Doms Iitr Lubol

7/29/2019 Doms Iitr Lubol

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LUBOL: Established Market

Largest three wheeler market in the world

2nd largest two wheeler market in the world

7th largest passenger car market in Asia &

10th Largest in the world 4th largest tractor market in the world

5th largest commercial vehicle market in theworld

5th largest bus & truck market in the world


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Petroleum Lubricants: Established

Market


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LUBOL: Trends in Automobile

Industry

Huge Demand for Vehicle Servicing, Repairs andMaintenance

Non Vehicle Manufacturers are getting into AutomotiveService Business

Branded service networks being set up both by vehiclemanufacturers and other players

Fuel Stations adding to the Servicing & AftermarketNetwork

Expansion of Service Networks by Vehicle Manufacturer

Increased Customer Awareness on VehicleMaintenance.

Emergence of One-stop-shop for vehicle owners to meettheir needs like servicing, spares, accessories,insurance, warranty, etc, under one roof


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LUBOL: Economics

Indian lubricant market is the sixth largest in theworld.

Volumes have been growing at 3-5% per year.

Indian Economy is second fastest growingeconomy in the World.

Infrastructure which is directly linked to theAutomobile.

Government is spending heavily in socialschemes which is bound to increase thedisposable income of the rural folks hencespending on automobile.

Better lifestyle and increased aspiration of ruraleo le will lead to rowth in automobile industr .


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Approach we adopted: SAP-

LAP

A mode of inquiry using situation-actor-process (SAP)-learning-action-performance(LAP) (SAP-LAP) models of flexible systems

management is used here.[Sushil,2000] We attempted to develop a SAP-LAP model of

inquiry to gain deep insight to come up witheffective action/recommendation.

Of the three generic SAP-LAP models forinquiry we have adapted the general problemsolving model for the case.


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SAP LAP for case: Analysing

SAP

SAP:

LUBOL

Situation

ProcessActors

Situation:Branding, rural penetration.

Actors:

LUBOL, Castrol, Servo,Mechanics, End-user,Rural business.

Process:

Targeting, Branding,


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LUBOL: LAP

Learning: current situation, industry

scenario, future possibilities.

Actions: Recommended on seven

different factors.

Performance: Measurement of

performance of new methods

and processes.

LAP:LUBOL

Learning

PerformanceActions


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STP + SWOT analysis + Porters 5 Force +

DifefrentiationSAP

SAP: Situation, Actor,Process


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Segmentation, Target,

Positioning

Market Segment

Rural RichConsumers

Rural consumersabove PovertyLine

Rural consumersbelow povertyLine


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LUBOL: SWOT Analysis

Price

monopoly.

Established

need in the

market.

Untapped

Market.Scope for

multiple

players

Core

segment

competency.(Competitor's

Reducing

Google Traffic.

Unhealthy

Supply Chain

Cash crunch.

IncreasingRivals and

competitors.


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Porters five forces forLubol:

Bargaining power of Buyers: Almost

Nil.

Bargaining Powe of Suppliers: Nil

because of presence of multiple

suppliers.

Entry Barrier: high entry barriers has

led to a low in the number of players

operating the industry.

Substitutes:Are non-existent or

unidentified for the product.

Though all the forces are of equal

importance and seek attention, the

Competition & Rivalry in the

market is the force demanding

immediate focus.


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LUBOL: 4-Ps

PRODUCT

Vaiety

Quality

Features

Name

Packaging

Services

Warranties

PRICE

List Price

Discounts

Allowances

Payment Period

Credit Terms

PROMOTION

Sales Promotion

Advertising

Sales force

Public Relations

Direct Marketing

PLACE

Channel

Coverage

Location

Inventory

Transport


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Differentiation + The rural perception +

Flank Attack + SuggestionLAP

LAP: Learning, Actions,Performance


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LAP Recommendations:

LAP:

Recommendati

on

Price

Availability

Afforda

bility

IT Solution

Channel

Collaboratio

ns

Customer

Knowledge

Branding


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Flank Attack

Weak spots of enemies are identified.

Geographic attack can be used.

Rural specific approaches are adopted in

design and promotion of products.


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The rural perception:

Brand perception.

Needs (Rural).


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Detailed Solutions: PART ONE(immediate)

Aggressive Marketing

Through Mechanics- Particularly Road SideMechanics.

Through ITCs Choupal Saagar.

Introducing new market offer.

Incentivize truck driver

Increasing reach of the product by hiring existingdistributors and logistics companies.

Appoint a Sanchalak, the prominent farmer, inevery village to which the company should extendits services. The Sanchalak should run the LUBOLpurchasing, information, and distribution business.


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Detailed Solutions: PART TWO (Shortterm)

Make it readily available.

Inventory reduction.

Tie up with unorganized sector.

Use of Marketing Research firm.

The name of product should be as such so that Ruralpeople can associate it with themselves.

Lubol should create a new celebrity instead ofdepending on actors or sportsperson as brandambassadors

Sponsor rural sports tournaments.

Enroll garages across the country in the network ofLUBOL Garages there by providing standardizedservice across the network.


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Detailed Solutions: PART THREE(long term)

Overall Cost Leadership with focus.

Acquire strategically important company.

Make LUBOL as a brand so that whenever peopletalk of lubricant LUBOL should be mentioned in

their communication. Customer Knowledge( End customer +trade

partner )

Long Term Outlook.

Product Innovation. Quality Strategy.

Brand Extension Strategy.

Communication Pioneer: Deeper consumer

connection.


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Performance Measurements:

By Measuring increase in sales of LUBOL.

By measuring Customer awareness about the

brand.

By measuring Customer Loyalty toward theBrand.

MarketResearch

SalesReports

feedback


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References:

Sushil, (2000),"SAP-LAP models of inquiry",

Management Decision, Vol. 38 Iss: 5 pp. 347

353
http://www.nikhilraj.com/flipkart-is-losing-google-organic-search-traffic/http://www.nikhilraj.com/flipkart-is-losing-google-organic-search-traffic/


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THANK YOU!!

Arun Nilaya Vaibhav

Doms Iitr Lubol

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