startagies to maximise retailers enrollment to mak lubricants

ACKNOWLEDGEMENT
First of all I would like to thank my “Industry Guide

Mr.M.SUDHAKAR, Territory Manager (lubes), Bharat Petroleum Corporation
Limited, Hyderabad” for giving permission and helping me a lot in the

formation of this project. He was always a constant source of inspiration during all the time of project. His valuable feedbacks, guidance & motivation helped me to accomplish my task. Secondly I would like to thank Mr.B.Raghunatha Rao, Asst Manager
– Mktg (Lubes), Bharat Peroleum Corporation Limited, Hyderabad on the

completion of my project. He motivated me throughout my project & made me walk all the steps of this project, intricately and helped me in formulating the entire framework of this analytical research. I also express my sincere thanks to DR.ARYASRI, Director, SMS for introducing the course, and providing me continuous encouragement throughout the project. A word of thanks to all my respondents who spared their valuable time from their busy itinerary in filling up the questionnaires and made the project complete. In the end but not the least I would like to thank each person individually who has devoted their valuable time in the completion of my survey data sheet.

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EXECUTIVE SUMMARY
The project title was “STRATEGIES TO MAXIMISE RETAILERS ENROLLMENT TO MAK LUBRICANTS AND HOW TO RETAIN RETAILER LOYALITY TO MAK LUBRICANTS IN HYDERABAD MARKET”. The research work was divided into two phases for reporting & analyzing the factors respectively. Each phase is being described as follows:-

Phase 1
Phase 1 was the starting point of research work & its duration was about 1 week. Before going out for primary research work, I analyzed the Lubricant industry with the help of internet & collected some useful prospects about the industry. In the primary research work, first of all I met different category of persons (stakeholders) who are linked with the Lubricants. These persons/stakeholders were as follows:1 2 3

1) Distributors 2) Sales Executives 3) Shopkeepers selling Lubricants 4) Mechanic Personnel

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Then I had carried an exploratory survey for each stakeholder without drawing any questionnaire. This random sample helps me to understand the various factors affecting the selling decision of Lubricants. But the information which I got was raw & hence I moved on to the second phase for a systematic review of the enlisted factors gathered from the exploratory survey.

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Phase 2
After understanding the enlisted factors, I prepared the questionnaire, covering each & every aspect about selling-behavior of Lubricants. I prepared questionnaire to retailers from the point of view to get some useful information about them. The sample data collection from all the retailers has taken duration of around 2 weeks. I covered 55 retailers from major parts of the Hyderabad city. The remaining days of my research work were used to draft out the studied factors on the word file & give it the shape of a professional project report.

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Brief Analysis of Report
Overall, from the collected feedback, the analysis stated that “Quality” is the prime factor which is affecting the selling decision of LUBRICANTS. Therefore in order to increase the sales they have to increase the perceived value in the minds of consumers about the Quality parameter of “MAK”.. Moreover by using proper communication channels the quality variable factor can be properly promoted across the consumers & hence will build trust in the minds of consumers about the quality of MAK (like Castrol is doing in its advertisement). The other factor which is affecting the selling decision of lube oil is the market demand of the product. The Mak brand has to increase the market demand in the customers by choosing proper communication channel. The other factor which is affecting the selling decision of lube oil is the price of a particular brand. The brand has to justify the price structure to its users. So, in order to increase the perceive value of MAK the company can offer discounts or complimentary gift items along with the bottle of lube oil. The majority of consumers like discount with the oil as compared to the gift items. So the company should make proper manipulation in its price structure to satisfy the perceived value to its customers. The other major factor which is affecting the selling decision of lube oil is the mechanic variable. Mechanics help a lay man to judge good quality oil. So many users buy oil on the recommendation of Mechanics. So the company should try to develop a good perceive value in the minds of mechanics. The last variable which is also important in the selling decision of lube oil is the recommendation from the shopkeepers & fellow friends (Word of Mouth). The Company should properly promote its Lube oil in order to create a buzz about the MAK in the market & also to improve the perceived value in the minds of shopkeepers. The methods to increase the perceive value of MAK in the minds of consumers is discussed briefly inside the report.

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Introduction

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Introduction
Need for the research:
Bharat Petroleum Corporation Limited is marketing its lube oil under the brand name of “MAK” all across India. MAK has got many type of lube oil (e.g.:-coolant, grease etc) incorporated under its umbrella name. MAK has launched its retailing process in Hyderabad retailer’s market only four years ago. Within this short span of time MAK lubricants did well in this retailing process. But still there is large scope of taking it to next level. Mak lubricants should focus more on extending its process where lagging behind. Mak lubricants have got the potential and competitiveness in its products. So, to analyze this (where the things or marketing strategy went wrong), an extensive research work is needed. Also recommendations are to be derived out on the basis of the research work to formulate new marketing strategy of “MAK”.

Research Problem
The research problem was to analyze the retailer’s intention in buying a particular brand. For this analysis to be carried out, they have to work on the various factors which are affecting the selling behavior of Engine Oil. These factors will be helpful in formulating new ideas or recommendations for the growth of company. Implementation of the following ideas will help in increasing the sales of MAK.

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Research Objective
? “To Study the various factors affecting the Lube industry (mainly in the market of

Hyderabad) from the Secondary Research.
? To analyze all the important properties & strategies in selling and buying the

lubricants.
? The awareness of “MAK” lubricant among the retailers ? To carryout comparative analysis of all the major brands of lubricants.

? To undertake exploratory survey of lubricant market of Hyderabad with the help of retailers, distributors, sales executives, mechanics.

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An Insight into the Research

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An Insight into the Research
Scope of the study
The research work will be totally concentrated inside the Hyderabad region. The Research work will cover the respondents from the retailers selling lubricants.

