CONSUMER PERCEPTION

CHAPTER-1
INTRODUCTION
PART A:
INDUSTRYPROFILE:
Indian Oil Corporation Ltd. (IOC) is the flagship national oil company in
the downstream sector. The Indian Oil Group of companies owns and
operates 10 of India's 19 refineries with a combined refining capacity of
1.2 million barrels per day. These include two refineries of subsidiary
Chennai Petroleum Corporation Ltd. (CPCL) and one of Bongaigaon
Refinery and Petrochemicals Limited (BRPL). The 10 refineries are
located at Guwahati, Barauni, Koyali, Haldia, Mathura, Digboi, Panipat,
Chennai, Narimanam, and Bongaigaon. Indian Oil's cross-country crude
oil and product pipelines network span over 9,300 km.
Indian Oil Corporation Ltd. (IndianOil) was formed in 1964 through the
merger of Indian Oil Company Ltd and Indian Refineries Ltd. Indian
Refineries Ltd was formed in 1958, with Feroze Gandhi as Chairman and
Indian Oil Company Ltd. was established on 30th June 1959 with Mr. S.
Nijalingappa as the first Chairman. In 1964, Indian Oil commissioned
Barauni Refinery and the first petroleum product pipeline from Guwahati.

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CONSUMER PERCEPTION
In 1965, Gujarat Refinery was inaugurated. In 1967, Haldia Baraurii
Pipeline (HBPL) was commissioned. In 1972, Indian Oil launched
SERVO, the first indigenous lubricant. In 1974, Indian Oil Blending Ltd.
(IOBL) became the wholly owned subsidiary of Indian Oil. In 1975,
Haldia Refinery was commissioned. In 1981, Digboi Refinery and Assam
Oil Company's (AOC) marketing operations came under the control of
Indian Oil. In 1982, Mathura Refinery and Mathura-Jalandhar Pipeline
(MJPL) were commissioned. In 1994, India's First Hydrocracker Unit
was commissioned at Gujarat Refinery. In 1995, 1,443 km. long KandlaBhatinda Pipeline (KBPL) was commissioned at Sanganer. In 1998,
Panipat Refinery was commissioned. In the same year, Haldia, Barauni
Crude Oil Pipeline (HBCPL) was completed. In 2000, Indian Oil crossed
the turnover of Rs l, 00,000 crore and became the first Corporate in India
to do so. In the same year Indian Oil entered into Exploration &
Production (E&P) with the award of two exploration blocks to Indian Oil
and ONGC consortium under NELP-I. In 2003, Lanka IOC Pvt. Ltd.
(LIOC) was launched in Sri Lanka. In 2005, Indian Oil's Mathura
Refinery became the first refinery in India to attain the capability of
producing

entire

quantity

of

Euro-III

Major Achievements of Indian Oil Corporation

Page 2

compliant

diesel.

CONSUMER PERCEPTION
Currently India's largest company by sales.
Highest ranked Indian company in the prestigious Fortune 'Global
500' listing, at 135th position.
20th largest petroleum company in the world.
Note: The above information was last updated on 21-07-2007
BRIEF HISTORY:
Indias Flagship National Oil Company:

Beginning in 1959 as Indian Oil Company Ltd., Indian Oil Corporation

Ltd. was formed in 1964 with the merger of Indian Refineries limited.
(Est. 1958).As Indias flagship national oil company, Indian Oil alone
accounts for 51.2% petroleum products market share among PSU
companies, 42% national refining capacity and 67% downstream pipeline
throughput capacity. The Indian Oil group of companies owns and
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CONSUMER PERCEPTION
operates 10 of Indias 18 refineries with a current combined rated
capacity of 52.80 million metric tonnes per annum (MMTPA) or one
million barrels per day (bpd). These include two refineries of subsidiary
Chennai Petroleum Corporation Ltd and one of Bongaigaon Petroleum
Corporation Limited. Indian Oil owns and operates the countrys largest
network of cross-country crude oil and product pipelines of 7,575 km,
with a combined capacity of 56.85 MMPTA. To maintain its strategic
edge in the market place, Indian Oil has planned investments to the tune
of Rs. 24,400 crore during the X Plan period (2004-09), mainly in linear
integration & diversification projects, besides refining and pipeline
capacity expansions, product quality up gradation and retail operations.

GROWTH AND PROSPECTS

Indian Oils countrywide network of over 22,000 sales points is backed
for supplies by its extensive, well spread out marketing infrastructure
comprising:
162 bulk storage terminals, installations and depots
94 aviation fuelling stations and 87 LPG bottling plants.
Its subsidiary, IBP Co. Ltd, is a stand-alone marketing company with a
nationwide network of over 3,000 retail sales points. For the year 200304, Indian Oil sold 48.60 million tonnes of petroleum products, including
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CONSUMER PERCEPTION
exports of 1.81 million tonnes. Its seven own refineries achieved a
throughput of 37.66 million tonnes, and the pipeline network transported
44.50 million tonnes of crude oil and petroleum products.
CUSTOMER CARE:
Customer delight is the key driver of Indian Oils marketing operations.
Under the XTRA retail outlet brand unveiled during the 2003-04, Indian
Oil is making customers visiting its petrol and diesel stations a number of
XTRA offerings, including assured quality and quantity, efficient
forecourt service and high levels of housekeeping, choice of regular and
branded fuels, 100% electronic dispensing, cashless transactions, loyalty
programmes for cash & credit customers, and a number of non-fuel
offerings tailor-made to customer profile and requirements.

ACADEMY COMPANY
Indian Oil is an academy company with a score of full-fledged training
centres across the country building skills and competencies among Indian
Oil People to face the challenges of the market place. Among these, the
Indian Oil institute of petroleum management (IIPM) Gurgaon, the Indian
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CONSUMER PERCEPTION
Oil management centre for Learning at Mumbai, and the Indian Oil
Management Academy at Halide have emerged as world-class training
and management academies. IIPM is launching a one-year post-graduate
programme in management, with specialisation in energy, this year in
association with Indian Institute of Management-Ahmadabad (IIM-A) to
nurture management leaders in the sector

PIONEERING R & D:

Indian Oils world-class R&D centre has won recognition for its
pioneering work in lubricants formulation, refinery processes, pipeline
transportation and alternative fuels. It has developed over 2,100
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CONSUMER PERCEPTION
formulations of SERVO brand lubricants and greases for virtually all
conceivable applications automotive, railroad, industrial and marinemeeting stringent international standards and bearing the stamp of
approval of all major original equipment manufacturers. A wholly-owned
subsidiary company, Indian Oil Technologies Ltd., is commercialising the
innovations and technologies of the centre, which has over 140 national
and international patents to its credit. Apart from leadership in
development and commercialisation of bio-fuels, the R&D Centre is
currently the nodal agency of the hydrocarbon sector in India for ushering
in Hydrogen fuel in the country.

EXPANDING HORIZONS:
Indian Oil is currently metamorphosing from a pure sectoral company
with dominance in downstream in India to a vertically integrated,
transnationals energy behemoth. The corporation is implementing a
master plan to emerge as a major player in petrochemicals by integrating
its core refining business with petrochemical activities, besides making
large investments in E&P and import/marketing ventures for oil and gas
in India and abroad.

SPREADING WINGS:
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CONSUMER PERCEPTION

Indian Oil is also strengthening its existing overseas marketing ventures

and simultaneously scouting new opportunities for marketing and export
of petroleum products to new energy markets in Asia and Africa. Two
wholly owned subsidiaries are already operational in Sri Lanka and
Mauritius, and a regional office at Dubai is coordinating expansion of
business activities in Middle East region. Within a year of incorporation,
Lanka IOC Pvt. Ltd. (LIOC) has captured a 25% market share in
Srilanka, with a target to take it to about 40% in the near future. Indian
Oil is investing US$ 18 million in Mauritius through its subsidiary, Indian
Oil Mauritius Ltd. (IOML), to set up a range of marketing infrastructure
there.

