PROJECT ON HINDUSTAN PETROLEUM

Description
PROJECT ON HINDUSTAN PETROLEUM

BY- VAIBHAV GODSE UPES

Company - Brief
? Hindustan Petroleum Corporation

Limited (HPCL), a state-owned oil company of the Government of India located at Mumbai, India and is a Fortune 500 company of India listed at number 311. ? Company is under the control of the Government of India. It is one of the „Nav Ratnas? (nine jewels) ? Annual turnover of over Rs. 1,16,428 Crores and sales/income from operations of Rs 1,31,802 Crores (US$ 25,618 Millions) during financial year 2008-09, about 20% Marketing share in India.

Company Break -Up
Share Holding (%)
11%

4%

11% 51%

51.01% Government of India 23.22% Financial Institutes and Banks 11.05% FIIs 3.92% Mutual Funds

23%

10.8% Others (employees)

Source: HPCL

Company - Business
Refinerie s Storage & Distributi on Marketin g

HPCL
LPG Retail

Industrial & Governm ent Sales

Lubricant s

Marketing
The marketing operations of HPCL are divided into four strategic business units:Retail, Direct Sales, LPG and Aviation.

S.B.U Retail Direct Sales LPG Aviation

Source: HPCL site

Distribution Channel
HP Lube distribution

Distributors

Retail outlets

Bazaar shops

World and Indian lube market comparison
Indian lube market is 3rd largest in Asia and 6th largest in the world.
4%

COMPARISION

25%

REST OF THE WORLD ASIA INDIA 71%

Source: Kline group site

Indian Lube Scenario
Total demand for finished lubricants in India is estimated at over 1,600 kilo tones. The Lube market consists of two major segments, automotive and industrial.
LUBE MARKET SHARE
AUTOMOTIVE SEGMENT INDUSTRIAL SEGMENT

40%

60%

Source: Kline group

Automotive Engine Oil
CNG PCMO Oils 6% 2% 4- stroke 7%

SHARE

2- stroke 14% Diesel engine oil 71%

Lubricant Business
? HPCL Lube market share is around11%. ? The HP Engine Oils product range covers over 300

brands of lubricants, greases and specialties catering to the automotive as well as the industrial sector.
? HPCL has six lube blending plants at Mumbai,

Kolkata, Chennai and Silvassa.

Source: HPCL site

Research- Focus
? Lubricant brands selected for the research was

on the basis of maximum selling brands. The three segments include- Diesel engine oil, passenger car motor oil and four stroke oil
Lube Segme nt Diesel Engine Oil Passenger car motor oil 4T

Brand Laal Milcy Cruis Cruis Racer s Ghod Turbo e e 4 a Classi c

Research & Survey Work
? Problem Definition:

Success Determinant Of Selected Lubricant Brands“Which factors are dominant in deciding the success of a lubricant brand”

? Research Design: ? Here, at first exploratory research was Conducted to

gain the insight into the problem. ? The exploratory research was conducted through expert opinion- Within HPCL a total of 6 opinions were taken. ? These opinions helped in short listing the determinants for preparing the questionnaire for Bazaar shops and Retail outlets. ? The Exploratory research is then followed by Conclusive Research done through surveys.

Sampling
Sampling method: Judgmental Sampling- Brand managers Convenience Sampling- Bazaar shops & Retail Outlets. Sample size: Expert:-6 Bazaar:- 92 Retail outlets:- 18

Field work and data collection:
Targeted respondents were interviewed- Bazaar shops and retail outlet owners. Area covered Delhi, Jaipur, Pune and Mumbai

Field data For Bazaar shop- DEO
Laal Ghoda
90 80 70 77.3 79 60 67 61.5 65.7 63.7 50 40 30 20 10 17.1 2 0

