Marketing head-Shiva Kumar

Viper lubricant

2009-2010

Viper lubricant
THE ANTI-FRICTION VENOM

The Indian automotive lubricants market is largely price sensitive

and volume growth is stagnating due to longer lasting lubricants.
The market is fragmented with over 22 big and small
manufacturers and with the spate of mergers and acquisitions
(M&A), only a handful of big companies enjoy a major market
share.

Beta Hydrocarbon Limited.

 TOPIC
CHAPTER
NO.

1 ABSTRACT

2 INDUSTRY OVERVIEW

3 PRODUCT PROFILE

4 COMPETITORS

5 METHODOLOGY

6 ANALYSIS &
INTERPRETATION
7 FINDINGS

8 RECOMMENDATION
 PART 1

ABSTRACT
 Abstract

The Indian automotive lubricants market is largely price sensitive and

volume growth is stagnating due to longer lasting lubricants. The market
is fragmented with over 22 big and small manufacturers and with the
spate of mergers and acquisitions (M&A), only a handful of big
companies enjoy a major market share.

Companies are adopting a more customer-oriented approach where they

are likely to focus on creating brand awareness through print and visual
media. For example promotional campaigns and trade shows offering
gifts to their customers are methods of driving sales of automotive
lubricants.

The original equipment segment and retail trade are the two major
marketing channels in the Indian automotive lubricants market. Due to
the growing competition, tie-ups with original equipment manufacturers
(OEM) are becoming important as they reinforce the value proposition
of a particular brand.

Petrol pumps form a major distribution channel in retail trade, however

sales of lubricants through retail outlets (also called ‘the bazaar trade’)
has transformed the Indian automotive lubricants market into a fast
moving consumer goods (FMCG) sector. The other marketing channels
are authorized service stations, garages, rural and agricultural dealers,
super markets, and wholesale distributors

Public sector unit (PSU) companies, that manufacture their own base oil,
follow different distribution strategies as compared to private
participants that solely dependent on imports. While PSUs sell through
their own wide spread network of petrol stations private manufacturers
prefer retail outlets.
Engine oil, which accounted for over 70.0 percent market share in 2004
in the Indian automotive lubricants market, plays the most crucial role in
deciding the market share of manufacturers. Increase in demand for four
stroke motorcycles, tie ups with original equipment manufacturers, and
implementation of new pollution norms are just some of the key drivers
of the engine oil segment.

The brake oil and coolant is the next largest segment in the Indian
automotive lubricants market. Demand for coolants is increasing due to
continuous growth in heavy commercial vehicles, increasing awareness
among the customers, new cooling system technologies, and OEM tie-
ups.

In brake oil segment, increasing growth in light commercial vehicles,

introduction of new brake systems, consumption of lubes by commercial
passenger vehicles, and changing customer mindset regarding specialty
lubricants are expected to push demand further.

The market for gear oils is also growing rapidly and has a high potential
due to the increasing number of vehicles on the road. New generation
vehicles with advanced gear system technologies and automatic
transmission systems require special type of lubricants resulting in
greater demand for multi axel gear oil and API synthetic gear oil, API
GL-5, API MT-1, and ultra-Matic, which reduce the oil changing
intervals.

In the long term, the overall outlook for the automotive lubricants
market is expected to be positive due to the growing Indian economy
along with the increased purchasing power of consumers.
 PART 2

INDUSTRY
OVERVIEW
 The Indian Lubricant Market

Introduction

The Indian automotive lubricant market is the sixth largest market in

the world with “revenues of approximately $1. 30 billion in 2002”. It
is also one of the fastest growing retail markets in India. Until 1993, it
was a highly regulated market with a clear dominance of the public
sector. Companies like Bharat Petroleum (BPCL), Hindustan Petroleum
(HPCL), and Indian Oil Corporation (IOC) held more than 75 percent of
the market share.
In recent years, with the advent of the increasing number of
multinationals in the Indian market there is a growing presence of
private companies. Companies like Castrol, Elf Total-Fina, Gulf, and
Shell Oil have made their presence felt in the market. It has been
estimated that there is a presence of around 30 companies in lube market
of India. All the oil companies are fighting to consolidate their position
in market. The monopoly of the public sector holdings no longer exist.
MNC ‟s will be able t o sell their products through petrol pumps. Lubes
manufactured by Reliance Petroleum, Castrol, Elf, Gulf Oil etc, are now
sold at petrol pumps.
In medium to long term, “Frost & Sullivan” expect private sector
companies to have a market share of around 25 percent.
In the next couple of years, the industry is going to witness big changes.
Retail networks, logistics management, and risk management are going
to be the crucial factors. The stand-alone refineries will have to be
merged with the marketing companies, as they do not have the
distribution infrastructure to sell their products in a deregulated market.
Companies like Reliance are already selling their products through
petrol pumps.
Lube Oil after Post Liberalization

The first seeds of competition were shown in the early 1990s when
following the liberalization of the Indian economy, the government
decided to open the Indian market to foreign competition. Import of base
oil, the key raw material, was de-canalized with IOC losing its status as
the sole canalizing agent.
Pricing of base oil was deregulated in a phased manner and currently it
is now market determined.
Basic custom duty on base oil stock was also reduced from a peak of 85
percent to a level of 25 percent. All quantitative restrictions were also
removed. These developments naturally encouraged the entry of foreign
players on Indian shores who were already facing a slowdown in
demand in their local markets. The coming of foreign participants
created an excess supply situation in the Indian automotive lubes market,
which made it more difficult for the Indian lube manufacturers to
survive.
Recent deregulations in the lubricant market have promised many new
opportunities for the private lube manufacturers. With the dismantling of
Administered Price Mechanism (APM) the burden of subsidies is now
being passed on to the government. Private participants will also gain a
presence in the Indian oil and Gas sector and hence there will be
competition between participants that will ensure the growth of the
sector.

Lubricant Industry overview

India is the sixth largest consumer of lubricants in the world. The

current lubricants market is estimated to be of $1222 million (Rs. 55
billion). The automotive lubricants market in India was controlled by the
four major public sector oil companies such as major public sector oil
companies such as Indian Oil Corporation Limited (IOCL), Hindustan
Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation
Limited (BPCL) and a handful of private companies such as Castrol,
Tidewater, and others until 1992. Following liberalization, major policy
initiatives were taken and which, encouraged foreign companies to
invest in India.

Current scenario of Indian Lubricant Industry

The Lubricant Industry in India Is at its Peak stage as the Market

condition is good because of Massive increase in the income of people
and growing economy the standard of living of the people is improving
and the people are able and willing to buy vehicles and many new
players are entering in to the Indian market with the segments of
vehicles which are perfectly suitable for Indian conditions, and of course
the various companies are joining hand to establish themselves into the
Indian market. And the massive infrastructure development projects
which are going on in country like building of Golden Quadrilateral
Highways joining all the major cities of the country , Up gradation of
Highways , Boom in Mining sector , Improvement in the Roads in the
City, Building of Flyovers , And Many more development processes
have added feathers to the Automobile Sector and lead to massive
demand for vehicles irrespective of their category i.e. Two Wheelers,
Three wheelers, Four Wheelers and Heavy Vehicles.
The Life in the city has become fast and every person is need of
vehicles according to their income. That time has gone when only the
persons who had more income would own a Two wheeler or four
wheeler with development in Banking sector has given opportunity to
every common man to purchase vehicle by getting loan. The
development in industrial sector has raised demand for Heavy
transportation vehicles.
This all Factor have led to massive growth in automobile sector
which is base for Lubricant Industry as Every Vehicle needs lubricant
for smooth running and increase in vehicles means increase in Demand
for Lubricants. The Lubricant industry in India has been dominated by
International Player Castrol followed by Servo, Gulf and many other
companies. The major players in Indian Market are as follows

 Castrol India
 Bharat Petroleum
 Apar Industries
 Gulf Oil
 Hindustan Petroleum
 Indian Oil
 Savita Chemicals
 Tide Water

As Mentioned earlier the Indian Lubricant Market is in booming

stage there is lot of scope for new players entering in the market unless
they are able to overcome the competition from the fully established
players like Castrol who have been ruling the market from decades.