Research Methodology
This research work is done to first find out the factors which affect the buying decision of engine oil & secondly on the basis of survey analysis, formulate strategies to maximize the retailer’s enrollment to MAK lubricants and to retain Hyderabad loyalty.

Type of research
The research work conducted is exploratory & descriptive in nature. This research work is used to investigate the factors which are affecting the buying decision of engine oil & marking perception of all stakeholders about various Lubricant brands available in market. It is an exploratory and descriptive research, as it has using both the secondary data and surveys respectively.

Sources and tools of data collection
a) Primary Data The data was being gathered through a survey based research approach with the help of questionnaire. The questionnaire was made in English but it was translated in Telugu language for the convenience of the respondents. As the research work of writing & asking question was totally carried out by one person only, so human error related to recording of responses cannot be totally ruled out. b) Secondary Data The source of secondary data was the articles on the lubricants mentioned on the internet. The sources of all the sites are mentioned in bibliography & under the subscript where ever it is used in this report.
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Sampling Techniques
Random sampling technique has been used, as the respondents are scattered all over the Hyderabad region & the population of respondents are homogeneous in nature.

Sample Size
The sample size for this survey of retailers is 55. Since in this survey is upon the retailers, A questionnaire is designed to carry out the research upon them.

Limitation of the Research
There were few limitations in this research work. The sample covers all the major portions of Hyderabad, but still it was not able to cover the full width of Hyderabad. This limitation is because of the time span. So, there is a much broader need to increase the sample size to get more concrete results. Also the secondary data on Lubricant industry and marketing, available on internet is not sufficient. There is no where mentioning of % wise market share of lubricants and there marketing strategies in Hyderabad. This data was needed to check the % error in the report. So, error in report cannot be reported which is a big limitation of the given analysis. One of the limitations was that, I was the only person involved in reporting the data. Therefore, asking of same question from so many people can register some error in reporting the data which is called human error. Lack of interest and enthusiastic responses may have allowed biases in this report in the form of “NON-RESPONSIVE ERROR”. Correctness of this report is restricted and limited by the degree of authenticity of data collected and sincerity and honesty of respondents.
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Variables affecting sales and distribution of Lubes:
1. Number of consumers Types of consumers: ? Scooters and motorbikes
? Three vehicles and four vehicles

? LCVs and HCVs ? Industrial heavy machines All the above categories are huge in numbers, thus it is necessary to use intermediates. And the distribution channel has got many layers.

2. Geographic dispersion of consumers ? POP points are: ? Petrol pumps ? Automobile spares shops by side of highways and roads ? Hardware stores POP points are geographically dispersed across India including rural and urban areas. Since above mentioned requirements points are large and geographically dispersed, MAK lubricants needs to have very good connectivity through a large and robust channel. And thus transport and logistics needs to be very efficient. 3. Higher frequency of purchase ? For automobiles frequency is high and volume per purchase is low. ? Consistent demand by industrial machines. Frequency is low but volume is high Per purchase.
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4. Tendency to postpone purchase ? Tendency to postpone purchase is possible to an extent. Because user thinks without change of lubes he can use machine/automobile for some more time. 5. Level of familiarity/ knowledge product about the product
? Users are familiar of benefits of product. Thus importance of field force is limited

to the extent of Making the product available. 6. Degree of brand loyalty ? Brand loyalty for product is medium. Many times decision is taken by service provider and machine maintenance person. Thus margins to channel member are important and POP merchandizing is important. 7. Purchase on impulse ? No, purchase on impulse, the product is bought only when it is required. 8. Level of involvement ? Level of involvement is medium. Thus supply of information is not critical to consumer. 9. Purchase as a basket of goods ? Yes. It is bought with other automobile accessories and spares along with refueling of vehicle. Thus the product has to be available at all such points. 10. Speed and complexity of decision Making process
? Speed of decision Making process is high and complexity is low. Thus importance

of expertise of field force is low. 11. Presence of expert influencer in the decision Making process

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? Mechanics are expert influencer. Thus, knowledge and awareness to mechanics is important as they may influence the buying decision of the consumer. 12. Element of crisis purchase exists ? Yes, so the product has to be available. 13. Element of risk aversion exists
? Yes, user may think usage of bad brand may damage Hyderabad vehicle thus;

channel member may un-sell the brand. 14. Perishability ? No the product is not perishable, thus dimension of speed in transportation & logistics is not important. 15. Time band associated with the purchase of the product ? Generally usage is consistent. Thus last-mile supply need not be very critical. 16. Fungibility
? The product is low on value and small in volume thus it can’t replace a channel

member to make product available. 17. Importance of search costs ? Search cost is low as consumer does not spend much time on searching information about product. 18. Degree of customization possible ? No. The product is highly standardized and cannot be customized for the end consumer. 19. Negative or positive reinforcing
? Neither negative nor positive reinforcing. As consumer uses it to avoid theyar and

tear of machine also they know that it increases mileage of the machine. Ambience is not important while purchasing the product. 20. Value / volume ratio of the product ? Value/ volume ratio is low thus there is transport cost sensitivity and importance of cost effectiveness is required.

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THE INDIAN LUBE INDUSTRY

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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 to 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,

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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 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 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.

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?. The overall Ratio of automotive/ industrial lubricants is around to be 65:35.

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Automotive lubricants are further divided into diesel lubes, petrol lubes& gas lubes.? Diesel lubes comprise 70 percent of the market „and petrol based lubricants & gas 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 & in 58 percent in terms of market share”. Gear oils, transmission fluids, hydraulic brake fluids, and engine coolants contribute to the balance. It is being estimated that by year 2006 the overall Indian lube oil industry will be 1.2 MMTPA which is being a market value of more than US $ 1 Billion. Also India is the Seventh largest Lubricant market in the world& Sixth largest automotive market in the world. The lube market will Expected to Grow at a Rate Of 3% in 2006-07.

