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A Project Report On

CHALLENGES OF LUBRICANT MARKETING AND STEPS NEEDED FOR INCREASING AUTOMOTIVE MARKET SHARE OF SERVO LUBRICANTS IN GUWAHATI.

AT INDIAN OIL CORPORATION LIMITED


(MARKETING DIVISION)

Under the Guidance of P.K. KAKOTI SISM(LUBES), NORTH EAST INTEGRATED STATE OFFICE
Indian Oil Corporation Ltd, Guwahati

Submitted By:
Aniket Kumar

Post Graduate Diploma In Management IBI, Greater NOIDA

A REPORT ON CHALLENGES OF LUBRICANT MARKETING AND STEPS NEEDED


FOR INCREASING AUTOMOTIVE MARKET SHARE OF SERVO LUBRICANTS IN GUWAHATI.

NAME: Aniket Kumar

Enroll Id: PGDM09008

Indian Oil Corporation Ltd.

A report Submitted in partial fulfillment of the requirement of PGDM program of


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IBI (Batch 2009-11)

DECLARATION

I hereby declare that the project report entitled has been prepared by me during the period from 3rd May 2010 to 31st May 2010 under the guidance of Mr. P.K. Kakoti, SISM (Lubes), North East Integrated State Office, Indian Oil Corporation Limited (Guwahati) as a part of the completion of PGDM programme in IBI, Greater Noida, Uttar Pradesh.

I also declare that the project has not been submitted nor shall it be submitted in future to any other University or Institution for the award of any other degree or diploma.

Dated
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Signature

Aniket Kumar

ACKNOWLEDGEMENT

The Project Title May, 2010 at

has been conducted by me during 3rd May, 2010 31st

Indian Oil Corporation Limited, Guwahati. I have completed

this project , based on the Primary research, under guidance of Prof. Kumar Rakesh. I express my sincere gratitude to my industry Guide Mr. P. K. Kakoti and Faculty Guide Prof. Kumar Rakesh for their able guidance, continuous support and cooperation throughout my project, without which the project work would not have been possible in the field of HR. I am obliged to Mr. Susibrat Sarma, Dy. Manager (Tech. Services) for cooperation during the Internship. My increased spectrum of knowledge in this field is the result of his constant supervision and direction that has helped me to absorb relevant and high information. I would like to thank all the respondents without whose corporation my project would not have been possible.
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Last but not the least, feel indebted to all those persons and organizations who/which have helped me directly or indirectly in successful completion of the project. I am also very grateful to our Dr. V.P. Singh (Secretary SRVP Trust) and Dr.Savita Mohan (Director IBI), who gave us an opportunity to our internship in corporate sector. Aniket Kumar PGDM

CERTIFICATE

This is to certify that Mr.Aniket Kumar Roll No. PGDM09008 of PGDM is a bonafide regular student of IBI, GREATER NOIDA, UTTAR PRADESH, for the session 2009-11. He has completed his Summer Training report entitled as a partial fulfillment for the award of PGDM degree . I find the research report is up to standard and original one.

PROF. KUMAR RAKESH

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EXECUTIVE SUMMARY

1. Title of the project : Challenges of Lubricant Marketing and Steps Needed for Increasing Automotive Market Share of Servo Lubricants in Guwahati. 2. Place of study: Indian Oil Corporation Limited, Guwahati 3. Duration of study: 30 days (From 3rd May, 2010 to 31st May, 2010) 4. Organizational guide: 5. Objective of the study: 6. Scope of the study: 7. Research Methodology: Type of research: Survey based Type of data used: Primary and Secondary data are used. Method of data collection:
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Data are collected by direct observation method by directly questioning the respondents with a well structured schedule.

Major findings: 31% of the respondent use SERVO LUBRICANTS 60% of the service stations use particular product for the purpose of customer demand, 22% of the respondent use particular lubricant because of quality perception,18% respondent use particular lubricant because of better association with the manufacturing of customer Co. The service station doesnt let their customer know about the availability of the other lubricant. 33% of the service stations deal in cash exchange,67% of them deal in credit exchange. 22% of other lubricant companies promote their product through free camp, whereas only 18% of the companies offer special scheme as a promotion strategy,11% of companies promote their product by giving gifts. Other lubricant companies do not provide better pricing than IOCL whereas other companies do have better network (62%) and availability (38%). Maximum customers are price sensitive and the percentage is 58%, some customers go for brand, due to lack of knowledge some of them ask advice regarding price and performance.

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TABLE OF CONTENTS:

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Sr. No.

Chapter Name
Introduction & History Marketing Research Research Design Limitations My Findings Suggestions Conclusion Bibliography

Page No.

1. 2. 3. 4. 5. 6. 7. 8.

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CHAPTER-I GENERAL OBSERVATION OF THE ORGANISATION

INTRODUCTION INDUSTRY PROFILE Oil and gas industry is the most important sector in any economy since it caters to a wide range of industries including petrochemicals, fertilizers, automobiles etc., Thanks to its importance and limited availability, it is one of the
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highly regulated sectors in India. This report gives a comprehensive picture of the oil and gas industry. Government policies in India have changed considerably in the post-liberalization era, with private and foreign players getting the nod to indulge in oil exploration and production through schemes like New Exploration and Licensing Policy (Nelp) I, II and III. Hence, there is a good scope for domestic private players and foreign players to enter this sector. As a background, the report provides a brief overview about the oil and gas industry, with focus on characteristics specific to the industry, segmentation, split up of private and public sector in the industry etc. The segmentation details (the basic grouping in the industry such as light, medium and heavy distillates) and the products covered under each segment have been suitably elaborated. The typical characteristics of the industry (like heavy government controls, import dependency on feedstock that result in burgeoning oil pool deficit) have been discussed. The report provides an overview on the global scenario covering aspects like reserves in crude and natural gas, production and the consumption of the same, contribution of Organization of Petroleum Exporting Countries (Opec), effect of UN sanctions particularly on Iraq (Iraq is the third largest player in West Asia) over capacity situation in Asian region etc.,The current scenario prevailing in the domestic industry has been comprehensively covered with specific emphasis on government regulations, demand supply aspects, pricing in the industry etc., On the demand-supply front, the report features extensive coverage on the extent of crude oil and natural gas reserves, production/consumption of crude oil and natural gas and crude refining capacity/ capacity utilization. The report also elaborates on the major projects that have been implemented recently and projects that are currently under implementation. Since the industry is highly regulated, the report discusses elaborately on crucial government policies. The price trends in crude oil and natural gas in global markets is covered

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separately in the report since more than two thirds of domestic requirements are met through imports.

COMPANY PROFILE

OVERVIEW
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OF INDIAN OIL CORPORATION LTD. Indian Oil Corporation Limited Indian Oil Corporation Ltd. (Indian Oil) was formed in 1964 through the merger of Indian Oil Company Ltd. (Estd. 1959) and Indian Refineries Ltd. (Estd. 1958). It is currently Indias largest company by sales with a turnover of Rs. 1,83,204 crore (US $ 41 billion) and profits of Rs. 4,915 crore (US $ 1.10 billion) for fiscal 2005. Indian Oil is also the highest ranked Indian company in the prestigious Fortune Global 500 listing, having moved up 17 places to the153rd position this year based on fiscal 2005 performance. It is also the 21st largest petroleum company in the world and the # 1 petroleum trading company among the National Oil Companies in the Asia-Pacific region. The Path of Growth 1958 Indian Refineries Ltd. was formed with Mr. Feroze Gandhi as Chairman. 1959 Indian Oil Company Ltd. was established on 30th June 1959 with Mr. S. Nijalingappa as the first Chairman. 1960 Agreement for supply of SKO and HSD was signed with the then USSR. M.V: "Uzhgorod" carrying the first parcel of 11,390 tonnes of HSD docked at Pir Pau Jetty in Mumbai on 17th August 1960. 1962 Guwahati Refinery was inaugurated by Pt. Jawaharlal Nehru. Construction of Barauni Refinery commenced.