Strong growth in the Indian automotive, power and engineering

sectors is creating new market opportunities for lubricants’
manufacturers, according to a new study from the research and advisory
firm, India Analysis. In the automotive sector, consumers are migrating
to better quality vehicles and motorbikes and as a result, using higher
grade lubricants; this is benefiting multi-grade lubricant products with
strong brand recognition and wide distribution. In the industrials’
segment, high levels of investment in the power, manufacturing and
transport sectors should drive very strong growth for transformer oils,
marine and aviation lubricants. There are no restrictions on foreign
lubricant manufacturers from establishing 100%-owned operations in
India; many have chosen to partner with local companies.
This new research study provides a comprehensive overview of the
Indian lubricants’ industry. It covers: market size and structure;
competitive analysis, distribution structure, etc. The study covers both
the automotive and industrial lubricants sectors. .
 The report is targeted at lubricant manufacturers and distributors
who are keen to build an understanding of the Indian lubricants industry
and the opportunities it presents. In addition to this, it will be extremely
useful for financial investors pursuing investment opportunities in India,
consultants and other industry analysts.
Commenting on the research, Harjinder Singh-Heer, Managing
Director of India Analysis said “lubricant manufacturers who produce
premium products and invest in marketing and distribution can expect to
benefit from the growing opportunities in the Indian lubricants market.”

The Indian automotive lubricants market is largely price sensitive

and volume growth is stagnating due to longer lasting lubricants. The
market is fragmented with over 22 big and small manufacturers and with
the spate of mergers and acquisitions (M&A), only a handful of big
companies enjoy a major market share.
Companies are adopting a more customer-oriented approach where they
are likely to focus on creating brand awareness through print and visual
media. For example promotional campaigns and trade shows offering
gifts to their customers are methods of driving sales of automotive
lubricants.
The original equipment segment and retail trade are the two major
marketing channels in the Indian automotive lubricants market. Due to
the growing competition, tie-ups with original equipment manufacturers
(OEM) are becoming important as they reinforce the value proposition
of a particular brand.
Petrol pumps form a major distribution channel in retail trade,
however sales of lubricants through retail outlets (also called ‘the bazaar
trade’) has transformed the Indian automotive lubricants market into a
fast moving consumer goods (FMCG) sector. The other marketing
channels are authorized service stations, garages, rural and agricultural
dealers, super markets, and wholesale distributors
Public sector unit (PSU) companies, that manufacture their own
base oil, follow different distribution strategies as compared to private
participants that solely dependent on imports. While PSUs sell through
their own wide spread network of petrol stations private manufacturers
prefer retail outlets.
Engine oil, which accounted for over 70.0 percent market share in
2004 in the Indian automotive lubricants market, plays the most crucial
role in deciding the market share of manufacturers. Increase in demand
for four stroke motorcycles, tie ups with original equipment
manufacturers, and implementation of new pollution norms are just
some of the key drivers of the engine oil segment.
The brake oil and coolant is the next largest segment in the Indian
automotive lubricants market. Demand for coolants is increasing due to
continuous growth in heavy commercial vehicles, increasing awareness
among the customers, new cooling system technologies, and OEM tie-
ups.
In brake oil segment, increasing growth in light commercial vehicles,
introduction of new brake systems, and consumption of lubes by
commercial passenger vehicles, and changing customer mindset
regarding specialty lubricants are expected to push demand further.
The market for gear oils is also growing rapidly and has a high
potential due to the increasing number of vehicles on the road. New
generation vehicles with advanced gear system technologies and
automatic transmission systems require special type of lubricants
resulting in greater demand for multi axel gear oil and API synthetic
gear oil, API GL-5, API MT-1, and ultra-Matic, which reduce the oil
changing intervals.
In the long term, the overall outlook for the automotive lubricants
market is expected to be positive due to the growing Indian economy
along with the increased purchasing power of consumers.
Introduction

The Indian automotive lubricant market is the sixth largest market

in the world with revenues of approximately $1.30 billion in 2002. It is
also one of the fastest growing retail markets in India. Until 1993, it was
a highly regulated market with a clear dominance of the public sector.
Companies like Bharat Petroleum (BPCL), Hindustan Petroleum
(HPCL), and Indian Oil Corporation (IOC) held more than 75 percent of
the market share. In recent years, with the advent of the increasing
number of multinationals in the Indian market there is a growing
presence of private companies. Companies like Castrol, Elf Total-Fina,
Gulf, and Shell Oil have made their presence felt in the market.

Market Size

Total production of automotive lubricants in India is

approximately 8 to 10 percent of global lube production. Unlike other
countries where lubricant demand has witnessed stagnation, the Indian
market has been growing at approximately 7 percent per annum for the
past 2 years. The public sector contributes to over 60 percent of the
revenues for this market. MNC’s have 5 percent market share and the
remaining share is held by the unorganized sector. Automotive
lubricants are further divided into diesel lubes and petrol lubes. Diesel
lubes comprise 70 percent of the market and petrol based lubricants
cover the rest. As diesel lubes are used by commercial vehicles, which
have to cover greater distances, their market share is higher. Engine oil
constitutes around 83 percent of total sales volumes. Gear oils,
transmission fluids, hydraulic brake fluids, and engine coolants
contribute to the balance.

Competitive Analysis

The first seeds of competition were sown in the early 1990’s

when following the liberalization of the Indian economy, the
government decided to open the Indian market to foreign competition.
Import of base oil, the key raw material, was de-canalized with IOC
losing its status as the sole canalizing agent. Pricing of base oil was
deregulated in a phased manner and currently it is market determined.
Basic custom duty on base oil stock was also reduced from a peak of 85
percent to a level of 25 percent. All quantitative restrictions were also
removed. These developments naturally encouraged the entry of foreign
players on Indian shores who were already facing a slowdown in
demand in their local markets. The coming in of foreign participants
created an excess supply situation in the Indian automotive lubes market,
which made it more difficult for the Indian lube manufacturers to
survive.
Recent deregulations in the lubricant market have promised
many new opportunities for the private lube manufacturers. With the
dismantling of Administered Price Mechanism (APM) the burden of
subsidies is now being passed on to the government. Private participants
will also gain a presence in the Indian oil and gas sector and hence there
will be competition between participants that will ensure the growth of
the sector. In the next couple of years, the industry is going to witness
sea changes. Retail networks, logistics management, and risk
management are going to be the crucial factors. The stand-alone
refineries will have to be merged with the marketing companies, as they
do not have the distribution infrastructure to sell their products in a
deregulated market. Companies like Reliance are already selling their
products through petrol pumps. The monopoly of the public sector
holdings will no longer exist. MNC’s will be able to sell their products
through petrol pumps. Lubes manufactured by Reliance Petroleum,
Castrol, Elf, Gulf Oil etc, which are now sold at petrol pumps. In
medium to long term, Frost & Sullivan expects private sector companies
to have a market share of around 25 percent.

