SUMMER TRAINING PROJECT REPORT

On

Training program of Xtracare pump attendants and Sale of Lubricants

AT INDIAN OIL CORPORATION LIMITED, UP STATE I (Marketing Division) KAPOORTHALA, LUCKNOW

SUBMITTED BY:
Shalini Srivastava Roll no: 215109027 MBA 2009-2011 National Institute of Technology, Trichy

ACKNOWLEDGEMENT
I would like to take an opportunity to express my sincere thanks to all those who extended their whole-hearted support and help to me throughout this project and enabled me to give the project its present shape.

I am thankful to Asstt.Prof. Thamareselvan my project mentor at National Institute of Technology, Tiruchirappalli who extended his valuable suggestions and encouragement that was required to complete this project.

would

like

to

extend

my

sincere

thanks

to

Mr.Najmi(CRSM),Mr.Vigyan Kumar(SDRSM) & specially Mr.Sunil Vikram Singh(AM-RS ), my project guide for his guidance and support throughout my training at Indian Oil Corporation Limited, Marketing Division,Lucknow. His calm demeanor and willingness to teach has been a great help in my successfully completing the project. My learning has been immeasurable and working under him was a great experience.

I am also thankful to staff and worker of Indian Oil Corporation Limited, UP State I (Marketing Division), Lucknow for their amicable behavior.

Shalini Srivastava Roll No. 215109027 Batch 2009 2011

CERTIFICATE
Dated To Whomsoever It May Concern

This is to certify that Shalini Srivastava has developed and implemented the Project work entitled Training program of Xtracare pump attendants and Sale of Lubricants under my guidance at Indian Oil Corporation Limited during the period 10th May,2010 to for partial completion of MBA from

NATIONAL INSTITUTE OF TECHNOLOGY,TRICHY. The project has been completed successfully to our satisfaction and her conduct during the tenure of the project was good. For: Indian Oil Corporation Limited,

Name: Mr. Sunil Vikram Singh Designation: Deputy Retail Sales Manager Companys Name : Indian Oil Corporation Limited

THE OIL & GAS INDUSTRY IN INDIA:

India is the sixth largest consumer of oil. There exists a huge gap between the demand and supply of oil and gas in India. The country imports more than 70% of its crude oil requirements. The oil and gas industry is broadly classified into Upstream, Midstream and Downstream segments. Midstream operations are usually included in the downstream category.

UPSTREAM SECTOR:
The upstream sector, also known as the exploration and production (E & P) sector, is concerned with the search for potential underground or underwater oil and gas fields, the drilling of exploratory wells, and subsequently operating in the wells that recover and bring the crude oil and/or raw natural gas to the surface.

DOWNSTREAM SECTOR: The downstream sector includes oil

refineries, petrochemical plants, petroleum product distribution, retail outlets and natural gas distribution companies.

OIL AND GAS INDUSTRY OF INDIA

UPSTREAM SECTOR ONGC OIL IOCL RIL BPCL

DOWNSTREAM SECTOR HPCL MRPL

INTRODUCTION

INDIAN OIL: How did it originate?

Beginning in 1959 as Indian Oil Company Ltd., Indian Oil Corporation Ltd. was formed in 1964 with the merger of Indian Refineries Ltd. (established 1958). IndianOil and its subsidiaries account for 49% petroleum products market share, 40.4% refining capacity and 69% downstream sector pipelines capacity in India.

Fig.2 IOCL Logo

ABOUT IOCL:
Indias flagship national oil company and downstream petroleum major, Indian Oil Corporation Ltd. celebrated its Golden Jubilee during 30th June - 1st September 2009.

From a fledgling company with a net worth of just Rs. 45.18 crore and sales of 1.38 million tonnes valued at Rs. 78 crore in the year 1965, and a net profit of Rs. 2,950 crore for 2008-09. Indian Oil Corporation Ltd. is India's largest company by sales with a turnover IndianOil has since grown over 3000 times with a sales turnover of Rs. 285,337 crore, the highestever for an Indian company, of Rs. 271,074 crore and profit of Rs. 10,221 crore for the year 200910. Consistently improving its position in the Fortune 'Global 500' listings, it moved up 11 places, and was ranked 105th in 2009, making it the highest ranked Indian company in the list. It is also the 18th largest petroleum company in the world. IndianOil's vision is driven by a group of dynamic leaders who have made it a name to reckon with.

BUSINESS MODEL of IOCL

CRUDE

INDIAN OIL CORPORATION

REFINING

PIPELINES

RESEARCH AND DESIGN

MARKETING

FUEL/PETROLEUM PRODUCT

PETRO CHEMICALS

GAS

Figure 3: BUSINESS MODEL OF IOCL

The major businesses of Indian Oil are in the fields of Refining Pipelines Marketing Research and Development Petrochemicals Indian Oil is the largest refinery in India. It has a refining capacity of 60.2 million metric tons per annum (MMTPA). Although the Core business of Indian Oil is refineries, it is also into many other businesses related to crude oil.

