Committees, Statutory
Auditors etc.
Advisory Council :
In the context of a highly competitive and dynamic environment of the Oil and Gas Sector, the
Corporation felt that an external Committee comprising of eminent people could be constituted to
seek their views and guidance, not only on the various ongoing activities, but also on its strategic
initiatives aimed towards growth and development. With this background, the Committee called as
Advisory Council was constituted in July, 2005 with the approval of the Board.
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The Committee comprises of the following members:
Shri V.K. Shunglu
Ex-CAG
Shri N.R. Narayana Murthy
Chairman and Cheif Mentor
Infosys Technologies Limited
Ms. Shailaja Chandra
Chairperson
Public Grievance Commission
Shri Manab Bose
Managing Director
Connectivity Consulting (P) Ltd
Shri Naresh Narad
Member
Public Enterprise Selection Board
Ms. Rama Bijapurkar
Marketing Consultant
Strategic Marketing Consulting
This Council has met twice so far on October, 01, 2005 and February 20, 2006. Aspects related to
performance of the Corporation, HPCLs Endeavour for global standards for various operations,
initiatives under the areas of Corporate Governance, Corporate Social Responsibilities etc. were
placed before this council. The suggestions/ observations made by the Council is being progressed
further by the Corporation. The advice from this highly eminent group would immensely benefit the
Corporation in the time to come
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Departmental details:-
HPCL is at par with that of the best global corporations in the hydrocarbons sector. For over a
quarter century now, HPCL has been consistently breaking new grounds in production and
marketing. A glimpse of the vast network already developed is given below in a table.
2007-
08
2006-
07
2005-
062004-05
Regional Offices 91 86 85 85
Terminals/Installations/TOPs 42 37 36 36
Depots 93 93 92 100
LPG Bottling Plants 43 42 41 40
ASFs 16 13 13 10
Retail Outlets 8329 7909 7313 6667
SKO/LDO Dealers 1648 1648 1648 1648
LPG Distributors 2232 2238 2202 2153
LPG Customers (in crores) 2.52 2.39 2.28 2.17
From the table it can be easily noticed how the marketing network has been strengthened over the
years. The dominance that is reflected in numbers is equally translated through the best quality of
service.
HPCL presently owns and operates two coastal refineries at Mumbai and Visakhapatnam along with
a joint venture refinery at Mangalore. A massive infrastructure comprising two cross country
pipelines and an extensive network of terminals, depots, bottling plants and aviation servicing
facilities contributes to India's growth every year.
Major Ongoing Projects
New FCCU at Mumbai Refinery:
Lube Oil Base Stock (LOBS) Up gradation project at Mumbai Refinery:
Diesel Hydro Treating (DHT) at Mumbai & Visakhapatnam refineries:
New Integrated Effluent Treatment Plant at Mumbai Refinery:
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Mission:-"HPCL, along with its joint ventures, will be a fully integrated company in the hydrocarbons sector
of exploration and production, refining and marketing; focusing on enhancement of productivity,
quality and profitability; caring for customers and employees; caring for environment protection.
It will also attain scale dimensions by diversifying into other energy related fields and by taking up
transnational operations."
Vision:-
To be a World Class Energy Company known for caring and delighting the customers with high
quality products and innovative services across domestic and international markets with aggressive
growth and delivering superior financial performance. The Company will be a model of excellence
in meeting social commitment, environment, health and safety norms and in employee welfare and
relations.
4 Ps of Marketing for diesel engine lubricants:-
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The 4 Ps of marketing that are considered to analyze any market when applied to the diesel engine
oil market. The observations are :-
Product: The product quality is likely same with some differences in the grades that are marketedby some of the companies like Castrol, IOCL. The companies are differentiating their products as
per the grade of the oil for example; HP Milcy super is superior to HP Milcy turbo. Castrol market
their brand CRB in the market to get the additional mileage over the other brands.