Distribution Structure

There are two key markets for lubricants in India. Given high
levels of competition original equipment, linkages are gaining
importance. The original equipment market contributes almost 70
percent and 30 percent of the market is comprised by the retail sales
segment. The channel for replacement market or the retail segment is
petrol pumps or retail stores. Almost 70 percent of the lubricants in India
are sold through petrol pumps. Most of the MNC’s have tied up with oil
majors for marketing their lubricants like Castrol with Escorts and Tata
BP with Telco. After the deregulation of the petrol pumps companies are
keenly watching the developments in the lubes market.
The distribution channel adopted by public sector units is
through the petrol pumps. Other private participants have had to set up
an independent infrastructure comprising of distributors, stockiest and
retailers throughout India. MNC’s and private companies sell through
retail stores. To compete with dominant public sector distribution,
concepts like "Bazaars" and "Super Stores" have also been developed.
Castrol developed the concept of "Bazaars." These are outlets meant
only for lubricant sales.
The concept of "User Outlet" is another new concept developed by
Castrol. In this, the consumer selects his own brand of lube after giving
his vehicle for service in the same outlet. Convenient stores and highway
stops for vehicles are being built from where the vehicle owners can get
their vehicles repaired and get their supply of lubricants. In the lube
market, Indian Oil Corporation Limited is leading the market with 30
percent market share. Castrol is next with 25 percent of the share and
HPCL and BPCL are next with about 20 percent and 15 percent shares
respectively. Other private companies hold the remaining market share.

Diesel Engine Lubricants for Automobiles

The main function of a lubricant for diesel engine is equivalent to

a gasoline engine. As the load in diesel engine is much higher it should
have adequate anti-wear properties. Diesel fuel contains a high level of
sulphur which, burns to form oxides of sulphur, which in turn in the
presence of water, form sulphur acids resting in high corrosion of car
engine parts. Hence the need of alkalinity reserve in the oil, which is
represented by its TBN or Total Base Number. Generally, the higher
TBN value more the alkalinity reserve or acid neutralizing capacity the
oil contains.

Synthetic Oil

The start of synthetic oil more than fifty years back opened up
vastly improved and new alternative lubricant to mineral oil. But being
very expensive, it is confirmed to the arcane world of car sports and
used for high performance cars. They are also widely used in developing
countries for a number of reasons like improved overall engine
performance, low oil consumption; long drain periods, less engine wear,
improved engine cleanliness and faster starting. Taking into
consideration the price tag and its efficacy, the option is left for
consumer's discretion.

Additives

Plain mineral oils cannot provide all the necessary functional

properties that an engine requires. These plain mineral oils need
fortification with chemicals/additives which when used in small
quantities, import or enhance the desirable functional properties. Some
of the types and reasons for their use are as follows:

Dispersants:

Keeps sludge, carbon and other deposit- precursors suspended in oil.

Detergents:

Keeps the automobile engine parts clean from deposits.

Rust/Corrosion Inhibitors:

Prevents or controls oxidation of oil, formation of varnish, sludge and

corrosive compounds, limit viscosity increase.
Extreme Pressure (EP):

Anti wear and friction modifiers: These form protective film on

the engine parts and reduce wear and tear of the automobile.

Metal deactivators:

Forms surface films so that metal surface does not catalyze oil
oxidation.

Pour Point Depressant:

Lowers freezing point of oils assuring free flow at lower

temperatures.

Anti-foments:

Reduces foam in crankcase and blending

The main purpose of lubricants in cars is to smoothen the moving

parts of the automobile to reduce friction and wear and tear by providing
trouble free performance for a longer span of time. A lubricant is a blend
of base oils and performance-enhancing additives as required by car
engine, gear box and other functional areas.

Engine oil is the most important of the all the lubricants

.Lubricants for gasoline and diesel engine are different as the load cycles
and fuels are different. Other than reducing friction, the oil in a car
engine

Helps to:

 Seal the high-pressure combustion gases inside the cylinders,

 Impede the corrosion of metal parts,
  Absorb some of the harmful by-products of combustion,
 Transfer heat from one part of the engine to another.

Combustion of rich air-fuel mixture during starting, idling and

warm up form deposits. These deposits in the form of varnish, sludge,
soot and carbon, interfere with proper engine operation.

The engine oil keeps all the deposit forming material in

suspension and gets rid of them by oil filter, or draining out at proper
intervals.

Engine oil is stored in the oil pan at the bottom of the automobile
engine. A pump forces the oil through a filter and then through a series
of passages and galleries to lubricate the engine's moving parts. The oil
also cools these car parts. Rapidly moving engine parts actually float on
a thin film of oil and never make contact with one another. This is called
hydrodynamic lubrication and usually begins when an engine reaches
the idle speed. Most engine wear and tear occurs when a car is first
started, before the oil reaches its normal operating pressure and flow.
 PART 4

PRODUCT PROFILE
&
COMPETITORS
 Viper product profile

Viper is the new lubricant product of BETA

HYDROCARBON LTD. The profile containing meaning of lubricant,
purpose of this lubricant, Advantages, etc.

Viper Lubricant (sometimes referred to "Viper-The Anti-

friction Venom”) is a substance (often a liquid) introduced between two
moving surfaces to reduce the friction and wear between them. A
lubricant provides a protective film which allows for two touching
surfaces to be separated and "smoothed," thus lessening the friction
between them. Lubricants chemically interact with all surfaces so that
contact only occurs with the smooth and free lubricant. By this process,
abrasive particles are dissolved into the lubricant, thus making them also
very good solvents and cleaners. Petroleum-based lubricants like
Vaseline tend to dissolve petroleum products such as rubber and plastic,
while water-based lubricants tend to dissolve polar chemicals (like water
and dirt); hence the additives. The lubricant must be replaced when it
has dissolved to saturation, because the inability to dissolve additional
abrasive debris allows abrasive particles to scrape against or become
lodged in the working surfaces, thus introducing a margin for physical
contact between them. Lubricants which dissolve working surfaces (such
as Vaseline with rubber) defeat their purpose by corroding the smooth
surfaces by their own dissolving power, thus compromising structural
integrity, surface smoothness, and system-wide contamination. It can
also help to remove gum from hair.

One of the single largest applications for lubricants, in the

form of motor oil, is to protect the internal combustion engines in motor
vehicles and powered equipment.

Typically lubricants contain 90% base oil (most often

petroleum fractions, called mineral oils) and less than 10% additives.
Vegetable oils or synthetic liquids such as hydrogenated polyolefin’s,
esters, silicone, fluorocarbons and many others are sometimes used as
base oils. Additives deliver reduced friction and wear, increased
viscosity, improved viscosity index, resistance to corrosion and
oxidation, aging or contamination, etc.

Lubricants such as 2-cycle oil are also added to some fuels.

Sulfur impurities in fuels also provide some lubrication properties,
which have to be taken in account when switching to a low-sulfur diesel;
biodiesel is a popular diesel fuel additive providing additional lubricity.

