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 Objectives

o Brand Health

o Increase Awareness from 60% to 70%

o Strategy

o Effect and outcome

o Increase Market Share from 3% to 3.2%

 Effect and outcome

 Budget allocation

 Current Scenario

 Marketing Activities

 ATL

o Media

o Creatives

o Activities

 BTL

o Retailers

o Consumers

o 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
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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

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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

Andaman and Nicobar 7 - - - 0

Islands

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

Dadra and Nagar 11 - - - 0

Haveli

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

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Manipur 34 - - - 0

Madhya Pradesh 854 - - - 6

Mizoram 28 - - - 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, Mumbai-
Bengluru, 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

• General Tweets

– driving tips

– Safety Tips

– 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

• Company News

• News From The Industry

• Try and counter negative feedback from customers

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SlideShare & Scribd

• Upload Corporate Profile presentations and Tips from Total Lubricants

• Upload Corporate Social Responsibility Initiatives by Total Lubricants

• Create Safety Tips and Cooking tips branded By Total Lubricants

Youtube & Flickr

• Channels will be created and customized

• 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 2.0 Cr

Cold calling 0.5 CR
Sales activities 1.5 CR
Relationship activities 0.5 CR
Telemarketing 0.5 CR

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Outbound calling 0.25 CR

Inbound call handling 0.25 CR
Internet 3.75 CR
Online advertising 0.5 CR
Email campaigns 0.20 CR
Organic search 0.5 CR
Paid search 0.5 CR
Webinars 0.4 CR
Viral campaigns 0.55 CR
Ongoing email newsletters 0.3 CR
Social media 0.80 CR
Trade shows & events 0.75 CR
Trade show exhibits or events 0.25 CR
Seminars or events you create 0.5 CR
Events you sponsor 0.25 CR
Publicity 1 CR
Product- or solution-related 0.10 CR
stories
Distribute press releases (and 0.5 CR
optimize for the web)
Speaking engagements 0.20 CR
Blogs 0.10 CR
Stories about your company 0.10 CR
Direct mail
Simple sales letters or postcards
Special mailpiece for a
particular campaign
Traditional media 12 CR
Print ads 1 CR
Yellow pages 1 CR
Radio 2 CR
Television 2 CR
Outdoor 6 CR
Total
Over (under) goal

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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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