Indian oil out lets and Bazzar Traders on servo lubricants at IOCL

Sl NoContentsPage No

1Executive Summary

2.Company Profile

3.About The Project

5.Data analyses and Interpretations

6.Suggestions

8.Conclusion

9.Bibliography

10.Annexure

Executive Summary

Executive summary

The project assigned to me is to collect the information about the Indian oil out lets and Bazzar Traders on servo lubricants at IOCL Belgaum. The project is carried out in Belgaum .

This project report is on A detail study on Indian oil out lets and Bazzar Traders on servo lubricants at IOCL Belgaum.

It consists of two parts.

The first part begins with the detail study of the organization. About Its establishment and progress. This part also includes the product information of iocl.

The second part of the report consists of introduction to Theoretical background of project which gives the basic concept and theoretical study of the subject.

And also this second part includes methodology adopted sampling size sampling plan, and sampling process and determination level of the Indian oil out lets and Bazzar Traders of product services they provide to its customer as the problem definition.

This report also consists the analysis part and ends with findings and recommendations for problem defined.

Objectives of the project:-

1. To study the product movements in the retailers shelves of servo lubricants.

2. To know the contribution of servo lubes to the total sales of the retailer(RO,Bazzar traders)

3. To find out factor that influences a retailer to stock and sell more of particular product brand.

4. To know the purchase frequency and order size.

5. To find out the satisfaction level of retailers with the benefits that they are getting from the different companies

.

Sampling size:

A sample size of 100 chosen for the purpose of the research.

Methodology

The method adapted to this project is direct interview method, where the information will be collected by direct interaction with customer through.

Open ended questions

Close ended questions.

Analysis

From the survey conducted whether information is collect that the information is analyzed and interpreted for giving the suggestions and recommendations.

Conclusion

From the above analysis the conclusion is given.

Recommendation

Recommendation are given based on the interpretation of the analysis and the findings.

Limitations

1) It is not exact science, so we cannot accept 100% results, so only justified solution one gives.

2) It is conducted in open market place.

Company Profile

COMPANY PROFILE

In the year 1959, Indian Oil Company Limited was established, later in the Year 1964; Indian Oil Corporation was formed with merger of Indian Refinery Limited which was established in 1958.

Indian Oil account for 56% petroleum products market share, 42% national refining capacity 67% downstream pipeline thought capacity.

Indian Oil control 10 of Indias 18 refineries with a current combined rated capacity of 49-30 million metric tons per annum (MMTTA) or 990 Barrels per day (BPD).

These include subsidiary Chennai Petroleum Corporation Limited and Bangaigaon Petroleum Corporation Limited. It owns and operates the countrys largest network of cross-country crude oil and product pipelines pf 7170 Km. with the combined capacity of 52.75 MMTPA.

Indian Oils country wide network of about 21 thousand, sales point is backed for supplies by its extensive, well spread out marketing company with a nation wide retail network of over 2000 sales point.

Indian Oil reaches Indane cooking gas to the door step of 35 million households in million over in 2000 markets through the countrys largest network of over 4100 distributions.

The country leading Servo brand lubricant from Indian Oil with over 40% market share and 450 grades are sold through 8000 retail outlets besides a countryside network of bazaar traders.

Indian Oil and Academy Company with score full fledged training centers across the country building competency, confidence and capability to face the advantages of the market plays the challenges of the market place.

VISION:

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

MISSIONS:

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 stake holders.

To attain leadership in developing, adopting and assimilating state of the art technologies 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 standard of business ethics and total quality management for a strong corporate identity and brand equity.

To help enrich the quality life of the community and preserve ecology balance and heritage through a strong environment conscience.

OBJECTIVES OF IOCL

To serve the national interests in the oil and related sector in accordance and consistence with government policy.

To ensure and maintain continues and smooth supply of petroleum product by the way of crude refining, transportation and marketing activities and to provide appropriate assistance to the consumer to conserve and use petroleum inefficiently.

To earn a reasonable of interest on investment.

To achieve higher growth through integration, mergers, acquisitions and diversification by harnessing new business opportunities like petrochemicals, power, lube business, consultancy, abroad and production.