Non-liquid lubricants include grease, powders (dry graphite,

PTFE, Molybdenum disulfide, tungsten disulfide, etc.), Teflon tape used
in plumbing, air cushion and others. Dry lubricants such as graphite,
molybdenum disulfide and tungsten disulfide also offer lubrication at
temperatures (up to 350 °C) higher than liquid and oil-based lubricants
are able to operate. Limited interest has been shown in low friction
properties of compacted oxide glaze layers formed at several hundred
degrees Celsius in metallic sliding systems, however, practical use is
still many years away due to their physically unstable nature.

Another approach to reducing friction and wear is to use

bearings such as ball bearings, roller bearings or air bearings, which in
turn require internal lubrication themselves, or to use sound, in the case
of acoustic lubrication.

In addition to automotive and industrial applications, lubricants

are used for many other purposes, including as a personal lubricant, bio-
medical applications (e.g. lubricants for artificial joints) and others.

Main Purpose of Viper lubricant

Lubricants perform the following key functions.

 Keep moving parts apart

 Reduce friction
 Transfer heat
 Carry away contaminants & debris
  Transmit power
 Protect against wear
 Prevent corrosion
 Stop the risk of smoke and fire of objects

Keep moving parts apart

Lubricants are typically used to separate moving parts in a
system. This has the benefit of reducing friction and surface fatigue
together with reduced heat generation, operating noise and vibrations.
Lubricants achieve this by several ways. The most common is by
forming a physical barrier i.e. a thin layer of lubricant separates the
moving parts. This is termed hydrodynamic lubrication. In cases of high
surface pressures or temperatures the fluid film is much thinner and
some of the forces are transmitted between the surfaces through the
lubricant. This is termed elasto-hydrodynamic lubrication.

Reduce friction

Typically the lubricant-to-surface friction is much less than

surface-to-surface friction in a system without any lubrication. Thus use
of a lubricant reduces the overall system friction. Reduced friction has
the benefit of reducing heat generation and reduced formation of wear
particles as well as improved efficiency. Lubricants may contain
additives known as friction modifiers that chemically bind to metal
surfaces to reduce surface friction even when there is insufficient bulk
lubricant present for hydrodynamic lubrication, e.g. protecting the valve
train in a car engine at startup.

Transfer heat
Both gas and liquid lubricants can transfer heat. However,
liquid lubricants are much more effective on account of their high
specific heat capacity. Typically the liquid lubricant is constantly
circulated to a cooler part of the system, although lubricants may be used
to warm as well as to cool when a regulated temperature is required.
This circulating flow also determines the amount of heat that is carried
away in any given unit of time. High flow systems can carry away a lot
of heat and have the additional benefit of reducing the thermal stress on
the lubricant. Thus lower cost liquid lubricants may be used. The
primary drawback is that high flows typically require larger sumps and
bigger cooling units. A secondary drawback is that a high flow system
that relies on the flow rate to protect the lubricant from thermal stress is
susceptible to catastrophic failure during sudden system shut downs. An
automotive oil-cooled turbocharger is a typical example. Turbochargers
get red hot during operation and the oil that is cooling them only
survives as its residence time in the system is very short i.e. high flow
rate. If the system is shut down suddenly (pulling into a service area
after a high speed drive and stopping the engine) the oil that is in the
turbo charger immediately oxidizes and will clog the oil ways with
deposits. Over time these deposits can completely block the oil ways,
reducing the cooling with the result that the turbo charger experiences
total failure typically with seized bearings. Non-flowing lubricants such
as greases & pastes are not effective at heat transfer although they do
contribute by reducing the generation of heat in the first place.

Carry away contaminants and debris

Lubricant circulation systems have the benefit of carrying away
internally generated debris and external contaminants that get introduced
into the system to a filter where they can be removed. Lubricants for
machines that regularly generate debris or contaminants such as
automotive engines typically contain detergent and dispersant additives
to assist in debris and contaminant transport to the filter and removal.
Over time the filter will get clogged and require cleaning or
replacement, hence the recommendation to change a car's oil filter at the
same time as changing the oil. In closed systems such as gear boxes the
filter may be supplemented by a magnet to attract any iron fines that get
created.
It is apparent that in a circulatory system the oil will only be as clean as
the filter can make it, thus it is unfortunate that there are no industry
standards by which consumers can readily assess the filtering ability of
various automotive filters. Poor filtration significantly reduces the life of
the machine (engine) as well as making the system inefficient.

Transmit power

Pascal's law is at the heart of hydrostatic power transmission.

Hydraulic fluids comprise a large portion of all lubricants produced in
the world.

Protect against wear

Lubricants prevent wear by keeping the moving parts apart.
Lubricants may also contain anti-wear or extreme pressure additives to
boost their performance against wear and fatigue.

Prevent corrosion

Good quality lubricants are typically formulated with additives

that form chemical bonds with surfaces to prevent corrosion and rust.

History
Romans used rags dipped in animal fat to lubricate wagon
wheels; however the science of lubrication (tribology) really only took
off with the industrial revolution in the nineteenth century.

General composition

Lubricants are generally composed of a majority of base oil

and a minority of additives to impart desirable characteristics.
 SWOT ANALYSIS

Strenghts Weaknesses Oppurtunity

• Less margin to • Indian economy

• Our products and dealers is a developing
services are backed • Market economy & Threats
up by a professional concentrated by comprises of a • Lot of competitors in
and multi-lingual other prominant huge industrial Indian motor maket &
team of personnels area so there is Involvement in grey
of whom we are
brands
endless market by various
justifiably proud. • Less popularity in spurious &
rural areas opportunities
contaminated
• We maintain large • India is linked products.
supply of aviation with national
products of highest highway ,lot of
degree of quality to truck & heavy
serve the needs of mover vehicles
aviation industry
passes through
worldwide.
this highway.
 Marketing
The global lubricant market is generally competitive with numerous
manufacturers and marketers. Overall the western market may be
considered mature with a flat to declining overall volumes while there is
strong growth in the emerging economies. The lubricant marketers
generally--- pursue one or more of the following strategies when
pursuing business.

 Specification:

The lubricant is said to meet a certain specification. In the

consumer market, this is often supported by a logo, symbol or words that
inform the consumer that the lubricant marketer has obtained
independent verification of conformance to the specification. Examples
of these include the API’s donut logo or the NSF tick mark. The most
widely perceived is SAE viscosity specification, like SAE 10W-40.
Lubricity specifications are institute and manufacturer based. In the U.S.
institute: API S for petrol engines, API C for diesel engines. For 2007
the current specs are API SM and API CJ. Higher second letter marks
better oil properties, like lower engine wear supported by tests. In EU
the ACEA specifications are used. There are classes A, B, C, and E with
number following the letter. Japan introduced the JASO specification for
motorbike engines. In the industrial market place the specification may
take the form of a legal contract to supply a conforming fluid or
purchasers may choose to buy on the basis of a manufacturers own
published specification.

 Original equipment manufacturer (OEM) approval:

Specifications often denote a minimum acceptable

performance levels. Thus many equipment manufacturers add on their
own particular requirements or tighten the tolerance on a general
specification to meet their particular needs (or doing a different set of
tests or using different/own test bed engine). This gives the lubricant
marketer an avenue to differentiate their product by designing it to meet
an OEM specification. Often, the OEM carries out extensive testing and
maintains an active list of approved products. This is a powerful
marketing tool in the lubricant marketplace. Text on the back of the
motor oil label usually has a list of conformity to some OEM
specifications, such as MB, MAN, Volvo, Cummins, VW, BMW or
others. Manufactures may have vastly different specifications for the
range of engines they make; one may not be completely suitable for
some other.