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1963 Foundation was laid for Gujarat Refinery Indian Oil Blending Ltd. (a 50:50 Joint Venture between IndianOil and Mobil) was formed. 1964 Indian Oil Corporation Ltd. was born on 1st September, 1964 with the merger of Indian Refineries Ltd. with Indian Oil Company Ltd. Barauni Refinery was commissioned. The first petroleum product pipeline from Guwahati to Siliguri (GSPL) was commissioned. 1965 Gujarat Refinery was inaugurated by Dr. S.Radhakrishnan, the then President of India. Barauni-Kanpur Pipeline (BKPL) and Koyali- Ahmedabad product Pipeline (KAPL) commissioned. Indian Oil People maintained the vital supply of Petroleum products to Defence in 1965 War. 1966 The first long-term agreement was signed for harmonious employee relations. 1967 Haldia Baraurii Pipeline (HBPL) was commissioned. Bitumen and Marine Bunker business began. 1968 Techno-economic studies for Haldia-Calcutta, Bombay-Pune and BombayManmad Pipelines submitted to the Government. 1969 IndianOil undertook the marketing of Madras Refinery products. 1970 IndianOil acquired 60% majority shares of IBP. The same was offloaded in favour of the President of India under a Directive in 1972. 1971 Dealership/reservation was extended to war widows, disabled Defence personnel, Freedom Fighters, etc. after 1971 War.

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1972 R&D Centre was established at Faridabad. SERVO, the first indigenous lubricant was launched. 1973 Foundation-stone of Mathura Refinery was laid by Mrs. Indira Gandhi, the then Prime Minister of India. 1974 Indian Oil Blending Ltd. (IOBL) became the wholly owned subsidiary of IndianOil. Marketing Division attained a new watershed with a market participation of 64.2%. 1975 Haldia Refinery was commissioned. Multipurpose Distribution Centres were introduced at 132 Retail Outlets pioneering rural convenience 1976 Private petroleum companies nationalized. Burmah Shell became BPC. 1977 R&D Centre launched Nutan wick stove. 1978 Phase-wise commissioning of Salaya-Mathura Crude Oil Pipeline (SMPL) began. 1979 Barauni Refinery and Bongaigaon Refinery and Petrochemicals Ltd. (BRPL) affected by Assam agitation. 1980 The second Oil Shock was witnessed as a result of Iranian Revolution. Crude Oil price flared to a new high of $32 per barrel. 1981 Digboi Refinery and Assam Oil Company's (AOC) marketing operations were vested in IndianOil. It became Assam Oil Division (AOD) of IndianOil.

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1982 Mathura Refinery was commissioned. Mathura-Jalandhar Pipeline (MJPL) was commissioned. 1983 Massive augmentation of LPG storage and distribution facilities were undertaken. Proposal for the 6 MMTPA Refinery at Karnal was submitted at an estimated cost of Rs l, 181 Crore 1998 The Companys seventh refinery is commissioned at Panipath. 2002 The Indian petroleum industry is deregulated.

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COMPANY SPREAD:

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Guwahati Refinery (Assam) The Guwahati Refinery in North East India -- the first Public Sector refinery of the country -- was commissioned in 1962 with a capacity of 0.75 MMTPA which was subsequently increased to 1.0 MMTPA through debottlenecking projects. The refinery processes only indigenous crude oil from the Assam oil fields. With its main secondary unit, a coking unit, it produces middle distillates from heavy ends and supplies petroleum products to North-Eastern India, and surplus products onward to Siliguri in West Bengal in 2003. Hydrotreater Unit for improving the quality of diesel has been commissioned in 2002. In 2003, the refinery installed an Indmax Unit, a novel technology developed by Indian oil's R&D Centre for upgrading heavy ends into LPG, Motor Spirit and Diesel oil.

Vision A major diversified, transnational, integrated energy company, with national leadership and a strong environment conscience, playing a national role in oil security public distribution.

Mission To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services, and cost reduction. To maximize creation of wealth, value and satisfaction for the stakeholders. To attain leadership in developing, adopting and assimilating state-of- the-art technology for competitive advantage. To provide technology and services through sustained Research and Development. To foster a culture of participation and innovation for employee growth and contribution. To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.
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Values Indian Oil nurtures a set of core values which are-

Objectives:

To serve the national interests in oil and related sectors in accordance and consistent with Government policies. To ensure maintenance of continuous and smooth supplies of petroleum products by way of crude oil refining, transportation and marketing activities and to provide appropriate assistance to consumers to conserve and use petroleum products efficiently.

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To enhance the countrys self-sufficiency in oil refining and build expertise in laying of crude oil and petroleum product pipelines. To further enhance marketing infrastructure and reseller network for providing assured service to customers throughout the country. To create a strong research & development base in refinery processes, product formulations, pipeline transportation and alternative fuels with a view to minimizing/eliminating imports and to have next generation products.

To optimize utilization of refining capacity and maximize distillate yield and gross refining margin. To maximise utilization of the existing facilities for improving efficiency and increasing productivity. To minimize fuel consumption and hydrocarbon loss in refineries and stock loss in marketing operations to effect energy conservation. To earn a reasonable rate of return on investment. To avail of all viable opportunities, both national and global, arising out of the Government of Indias policy of liberalization and reforms. To achieve higher growth through mergers, acquisitions, integration and diversification by harnessing new business opportunities in oil exploration & production, petrochemicals, natural gas and downstream opportunities overseas.

To inculcate strong core values among the employees and continuously update skill sets for full exploitation of the new business opportunities. To develop operational synergies with subsidiaries and joint ventures and continuously engage across the hydrocarbon value chain for the benefit of society at large.

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Obligations: Towards customers and dealers: To provide prompt, courteous and efficient service and quality products at competitive prices.Towards suppliers to ensure prompt dealings with integrity,
impartiality and courtesy and help promote ancillary Industries. Towards employees: To develop their capabilities and facilitate their advancement through appropriate training and career planning. To have fair dealings with recognized representatives of employees in pursuance of healthy industrial relations practices and sound personnel policies.

Towards community: To develop techno-economically viable and environment-friendly products. To maintain the highest standards in respect of safety, environment protection and occupational health at all production units.

Towards Defence Services: To maintain adequate supplies to Defence and other para-military services during normal as well as emergency situations.

Financial Objectives:

To ensure adequate return on the capital employed and maintain a reasonable annual dividend on equity capital. To ensure maximum economy in expenditure. To manage and operate all facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment, without budgetary support.

To develop long-term corporate plans to provide for adequate growth of the Corporations business.

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To reduce the cost of production of petroleum products by means of systematic cost control measures and thereby sustain market leadership through cost competitiveness.

To complete all planned projects within the scheduled time and approved cost.

