LUBOL: Established Market

Largest three wheeler market in the world 2nd largest two wheeler market in the world 7th largest passenger car market in Asia & 10th Largest in the world 4th largest tractor market in the world 5th largest commercial vehicle market in the world 5th largest bus & truck market in the world

Petroleum Lubricants: Established Market

LUBOL: Trends in Automobile Industry

Huge Demand for Vehicle Servicing, Repairs and Maintenance Non Vehicle Manufacturers are getting into Automotive Service Business Branded service networks being set up both by vehicle manufacturers and other players Fuel Stations adding to the Servicing & Aftermarket Network Expansion of Service Networks by Vehicle Manufacturer Increased Customer Awareness on Vehicle Maintenance. Emergence of One-stop-shop for vehicle owners to meet their needs like servicing, spares, accessories, insurance, warranty, etc, under one roof

LUBOL: Economics

Indian lubricant market is the sixth largest in the world. Volumes have been growing at 3-5% per year. Indian Economy is second fastest growing economy in the World. Infrastructure which is directly linked to the Automobile. Government is spending heavily in social schemes which is bound to increase the disposable income of the rural folks hence spending on automobile. Better lifestyle and increased aspiration of rural people will lead to growth in automobile industry.

Approach we adopted: SAPLAP

A mode of inquiry using situation-actorprocess (SAP)-learning-action-performance (LAP) (SAP-LAP) models of flexible systems management is used here.[Sushil,2000] We attempted to develop a SAP-LAP model of inquiry to gain deep insight to come up with effective action/recommendation. Of the three generic SAP-LAP models for inquiry we have adapted the general problem solving model for the case.

SAP LAP for case: Analysing SAP

Situation: Branding, rural penetration. Actors: LUBOL, Castrol, Servo, Mechanics, End-user, Rural business. Process: Actors Targeting, Branding,

Situation

SAP: LUBOL
Process

LUBOL: LAP

Learning: current situation, industry scenario, future possibilities. Actions: Recommended on seven different factors. LAP: Performance: Measurement of LUBOL performance of new methods and processes.
Learning Actions

Performance

SAP: Situation, Actor, Process

STP + SWOT analysis + Porters 5 Force + Difefrentiation SAP

Segmentation, Target, Positioning

Market Segment

Rural Rich Consumers

Rural consumers above Poverty Line

Rural consumers below poverty Line

LUBOL: SWOT Analysis

Price monopoly. Established need in the market. Reducing Google Traffic. Unhealthy Supply Chain

Untapped Market. Scope for multiple players Core segment competency. (Competitor's

Cash crunch. Increasing Rivals and competitors.

Porters five forces for Lubol:

Bargaining power of Buyers: Almost Nil. Bargaining Powe of Suppliers: Nil because of presence of multiple suppliers. Entry Barrier: high entry barriers has led to a low in the number of players operating the industry. Substitutes: Are non-existent or unidentified for the product. Though all the forces are of equal importance and seek attention, the Competition & Rivalry in the market is the force demanding immediate focus.

LUBOL: 4-Ps

PRODUCT Vaiety Quality Features Name Packaging Services Warranties

PRICE List Price Discounts Allowances Payment Period Credit Terms

PROMOTION Sales Promotion Advertising Sales force Public Relations Direct Marketing

PLACE Channel Coverage Location Inventory Transport

LAP: Learning, Actions, Performance

Differentiation + The rural perception + Flank Attack + Suggestion LAP

LAP Recommendations:
Customer Knowledge Availability Channel Collaboratio ns

Branding

LAP: Recommendati on

IT Solution Price Afforda bility

Differentiation

Flank Attack

Weak spots of enemies are identified. Geographic attack can be used. Rural specific approaches are adopted in design and promotion of products.

The rural perception:

Brand perception. Needs (Rural).

Detailed Solutions: PART ONE

(immediate)

Aggressive Marketing Through Mechanics- Particularly Road Side Mechanics. Through ITCs Choupal Saagar. Introducing new market offer. Incentivize truck driver Increasing reach of the product by hiring existing distributors and logistics companies. Appoint a Sanchalak, the prominent farmer, in every village to which the company should extend its services. The Sanchalak should run the LUBOL purchasing, information, and distribution business.

Detailed Solutions: PART TWO (Short

term)

Make it readily available. Inventory reduction. Tie up with unorganized sector. Use of Marketing Research firm. The name of product should be as such so that Rural people can associate it with themselves. Lubol should create a new celebrity instead of depending on actors or sportsperson as brand ambassadors Sponsor rural sports tournaments. Enroll garages across the country in the network of LUBOL Garages there by providing standardized service across the network.

Detailed Solutions: PART THREE

(long term)

Overall Cost Leadership with focus. Acquire strategically important company. Make LUBOL as a brand so that whenever people talk of lubricant LUBOL should be mentioned in their communication. Customer Knowledge( End customer +trade partner ) Long Term Outlook. Product Innovation. Quality Strategy. Brand Extension Strategy. Communication Pioneer: Deeper consumer connection.

Performance Measurements:

By Measuring increase in sales of LUBOL. By measuring Customer awareness about the brand. By measuring Customer Loyalty toward the Brand.
feedback

Sales Reports Market Research

References:

Sushil, (2000),"SAP-LAP models of inquiry", Management Decision, Vol. 38 Iss: 5 pp. 347 353

THANK YOU!!
Arun, Nilaya, Vaibhav