Price: The products in the market being more or less of the same quality; the price is an important
factor that drives the sales of the product in bazaar. However, when one considers the demographics
of the area and the customers profile it has been observed that location s where the customers are
very brand conscious the price of the product looses the significance. The customers attribute quality
to price and hence assume that a higher priced product is of higher quality. Brand image is directly
related to the price of the product in a highly brand conscious market.
Place: The product needs to be placed or sold from a large number of places for the product to gain
acceptance and popularity. The trick would be to place and sell the product from the maximum
possible number of retailers. The network development incentive on offer for HP Milcy super is
helping the product gain better position in the market. For the product to gain acceptance more
number of activities need to be organized so that the consumers at large notice the brand . Jo dikhta
hai wo bikta hai is the main mantra in the bazaar trade.
Promotion: The brand image of the product should be built in the mind of the customer. Consistent
availability, visibility and activity on the brand should be maintained in the bazaar to improvise the
image. The product promotions that have been undertaken are display a contest in the bazaar with a
part of scheme to the retailer is given to display the product on shelves. This insures that the product
gains good visibility in the market. Getting some boards of the product Milcy super should fixed at
prominent places in the market.
Marketing Strategy:
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The objectives of any and all marketing are not only to increase sales but also certain other
parameters.
There is some of the marketing strategy:-
Increase market share: The most necessary and easier ways of increasing the sales of theproduct are to increase the market share in current and existing markets. This can be achieved
by increasing constant promotional activities to both the retailers and also to the mechanics.
By increasing the market share in important and highly influential markets the advantages are
that the other markets usually have a tendency to imitate the important markets.
Increase customer acquisition:New customers ensure that the reach and also the popularity
of the product are on the rise. The targets for the number of new customers added should be.
Sufficient care should be taken to new customer to insure that the new customers are
supported well so as to increase the retention as the cost of acquiring new customers is
considerably high.
Develop new customers: The importance of developing new customers will be helpfull for
both the customer and also the sales for the company grow together. Moreover, it ensures
that more customers are interested in getting associated with the company for the support that
will enable the customer to grow and also that will be healpfull to grow the company.
Develop new markets: For any company to increase the market size will be beneficial. The
advantage of developing new markets is the first mover advantage of setting up and
captivating the customers over a longer period of time so as to increase the entry barriers for
competitors.
HP PRODUCT INFORMATION
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Though HP as a brand consist of varieties of products. But in the survey following
products were considered.
Two Stroke Engine Oil
1. Racer 2.Four Stroke Engine Oil
1. Racer 4.
Four Wheelers & Other Heavy Vehicle
1. MILCY TURBO
2. LAL GHODA
3. MILCY TOOFAN [Newly Launched]
4. MILCY SUPER
5. MILCY POWER
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Chapter-2
Objectives of the study
Scope of the study
Significance of the Study
Literature Review
Scheme of Dissertation
Objectives of the study:-
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To Study about the perception of the customer for HP MILCY SUPER.
To Study about the dealer perception regarding automotive lubricant HP MILCY SUPER.
To Study about mechanic perception regarding HP MILCY SUPER.
To get an idea about the types of outlets and their selling capacity of HP MILCY SUPER oil.
To know about various marketing strategies, schemes, promotional campaigns etc of the
competitors.
To know about the expectations of retailers especially from the company in the form of
different schemes etc.
To have proper understanding about HP Diesel engine lubricants.
Scope of the study:-
Study is restricted to different areas of Hyderabad and Secunderabad city.
It is related to HPCL and its competitors servo, Indian oil, BP, ELF,
Castrol, and Exon Mobil.
The study is confined to retailers, mechanics and customers only. Finally
to know these people perception regarding the product.
The survey was conducted on 150 samples.
Significance of the study: -
Through this study Researcher came to know about HPCL and its growth compared to its
competitors.
This study will also help to me to know about company and their new concepts position in the
market.
Through this study Researcher know about the availability of its products in the market.
This study directly deals with interaction of different kinds of people in the organization and in
market which helps me to understand the marketing communication system.