 Performance:

The lubricant marketer claims benefits for the customer based

on the superior performance of the lubricant. Such marketing is
supported by glamorous advertising, sponsorships of typically sporting
events and endorsements. Unfortunately broad performance claims are
common in the consumer marketplace, which are difficult or impossible
for a typical consumer to verify. In the B2B market place the marketer is
normally expected to show data that supports the claims, hence reducing
the use of broad claims. Increasing performance, reducing wear and fuel
consumption is also aim of the later API, ACEA and car manufacturer
oil specifications, so lubricant marketers can back their claims by doing
extensive (and expensive) testing.

 Longevity:

The marketer claims that their lubricant maintains its

performance over a longer period of time. For example in the consumer
market, a typical motor oil change interval is around the 3000-6000
miles (7500-15000 km). The lubricant marketer may offer a lubricant
that lasts for 12000 (30000km) miles or more to convince a user to pay a
premium. Typically, the consumer would need to check or balance the
longer life and any warranties offered by the lubricant manufacturer with
the possible loss of equipment manufacturer warranties by not following
its schedule. Many car and engine manufacturers support extended drain
intervals, but request extended drain interval certified oil used in that
case; and sometimes a special oil filter. Example: In older Mercedes-
Benz engines and in truck engines one can use engine oil MB 228.1 for
basic drain interval. Engine oils conforming to higher specification MB
228.3 may be used twice as long, oil of MB 228.5 specification 3 xs
longer. Note that the oil drain interval is valid for new engine with fuel
conforming car manufacturer specification. When using lower grade fuel
or worn engine the oil change interval has to shorten accordingly. In
general oils approved for extended use are of higher specification and
reduce wear. In the industrial market place the longevity is generally
measured in time units and the lubricant marketer can suffer large
financial penalties if their claims are not substantiated.

 Efficiency:

The lubricant marketer claims improved equipment efficiency

when compared to rival products or technologies, the claim is usually
valid when comparing lubricant of higher specification with previous
grade. Typically the efficiency is proved by showing a reduction in
energy costs to operate the system. Guaranteeing improved efficiency is
the goal of some oil test specifications such as API CI-4 Plus for diesel
engines. Some car/engine manufacturers also specifically request certain
higher efficiency level for lubricants for extended drain intervals.

 Operational tolerance:

The lubricant is claimed to cope with specific operational

environment needs. Some common environments include dry, wet, cold,
hot, fire risk, high load, high or low speed, chemical compatibility,
atmospheric compatibility, pressure or vacuum and various
combinations. The usual thermal characteristics are outlined with SAE
viscosity given for 100°C, like SAE 30, SAE 40. For low temperature
viscosity the SAE xxW mark is used. Both markings can be combined
together to form a SAE 0W-60 for example. Viscosity index (VI) marks
viscosity change with temperature, with higher VI numbers being more
temperature stable.

 Economy:

The marketer offers a lubricant at a lower cost than rivals either

in the same grade or a similar one that will fill the purpose for lesser
price. (Stationary installations with short drain intervals.) Alternative
may be offering a more expensive lubricant and promise return in lower
wear, specific fuel consumption or longer drain intervals. (Expensive
machinery, un-affordable downtimes.)

 Environment friendly:

The lubricant is said to be environmentally friendly. Typically

this is supported by qualifying statements or conformance to generally
accepted approvals. Several organizations, typically government
sponsored, exist globally to qualify and approve such lubricants by
evaluating their potential for environmental harm. Typically, the
lubricant manufacturer is allowed to indicate such approval by showing
some special mark. Examples include the German “Blue Angel”,
European “Daisy” Eco label, Global Eco-Label “GEN mark”, Nordic,
“White Swan”, Japanese “Earth friendly mark”; USA “Green Seal”,
Canadian “Environmental Choice”, Chinese “Huan”, Singapore “Green
Label” and the French “NF Environment mark”.

 Composition:

The marketer claims novel composition of the lubricant which

improves some tangible performance over its rivals. Typically the
technology is protected via formal patents or other intellectual property
protection mechanism to prevent rivals from copying. Lot of claims in
this area are simple marketing buzzwords, since most of them are related
to a manufacturer specific process naming (which achieves similar
results than other ones) but the competition is prohibited from using a
trademark.

 Quality:

The marketer claims broad superior quality of its lubricant with

no factual evidence. The quality is “proven” by references to famous
brand, sporting figure, racing team, some professional endorsement or
some similar subjective claim. All motor oil labels wear mark similar to
"of outstanding quality" or "quality additives", the actual comparative
evidence is always lacking.

Disposal and environmental issues

It is estimated that 40% of all lubricants are released into the
environment. Disposal: Recycling, burning, landfill and discharge into
water may achieve disposal of used lubricant. There are typically strict
regulations in most countries regarding disposal in landfill and discharge
into water as even small amount of lubricant can contaminate a large
amount of water. Most regulations permit a threshold level of lubricant
that may be present in waste streams and companies spend hundreds of
millions of dollars annually in treating their waste waters to get to
acceptable levels. Burning the lubricant as fuel, typically to generate
electricity is also governed by regulations mainly on account of the
relatively high level of additives present. Burning generates both
airborne pollutants and ash rich in toxic materials, mainly heavy metal
compounds. Thus lubricant burning takes place in specialized facilities
that have incorporated special scrubbers to remove airborne pollutants
and have access to landfill sites with permits to handle the toxic ash.
Unfortunately, most lubricant that ends up directly in the environment is
due to general public discharging it onto the ground, into drains and
directly into landfills as trash. Other direct contamination sources
include runoff from roadways, accidental spillages, natural or man-made
disasters and pipeline leakages. Improvement in filtration technologies
and processes has now made recycling a viable option (with rising price
of base stock and crude oil). Typically various filtration systems remove
particulates, additives and oxidation products and recover the base oil.
The oil may get refined during the process. This base oil is then treated
much the same as virgin base oil however there is considerable
reluctance to use recycled oils as they are generally considered inferior.
Base stock fractionally vacuum distilled from used lubricants has
superior properties to all natural oils, but cost effectiveness depends on
many factors. Used lubricant may also be used as refinery feedstock to
become part of crude oil. Again there is considerable reluctance to this
use as the additives, soot and wear metals will seriously
poison/deactivate the critical catalysts in the process. Cost prohibits
carrying out both filtration (soot, additives removal) and re-refining
(distilling, isomerisation, hydrocrack, etc.) however the primary
hindrance to recycling still remains the collection of fluids as refineries
need continuous supply in amounts measured in cisterns, rail tanks.
Occasionally, unused lubricant requires disposal. The best course of
action in such situations is to return it to the manufacturer where it can
be processed as a part of fresh batches. Environment: Lubricants both
fresh and used can cause considerable damage to the environment
mainly due to their high potential of serious water pollution. Further the
additives typically contained in lubricant can be toxic to flora and fauna.
In used fluids the oxidation products can be toxic as well. Lubricant
persistence in the environment largely depends upon the base fluid,
however if very toxic additives are used they may negatively affect the
persistence. Lanolin lubricants are non-toxic making them the
environmental alternative which is safe for both users and the
environment.
Promotion:

The promotion strategy has to suit the urban & semi-urban market. Above that, we
have a product like Viper. Such a product has its customer between the absolute
the upper-middle level income group. Therefore the promotion has to suit this
particular group of target customers. The promotion strategy will include the
following:

 Time of the launch: The promotion campaign will start during the
month of January, which comes just before March. It is an
auspicious time in North India when the people buy new products
& vehicles sales shoots up as it is the start of a new year. Our
promotion campaign will have to be well before March (when the
customer actually buys because he accepts more discount in this
period) in order to create adequate awareness of our product.