We firmly believe in the fundamental importance of transparency, teamwork and pride in what we do. Indian Oil People... Towards Excellence... IOCLs Major Units: REGISTERED OFFICE IndianOil Bhavan, G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai -400 051 CORPORATE OFFICE 3079/ 3, Sadiq Nagar, J B Tito Marg, New Delhi - 110 049

REFINERIES DIVISION MARKETING DIVISION

SCOPE Complex, Head Office Core-2 7, Institutional Area Lodhi Road New Delhi -110003 Head Office

IndianOil Bhavan, G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai -400 051

Barauni Refinery

P.O. Barauni Oil Refinery,

Northern Region

IndianOil Bhavan, 1, Aurobindo Marg

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Dist. Begusarai -861 114 (Bihar)

Yusuf Sarai New Delhi -110016

P.O. Jawahar Nagar, Gujarat Refinery Dist. Vadodara -391 320 (Gujarat) Eastern Region

IndianOil Bhavan, 2, Gariahat Road, South (Dh~akuria) Kolkata -700 068

P.O. Haldia Refinery Haldia Refinery Dist. Midnapur-721 606 (West Bengal) Western Region

254-C, Dr. Annie Besant Road, Prabhadevi Mumbai -400 025

P.O. Mathura Mathura Refinery Refinery, Mathura -281 005 (Uttar Pradesh) Southern Region

IndianOil Bhavan 139, Nungambakkam High Road Chennai -600 034

Sector 13 Faridabad -121 007 R&D CENTRE (Haryana) ASSAM OIL DIVISION

Digboi -768 171 (Assam)

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PIPELINES DIVISION

SUBSIDIARIES

A-1 Udyog Marg, Sector-1, NOIDA Head Office Chennai Petroleum Corporation Ltd.

536, Anna Salai, Teynampet, Chennai - 600 018

14, Lee Road Kolkata -700 020 Eastern Region Bongaigoan Refinery and Petrochenicals Ltd.

P.O. Dhaligaon, Dist. Chirang Assam - 783 385

P.O. Box 1007 Western Region Bedipara, Morvi Road, Gauridad Rajkot -360 003 IBP Co. Ltd.

IBP House, 34-A Nirmal Chandra Street Kolkata - 700 013

Northern Region

P.O. Panipat Refinery Panipat -132 140 (Haryana)

IndianOil (Mauritius) Ltd.

Mer Rouge Port Louis Maruritius

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139, Mahatma Gandhi Road

World Trade Centre Lanka IOC Pvt. Ltd. 20th Floor, West Tower Colombo, Sri Lanka

Southern Region

Chennai - 600034

SCOPE Complex, IndianOil Technologies Ltd. Core-2 7, Institutional Area, Lodhi Road, New Delhi-110003

Indian Oil Corporation Ltd. Office: LOB 14209, IOC Middle East FZE Jebel Ali Free Zone, P.O.Box: 261338, Dubai UAE

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PRODUCTS PROFILE
SERVO IndianOil's SERVO :IndianOil's Global Brand. SERVO is India's largest selling lubricant brand. SERVO ranges of lubricants enjoy approvals from major Original Equipment Manufacturers (OEMs) including new generation cars. 9,000 Retail Outlets and a countrywide network of SERVO SSls and SSAs Bazaar traders offer SERVO range of lubricants to customers. Indane LPGas IndianOil Indane LPGas is used in 40 Million homes as cooking fuel and commands over 48% market share in India. Indane LPGas is marketed through a network of 4350 Indane distributors. Widely used in commercial sectors like industries, hotels & restaurants, medical labs, etc. 87 Indane Bottling Plants are spread across the country with a combined bottling capacity of 3.77 MMTPA. New and convenient 5 kg Indane LPGas cylinders introduced in rural and hilly regions for wider use by economically weaker sections. IndianOil's auto LPG brand AutoGas is the leader in the segment. Marketed through a network 48 stations out of an industry total of 103 Auto LPG Dispensing Stations. IndianOil Aviation Service Meets complete Aviation Fuel requirements of the Defence Services and for over 75 Domestic and International airlines besides private aircraft operators.

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IndianOil Aviation Services is ISO 9002 certified and entrusted with WIP refueling for national and overseas dignitaries. IndianOil's prompt, courteous and 'No-Delay' Aviation Fuel Service has received accolades from major customers. Always on call for providing services in exigencies of war and peace. AutoGas AutoGas (LPG) has been introduced in Hyderabad, Bangalore and Mumbai markets. This alternative fuel is a good business proposition in the long term, and IndianOil intends to further expand its marketing in a big way. Auto LPG Dispensing Stations (ALDS) Premium Fuels IndianOil offers XtraPremium Petrol and XtraMile Diesel, which are the best your vehicle can get. India's first 91 Octane petrol, XtraPremium is reinforced with multifunctional additives including 'Friction Buster'. Available at nearly 2000 Retail Outlets nationwide, XtraPremium offers: . Super Mileage and Super Pick-up Enhances cleaning of engines Minimizes exhaust emissions Restores peak engine power and acceleration Reduces maintenance cost XtraMile, IndianOil's new generation High Speed Diesel with world-class additives has taken a leadership position in the market. Available at nearly 4400 Retail Outlets nationwide, XtraMile offers: Extra mileage -Greater Acceleration Faster pick-up -Lower maintenance Costs
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Longer engine life -Enhanced overall performance Eliminates engine knockings Launched on Sept. 24, 2002, the premium auto fuels - XtraPremium and XtraMile (originally IOC Premium and Diesel Super respectively), mark a new beginning for IndianOil and offer a new genre of convenience and enhanced comfort for our customers.

XtraPower IndianOil's XtraPower Fleet Card Program is a complete fleet management solution for Fleet Owners / Operators and Corporates. XtraPower is a Smart Card based Fleet Card Program, which facilitates cashless purchase of fuel & lubes from designated retail outlets of IndianOil through flexible prepaid and credit facilities. The fleet card program also offers an exciting Rewards Program and unique benefits like personal accident insurance cover and vehicle tracking facilities. In just under two years of its launch, IndianOils XtraPower Fleet Card has recently emerged as the largest fleet card in the country, having crossed the one million mark. Swagat Highway Flagship Retail Outlets To cater the high growth areas of National Highways forming a part of Golden Quadrilateral and N-S, E-W corridors, IndianOil has launched Flagship Outlets, which have been branded as Swagat Retail Outlets. XtraCare The launch of XtraCare was the culmination of a series of plans in retail design, product and service upgradation, capability training, automation, loyalty programme, retail site management techniques all benchmarked to global standards. While the industry standard is to
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take samples on a quarterly basis, IndianOil has moved several steps ahead by introducing fortnightly random sampling with specific importance given to RON (Research Octane Number) sampling which is truly the definitive test for quality and quantity. The surveillance audits by BV are being done on a more comprehensive basis. In another pioneering move, the third party certification, by BV, is also being done, for the first time, on a range of parameters that include hygiene, service, efficiency of fore court, allied services and customer satisfaction. IndianOil's Latest Rankings: 'BS 1000' List of India's Corporate Giants -- January 1, 2007

IndianOil has been ranked as India's No 1 Company by Business Standard 1000 listing of country's leading industrial companies. With this ranking, it is slotted as Indias biggest company with consolidated net sales of Rs. 162,418 crore. Business India's Super 100 Ranking -- December 1, 2006

In this year's study of Business India's Super 100 (sales in excess of Rs 500 crore), IndianOil has been ranked 4th in Top 10 Performers of 2006.