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Literature Review
In 9 Feb 2006 a research paper published from the research and advisory firm, India Analysis.This research study provided a comprehensive overview of the Indian lubricants' industry.
Study about market position is the key issue in this study. .Its competitors Castrol, IOCL, BP, e.t.c.
are trying to gain market share in the Lubricant market. . Just how this is done in such a competitive
market is the underlying issue. The major facts are that each company is coming up with new
products and ideas in order to increase their market share. The creativity and effectiveness of each
company's marketing strategy will ultimately determine the winner with respect to sales, profits, and
customer loyalty. In this they are also thinking of ways in which to increase market share in the
lubricant market. Although the goal of these companies is exactly the same, these companies rely on
somewhat different marketing strategies. Companies must be willing to accommodate their target
markets.
In 13 Apr, 2003 according to an article, HPCL is going to equip its Mumbai and Visakhapatnam
refineries with HPCL is currently reviewing the scope and cost of its nine million tonnes per
annum (mtpa) Guru Gobind Singh Refinery Limited (GGSRL) project, which was originally
projected to cost Rs 120 billion and which, due to its size, would be critical for its future financial
profile. The decision is also crucially linked to the Government of Indias (GoI) divestment of
management control along with part of its stake in the company to strategic partner.Diesel Hydro
Treating (DHT) facilities.
Towards development of a distinct Brand image, HPCL has launched Club HP which
symbolizes customer and convenience to its customers when they drive in for their fuel needs in
outlets. Automation for monitoring the Retail Outlet activities, introduction of Market System and
special locking devices to curb mal-practices are other steps that have been taken towards providing
quality products.
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Scheme of Dissertation:-This study has been carried out STUDY OF MARKET
PERCEPTION OF HPCL DIESEL ENGINE LUBRICANTS. The lay out of dissertation is as
follows;-
Introduction:- Introduction gives a brief idea about beverage industry, scope of study,
significance of study, objectives of study, MARKETING COMMUNICATION OF HPCL
DIESEL ENGINE LUBRICANT and literature review part.
Organization Profile:- This part comprises of industry profile and company profile. Thispart gives a brief idea about current trends in industry and company.
Research methodology:This part give an idea about research design, sample size/design and
method of data collection.
Analysis and Interpretations: This part tells about data analysis, method carried out for data
analysis and interpretations from the analysis part.
Discussions and Recommendations: This part gives an idea about some inputs to explore
some other parts of research for further studies and tells about which part is necessary for more
focused research.
Bibliography and Annexure:- This part comprises of references taken for this study and
questionnaire which was framed for this study.
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Chapter-3
Research Methodology
Research Design
Sample Profile
Tools and Methods Data Collection
Data Processing and Analysis
Limitations
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Research Methodology:-
This research involved a study, which was descriptive as well as explorative in nature. It basically
aims at gathering data about how the HPCL Ltd is communicating their brand in the mind of
retailers, mechanic & customers.
Sample Profile: - Sampling plan consists of:
a) Sampling Unit: - The retailer of lubricant shop, garage mechanic,customers will be
selected from different places of Secunderabad/Hyderabad.
b) Sampling Procedure: - Simple Random sampling procedure was followed.
c) Sampling Method: - Data will be collected by retailer survey. The retailers are
directly contacted and interviewed at their retail counter.
d) Sample Size: Sample size of the project was 150. 50 for retailers, 50 for customer,
50 for garage mechanic.
Research Design:-
The primary data was collected through the surveys. For the survey the personal interview retailers
and mechanics and customers were targeted in various regions of Hyderabad/Secunderabad. Survey
was undertaken to find out the information that was needed for the study.
The research instruments used for collecting the primary data were the questionnaires prepared.
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Tools and Methods Data Collection:-
There are mainly two types of data:
1- Primary Data
2- Secondary Data
1. Primary Data Collection: -Primary data collected by Surveys:
Survey method of data collection is preferred which is very suitable to reach the researchers motto.
