HINDUSTAN PETROLEUM CORPORATION LTD.

Future full of energy
PROJECT REPORT ON
“STUDY

OF MARKET PERCEPTION OF HPCL DIESEL ENGINE LUBRICANTS”.

Submitted by Santosh Singh
M5-34 PGDM, (Marketing)

Under the guidance of ………………………………. …………………
GUIDE, SSIM

SIVA SIVANI INSTITUTE OF MANAGEMENT KOMPALLY, 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
DATE:

Santosh Singh

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CONTENTS
TABLE OF CONTENT PAGE ACKNOWLEDGEMENT DECLARATION Chapter-1 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 --- --------------------------------------------------------------------- (5)

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Chapter-1
 INTRODUCTION  INDUSTRY PROFILE  COMPANY PROFILE

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etc. 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. 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. Today companies like SHELL. 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. as this will help the company in formulation of future strategies. Foreign companies are busy in making brand image for their product to capture the Indian Lubes Market. Secondly. GULF OIL. But with the arrival of new foreign entities in the market the entire scenario has changed. are giving Indian PSU’s a tough time. 6 . and SHELL. Earlier the lubricant market was dominated by a few namely BPCL. 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. To attract the customers and to strengthen the market demand. IBP & IOCL. CASTROL.INTRODUCTION Liberalization has brought a significant change in lubricant market.

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%. With the distribution & canalization of base oil import being controlled by the Government of India. like Shell. • • • • • • Petrol Stations Wholesale Distributors Lube Oil Shops Auto Spare Shops Authorized Service Stations Garages 7 . Prior to 1992 the lube industry in India was controlled by the 4 major Public Sector Oil companies namely Indian Oil. This had its initial impact and illusions in the market and the market became more volatile. The Government policy of deregulation followed by entry of multinationals through JVCs had its effect on the market dominance of PSU’s. Elf. Mobil. some of them albeit new to India.5. the PSU Oil Companies controlled 90% of the market share.BPC & IBP and a handful of private companies like Castrol. Tidewater & others. This has been followed by sudden entry of lot many players. each one claiming to have some international collaboration and a `foreign' brand name. Gulf. Compared to the average World consumption of 35 Million tones per annum & Asia-Pacific region consumption of 7. HPC. Worldwide established brands. 500 Crore market. That is the lube industry in India today. The Marketing Channels The marketing channels for automotive lubricants in India consist of the following. Each one of the vast contingent of 22 Multinationals and a total of 80 big & small players are vying for a pie of Rs.Industry profile These are exciting times for the lube industry in India. 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. During these phases marketing channels of distribution had drifted from petrol stations to bazaar trade.

e. In the industrial segment. calcium etc. Lube base oil which comes out from refineries after refining the crude oil and has some inherent lubricating properties like any other liquid.. Steel Plants. dhaba. 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. performance track record. PSU oil companies in general and IOC in particular initially restricted their channel of distribution through their large infrastructure of marketing network i. communication facilities (STD/ISD. price.e. customer focused. restaurant. Here.E-mail) etc. the PSU’s could successfully maintain their stronghold due to the reasons that the requirement is most end use specific. and Chemicals & Heavy Engineering Industries. Greases are mixture of a thickening agent like soap with oil.. Automotive & Industrial brand of lubricants. The focus happened to be on ensuring quality & customer accountability and restrict mushrooming of spurious trade in bazaar through the marketing channels where some kind of control could be exercised by the company. Power Houses.. WHAT ARE LUBRICANTS Lubricating oils are basically made of two components viz. productivity linked & service oriented. also service 8 . 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. Fertilizers. quality. amusement parks. The industrial segment basically comprises of Core Sector industries like Defense.. 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. wash rooms. For example wheel bearings.Lubricant Industry Segmentation The lubricant industry can be divided into two major categories i. Railways. chassis of vehicles. The soap may be metallic soaps like lithium. 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.e. Coal Mines. petrol stations & distributor network. Greases are used where lubrication by oil is not possible. car parking slots. toilets. State Transport Undertakings.