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'Fortune 'Global 500' List-- July 13, 2006

In a befitting acknowledgement of its ever-improving performance, IndianOil moved up 17 places (current ranking 153rd) in the just-released Fortune 'Global 500' list of world's largest companies for the year 2006. AWARDS & ACCREDITATIONS: IndianOil (Mauritius) Ltd. Wins 'Century International Quality Era Award' New Delhi, March 26, 2007 IndianOil Bags Top Honours For Women Development, New Delhi, March 13, 2007 IndianOil gets a top slot in ET500 listing, New Delhi, March 22, 2007 IndianOil Bags Top Honours For Women Development, New Delhi, March 13, 2007 WIPS Best Enterprise Award for IndianOil AOD Bottling Plant bags Best Quality Management Award Mathura-Jalandhar Pipeline receives Rajiv Gandhi National Quality Award, February 16, 2007 IndianOil wins SCOPE Award for Excellence in Public sector Management, March 8, 2007 Western Region bags Golden Peacock National Training Award, Kolkata, January 16, 2007 IndianOil bags nine ABCI Awards, Mumbai, January 15, 2007 Mathura Refinery Bags National Energy Conservation Award, December 15, 2006

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The Highest Award Tally For IndianOil At 28th PRSI Conference, December 11, 2006 IndianOil becomes Indian Express Uptime Champion, December 7, 2006 Haldia Refinery pavilion wins first prize at SISIs Vendors Meet-cumExhibition, November 14, 2006 Guwahati Refinery, IBP, bag OISD Awards, Mumbai, November 10, 2006 IndianOil bags the SCOPE Meritorious Award for R&D and Innovation, New Delhi, November 8, 2006 IndianOil bags 'Fastest Time to Implement / Deploy' SAP Award, October 18, 2006 IndianOil wins Safety Innovation Award 2006, September 14, 2006 Four IndianOil Officers in the Arjuna Awards List, Mumbai, August 24, 2006 Guwahati Refinery wins A .V. Ogale Running Shield for 2005-06, July 19, 2006 Golden Peacock Eco-Innovation Award for IndianOils R&D Centre, June, 2006 IndianOil bags Reader's Digest 'Trusted Brand' Gold Award, May 24, 2006 Haldia Barauni Crude Oil Pipeline receives Pransa Patra, April 14, 2006 Pransa Patra for Ahmedabad LPG Bottling Plant, April 14, 2006 Indane bottling plant bags Safety Award, February 27, 2006 Rajiv Gandhi National Quality Award for Panipat Refinery, February 23, 2006 Haldia Refinery Environment Excellence award, January 3, 2006 IndianOil Chairman conferred with 'Udyog Ratna award, January 3, 2005 Mathura, Haldia Refineries bag National ENCON awards, December 12, 2005 Oil Industry Safety Awards to IndianOil, November 26, 2005 ISO 9001:2000 certification to Sewree Terminal, November 23, 2005

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IndianOil earns Excellent rating in MoU with the Govt. of India, November 14, 2005 IIPM conferred with Golden Peacock National Training Award 2005, November 7, 2005 Guwahati refinery wins British safety council award, April 20, 2005

MARKETING:
Indian oil touches every customer heart by keeping the vital oil supply line operating relentlessly in every nook and corner of India. Indians vast distribution network of over 22,000 sales points and ensures that essential petroleum products reach the customer at the right place and right time. IOCL marketing share is 53.2% among oil public sector undertaking India. Indian oil serve a millions of customer every day big or small with a equal zeal and care, with focus on upgrading petrol and diesel stations to international standards by providing additional facilities and value added service. The countrys leading SERVO brand lubricant from Indian Oil with over 42% market share and 450 grades, are sold through 7870 retail outlets, over 1300 servo shop and country wide network of bazaar traders. LUBRICANT PRODUCT FROM IOCL- SERVO: In the Indian lubricant market, SERVO continues as the undisputed market leader. Indian Oils Servo lubricant has for over a decade now been the dominant player in Indias lubricant market. SERVO owes its fundamental strength to its R&D, high quality, extensive blending and distribution network, sustained brand enhancement and new generation packaging. The SERVO range is perceived by customers as a one-stop shop for providing complete lubrication solution in the automotive, industrial and marine segment. In retailing segment, besides Indian oil petrol stations, servo lubricant are made available through a network of stockists backed bazaar shops and 1000 of auto spare parts of across the country. SERVO range has over 500 lubricants and over 1200 formulation for literally every activity or lubricant need in the industry. A new concept called SERVOXpress, a one stop shop for quick easy and convenient
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auto care has been introduced to provide customer with a refreshing experience in different aspect of auto care like engine oil change, and maintenance check ups for both four and two wheelers.
PRODUCTS:

Indian Oil produces variety of lubricants which includes Automotive, Industrial and many other Speciality products. Here, we shall concentrate on Automotive Lubricating Oils. A list of such automotive grades of Servo Lubricants is given below: Diesel Engine oil: SERVO PRIDE TC 15W-40 SERVO PRIDE XL 15W-40 SERVO PRIDE SERIES SERVO SUPER PLUS 20W-40 SERVO PRIDE ALT 15W-40 SERVO CKD SKODA GENUINE DG SET OIL SERVO SKODA GENUINE OIL HD SERVO SKODA GENUINE OIL XHD SERVO ULTRA 40RR SERVO ULTRA 10W SERVO ULTRA KB 10 HYUNDAI SERVO CRDi ENGINE OIL SERVO PREMIUM 20W-40 SERVO PREMIUM CF-4 15W-40 SERVO PREMIUM XHP 15W-40 SERVO PREMMIUM (N) 15W-40 SERVO PRIDE XL 15W-40 SERVO PRIDE SUPREME 15W-40 SERVO PRIDE SUPREME PLUS SERVO PRIDE MAX

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SERVO FUTURA D Passenger Car Motor Oil: SERVO SUPER MG 5W-30 SERVO SUPER MG 10W-30 SERVO SUPER MG 10W-40 SERVO SUPER MG 20W-40 SERVO SUPER MG 20W-50 SERVO SUPERIOR 10W-30 SERVO SUPERIOR 10W-40 SERVO SUPERIOR 20W-40 SERVO SUPERIOR 20W-50 MARUTI GENUINE OIL SERVO SUPERIOR XEE 10W-30 SERVO SUPERIOR XEE 10W-40 SERVO SUPERIOR XEE 15W-40 SERVO SUPERIOR XEE 20W-40 SERVO SUPERIOR XEE 20W-50 HYUNDAI SERVO ENGINE OIL SERVO XEE SJ 10W-30 SERVO XEE SJ 10W-40 SERVO XEE SJ 15W-40 SERVO XEE SJ 20W-50 SERVO SYNTH SJ 5W-40 LANCER ENGINE OIL SERVO FUTURA P 10W-30 Universal Tractor Oil SERVO TRACTOR OIL 20W-40 Super Tractor Oil Universal (STOU) SERVO UNITRAC 30 SERVO UNITRAC 15W-30
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Universal Tractor Transmission Oil (UTTO) SERVO TRANSTRAC 30 Agriculture Pump Set Oil SERVO PUMP SET OIL 40 Boat Engine Oil SERVO BOAT ENGINE OIL 20W-40