Indian oil procures its crude oil from the countries in Middle East and Africa. It not only refines the crude oil but also its pipelines network is very strong from nearly 9300km in length and 61.72 MMTPA in capacity. Thus it does not outsource this pipelining rather maintains a very efficient system across the country for transporting its crude oil to its various refineries. It has also identified transportation of gas through pipeline as a new growth area with gas discoveries getting reported from various parts of the country. LPG and natural gas pipelines are part of several new pipelines and branch lines being laid by IOCL. It also produces petroleum product for specific applications such as feed stock for chemical industry and solid fuels. Such petroleum products which are used for specific processes are called Petrochemical and Specialties (P&S) Product. Indian Oils refineries are designed to make such P&S products. Indian Oil also caters to its large volume consumer segment by providing them complete Fuel Management Solutions. It has proper storage and dedicated facilities for its customers who have bulk requirements. The tank ages of Indian Oil are strategically located across the country and are custom-designed to maintain low-cost supplies that can be rapidly transported through a sophisticated supply-chain management system. Indian Oil has a strong R&D support which continuously works on the product quality improvement, evaluation of catalysts and additives, health assessment of catalysts, material failure analysis, troubleshooting and in improving overall efficiency of operations. It has also launched initiatives in the field of exploiting alternative sources of energy like hydrogen and Biofuel. The marketing and distribution network of Indian Oil is very strong with around 34000 marketing touch points and its petrol/diesel stations spread across the country. Its marketing efforts have made its brand recognized not only nationally but also internationally.

Indian Oil operates the largest and the widest network of petrol & diesel stations in the country, numbering over 17,600. It reaches Indane cooking gas to the doorsteps of over 50 million households in nearly 2,700 markets through a network of about 5,000 Indane distributors. IndianOil's ISO-9002 certified Aviation Service commands over 62% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defense Services. The Corporation also enjoys a dominant share of the bulk consumer business, including that of railways, state transport undertakings, and industrial, agricultural and marine sectors. To safeguard the interest of the valuable customers, interventions like retail automation, vehicle tracking and marker systems have been introduced to ensure quality and quantity of petroleum products. IndianOil has set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates (UAE), and is simultaneously scouting for new opportunities in the energy markets of Asia and Africa. Lanka IOC Ltd. operates about 150 petrol & diesel stations in Sri Lanka, and has a very efficient lube marketing network. Its oil terminal at Trincomalee is also Sri Lanka's largest petroleum storage facility. Lanka IOC commissioned an 18,000 tonnes per annum capacity lubricants blending plant and state-of-the-art fuels and lubricants testing laboratory at Trincomalee during 2007-08 besides commencing bunkering business. IndianOil (Mauritius) Ltd. has an overall market share of nearly 20% and commands a 32% market share in aviation fuelling business, apart from its bunkering business. It operates a modern petroleum bulk storage terminal at Mer Rouge port, besides 13 petrol & diesel stations. In addition to the ongoing expansion of retail network, IOML has commissioned the first ISO-9001 product-testing laboratory in Mauritius.

The Corporation's UAE subsidiary, IOC Middle East FZE, which oversees business expansion in the Middle East, has commenced blending SERVO lubricants and arketing petroleum products and lubricants in the Middle East, Africa and CIS countries.

SUPPLY CHAIN OF INDIAN OIL:

Indian Oil imports crude oil from several countries in Africa and Middle East. This crude oil it imports through shipping and does not has any pipelines for the purpose of importing. Then this crude oil is sent to its various refineries across the country. Though it does not have a good pipeline network for importing, in India its pipeline network is very strong. Thus transportation within country is much more efficient. However, Indian oil does not have any refineries along the west coast thus the crude oil which is imported from Africa has to be transported through Chennai or the Narimanam port. After the crude oil is imported it is sent to the various refineries, through its wide network of pipelines, where it is transformed into various products. Indian Oil does not only produces fossil fuels like petrol, diesel, lubricants, LPG etc. but it is also into making non fuel products like waxes, various kinds of oils and different chemicals. It has refineries located in strategic positions in the country. Refineries at Narimanam, Chennai and Bongaigaon are owned by its subsidiary Indian Oil Technologies Ltd. The crude oil is transformed to petroleum at the refineries. The petroleum product thus produced reaches out to the millions of consumers through the countrywide network of Indian Oil of about 34000 sales points. These sales points are backed for supplies by 166 bulk storage terminals and depots, 101 aviation fuel stations and 89 Indane (LPGas) bottling plants. Also, 7100 bulk consumer pumps are in operation for the convenience of large consumers. Thus,

it enables its bulk consumers to ensure a smooth supply of product and inventory. Indian Oil has a vast experience in the operating of refineries. Also, it has its refineries located at strategic locations so as to minimize transportation costs etc. it has refineries located near sea ports as it imports crude oil through shipping.