 Promotional schemes: This awareness will be created through

various promotion schemes such as distribution of pamphlets,
recommendation by mechanics etc.

 Road shows: We will conduct road shows where in we will focus

to create brand & product awareness, to the general public. The
artists will also educate the people about the various uses of the
product and its benefits over the other brands. They are the people
who will come in direct contact with the customers.

 Petrol Pumps: We will have small dedicated retail outlets in

various petrol pumps itself, as there is an extensive network of
petrol pumps in Delhi & Mumbai. We will be providing a special
discount to the customers for first two months; discount coupons
will entitle them to a certain amount of rebate on the purchase of
VIPER products. The petrol pumps dealer will also get paid for his
promotion efforts per customer. This will be an introductory offer.
  Contests: We shall organize certain contests (slogan writing,
scratch cards). Such contests can be organized during a festival, or
any time of the year. We can award the winner of the contest a
year’s supply of our lubricant product or various other prices. This
will create awareness about our products among a group of our
target customers.

Advertising

Television:
Since television is nowadays present in virtually all the households
in the country, it is a potential and an effective medium of targeting the
customers and also to communicate the product as well as the features of
the product to the target customers. Since it is an audio-visual medium
of communication (advertising), it is one of the most effective mediums.

We plan to screen our advertisements on channels like

Doordarshan, which is the most common channel in India and is present
an all the TV sets irrespective of the presence of any other satellite
channels. Apart from Doordarshan, we also plan to show our
advertisements on all major channels like the Zee Tv, Set Max, UTV etc.
Since our launch is in Delhi & Mumbai, it would be only logical to
screen our ads on such Major channels.

The timings will be thoroughly studied and selected. Since it is a

male usage product, the product will be screened on programs with
majority of male viewers. Apart from that family dramas/programs will
also have the commercials of our motorcycle.

Newspapers:
Newspapers are one of the most effective forms of media available
for advertising. Any person with the basic literacy i.e., the ability to read
can read a newspaper.

o The Hindustan Times – English newspaper

o The Times of India – Largest selling Newspaper
o Dainik Aikya - news in Marathi
o Lokmat Times - daily news paper with national, regional,
Marathi, sports, entertainment, art and culture news
o Pudhari - news in Marathi
o Sakal - provides news and features in Marathi
o Loksatta – daily news in Marathi

Hoardings:
Hoardings can be easily put up on highways near cities. These
hoardings will be seen everyday by lots of people and mainly, the urban
customer, because of his frequent visits to the nearby areas. Merely
showing the product on the hoarding gives a lot of eyeballs. We will also
put up hoardings carrying messages issued in public interest near
accident-prone zones, railway crossings, and town/village entrance
(gate).
Theatres/Cinema Halls:
Before the start of the movie and during intervals, we will be
showing our advertisements in the theatres to increase awareness.

S T Buses & Railway stations:

The ST buses are the major mode of public transport in urban
areas. Almost all the people residing in the urban areas use the ST buses
as a means of transport. The network of ST buses is very dense. They
connect almost all the districts and villages in a state with each other.
Hence, if the sides and the back of the ST buses are used to advertise our
product, it will receive a wider visibility. Also, the bus stands will be
used to advertise VIPER. Due to the heavy traffic of people traveling
and waiting at bus stops and railway stations every day, an
advertisement at these places will also fetch a lot of visibility for the
product.

Radio:
In today’s arena, almost everyone are tuned into the newly
introduced radio station, therefore, advertising our product through
almost all of the popular station i.e. 93.5 FM, 98.3 FM etc would create
a huge impact on the youth members of our society.
 Competitors
There are many competitors’ lubricants in the market. And
also competition becomes very much between them. Each are having
their own strategies and promotional activities for existence of their
product in the competitive market place. And also all are advertise their
product effectively by advertisement media in their also they will use
different strategies. The competitors are listed as below.
 Castrol
 Gulf
 Servo
 Veedol
 Pennzoil
 Lalghoda
 Elf
 Ipol
 Volvo line

Among above competitors castrol and gulf are the major

players and these players are already set up in the customer mind. Now
they are acquired most of the lubricant market.

Castrol

Castrol India Limited is a Public Limited Company with

70.92% of the equity held by Castrol Limited UK (part of BP Group). In
2003 the company's turnover was Rs.1360.51 crores and Profit after Tax
was Rs. 137.38 crores. From a minor oil company, with a share of about
6% in 1991, Castrol India has grown to become the second largest
lubricant company in India with a market share of around 22%.Castrol
India manufactures and markets a range of automotive and industrial
lubricants. It markets its automotive lubricants under two brands -
Castrol and BP. The company has leadership positions in most of the
 segments in which it operates including passenger car engine oils,
premium 2-stroke and 4-stroke oils and multigrade diesel engine oils.
Castrol India has the largest manufacturing and marketing network
amongst the lubricant companies in India. The company has 5
manufacturing Plants across the country, including a state-of-the-art
plant in Silvassa.The company reaches its consumers through a
distribution network of 270 distributors, servicing over 70,000.retail
outlets.Castrol India has clearly demonstrated its commitment to Indian
consumers for over 80 years, by offering its international range of high
performance products backed by the highest level of customer service.
The company has managed to gain sustainable competitive advantage
through:

 Distinctiveness driven by continuous innovation in all areas of

business
 Winning culture and a desire to excel Strong meaningful relationships
with all stakeholders

Castrol produce oils for the whole arena of automotive

lubrication, including motorcycle 2-stroke and 4-stroke engines, car
petrol and diesel engines, an extensive range of manual and automatic
transmission fluids, chain lubricants and waxes, coolants, suspension
fluids, brake fluids, greases, cleaners and maintenance products.

Castrol also produce products for agricultural machinery, plant,

general industry and marine engineering uses.

Castrol products were voted best/most trusted products in Switzerland

Gulf
GOI continues to sell Gulf-branded lubricants worldwide
through a network of country subsidiary companies. Some of these
subsidiaries franchise use of the Gulf brand to local independent
petroleum retailers ("affiliates"). Hence, Gulf-branded products and
filling stations can still be found in many countries.
 Several former GOC subsidiaries were sold to local owners
(e.g. Gulf Oil India to a partnership including GOI, Ashok Leyland and
the Hinduja group) who continue to use the Gulf name and insignia.
Gulf Oil India (GOIn) has raised the market profile of the Gulf brand in
recent years. It has introduced the whole range of Gulf international
products into South Asia through toll blending arrangements. In 1995,
GOIn set up its first blending plant at Silvassa (with technical assistance
from GOI) to produce Gulf-branded lubricants locally. These local
lubricants are produced to Gulf specifications and sell at a premium to
the products of wholly-local competitors. In 2002, GOIn merged with
the explosives manufacturer IDL to form Gulf Oil Corporation Ltd, an
Indian Company described as a member of the Hinduja Group. The
direct GOI interest in this company is limited to 20 percent of GOCL's
equity held by Gulf Oil International (Mauritius) Inc. GOCL claims to
have gained a six-percent share of the Indian automotive lubricant
market and a three-percent share of the industrial market. GOCL exports
to South Asian countries including Bangladesh, Nepal, Indonesia, the
Philippines, and Taiwan. It also provides Gulf product licensing and
technical support to local affiliates in the region including a major
manufacturing operation in China.