To optimum utilization of its refining capacity and maximize distillate yield from refining of crude to minimize foreign exchange out go.

OBLIGATIONS OF IOCL

Towards customers and Dealers:

To provide prompt, courteous and efficient service and quality products at fair and reasonable price.

Towards Suppliers:

To ensure prompt dealing with integrity, impartiality and country and prompt ancillary industries.

Towards Community: To develop techno-economically viable and environment friendly products for the benefit of the people.

To encourage progressive indigenous manufacture of products and materials so as to substitute imports. To ensure safety in operations and highest standard environment protection in its manufacturing plants and township by taking suitable and effective measures.

Towards Employees:

Develop their capacity and advancements through appropriate training and career planning.

Towards Defense Service: To maintain adequate suppliers to defense service during normal and emergency situations as per their requirement at different locations.FINANCIAL OBJECTIVES

To ensure adequate returns on the capital employee and maintain a reasonable annual dividend on its equity capital.

To ensure maximum economy in expenditure.

To manage and operate the facilities in efficient manners so as to generate adequate internal resources to meet revenue costs and requirement for the project investment with out budgetary support.

To develop the long term corporate plans to provide for adequate growth of the activities of the corporation.

To endure to reduce the cost of production of petroleum by means of systematic cost control measures.

ORGANIZATIONSTRUCTURE

COMPETITION ANALYSISIn todays world we are seeing everywhere competitions, while from the small shop to big company so when I consider to IOC, IOC has many competitors like HPCL, BPCL, RELIENCE etc.

In order to get the winning edge, we need to strive for excellence, not perfection. Striving for excellence is progress, because there is nothing that cannot be done better or improved.

So, achieving success does not mean gaining value but gaining everything by defeating the one, who cannot do what do what the things we have done. So its matter of competition

IOCL has a very good market share that signs the best quality and best service. It is shown with the aid of below charts MARKET SIZE:

PRODUCT PIPELINE:

CRUDE PIPELINE:

P R O D U C T P R O F I L E

SERVO Indian Oils SERVO is India's largest selling lubricant brand. SERVO range of lubricants enjoys approvals from major Original Equipment Manufacturers (OEMs) including new generation cars. 9,000 Retail Outlets and a countrywide network of SERVO SSls and SSAs Bazaar traders offer SERVO range of lubricants to customers. The SERVO range of lubricants is used in almost every application covering automotive, industrial and marine sectors. SERVO range of lubricants is fast emerging as a Global Brand with wide acceptance in UAE, Malaysia, Mauritius, Bangladesh, Bahrain, Sri Lanka, Nepal, Yemen, Kenya, Kuwait, Burkina Faso, Reunion Islands and other markets. SERVO has been designated as a SUPERBRAND. SERVO has genuine oil tie ups with a wide range of companies like Hyundai, Maruti, Bajaj, and Lancer. Anil Kumble, the ever-dependable sporting icon is SERVO Brand Ambassador.

Developed exclusively at Indian Oils world-class R&D Centre at Faridabad, there is a SERVO lubricant for virtually every single application. With over 42% market share and 450 grades, the country's leading SERVO brand lubricants from Indian Oil are sold through over 8,100 Indian Oil petrol/diesel stations, over 1,300 SERVO Shops and a countrywide network of bazaar traders.

These lubes are manufactured at different locations administrated at the head office marketing mumbai. Form here it reaches the various cities of the regions through road transportation.

The storage of lubes is done in the lube godawn or open space. The entire products are duty paid products.

In godown the products are packed in the cartoons, where as the lubes in the barrels are stored are stored in the open space.

Even a sales officer is being appointed, who is in charge of these lubes. Lubes in which the depot is dealing as follows.