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 being practiced 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. Unlike other countries where lubricant demand has witnessed stagnation. Diesel lubes comprise 70 percent of the market and petrol based lubricants cover the rest. The public sector contributes to over 60 percent of the revenues for this market. 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 Indian market has been growing at approximately 7 percent per annum for the past 2 years. As diesel lubes are used by commercial vehicles. Moreover. Automotive lubricants are further divided into diesel lubes and petrol lubes.& repair shops of major OEMs of the country will be put up to facilitate quality services at right price. which have to cover greater distances. 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. 9 . their market share is higher. MNC’s have 5 percent market share and the remaining share is held by the unorganized sector. Market Size Total production of automotive lubricants in India is approximately 8 to 10 percent of global lube production. 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. stringent emission norms & eco-friendly devices are taking over old practices which will necessitate improvement in performance of lubricating oils.

which has the potential to change the face of the lubricant industry. MNC’s will be able to sell their products through petrol pumps. logistics management. 10 . which made it more difficult for the Indian lube manufacturers to survive. was de-canalized with IOC losing its status as the sole canalizing agent . the scenario has improved with higher sales of commercial vehicles and two-wheelers.All quantitative restrictions were also removed. However.Competitive Analysis The first seeds of competition were sown in the early 1990’s when following the liberalization of the Indian economy. the key raw material. With the dismantling of Administered Price Mechanism (APM) the burden of subsidies is now being passed on to the government. Companies like Reliance are already selling their products through petrol pumps. growth in the automotive lubricants industry will largely depend on the overall performance of the economy. long drain lubes. Outlook In the future. Given the rising competition. one will witness intense competition in a slow growing market marked by a consolidation activity. The stand-alone refineries will have to be merged with the marketing companies. Import of base oil. 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. which are now sold at petrol pumps. the industry is going to witness sea changes. and risk management are going to be the crucial factors. The monopoly of the public sector holdings will no longer exist. as they do not have the distribution infrastructure to sell their products in a deregulated market. 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. Retail networks. Lubes manufactured by Castrol. Gulf Oil etc. In the shorter term. in the future volume growth will be affected because of use of better quality. This will increase the replacement cycle for lubes. In the past one and a half years. success of a product would largely depend how well it is branded and distributed. In the next couple of years. Recent deregulations in the lubricant market have promised many new opportunities for the private lube manufacturers. the government decided to open the Indian market to foreign competition.

16% Refining & Marketing share in India and a strong market infrastructure. The Corporation operates 2 major refineries producing a wide variety of petroleum fuels & specialties. Today the second largest integrated oil refining and marketing company in India.142 Millions) during FY 2007-08.448 crores ($20. Hindustan Petroleum Corporation Limited (HPCL) is the result of a successful convergence of four established companies. one in Mumbai (West Coast) of 5. The vast marketing network of the Corporation consists of Zonal offices in major cities and over 91 11 . (East Coast) with a capacity of 7. with an annual turnover of over Rs 1.5 MMTPA capacities and the other in Vishakapatnam.V. HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils.95% in Mangalore Refinery & Petrochemicals Limited.837 Crores ($ 25.Arun Balakrishnan Chairman & Managing Director Mr.892 Million).B.Finance HPCL is a Fortune 500 company . HPCL holds an equity stake of 16.Company Profile Board of Directors:Mr. Corresponding figures for FY 2006-07 are: Rs 91. HPCL was born of the merger of ESSO. Lube India Ltd.5 MMTPA.Mukherjee Director.Roy Choudhury Director-Marketing Mr.03.S.Human Resources Mr. a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. Vizia Saradhi Director.

