Total Lubricants - Marketing strategy.docx
Short Description
Total Lubricants - Marketing strategy college project...
Description
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Objectives o
Brand Health
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Increase Awareness from 60% to 70%
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Strategy
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Effect and outcome
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Increase Market Share from 3% to 3.2%
Effect and outcome
Budget allocation
Current Scenario
Marketing Activities
ATL
[TOTAL – MARKETING STRATEGY]
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Media
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Creatives
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Activities
BTL o
Retailers
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Consumers
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Corporate Tie-Ups
Budget Allocation
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Introduction India lubricant segment volume sales reached 2.6 million tonnes with year-on-year growth of 4% in 2010-2011. The low market growth has been primarily attributed to high performance long lasting lubricant and superior engine technology availability in domestic segment. Automotive is the biggest segment accounting for 60% (2009: 63%) of total volume sales in India (2011). India lubricant market is highly consolidated with four largest manufacturers controlling 90% of market share in 2011. Indian Oil Corporation Ltd (IOCL) is the biggest producer of lubricants in India with market share of 40%. Majority of government controlled enterprises IOCL, BPCL and HPCL focus on distributing lubricants from 35,000 fuel stations in India. Each one of the vast contingent of 22 Multinationals and a total of 80 big & small players are vying for a pie of Rs.5,500 Crore market Worldwide established brands, some of them albeit new to India, like Shell, Mobil,Caltex, Elf, Pennzoil are fighting it out with established Indian brands like SERVO & others to establish their foothold in the 6th largest lubricant market in the World. Compared to the average World consumption of 35 Million tonnes per annum & Asia-Pacific region consumption of 7.5million tonnes, the Indian lube industry with annual demand of 1 million tonnes is just behind Japan and China in Asia having a demand growth rate of 4% compared to the World growth rate ranging between zero to 2%. That is the lube industry in India today. Prior to 1992 the lube industry in India was controlled by the 4 major Public Sector Oil companies namely Indian Oil, HPC,BPC & IBP and a handful of private companies like Castrol, Gulf, Tidewater & others. With the distribution & canalisation of base oil import being controlled by the Government of India, the PSU Oil Companies controlled 90% of the market share. The de-canalisation of the lube base oil imports in 1993 by the Govt. of India followed by reduction of import duty on lube base oils from 85% to 30% and gradual scrapping of administered pricing observed the announcement of almost a new lube venture every month during 1994. Most of the new entrants formed associations with Indian companies both in the Private & Public sectors. All these new entrants are targeting for a very small share of the market considering that even 1% market share means a sale of Rs.55 Crores. The Indian Oil controlled 54% of the lube market out of total PSU's market share of more than90% during the year of 1991-92. The Government policy of deregulation followed by entry of multinationals through JVCs had its effect on the market dominance of PSUs. This has been followed by sudden entry of lot many players, each one claiming to have some international collaboration and a `foreign' brand name. This had its initial impact and illusions in the market and the market became more volatile. During these phases marketing channels of distribution had drifted from petrol stations to bazaar trade.
Major players in Lubricant Business Companies like Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL), and Indian Oil Corporation (IOC) held more than 75 percent of the market share C.I.M.R Class M2 – Group No. 4 | Error! No text of specified style in document.
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In this pie the share of IOCL is maximum approx 42 % (after the merger of IBP now this share has been increases to the 43.5 %). Castrol is enjoying 22% of the total 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. Domestic and multinational companies are trying to increase their market share in Indian market. The list of the other private players in Indian lubes Industry are -Tide Water Oil Co (India) Ltd , Balmer Lawrie & Co Ltd , Castrol India Ltd, Total Group India,Apar Industries Ltd , IPOL lubricants , Savita group, Valvoline Cummins Ltd (VCL), FuchsLubricants (India) Pvt Ltd, Gagan Gases Ltd, Ganesh Benzoplast Ltd, Gulf Oil Corporation Ltd,The Andrew Yule Group, Cenlub Industries Ltd, Daya Lubricants Pvt Ltd, Dropco Multilub,Systems Private Ltd, Emulsichem Lubricants Pvt Ltd, Frigmaires Grease, Global TechnicalServices , Monisha Petrochem Pvt Ltd , OKS lubes, Pentagon Lubricants, Raj Group, Sri Narasimha Petro Products, Witmans Group.Total production of automotive lubricants in India is approximately 8 to 10 percent of globallube production. Unlike other countries where lubricant demand has witnessed stagnation, theIndian market has been growing at approximately 7 percent per annum for the past 2 years. The public sector contributes to over 60 percent of the revenues for this market. MNC‟s have 5 percent market share and the remaining share is held by the unorganized sector. Automotive lubricants are further divided into diesel lubes and petrol lubes. Diesel lubes comprise 70 percentof the market and petrol based lubricants cover the rest. As diesel lubes are used by commercialvehicles, which have to cover greater distances, their market share is higher. Engine oilconstitutes around 83 percent of total sales volumes. Gear oils, transmission fluids, hydraulic brake fluids, and engine coolants contribute to the balance.