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COMPANY PROFILE

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BRIEF: Bharat Petroleum Corporation Limited (BPCL) is one of India’s largest PSU companies, with Global Fortune 500 rank of 287 (2008). Its corporate office is located at Ballard Estate, Mumbai. As the name suggests, its interests are in petroleum sector. It is involved in the refining and retailing of petroleum products. Bharat Petroleum is considered to be a pioneer in Indian petroleum industry with various path-breaking initiatives such as Pure for Sure campaign, Petro card, Fleet card etc.BPCL's growth post-nationalization (in 1976) has been phenomenal. One of the single digit Indian representatives in the Fortune 500 & Forbes 2000 listings, BPCL is often referred to as an “MNC in PSU garb”. It is considered a pioneer in marketing initiatives, and employs “Best in Class” practices. Bharat Petroleum Corporation Limited (BPCL) specializes in refining, processing, and distributing petroleum products. It offers petrol, diesel, aviation fuel, liquefied petroleum gas (LPG) and lubricants. The company primarily operates in India, where it is headquartered in Mumbai and employs about13, 968 people. The company recorded revenues of INR1, 112,431 million (approximately $27,632.8 million) in the fiscal year ended March 2008, an increase of 13% over 2007. Its net profit was INR17, 696 million (approximately $439.6 million) in fiscal 2008, a decrease of 17.5% compared to 2007. HISTORY: The 1860s saw vast industrial development. A lot of petroleum refineries came up. An important player in the South Asian market then was the Burmah Oil Company Ltd. Though incorporated in Scotland in 1886, the company grew out of the enterprises of the Rangoon Oil Company, which had been formed in 1871 to refine crude oil produced from primitive hand dug wells in Upper Burma. The search for oil in India began in 1886, when Mr. Goodenough of McKillop Stewart Company drilled a well near Jaypore in upper Assam and struck oil. In 1889, the
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Assam Railway and Trading Company (ARTC) struck oil at Digboi marking the beginning of oil production in India. While discoveries were made and industries expanded, John D Rockefeller together with his business associates acquired control of numerous refineries and pipelines to later form the giant Standard Oil Trust. The largest rivals of Standard Oil - RoyalDutch, Shell, Rothschilds came together to form a single organization: Asiatic Petroleum Company to market petroleum products in South Asia. In 1928, Asiatic Petroleum (India) joined hands with Burmah Oil Company - an active producer, refiner and distributor of petroleum products, particularly in Indian and Burmese markets. This alliance led to the formation of Burmah-Shell Oil Storage and Distributing Company of India Limited. A pioneer in more ways than one, Burmah Shell began its operations with import and marketing of Kerosene. This was imported in bulk and transported in 4 gallon and 1 gallon tins through rail, road and country craft all over India. With motor cars, came canned Petrol, followed by service stations. In the 1930s, retail sales points were built with driveways set back from the road; service stations began to appear and became accepted as a part of road development. After the war Burmah Shell established efficient and up-to-date service and filling stations to give the customers the highest possible standard of service facilities.

FROM BURMAH SHELL TO BHARAT PETROLEUM
Burmah Shell Refineries was incorporated as a company in 1952, and established a refinery in Mahul .On 24 January 1976, the Burmah Shell Group of Companies was taken over by the Government of India to form Bharat Refineries Limited. On 1 August 1977, it was renamed Bharat Petroleum Corporation Limited. It was also the first refinery to process newly found indigenous crude Bombay High, in the country. BHARAT PETROLEUM “then and after” The company installed microprocessor based digital integrated distributed control systems in catalytic reformers and introduced a new solvent unit to replace the pneumatic control system in 1993.The company also installed an advanced control system for its catalytic control unit. The company then incorporated a joint venture company, Bharat Oman Refineries, in 1994.There after BPCL signed a memorandum of understanding (MOU) with Bank of Baroda in 1995 to launch the first co-branded credit card in the country. In 1998, BPCL entered into a joint
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venture with Petronet (India) for the construction of a 308 km pipeline from Kochi in Kerala to Karur in Tamil Nadu. The following are a few achievement achieved by BHARAT PETROLEUM CORPORATION LTD:
? McDonald's made an agreement with BPCL to open and run restaurants at

selected petrol pumps across the country in 2000. Quicky's, the global coffee chain, follotheyd suit in 2001, and began ton offer its services at BPCL stores.
? BPCL launched Speed '93, its own brand of petrol, in 2003. In the following year,

BPCL diversified its operations. The company entered into a business to business e-commerce arrangement with IDBI Bank to provide an automated payment and purchase process to BPCL's corporate and industrial clients. The company also tied up with Tata Consultancy Services to provide medical advisory and counseling services at Ghar, the highway retailing initiative of BPCL.
? Bharat Petroleum Corporation Limited and GAIL formed another joint venture

company, Central UP Gas, for implementation of City Gas Projects in Hyderabad and Kanpur in 2005. ? In 2006, the Government of the Sultanate of Oman signed an Exploration and Production Sharing Agreement (EPSA) for the on land exploration block 56 with the consortium comprising BPCL, Oilex (Operator), Hindustan Petroleum Corporation Limited, GAIL India and Videocon Industries. In the same year, the company acquired a 20% interest in an exploration block in Australia. ? In September 2008, BPCL and Videocon Industries Ltd acquired 50% stake in Brazil's EnCana Brasil Petroleo Limeade. ? BPCL and GAIL (India) Limited announced to form a joint venture company, God’s Own Gas Company, for marketing compressed natural gas (CNG) and piped gas in Kerala and Karnataka, in March 2008. ? In April 2008, BPCL announced the formation of joint venture Company in consortium with other companies,