3% of the nation's refining capacity with two coastal refineries.Regional offices facilitated by a Supply & Distribution infrastructure comprising Terminals. a state-of-the-art refinery. benchmarking of refineries and terminals for product specifications. since signing of the first MOU with the Ministry of Petroleum & Natural Gas. 12 . HPCL accounts for about 16% of the market share and 10. and Inland Relay Depots & Retail Outlets. HPCL has returned "Excellent" performance for fifteen Consecutive years upto 2005-06. HPCL owns the country's largest Lube Refinery with a capacity of 335. Business Process Re-Engineering exercise. across the Company. Consistent excellent performance has been made possible by highly motivated workforce of over10.5 MMTPA and the other in Vishakapatnam (East Coast) with a capacity of 7. HPCL continually invests in innovative technologies to enhance the effectiveness of employees and bring qualitative changes in service. The Corporation over the years has moved from strength to strength on all fronts. Organizational Transformation.Edwards. HPCL has achieved its market leadership through efficiency in production and management. Balanced Score Card.95% in Mangalore Refinery & Petrochemicals Limited (MRPL). one at Mumbai (West Coast) having a capacity of 5. 2687 crores in 1984-85 to an impressive Rs 1. The Enterprise Resource Planning (ERP) system is now operational on J. HPCL is a Mega Public Sector Undertaking (PSU) with Navaratna status. HPCL also holds an equity stake of 16. an Oracle product. 03. On the financial front. Competency Mapping. creation of Strategic Business Units.70 million metric tones (MMT) presently. Aviation Service Stations. The refining capacity steadily increased from 5. LPG Bottling Plants. and for being one of the Top Ten Public Sector Enterprises who fall under the 'Excellent' category. ERP implementation. the turnover grew from Rs.D. HPCL won the prestigious MOU Award for the year 2006-07 for Excellent Overall Performance.5 MMTPA. HPCL performance for the year 2007-08 also qualifies for "Excellent" rating. 800 employees working all over India at its various refining and marketing locations.5 million tones in 1984/85 to 13. HPCL has successfully integrated Information Technology in its activities at different levels.837 Crores in FY 2007-08.000 metric Tones which amounts to 40% of the national capacity of Lube Oil production.

2005 with the approval of the Board. 13 . its activities are subject to review by several external agencies like the Comptroller & Auditor General of India (CAG). the Central Vigilance Commission (CVC). the Corporation felt that an external Committee comprising of eminent people could be constituted to seek their views and guidance. the Committee called as Advisory Council was constituted in July. Parliamentary Committees. but also on its strategic initiatives aimed towards growth and development. not only on the various ongoing activities. Statutory Auditors etc.ÿ Being a Government Company. internal and external regulations and in a transparent manner.HPCL lays special emphasis on conducting its affairs within the framework policies. With this background.Corporate Governance in HPCL Implementation HPCL has taken necessary steps to comply with the requirement and spirit of Corporate Governance . Advisory Council : In the context of a highly competitive and dynamic environment of the Oil and Gas Sector.

Narayana Murthy Chairman and Cheif Mentor Infosys Technologies Limited Shri Manab Bose Managing Director Connectivity Consulting (P) Ltd Ms. Corporate Social Responsibilities etc. Shailaja Chandra Chairperson Public Grievance Commission Shri Naresh Narad Member Public Enterprise Selection Board This Council has met twice so far on October. Rama Bijapurkar Marketing Consultant Strategic Marketing Consulting Shri V. Aspects related to performance of the Corporation. initiatives under the areas of Corporate Governance. HPCL’s Endeavour for global standards for various operations. 2006. The advice from this highly eminent group would immensely benefit the Corporation in the time to come 14 . Shunglu Ex-CAG Ms.The Committee comprises of the following members: Shri N. The suggestions/ observations made by the Council is being progressed further by the Corporation. were placed before this council. 01.K. 2005 and February 20.R.

HPCL presently owns and operates two coastal refineries at Mumbai and Visakhapatnam along with a joint venture refinery at Mangalore. 200708 Regional Offices Terminals/Installations/TOPs Depots LPG Bottling Plants ASFs Retail Outlets SKO/LDO Dealers LPG Distributors LPG Customers (in crores) 91 42 93 43 16 8329 1648 2232 2. The dominance that is reflected in numbers is equally translated through the best quality of service. A glimpse of the vast network already developed is given below in a table. For over a quarter century now.39 200506 85 36 92 41 13 7313 1648 2202 2. bottling plants and aviation servicing facilities contributes to India's growth every year. A massive infrastructure comprising two cross country pipelines and an extensive network of terminals.28 2004-05 85 36 100 40 10 6667 1648 2153 2.17 From the table it can be easily noticed how the marketing network has been strengthened over the years. HPCL has been consistently breaking new grounds in production and marketing.Departmental details:HPCL is at par with that of the best global corporations in the hydrocarbons sector. depots.52 200607 86 37 93 42 13 7909 1648 2238 2. 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: 15 .

caring for customers and employees. along with its joint ventures. refining and marketing. 4 P’s of Marketing for diesel engine lubricants:- 16 . health and safety norms and in employee welfare and relations. caring for environment protection.Mission:"HPCL. The Company will be a model of excellence in meeting social commitment. will be a fully integrated company in the hydrocarbons sector of exploration and production. environment." 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. It will also attain scale dimensions by diversifying into other energy related fields and by taking up transnational operations. quality and profitability. focusing on enhancement of productivity.