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CONSUMER PERCEPTION

The corporation has launched 11 joint ventures in partnership with some

of the most respected corporate from India and abroad- Lubrizol, Nyco
SA, Patrons, Oil tanking GmbH, Marubeni, to name a few. SERVO
lubricants are being marketed in Dubai, Nepal, Bhutan, Kuwait,
Malaysia,

Bahrain,

Indonesia,

Srilanka,

Kyrgyzstan,

Mauritius,

Bangladesh, etc. Indian Oil has been lending its expertise for nearly two
decades to various countries in several areas of refining, marketing,
transportation, training and research & development. These include
Srilanka, Kuwait, Bahrain, Iraq, Abu Dhabi, Tanzania, Ethiopia, Algeria,
Nigeria, Nepal, Bhutan, Maldives, Malaysia and Zambia. Indian Oils
sincere commitment to Quality, safety, Health and Environment is
reflected in the series of national and international certifications and
awards earned over the years. The 17th largest Petroleum company in the
world, Indian Oil, is well on its way to becoming an integrated,
transnationals energy corporate.

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CONSUMER PERCEPTION

PART B:
ABOUT SUBJECT:
THEORETICAL BACKGROUND OF STUDY:
MARKETING CONCEPT:
Marketing has its origin in fact that humans are creatures of needs and
wants. Since many products can satisfy a given need, product choice is
guided by the concepts of value, cost, and satisfaction. These products are
obtainable in several ways, self-production, coercion, and exchange.
Marketing arises from this last approach to acquiring products. The whole
of marketing as based on the process of exchange for the purpose of
satisfying human needs and wants. According to Philip Kotler.
Marketing is human activity directed as satisfying needs and wants
through

exchange

process.According

to

American

Marketing

association (AMA). Marketing is the performance of these business

activities that directs the flow of goods and services from producers to
consumers

MODERN DEFINITION OF MARKETING

Marketing is a social and management process by which individuals and
groups obtain what they need and want through creating offering and
exchange products of values with others
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CONSUMER PERCEPTION

THE CORE CONCEPT OF MARKETING

NEEDS

MARKETING

WANTS

TRANSACTION

DEMAND

EXCHANGE

PRODUCT

VALUE, COST
&
SATISFACTION

IMPORTANCE AND OTHER RELEVANT ASPECTS OF THE

SUBJECT:
The marketing concept holds that key to achieve organizational goals
consists in determining the needs and wants of target market and
delivering the desired satisfaction more effectively than Co petitioners.
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CONSUMER PERCEPTION

TARGET MARKET:
No company can operate in every market and satisfy its needs. No
company can do better without a broad market. Companies can do their
best when they define their market, customer needs with co-ordinate
marketing efforts. Actually the concept rest on four main pillars namely
target, customer needs, co-ordinate marketing and profitability.
STARTING

FOCUS

MEANS

ENDS

Customer

Co-ordination

Profit

POINT
Target

through
Market

Needs

Marketing

Customer
Satisfaction

VALUE OF MARKETING CONCEPT:

1. PRODUCTION STAGE
The industrial revolution gave the various motions ability to producers in
large quantity. New technologies skilled labor and scientific management,
these all have help in producing better and cheaper product, which the
consumer can buy without any efforts made by the producers to induce
the consumers to buy the product.

2. SALES STAGE
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CONSUMER PERCEPTION
This is the stage where producers release the products cannot be sold by
itself. The consumer must be motivated to buy for these he adopt
publicity

3. MARKETING STAGE
This is consumer stage in which the needs of the consumer are given the
top priority. These needs were systematically determined through
marketing research and then steps were taken to produce only those
goods that could satisfy the wants of potential customer.

4. SOCIAL RESPONSIBILITY AND HUMAN ORIENTATION

STAGE:
Business is no longer reaming limited to be object of earning profit but
have become stronger force for overall all welfare of mankind.

MARKET SEGMANTATION:
Market consists of buyers and buyers differ in one or more aspect. They
may differ in their wants, purchasing power geographical buying attitudes
and buying practices any of these variables can be used to segment a
market. There is no single way to segment a market. A marketer has to try
different segmentation variables for effective segmentation.

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CONSUMER PERCEPTION

MARKET POTENTIAL:
Marketers talk about potential marketers, available markets served
markets, and penetrated market. To clarify this terms let us start with the
notation that a market is the set of all actual and potential buyers would
have three characteristics: interest, income and access.
CONSUMER BEHAVIOUR:
The starting point understanding buyer behavior is the stimulus response
model shown in figure. Marketing and environmental stimuli enters the
buyers consciousness. The buyers characteristic and decision process
lead to certain purchase decisions. The marketers task is to understand
what happens in the buyers purchase decisions Customers behavior in
aggregate is observable on the bottom line. This aggregate is the market.
However, individually who are those buyers? If you knew for certain (say
because of extensive questionnaire filled out at the cash register by
purchase of all products), then would know among other things, if your
products was properly positioned or marketed. You might even clean
market direction and be able to determine what would be selling well
years hence.

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CONSUMER PERCEPTION

MAJOR FACTORS INFLUENCING BUYING BEHAVIOUR:

CULTURAL FACTORS

Culture

Sub Culture

Social Class

SOCIAL FACTORS

Reference groups

Family

Roles and status

BUYING ROLES

Initiator

: - Person who first suggest the idea of buying the

Influences : - a person whose view or advice influences the

Decider

: - on any components of a buying decision.

Buyers

: - the person who makes the actual purchase.

Users

: - a person who consumes or uses the product.

STAGES OF BUYING DECISION PROCESS:

Problem recognition

Information search
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CONSUMER PERCEPTION

Evaluation of alternatives

Purchase decision

Post purchase behavior

CONSUMERISM:
Consumerism is defined as a social force designed to protect consumer
interest the market place by organizing consumer pressure on business.
The balances of power in the market usually line with the seller.
Consumerism is attempts in the society to redress the imbalances in the
exchange transaction between buyers and sellers. The Economic
development process in an economy has given rise to industrialization
and urbanization. The growth of business economy was purely attributed
for such phenomenon. This has spiraled the effect of heavy urbanization
were each city has expanded from smaller dwelling to mega cities. The
distance between two boundaries running to 60 KMs and maximum
undefined this has given lift to the need of transportation to the
commuting public, In addition to this tremendous growth of business
economy necessitated the need for movement of people and goods to
various destinations. Government has provided some of the

transport

facilities but it is inadequate for the growing demand of the public. This
gap was filled by people buying their own personal vehicles which
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CONSUMER PERCEPTION
offered them high utility, greater convenience and efficient time
management. This helps the people to improve standard of living,
improved social class and contributed for greater economic sense to the
society. Their personal vehicles are four wheelers and two wheelers. In
addition to these there are commercial heavy vehicles like trucks, buses
etc..., mainly used for transportation of goods. All these vehicles
including public and private vehicles run on petroleum products like
petrol or diesel, the movements of these vehicles are based on the
engines, which induces movement of vehicle by utilizing petrol or diesel
as fuel. But these engines being metallic are inflected by various
environmental hazards while it is increasing its movement this hazards
corrodes the metallic portion and changes of position due to climatic
conditions. These hazards will render engine as non-performer. This can
be overcome by providing sufficient oil to the engine of desired quality
and quantity, which keeps the engine in good condition. As long as there
is higher demand and high movement of vehicles there will be equally
high demand for engine oils. As every vehicle has an engine and needs
engine oil. There are various manufactures of engine oils that are in the
market selling different brands of engine oils with different brand names
to suit the different engine designs. INDANOIL CORPORTION
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CONSUMER PERCEPTION
LIMITED is one such seller of engine oil in India with brand name of
SERVO. It is a public sector company and has several brands of engine
oils suitable for all vehicles. It is brand of engine oils in Indian market.
A foreign brand by name CASTROL is also one of the leaders in market
comparatively IOCL has low market share. This project aims to find out
the perception the consumers towards various brands of engine oils so
that a suitable strategy can be recommended to IOCL to improve market
share.