VISION AND MISSION OF IOCL:

Chart 1.1 Vision and Values

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

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

COMPETITORS:
Indian Oil Corporation has two major domestic competitors, Bharat Petroleum and Hindustan Petroleum. Both are state-controlled, like Indian Oil Corporation. There are two private competitors, Reliance Petroleum and Essar Oil.

CHART 2.1 INDUSTRY OVERVIEW

Ministry of Petroleum and Natural gas UPSTREAM Exploration and Production DOWNSTREAM Refining and Marketing INDUSTRY BODIES

ONGC

Indian Oil

Bharat Petroleum

Petroleum Planning & Analysis Cell

OVL

IBP, CPCL, BRPL

KRL, NRL

Centre for High Technology

OIL INDIA LIMITED

MRPL

HINDUSTAN PETROLEUM

PCRA

Pvt. E & P Companies

RELIANCE INDUSTRIES LTD.

GAIL Gas Transportation & Petrochem PETRO FED

Other Private Cos. Oil & Gas Marketing

Oil Industry Safety Directorate

Petroleum India International

Engineers India Ltd.

Director General of Hydrocarbon

Chart 2.2 ORGANIZATIONAL CHART

PIPELINE DIVISION

REFINERY DIVISION

MARKETING DIVISION (HO - MUMBAI)

ASSAM OIL DIVISION

NORTHERN REGION Delhi

WESTERN REGION Mumbai

EASTERN REGION Kolkata

SOUTHERN REGION Chennai

(STATE OFFICES)

DSO (Delhi)

PSO Chandigarh

RSO Jaipur

UPSO Lucknow

UPSO I (Lucknow)

UPSO II (Noida)

INDIAN OIL AS A LEADER- MARKETERS PERSPECTIVE:

Indian Oil follows the typical competitive strategies for a market leader by

a) Defending its market share : BPCL was the first to launch differentiated product .IOCL also launched similar product in order to defend its leadership position. It was a kind of Counteroffensive Defense. The Indian petroleum market was never the same again after 1991.The market was opened for the foreign players and the economy changed from closed to open. During the year 2007-08, every brand in Indian Oils portfolio further consolidated its leadership status. In fact, XTRAPREMIUM registered a whopping 89% growth in sales over the previous year to emerge as the country's leader in the branded petrol segment. Similarly XTRAMILE Diesel, the Numero Uno in the branded diesel segment, saw a sales growth of 65% over the last year. XTRAPOWER Fleet Card usage went up by 26% and earned the recognition as the largest Loyalty Programme on the basis of sales turnover at the recently concluded Loyalty Summit 2008. During the year around Rs 10,000 crore worth of fuels were transacted using the XTRAPOWER Fleet Card. India's largest lubricant brand, SERVO registered a 4.4% volume growth during the year and retained its No. 1 brand status. In Aviation Fuel Business too Indian Oil retained its market share of 62.3% during the year. b) Expansion of the total market :As the flagship national oil company in the downstream sector, Indian Oil reaches precious petroleum products to millions of people every day through a countrywide network of about 34,000 sales points. They are backed for supplies by 166 bulk storage terminals and depots, 101 aviation fuel stations and 89 Indane (LPG) bottling plants. About 7,100 bulk consumer pumps are also in operation for the convenience of large

consumers, ensuring products and inventory. Indian Oil operates the largest and the widest network of petrol & diesel stations in the country, numbering over 17,600. It reaches Indane cooking gas to the doorsteps of over 50 million households in nearly 2,700 markets through a network of about 5,000 Indane distributors. Indian Oil's ISO-9002 certified Aviation Service commands over 62% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defence Services. The Corporation also enjoys a dominant share of the bulk consumer business, including that of railways, state transport undertakings, and industrial, agricultural and marine sectors.

Market Share of OMCs in India

Private players (Reliance,Essar, Shell) 19% Other PSUs 2%

IOCL 44% HPCL 16%

BPCL 19%

Graph: Market Share of Oil Marketing Companies (OMCs) in India

FUTURE OBJECTIVES OF THE COMPANY:

To enhance availability of domestic LPG cylinders, Indian Oil is also pioneering the launch of new generation composite LPG cylinders using materials like HDPE, PET and FRP. The composite cylinder will have 10.5 kg of LPG and nearly 2 lakh such composite cylinders are proposed to be imported on an industry basis in the first phase and test marketing will be undertaken by Indian Oil in Bangalore this year

INDIAN OIL- A NATIONAL BRAND:

IndianOil has been adjudged India's No. 1 brand by UK-based Brand Finance, an independent consultancy that deals with valuation of brands. It was also listed as India's 'Most Trusted Brand' in the 'Gasoline' category in a Readers' Digest - AC Nielsen survey. In addition, IndianOil topped The Hindu Businessline's "India's Most Valuable Brands" list. However, the value of the IndianOil brand is not just limited to its commercial role as an energy provider but straddles the entire value chain of gamut of exploration & production, refining, transportation & marketing, petrochemicals & natural gas and downstream marketing operations abroad. IndianOil is a national brand owned by over a billion Indians and that is a priceless value.