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Marketing Strategy used by Totals Competitor: Today the marketing in lubricant industry changed as private player come in 1991 after LPG model come in exist with entry of foreign players. Differentiation become more important to differentiation your product from other and make it brand .some of marketing strategy used by lubricant companies are as follows. 1. Castrol: Castrol which market leader in Indian automotive industry has doing various marketing activity in 2011 Brett lee signed as brand ambassador for Castrol India.
Castrol’s Cricket : Castrol cricket is event hosted by Castrol in which various award are given in cricket for excellence , The Castrol Awards for Cricketing Excellence in 2011 were given away at a star studded awards ceremony held in Bangalore today. The ceremony was C.I.M.R Class M2 – Group No. 4 | Error! No text of specified style in document.
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attended by eminent cricketers like Erapalli Prasanna, Ajit Wadekar, Syed Kirmani, Gundappa Vishwanath, Sachin Tendulkar, Rahul Dravid, Virender Shewag, Gautam Gambir, Venkatesh Prasad, Ravinchandran Ashwin, Suresh Raina, Virat Kohli, and junior cricketer Unmukt Chand.
Castrol Football : Castrol football is same like cricket event where they take official sponsorship for FIFA world cup and Euro Championship Casrtol has various TVC on GEC weekly basis which focuses on primarily quality recent add on Castrol magnet is as follows ,
Same on AIR with Big FM and Radio Mirchi add on Castrol as radio users increasing day by day it will be useful for them tap that space On social media Castrol is active company has official page on facebook with 2 lakhs of liking product and services offered by them. In below the line activity they have come with up hoarding banner at important places roadshows and sponsorship with BMW as Fuel Partner , Castrol has wide range of retailer there they have kiosk and stickers , in every tier 1 and tier 2 same on national highways they have hoarding .
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2 .IOCL : Indian oil company is PSU company they are not too much aggressive in advertising, they have good TVC on Air GECs but they specially focuses on their retailer and Petrol Pumps for BTL activity IOCL have kiosk in various cities at petrol pump where vehicle checking in which fuel checking refill happens it is nothing but part of there BTL activity, They also have TVC of save energy save fuel which best message they communicate .
3.Gulf Oil : Gulf oil is joint venture between Hinduja Group in India it has wide range of product with M. S. Dhoni as brand ambassador, gulf has organize many sports event like monsoon rally , dirt rally , Moto Bike as part of there ATL activity. In BTL activity they promote their brand in rural and urban area through there retailer bye Stickers, pamphlet and Hoarding Gulf oil is IPL sponsor for CSK so they recall there brand through there logo on T shirts of CSK player same time Continuous TVC on Channels
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4.BPCL: Bharat petroleum is PSU it is second largest in revenue in india after IOCL in terms of Sale , BPCL has active on AIR that‟s on Radios as it is in lubricant and Energy it promote brand as indias trusted energy supplier , BPCL has hoarding in cities and On their dealer petrol pumps , they made it kiosk whole painted in blue and yellow colour with Bharat Petroleum name on it.Roadshow conducted on National Highway for cause of Fuel Efficiency and Global warming. 5.HPCL: It is other major competitor which has large market share and it is PSU company which market his product not much aggrevisely but it has strong distribution network so under that network only they promote , There is no Air campaign for HPCL Majorly there are involve in BTL activity like road show and hoarding stickers . HPCL has wide range of Project which related to CSR activity like Child right and Free Education.