1. ULTRA 30

2. GEAR HP-140

3. GR-SUP 90

4. 2T SUPREME

5. 2T SUPREME

6. 2T SUPRM

7. ZZ- HP 80 W

8. GR HP 90

9. GEAR HP-140

10. GR-SUP 90

11. 2T SUPREME

12. 2T SUPREME

13. 2T SUPRM

14. MIL-C 30

15. MIL-C 40

16. PRIDE 30

17. PRIDE 40

18. GR- HP 80 W

19. GR HP 90

20. GEAR HP-140

21. GR-SUP 90

22. 2T SUPREME

23. 2T SUPREME

24. 2T SUPRM

25. 2TKH

26. SBF

27. BAJAJ 2T Z

28. 2T ULTRA

29. S.4T

30. SYS. HLP68

31. ELGIAIRL

32. TR-FLD-A

33. TR C4SAE30

34. SMG20W40

35. PCF415W40

36. MARUTI ZEN SWOT Analysis of Indian Oil Corporation for Petroleum Business

1. Strengths:The Government protection in the past has resulted in IOC becoming a gaint in this sector. The large infrastructure created, has given it a advantage that can help it to face the opening up of the sector.

Flagship Company: It has been decided that ONGC, IOCL and GAIL would be the flagship companies of the government and government would continue to hold minimum of 51% equity in these companies. This keeping in view the importance of maintaining continuous and uninterrupted supplies of petroleum products to strategic sectors like defense forces and to the in accessible and far-flung areas.

Joint Ventures: In keeping with its core strength of petroleum, the company has made a number of joing ventures to gain competitive strength in wake of liberalization. This has resulted in synergy of IOCL and the Joint venture Company by increasing sharing of knowledge and venturing into new markets to gain competence in global economy.

16th largest petroleum refining company in the world.

No 1 company in Asia Pacific region.

Its been ranked 186th company among Fortune 500 companies

58% of market share in retailing

45% of refining capacity.

Owns 82.56% of the total pipeline capacity

Approximately 70.000 outlets

2. Weakness:

The bottlenecks involved with the government functioning have to be faced by IOC too. The requirements of aggressive and quick decisions making required in the wake of competition from foreign as well as national companies will be felt strongly as slow government processes can have short term as well as long term consequences.

The area given to sales officers in retail marketing is very big as compared to other majors.

Has only 40 Mt capacity

However the prior refining yield of around 70% due to old and smaller refineries remains a cause of concern.

Government control in the functioning.

3. Opportunities: The Indian Oil sector is at the threshold of decontrol the government in gradually slackening controls over the give products (MS, HSD, ATF, SKO & LPG) that contributes 70% of the volumes.

International profits: Post deregulation, Indian refining margins would trap global refining margins. These margins, however would be relatively insulted because of tariff barriers and transportation costs. Marketing margins would continue to remain under administrator pricing till F.Y.2003. In F.Y. 2004, IOC has seen another quantum jump in earnings with decontrol of marketing / distribution network.

Large capital resource: IOCL is expected to be one of the largest beneficiaries of deregulation process especially after the redemption of oil bonds, which will create considerable cash glows for the company.

Less Government control: While retention pricing for refineries has been abolished w.e.f. Apr. 98, controls on 5 products (MS, HSD, LPG, SKO, ATF) which account for over 70% of volumes, continues. Profits of establish PSU refineries will low cost of production will jump and new refineries will be badly hit due to higher fixed cost outgo.

Post deregulation, Indian refining margins would track global refining margins

Generation of funds

The government regulations

Owns 82.56% of the total pipeline capacity.

Demand in 2006-07, 180 Mt.

Demand in 2024-25, 370 Mt.

4. Threats: The opening up this sector w.e.f. April 2001 has brought the entry of the multinational and private national companies Like Reliance, MRPL, Essar, and Shell in this huge market. The huge resources, experience at the disposal of the multinationals, the attack of smaller companies at the niche markets will aim at taking the share of the leader IOC. The threat is also from the increasing .market of LNG / CNG as substitute.

Competition from the regular competitors

Deregulation will cause competitions from loyal players.

Competition from foreign players

CNG / LNG to become the fuel of the future.

Increase in Price hike in International Market Shell has entered petrol marketing, has done an investment of Rs. 20 Bn ABOUT THE PROJECTTHEOROTICAL BACK GROUND FOR THE PROJECTIn this project I wanted know what are the tools used to improve the sales Belgaum. It is a managerial process of developing and maintaining a viable fit between the organizations, objectives, skills and resources and its changing market opportunities. The aim of strategic planning in my project is to shape and reshape the companies businesses and products so that they yield target profits and growth by increasing sales.