Jo dikhta hai wo bikta hai is the main mantra in the bazaar trade. The customers attribute quality to price and hence assume that a higher priced product is of higher quality. Marketing Strategy: 17 . The trick would be to place and sell the product from the maximum possible number of retailers. Promotion: The brand image of the product should be built in the mind of the customer. visibility and activity on the brand should be maintained in the bazaar to improvise the image. IOCL. Place: The product needs to be placed or sold from a large number of places for the product to gain acceptance and popularity. Consistent availability. Getting some boards of the product Milcy super should fixed at prominent places in the market. This insures that the product gains good visibility in the market. 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. the price is an important factor that drives the sales of the product in bazaar.The 4 P’s of marketing that are considered to analyze any market when applied to the diesel engine oil market. The network development incentive on offer for HP Milcy super is helping the product gain better position in the market. The observations are :Product: The product quality is likely same with some differences in the grades that are marketed by some of the companies like Castrol. For the product to gain acceptance more number of activities need to be organized so that the consumers at large notice the brand . Brand image is directly related to the price of the product in a highly brand conscious market. HP Milcy super is superior to HP Milcy turbo. when one considers the demographics of the area and the customer’s profile it has been observed that location s where the customers are very brand conscious the price of the product looses the significance. The companies are differentiating their products as per the grade of the oil for example. Castrol market their brand CRB in the market to get the additional mileage over the other brands. However. Price: The products in the market being more or less of the same quality.

• 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. 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. The targets for the number of new customers added should be.The objectives of any and all marketing are not only to increase sales but also certain other parameters. This can be achieved by increasing constant promotional activities to both the retailers and also to the mechanics. • Increase customer acquisition: New customers ensure that the reach and also the popularity of the product are on the rise. HP – PRODUCT INFORMATION 18 . • 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. 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. Moreover. There is some of the marketing strategy:• Increase market share: The most necessary and easier ways of increasing the sales of the product are to increase the market share in current and existing markets. 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.

MILCY TURBO 2.Though HP as a brand consist of varieties of products. Two Stroke Engine Oil 1. But in the survey following products were considered. Four Stroke Engine Oil 1. LAL GHODA 3. MILCY POWER 19 . MILCY SUPER 5. Four Wheelers & Other Heavy Vehicle 1. Racer 2. Racer 4. MILCY TOOFAN [Newly Launched] 4.

Chapter-2  Objectives of the study  Scope of the study  Significance of the Study  Literature Review  Scheme of Dissertation Objectives of the study:- 20 .

 This study will also help to me to know about company and their new concepts position in the market.  To Study about mechanic perception regarding HP MILCY SUPER. Scope of the study:  Castrol.  To know about the expectations of retailers especially from the company in the form of different schemes etc. and Exon Mobil. Indian oil.  To have proper understanding about HP Diesel engine lubricants. promotional campaigns etc of the competitors. mechanics and customers only. ELF.  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. It is related to HPCL and its competitor’s servo.  The survey was conducted on 150 samples. 21 .  Through this study Researcher know about the availability of its products in the market. BP. schemes.  Study is restricted to different areas of Hyderabad and Secunderabad city. The study is confined to retailers.  To know about various marketing strategies.  To Study about the dealer perception regarding automotive lubricant HP MILCY SUPER. To Study about the perception of the customer for HP MILCY SUPER. Significance of the study:  Through this study Researcher came to know about HPCL and its growth compared to its competitors. Finally to know these people perception regarding the product.  To get an idea about the types of outlets and their selling capacity of HP MILCY SUPER oil.