Research instrument:- Printed questionnaire had used as a research instrument to collect the
required information from respondent.
Area of Survey: - The survey was conducted in different location of Hyderabad/Secunderabad
city.
2. Secondary data collection:- secondary data was not available with retailers and garage
mechanics ,so these are collected from company records, books ,websites , e.t.c.
LIMITATIONS OF THE SURVEY
There was a sincere attempt to conduct the survey in the most efficient and scientific possible
manner. But the survey does have some limitations. The limitations of this survey were as follows.
1. It Biased opinion of retailers, customers and mechanics.
2. I found some difficulty in getting full attention of customers.
3. Limited available time appox two month for IIP available for conducting the survey.
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Chapter-4
Data Analysis
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1. Market Penetration of Lubricants in the market.
Market penetration
Castrol CRB Plus
36%
Servo super
28%
HP Milcy super
24%
BP Mak
8%
others
4%
Castrol CRB Plus Servo super HP Milcy super BP Mak others
In this researcher got that Castrol CRB Plus, Servo super having highest penetration in the market
.Penetration of HP Milcy is slightly less than servo and better than other brand.
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2. Highest selling product in retail shops
percentage selling in retail shop
castrol crb plus
66%
hp milcy super
14%
servo super20%
castrol crb plus
hp milcy super
servo super
1- Castrol crb (66%) 2- Servo (20%) 3- Hp Milcy super (14%)
From the above data we conclude that Castrol crb plus is the highest selling product in the market
out of 100% Castrol CRB 66% got no1 in sells then Servo super 20% got no2 and HP Milcy super
14% no3 in highest selling according to retailers.
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3. Reason for being the highest selling product
Reason for highest selling
availability
24%
branding
28%promotion
16%
quality
20%
packeging
12%
availability
branding
promotion
quality
packeging
From the above data Researcher can conclude that availability and branding of the product are the
main factors for being an highest selling in the market.
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4. Perception of retailers regarding the price of HP MILCY SUPER
percieved price by retailers
high
4%
medium
66%
low
30%
high
medium
low
According to 66% respondent respond price of HP milcy super is medium instead of that 30% said it
is low and only 4% believe that it is high price that is negligible in consideration.
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5. Promotional schemes affect the sales on lubes?
5.factors affect
yes
70%
no
30%
yes
no
According to this 70% respondent respond that schemes given by company for retailers ,mechanic
and customer is affect sales, only 30% are not agree .
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6. Complain against quality of HP products.
quality complain
yes
18%
no
82%
yesno
Here Researcher found that 82% of Respondent are saying that there is not any quality complain in
HPCL Products.
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7. Percentage of customer taking suggestions from mechanics about oils.
percentage of customers taking suggestion
0-20%
4%21-40%
8%
41-60%
16%
61-80%
20%
more than
52%
0-20%
21-40%
41-60%
61-80%
more than
From the above data researcher can conclude that more than 52%customer are taking suggestionfrom mechanics.
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8. Reason behind brand recommended by mechanics.
mechanic scheme
10%
Longer drain period
52%
customer demand
30%
Any other reason
8%
mechanic scheme Longer drain period customer demand Any other reason
Here we can found that 52% of them are recommending because of longer drain and 30% are for
customer demand and rest of them other factors are also influencing.
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9. Reason for using any brand by customer?
Here researcher found that most of them are using lubricant oil due to mechanic recommendation.NOTE: Here researcher found that Low ended customers like lorry, truck drivers, autoriksaw drivers
those who are not careless are taking any suggestion.
36
1, 2%7, 14%
3, 6%
0, 0%
39, 78%
Quality
Performeance
Brand
Price
mechanic recommendation
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10.kind of scheme expected by customer
kind of scheme like by customer
Discount
52%cash coupon
38%
no idea
10%
Discount
cash coupon
no idea
Here we found that out of 50 respondents 52% respondents like discount on pack while 38% are
cash coupon and those who do not know about scheme or do not have their own vehicle are very
less.