Today every company has its own marketing plan, without this no company will survive in this competitive market. This marketing plan can be understood by studying various situations that are mentioned below

Market Situation.

Companies Situation.

Competitors Situation.

Macro Environment.

MARKET SITUATIONThe market situation of Belgaum is unstable and competitive as it is a large lubricant market with many brands. Most of the area of these places are occupied by brand leaders. As there is a continuous entry of new brands of lubricant the market it becomes very difficult for the customers to buy the lubricant.

As it is a competitive market large number of dealers are authorized of brand leaders, therefore large area is occupied by these brands. Since there is a large demand for these brand leaders in these places and also customers prefer its quality product.Especially the market situation in Belgaum is unstable and the sales are also faster, due to huge sales promotional activities by others brand has made its name in Belgaum.

Even though its prices are high customers prefer to buy these and also the dealers dont get much margins, bonus facilities from these companies yet they sell these brands faster then other brands.,

COMPANIES SITUATIONThe company has brand in the market with maximum loyal customers that has the larger market share compare to competitors only the demand and supply should match which will help to maintain and increase the sales

COMPETITORS SITUATION In the total dominated market of Belgaum a large number of companies are existing. Each competitor is using various strategies to make its brand image to acquire market share.

Actually what is a BRAND? A brand is a name. Term, sign, symbol or design or a combination of them intended to identify the goods or a service of one sellers or group of sellers and to differentiate them from those of competitors.

A powerful brand name is said to have high brand equity ie, a brand is a asset in so far as it can be sold or bought for the price. Many lubricant companies are basing their growth on acquiring and building rich brand portfolios. The popular brand in Belgaum is because of its service, demand, easily available. This company has made use of marketing strategies continuously because of which their brand is popular.

MACRO ENVIRONMENT SITUATION The Macro Environment trends include Demographic, Economic, Technological, Political, Social and Cultural that bears on the product line future.Since most of the customers are un aware of total products provide by servo they face the adverse affect of macro environmental factors.

To avoid this problem many competitive companies are demonstrating the use of there lubes with there benefits and other techniques to increase they sales and make a brand name in the market.

PROBLEM DEFINITION

Product movements in the retailers shelves of servo lubricantsOBJECTIVES

1. To find out factor that influences a retailer to stock and sell more of particular product brand.

2. To know the purchase frequency and order size.

3. To find out the satisfaction level of retailers with the benefits that they are getting from the different companies

METHODOLOGY ADOPTEDResearch Design: It is a systematic gathering of information from respondents for the purpose of understanding or predicting some aspect of the behavior of the population of interest. A personal interest was made to know various dealers to get the source of Information.

The Research Design category which is related to my project is

DESCRIPTIVE RESEARCH DESIGN:Descriptive research is focused on the accurate description of the variables in the problem model. For this approach various questions are made to each dealer, to get accurate information. The survey research consists of Questionnaire design. Questionnaire administration. Sampling and Data collection.

Questionnaire Design:

A Questionnaire is simply a formalized set of questions for eliciting information. Its function is measurement and it represents the most common form of measurement in marleting research. In my project questionnaire I used Structured questions and involved directness so that me dealers are aware of tlie nature of tlie survey. In my questionnaire I have used Open Ended as well as Closed Ended questions..

Interview:Interviews are classified according to their degree of structured and directness, these both are present in my project. I conducted Personal interview as Personal interviews are widely used in marketing research. I asked the questions to the dealers in face-to-face situation so that I could get detail information regarding lubricants.

SAMPLING PROCESS

DEFINE POPULATION : A population must be defined in terms of elements sampling units, extent and time, all purchasing agents in companies and government agencies that have bought any of our products in the last one year

Element (Dealers

Sampling (Dealers sub-dealers Bazzar Traders

Extent (Belgaum

Duration (4th December 2006 to 20th April 2007

SAMPLING FRAME:A sampling frame is a mean of representing the elements of population. A perfect sampling frame is one in which every element of the population is represented once.