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Marketing Campaign ATL Activities Oil Company/State/UT IOCL HPCL BPCL Others RIL/Essar Number of petrol pumps Oil/Shell/ONGC selected to place hoardings Punjab
1539 300
200
50
8
Haryana
888
250
200
50
6
-
-
-
0
Andhra Pradesh
1225 -
-
-
0
Arunachal Pradesh
66
-
-
-
0
Assam
634
-
-
-
6
Bihar
784
-
-
-
6
Chandigarh
18
-
-
-
4
Chhatisgarh
236
-
-
-
4
Daman & Diu
14
-
-
-
0
Delhi
90
-
-
-
8
Nagar 11
-
-
-
0
Gujarat
1274 -
-
-
5
Goa
11[4] 27[5] 22[6] -
0
Himachal Pradesh
150
-
-
-
0
Jharkhand
348
-
-
-
0
Jammu & Kashmir
187
-
-
-
0
Karnataka
1169 -
-
50
4
Kerala
829
-
-
-
4
Maharashtra
1242 -
-
-
8
Meghalaya
109
-
-
0
Andaman and Nicobar 7 Islands
Dadra Haveli
and
-
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Manipur
34
-
-
-
0
Madhya Pradesh
854
-
-
-
6
Mizoram
28
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-
-
0
Nagaland
52
-
-
-
0
Orissa
533
-
-
-
4
Pondicherry
50
-
-
-
0
Rajasthan
1296 -
-
-
6
Sikkim
45
-
-
-
0
Tamil Nadu
933
-
-
-
4
Tripura
53
-
-
-
0
Uttarakhand
331
-
-
-
0
Uttar Pradesh
3038 -
-
-
8
West Bengal
828
-
-
6
-
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HOARDING: RS 30000 /pm/per hoarding (Average)
Places of display: All over India
North: There will be around 100 hoarding in North India including states like U.P, Bihar, Delhi, in tier 1 & 2 cities, and on national highways . South: South region has well connectivity in terms of roads but as compared to North India in terms of transportation it is less diversified. 70 hoardings in Tier 1 & 2 cities will be allocated on prime location (average one hoarding per city) and District is applicable, and on national highways . West: West region is a more industrialized area including Maharashtra, Gujarat. Between 80- 100 hoardings should be placed in Tier 1 & 2 cities in west region at prime location to create a buzz about the product , National highways like Mumbai – Nashik, MumbaiBengluru, Mumbai- Ahemdabad will also be covered in this campaign East: East is the least connected in terms of connectivity by roads. It comprises of extremely hilly areas but West Bengal along with Calcutta as Metro cities we have to allocate 30 hoardings in Tier 1 cities only , same in Assam , Mizoram ,Meghalaya.
So total allocation to hoardings = 1 CR Television advertisements GECS- 5channels : Sony , Star, Colors, Doordarshan, Zee are 5 main GECS on which we will be
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showcasing TOTAL television ads for a duration of 30 secs each. Sports: Espn, Star, Ten sports will have 30 sec ads. Regional Channels: Regional Language matter a lot in terms of advertising a product in a particular area as it would be showcased in the regional language of the people which will attract them towards watching it and create a mass appeal. The ads will be showed in 5 languages only. We are appointing “Lakshya” as our add agency which will create the media spends for Total & the Ad agency used will is Taproot for the creatives Budget: overall 6.5 crore is allocated for TVC‟S in which 1 crore to Lakshya as consulting fees and 5O lacs to Taproot Agency for Creatives.