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MAJOR PRODUCTS AND SERVICES:
Bharat Petroleum Corporation Limited (BPCL) refines, stores, markets and distributes petroleum products. The company’s key products and services include the following: PRODUCTS: I. Petrol II. Diesel III. LPG IV. Gasoline V. Kerosene VI. Lubricants VII. Aviation fuel VIII. Fuels and solvents SERVICES: I. Convenience stores II. ATMs III. Car washes IV. Free air and water V. Lubricant top-ups VI. Energy audits VII. E-banking services
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VIII. Consultancy and technical services IX. Online ordering

MAK LUBRICANTS
Bharat Petroleum offers a full range of Automotive Engine Oils, Gear Oils, Transmission oils, Specialty Oils and Greases. The correct usage of these Lubricants of right quality ensures prolonged and trouble free vehicle operation, providing maximum benefits to the users of present day modern vehicles. Overview In line with the economic liberalization in India, Lubricants was the first downstream Petroleum product to be totally deregulated with effect from 1991. Since then a large number of players - National, MNCs as well as Global Players - have entered the Indian Lubricants market. Despite operating in a totally competitive environment, BPCL's Lubricants SBU has been registering a growth in lubricant sales continuously over the past couple of years. In 2007-08, an overall growth of 10% has been registered, with a healthy turnover of Rs. 1680 crores (approx USD 350 million). In 1998, BPCL re-launched their Lubricants in new attractive packs, mainly in Automotive category with three major brands depicting each segment- Mak for Diesel Engine oils, Automol for Petrol Engine oils and Glide for Two/Three wheelers(mainly 2T then). In the year 2003, BPCL decided to go for Umbrella Brand-MAK Lubricants, in subsequent years, branded all their industrial grades with MAK. Retail Channel BPCL’s strength is their retail outlet network across the country, this comprises of about 7530 retail outlets. Their Lubes SBU have undertaken various initiatives in coordination with Retail Business to grow their sales volume through this channel. Initiatives undertaken by the SBU are setting up of Hero Honda City Works, Tata
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Authorized Service Station (TASS) and installation of Quick Oil Change Machines at retail outlets.

Bazaar Channel With a network of 190 PLDs, 600 MAK Garages and MAK Mobile Vans established to improve reach and penetration in rural and unrepresented areas of MAK Brand, the SBU could reach to the last mile as far as the customers are concerned. They continue to improve their brand visibility across the network and thereby increasing their market share across the segments. Industrial Channel Large number of prestigious customers has been added during the year to their already existing prestigious customer list. They are also suppliers of initial engine oil fill to TATA Motors, TVS, and Hero Honda etc. They also hold respectable share of Railway and defence business. Infrastructure The Lube Plants at Wadilube (Mumbai), Budge Budge (Calcutta), Loni (Delhi) and Tondiarpet (Chennai) have organized themselves as close-knit teams to maximize levels of production and dispatch. The Plant at Wadilube is an ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007 certified Plant. As part of the ongoing improvements in packaging, the new series of packages developed entirely in-house have been introduced. Other initiatives To support the business initiatives, a major thrust has been given to improving BPCL’s product offering and increases its market presence. The new R&D Center at Sewree, Mumbai, has developed a number of new products in the automotive and
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industrial categories. Towards higher visibility, substantial investments have been made in revitalizing the brands through product quality and package improvements. The entire distribution system has been revamped with the formation of Supply Chain Management department to ensure that products are more conveniently available and distinctively visible in the market price. Exclusive branded Lube Shoppe's have been opened all over the country to improve their reach, as they innovative & unconventional methods are being used to create brand awareness especially in the diesel oils segments. Another major initiative has been to reach the products to the rural population through the tie-up with ITC – e-choupal network which has spread the MAK brand across the country in rural areas also. Currently this network is available in Uttar Pradesh, Maharashtra, Rajasthan, and Madhya Pradesh and is likely to extend to other states also shortly. MAK also embarked on another thrust area of enrolling garages across the country in the network of “MAK Garages” there by providing standardized service across the network. This initiative not only provides opportunity for the garages to enhance their business opportunity but also provides an assurance to the end customers that their vehicles are getting the right kind of lubricants. Brand Ambassador To promote MAK brand among the youth and improve the brand visibility, MAK signed up M.S.Dhoni as Brand ambassador in the year 2006. The rise of MAK brand in the minds of the consumers as they’ll as market share coincided with the rise of Dhoni also, who today is the Youth icon of the year and also the Captain of the Indian team for all versions of the game – like MAK being the “Champion of All Engines”. BPCL is confident that it will continue to Make substantial and sustained efforts with appropriate investments, synergies business between channels, improve quality and quantity standards, invest in R&D for new product development and aggressively build the brands to result in maximizing the value addition for both the business and its customers.
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BRIEF ABOUT THE COMPETITORS
THE FOLLOWING ARE THE TOP FIVE COMPETITORS OF BHARAT PETROLEUM CORPORATTION LIMITED:

INDIAN OIL CORPORATION LIMITED
Indian Oil Corporation is an Indian public-sector petroleum company. It is India’s largest commercial enterprise, ranking 116th on the Fortune Global 500 listing (2008). It began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was formed in 1964, with the merger of Indian Refineries Ltd. Indian Oil and its subsidiaries account for a 47% share in the petroleum products market, 40% share in refining capacity and 67% downstream sector pipelines capacity in India. The Indian Oil Group of Companies owns and operates 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tons per year. On 30th June 2009 Indian Oil will complete 50 years of its existence and a series of events are being planned to celebrate its Golden Jubilee Year. Overview Indian Oil operates the largest and the widest network of fuel stations in the country, numbering about 17606 (15557 regular ROs & 2049 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It reaches Indane cooking gas to over 47.5 million households through a network of 4,990 Indian distributors. In addition, Indian Oil's Research and Development Centre (R&D) at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad. Subsequently, Indian Oil Technologies Limited - a wholly owned subsidiary, was set up in 2003, with a vision to market the technologies developed at Indian Oil’s Research and Development Centre. It has been modeled on the R&D marketing arms of Royal Dutch Shell and British Petroleum.