IOC- PRODUCTS

Indian Oil is not only the largest commercial enterprise in the country it is the flagship corporate of the Indian Nation. Besides having a dominant market share, Indian Oil is widely recognized as Indias dominant energy brand and

customers perceive Indian Oil as a reliable symbol for high quality products and services. Benchmarking Quality, Quantity and Service to world-class standards is a philosophy that Indian Oil adheres to so as to ensure that customers get a truly global experience in India. Our continued emphasis is on providing fuel management solutions to customers who can then benefit from our expertise in efficient sourcing and least cost supplies keeping in mind their usage patterns and inventory management. IndianOil is a heritage and iconic brand at one level and a contemporary, global brand at another level. While quality, reliability and service remains the core benefits to our customers, our stringent checks are built into operating systems, at every level ensuring the trust of over a billion Indians over the last four decades. The Retail Brand template of IOC consists of XtraCare(Urban),

Swagat(Highway) and Kisan Seva Kendras(Rural). These brands are widely recognized as pioneering brands in the petroleum retail segment. IndianOils leadership extends to its energy brands - Indane LPG, SERVO Lubricants, Autogas LPG, XtraPremium Branded Petrol, XtraMile Branded Diesel, XtraPower Fleet Card, IndianOil Aviation and XtraRewards cash customer loyalty programme.

IOC SERVICES:

IndianOil provides a wide range of marketing services and consultancy in fuel handling, distribution, storage and fuel/lube technical services. With a formidable bank of technical and engineering talent, IndianOil is fully equipped to handle small to large-scale infrastructural projects in the petroleum downstream sector anywhere in the country. Our project teams have

independently or jointly as a consortium, have set up depots, terminals, pipelines, aviation fuel stations, filling plants, LPG bottling plants, amongst others. IndianOil's fuel management system to bulk customers offer customized solutions that deliver least cost supplies keeping in mind usage patterns and inventory levels. A wide network of lubricant and fuel testing laboratories are available at major installations which is further backed by sector-wise expertise in the core sectors of power, steel, fertiliser, gas plants, textile mills, etc. Cutting edge systems and processes are designed around one simple belief-to provide valuable customers with an unbeatable edge in their business. IndianOil's supply and distribution network is strategically located across the country linked through a customized supply chain system backed by front offices located in conceivably every single town of consequence.

The wide network of services offered by IndianOil, Marketing Division is illustrated in this section, which includes; commercial/reticulated LPG; total fuel management/ consumer pumps; IndianOil Aviation Service; LPG Business (non-fuel alliances); loyalty programs; retail business (non-fuel alliances) and SERVO technical services.

DIVERSIFIED PRODUCTS AND BRANDS:

BRANDED PRODUCTS:
XtraPremium Petrol XtraMile Diesel IndaneLPG SERVOLubricants

BRANDED SERVICES : KisanSevaKendra

 XtraCare Outlets

IOCL BRANDS:

In Lucknow Indian Oil is the market leader both in the sales of MS (Motor Spirit) and HSD (High Speed Diesel). Second comes BPCL followed by HPCL. Indian Oil leads the market by a majority share of 55% in total of MS and HSD sales. The difference between Indian Oil and its next follower i.e. BPCL is that of 27% which is a big difference. Indian Oil has an extensive network of petrol pumps in the city of Lucknow. Graphically the market share of the three major OMCs (Oil Marketing Company) in Lucknow can be shown as:

Market Share
IOCL+IBP BPCL HPCL

17%

28%

55%

Graph 1: Market Share of the three major OMCs in the main city of Lucknow

PROJECT SYNOPSIS:
INTRODUCTION: The purpose of the project is to study the TRAINING PROGRAM BEING CONDUCTED BY INDIAN OIL FOR ITS PUMP ATTENDANTS OF XTRACARE PUMPS and also THE SALE OF LUBRICANTS. The project aims to find out weather the pump attendants are beign properly trained or not and also to see the changes as a result of this program.. It also aims to determine the sale of lubricants for which campaigns were conducted at different indian oil retail outlets.