Four Stroke 2/3 Wheeler Oils SERVO 4T 20W-40 SERVO 4T 20W-50 SERVO 4T ZOOM Two Stroke 2/3 Wheeler Oils SERVO 2T SUPREME KINETIC ULTRA 2T OIL SERVO LML 2T OIL SERVO 2W GEAR OIL Gas Engine Oil SERVO SPECIAL NG 40 SERVO NG 40 SERVO NG 15W-40 SEERVO GAS ENGINE OIL SERVO PRIDE GEO 15W-40 SERVO PRIDE GEO 20W-50 Preservative-cum-Running-in Oils SERVO REO 30 SERVO REO 40 SERVO PRESERVE 30 SERVO PRESERVE 40 SERVO PRESERVE 50 SERVO GUARD 30
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SERVO GUARD 50 Gear Oil: SERVO GEAR HP 80W SERVO GEAR HP 80W-90 SERVO GEAR HP 85W-140 SERVO GEAR HP 90 SERVO GEAR HP 140 SERVO GEAR HP 75W-90 SERVO GEAR HP 80W (T) SERVO GEAR HP 90 (T) SERVO GEAR HP 140(T) SERVO GEAR HP ALFA 80W-90 HYUNDAI SERVO GEAR OIL SERVO TRANSUNO 80W-90 SERVO GEAR SUPER 80W SERVO GEAR SUPER 80W-90 SERVO GEAR SUPER 85W-140 SERVO GEAR SUPER 90 SERVO GEAR SUPER 140 SERVO GEAR SUPER 90(T) SERVO GEAR SUPER 140(T) SERVO GEAR SUPER LS 90 SERVO GEAR SUPER 85W-140 SERVO GEAR SUPER 80W-90(T) SERVO GEAR SUPER 85W-140(T) SERVO GEAR AXLE 85W-140 SERVO SYNCHRO 80W-90 Automatic Transmission Fluids SERVO TRANSFLUID A SERVO TRANSMISSION FLUID 10
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SERVO TRANSDEX ll SERVO TRANSDEX lll HYUNDAI SERVO STEERING OIL SERVO TRANSMISSION C4 SAE 10W SERVO TRANSMISSION C4 SAE 30 SERVO TRANSCLEAN C4 SAE 30 SERVO TRANSMISSION C4-TO 4 SERVO TRANSMISSION T 20 SERVO TRANSMISSION T 30 SERVO TORQUE 10 Brake Fluid SERVO BRAKE FLUID SUPER HD SERVO BREAK FLUID DOT 3 PLUS SERVO BREAK FLUID DOT 4 PLUS HYUNDAI SERVO BRAKE OIL LANCER BRAKE OIL Radiator Coolant SERVOKOOL PLUS SERVOKOOL BLUE HYUNDAI SERVO COOLANT LANCER COOLANT SERVOKOOL ST SERVO KOOL READY Shock Absorber Oil SERVO SHOCSTAL SERVO SHOCARM SERVO SHOCAB SERVO SHOCAB LIGHT SERVO TELESHOCAB SERVO SHOCAB ES
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SERVO SHOCAB KB SERVO SHOCSHOWA F SERVO SHOCSHOWA R Calibration Fluid SERVO CALIB 2 SERVO CALIB 5 Rail Road Oil SERVO RR 407 SERVO RR 408 SERVO RR 606 MG SERVO RR 501 MG SERVO RR 520 MG Rail Flange Lubricant SERVO FLANGE 250 SERVO GREASE C SERVO GREASE WB SERVO GREASE MP SERVO GREASE MP3 SERVO GREASE MOLEX SERVO CVJ SERVO GEM RR 3 SERVO GREASE RR 1 SERVO RR 3M SERVOPLEX TM 3 SERVOPLEX 3M
SERVOGREASE GRAPHITED 4080

ETC.

Market leader in Lube Marketing in India


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Indian Lube Market

Market Size 1.2 MMTPA

Indian Oil 0.476 MMTA

Market Share of 40% in India

LUBE MARKETING STRENGTH SUPPLY CHAIN CONFIGURATION

Blending Plant (10)

Institutional Consumer CIP CFA (23) SS Auto (210) Retailers Retail Outlets OE Ser. Stns Bazaar shops Automotive Retail Consumer

Plant
SCFP (12)

Plant

Plant
SS Industrial (73)

Plant
Plant
Industrial Retail Consumer

Biggest Matrix of Customer Spread in this country


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Defence Railways STUs Fertilizers Power Plants Collieries Steel Plants Cement Engineering Tyre Automobiles

Very Strong Base in Institutional Marketing

Strong OEM tie ups base TATA Motors Ashok Leyland Force Motors MAN Force Trucks Mahindra & Mahindra Eicher Motors Maruti Suzuki Hyundai HM Lancer Bajaj Auto TAFE Punjab Tractors M&M ELGI L&T CASE Timken Tata Bearings Endurance Systems / Gabriel

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CHAPTER-II

RESEARCH DESIGN

RESEARCH DESIGN

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1. RESEARCH PROBLEM
Increase the awareness level of SERVO. Seek the general perception of direct and indirect consumer towards SERVO. To find the performance of SERVO vis--vis other Brands. To know the consumer psyche and their behaviour towards SERVO.

2. RESEARCH OBJECTIVES & RELATED SUB OBJECTIVES


To know the relationship of sales with the advertisement. To know awareness of people towards SERVO. To know in which segment SERVO lubricants are mostly like/preferred. To know which advertisement/branding tool is mostly preferred by people. To know the preference of SERVO with comparison to other competitive brands. To know the factors which affects consumers buying behaviour to purchase SERVO lubricants.

3. Information requirement
First, I had to know about all the competitors present in the lubricant segment (Reputed and well established brands as well as Local brands). Before going for the survey I had to know the comparative packs and prices of all the competitors existing in the market. Since lubricant is a product that is used by the person having vehicle or machinery or factory setup hence I had to trace the market and segment it, which mainly deals with people of various segment. As lubricant is different product, the main information needed is the various types of lubricants available in the market, their performance and various other facts.

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As Servo lubricants advertisements are mainly done through hoardings but on television the advertisement is being telecasted timely and on the proper time or not. It is also very necessary to know, what are different types of schemes being given by other companies?

4. CHOICE OF RESEARCH DESIGN ALTERNATIVES & CHOICE

Despite the difficulty of establishing an entirely satisfactory classification system, it is helpful to classify marketing research on the basis of the fundamental objectives of the research. Consideration of the different types, their applicability, their strengths, and their weakness will help the student to select the type best suited to a specific problem. The two general types of research are: EXPLORATORY RESEARCH Exploratory research seeks to discover new relationship, emphasis on discovery of ideas.Marketing researches devote a significant portion of their work on exploratory studies when very little is known about the problem being examined. CONCLUSIVE RESEARCH

Conclusive studies attempts to determine the frequency with which something occurs or the relationship between two phenomenons. Usually conclusive studies assume certain under underlying characteristics of the market or have some precise statement of research questions/hypothesis. 5. RESEARCH INSTRUMENT USED - DETAILS & WHY?

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If one wants to know what type of dentifrice people use, what they think of, television commercials, or why they buy particular brands of cars, the natural procedure is to ask them. Thus, the questionnaire method has come to be the more widely used of the two data collection method. Many consumers are now familiar with the telephone caller who greets them with We are making a survey, and then proceeds to ask a series of questions. Some interviews are conducted in person, others by telephone, and others by mail. Each of these has its special advantages and disadvantages and limitations. The questionnaire method in general, however, has a number of pervasive advantages and disadvantages. Discussion of particular variations will be more meaningful if these characteristics of the general methods are brought out first. A questionnaire consists of list of questions to be asked from the respondents and the space provided to record the answer / responses. Questionnaire can be used for the personal interviews, focus groups, mails and telephonic interviews. The choice among these alternatives is largely determined by the type of information to be obtained and by the type of respondents from whom it is to be obtained. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to question, written or oral. Questionnaire in the project consists of: Multiple choice questions Dicthomus

MULTIPLE CHOICE QUESTIONS: Questions of this type offer the respondents an alternative to choose the right answer among others. It is faster, time saving and less biased. It also simplifies the tabulating process.

OPEN END QUESTIONS:


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In this type respondents are free to answer in their own words and express the ideas they think are relevant, such questions are good as first questions or opening questions. They introduce the subject and obtain general reaction. DICTHOMUS:

These are the questions which are Boolean in nature. These answers are straightforward and respondents have to answer them in a straight way. That means the answer can only be either Yes or No.

6. SAMPLING TECHNIQUE USED & SAMPLE SIZE - WHY?

Sample design is a definite plan of obtaining some items from the whole population. The sample design used in this project is two state sampling i.e. Cluster and convenience. In the probability sampling methods, each items in the sample is chosen one at a time from a complete list of universe elements. In marketing research practice, it will sometimes be more expedient to select clusters or groups of universe elements, rather than to choose sample items individually. Sampling methods in which universe elements are chosen in groups ---- rather than individually -- are called cluster-sampling methods. They are widely used in the sampling of human populations. When no complete universe listing exists, a type of sampling is called area sampling may be the only practically feasible form of probability sampling.