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CONSUMER PERCEPTION

CHAPTER-II
RESEARCH DESIGN
A detailed plan of research indicating the methods and procedures to be
used for collecting and analyzing data on a giving subject and reporting
results is termed as Research Design
2.1 TITLE OF THE PROJECT:
The Title of the Project is A STUDY ON CONSUMER
PERCEPTION TOWARDS INDIAN OIL IN KOLAR

2.2 STATEMENT OF THE PROBLEM:

Consumer and consumer needs are the focus of marketing. To be a
successful manager, it is important to understand the nature and
characteristics of consumer. On average, a customer can be described as
one who is in active stage of development of the organization. The
capability exists in income, literacy and culture and his choice of
performance as he is living in an active environment, his needs will keep
getting altered. As India is one of the fastest growing countries, the
automotive market is also expending with full swing. Today we have lots
of companies in the oil market taking this into consideration, a buyer with
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CONSUMER PERCEPTION
many oils in the market would be totally be baffled and confused on
which oil to buy to suit his vehicle. Justice should be made for the
consumer. Should be satisfied with what he buys, the consumer
expectation and the values for money should be looked into based on the
fluctuating needs and demands. At present there are many different
companies offering different brands of engine oil suitable for different
engine designs.

2.3 OBJECTIVE OF THE STUDY:

To find out the factors, which influence the people to buy engine, oils
To find out the performance of the engine oils according to their
viscosity.
To find out the performance of the different brands of engine oils.

2.4 SCOPE OF THE STUDY:

The companys Strengths and weaknesses and areas of development
or
Decline are analyzed. Financial, strategic and operational factors are
considered.
The report contains critical company information business
structure and operations, the company history, major products and
services, key competitors, key employees and executive biographies,
different locations and important subsidiaries.
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CONSUMER PERCEPTION

2.5 OPTIONAL DEFINITION OF CONCEPTS:

According to American marketing association. Marketing
as the performance of business activities that directs the flow of
goods and services from producers to consumer forever.

ACCORDING TO GREEN AND TULL:

A research design is the specification of methods and procedures for
acquiring the information needed. It is the overall operational pattern or
frame work of the project that stipulates what information is to be
collected from which sources by what procedures.
MARKET:
Market consists of all the potential customers sharing particular
needs or wants who might be willing to satisfy their needs or wants.
MARKETING:
It is a social and managerial process by which individuals and
groups obtain what they need and want though creating, offering and
exchanging products of value with other.
CONSUMERS:
It is an individual who purchases of has the capacity to purchase
goods and services offered for sale by marketing institution in order to
satisfy personal needs, wants and desires as consumer of efferent leaves
are scattered at different places.
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CONSUMER PERCEPTION
PERCEPTION:
"Perception can be defined as the process of receiving, selecting,
organizing, interpreting, checking and reacting to sensory stimuli or
data".

2.6 SAMPLING:
The survey Method that was used to collect the Primary data is the
Interview Method. The Respondents were Personally Interviewed by
Issuing Questionnaires and the survey was conducted. The sample size
was Restricted to 100 samples after considering the degree of confidence
and the degree of error. The sample size is restricted to Kolar alone.
CHOOSING OF SAMPLING UNITS
Each sampling unit was selected by the research according to the fact to
whether the respondents would be in position to supply necessary data.
The quota to be followed was also born in mind while selecting sampling
units.
2.7

TYPES

OF

RESEARCH

PLUS

TOOLS

FOR

DATA

COLLECTION:
The data is collected through Issue of Questionnaires, which is Primary
data in Nature.

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CONSUMER PERCEPTION

RESEARCH PLAN:
Designing a research plan calls for decision on data sources, research
instrument gambling plan and contact methods.
RESEARCH

PLAN

DATA SOURCES

SECONDARY DATA, PRIMARY DATA

RESEARCH APPROACHES
SURVEY

OBSERVATION, FOCUS GROUPS

EXPERIMENT

RESEARCH INSTRUMENT
INSTRUMENT
SAMPLING PLAN
SAMPLING

QUESTIONNAIRE, MECHNICAL
SAMPLING UNIT, SAMPLE SIZE,
PROCEDURE

RESEARCH APPROACH: Survey Method is used to collect the

Primary Data from the Respondents. The survey Method is used here to
facilitate understanding or Enable Prediction of some aspects of
perception of the Respondents

2.8 PLAN OF ANALYSIS:

Perhaps the most essential task is the analysis of the date. After the data
was collected from various sources, information was tabulated and was
summarized in from of point and graph etc, on the basis of this analyzes,
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CONSUMER PERCEPTION
findings were noted and conclusion were arrived and at studying the
conclusion, suggestion are recommended a suitable plan is made on
various function. In this present project, an attempt has been made to
analyze the consumer perception towards servo engine oils by using the
questionnaire method. It was originally a field-oriented task. After
collecting all the information was transferred to a worksheet the data
relating to set of the objectives was then classified and the findings
recovered after which the data was graphically represented. Here some
special statistical techniques are used some of them are mentioned below:
Sampling statistics
Chi square analysis
Analysis of variants
Correlation

2.9 REFERENCE PERIOD:

The reference period of this study was 45 days i.e., one & half month.
2.10 LIMITATIONS OF THE STUDY:
The projects deal with CONSUMER PERCERTIUON TOWARDS
SERVO ENGINE OILS.

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CONSUMER PERCEPTION
A study on consumer perception towards servo engine oils.
Needs large sample size. A large sample gives more results rather than
small, but my sample size is only 100, which is limitation to my
project.
As we know a good Marketing research takes time but time is again
the limitations of my project.
Some respondents show unwillingness to fill the questionnaire.
Some respondents give the biased information in case of close ended
questions and multiple choice
Due to small area of kolar and small sample size, the exact data
couldnt be collected.

2.11 CHAPTER SCHEME

Chapter: 1 Introduction:
It clearly shows the Theoretical background, Brief theory, Growth and
Prospectus,

Definition,

Essentials

of

Good

Advertising,

Creating

Advertisements That Attracts Attention, Brand Patronage..

Chapter: 2 Research Design:

It clearly shows the Title of the Study, Statement of the Problem, Objectives
of the Study, Scope of the Study, Operational Definition of the Study,

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CONSUMER PERCEPTION
Research methodology, Tools Used for Data Collection, Plan of Analysis,
Reference Period of the Study, Limitations of the Study..

Chapter: 3 Company Profile:

It clearly shows the Inception, Growth and Development of Company,
Nature, Functional chart, Mission, Vision, Industry Development and Trends,
Market Share, Business Strategy, Organizational Structure, Business
Operation Method, Types,

Chapter: 4 Data Analysis and Interpretation:

It defines the survey conducted with Graphical Representation of Company
Products & Title of the table, Analysis of the table, Inference of the table,
Graphical Representation

Chapter: 5 Summary of Findings and Conclusions:

Here, it finds the problems of the company & Justifies it.

Suggestions:
It helps to take out some unwanted informations by giving suggestions.

Appendices and Annexure:

Its a copy of Questionnaire; it particularly represents the Merits and
Demerits about the product.

Bibliography:
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CONSUMER PERCEPTION
The reference made from textbooks, magazines, newspapers & websites
etc...