GOI still produces and sells a wide range of branded oil based
products including lubricants and greases of all kinds. These include
products for a variety of applications ranging from metal working oils to
refrigeration oils. Car engine oils include the Gulf Formula, Gulf MAX,
and Gulf TEC ranges. Heavy duty diesel engine lubricants include the
Gulf Supreme and Gulf Super fleet ranges. The sale of lubricants is one
area where product specification and quality assurance are vital
elements. Therefore, brand differentiation remains a feature of the
marketplace. Gulf's product catalog includes a well-developed portfolio
of 400 distinctive products.
 PART 5

METHODOLOGY
 Methodology

Data Source:
Data Sources are classified into:
1) Primary Data Source
2) Secondary Data Sources

1) Primary Data Sources:

Primary data is collected by direct interview with shoppers with the help of
Questionnaire.

2) Secondary Data Sources:

Classified into Internal Secondary Data and External Secondary Data.
i) Internal Secondary Data: Internal source of data represents the data this is
already available with the company.
Product profile, Information relating to plant locations etc.

ii) External Secondary Data: External sources of data include all external
information needed for the study.
News papers, Business Magazines, Web sites are some important sources of
information, which are used in this project work.

Sampling Process

Sample size - 86
Area covered - Jodhpur district
Duration - Two months
Growth of Delhi Transport

There were about 2.1 Million vehicles which were moving on the roads of Delhi in
the year 1993 & which grew to 3.6 Million by 2001& rose to 30 million in
2008.The number of licensee vehicles added to the Delhi roads has increased “ 10
fold from 2000 to 2008”. This shows that the Indian transportation industry is
continuously growing in nature & hence lube oil companies have got a good
opportunity to benefit from this rising market.

The following chart illustrates the continuous addition of traffic to Delhi is

road .

S.No Category No. of vehicles

1. Two Wheelers (Pvt.) 3721185
2. Four Wheelers (Pvt.) 1805085
3. Buses (LPV, MPV, HPV) 45858
4. TSR (Auto Rickshaw) 76040
5. Taxis 27667
6. Goods(LGV,MGV,HGV) 158429
7. Others 31842
Total 5865936
 Part 6

ANALYSIS AND
INTERPRETATION
 1. MARKET SHARE IN AGRICULTURE BUSINESS

MARKET SHARE IN AGRICULTURE MARKET

ELF PENNZOIL CASTROL OTHERS SERVO

17% 13%

13%

32%
25%

INTERPRETATION:

We surveyed 120 shops of agriculture markmarketet which include new grain mandi, motor
market and tractor market. W We found 13% customers purchase Pennzoil products. We
found 13% customers purcha
purchased
sed ELF,17% purchased Servo,25% . We found Elf and
Castrol
astrol are main competitor of Pennzoil oil in agriculture market. Wee found elf is the
leader in agriculture market and capture part (32%) of market in Jodhpur..
2. MARKET SHARE IN TWO WHEELER MARKET

MARKET SHARE IN TWO WHEELER MARKET

PENNZOIL ELF SERVO CASTROL OTHERS

13%

31%

21%

35%

INTERPRETATION:

We surveyed 60 shops of two wheeler market. we found 10% customers purchase Pennzoil
2T oil. We found servo and castrol are main competitor of Pennzoil 2T oil in two wheeler
market. we found servo is the leader in two wheeler market and capture part (28%) of 2T
market in jodhpur.
3. MARKET SHARE IN TRANSPORT MARKET

MARKET SHARE IN TRANSPORT MARKET

PENNZOIL ELF OTHERS CASTROL SERVO

4%

21%
34%

41%

INTERPRETATION:

We surveyed 30 shops of two wheeler market .we found 3% customers purchase Pennzoil
TRP. We found Elf and Castrolastrol are main competitor of Pennzoil oil in transport market
.we found elf is the leader in transport market and capture par
partt (33%) of transport market
in Jodhpur.
 QUANTITY OF OIL SOLD BY EACH BRAND MONTHLY

Bran Servo Castrol Veedol Gulf Elf Volvo Penn lalghoda Ipol others
ds line zoil
Sales 5525 7992 3830 8811 965 1245 1957 1917 2495 3050
in
liters
Sales 15 21 10 23 3 3 5 5 7 8
in %

QUANTITY OF OIL SOLD BY EACH BRAND MONTHLY

25

20
QUANTITY IN %

15
sales in %

10

0
il

l
o

f
lf
l

ol

rs
da

o
el
ro

zo
gu
rv

lin
ed

ip

he
st

ho
se

nn
o
ca

ve

ot
lv

lg
pe
vo

la

BRANDS
 ANALYSIS:

According to our survey it was found that amongst 86 respondents

taking quantity as consideration
23% of Gulf lubricant oil sold from 86 respondents. That means
8811 liters of oil sold by them monthly.
 21% of Castrol oil is sold monthly that means 7992 liters.
 15% of servo oil sales monthly 5525 liters.
 10% of veedol oil sales monthly 3830 liters.
 7% of ipol oil sales monthly 2495 liters..
 5% of Pennzoil & lalghoda oil sales monthly that mean
1957&1917 liters.
 3% of elf & Volvo line oil is sold monthly that means 1245 & 965
liters.
 8% of other brands that means 3050 liters.
 MAJOR CUSTOMERS

Two Thee Four

customers Wheeler Wheeler Wheeler H.C.W All Type
in % 120 60 70 730 20

MAJOR CUSTOMER

2% 12%

6%
Two Wheeler
7% Thee Wheeler
Four Wheeler
H.C.W
All Type
73%
 ANALYSIS:

According to our survey it was found that amongst 86

Respondents.
 73% of customers are heavy commercial vehicles like truck,
tractor, JCB, Hitachi, these are the major players for lubricants.
 12% of customers are two wheelers.
 7% of customers are four wheelers like car, jeep, etc.
 2% of customers are all type.

From this major customers for lubricants are heavy

commercial vehicles.
 INFLUENCY OF SHOPPERS ON CUSTOMERS PURCHASE

Influence Yes No
no of shoppers
in% 31 69

INFLUENCY OF SHOPPERS ON CUSTOMERS PURCHASE

80
69
NO OF SHOPPERS IN

70
PERCENTAGE

60
50
Series1
40 31
Series2
30
20
10
0
Yes No
INFLUENCE
 ANALYSIS:

According to our survey out of 86 respondents

 69% of shoppers are not influence to the customers purchase. Customers
which brand wants that brand only they will give to them. They cannot tell
as like you can purchase this brand, that brand.
 31% of shoppers are influence to the customers purchase. In which brand
they get more margin they influence more that brand.

INFLUENCY OF MECHANICS ON CUSTOMERS PURCHASE

Influence Yes No
no of
mechanics in% 84 16

INFLUENCY OF MECHANIC ON CUSTOMERS PURCHASE

90 84
80
NO OF MECHANICS IN

70
PERCENTAGE

60
50
Series1
40
30
20 16
10
0
Yes No
INFLUENCE
 ANALYSIS:

According to our survey out of 86 respondents

 84% of shoppers are told as mechanic influence more than of us.
His influence plays very much important role in market place.
Most of the customers are ask mechanic about purchase of
particular brand while purchasing the lubricant oil. Which brand he
told that brand will be purchased by customers.
 31% of shoppers told as no one can influence the customers
purchase. Customers themselves only purchase a particular brand
on the basis of their mind set. Most of the customers are keeping
single brand from many years so that they can use that brand only.

