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PASSENGER VEHICLE LUBRICANTS AND 2 & 3 WHEELER SEGMENT “FUTURE TRENDS & MARKETING STRATEGIES” Ravi N Zaidu GOCL. Marketing Strategies. Products meeting specifications laid by vehicle manufacturers and International Stds. Pass Cars 2/3 Wheeler
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PASSENGER VEHICLE LUBRICANTS AND 2 & 3 WHEELER SEGMENT “FUTURE TRENDS & MARKETING STRATEGIES” Ravi N Zaidu GOCL R N Zaidu, GOCL
Marketing Strategies • Products meeting specifications laid by vehicle manufacturers and International Stds. Pass Cars 2/3 Wheeler Mineral Oils SF, SG, SH, CF4 , CG4 Jaso MA/API SG Semi Synth. SJ Jaso FC Synth. SJ, SL Gear Oils – Viscometrics , B.Fluid – Dot 4 • Strong distribution network supported by innovative secondary marketing. Wider reach. • Creating Brand Pull • Workshop Equipments , Term Loans. • Genuine Oil Tie ups • Entry Level Pricing. • More Focus on rural markets R N Zaidu, GOCL
Brand Building • Brand / Product Based • Print, Audio Visual Media • Hoardings, Wall/Shutter Paintings • Road Shows – Consumers as targets • Meets – Retailer / Mechanic / Fleet Owner • Sponsorship of Events - Sports • Participation in Fairs , Expos etc. • Association in Free Service Camps • Provide defect free products and services R N Zaidu, GOCL
Distribution Channels • PSU’s Gas Stations Bazaar Segment • Pvt. Bazaar Segment - -> GAS Stations • Gas Station Man’f Distributor Fleet Operator Auth Ser Stn Retailer Mech Consumer Convenience/Deptt Stores • Impact of VAT???? Consumer R N Zaidu, GOCL
Pricing • Cost Plus /- Entry level Pricing Targeted margins • Premium Placement Mainly for High Perf. Products • Benefits passed on, in terms of • Trade Discount • Schemes for Retailers ( Volume Based ) • Schemes for Mechanics • Schemes for Consumers (POP/CG) Eventually market may become “Value for Money” rather than “Money” as a result of change in Consumer’s purchasing behavior. Impact of VAT??? R N Zaidu, GOCL
Building Customer Relationship • AMC’s (including pick up from home) • Auth. Service Stations – One Stop Shop • Help Lines • Driver Training Programme • Safety related promotions. • Medical Insurance, Education Support • Piggy backing on support to social needs – area specific. R N Zaidu, GOCL
Packaging / Merchandising • Large No of Product packs (4/3.5/ 3/1/.9/ .5/40 ml), but may plateau after sometime and then may decrease also. • Barrels / 50 ltr. Packs for Service Stations. • Attractive Packaging • Greens for CNG. • Desplay Stands. Exclussive Shoppes. R N Zaidu, GOCL
OVERVIEW • Oil specifications may improve further, with longer drain intervals. • Sump capacities may remain same or come down even for high performance, high powered cars. Hence growth in market potential may be slower than now. • Market for lubes in high performance sector may spread from big cities to towns in a big way. • Retail segment may get consolidated from existing Bazaar Trade predominantly, to, Auth. Service Stations and Gas Stations. • No of Packs may reduce in times to come. • Focus will be greater in rural markets particularly in 2/3 wheeler segment. • Severe competition in pricing will continue in times to come. Will become “VALUE FOR MONEY”.Customer will benefit- Qlty/Price. R N Zaidu, GOCL