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Chapter-5
Findings
Findings
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Market Position of HP milcy super is comparatively good with respect to its competitors in
this segment, it is not much lower than its strongest competitor like Castrol, IOCL and it is
better in position than others.
In this research researcher found that Distribution channel of HP lubricants in Koti ,
Moosapet and Ameerpet is poor thats why company is lacking in these areas and some other
areas.
Schemes for retailers garage mechanic and end consumer plays an important role for
deciding sales so schemes like cash coupon , discount , free issue on pack coins and other gift
items should given to mechanics and end consumers.
Margin is an important factor which plays an important role to sales in retails shops and it
will be beneficial to attract more no of mechanics towards the product.
Mou or recommendation plays an important role to increase the market share like IOCL
maruti genuine oil elf recommended by Ashoak Leyland.
In research researcher found that there is 82% respondent are not having any quality
complain against HP Milcy super in diesel engine segment.
Longer drain period of lubricant was main factor for which garage mechanics are
recommending any particular oil.
HPCL is not focus about in shop branding where as its strongest competitors IOCL , Castrol
and others are doing this activity.
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Castrol visibility was seen maximum in market. One reason behind this is that Castrol gives
money and gift to the retailers for the display of their product especially during the launch of
a new product.
Packaging of HP in diesel engine segment is not good in comparison to its competitors.
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Chapter-6
Conclusion and Suggestion
Bibliography
Annexure
Questionnaire
CONCLUSION
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Working on this project was an enriching experience for us. Not only did Researcher get to know the
working of the lubricants industry researcher also got to know the major players in the industry,
different market strategies and the various distribution channels adopted. In this project researcher
had been given the chance to implement the suggestions, which had been suggested by researcherand also had opportunities to see what was the result or impact of the promotional activities. In this
highly competitive industry it is very difficult to maintain leading position. Researcher found out
that there was scope for improvement. Though HPCL was the leading brand the distribution channel
left a lot to be desired. Also being the leading brand advertising was few and for between researchers
found out that there was a constant hammering needed for the ultimate customers to recognize the
brand.
It is imperative that HINDUSTAN PETROLEUM CORPORATION LTD. fill this little chinks in its
armor so that it can maintain its leadership in the coming years when the competition is set to hot up
with many new private players set to enter the market.
Recommendations and Suggestion:-
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HP should give focus to aware its product HP Milcy super to the mechanics because 78%
customer is taking mechanics suggestion or recommendation.
HP should give schemes for mechanics and end consumer. This factor plays an importantrole in maintaining the mechanics and end consumer to opt for a particular brand.
HP should take some steps for in shop branding and out shop branding so that it can also
compete with its competitors.
HP should also focus about distribution of its product in this segment because in some of the
areas researcher found that many new players are dominating like (vedool, Exon Mobil,
Volvo line).
HP official try to take appropriate step to short out the problems of Dealers, Shopkeepers and
Mechanics. For this purpose officers should keep in touch with them.
HP try to focus about their brand awareness to its end consumer because some of them are
not aware about brand name of lubricants oil, reason is they are not much educated like:-
Truck drivers , Lorrys driver , Autoriksaw driver .
HP should give focus on packaging on HP Milcy super because the packaging is not good in
comparison of its competitors.
HP should give focus to aware its product HP Milcy super to the mechanics because more
than 80% customer is taking mechanics suggestion or recommendation.
In this research researcher found that there is 82% respondent are not having any quality
complain against HP Milcy super in diesel engine segment.
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Major areas surveyed:-
Medchal
Bwonpally
Moosapet
Ameerpet
Koti
Santoshnagar
Uppal
Mahaboobganj
Barkatpura
Miyapur
Chandannagar
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Bibliography:-www.HPCL.comwww.wikkipedia.comwww. Google.com
Text Book:-
Business Statistics G.C. BeriMarketing Management Kotler and Keller
Marketing Management V. S. Ramaswamy & S. N. Kumar
RESEARCH PAPER:-News Paper & MagazineThe Hindu and Business WorldThe Financial express
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Annexure:-
QUESTIONNAIRE (FOR RETAILERS)Name of Retailer :
Address of Shop :
Year of Establishment : _________
1) Which of the following companys product do you stock in 20w-40?