CUSTOMERS PREFERENCE AT THE TIME OF PURCHASE

Factors Quality Price Brand All

Customers
preference
in % 12 31 20 37
 CUSTOMERS PREFERENCE AT THE TIME OFPURCHAGE

CUSTOMERS PREFERENCE 40 37
IN PERCENTAGE 35 31
30
25
20
20 Series1
15 12
10
5
0
Quality Price Brand All
FACTORS

ANALYSIS:

According to our survey out of 86 respondents

 31% of customers are considered more on price while purchasing
the lubricant products. Most of the customers will purchase low
priced lubricants with quality & they expect good quality lubricant
within low price.
 20%of customers are considered brand name only while
purchasing the lubricant. Now Castrol & gulf are having very good
name in the market so customers purchase more these brands.
 12% of customers are considered Quality. If the product quality is
good then customers not consider above factors, they will directly
purchase with consideration of quality only.
 37% of customers are considered all above factors.

SHOPPERS PREFERENCE WHILE SELLING THE PRODUCT

Customer
Factors Margin satisfaction Both
in % 12 70 19
 SHOPPERS PREFERENCE WHILE SELLING THE
PRODUCT

80 70
70
PERCENTAGE
SHOPPERS IN

60
50
40 Series1
30 19
20 12
10
0
Margin Customer Both
satisfaction
FACTORS

ANALYSIS:

According to our survey out of 86 respondents

 70% of shoppers are considered more on customer’s satisfaction
while selling the lubricant products. They not much consider on
margin, they more concentrate on customer satisfaction.
 12%of shoppers are more concentrate on margin. In which brand
they get more margin they keep that brand much in their shop.
 19% shoppers are considered both customer satisfaction as well as
margin. According to them product should have good margin with
good quality then only we can ready to sale.
READY TO SELL ANY NEW COMPANIES LUBRICANT OIL

Ready to sell Yes No

No of shoppers
in % 14 86

READY TO SELL ANY NEW COMPANIES LUBRICANT OIL

100
86
NO OF SHOPPERS IN

80
PERCENTAGE

60
Series1
40

20 14

0
Yes No
READY TO SELL

ANALYSIS:

According to our survey out of 86 respondents

 86% of shoppers are directly not ready to sell newly entering
lubricants. First they will see the market situation of that product.
If the product position is good in the market then they will ready to
sale otherwise not.
 14% of shoppers are directly ready to sell newly entering
lubricants. Shoppers told as once we will test that new product
along with our daily selling product. Almost These peoples are
keeping more varieties in their shops.

READY TO SELL “VIPER” A BETA HYDROCARBON LUBRICANT

PRODUCT

Ready to sell Yes No

in % 78 22
 READY TO SELL VIPER A BETA HYDROCARBON LUBRICANT
PRODUCT

22%

Yes
No

78%

ANALYSIS:

According to our survey out of 86 respondents

 78% of shoppers are ready to sell newly entering Beta hydrocarbon lubricant
product Viper. These respondents are told as we are ready to sell your new
product but first we will see the market situation of that product. If the
product position is good in the market then we will ready to sell.
 22% of shoppers are not ready to sell newly entering Beta Hydrocarbon
Pvt.ltd. lubricant product Viper. Because these respondents are not ready to
keep more varieties. They will restrict only few brands so that they sale that
brand only.
 Recommendations

 Since Viper lubricant is a new product in Indian market so our marketing

team will concentrate more on advertisement of this new lubricant, also we
will strive to focus mainly on achieving maximum sales in first few months
of product launch by incorporating various combinations of marketing
mixes.

 Mechanic influence more on customers purchase so that company should

attract him by giving some gifts, coupons, and other different facilities.
Customers are very price sensitive so that your newly coming product price
should be reasonable.

 Most of the shoppers want credit facility to sale our new product. So for that
you should provide the credit facility to them. It will help to acquire more
market.

 With lubricants becoming a fast moving consumer goods and the brand
preference of the consumers witnessing a change, brand image plays a key
role in affecting the consumer’s decision to buy a lubricant. In a recent study
by Frost & Sullivan, it was found that vehicles owners’ decision to buy a
certain lubricant is affected by a garage mechanic, retail storeowner, or the
 advertisements. Hence, it becomes important to have a good brand name in
the market, which can affect the customer’s decision to buy a certain brand.

 With increasing number of players in the market, it is vital for the companies
to reach a wider segment of customers. The lubricants market in India is
very highly fragmented and complex. Public limited companies selling
primarily through petrol pumps manage to achieve a deeper penetration.
Most of the MNC’s have tied up with oil majors to market their brands like
Castrol with Escorts, Tata BP with Telco. This will help the private
companies to establish a wider access, brand awareness, as well as
preference.

 Private companies mostly sell their products through stockiest, dealers,

distributors, mechanics, and retail stores. Maximum sales are achieved
through mechanics and retail stores. Margins and discount schemes offered
to the storeowners and mechanics prompt them to sell and promote a
particular brand.

 The transformation from the administered pricing mechanism to free pricing

has increased the importance of providing cost effective product to the users.
Thus product costing and competitive pricing are key factors affecting the
market.

 In the recent past, the Indian lubricant market has witnessed a phase of
consolidation. Multinationals with better technology, brand name and
finances have the power to launch themselves on their own in the market.
However, with increasing number of competitors it is not possible for
 everyone to carve a niche in the market. This sector has witnessed
considerable amount of mergers and acquisitions. British Petroleum’s not so
recent acquisition of Castrol is one example. The Indian lubes market is a
combative market place and lubricant companies find themselves fighting a
tough battle for survival. In the OE sector also lubricant manufacturing,
companies are entering into collaborations with vehicle manufactures.
Martin Udyog, Hyundai Motors, Hindustan Motors, TAFE, Toyota, and
Skoda have entered into collaboration with IOC and Castrol for some of
their models.

 In the future, growth in the automotive lubricants industry will largely

depend on the overall performance of the economy. In the past one and a
half years, the scenario has improved with higher sales of commercial
vehicles and two-wheelers. However, in the future volume growth will be
affected because of use of better quality, long drain lubes. This will increase
the replacement cycle for lubes. In the shorter term, one will witness intense
competition in a slow growing market marked by a consolidation activity,
which has the potential to change the face of the lubricant industry. Given
the rising competition, success of a product would largely depend how well
it is branded and distributed.
Conclusion

Major customers are heavy commercial vehicles like truck, tractor, JCB,
Hitachi, etc.these vehicles are consumes more lubricant oil than the other vehicles.
Mechanic influence more than the shoppers to the customers purchases of
lubricant oil. His influence plays very much important role in market place. Most
of the customers are ask mechanic about purchase of particular brand while
purchasing the lubricant oil. Which brand he told that brand will be purchased by
customers.
Most of the customers are price sensitive so that they concentrating more
on price while purchasing the lubricant products. So that customers will purchase
low priced lubricants with quality & they expect good quality lubricant within low
price
Shoppers are considered more on customer’s satisfaction while selling the
lubricant products. They not much consider on margin, they more concentrate on
customer satisfaction
Most of the respondents are ready to sell the newly entering lubricant
product of Beta Hydrocarbon Ltd. after seeing the market condition of that
product. And also few respondents are wants coupons, discounts credit facility, and
they told as if these facilities are available to your newly entering lubricant then
only we are ready to sale your product otherwise not.