NONDISGUISED, STRUCTURED TECHNIQUES The non structured techniques for attitude measurement are primarily of value in exploratory studies, where the researcher is looking for the salient attributes of given products and the important factors surrounding purchase decisions as seen by the consumer. Structured techniques can provide a more objective
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measurement system, one which is more comparable to a scale or a yardstick. The term scaling has been applied to the efforts to measure attitudes objectively, and a number of useful scales have been developed.

SAMPLING METHODS

Sample design is a definite plan of obtaining some items from the whole population. The sample design used in this project is two state sampling i.e. cluster sampling and convenience sampling. The whole city was divided into some geographical areas and I have chosen (AT road,Adabari,Paltan Bazzar,RGB road, Fancy Bazzar,Ulubari,GS road,ABC,Sixth Mile,lokhara,NH-37)The total sample size was 65(45+20).

CLUSTER SAMPLING

Here the whole area is divided into some geographical area and a definite number of consumers were to be surveyed.

CONVINIENCE SAMPLING

This type of sampling is chosen purely on the basis of convenience and according to convenience. I visited maximum area within guwahati.

SAMPLING-1

1. Sampling Technique: Non probability sampling (A non probability sampling technique is that in which each element in the population does not have an equal chance of getting selected)

2. Sample Unit: People who buy lubricant oil available in retail outlets.
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3. Sample size 4. Method 5. Data analysis method 6. Area of survey 7. Timing of survey

: 20 respondents : Direct interview through questionnaire. : Graphical method. :Guwahati City. : 10.00 am to 12.30 pm and 3.00 pm to 6.30 pm

SAMPLING-2

1. Sampling Technique: Non probability sampling (A non probability sampling technique is that in which each element in the population does not have an equal chance of getting selected 2. Sample Unit: Bazaar traders, flit operators, workshops 3. Sample size 4. Method 5. Data analysis method 6. Area of survey 7. Timing of survey : 45 respondents : Direct interview through questionnaire. : Graphical method. :Guwahati City. : 10.00 am to 12.30 pm and 3.00 pm to 6.30 pm

FIELD WORK- METHOD USED FOR DATA COLLECTION

Questionnaire was prepared keeping the objective of research in mind. Questions were asked to respondents as regards to there willingness to purchase SERVO. With the help of questionnaires conducted direct interviews, in order to get accurate information. In order to get correct information I had to approach consumers ranging from 15 yrs to 65 yrs.

I visited as many respondents as I can and asked them their real likings about any lubricants and also got an idea, How a lubricants should be?

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It is really a Herculean task to understand Consumer Behaviour, as the definition suggest, Consumer behaviour is a physical activity as well as decision process individual engaged in when evaluating, acquiring, using and disposing goods and services.

In order to collect accurate information I visited to (AT Road), each and every question was filled personally by the respondents and checked properly.

People were not willing to answer, when they were contacted between 10.00 pm to 3.00 pm, pick time of business but this problem was not with the end users as they are free on holidays or during the time when they are in workshops.

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CHAPTER-III CONCEPTUAL FRAMEWORK OF THE STUDY

MARKETING RESEARCH
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Marketing research plays an important role in the process of marketing. Starting with market component of the total marketing talks. It helps the firm to acquire a better understanding of the consumers, the competition and the marketing environment. DEFINITION Marketing research is a systematic gathering, recording and analysis marketing problem to facilitate decision making. Coundiff & Still.

Marketing research is a systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services. Phillip Kotler.

MAIN STEPS INVOLVED IN MARKETING RESEARCH Defining the Marketing Problem to be tackled and identifying the market research problem involved in the task. (1) (2) (3) (4) (5) (6) (7) (8) Define the problem and its objectives. Identify the problem. Determine the information needed. Determine the sources of information. Decide research methods. Tabulate, Analyze and interpret the data. Prepare research report. Follow-up the study.

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(1)

Define the problem and its objectives :- This includes an effective job in planning and designing a research project that will provide the needed information. It also includes the establishment of a general framework of major marketing elements such as the industry elements, competitive elements, marketing elements and company elements.

(2)

Identify the problem :- Identifying the problem involves getting acquainted with the company, its business, its products and market environment, advertising by means of library consultation and extensive interviewing of companys officials.

(3)

Determining the specific Information needed :- In general the producer, the manufacturer, the wholesaler and the retailer try to find out four things namely :(1) (2) (3) (4) What to sell When to sell Where to sell How to sell

(4) Determine the sources of information :(a) Primary Data :- Primary datas are those which are gathered specially for the project at hand, directly e.g. through questionnaires & interviews. Primary data sources include company salesman, middleman, consumers, buyers, trade associations executives & other businessman & even competitors. (b) Secondary Data :- These are generally published sources, which have been collected originally for some other purpose. Source are internal company records, government publication, reports & publication, reports & journals, trade, professional and business associations publications & reports.

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(4)

Decide Research methods for collecting data :- If it is found that the secondary data cannot be of much use, collection of primary data become necessary. Three widely used methods of gathering primary data are A) Survey B) Observation C) Experimentation A) Survey Method :- In this method, information gathered directly from individual respondents, either through personal interviews or through mail questionnaires or telephone interviews. B) Observation Method :- The research data are gathered through observing and recording their actions in a marketing situation. This technique is highly accurate. It is rather an expensive technique. C) Experimental Method :- This method involves carrying out a small scale trial solution to a problem, while at the same time, attempting to control all factors relevant to the problem. The main assumption here is that the test conditions are essentially the same as those that will be encountered later when conclusions derived from the experiment are applied to a broader marketing area. D) The Panel Research :- In this technique the same group of respondents is contacted for more then one occasion; and the information obtained to find out if there has been any in their taste demand or they want any special quality, color, size, packing in the product. a) Preparation of questionnaire b) Presetting of questionnaire c) Planning of the sample (5) Tabulate, Analysis and Interpret the Data :-

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The report must give/contain the following information:a) The title of research b) The name of the organization for which it has been conducted c) The objectives of research d) The methodology used e) Organization and the planning of the report f) A table of contents along with charts and diagrams used in the reports g) The main report containing the findings h) Conclusion arrived at end recommendations suggested i) Appendices (containing questionnaire / forms used sample design, instructions.) (6) Follow-up the study :- The researchers, in the last stage, should follow up this study to find if his recommendation are being implemented and if not, why

The Marketing Research Process


Step 1: Define the problem and the Research Objectives Step 2: Develop the Research Plan (a) Data Sources (b) Research Approaches i. ii. iii. iv. v. Observational Research Focus Group Research Survey Research Behavioral Data Experimental Research

(c) Research Instruments i.


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Questionnaires

ii.

Qualitative Measures a. Shadowing b. Behavior mapping c. Consumer journey d. Camera journals e. Extreme user interviews f. Storytelling g. Unfocused groups

iii.

Mechanical devices

(d) Sampling plan i. ii. iii. Sampling unit: who is to be surveyed? Sample size: How many people should be surveyed? Sampling procedure: How should the respondents be chosen?