This research study provided a comprehensive overview of the Indian lubricants' industry. Towards development of a distinct Brand image. The major facts are that each company is coming up with new products and ideas in order to increase their market share.Its competitors Castrol. introduction of Market System and special locking devices to curb mal-practices are other steps that have been taken towards providing quality products. In 13 Apr.c.Diesel Hydro Treating (DHT) facilities. Automation for monitoring the Retail Outlet activities. these companies rely on somewhat different marketing strategies. would be critical for its future financial profile. HPCL has launched ‘Club HP’ which symbolizes customer and convenience to its customers when they drive in for their fuel needs in outlets. 22 .t. The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales. In this they are also thinking of ways in which to increase market share in the lubricant market. . due to its size. 2003 according to an article. and customer loyalty. Companies must be willing to accommodate their “target markets”. are trying to gain market share in the Lubricant market. Just how this is done in such a competitive market is the underlying issue. . BP. 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. IOCL. Study about market position is the key issue in this study. which was originally projected to cost Rs 120 billion and which. profits. The decision is also crucially linked to the Government of India’s (GoI) divestment of management control along with part of its stake in the company to strategic partner. Although the goal of these companies is exactly the same.Literature Review In 9 Feb 2006 a research paper published from the research and advisory firm. India Analysis . e.

This study has been carried out “STUDY OF MARKET PERCEPTION OF HPCL DIESEL ENGINE LUBRICANTS.Scheme of Dissertation:.Introduction gives a brief idea about beverage industry. Organization Profile:.- Introduction:. scope of study. objectives of study. 23 . Bibliography and Annexure:. Analysis and Interpretations: This part tells about data analysis. MARKETING COMMUNICATION OF HPCL DIESEL ENGINE LUBRICANT and literature review part. significance of study.This part comprises of industry profile and company profile. This part gives a brief idea about current trends in industry and company. The lay out of dissertation is as follows. sample size/design and method of data collection. 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. Research methodology: This part give an idea about research design.This part comprises of references taken for this study and questionnaire which was framed for this study.

Chapter-3  Research Methodology  Research Design  Sample Profile  Tools and Methods Data Collection  Data Processing and Analysis  Limitations 24 .

50 for retailers. Survey was undertaken to find out the information that was needed for the study. Research Design:The primary data was collected through the surveys.Data will be collected by retailer survey. 50 for customer. It basically aims at gathering data about how the HPCL Ltd is communicating their brand in the mind of retailers. 50 for garage mechanic.customers will be selected from different places of Secunderabad/Hyderabad.Sampling plan consists of: a) Sampling Unit: .Simple Random sampling procedure was followed.Research Methodology:This research involved a study. For the survey the personal interview retailers and mechanics and customers were targeted in various regions of Hyderabad/Secunderabad. d) Sample Size: Sample size of the project was 150. mechanic & customers. The research instruments used for collecting the primary data were the questionnaires prepared. c) Sampling Method: . which was descriptive as well as explorative in nature. garage mechanic. The retailers are directly contacted and interviewed at their retail counter. b) Sampling Procedure: . 25 . Sample Profile: .The retailer of lubricant shop.

2.Primary data collected by Surveys: Survey method of data collection is preferred which is very suitable to reach the researchers motto. 1. 2. books .t. It Biased opinion of retailers.secondary data was not available with retailers and garage mechanics . Secondary data collection:. The limitations of this survey were as follows.Tools and Methods Data Collection:There are mainly two types of data: 1.websites .so these are collected from company records. Research instrument:. Limited available time appox two month for IIP available for conducting the survey. But the survey does have some limitations. customers and mechanics.Secondary Data 1. Area of Survey: . I found some difficulty in getting full attention of customers. 3.c.The survey was conducted in different location of Hyderabad/Secunderabad city. Primary Data Collection: . LIMITATIONS OF THE SURVEY There was a sincere attempt to conduct the survey in the most efficient and scientific possible manner. 26 .Primary Data 2.Printed questionnaire had used as a research instrument to collect the required information from respondent. e.

Chapter-4 Data Analysis 27 .

Servo super having highest penetration in the market . Market penetration BP Mak 8% HP Milcy super 24% others 4% Castrol CRB Plus 36% Servo super 28% Castrol CRB Plus Servo super HP Milcy super BP Mak others In this researcher got that Castrol CRB Plus. Market Penetration of Lubricants in the market.Penetration of HP Milcy is slightly less than servo and better than other brand. 28 .1.