DATA COLLECTION:

My research project is descriptive as well as analytical one. Descriptive research includes surveys and fact-finding enquiries of different kinds of customers from IOCL Retail Outlets, at Lucknow district only. Its major purpose is description of state of affairs, as it exits at present. As I collected my data from various Retail Outlets of IOCL like IOC, IBP and COCO, so my research is descriptive one. On the other hand, I used my data for comparing and analysing the sale of lubricants, so my research is also analytical. Data can be either is collected through census method or through random sampling method. In my case only random sampling method was useful, as I have to gather data about the customers satisfaction index and market position of the organization.

For the collection of data a questionnaire was framed which was to be filled by End customers. The questions asked were highly structure one and objective type.

RESEARCH DESIGN:
A two stage research was conducted. 1. SECONDARY RESEARCH: Data was collected from Websites and Catalogues to get information about the Services and Facilities of IOCLs Retail Outlets. 2. PRIMARY RESEARCH: A primary research was conducted. The questionnaires were developed for customers of IOCLs Retail Outlets and in these questionnaires covered all the Products, Services and Facilities given by the IOCL on their Retail Outlets.

RESEARCH PROCESS :
STAGE ONE: Formulation of Research Objective In the first week, I spent time on knowing about the company and its market share, services, products name, quality, vision and mission etc. During this period, I attended the training program for PUMP ATTENDANTS OF XTRACARE PUMPS.

STAGE TWO:

Extensive literature survey With the help of various websites, annual reports and other literatures available, I enhanced my understanding about the company.
.

STAGE THREE: Desk research Then I spent time on preparing a report on the training program of pump attendants wherein I had to suggest ways of improvement and formulating questionnaire to determine the impact of lubricants campainging on the sale of lubricants. STAGE FOUR: Fieldwork After data was prepared, the next step to meet the different customers of different Retail Outlets of IOCL where the campainging for lubricants is beign conducted. The data was collected by personal interview as per questionnaire prepared.

STAGE FIVE: Analyze the data The data collected was then classified and analyzed. Simple statistical tools such as percentage, graph etc were used to analyze and interpret. STAGE SIX: Interpretation of data and preparation of report To explain and summaries the finding of the study interpretation was done and finally the report was prepared.

XTRACARE PUMPS OF INDIAN OIL:

This is yet another initiative taken by Indian Oil to enhances its services and maintain good customer relationship. SERVICES AND FACILITIES OF IOCL IN RETAIL OUTLET : 1. Check and Fill Facility 2. Credit Card Facilities/ Swiping machines 3. Air Filling Facility 4. Drinking Water Facility 5. Availability of Lubricants in every Retail outlets 6. Toilet Facility 7. Availability of Complain Registers for complain and the feedback of the customers 8. Forecourt Services viz. Wind screen cleaning, Oil check, Water check, Coolant check, etc. 9. Sales Officers phone number for direct touch with company 10. IOCL also introduced all India toll-free number for customer feedback 11. SMS/IVRS facility for booking LPG refills 12. Cleanliness and well maintain of Retail Outlets And many other services which is provided by IOCL, which feels the customers comfortable and happy.

REPORT ON THE TRAINING PROGRAM BEING CONDUCTED FOR THE PUMP ATTENDANTS OF XTRACARE RETAIL OUTLETS: IOCL conducted a training program for the pump attendants of Xtra care petrol pumps. It was a 19 days program where Mr Gaurav Upadhyay from Stanc Media & Entertainment Ltd was involved in training pumps attendants of 22 Xtra care pumps from 10o clock in the morning to 5o clock in the evening. Each batch comprised of 24 participants and along with training they are also provided with lunch and tea. This kind of session is conducted 3 times in a year for the pump attendants as well as for the pump dealers. In this particular training the topics that were dealt with are: Personal hygiene Forecourt and etiquettes Operation and maintenance Product push and its importance Forecourt service step

In personal hygiene these participants were made aware of its importance. They were strictly instructed to wear the proper uniform and also that the logo of Xtra care must be present on their shirts and caps. They were taught the basic terminologies with respect to the petrol pumps. Building customer relationship and attracting more customers is one of the purpose of this training program. For this they were made to understand that should always greet their customers, offer them water and cater to their needs like air check service and wiper service to their vehicle. Each pump attendant must be knowledgeable regarding the operational activities at the pump. These participants were also trained about how to maintain the dispensary units and the tankers.

how to To maintain an edge over the competitors, it is crucial to sell all the products. The participants were firstly given the information regarding each product and then were told about its utility that they should convey to the customers. They were made to realize the importance of informing each customer about the products offered by Indian Oil. While dealing with the topic of forecourt service step, the participants were given complete instructions regarding proceed when a customer arrives. Greet the customer. He should be asked for water. Before filling petrol/disel, reconfirm how much they require and show them the meter reading as zero. Inform them about the other products. Provide additional facilities like air check and wiper service. Ask whether they require a bill. For the better understanding of participants they were shown pictures and videos too demonstrating activities at the pump. In the last hour of the session, the participants were made to perform all the activities that they were taught and their flaws were corrected by the instructor.