CHAPTER-III
COMPANY PROFILE
Indian Oil Corporation (IOC), established in 1959, is engaged in
exploration and production and marketing of oil. It is Indias largest
company sales wise with a turnover of Rs 2,47, 479 core ($ 59.22
billion). IOC has sub diaries namely Indian oil Technologies, Chennai
Petroleum Corporation, Bongaigaon Refinery & Petrochemicals, Indian
Oil (Mauritius) and Lanka IOC. Out 19 refineries, IOC owns and operates
10 with a combined capacity of capacity of 60.2 million metric tonnes per
annum (MMTPA), i.e. 1.2 million barrels per day. It has 166 bulk storage
terminals and depots, 101 aviation fuel station and 89 Indene bottling
plants. The refining major has a countrywide network of petrol and diesel
stations with 17,600 retail outlets. Its Indene cooking gas network has
presence in 50 million households through its distribution network of
5,000 distributors.

MILESTONES:

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CONSUMER PERCEPTION
IOC is the highest ranked Indian company In Fortune Global 500
list.
It is 18th largest petroleum company in the world.
It is Indias most trusted fuel pump brand as per the survey
conducted by ET brand equity and AC Neilsen.
It has received National Award for Innovation in Implementing
Business Continuity For SAPR/3 Environment from the
Government of India.
OUTLOOK:
IOC and GAIL have signed a memorandum of understanding for
cooperation in setting up an Rs 10,000 crore petroleum plant at Barauni
in Bihar. Indian Oil launched its lubricant brand Servo in Oman. Servo
has 500 different grades and 1200 varied formulations.
INCEPTIONS:
Indian Oil corporation Limited (Indian Oil) is the countrys largest
commercial enterprise, with a

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CONSUMER PERCEPTION

Sales turnover of Rs. 1, 30,203 crore (US$ 29.8 billion) and

Profits of Rs 7,005 crore (US$ 1,603 million) for fiscal 2003.

Indian Oil is Indias No.1 Company in Fortunes prestigious listing of the

worlds 500 largest corporations, ranked 189 for the year 2004 based on
fiscal 2003 performance. It is also the 19th largest petroleum company in
the world. Indian Oil has been adjudged No.1 in petroleum among the
national oil companies in the Asia pacific region, and is ranked 325th in
the current Forbes Global 500 listing of the largest public companies
Indian Oil has achieved the enviable distinction of being the only
petroleum brand in the latest ranking of the top 150 Indian Brands Equity
of Economic Times, the trusted testament on the brand related
information. This ranking of top 150 comprised brands from all product
and service categories. The ranking done by Brand Equity on the classic
parameters of brand performance through a scientific evaluation process
is the final authentic word on the positioning of the brands in the mind
space of Indian customers. In addition to this composite ranking across
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CONSUMER PERCEPTION
the product and service .Categories, sector wise ranking for specific
product and service categories are also part of this elaborate survey.
Among the exclusive services list for petrol pumps, while Indian Oil
leads the charge with the top rank, IBP, HPC and BPC are ranked 2 nd, 3rd
and 4th respectively. This is truly a creditable performance given the fact
that this is the debut appearance for the petrol pumps, which have been
introduced in the services category only this year. In the sector wise
ranking of all services Indian Oil has powered to the 11th position, leaving
the competition far behind. While IBP, our group company, HPC and
BPC are ranked at 51, 56, and 64 respectively.
TYPE: It is a public sector company

NATURE:
Indian Oil is currently metamorphosing from a pure sect oral company
with dominance in downstream in India to a vertically integrated,
transnational energy behemoth. The corporation is implementing a master
plan to emerge as a major player in petrochemicals by integrating its core
refining business with petrochemical activities, besides making large
investments in E&P and import/marketing ventures for oil and gas in
India and abroad
BOARD OF DIRECTORS:
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CONSUMER PERCEPTION
Sarthak Behuria
B M Bansal

Chairman of the board

Director of planning and business development

S V Narsimhan

Director of Finance

V C Agarwal

Director of human resources

G C Dage

Director of Marketing

B N Bankapur

Director of Refineries

Anand Kumar

Director of Research & Development

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CONSUMER PERCEPTION
ORGANIZATIONAL CHART
CENTRAL OFFICE

CHAIRMAN

VICE CHAIRMAN & MANAGING DIRECTOR

ACCOUNTS DEPARTMENT
DIRECTOR PERSONNEL
DIRECTOR
& ENVIRONMENT
SERCURITY
DIRECTOR
& VIGILANCE
SERCURITY & VIGILANCE
INTERNAL AUDIT
STORES & PURCHASES
SECRETARIAL BRANCH

SECURITY & VIGILANCE

BANGALORE CITY
PERSONNEL & ADMINISTRATION
TRAFFIC
BANGALORE RURAL
ENVIRONMENT & POLLUTIONCOMMERCIAL MATTERS
KOLAR
LABOUR & WELFARE
EDP DEPARTMENT
MYSORE URBANESTATE MATTERS
ACCIDENT RELIEF FUND
MYSORE RURALLAW DEVELOPMENT
LINE CHECKING
HASSAN
SPORTS
MANGALORE
DISPLINARY SECTION
TUMKUR
HRD
DAVANGAREE MEDICAL DEPARTMENT
CHIKMAGULAR

MECHANICAL & ENGINEERINGRWS-BANGALORE

CIVIL ENGINEERING
RWS-HASSAN
PRINTING
STATISTICAL PLANNING
PUBLIC RELATIONS
LEGISLATURE MATTERS

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CONSUMER PERCEPTION
BUSINESS OPERATIONS:
CORPORATE OFFICE
Indian oil corporation Ltd Corporate office, 307/3, J B Tito Marg, Sadiq
Nager,New Delhi- 110049
Tel: 011- 26260000
Srilanka
Mr. K.R. Suresh Kumar M.D, Lanka IOC PLC, 20th floor, West Tower,
World Trade Centre, Colombo, Srilanka
Tel: 00 94147520, 000941475700
Mauritius
Rajesh Ahuja M.D, Indian oil Ltd, Mer Rouge, Port Louis, Mauritius
Tel: [230] 2172710

PRODUCTION/ SERVICE PROFILE:

PRODUCT PROFILE
PRODUCTS: It provides spectrum of petroleum products through its
retail outlets like Extra Care (Urban), Swagat (Highway) and Kisan Seva
Kendras (Rural).
IOC provides auto gas, aviation turbine fuel, bitumen-a binder used for
road construction, high speed diesel, bulk industrial fuels like furnace oil,

Page 33

CONSUMER PERCEPTION
Indane gas, Servo Lubricants and greases and special products like
benzene and surplus.
It has created brands like Indiana LPG, Servo Lubricants, Auto gas LPG,
Extra Premium Branded Petrol, Extra Mile Branded Diesel, Extra Power
Fleet Card.
PRODUCT OVERVIEW:
Sales
Mont
Product Name

Year

Sales % of
Quantit

Value(Rs.Million)

STO

y
Petroleum Products

2011

03

788.84

2920285.40 81.76

Crude Oil

2011

03

88.52

249565.70

6.99

Lubricants & Greases 2011

03

4.82

61386.80

1.72

Gas

2011

03

851.73

28301.10

0.79

PX/PTA Plant

2011

03

4.47

25301.10

0.71

2011

03

3.67

23756.20

0.67

2011

03

1.24

11813.70

0.33

Base Oil & Additives 2011

03

0.99

6540.70

0.18

Other Petrochemicals
Product (including
Polymers, MEG and
DEG)
LAB Plant

Page 34

CONSUMER PERCEPTION
Explosives

2011

03

0.71

1686.40

0.05

2011

03

0.18

342.20

0.01

2011

03

0.00

0.00

0.00

Crude Processing

2011

03

0.00

0.00

0.00

Lubricating Oil

2011

03

0.00

0.00

0.00

2011

03

0.00

0.00

0.00

2011

03

0.00

0.00

0.00

2011

03

0.00

0.00

0.00

2011

03

0.00

0.00

0.00

2011

03

0.00

0.00

0.00

Cryocontainer &
Accessories
Site Mixed Slurry
Explosives

Wax/Bitumen/Asphalt
Lube Oil Drums
Oxygen Plant
Propylene Recovery
Unit
MTBE Unit
Naphtha Cracker
Plant

Page 35

CONSUMER PERCEPTION

Indian Oil reaches Indane cooking gas to the doorsteps of 37.5 million
households in over 2,100 markets through the countrys largest network
of 4,350 distributors

Indian Oils ISO-9002 certified Aviation service, with 68% market share,
meets the fuel and lubricants needs of domestic and international flag
carriers, Defence services and private aircraft operators.