(e) Contact methods i. ii. iii. iv. Mail Questionnaire Telephone Interview Personal Interview Online Interview

Step 3: Collect the information Step 4: Analyze the information Step 5: Present the Finding Step 6: Make the Decision Measuring marketing Productivity Measuring Metrics Measuring Marketing Plan Performance Sales Analysis

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Market Share Analysis Marketing Expenses-to-Sales Analysis Financial Analysis Profitability Analysis Marketing-Profitability Analysis 1. Step: Identifying Functional Expenses 2. Step: Assigning Functional Expenses to Marketing Entities 3. Preparing a Profit-and-loss Statement for each marketing entity Determining corrective action Direct versus full costing 1. Direct costs 2. Traceable common costs 3. Nontraceable common costs Marketing-Mix Modeling Forecasting and Demand Measurement The measures of market demand A Vocabulary for demand measurement Market Demand Market forecast Market Potential Company demand Company Sales Forecast Company sales potential Estimating Current Demand Total Market potential Area market potential

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Market-Buildup method Multiple-factor index method Industry sales and market shares Estimating future demand Survey of buyers intentions Composite of sales force opinions Expert Opinion Past-sales analysis Market-test method

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CHAPTER-IV
FINDING AND ANALYSIS OF THE STUDY

Data analysis and Interpretations:

Analysis is made on the basis of data gathered through questionnaires from 15 respondents during the study.

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Here an attempt is made to organize and summarizes data in order to increase results, usefulness in such a manner that enable the researcher to relate critical points according to the objective of the study.

1. BRAND OF LUBRICANTS USED IN VEHICLES

Sales
others 24% servo 31%

castrol 45%

Types of lubricant SERVO CASTROL OTHERS TOTAL

Among 45 respondents 14 20 11 15

Percentage 34% 45% 22% 100%

* Observation:

From the above table it is revealed that: 31% of the respondent use SERVO LUBRICANTS 45% of the respondents use CASTROL LUBRICANTS

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24% of the respondents use OTHER LUBRICANTS (TOTAL, SHELL, ELF etc)

2. TOTAL SALE OF LUBRICANTS IN DIFFERENT SHOPS AND

WORKSHOPS
1% 0% servo shell castrol idemitsu valvoline pennzoil

Sales
reliance petronas

0% elf total veedol gulf savsol Bosch Delvae

1% 0% 0% 0% 0% 0% 19% 0% 1% 34%

44%

Manufacture

Avg. consumption per month{litres} 70000 90000 200 2000 300 200

Percentage

SERVO CASTROL PENNZOIL Petrones SHELL Helix ultra IDEMITSU

33.64% 43.25% 0.10% 0.96% 0.14% 0.10%

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Gulf Veedol Valvoline Savsol Relistar DELVAE ELF Bosch TOTAL

2500 400 500 400 600 500 40000 500 208100

1.20% 0.19% 0.24% 0.19% 0.29% 0.24% 19.22% 0.24% 100%

Market share of servo is approx 33.64%. Castrol on 1st position with 43.25% of market share.

3.

USE OF PARTICULAR LUBRICANTS

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Sales
Customer demand Quality perception 0% 18% Better association

22%

60%

Use or particular lubricant Customer demand Quality perception Better association with the manufacturing company Total

Among 45 respondents

Percentage

27 10 8

60% 22% 18%

45

100%

* Observation:

From the above table it is revealed that: 60% of the service stations use particular product for the purpose of customer demand. 22% of the respondent use particular lubricant because of quality perception. 18% respondent use particular lubricant because of better association with the manufacturing of customer Co.

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4.

WHETHER CUSTOMER KNOW ABOUT THE AVAILABILITY OF OTHER LUBRICANT AT WORKSHOP:

Sales

yes no

Response Yes No No answer Total

Among 7 respondents 0 7 0 7

Percentage 0% 100% 0% 100%

* Observation From the above table it is revealed that: The service station doesnt let their customer know about the availability of the other lubricant.
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5.

MONTHLY CONSUMPTION OF LUBRICANT


Above 20000L 4%

Sales
1-1000L 31%

10000-20000L 16% 5000-10000L 22%

1000-5000L 27%

Among 45 respondents Monthly consumption 1-1000 L 1000-5000 L 5000-10000 L 10000-20000 L Above 20000L Total 14 12 10 7 2 45

Percentage 31% 27% 22% 16% 4% 100%

* Observation:

From the above table it is revealed that: 31% of the respondents have monthly consumption of at least up to 1000 Lts of lubricants.

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27% of the service stations have monthly consumption of more than 1000 but less than 5000 Lts of lubricants. A mere 22% of the respondents have monthly consumption of 5000 to 10000 Lts. Only 16% of the respondents have monthly consumption of above 10000 Lts

6.

CUSTOMER DEMAND FOR ANY PARTICULAR BRAND OF LUBRICANT

No Answer 4%

Sales
yes 40%

no 56%

Response Yes No No answer Total

Among 45 respondents 18 25 2 45

Percentage 40% 56% 4% 100%

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* Observation:

From the above table it is revealed that: 40% customers have specific demand of using other kinds of lubricants like waxpol, KBX, spirax etc. 56% dont have any specific demand for lubricant.

7.

REASON FOR NOT USING SERVO LUBRICANT

Sales
Quality is not good 0% Less faith 13%

others 34%

Lack of distribution 53%

Reason for not use Quality is not good Less faith Lack of distribution Others Total

Among 45 respondents 0 6 24 15 45

Percentage 0% 13% 53% 34% 100%

* Observation
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From the above table it is revealed that: 13% of respondents dont have much faith in servo lubricant or in other words feel that the brand is not fully duplicacy-proof. Whereas 53% of them feel that there is lack of proper distribution of servo lubricants. 34% of them dont use servo lubricant because of reasons like time factor, less mileage etc. 8. KINDS OF PAYMENT FOLLOWED

Sales
cash 33%

credit 67%

Kinds of payment Cash Credit Total

Among 45 respondents 15 30 45

Percentage 33% 67% 100%

*Observation:
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From the above table it is revealed that: 33% of the service stations deal in cash exchange. 67% of them deal in credit exchange.

9.

IF CASH, THE RATE OF DISCOUNT ALLOWED-

1-3% 0%

Sales

more than 5 20%

3-5% 80%

Response 1-3% 3-5% Above 5 Total

Among 15 respondents 0 12 3 15

Percentage 0% 80% 20% 100%

*Observation:

From the above table it is revealed that: -

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80% of the respondents get discount of at least 5%. Only a 20% of them get a discount of more than 5

10.

DAYS ALLOWED FOR CREDIT PAYMENT

Sales
45 days 7% 10 days 0% 15 days 20%

30 days 73%

Days allowed 10 days 15 days 30 days 45 days Total *Observation:

Among 30 respondents 0 6 22 2 30

Percentage 0% 20% 73% 7% 100%

From the above table it is revealed that: 73% of the respondents get a period of 30 days for payment.

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20% of them get a period of 15 days for payment. Only 7% of them get 45 days for payment.
11. KIND OF PROMOTION DONE BY OTHER BRAND

Others 7% festival scheme 15%

Sales
free camp 22% gift 11% regular visit 27%

special scheme 18%

Kind of promotion Free camp Gift Regular visit Special scheme Festival scheme Others Total

Among 45 respondents 10 5 12 8 7 3 45

Percentage 22% 11% 27% 18% 15% 7% 100%

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*Observation: From the above table it is revealed that: 27% of other lubricant companies promote their product through regular visit. 22% of the companies promote their product through free camp. Whereas only 18% of the companies offer special scheme as a promotion strategy. 11% of companies promote their product by giving gifts.

12.

INTEREST TO TIE-UP WITH IOCL FOR

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Sales
yes 7%

no 29%

no answer 64%

LUBRICANT

Response Yes No No answer Total

Among 45 respondents 3 13 29 45

Percentage 7% 29% 64% 100%

*Observation: From the above table it is revealed that: Only a mere 7% respondents are interested to tie up with IOCL for lubricant. Whereas majority of them (64%) of them did not show any interest of such kind.

13.

ADVANTAGE OF OTHER LUBRICANTS OVER SERVO

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Sales
good price 0% Availabilty of product 38% good network 62%

Options Good price Good network Availability of product Total

Among 45 respondents 0 28 17 45

Percentage 0% 62% 38% 100%

*Observation: From the above table it is revealed that: Other lubricant companies do not provide better pricing than IOCL. Whereas other companies do have better network (62%) and availability (38%).