BENEFITS OF THE PROGRAM: The etiquettes taught will lead to customer satisfaction. A customer tends to believe if a pump attendant advices him regarding the kind of fuel they should prefer. Hence the product sale will increase. Participants learnt how to maintain the pump. It also enabled attendants from other pumps to interact with each other.

RECOMMENDATIONS:
The attendants must be given some training before he is actually appointed specially regarding how to control accidental situations. They should be given some Basic English learning training so that they may deal with ease with the customers from other states and countries. It is necessary to make an employee feel a part of the company so that he works towards its success. Therefore regular health check-up facilities should be provided to these people because they remain exposed to dust, pollution, sun rays and petroleum particles for a long period of time. Go green concept is being adapted by most of the companies these days. Therefore the employees must be made to understand its importance and each pump should plant as many plants as possible and these people must learn to take care of them too. It should be made mandatory that no employee must indulge themselves in any kind of bad eating and drinking activities. This will in return be helpful in keeping them healthy.

REPORT ON SERVO 4T CAMPAIGNING:

Very few vehicle owners know what lubricants are, what the main function of lubricants is and why we use lubricants. These are the question, which never comes in our mind. Advanced lubricants have been developed by IOC to improve engine efficiency. Lubricants are used to reduce friction between moving parts, thus resulting in lower wear and tear. In many machines, lubricants also play a role in cooling, rust prevention and help to avoid deposition of solids between closely fitting parts. Liquid lubricants are most commonly used. A lubricant is a blend of base oils and performance-enhancing additive as required by engine, gearbox and other applications areas. At the refinery, the crude oil is refined into gasoline, diesel, kerosene, LPG, and base stock (Lube). This base stock is further processed, blended and strengthened with required properties to make different kind of lubricants.

IOCL, Lucknow Marketing Division started a campaigning program to increase the sale of its lubricant servo 4T at its retail outlet.

ABOUT SERVO 4T:

DESCRIPTION: Servo 4T is high performance engine oil for 4 stroke 2/3 wheelers. This oil is blended from high viscosity index base stocks and contains additives to meet the stated performance standards.

APPLICATION:

Servo 4T is recommended for new generation 4 stroke motorcycles, scooters and auto rickshaws. PERFORMANCE BENEFITS: Maximum power output. Superior performance in terms of oxidation stability. Excellent wear protection at high temperatures and severe operating conditions. Outstanding overall engine cleanliness. Enhanced engine life. Higher fuel efficiency. Potential oil drain period of 5000 Kms.

CHARACTERISTICS : SAE GRADE Kin. Viscosity @ 100C, cSt Viscosity Index, Min. Flash Point, COC, C, Min Pour Point, C, Max TBN, mg KOH/gm 20W-40 13.5 15.5 110 200 (-) 21 9.5 11.0

The campaigning has been conducted at the following retail outlets:

1. 2. 3. 4. 5. R.K.B.K. HAL, Lucknow COCO Gomti Nagar, Lucknow Agarwal Brothers, Jiamau, Lucknow Sachan Filling Station, Munshi Pulia, Lucknow SSR pump, Jankipuram, lucknow

Around 20 bottles of Servo 4T were being displayed during the campaign and a machine for cleaning the engine of vehicles. Also a person is there to inform all the customers visiting the pump about this product. The aim is to increase the sale of Servo 4T and create awareness among the customers.

SUGGESTED WAYS TO INCREASE THE SALE OF LUBRICANTS: The person appointed for informing the customers about the product, should himself have sufficient knowledge about the product. Secondly he should be one with good communication skills so that he may be able to inform better and convince the customers in purchasing the product. In order to make him work efficiently, a target should be set. He should be able to sell a specified number of bottles each day for which he may be provided some incentives and penalised for not fulfilling the target.

The main problem witnessed during campaigning is that the customers do not give sufficient time. To tackle this problem we may distribute pamphlets highlighting the advantages of Servo4T. We can observe the retention ratio for one week and see the results. Another way can be increasing the visibility. The pump where the campaign is going on and at other important landmarks we can create awareness among the customers by the use of hoardings and banners.

SALE OF LUBRICANTS:
To datermine the impact of lubricants compaiging on the sale of SERVO, the customers were asked to fill in a questionnaire.

