Synopsis

“MARKET ANALYSIS OF LUBRICANT

INDUSTRY”

COMPANY PROFILE:

Valvoline, a division of Ashland Inc., serves more than 100 countries worldwide and is a
leading marketer, distributor and producer of quality branded automotive and industrial
products and services.

STATEMENT ABOUT THE PROBLEM:

In the industrial lubricant segment, consumption is shifting to Asia as well, a trend that
has been accelerated by the recession. Industrial production is shifting to Asia and
Eastern Europe due to cost advantage. Further in Asia, economic stimulus spending
favors infrastructure projects, rural construction, and the like which is boosting the
consumption of industrial lubricants. This is in contrast to stimulus spending in
advanced economies, which are more focused on unemployment benefits and
healthcare.

Due to the high prices prevalent before the recession, there has been a significant
increase in the interest in re-refined base oils and lubricants. A common and growing
trend in Asia is for fleets to send their used-oil to a re-refiner to recover the basestock
which is re-additized with a fresh additive package and returned to the original
application. This sort of closed loop recycling is gaining popularity as it insulates the
consumer from fluctuating and growing crude prices. There is a growing supply of re-
refined base oils in North America and Europe, too. It remains to be seen if re-refining
becomes a significant factor in base oil supply. This route seems economic in times of
high crude prices, but can be uneconomical at other times due to the high energy cost
associated with re-refining.

Due to the recession, there is an increased focus on supply chain cost optimization. The
global lubricants industry went through a de-stocking phase during the early part of the
recession. However, this was a panic reaction to the uncertainty around business
recovery and the larger economic picture. Some confidence has returned; however,
lubricant companies are now focused on cost reduction. The purchase portfolio of
different base oils and additive packages is being rationalized. Product development
projects have a much closer scrutiny on financial return. Capital expenditure projects
are being slowed down. On the other hand sale and promotion spending continues at
pre-recession levels. Anything that directly helps move product is a must have
expenditure in the current business environment. Also, in the interest of protecting sales
volume, there is greater scrutiny of channel partners to ensure branded products are not
replaced by unbranded oils or even spurious oils. This has lead to a greater usage of
markers.

The requirement for environmentally adapted lubricants has begun to play an

increasingly important role in many industrial applications, particularly in the last two
decades. The present-day requirements for biodegradable and eco-friendly lubricants
imply that lubricants have properties that can minimize, if not eliminate, negative
environmental impact, such as contamination of soil and water, caused by lost
lubrication, leakage and accidents. The dominant factors that have a direct impact on
the environment and which characterize the lubricant and its chemical composition, are
toxicity, bio-accumulation and biodegradability. Biodegradability is perhaps the most
important factor which determines the fate of lubricant in the environment.
Research Objectives:

1) To study the techniques used by Lubricant companies in creating & maintaining its
potential customers .

2) To determine the tastes & preferences as well as brand image among the minds of the
Indian customers & mechanics.

3) To understand which lubricant companies provide the best product & services to its
customers.

4) To assess the promotional schemes used by the various companies to attract the
customers.

Scope of the Study:

1) This report is based on the study conducted at Valvoline, Gurgaon.

2) It aims to learn more about the lubricant companies & its various types of products &
facilities to its target customers.

3) It aims at understanding the market share of the existing players in lubricant industry.

4) The aim is to bring together lots of pieces of information about customers, retailers,
mechanics, responsiveness and market trends.

METHODOLOGY:

Primary Data:

For obtaining the primary data my project, I propose to use two research instruments i.e
Questionnaire and Structured interview:

a) Questionnaire

1. -Sample size: - 160

2. Sample area: - Faridabad

Gurgaon
Jhajar
Noida
SAMPLE DESIGN

SAMPLE PLAN
The Sample universe for the survey comprises for the mechanics.

QUESTIONNAIRE FOR MECHANICS:

Q1 Who takes the decision for the brand?

o Customers
o Mechanics
o Both

Q 2 From where do the customers buy?

o Retailers
o Customers Themselves
o Mechanics

Q3 Which oil do you mostly suggest to customers?

o Castrol
o Valvoline
o Gulf
o Shell
o Others

Q4 Why do you suggest this particular brand?

o Schemes
o Quality
 o Coupons
o Brand
o Advertisement
o Others

Q5 Which oil generally a customer demands?

o Castrol
o Valvoline
o Gulf – Total
o Shell
o Others

Q6 Which company is more focused towards workshop?

o Castrol
o Valvoline
o Gulf – Total
o Shell
o Others

Q7 What these companies do?

o Workshop up-gradation
o Loyalty scheme
o Promotional scheme
o Workshop manpower focus
o Other

Q8 What kind of promotional schemes you look for?

 o In pack
o Tie-ups
o Out packs
o Workshop focused
o Others

Q10 What does the consumer looks for while buying the products?
o Price
o Brand
o Mechanic say
o Performance

Table of Contents

1) Executive summary……………………….………………………………………………………

2) Chapter 1………..…………………………………………………………………………..…......

- Introduction……..…………………………………………………………...………..

- An overview: Is there a scope for a new entrant in industry...............................

- Research objectives…………………………………………..………………..…….

- Scope of the study……………………………………….…………………………...

- Benefits of the study.…………………………………………………………………

3) Chapter 2..…………………………………………………………………………………….……

- Industry overview..……………………………………………………………………

4) Chapter 3……….………………………………………………………………………...………..
 - Data Collection..………………………………………………………………………

- Limitations……….……………………………………………………......................

- Questionnaire - A questionnaire for mechanics……………..………..…………

5) Chapter 4 …………………………………..…………………………………………..………….

- Data Analysis & Presentation……………………………………………………….

6) Chapter 5 ….…………………………………………………………………….………………...

- Findings………………..……………………………………………………………...

- Recommendations & Suggestions………………………………………………...

- Conclusion…………………………………………………………………………….

..

Acknowledgement,

I would like to express my deep sense of gratitude to Mr. Manuj Prothi (Marketing Manager,
valvoline), who has been a continuous source of inspiration for me throughout the curriculum
and for his guidance and encouragement throughout the period of the project study. I am
indebted to his guidance, spirit and valuable suggestions.

I would like to thank everyone who has been a help directly or indirectly leading to
the successful completion of the study report.