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.Servo (20%) 3.2. Highest selling product in retail shops percentage selling in retail shop servo super 20% castrol crb plus hp milcy super 14% hp milcy super castrol crb plus 66% servo super 1.Castrol crb (66%) 2. 29 .

Reason for being the highest selling product Reason for highest selling packeging 12% quality 20% availability 24% availability branding promotion quality packeging promotion 16% branding 28% 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. 30 .3.

31 .4. Perception of retailers regarding the price of HP MILCY SUPER percieved price by retailers low 30% high 4% high medium low medium 66% 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.

only 30% are not agree .mechanic and customer is affect sales.factors affect no 30% yes no yes 70% According to this 70% respondent respond that schemes given by company for retailers . Promotional schemes affect the sales on lubes? 5. 32 .5.

33 . quality complain yes 18% yes no no 82% Here Researcher found that 82% of Respondent are saying that there is not any quality complain in HPCL Products. Complain against quality of HP products.6.

Percentage of customer taking suggestions from mechanics about oils. 34 . percentage of customers taking suggestion 0-20% 4% 21-40% 8% 41-60% 16% 0-20% 21-40% 41-60% 61-80% more than 61-80% 20% more than 52% From the above data researcher can conclude that more than 52%customer are taking suggestion from mechanics.7.

8. Any other reason 8% customer demand 30% mechanic scheme 10% Longer drain period 52% 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. Reason behind brand recommended by mechanics. 35 .

NOTE: Here researcher found that Low ended customers like lorry. 2% 7. 14% 3. autoriksaw drivers those who are not careless are taking any suggestion. truck drivers.9. 0% Quality Performeance Brand Price mechanic recommendation 39. Reason for using any brand by customer? 1. 6% 0. 36 . 78% Here researcher found that most of them are using lubricant oil due to mechanic recommendation.

37 .kind of scheme expected by customer kind of scheme like by customer no idea 10% Discount cash coupon 38% Discount 52% 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.10.

Chapter-5 Findings Findings 38 .

free issue on pack coins and other gift items should given to mechanics and end consumers. Castrol and others are doing this activity. discount .  HPCL is not focus about in shop branding where as its strongest competitors IOCL .  Schemes for retailers garage mechanic and end consumer plays an important role for deciding sales so schemes like cash coupon . Market Position of HP milcy super is comparatively good with respect to its competitors in this segment.  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. Moosapet and Ameerpet is poor that’s why company is lacking in these areas and some other areas. IOCL and it is better in position than others.  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.  Mou or recommendation plays an important role to increase the market share like IOCL – maruti genuine oil elf recommended by Ashoak Leyland. 39 .  In this research researcher found that Distribution channel of HP lubricants in Koti . it is not much lower than its strongest competitor like Castrol.

40 . 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. Castrol visibility was seen maximum in market.  Packaging of HP in diesel engine segment is not good in comparison to its competitors.

Chapter-6     Conclusion and Suggestion Bibliography Annexure Questionnaire CONCLUSION 41 .

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. Researcher found out that there was scope for improvement. 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. which had been suggested by researcher and 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. It is imperative that HINDUSTAN PETROLEUM CORPORATION LTD. In this project researcher had been given the chance to implement the suggestions. 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. Recommendations and Suggestion:- 42 .Working on this project was an enriching experience for us. Though HPCL was the leading brand the distribution channel left a lot to be desired.

 In this research researcher found that there is 82% respondent are not having any quality complain against HP Milcy super in diesel engine segment.  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.  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. Volvo line).  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.  HP should give schemes for mechanics and end consumer. Shopkeepers and Mechanics.  HP should give focus on packaging on HP Milcy super because the packaging is not good in comparison of its competitors. Autoriksaw driver . This factor plays an important role in maintaining the mechanics and end consumer to opt for a particular brand. 43 . Exon Mobil. Lorry’s driver . reason is they are not much educated like:Truck drivers . For this purpose officers should keep in touch with them.  HP official try to take appropriate step to short out the problems of Dealers. 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 take some steps for in shop branding and out shop branding so that it can also compete with its competitors.