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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 the name of 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.

Valvoline
Valvoline has successfully completed a decade of its presence in India. The company has established itself as the fastest growing lubricant company in India. Valvoline has set an ambitious revenue growth target for the year 2009 even in very challenging market conditions. The company has taken many new initiatives to increase its share in the highly competitive lubricant market. “In a declining market scenario, Valvoline has managed to grow in all its core segments, namely, diesel engine oil, passenger car segment and two-wheeler segment. They have been increasing their market share in all segments”. Valvoline Cummins Ltd. is a joint venture between

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Ashland Inc., USA, and Cummins Sales & Services (India) Ltd., a wholly-owned subsidiary of Cummins India Ltd. Valvoline is today the fastest growing lubricant marketer and producer of quality branded automotive/industrial products. The products offered in the Indian market include automotive lubricants, transmission fluids, gear oils, hydraulic lubricants, automotive filters, specialty products, greases and cooling system products. The company clocked a turnover of Rs. 470 crores in 2008. Valvoline has been in India for just over a decade but it has undoubtedly established itself as the fast growing lubricant brand in the market. Currently 14% of its total business comes from Motorcycle oil, 6% comes from passenger car segment and close to 58% comes from diesel engine oil in the aftermarket.

HINDUSTAN PETROLEUM CORPORATION LIMITED.
HPCL (Hindustan Petroleum Corporation Limited) is a Fortune 500 company, with an annual turnover of over Rs 1,03,837 Crores ($ 25,142 Millions) during FY 200708, 16% Refining & Marketing share in India and a strong market infrastructure. Corresponding figures for FY 2006-07 are: Rs 91,448 crores ($20,892 Million). The Corporation operates 2 major refineries producing a wide variety of petroleum fuels & specialties, one in Mumbai (Theyst Coast) of 5.5 MMTPA capacity and the other in Vishakhapatnam, (East Coast)with a capacity of 7.5 MMTPA. HPCL holds an equity take of 16.95% in Mangalore Refinery & Petrochemicals Limited, a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. In addition, HPCL is progressing towards setting up of a refinery in the state of Punjab in the joint sector. HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards With a capacity of 335 TMT. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. The vast marketing network of the Corporation consists of Zonal offices in major cities and over 91 Regional offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Aviation Service Stations, LPG Bottling Plants, and Inland Relay Depots & Retail Outlets. The Corporation over the years has moved from strength to strength on all fronts. The refining capacity steadily increased from 5.5 million tonnes in 1984/85 to 13.70 million
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metric tonnes (MMT) presently. On the financial front, the turnover grew from Rs. 2687 crores

Shell India
The Royal Dutch Shell Group (‘Shell’) employs over 119,000 people worldwide and is a leading energy company in the world. Shell has five core businesses: Exploration and Production, Oil Products, Downstream Gas and Power, Chemicals and Renewables, with operations in more than 140 countries across the world. Shell registered revenues of US$ 268 billion in 2004, Making it the fourth largest corporation in the world and with profits totalling US$ 18.18 billion, it is also the world’s second most profitable business. The Shell Group’s presence in India dates back about 75 years, when it began operations in the country as the pioneering oil distribution company, through Burmah Shell in 1928, an alliance between the Burmah Oil Company and Asiatic Petroleum (India). Shell returned to India in 1993 with the incorporation of Bharat Shell, a 51:49 joint venture between Shell and Bharat Petroleum Corporation Limited. In 1996, Shell India Private Limited, a 100 per cent Shell-owned Company, was incorporated to oversee the development of businesses in petroleum, natural gas, petrochemicals and renewable energy. Shell’s present interests in India cover natural gas (LNG), LPG (liquefied petroleum gas), lubricants, solar energy and retail fuels. Shell is seeking to set up PMB plants in Bengal and Maharashtra to support the bitumen needs of a growing infrastructure sector in India. Shell’s US$ 650 million Hazira Port and LNG Terminal, in Surat district, Gujarat, is regarded as a key FDI project, and is building critical gas infrastructure for India. Shell is the only international company to be granted Government of India approval for the retail fuels business in India. Shell has 9 registered companies in India.
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THE LUBRICANT MARKET
The global lubricant market is generally competitive with numerous manufacturers and marketers. Overall the stern 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 specifications are API SM and API CJ. Higher second letter marks better oil properties, like lower engine they are 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 (O.E.M) 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
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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 the 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 with higher specification MB
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228.3 may be used twice as long, oil of MB 228.5 specification 3x 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 SAExxW 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
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promise return in lower wear, specific fuel consumption or longer drain intervals. (Expensive machinery, un-affordable downtimes.)

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.

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Primary Research on Retailers
The primary research work was done on the shopkeepers to understand the perceived value of different brands, factors affecting the buying behavior & overall market of Lubricant market. ”The sample used for this research work was about 55 retailers. The primary motive to cover retailer was mainly due to the fact that he is also one of the stake holders in the growth of sales of a company. This sample was taken randomly from all the major areas of Hyderabad which include Balanagar, Ameerpet, Ramkothi, Attapur, Moosapeta x roads. A questionnaire was designed consisting of 22 questions (Given in Appendix) to understand the overall Market variables mentioned above.