The countrys leading SERVO brand lubricants from Indian Oil, with over
42% market share and 450 grades, are sold through more than 9,100
Company retail outlets, besides a countrywide network of bazaar traders.

To maintain its strategic edge in the market place, Indian Oil has planned
investments to the tune of Rs. 24,400 crore during the X Plan period
(2002-07), mainly in linear integration & diversification projects, besides
Page 36

CONSUMER PERCEPTION
refining and pipeline capacity expansions, product quality up gradation
and retail operations.

MARKET SHARE:
Indian oil has market share of 68% in the Aviation services & 42% of the
market share in the servo brand lubricants & in the world it has 51.2%
market share on the petroleum products among U P S Companies.

COMPETITORS:
Hindustan Petroleum:
HPCL, a fortune 500 company, is one of the major integrated oil refining
and marketing companies in India. It is a Mega Public Sector
Undertaking (PSU) with Navaratna status.
HPCL accounts for about 20% of the market share and about 10%
of the nation's refining capacity with two coastal refineries, one at
Mumbai (West Coast) having a capacity of 6.5 Million Metric Tons Per
Annum (MMTPA) and the other in Visakhapatnam (East Coast) with a
capacity of 8.3 MMTPA. HPCL also holds an equity stake of 16.95% in
Mangalore Refinery & Petrochemicals Limited (MRPL), a state-of-the-art
refinery

at

Mangalore

with

capacity

of

MMTPA.

HPCL owns the country's largest Lube Refinery with a capacity of

335,000 Metric Tons which amounts to 40% of the national capacity of
Page 37

CONSUMER PERCEPTION
Lube Oil production. HPCL has given India a firm ground in this sector
with its world class standard of Lube Base Oils. Presently HPCL
produces over 300+ grades of Lubes, Specialties and Greases.
HPCL has earned "Excellent" performance for fifteen Consecutive
years up to 2005-06, since signing of the first MOU with the Ministry of
Petroleum & Natural Gas. HPCL won the prestigious MOU Award for the
year 2007-08 for Excellent Overall Performance, and for being one of the
Top Ten Public Sector Enterprises who fall under the 'Excellent' category.
HPCL's performance for the year 2008-09 also qualifies for "Excellent"
rating.
HPCL, over the years, has moved from strength to strength on all
fronts. The refining thru put has increased three fold between 1984/85 to
2007/08, rising from 4.47 MMTPA in 1984/85 to 15.76 MMTPA (200910).

Bharat Petroleum:
Bharatgas - Providing Customer Delight to over 30 million Homes!
History
LPG as a household cooking fuel was introduced by erstwhile Burmah
Shell under the brand name Burshane in mid 1955. The journey of
LPG as a domestic fuel continued with Burmah Shell until the
Page 38

CONSUMER PERCEPTION
Government nationalized the Company Burmah Shell to become Bharat
Petroleum. Bharatgas from Bharat Petroleum has dominated the LP
Gas market in India for over three decades. It was indeed a great
challenge for Bharatgas to replace Burshane as a brand name since
Burshane had become a generic name in the country for LPG. Bharat
Petroleum's inspiration to meet every challenge drove them to work
towards establishing Bharatgas as a dominant brand.
Achievements

Over the years, the urban Market reach was very large, the customer more
sensitive. Whereas, it was a herculean task to reach the rural consumers
primarily due to inhabitation being spread over very far flung areas unlike

FUNCTIONAL CHART
Page 39

CONSUMER PERCEPTION

CENTRAL OFFICE

CHAIRMAN
VICE CHAIRMAN & MANAGING DIRECTOR
DIRECTOR (TECHNICAL)

MECH ENGG
CME (2)

CIVIL ENGG
CCE

ME (O)
DME

EE

PRINTING

REGIONALSTAT & PLANNING

PUBLIC RELATIONS
WORK SHOPS

DY. COP WORKS MANAGER C P S O

AME

STATE OFFICER

ACOP
SK

EST
SUPR

PRO

CHANGE
MAN
STAT
SURP

ASST/JA

ACCOUNTS SUPR AEE

( CIVIL )

ASST
ENG

CPRO

AEECHANGE MAN PRINTING

( ELE )

ASST

JA

ASST
ART
PRIN.

EST
SURP

HELPER

J Es
EST SUPDT

ASST

JA

FUTURE PROSPECTS AND GROWTH OF THE COMPANY:

Page 40

ASST

CONSUMER PERCEPTION
VISION
A major, diversified, transnational, 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 in 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.

Page 41

CONSUMER PERCEPTION

OBJECTIVES AND OBLIGATIONS

OBJECTIVES:
To serve the national interests in the oil and related sectors in
accordance and consistent with Government policies.

To ensure and maintain continues and smooth supplies of

petroleum products by way of crude refining, transportation and
marketing activities and to provide appropriate assistance to the
consumer to conserve and use petroleum products efficiently.

To earn a reasonable rate of interest on investment.

To work towards the achievement of self-sufficiency in the field of

oil refining by setting up adequate capacity and to build up
expertise in lying of crude and petroleum product pipelines.

To create a strong research and development base in the field of oil

refining and stimulate the development of new product
formulations with a view to minimise / eliminate their imports and
to have next generation products.

To maximise utilisation of the existing facilities in order to

improve efficiency and

increase productivity.

Page 42

CONSUMER PERCEPTION

To optimise utilisation of its refining capacity and maximise

distillate yield from

refining of crude to minimise foreign

exchange outgo.

To minimise fuel consumption in refineries and stock losses in

marketing operations

to effect energy conservation.

To further enhance distribution network for providing assured

service to customers throughout the country through expansion of
reseller network as per Marketing Plan/Government approval.

To avail of all viable opportunities, both national and global,

arising out of the liberalisation policies being pursued by the
Government of India.

To

achieve

higher

growth

through

integration,

mergers,

acquisitions

and diversification by harnessing new business

opportunities

like

petrochemicals,

power,

lube

consultancy abroad and exploration and production.

OBLIGATIONS:
Towards customers and dealers
Page 43

business,

CONSUMER PERCEPTION
To provide prompt, courteous and efficient service and quality products at
fair and reasonable prices.
Towards suppliers
To ensure prompt dealings with integrity, impartially and courtesy and
promote ancillary industries.
Towards employees
Develop their capability and advancement through appropriate training
and carrier planning.
Expeditious redressal of grievances
Fair dealings with recognised representatives of employees in pursuance
of healthy trade union practice and sound personnel policies
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 standards of environment

protection in its manufacturing plants and townships by taking suitable
and effective measures.

Towards Defence Services

Page 44

CONSUMER PERCEPTION
To maintain adequate supplies to defence services during normal and
emergency situations as per their requirement at different locations .
Financial Objectives

To ensure adequate return on the capital employed and maintain a

reasonable annual Dividend on its equity capital.

To ensure maximum economy in expenditure.

To manage and operate the facilities in an efficient manner so as to

generate adequate internal resources to meet revenue cost and
requirements for project investment, without budgetary support.

To develop long-term corporate plans to provide for adequate growth

of the activities of the Corporation.

To endeavour to reduce the cost of production of petroleum products

by means of systematic cost control measures.