Questionnaire for customers:

1. Which brand of lubricant do you prefer? a) Servo b) Castrol c) Mak d) Pennzoil c) Shell d) Others

2. For how long have you been using this particular brand? a) 0-2 years

b) 2-5 years c) Above 5 years

3. Which factor influences you in using a particular brand? a) Price b) Quality c) Incentive price d) Free gifts e) Belief in brand image f) Advertising g) Others

4. While purchasing lubricating oil, who takes the decision? a) You b) Mechanic c) As recommended by the manufacturer

5. Would you like to switch to Servo brand? a) Yes b) No

The data collected was later analysed and thus SALE OF LUBRICANTS was determined.

SERVO has completed mare than 30 years serving the lubrication needs of the Indian industry. SERVO is Indias No.1 lubricants brand not only in terms of sales but also in terms of quality and range. Servo has a range of over 470 grades of lubricants-oil and greases. Our well-equipped R&D center at Faridabad, perhaps one of Asias most advanced, is also Indias first in the petroleum industry to have received the ISO ())! Accreditation. This together with the fact that our lube blending plants at Mumbai, Calcutta, Chennai and grease plant at Vashi which produce SERVO, are also ISO 9002 certified ensures that SERVO lubricants meet international standards Servo has an excellent spread to meet the requirement of various automotive, industrial, marine, aviation and railroad applications .It is Indias largest selling lubricants brand and enjoys approvals from major Original Equipment Manufacturers (OEMs) including new generation cars. In India, SERVO is the unquestioned leader, with a 42% share in a market estimated at Rs. 55 billion comprising approximately one million metric tones of lubricants. Servos fundamental strength is its extensive spread of production units and distribution bases across the country. These include six lubricant blending plants and a grease manufacturing plant all of which are ISO accredited. SERVO also has a formidable marketing reach, thanks to its exclusive network of nearly 16,600 outlets/stockists and thousands of other multi-brand Lube Bazaar shops. SERVO offers a staggering range of lubricants for the automobile, industrial and marine industries. It is the lubricant of choice for most of the latest international automobiles that have been launched on the Indian roads. Another testimony to Servos reliability and quality is its extensive use by heavy-duty trucks, battle tanks of the Indian Army and the latest guided missile destroyers of the Indian Navy. SERVO has a notable presence in the highly competitive markets of the UAE, Nepal, Malaysia, Sri Lanka, Bangladesh and Mauritius. The companys aggressive marketing and advertising thrust together with stateof the-art packaging has enabled SERVO to emerge as a truly global brand from

India.

ACHIEVEMENTS:
SERVOs striking achievement is a steadily rising customer approval for its products in India. The widespread popularity cuts across various customer segments and automobile user communities. Whether it is Hyundai Santro, Mitsubishi Lancer, Opel Astra, Daewoo Cielo, Fiat Uno or the Maruti family, SERVO serves them all. On its part, SERVO woos and wins its retail customers with a seductive combination of vehicle service, grocery shops and engine oil tie-ups with leading international automobile manufacturers.

PRODUCTS: SERVO primarily caters to three segments: automotive, industrial and marine. There are more than 450 different grades of lubes and oils, which cater to these sectors. The products for the automotive sector include 2T/4T oils, gasoline engine oils, diesel engine oils, gear and transmission oils, coolants and brake fluids and automotive greases. IOC is a major supplier to auto original equipment manufacturers (OEMs) like Tata Motors, Hyundai, Mahindra & Mahindra, Maruti and state transport undertaking like BEST, APSRTC, and RSRTC etc. SERVO provides more than 350 lubricants and greases to the industrial segment. The marine sector, too, has a broad range of products to choose from. This includes marine engine oils, hydraulic oils, gear oils, turbine oils, compressor oils and stern tube oils. SERVO is also meeting the lubricants requirements of the Indian defence forces.

Notable among automobile products, SERVO 2T Supreme, is a new generation

two-stroke engine oil recommended for two-stroke engines in motorbikes, scooters, mopeds and outboard engines. Others in the category are Kinetic Ultra 2T, Bajaj SERVO Gen. 2T Zoom. SERVO 4T is a new generation four-stroke engine oil specially recommended for four-stroke engines in motorbikes and scooters. Indian oils state of the art R&D center t Faridabad, one and only of ts kind, keeps pace with international standards. This is also Indias first in the petroleum industry to have received the ISO 9002 certified lube- blending plants at Mumbai, Calcuttta,Chennai and Grease and at vashi of IOC ensure that SERVO lubricant produced there meet international standards.