47 42 0 0 Laal Ghoda

DEO
Milcy Turbo
100 90 80 70 60 50 40 30 20 10 0 84 80.7 86

70 74

73 67

55
28 23 0 0

Milcy Turbo

PCMO
Cruise
120 100 80 60 40 20 0 96 100 92

83 58 64 31 12 0

79

87

33.3 Cruise

PCMO
Cruise Classic
120 100 80 60 40 20 0

100 96 92

83 80

68 28.4 12.4 0

79

88

33.3
Cruise Classic

4T
Racer 4
120 100 80 60 40 20 0 97

88.5

88.5 82.7 80 58 20 11.1 0

83 77.5 55 Racer 4

Conclusion/ Recommendations For Bazaar Shops- Key Determinants
Laal Ghoda Brand name Brand image Quality of parent brand Milcy Turbo Brand name Brand image Quality of parent brand Cruise Brand name Brand image Quality of parent brand Cruise Classic Brand name Brand image Quality of parent brand Racer 4 Brand name Brand image Quality of parent brand

Positioning of Positioning of brand in the mind brand in the of consumer mind of consumer
Proper and longer support Proper and longer support

Positioning of brand in the mind of consumer
Quality of pack

Positioning of brand in the mind of consumer

Positioning of brand in the mind of consumer

Proper and Proper and longer support longer support Quality of pack Brand promotionBrand promotionATL Brand Promotion-

Variety of packs

Brand promotion-ATL Brand Promotion-

Brand promotionATL Brand Promotion-

Field data for retail outlets- DEO
Laal Ghoda
100 90 80 70 60 50 40 30 20 10 0 81 81 90.9 72.7 63.3 54.5 11 18.18 0

45.45 36.6 0 Laal Ghoda

DEO
Milcy Turbo
100 90 90.9 90.9 80 90.9 90.9 81 70 72.7 72.7 60 63.3 50 40 45.4 30 20 27.2 10 0 0 0

Milcy Turbo

PCMO
Cruise
90 80 70 60 50 40 30 20 10 0

83.3 83.3
66.6 66.6

83.3 83.3 50
33.3 0 Cruise

50

50

50

PCMO
Cruise Classic
90 80 70 83.3 83.3 60 66.6 66.6 50 50 50 50 40 30 33.3 20 10 0

83.3 83.3
57

0

Cruise Classic

4T
Racer 4
90 80 70 60 50 40 30 20 10 0

83.3
66.6 66.6

83.3 83.3

83.3
66.6

50
33.3 16.6 33.3 0 Racer 4

Conclusion/ Recommendations For retail outlets- Key Determinants
Laal Ghoda Brand name Brand image Quality of parent brand Milcy Turbo Brand name Brand image Quality of parent brand Cruise Brand name Brand image Quality of parent brand Positioning of brand in the mind of consumer Brand promotionATL Brand PromotionBTL Cruise Classic Brand name Brand image Quality of parent brand Positioning of brand in the mind of consumer Brand promotionATL Brand PromotionBTL Racer 4 Brand name Brand image Quality of parent brand Positioning of brand in the mind of consumer Brand promotionATL Brand PromotionBTL

Positioning of Positioning of brand in the mind brand in the of consumer mind of consumer Proper and longer support Proper and longer support Quality of pack

Brand promotion-ATL
Brand

Other Recommendations
For DEO ? Redemptions of the schemes on time. ? Aggressive media promotion. ? Increase visibility of the brand. ? Introducing e-procurement.

For PCMO ? Strategic Alliance: More tie-ups with OEMs, which would help in increasing the sale at retail outlets through service stations. ? Introducing “free service programs at retail outlets”. ? New Distribution system: Making product available at OEM workshops and service stations. ? Relationship marketing.

For FOUR STROKE ? Below the line promotion should be aggressivethrough mechanics. ? Awareness among mechanics for the brandthrough schemes. ? Sponsorships- Sponsoring the events like sports, T.V. program ( MTV roadies) would increase publicity. ? Celebrity branding. ? Introducing lube dispensing machines at retail outlets.

THANK YOU



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