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Retailer Survey
1) Number of years does the retailers are in lubricant business
The first question in the in the questionnaire for retailers is to know how long does the retailers are in Lubricant business. The findings and conclusions are as follows:

Findings
1

The above chart shows that a maximum number of retailers are in the lubricant

business for above 10 years. Also nearly 10% are in this business above 20 years. and very few (nearly 6%) are entered into this business recently.

Conclusion
This shows that maximum retailers in Hyderabad market had great experience in selling the lubricants and they had very much knowledge in all lubricant brands.

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2) Average lubes sales per month:
The 2nd question in the Questionnaire is how much quantity of lubes a retailer sells per month. The result is as follows:

Findings
The above chart shows that in Hyderabad lubricant market, average lubes sales per month in different volumes is almost equal in different categories. The numbers of retailers selling 100 to 500 ltrs (low volume sellers) are 32.7%, where as retailers selling greater than 2000 ltrs (high volume sellers) is 30%.

Conclusions
This shows that in Hyderabad lubricant market retailers selling different volumes of lubes are almost equal. And hence one needs to concentrate equally upon all types of retailers.

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3) Mostly sold category of products:

The next question in the questionnaire is what category of products you are selling maximum? The result is as follows:

Mostlysold categ of products ory
7.27% 27.30% 49% 2/3 wheel engine oil 4 wheel engine oil diesel engine oil 23.60% Industrial oil

Findings
The above chart shows that in Hyderabad lubricant market, the mostly sold lubricant oils is 2 wheeler engine oils which contribute almost 50% of market share followed by diesel engine oils and 4 wheeler engine oils.

Conclusions
From the above findings, the company should be concentrate more upon 2 wheeler engine oils then other categories so company should finalize any schemes in the form of discount, gift items or extra oil with 2 wheeler engine oils only. This will provide a more exposure to the company oil & hence help in increasing the sales.

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4) Mostly sold pack sizes:
The next question in the questionnaire is what pack sizes are mostly sold? The results as follows:

Findings:
From the above chart, in Hyderabad lubricant market the mostly sold lubricant pack is 1 ltr pack which contributes almost 50% of the market share, followed by the 2 to 5 ltr packs with 25% market share. The large volume packs like 20 ltr packs and barrels are sold in fewer volumes.

Conclusions:

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The above table clearly states the fact that the mostly sold packs for the retailers are 1 ltr. Hence the company should focus mostly upon the 1 ltr packs. Also, company should finalize any schemes in the form of discount, gift items or extra oil with 1 ltr pack engine oils only. This will provide a more exposure to the company oil & hence help in increasing the sales.

5) Major customers for the Retailers:
The next question in the questionnaire is who are your major customers? The result is as follows:

Findings:
From the above chart, In the Hyderabad lubricant market, the major customers for the retailers are automobile owners constituting both 2 wheelers and 4 wheelers. The share of mechanics and industrialists is very less.

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Conclusions:
The above table clearly states the fact that major customers for retailers are automobile owners. Hence in order to maximize the sales, the company has to concentrate mostly upon the automobile owners. Also, more advertisement activity should be done in order to attract more number of customers to Mak lubricants. The company should take steps to increase the demand from automobile owners which are specified later in this report.

6)

Customer preferences :

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Findings:
The above chart shows that maximum numbers of customers (as specified by the Retailer) choose a particular brand of lubricant by seeing the quality, price (less) and the brand.

Conclusions:
? Therefore in order to maximize the sales, the company has to increase the

perceived value in the minds of consumers about the Quality parameter of “MAK”. Moreover by using proper communication channels the quality variable factor can be properly promoted across the consumers & hence will build trust in the minds of consumers about the quality of MAK (like Castrol is doing in its advertisement).
? The other factor which was given preference by customers is the price of a

particular brand. The brand has to justify the price structure to its users. So, in order to increase the perceive value of MAK the company can offer discounts or complimentary gift items along with the bottle of lube oil. The majority of consumers like discount with the oil as compared to the gift items. So the company should Make proper manipulation in its price structure to satisfy the perceived value to its customers.

7)

Basis for customer in choosing a particular brand:
The next question in the questionnaire is how a customer chooses a lubricant brand? The result is as follows:

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Findings The above chart shows that the customers choose a particular lubricant brand by own interest (as specified by the retailers). The effect of mechanics and retailers recommendation in buying a particular product by a customer is very less.

Conclusions From the above results since the customer only chooses a particular brand, the Company should properly promote its Lube oil in order to create a buzz about the MAK in the market & also to improve the perceived value in the minds of customers.

8) Mechanics interest in recommending a brand:
The next question in the questionnaire is what mechanics look in recommending a particular brand? The result is as follows:

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Findings: The above chart shows that the mechanics recommend a particular product by seeing the amount of gifts offered to him by the company and seeing the quality of the particular brand. Conclusions: Therefore, in order to Make the mechanics recommend Mak Lubricants, the company needs to give gifts and incentives (like caps, T-shirts, key chains, calendar, watches e.t.c) than other companies. Also they should be given remuneration for recommending the product. O any garages

9)

The next question in the questionnaire is weather you supply to garage or a

service station? The result is as follows:

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Findings: From the above chart we can conclude that nearly 83% of retailers in Hyderabad market are not selling to any garages or service stations. Only 17% are selling.

10)

The next question in the questionnaire is do you enjoy any credit while selling the

lubricants? The result is as follows:

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Findings From the above results, maximum numbers of retailers are receiving credit while buying the lubricant from the distributor for a period of one week to one month. Conclusions: From above results if the credit limit period for the retailers is increased, they are ready to take more volumes of lubes. Also by providing credit for those retailers who are not receiving it, company can maximize the retailer number.