To endeavour to complete all planned projects within the stipulated

time and cost estimates.

OPPORTUNITIES & THREATS:

OPPORTUNITIES:
Indias petroleum consumption was about 107.7 million tonnes in 200304, an increase of 3.5% over 104.1 million tonnes registered in 2002-03.
Page 45

CONSUMER PERCEPTION
After a flat growth in 2001-02, the industry recovered and registered a
growth of over 3% for the second year in succession. The centre for
Monitoring of Indian Economy (CMIE) expects industrial output to rise
by 6.4% and agricultural sector to grow by 2.7% in the current fiscal as
against 6.5% and 9.1% growth in 2003-04. The services sector, which
contributes about 50% to GDP, is projected to grow by 7.9%. With the
economy poised to grow at 7% to 8%, trade and industry will need the
support of the hydrocarbon sector to fuel their demand.
In its transition to align fully with market-driven mechanism, the
hydrocarbon sector is also reinforcing its latent strengths to meet the
expectations of a wide array of stakeholders.
This would mean offering a comprehensive value proposition package to
the customer with emphasis on non-fuel services also, which opens up
myriad opportunities to the corporation in addition to growth in its core
fuel business.

THREATS:
Of particular concern to the industry is the slowing down of diesel
demand over the last two years. In 2003-04, diesel demand grew by only
1.7% against the overall growth of 3.4% in petroleum products
Page 46

CONSUMER PERCEPTION
consumption. In 2002, rights to set up a total of 11,000 petrol and diesel
stations (Ross) were granted to select private and public sector
companies. The year 2003-04 saw these players consolidating their plans
for setting up Ross and associated infrastructure, and a few Ross have
already become operational. Further expansion of the network would only
intensify competition in the market place. There is a threat to liquid fuels
from gas and other alternative fuels. Gas is certainly going to replace a
substantial volume of Naphtha and Fuel Oil/LSHS and have an impact on
the liquid fuel business.

CHAPTER-IV
DATA ANALYSIS & INTERPRETATION
PART 1:
Page 47

CONSUMER PERCEPTION

TYPE OF VEHICLE:

4.1 TABLE:
TYPES OF VEHICLES TEST:
Type of Vehicles
Cars
Turks, Buses
Total
Sources: (Primary Data)

No of Respondents
78
22
100

Percentage
78
22
100

ANALYSIS:
Out of the total Sample size taken 78% respondents belong to owner of
cars & 22% were Owners of Trucks, Buses.

GRAPH 4.1:
TYPES OF VEHICLES

Page 48

CONSUMER PERCEPTION

INTERPRETATION:
Because the majority of the respondents are car owner the test is valid to
find out the attitude and perception of those car owners towards engine
oil. That means to say that the study confirms only to engine oil used by
the car owners.

TABLE 4.2
VEHICLE BRAND TEST:
Brand of Vehicles
Maruti

No of Respondents
20
Page 49

Percentage
20

CONSUMER PERCEPTION
Hyundai
Tata Cars
Toyota
Ashok Leyland
Tata Trucks
Others
Total

22
16
10
14
12
6
100

22
16
10
14
12
05
100%

Sources: (Primary Data)

ANALYSIS:
In the sample, respondents Hyundai is the first position with 22% of
contribution from the total score in the brand test of the cars. 2 nd position
goes to Maruti with 20%, 3rd position goes Tata cars with 16%, 4th
position goes to Ashok Leyland and 12%,10%, & 05% goes to Tata
Trucks, Toyota and others respectively.

GRAPH 4.2
VEHICLE BRAND TEST

Page 50

CONSUMER PERCEPTION

No of Respondents
Maruti
Hyundai
Tata Cars
Toyota
Ashok Leyland
Tata Trucks
Others
Total

INTERPRETATION:
All Vehicles (Automobiles) need engine oil to given for maintenance of
vehicle by providing frequently engine oil for the smoothness in running
the vehicle. Without the engine oil the vehicle will not run. Normally
engine oils are used for specific distance mileage covered. After that
engine oil has to change. This test is conducted towards the usage of
engine for specific distance.

TABLE4.3
CHANGES OF OIL:
Page 51

CONSUMER PERCEPTION
Kilometers
2000Kms
3000Kms
4000Kms
5000Kms
More than 5000Kms
Total
Sources: (Primary Data)

No of Respondents
10
08
14
20
48
100

Percentage
10
08
14
20
48
100

ANALYSIS:
More than 5000 KMs is the normal average running of the car per oil
With 48% of the total score. That means to say most of the respondents
changes oil after running for 5000 Kms (20%), 14% changed at 4000
Kms and 08% changed at 3000 Kms.

GRAPH 4.3
CHANGES OF OIL:

Page 52

CONSUMER PERCEPTION

INTERPRETATIONS:
Normally 5000 Kms is the minimum distance utility per oiling in a
vehicle. There is an optimum efficient utilization. If people are changing
oils for lesser distance it can be inferred that these engines are not
performing up to, its expectation and the brand have outdated engine
designs. If more than is distance covered then there is an unnecessary
strain on the engine.

TABLE 4.4
PURCHASE POINT:
Purchase point

No of Respondents
Page 53

Percentage

CONSUMER PERCEPTION
Automobile Outlet
Petrol pumps
Lube outlet
Total
Sources: (Primary Data)

26
52
22
100

26
52
22
100

ANALYSIS:
The point of purchase of engine oil mostly takes place at Petrol Pumps
52% and followed by to some 26% of them purchase at Automobile
outlet and lesser extent 22% in the exclusive Lube outlet.

GRAPH 4.4
PURCHASE POINT:

Page 54

CONSUMER PERCEPTION

No of Respondents

Automobile Outlet

Petrol pumps

Lube outlet

Total

INTERPRETATIONS: It is obvious that oil is changed at mostly Petrol

pumps mainly because of the reason that it offers convenience to fill
petrol. Hence, strategically the oils should be distributed through Petrol
Pumps.

TABLE 4.5
THE BUYING INFLUENCE:
Influence

No of Respondents
Page 55

Percentage

CONSUMER PERCEPTION
Self
Driver
Garage Mechanic
Total
Sources: (Primary Data)

70
16
14
100

70
16
14
100

ANALYSIS:
While influencing the Buying of engine oils in cars most of the decisions
are taken by the car owners themselves 70%, car driver is also influence
in selection of the oil to 16%and around 14% influence by garage
mechanic.

GRAPH 4.5
THE BUYING INFLUENCE:

Page 56

CONSUMER PERCEPTION

INTERPRETATIONS:
Most of the Car owners are aware about oiling their Cars. There may be
influenced that while they buy a car they have sufficient knowledge in
smooth running of the car. This appears the car owners have. Hence the
oil manufacture should target their communication message to the car
owners directly.

TABLE 4.6
SERVICE OF VEHICLES FOR OIL CHANGE
Page 57

CONSUMER PERCEPTION
Point of purchase
Private S.S
Authorized S.S
Petrol Pumps
Total
Sources: (Primary Data)

No of Respondents
10
48
42
100

Percentage
10
48
42
100

ANALYSIS:
Preference is for the service centre for changing oil. Most of them prefer
going to Authorized Service Station at 48%, closely followed by petrol
pumps with 42% and little preference to Private Service Station with
10%.

GRAPH 4.6
SERVICE OF VEHICLES FOR OIL CHANGE

Page 58

CONSUMER PERCEPTION

Point
of
Servic
10
e
%

42
%

48%

Priv
ate

Autho
rized

Petro
l

INTERPRETATIONS:
Most of the car owners would not like to take chance while changing the
engine oils. Hence, they go Authorized Service Station or to Petrol
pumps. There is a relationship to the smooth running of the vehicles. It is
commonly believed that Authorized Service Station provides a perfect
service in oil changes and in the Petrol pumps they belief that better
service is a matter of faith as he is visiting the Petrol pumps.