A sampling frame here is a list of all the lubricants dealers in the market of Belgaum.

SAMPLING UNIT: The sampling unit is the basic unit containing the elements of the population to be sampled. They are the dealers who are stock and sell lubricants.

SAMPLING METHOD:The sampling method is the way the sample units are to be selected. The method chosen for my project is Non-Probability method.

Define: A probability sample is one in which the sampling unit are selected by chance and for which there is known chance of each unit being selected.

Define: A non-probability sample is one in which chance selection procedures, are not used.

SAMPLING SIZE:

The sample size of my project is 100

SAMPLING PLAN:The sample size of my project is 100. I have conducted interview to each of the respondent with both random and stratified method.

SELECT THE SAMPLE:In my project the actual selection of sample are the Dealers multi brand outlets. This required a substantial amount of field work, particularly personal interviews are involved. The sample selected by me was from Belgaum.DATA COLLECTION METHOD:The main data collection method adopted in my project is structured and direct personal interview. For this I had got the addresses of the sample size from the Company..

SECONDARY SOURCES:Define: Data developed for some other purpose other then helping to solve the problem at hand.

During defining the problem the secondary data was collected from the dealers and some information was also collected from.

The company officers of Indian oil corporation

Internet.

Company brochure.

PRIMARY SOURCES:Primary data arc those which are collected specifically for the research

situation at hand. Depending upon the objectives constructed and the information through questionnaire.

Dealers.

company executives

SECONDARY SOURCES:To get the primary data like the addresses and phone numbers of the Dealers, multi brand outlets I have used the following secondary data sources.

Yellow pages.

Internet.

Data analyses 1. From how many years have you been dealing in this lubricants business?

From the above table and chart it infer that 35% dealers are dealing with the lubes form more than 5 five years . 33% of dealers started dealing with lubes business from 3-5 years and 30% of dealers started with lubes business 1-3 years, only 2% of have stared their business newly that is less than one years. 2. Do you stock only one brand?

From the above table and chart revels that 80% of dealers are dealing with more than brand and only 20% of dealers are dealing with one brand.3. Which company lubricants do you deal in?

Brand namesyesno

Servo9010

HP6139

BP6139

Tata1882

Others6832

From the above tables and charts it revels Indian oil servo lubricants has the maximum number of dealers 90%.other brands comes second with 68%.HP & BP comes third with 61% of dealers. 4. Does advertisement play a major role in deciding brand?

From the above table and chart revels that 70% of respondents say advertisements play important role in deciding brand and only 30% say no.5. Do you recommend any specific brand to your customer?

From the above table and chart revels that 60% of dealers recommend to customer to specific brand were as only 40% dealers dont recommend about brand.6. What is the contribution of servo lubes total sales?

From the above table and chart revels that 25%-50% total sales of servo contribute to 41% of dealers. which represents the importance of holing stock of servo lubes. 7. Rank the factors you consider to hold stock and sell?

From the above table and chart revels that ranks given to service consideration to hold the stock and sell servo lubes 4% of respondents rated as 1st.

From the above table and chart revels that ranks given to discount as consideration to hold the stock and sell servo lubes 24% of respondents rated as 1st.

From the above table and chart revels that ranks given to Quality consideration to hold the stock and sell servo lubes 2% of respondents rated as 1st.

From the above table and chart revels that ranks given to demand consideration to hold the stock and sell servo lubes 7% of respondents rated as 1st.

From the above table and chart revels that ranks given to promotional schames consideration to hold the stock and sell servo lubes 1% of respondents rated as 1st.

From the above table and chart revels that ranks given to margin consideration to hold the stock and sell servo lubes 37% of respondents rated as 1st and 2nd .

From the above table and chart revels that ranks given to credit facility consideration to hold the stock and sell servo lubes 27% of respondents rated as 1st.RanksFactors

ServiceDiscountQualityDemandPromotional SchemesMarginCredit facility

1st4240713727

2nd8242713721

3rd5343522229

4th19516322008

5th23426202304

6th206241424210

7th21329152921

From the above table and chart revels that ranks given to margin consideration to hold the stock and sell servo lubes 37% of respondents rated as 1st and 27% of respondents rated as 2nd rank for credit facility. 24% of respondents rated as 3rd rank for Discount.