11)

The next question in the questionnaire is do you offer any credit while selling the

lubricants? The result is as follows:

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Findings: From the above chart most number of retailers are not providing any credit facility to their customers. Also those who are providing credit also giving very less period to repay it.

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12) Important parameters in buying the lubricant band:

The next question was “what is important parameter in selecting a brand for selling?” The result is as follows:

Findings: From the above chart we can conclude that Market demand and quality of the product plays a major role in selecting a brand by the retailers. Conclusions: The company should ensure to provide best quality engine oil to its consumers. One of the major factors to be discussed here is of duplication of oil in the market. All the engine oil is sold at various rates in the market. So, it is being assumed that the oil which is having the major variation of price in a given market is coming with duplicate quality.

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Also the retailers choose a particular brand by looking at its market demand. Hence the company should initiate more activities which improve the market demand of the product.

13) Gifts and incentives to retailers:

The next question in the questionnaire is do you get any gifts or incentives from the company or distributor? The result is as follows:

Findings: From the above chart, more than 70% of the retailers are receiving gifts and incentives for the targets they are set for. Conclusions: Since the retailers are interested in getting gifts and incentives for the volume of sales they sold, the company should give more incentives than the competitors (as in case of Castrol).

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14) Familiar to Mak brand:

The next question in the questionnaire is “are you familiar to Mak brand?” The result is as follows:

Findings: The above chart clearly states the facts that there are around 95% of retailers are familiar to the Mak brand. This shows that a fair amount of people have got knowledge about the Mak brand.

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15) Retailers selling Mak Brand:

The next question in the questionnaire is “Do you sell Mak brand?” The result is as follows:

Findings: The above chart clearly states the facts that only 31% of retailers in Hyderabad market are selling Mak brand. The reasons for this can be the Mak lubricants entered Hyderabad market lately and facing tough competition from other brands. Conclusions: The reasons for less number of retailers for Mak brand are specified later in the report. The Mak lubricants have to put major efforts in maximizing its retailers number.
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Reasons for not selling Mak lubricants:
70% of the retailers in Hyderabad lubricant market are not selling Mak lubricants. The reasons specified by retailers for not selling Mak brand are as follows:
? 50% of the retailers said that the no executives from Mak brand have met them

and hence they are not selling Mak brand.
? 50% of the retailers said that since there is no market demand for Mak brand from

customers’ side, they do not prefer Mak brand.
? 20% of retailers felt that the promotion and advertisement activities of the Mak

brand are too weak.
? 15% of the retailers felt that brand image of Mak brand is very less and hence the

sales of it are less and hence they do not prefer Mak brand.
? 7% of the retailers said that they had problems with the distributor of Mak

lubricants.
? 10% of the retailers felt that the gifts and incentives being given by company are

not sufficient and some of them are not receiving any of them.
? 15% of the retailers said that since Mak is new entrant of the market its quality

and price are unknown.
? 5% of the retailers felt that they had problems in the packing of Mak Lubricants

and hence they are not selling it.

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? 10% of the retailers felt that since the company is not maintaining a good

relationship with them and sales people rarely meet them, and hence they are not selling Mak lubricants.
? 5% of the retailers felt that since the credit limit period is very less for Mak

lubricants they do not prefer it.
? 5% of the retailers said that the sales people meeting only few retail shops in an

area and not giving any priority to others or not meeting the other retailers. ? 2% of the retailers said that since they are brand loyal to few brands only they are not selling Mak.
? 2 % of retailers felt that the supply of Mak lubricants is not proper and also taking

long time to receive after the order is giving.

Strategies to maximize the retailer’s enrollment to Mak lubricants:
Since 50% of retailers felt that there is no, market demand for the Mak brand, the company should take initiatives in increasing its market demand. Also the promotional activities conducted for increasing the market demand by the company are poor when compared to competitors. Therefore the company should choose proper communication channel in promoting the brand. The steps to increase the market demand are as follows:
? Advertisement:

The company should give advertisement about its brand

extensively by using television channels, news papers, magazines, radio (FM,AM), films, internet, Billboards, Public spaces like bus shelters, kiosks, petrol pumps.
? All the retile shops should be given Mak advertisement boards which should be

placed at top of the shops in order to increase the perciveness of brand among the customer which would increase the market demand indirectly.

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? Promotionary tools: The company should undertake promotionary tools like Free

samples, Gift Coupons, Cash refund offers, Price packs, Premiums, frequency programmes, Gifts and incentives, contests, Free trails, Product warranties, tiein-promotions, Point of purchase displays and demonstrations.
? The company should conduct events in order to maximize its public relations,

and increase its word-of-mouth-selling. ? The sales executives must see that the Mak brand products are displayed out in show cases at the shops. Also the Mak brand logos and stickers are attached in all main areas in the shop so that, the customer perciveness abut the mak brand can be increased. By performing all the activities as mentioned above the company can maximize the market demand and hence the retailers. Also the company should take steps as mentioned above to maximize the brand image.