TABLE4.7
USE OF DIFFERENT BRANDS OF ENGINE OILS:
Page 59

CONSUMER PERCEPTION
Brands Used
Servo IOC
H.P
I.B.P
Castrol
Other Brands
Total
Sources: (Primary Data)

No of Respondents
19
10
14
30
08
100

Percentage
38
10
14
30
08
100

ANALYSIS:
In the different engine oil brand Servo IOC enjoy the maximum brand
share that is 38% in the study. Followed by Castrol and the third position
is enjoyed by I B P with 14%.

GRAPH 4.7
USE OF DIFFERENT BRANDS OF ENGINE OILS:

Page 60

CONSUMER PERCEPTION

INTERPRETATIONS:
Servo I O C is a way ahead brand leader and enjoys the highest Market
share. This is corroborated even in the secondary data. They do not have
immediate challenges as per study they have only followers in the market
share.

TABLE 4.8
THE BRAND LOYALTY TEST:
Period

No of Respondents
Page 61

Percentage

CONSUMER PERCEPTION
6 Months
1 Year
2 Years
More than 2 Years
Total
Sources: (Primary Data)

18
20
28
34
100

18
20
28
34
100

ANALYSIS:
In the brand loyalty test 34% of the respondents used same brand for the
more than 2 years, 28% use the same brand in between 1 and 2 years and
20% of the users are using for lesser than 1 year and followed by 18% of
the user using 6 months.

GRAPH 4.8
THE BRAND LOYALTY TEST:

Page 62

CONSUMER PERCEPTION

INTERPRETATIONS:
There is high degree of brand loyalty towards the engine oil that is lesser
than and that is why Servo I O C is the brand leader. That means it is able
to satisfy to the customers need.

TABLE 4.9
ATTRIBUTE TEST:
Attribute

No of Respondents
Page 63

Percentage

CONSUMER PERCEPTION
Price
Good Quality
Easy Availability
Total
Sources: (Primary Data)

20
48
32
100

20
48
32
100

ANALYSIS:
The most important attribute for engine oil is the good quality 48%,
followed by easy availability to customers 32% and finally the price with
20%.

GRAPH 4.9
ATTRIBUTE TEST:

Page 64

CONSUMER PERCEPTION

INTERPRETATIONS:
The engine oil is the requirement for the car owner for smooth running of
the vehicle. Vehicle owner will be moving too often in different places
and there may be a need for the engine oil wherever they go, it also
means that the brands of engine oil, which is made available in various
places, will have more sales. It appears that Servo IOC has adopted this
distribution strategy and hence they are successful.
TABLE 4.10
PROMOTIONAL TEST:
Promotion
Advertisement

No of Respondents
20
Page 65

Percentage
20

CONSUMER PERCEPTION
Word of mouth
News paper
Bill Boards
Total
Sources: (Primary Data)

10
38
32
100

10
38
32
100

ANALYSIS:
While creating promotional strategy of engine oils the most important
promotional material is the Lube awareness campaign held in petrol
pumps 38%, Bill boards in petrol pumps, mainly at some intersection in
the 2nd position 32%, 3rd is enjoyed by advertisement 20% and remaining
10% in marketing company messages.

GRAPH 4.10
PROMOTIONAL TEST:

Page 66

CONSUMER PERCEPTION

No of Respondents
Advertisement
Word of mouth
News paper
Bill Boards
Total

INTERPRETATION:
While creating promotional strategy of engine oils the most important
promotional material is the Lube awareness campaign held in petrol
pumps 38%, Bill boards in petrol pumps, mainly at some intersection in
the 2nd position 32%, 3rd is enjoyed by advertisement 20% and remaining
10% in marketing company messages.

TABLE 4.11
AWARENESS OF IOC LUBE:
Page 67

CONSUMER PERCEPTION
Awareness
Yes
No
Total
Sources: (Primary Data)

No of Respondents
82
18
100

Percentage
82
18
100

ANALYSIS:
82% of the respondents are aware about Servo Engine oils. Only 18% of
the test respondents are aware of Servo lubricant.

GRAPH 4.11
AWARENESS OF IOC LUBE:

Page 68

CONSUMER PERCEPTION

INTERPRETATIONS:
INDIAN OIL is one the oldest company which introduced engine oil for
all types of automobile. Hence the awareness about their oil is very high
among the users suggested.

TABLE 4.12
TYPES OF VEHICLE:
Type of Vehicle
Motor Bike

No of Respondents
58
Page 69

Percentage
58

CONSUMER PERCEPTION
Scooters
Moped
Total

32
10
100

32
10
100

Sources: (Primary Data)

ANALYSIS:
In this type of vehicle the sample is collected from respondents. Out of
that, 58% are Motor Bike, 32% are Scooters and 10% are moped.

GRAPH 4.12
TYPES OF VEHICLE:

Page 70

CONSUMER PERCEPTION

INTERPRETATIONS:
Since the distribution of respondents in two wheeler4s segment has
Motorbikes, Scooters and moped there by requirements for 2T engine oil
will be there.

TABLE 4.13
TYPE OF OIL IN DIFFERENT SIZES:
Page 71

CONSUMER PERCEPTION
Type
Loose
Pouches
Sealed Tins
Total

No of respondents
58
30
12
100

Percentage
58
30
12
100

Sources: (Primary Data)

ANALYSIS:
In this, oil preference in the two wheelers 58% of the two wheelers
owners preferred loose oil. 30% Pouches and 12% sealed tins.

GRAPH 4.13
TYPE OF OIL IN DIFFERENT SIZES:

Page 72

CONSUMER PERCEPTION

INTERPRETATIONS:
In most of the vehicles the design of the vehicle is built up where by
petrol is consumed along with the oil hence the preference for loose oil is
more as this oil will be poured into the tank along with petrol. Some
vehicles have sealed can oil.

TABLE 4.14
BRANDS OF 2T OILS:
Page 73

CONSUMER PERCEPTION

Brands
Servo
Castrol
B.P.C
H.P.C
Total
Sources: (Primary Data)

No of Respondents
38
32
10
20
100

Percentage
38
32
10
20
100

ANALYSIS:
In the different 2T oil brand Servo is the leader with maximum share
market that is 38% in market closely followed Castrol by 32%, 10% and
20%is B.P.C and I.B.P.

GRAPH 4.14
BRANDS OF 2T OILS:

Page 74

CONSUMER PERCEPTION

INTERPRETATIONS:
Servo is ahead brand leader and enjoys the highest market share this is
corroborated even in the secondary data. They do not have immediate
challenges as per study they have only followers in the market share.

TABLE 4.15
THE BRAND LOYALTY TEST:
Page 75

CONSUMER PERCEPTION
Period
6 Months
1 Year
2 Years
More than 2 Years
Total
Sources: (Primary Data)

No of Respondents
18
20
28
32
100

Percentage
18
20
28
34
100

ANALYSIS:
In the brand loyalty test 34% of the respondents used same brand for the
more than 2 years, 28% use the same brand in between 1 and 2 years and
20% of the users are using for lesser than 1 year and followed by 18% of
the user using 6 months.

GRAPH 4.15
THE BRAND LOYALTY TEST:

Page 76

CONSUMER PERCEPTION

PERIOD

4
0
3
%
5
3
%
0
2
%
5
2
%
0
1
%
5
1
%
0
5
%
%
0
% 6

One
year

Months

Two
Year
s

More
Than
2years

Percentage

INTERPRETATIONS:
There is high degree of brand loyalty towards the engine oil that is lesser
than and that is why Servo is the brand leader. That means it is able to
satisfy to the customers need.