14. IS THEIR ANY AFFECT OF WEATHER ON SALE

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no answer no 7% 0%

Sales

yes 93%

Response Yes No No answer Total

Among 45 respondents 42 0 3 45

Percentage 93% 0% 7% 100%

*Observation

Everybody said that weather affects the sale by 1020%.Mainly in rainy season.

15. DID ADVERTISEMENT AFFECT THE SALE

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no answer 4% no 0%

Sales

yes 96%

Response Yes No No answer Total

Among 45 respondents 43 0 2 45

Percentage 96% 0% 4% 100%

*Observation Everyone said that advertisement effects the sale .

16.

WHAT IS THE PERCENTAGE OF CUSTOMER WHO REALLY BOTHER FOR COST

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no answer 4%

Sales

no 25%

yes 71%

Response Yes No No answer Total

Among 45 respondents 32 11 2 45

Percentage 71% 25% 4% 100%

*Observation Percentage is very high who really bother for cost.

17.

DO YOU KNOW ABOUT THE DEALER/STOCKIST OF SERVO

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Sales
no answer 18% no 31%

yes 51%

Response Yes No No answer Total

Among 45 respondents 23 14 8 45

Percentage 51% 31% 18% 100%

*Observation This percentage is also not good, every retail outlet person should know about the stockist and dealers. This is due to less frequent visit of company representative.

18.

DOES ANY SERVO REPRESENTATIVE VISIT YOUR SHOP/SERVICE STATION FREQUENTLY

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Sales
yes 11% no answer 49% no 40%

Response Yes No No answer Total

Among 45 respondents 5 18 22 45

Percentage 11% 40% 49% 100%

*Observation Percentage of representative visit to outlets is poor.

19.

DURING BUYING CUSTOMER ASK FOR

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Availabilty 2% Ask your advice 13%

Sales

brand 27%

Price 58%

Kind of promotion Price brand Ask your advice Availability Total

Among 45 respondents 26 12 6 1 45

Percentage 58% 27% 13% 2% 100%

*Observation Maximum customers are price sensitive and the percentage is 58%. Some customers go for brand. Due to lack of knowledge some of them ask advice regarding price and performance.

Analysis of the Questionnaire distributed to end user.


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S.No.

QUESTION

YES

NO

NO RESPONSE 5%

Have you ever heard the name SERVO? 1 2 Have you ever visited any service station?

95%

0%

60%

25%

15%

3 4

Have you ever used Servo product? Have you seen any servo advertisement?

65% 75%

25% 0%

10% 25%

After watching advertisement of servo have you ever thought that you should use it at least once?

75%

15%

10%

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6.

Which brand name you listen frequently? a) CASTROL b) SERVO c) OTHERS

Sales
10 8 6 4 2 0 Castrol Servo Others Servo, 6 Others, 5 Castrol, 9

7. What factors effects you in a lubricant advertisement? a. Frequency of advertisement is high


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b. Feature which are shown c. Brand ambassador

8 7 6 5 4 3 2 1 0 1 2 3

8. What makes you think of that name? a. Advertisement b. Frequently use of that name c. Experience(good performance) d. Other(someone advised or price sensitive)

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7 6 5 4 3 2 1 0 Advertisement Name Performance Other

9. Whenever you think of servicing of your vehicle which brand name comes in your mind? a) SERVO b) CASTROL c) OTHERS

8 7 6 5 4 3 2 1 0 Servo Castrol Others Column1

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LIMITATIONS

Limited time available for interviewing the respondents. As a result of this it was not possible to gather full information about the respondents. Due to inclement summer season, at times people are less interested in filling up questionnaire. Sometimes the problem which I face is language problem for which I have to make them understand. Non-cooperative approach and rude behavior of the respondents at times. If the respondents answer does not fall in the options given, then the response becomes biased.

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CHAPTER-V CONCLUSION, RECOMMENDATIONS AND SUMMARY

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CONCLUSIONS Among public sector companies Servo is on top but the castrol is the main competitor in the market and having major market share. Although the price of castrol is high. Major competitor in guwahati market is Castrol and Elf. Maximum customers are unaware of brands i.e. which product performance is good at affordable price. Servo lacks proper distribution channel. Maximum service stations deal in credit exchange. Other companies promote their product through regular visit , free camp ,special scheme as a promotion strategy, and by giving gifts. Other lubricant companies do not provide better pricing than IOCL, whereas other companies do have better network and availability. Advertisement plays an important role in increasing sale. During rainy season sales of lubricant decreases. Percentage of representative visit to outlets is less. Maximum customers are rate sensitive. Abhishek motors, kiron Transport Company, Green valley travels, Capital travels are potential customer for the company. Regular advertisement has great impact on customer mind. Area wise market potential of AT Road is very high. There are less retail outlets in Guwahati City

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Recommendations

1. Company representative should visit the service station frequently for market build-up. 2. Representative should regularly visit retail outlets with different schemes in place and also collect feedback. 3. Company should provide products on credit basis if possible. 4. Regular campaigning should be done for both direct and indirect customer. 5. Representative should meet end user to increase awareness toward SERVO. 6. Like other private companies organisation should make

proposals/deals more flexible according to the customer needs. 7. IOC should go for maximum tie ups. 8. Representative should visit major transport companies in guwahati such as Capital travels, green valley, and Network travels for tie up. 9. The corporation should formulate specific strategy for the biggest lubricant market at AT Road, Beltola etc. 10. Increase number of Retail dealers in Guwahati City.

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APPENDIX 1 QUESTIONNAIRE

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Questionnaire-1

1. Which brand lubricant you use ? a. Servo b. Castrol c. others 2. Total sale of lubricanta. 1-1000L b. 1000-5000L c. 5000-10000L d. 10000-20000L e. 20000 and above 3. During buying customer ask for a. Price b. Directly brand c. Ask your advice d. Availability 4. Does any servo representative visit your shop/service station frequently? 5. Customer know about availability of other brand at your workshop? Yes No

6. Do you know about the dealer/stockist of servo? 7. Does customer ask for particular brand? Yes No

8. What are the customer perceptions about the servo?


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9. Reason behind the use of particular lubricant a. Customer demand b. Quality perception c. Better association with manufacturing company 10. Reason for not using servo lubricant a. Quality b. Less faith c. Lack of distribution d. Price 11. Which kind of payment is followed? 12. Days allowed for credit payment? 13. If cash rate of discount allowed 14. Kind of promotion done by other brand a. Fuel camp b. Gift c. Regular visit to service station d. Special scheme e. Festival scheme 15. Interest to tie up with IOCL 16. What is the percentage of customer who really bother for cost? 17. Did advertisement affect the sale? 18. Is their any effect of weather on sale? 19. Advantage of other lubricant over servo.

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Questionnaier-2

1. Have you ever heard the name SERVO? 2. Have you ever visited any service station? 3. Have you ever used Servo product? 4. Have you seen any servo advertisement? 5. After watching advertisement of servo have you ever thought that you should use it at least once? 6. Which brand name you listen frequently? CASTROL SERVO OTHERS

7. What factors effects you in a lubricant advertisement? Frequency of advertisement is high Feature which are shown Brand ambassador

8. What makes you think of that name? Advertisement Frequently use of that name Experience(good performance) Other(someone advised or price sensitive)

9. Whenever you think of servicing of your vehicle which brand name comes in your mind? SERVO CASTROL OTHERS

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APPENDIX-II
REFERENCES

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Reference Books Marketing Management ,By Rajan Saxena Marketing Management, Philip Kotler

Internet

www.slideshare.net www.scribd.com www.wikipedia.com www.Iocl.com

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