Radio: The Total Quartz Safety Month campaign has been designed to be led by the 92.7 BIG FM RJ‟s advocating and initiating change required in the mindset of people, when it comes to road safety rules and garnering their support. The campaign will meticulously unfold in four distinct phases: Phase I – Safe Driving; Phase II – Don‟t Talk While Driving; Phase III – Don‟t Drink and Drive; Phase IV – will see the culmination of the campaign through the ‘Total Quartz Safety Run’ which will see the participation of the local populace in each of the cities. Budget: 70 lakh for overall budget for AIR . Going by Estimated ad rates for hoardings (http://portal.bsnl.in/bsnl/asp/content%20mgmt/html%20content/hotnews/hotnews75268.html)
Social Media Facebook
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Strategy Welcome Tab Will feature a Display of the many features of Total Oil and lubricants Ask users to Like – Product Listing, Customer Care, Billing Services, Bill Station Tab Google Map to showcase the large coverage of Oil Stores Testimonial Tab Customer Testimonials of various users talking about Total Lubricants Calculator App To showcase the amount of money you save with our superior products
Twitter
Strategy for content •
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General Tweets –
driving tips
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Safety Tips
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Oil and lubricant filling
Customer Service Replies –
Thank you for making Using Total oil and give us your feedback on its performance in your engines
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Company News
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News From The Industry
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Try and counter negative feedback from customers
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SlideShare & Scribd •
Upload Corporate Profile presentations and Tips from Total Lubricants
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Upload Corporate Social Responsibility Initiatives by Total Lubricants
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Create Safety Tips and Cooking tips branded By Total Lubricants
Youtube & Flickr •
Channels will be created and customized
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Content will be Published as and when available
Campaign Name
Total Lubricants – Brand awareness & Market Share
Run Dates
March 2012- Feb 2013
Company
Total Lubricants
Media to Use
Sales force Cold calling Sales activities Relationship activities Telemarketing
2.0 Cr 0.5 CR 1.5 CR 0.5 CR 0.5 CR
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Outbound calling Inbound call handling Internet Online advertising Email campaigns Organic search Paid search Webinars Viral campaigns Ongoing email newsletters Social media Trade shows & events Trade show exhibits or events Seminars or events you create Events you sponsor Publicity Product- or solution-related stories Distribute press releases (and optimize for the web) Speaking engagements Blogs
0.25 CR 0.25 CR 3.75 CR 0.5 CR 0.20 CR 0.5 CR 0.5 CR 0.4 CR 0.55 CR 0.3 CR 0.80 CR 0.75 CR 0.25 CR 0.5 CR 0.25 CR 1 CR 0.10 CR
Stories about your company Direct mail Simple sales letters or postcards Special mailpiece for a particular campaign Traditional media Print ads Yellow pages Radio Television Outdoor Total Over (under) goal
0.10 CR
0.5 CR 0.20 CR 0.10 CR
12 CR 1 CR 1 CR 2 CR 2 CR 6 CR
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BTL Marketing activities – Lube Oil ShopsExclusive TOTAL oil shops offering whole range of TOTAL oil products situated on each major national highway near each major repairing centre. Auto Spare Shops Distribution of TOTAL oil products at every major auto spare shop in the metro cities. Rural & Agricultural dealers: Flooding the rural & agricultural dealers with TOTAL oil products to increase the awareness & to tap the market. Petrol Stations :Distribution centre of TOTAL oil near each major petrol station in metro cities & on highways. Most of the PSU is selling their lubricants brand through their own outlets. Other private companies are trying to make tie-up or joint venture with PSU to sell their lubricants brands to PSU petrol pumps. The petrol pumps outlets are carries most of the part of the automotive lubricant sells.
Key concerns Longer oil drain intervals: Over the last decade, volume growth in the lubricants market has been low at 3-5%, despite strong growth in the automobile industry. This has primarily been due to advances in technology, resulting in steadily increasing drain intervals. Volatile raw material prices: As such, raw material price volatility is a key risk. However, given low price sensitivity of lubricant demand and endogenous demand, Total can historically been able to successfully deal with this challenge. Aggressive foray by oil PSUs into bazzar trade: The oil PSUs have begun attempting aggressive forays into the bazzar trade and have begun giving tough competition to private players. BPCL has enjoyed decent success with its „MAK' brand. 0EMs introducing own brands: Some 0EMs have introduced their own brands. However, for these 0EMs, lubricants are not a core business, and they do not have an addressable market beyond their immediate requirements. Due to these issues, their costs are relatively higher and they are also not able to achieve minimum efficiencies of scale. Exchange rate volatility: As such, it is exposed to exchange rate volatility.
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