9. How do you rate the satisfaction level with reference to service provided by the different companies?

From the above table and chart revels that the satisfaction level with reference to service provided by the different companies compared with servo is 41% of respondents replied as poor. only 16% of respondents replied as very good.

From the above table and chart revels that the satisfaction level with reference to service provided by the different companies compared with BP is 6% of respondents replied as poor. only 20% of respondents replied as very good.

From the above table and chart revels that the satisfaction level with reference to service provided by the different companies compared with HP is 13% of respondents replied as poor. only 15% of respondents replied as very good.

From the above table and chart revels that the satisfaction level with reference to service provided by the different companies compared with others is 3% of respondents replied as poor. 26% of respondents replied as very good.

Suggestions

Suggestions1) Since supply seems to be the one of problems stocks registers should be the provided to the dealers so that they can maintain records of all inventory and sales thus it becomes easier to monitor the supply.2) Dealer ego massaging since dealer loyalties seem to be low is imperative that they be given free gifts and prize be offered for reaching the targets, also gifts be every year to the dealers to distribute to the costumers.

3) Dealers should given training on the art of pushing products to the costumers.4) Servo lubricants has good band name in market with good number of dealers but with reference this project it was found that servo lubricant contribute 50% of sales to their total sales .

5) Comparing to dealers of bazzar traders Indian retail outlets (petrol bunks of iocl) less contribution towards servo lubricants company should inspect and find out the reason in decline of servo at Indian retail outlets.CONCLUSION

CONCLUSION

The journey of a thousand miles begins with a single step and this step has been taken by Indian Oil Corporation Limited by being the only company to hold the flagship of the country.

Indian Oil Corporation is one of the fortunes 500 Companies of the World and ranks 170th in the list. Growing demand, a turbulent supply market lack of spare production capacity and continual turmoil in several oil-producing countries pushed up crude oil prices to record levels beyond the US $ 50 per barrel mark.

In order to be the brand leader the company should maintain good relationship with channel partners. They should motivate and train the sales persons to increase the sales.

ANNEXURE QUESTIONNAIRE

Name of the Dealer :

Type of outlet: Indian oil retail outlet(. Multi brand outlet(. Others ( Name of the concerned person:

Address:

Contact No:

E-mail ID:

Office No:

Ress No:

8. From how many years have you been dealing in this lubricants business?

Less than one year (.

1-3 (.

3-5 (.

More than five years (.

9. Approximate turnover of all lubricants?

RS:-________

Litters:_______

10. Do you stock only one brand ?

Yes (. No(.

11. Which company lubricants do you deal in?

Servo ( HP ( BP ( Tata ( others_______________

12. Rank the factors you consider to hold stock and sell?

Service [ ] Discount [ ] Quality [ ] Demand [ ] Promotional Schemes [ ]

Margin [ ] Credit facility [ ]

13. Does advertisement play a major role in deciding brand?

Yes ( No(14. What kind of promotional activities do you expect from the company to increase your sales ?

_______________________________________________________________

15. Do you recommend any specific brand to your customer?

Yes( No(

If yes, which brand? ___________

9) What is the contribution of servo lubes total sales?

_______________________________________________________________

10) Are you satisfied with service provided by different companies?

Company Name Very good Good Ok poorWorst

Servo

BP

HP

Others

THANK YOU

BIBLIOGRAPHYReferences: www.iocl.com

www.iocxtrapower.com

www.petro.nic

www.indianpetro.com

Marketing Management: Philip Kotler

Marketing Research; Tull and Hawkins

Head Office (Mumbai)

Regional Office

Corporate Office (Delhi)

Karnataka

Kerala

Tamil Nadu

Andhra Pradesh

West Region Office

East Region Office

South Region Office

North Region Office

Bangalore

Belgaum

Hubli

Shimoga

Raichur

Karwar

Bidar

Mangalore

Mysore

Bijapur

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