Castrol CRB PLUS [ ] HP MILCY SUPER [ ]
BP MAK [ ] OTHERS [ ]
SERVO SUPER [ ]
2) Which is the highest selling product of the above?
3) Reasons for being the highest selling product? (Tick whichever applicable)
Sl No Attribute Rank
A Availability
B Branding
C Promotion
D QualityE Packaging
3) Rate the following companies in terms of attributes given below :-
(On a scale of 5, 1 being the lowest and 5 being the highest)
HP
MILCY
SERVO
SUPER
CASTROL
CRB PLUS
BP MAK OTHERS
Quality
Margin
AvailabilityPromotion
Additional services
5) Rate the following companies according to your preferences: - Rate (1-5).
Sl No Company Rank
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A HPCL
B Indian Oil
C BP
D Castrol
E Others
6) How do you perceive the price of HP Milcy Super as compared to its competitors?
a) High b) Medium c) Low
7) Do you feel that buying behavior of customers is affected by promotional schemes on Lubes
a) Yes [ ] b) No [ ]
If yes, what kinds of schemes do you feel most appropriate for
Customers?
___________________________________________________
8) Did the customer ever complain against quality of HP products?
Yes [ ]No [ ]
If Yes, Give the details about the complaints
1.
2.
3.
4.
QUESTIONNAIRE(for Garage)
Garage Name and Address :
Year of Establishment : _________
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Mechanic Name :
1) Which of the following brand do you refer to customer in 20w 40 series
a. CASTROL CRB PLUS [ ]
b. HP MILCY SUPER [ ]c. SERVO SUPER [ ]
d. BP [ ]
e. OTHERS [ ]
2) Why do you refer above brands :-
a. quality [ ]
b. performance [ ]
c. price [ ]
d. brand [ ]
3) Which brands are the mechanics presently promoting?
a.
b.
c.
4) Why do you promote that particular brand
a. Mechanic scheme [ ]
b. Longer drain period [ ]
c. Customer demand [ ]
d. Any other reason [ ]
5) Percentage of customer taking suggestions from mechanics about oils
a. 0 20% [ ]
b. 21-40% [ ]
c. 41-60% [ ]
d. 61-80% [ ]
e. More [ ]
6) Which of the following brands advertisements the mechanic has ever seen?
a. CRB PLUS [ ]
b. MILCY super [ ]
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c. Servo Super [ ]
d. BP [ ]
e. OTHERS [ ]
7) How do you perceive the price of HP MILCY SUPER compared to its competitors?a) High ( ) b) Medium ( ) c) Low ( )
8) Rate the following companies according to your preferences: - Rate (1-5)
Sl No Company Rank
A HPCL
B Indian Oil
C BP
D CastrolE Others
QUESTIONNAIRE (FOR CUSTOMERS)
Name of customer :
Contact no : ______________________________
Vehicle: _______________ Year :__________________
Model _________________ Engine (CC) _______________
Make: _________________ Horse Power: ______________
1) Which of the following companys product do you use in 20w-40?
Castrol CRB PLUS [ ] HP MILCY SUPER [ ]
BP MAK [ ] OTHERS [ ]
SERVO SUPER [ ]
2) why do you use above brand?
a) quality b) performance c) brand d) price e) mechanic recommendation
3) How do you perceive the price of hp milcy super as compared to its competitors?a) High b) Medium c) Low
4) What kinds of schemes would you like?
________________________________________________________
5) Rate the following companies according to your preferences: - Rate (1-5)
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Sl No Company Rank
A HPCL
B Indian Oil
C BP
D Castrol
E Others