Major areas surveyed:• • • • • • • • • • • Medchal Bwonpally Moosapet Ameerpet Koti Santoshnagar Uppal Mahaboobganj Barkatpura Miyapur Chandannagar 44 .

N.com www. Kumar RESEARCH PAPER:News Paper & Magazine The Hindu and Business World The Financial express 45 . S.C.HPCL.com www. Ramaswamy & S.com Text Book:Business Statistics Marketing Management Marketing Management G.wikkipedia. Google.Bibliography:www. Beri Kotler and Keller V.

1 being the lowest and 5 being the highest) HP MILCY Quality Margin Availability Promotion Additional services 5) Rate the following companies according to your preferences: .Rate (1-5).Annexure:QUESTIONNAIRE (FOR RETAILERS) Name of Retailer Address of Shop Year of Establishment Castrol CRB PLUS BP MAK SERVO SUPER : : : _________ [ ] [ ] [ ] HP MILCY SUPER [ ] OTHERS [ ] 1) Which of the following company’s product do you stock in 20w-40? 2) Which is the highest selling product of the above? 3) Reasons for being the highest selling product? (Tick whichever applicable) Sl No A B C D E Attribute Availability Branding Promotion Quality Packaging Rank 3) Rate the following companies in terms of attributes given below :(On a scale of 5. Sl No Company Rank SERVO SUPER CASTROL CRB PLUS BP MAK OTHERS 46 .

A B C D E HPCL Indian Oil BP Castrol Others 6) How do you perceive the price of HP Milcy Super as compared to its competitors? a) High a) Yes [ ] Customers? ___________________________________________________ 8) Did the customer ever complain against quality of HP products? Yes [ ]No [ ] If Yes. 4. what kinds of schemes do you feel most appropriate for QUESTIONNAIRE(for Garage) Garage Name and Address : Year of Establishment : _________ 47 . 2. 3. b) Medium b) No [ ] c) Low 7) Do you feel that buying behavior of customers is affected by promotional schemes on Lubes If yes. Give the details about the complaints 1.

price d. Mechanic scheme b. 0 – 20% [ ] b. SERVO SUPER d. BP e. MILCY super 48 . More [ ] [ ] [ ] 6) Which of the following brands’ advertisements the mechanic has ever seen? a. 61-80% [ ] e. OTHERS 2) Why do you refer above brands :a. Any other reason [ ] [ ] [ ] [ ] [ ] [ ] [ ] 3) Which brands are the mechanics presently promoting? 5) Percentage of customer taking suggestions from mechanics about oils a. c. HP MILCY SUPER c. 41-60% [ ] d. Longer drain period c. 21-40% [ ] c.Mechanic Name : [ ] [ ] [ ] [ ] [ ] 1) Which of the following brand do you refer to customer in 20w 40 series a. b. Customer demand d. 4) Why do you promote that particular brand a. quality [ ] b. brand a. CASTROL CRB PLUS b. performance c. CRB PLUS b.

BP e.Rate (1-5) [ ] [ ] [ ] HP MILCY SUPER [ ] OTHERS [ ] 49 . Servo Super d.Rate (1-5) Sl No A B C D E Company HPCL Indian Oil BP Castrol Others Rank QUESTIONNAIRE (FOR CUSTOMERS) Name of customer Contact no : : ______________________________ Vehicle: _______________ Year :__________________ Model _________________ Engine (CC) _______________ Make: _________________ Horse Power: ______________ 1) Which of the following company’s product do you use in 20w-40? Castrol CRB PLUS BP MAK SERVO SUPER 2) why do you use above brand? a) quality a) High b) performance c) brand d) price e) mechanic recommendation b) Medium c) Low 3) How do you perceive the price of hp milcy super as compared to its competitors? 4) What kinds of schemes would you like? ________________________________________________________ 5) Rate the following companies according to your preferences: . OTHERS a) High ( ) [ ] [ ] [ ] b) Medium ( ) c) Low ( ) 7) How do you perceive the price of HP MILCY SUPER compared to its competitors? 8) Rate the following companies according to your preferences: .c.

Sl No A B C D E Company HPCL Indian Oil BP Castrol Others Rank 50 .

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