TABLE 4.16
ATTRIBUTE TEST:
Page 77

CONSUMER PERCEPTION
Attribute
Price
Good Quality
Easy Availability
Total
Sources: (Primary Data)

No of Respondents
20
48
32
100

Percentage
20
48
32
100

ANALYSIS:
The most important attribute for engine oil is the good quality 48%,
followed by easy availability to customers 32% and finally the price with
20%.

GRAPH 4.16
ATTRIBUTE

Page 78

CONSUMER PERCEPTION

Chart Title
100
80
No of Respondents

60
Axis Title

Percentage
40
20
0

Axis Title

INTERPRETATIONS:
The engine oil is the requirement for the two wheeler owner for smooth
running of the vehicle. Vehicle owner will be moving too often in
different places and there may be a need for the 2T oil wherever they go,
it also means that the brands of 2T oil which is made available in various
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places will have more sales. It appears that Servo IOC has adopted this
distribution strategy and hence they are successful.

TABLE 4.17
VARIOUS WAYS OF PROMOTIONAL TEST:
Promotion
Advertisement
Marketing
Lube Awareness
Bill Boards
Total
Sources: (Primary Data)

No of Respondents
10
05
19
16
50

Percentage
20
10
38
32
100

ANALYSIS:
While creating promotional strategy of 2T oils the most important
promotional material is the Lube awareness campaign held in petrol
pumps 38%, Bill boards in petrol pumps in the 2 nd position 32%, 3rd is
enjoyed by advertisement 20% and remaining 10% in marketing
company messages.

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GRAPH 4.17
VARIOUS WAYS OF PROMOTIONAL TEST:

No of Respondents

Advertisement
Marketing
Lube Awareness
Bill Boards
Total

INTERPRETATION:
While creating promotional strategy of 2T oils the most important
promotional material is the Lube awareness campaign held in petrol
pumps 38%, Bill boards in petrol pumps in the 2 nd position 32%, 3rd is
enjoyed by advertisement 20% and remaining 10% in marketing
company messages.

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TABLE 4.18
PURCHASE POINT:
Purchase point
Automobile Outlet
Petrol pumps
Lube outlet
Total
Sources: (Primary Data)

No of Respondents
26
52
22
100

Percentage
26
52
22
100

ANALYSIS:
The point of purchase of 2T oil mostly takes place at Petrol Pumps 52%
and followed by to some 26% of them purchase at Automobile outlet and
lesser extent 22% in the exclusive Lube outlet.

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CONSUMER PERCEPTION

GRAPH 4.18
PURCHASE POINT:

INTERPRETATIONS:
It is obvious that oil is changed at mostly at Petrol pumps mainly because
of the reason that it offers convenience to fill petrol. Hence, strategically
the oils should be distributed through Petrol Pumps.

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CONSUMER PERCEPTION
TABLE 4.19
AWARENESS OF IOC LUBE:
Awareness
Yes
No
Total

No of Respondents
82
18
100

Percentage
82
18
100

Sources: (Primary Data)

ANALYSIS:
82% of the respondents are aware about Servo 2T oils. Only 18% of the
test respondents are aware of Servo lubricant.

GRAPH 4.19
AWARENESS OF IOC LUBE:
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CONSUMER PERCEPTION

Awareness

Yes

No

INTERPRETATIONS:
INDIAN OIL is one the oldest company which introduced 2T oil for all
types of automobile. Hence the awareness about their oil is very high
among the users suggested.

CHAPTER-V
SUMMARY OF FINDINGS AND CONCLUSION
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CONSUMER PERCEPTION

FINDINGS:
In the Analysis of four wheelers segment, demographically they
have been classified as follows:?
Both the cars and trucks have different engines are require
different type of suitable engine oils for them, but the study
confined for cars only.
In the different brands of cars, Hyundai has the highest brand
preference of oil followed by Maruti, TATA, and Toyota.
Most of the respondents change oil of their vehicle for above 5000
Kms.
Most of the customers buy engine oils from petrol pumps only as it
offers convenience and as a symbol, of quality and professional
service can be obtained.
Most of the vehicle owners are well qualified and hence make their
own decision in buying different brands of engine oil.
The car owner would prefer to go to authorized service stations or
private service stations as they depend completely on professionals
to change the engine oil. This is because they would like to change
the running of the vehicles
Most of vehicle owners are aware about different types of engine
oils, as it is one of the oldest public sector company and a quality
provider to the customers.

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In the brand tested SERVO brand is the most preferred brand by
the vehicle owners followed by CASTROL, Hindustan Petroleum
Corporation, Bharath Petroleum Corporation, etc.
The engine oils enjoy brand loyalty among the respondents.
Easy availability to the customers and maintaining consistent
quality are the two most important attributes in the sale of engine
oils.
Lube awareness that is making the product aware to the customers
at petrol pumps is the most important promotional activity in making
the engine oil more popular.
In the Analysis of two wheelers segment, demographically they have
been classified as follows:
88% were respondents were male.

12% were respondents were female.

Most of the two wheelers use loose oil except few who use sealed
tin oils.
Out of 100% sample size 56% were motorbikes, 35% were
scooters and 09% were Mopeds.
Most of the two wheelers owners remain brand loyal to SERVO 2T
oils.
CASTROL has higher market share in the brands of 2T oils for two
wheelers followed by INDIANOIL.
Easy availability and a good quality are the most important criteria
for the sales of 2T oils in two wheelers segment.
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CONSUMER PERCEPTION
Lube awareness that is making the product aware to the customers
at petrol pumps is the most important promotional activity in
making the 2T oil more popular. To most extent, display hoardings
at intersections and junctions and media ads also play very
important role in the promotion of the 2T oils.

CONCLUSIONS:
Automobile run on petrol as the fuel are many type of automobiles such
as two-wheelers, and more than four-wheelers run on the road.
Depending upon the different engine capacities of the vehicle. The engine
those consume petrol as fuel need engine oil necessarily for smooth
running of the engine. Petrol is used as fuel for movement but it cannot
maintain smoothness in the engine. Hence, there is need for lubricating
the engine with necessary engine oils to increase the efficiency of the
engine. There are various such oils available in the market, for all types
of vehicles. One of the major suppliers of such engine oils and other
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CONSUMER PERCEPTION
different types of oils in INDIA is INDIANOIL CORPORATION LTD
(IOCL).The study is conducted to find out the perception of customers
towards engine oils offered by INDIANOIL with a brand name as
SERVO. To show that a suitable strategy for marketing can be developed.
Around 50 Customer of 4 wheelers alone & 50 Customer of 2 wheelers
were conducted to obtain their perception on different types of engine oils
available in the market.

RECOMMENDATIONS & SUGGESTIONS

Some of the suggestion in order to improve the Indian Oil Co., Ltd
Where as follows:
Indian-Oil Corporation Limited has many differentiated brands of
engine oils in the market but as compared to the competitors, the
numbers of types of brands are less in Indian-oil.
It should introduce differentiated engine oils for different engine
designs and communicate such differentiation to the target market.
Indian oil has to develop a brand preview strategy as its close
competitor Castrol does. They should design an attractive brand for

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their engine oil, good packing based on the culture of the society
and it should be attractive.
The philosophy of the brand equity may be adopted and every
effort of marketing program should be conducted as developing the
brand equity.
The petrol pumps owners, oil dealers whether wholesale or
retailers should be provided better incentives and good margin of
profit to create pump strategy to increase the sales of engine oils.
The pull strategy should be created through sufficient awareness
campaigns.
More lube advertisement near petrol pumps and display hoarding at
junctions and intersection should be used as promotional activities.
The company should appoint preferred personnel at selected petrol
pumps through media service to target the customer.
A corporate advertisement should be provided in electronic media
and print media.
The company should appoint an admirable person as brand
ambassador of the product to increase the sales as people admire
many great personalities.
Some P.O.P material like posters, handbills, pamphlets clearly
indicating the benefit to customers from the company.

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