Since 50% of the retailers felt that the sales executives are not meeting them, the company should take steps in seeing the sale executives meets all the retailers regularly. Also company should take steps in seeing that the retailers meet all types of retailers since there is perception among shopkeepers that mak sells to only high end retailers. Overall from the given feedback & analysis it can be clearly stated the fact that the “Quality” of the Mak lubricants is unknown. Hence in order to increase the sales we have to increase the perceived value in the minds of consumers about the Quality parameter of “Mak”. Moreover by using proper communication channels the quality variable factor can be properly promoted across the consumers & hence will build trust in the minds of consumers about the quality of Servo Geo (like Castrol is doing in its advertisement). The other factor which is affecting the buying decision of lube oil is the price of a particular brand. The brand has to justify the price structure to its users. So, in order to increase the perceive value of Mak the company can offer discounts or complimentary
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gift items along with the bottle of lube oil. The majority of consumers like discount with the oil as compared to the gift items. So the company should make proper manipulation in its price structure to satisfy the perceived value to its customers. The other major factor which is affecting the buying decision of lube oil is the mechanic variable. Mechanics help a lay man to judge good quality oil. So many users buy oil on the recommendation of Mechanics purchase a given brand of oil. So the company should try to develop a good perceive value in the minds of mechanics too. Since many retailers felt that the gifts and incentives provided by the company are less and negligible when compared to competitors, there is a need for the company to give more number of gifts and incentives to retailers. Since the gifts received by the retailer by the companies are almost same, there should some innovative way the company should be followed in giving the gifts to retailers. Since some retailers felt that they had problems with distributor in billing and distribution, the company should involve in this matters and should take steps to solve disputes, as early as possible. Since some retailers felt that they had problems in packages of Mak brand, these should be rectified by proper packaging techniques as followed by the other brands. The company should see that the credit limit period provided for the retailers is maximum, so that they can take more volumes of lubricants.

Strategies to retain Retailers loyalty to Mak brand:
? The retailer’s loyalty can retain by maintaining a good relationship with them. This

can be achieved by meeting the retailers regularly and giving gifts and incentives constantly. Also sending them greetings during the festivals and other occasions can increase their loyalty to the brand. ? By conducting events for the retailers on behalf of the Mak brand can increase their loyalty.

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? The present gift schemes must be altered by more effective ones, since most of

the retailers selling mak brand felt that they are having problems in them. ? The retailer who are selling more volumes of Mak lubes are to be given more margins and gifts compared to other retailers. ? By maintaining the price in an economical way such that retailers receive more margins by selling more number of lubricants. ? More number of retailers felt that, if the brand image, market demand is high they are interested in selling the product for long time. Hence company should take steps in increasing brand image and market demand as specified above. ? By delivering the stock to retailers as early as possible, their loyalty can be achieved. ? By maximizing the credit period o the retailers their loyalty can be maximized. ? Most of the retailers felt that they require one distributor for a area as they are facing problems with more distributors.
? Solving the complaints received from the retailers on distributor or gifts or credit

problems we can regain the loyalty. Therefore by following above suggested steps the company can retain the retailers loyalty for a long time.

ANNEXURE
QUESTIONNARE FOR RETAILER SURVEY
Survey to maximize retailer’s enrollment into mak and how to retain retailer’s loyalty to mak in Hyderabad market Name of Retailer shop:- __________________________________________________ Name of Respondent:- ___________________________________________________
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Address and contact number:-______________________________________________ ________________________________________________

QUESTIONNAIRES: 1. Since how long you are in lubricant business?

2. What is your average lubes sales per month? a)Value(Rs)________________ b)Quantity(Ltrs)___________________

3. What are different lubricant brands you are selling?

4. What category of products you are selling maximum? a) 2/3 wheel engine oil d) Industrial oils b) 4- wheel engine oil c) Diesel engine oil

5. What pack sizes are mostly sold? a) upto 1ltr pack b)1to 5 ltr pack c)7 to 20 ltr pack d)barrels

6. Who are your major customers?

7. What are your customer preferences?

8. How does the customer choose the lubricant brand? a) Mechanics recommendation b) own interest c) retailers recommendation

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9. What mechanics look in recommending lubricants?

10. Weather you supply to any garage or service station? a) Yes b) No

11. From where you buy lubricants?

12. Do you enjoy any credit while buying the lubricants?

13. Do you offer any credit while buying the lubricants?

14. What important parameter do you look for while selecting a brand for selling?

a. Price
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b. Market demand c. Payment/ credit d. schemes/incentives e. Fast delivery f. Quality. g. Brand popularity h. Profit margin. i. Packaging. j. Availability in different sizes

15. A part from prize margin do you get any extra incentives or gifts from the company or distributor? a) Yes b) No

16. Do you give any incentives and gifts to your customers? a) Yes b)No

17. Are you familiar to Mak brand? a) Yes b) No

18. Are you selling Mak brand? a) Yes b) No

19. If yes, which are the Mak grades and quantities you are selling per month?
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20. If No, what are the main reasons for not preferring Mak over others?

21. Your suggestions for improving sales of Mak brand?

22. What steps we should take to make you loyal to the Mak for a long time?

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THANK YOU

Bibliography
1) Philip Kotler, Kevin Lane Keller, Abraham Koshy, and Mithileshwar Jha,

“MARKETING MANAGEMENT”(13th ediion), Delhi: Pearson education.
2) Aaker, kumar and day, “MARKEING RESEARCH”(9th edition), John Wiley & Sons(

ASIA) Pte Ld. 3) Understanding lube oil & Its Job function, http://gulfcoastfilters.com/understanding_lube_oil_and_its_j.htm
4) www.bpcl.com 5) www.castrolindia.com 6) www.maklubricants.com 7) www.castrolindia.com 8) www.valvoline.com 9) http://www.researchandmarkets.com/reports/364392/

10)Annual report of B.P.C.L

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11)Project report on” “To Study the various factors affecting the buying behavior of

CNG Engine Oil in Delhi & to formulate Schemes/Recommendations to improve Sales of Servo Geo” by Gaurav Bajaj. 12)Project report on “Sales & Distribution Management” On 15-11-2009 by Apoorva Jain 13)Project report on ““REQUIREMENTS OF LUBRICANTS IN SPONGE IRON STEEL & ANCIALLARY INDUSTRIES AND BAZAAR (RETAIL) POTENTIAL ASSESMENT’’by MR.PRATICK RANJAN GAYEN.

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