SEGMENTATION OF AUTOMOTIVE LUBRICANTS

Automotive lubricant

Engine oil

Gear oil

Break oil

Grease

Coolants

Engine oil

Petrol engine oil

Diesel engine oil

Gas engine oil

Vehicle

2/3 Wheeler

4 Wheeler

2-Stroke

4-Stroke

MUV/SUV

Cars

LCV/HCV

Tractors

INDIAN LUBRICANT MARKET

INDIAN OIL CORPORATION Market Share: 42% Indian Oil Corporation is the largest manufacturer of lubricants in India and is also the only Indian company to figure in Fortunes Global 500 list. Its Servo brand is the most recognized brand in the country. The company operates six refineries, with a total capacity of 24.55 t. and enjoys a market share of 42 per cent in the industry. Incidentally, it is one of the three companies, which has a refining capacity for lube oil base, an input in the manufacture of lubricants. In order to increase its presence IOC has aimed at improving the image of the retail outlets. Despite making a loss with superior industry network and superior backing of infrastructure the company sees no problem in maintaining its status as the leader in the lubricant industry.

TIE UPS: Hyundai Santro, Mitsubishi Lancer, Opel Astra, Daewoo Cielo, Fiat Uno or the Maruti family.

CASTROL INDIA Market Share: 22% Castrol India is the largest player in the lubricants segment. The company has achieved an overall market share of 22 per cent in the lubricants market. The company has seven plants in the country with a capacity of 3 lakh KL and on

the financial front too the companys performance has been impressive. The company has set up a new unit in Silvassa, which manufactures 150 different types of products. The company is also modernizing its other plants. TIE UPS: Company has partnership with leaders like mahindra and Mahindra, Tatas, JCB, Escorts. For the marketing of its lubricants it has tied up with the petrol pump chain of Reliance and Essar, thereby gaining access to a new channel of distribution.

HINDUSTAN PETROLEUM CORPORATION LIMITED Market share:16 % HPCL is the largest player in the lubricants segment. The company has achieved an overall market share of 22 per cent in the lubricants market The HP engine oil product rang covers 300 brands of lubricants, grease and specialties catering to the automotive as well as the industrial sector. The brand names are Milcy and Lal Ghoda. HPCL market now extends to countries like Nepal, Sri Lanka, Bangladesh, and Malaysia.

BHARAT PETROLEUM CORPORATION LIMITED Market Share: 7% BPCL another strong competitors in the lube industry. At present, BPCL sell 125 thousand tones and aims to increase its sale volume to 250 TMT within the next two years. The company offers its lubricants under the brand name MAK

GULF OIL Market share: 3% Gulf Oil International was the first multinational to enter the lubricants market in India. In collaboration with the Hinduja group, Gulf Oil India created a significant presence in a short time; Gulf Oil has grown to be one of the largest corporations in the world, with operations ranging from oil exploration to retailing. On the financial front, the companys performance has been satisfactory. The company has setup its own 75000 tonne blending plant has Silvassa which blends 200 quality lubricants with international formulations. It believes that product and packaging development to be its area of strength. The Gulf Oil plans to tap the market in the east and north-east, and for this it has entered into an exclusive contract with the private blender.

MARKET SHARE IN INDIA

1.5 2.5 2 2

1 1 42

22

16

IOCL HPCL CASTROL BPCL GULF OIL TIDE WATER OIL ELF SHELL IBP PENNZOIL OTHERS

LUBRICANTS MARKRT IN INDIA

RESPONSE RECEIVED : I visited many RETAIL OUTLETS in Lucknow. Where I met different types of end customer of lubricants. The feedback and the information I received from customers was filled in the questionnaire. Persons I met in the field they give me good response about the servo lubricants and gave me some valuable schemes. I analyzed in the market that there were different types of lubricants users in the market. I observed that most of the customers are quality based. They dont want any schemes. Most of customers are well influenced from Castrol and bp brand.

LUBRICANTS USED BY PEOPLE: % Distribution of Lubricants used by customers during the survey
others 10%

mak 17%

servo 33%

castrol 40%

Why Customer Use a Particular Lubricant:

people are using Castrol brand, because of quality. 50% say if you improve your quality, then we will try to use servo. Give good quality at low price.

HOW MANY CUSTOMERS SWITCH TO SERVO BRAND % of customers who switch to servo brand

30% servo others 70%

In market survey I found that many customers wish to use servo. Almost 70 percent of people say yes and 30% people say no. In the market I realize that people are not aware from servo brand. They are well influenced from Castrol and BP product. The reason behind the non-awareness of servo is improper marketing and hence company must try to improve it.

CONCLUSION:
. The lubricants industry in India is one of the few sub-sectors of the petroleum industry, which was opened out completely to private and foreign companies. SERVO is Indias No.1 lubricants brand not only in terms of sales but also in terms of quality and range.. In urban market, whenever a customer goes to the retail shop, he is facing many brands of lubricants, and then he gets confused. Sometimes, he purchases duplicate lubricant. So company has to spend more on promotional schemes, advertisement campaign and awareness programs. There is another problem in lube industry. It is facing competition from local brands which are easily available in the market, so servo need to Increase in activities of customer and mechanic awareness through more advertisement and mechanics meet at regular interval which helps customers to choose original product.

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