Akshay D'Souza

A
Summer Internship Project Report

On
To research on loyalty programme and enhance the brand

effectiveness of servo
In the partial fulfilment of the Degree of
Master of Management Studies (Marketing)
under the University of Mumbai
By
Akshay Dolrich Dsouza

Class & Roll No: MMS A 14
Specialization: Marketing
Batch: 2013-15
Under the Guidance of
Mr. Vineet Kaul

Sr. Manager (branding), Indian Oil
Prof. Amarpreet Ghura

(Internal Guide)
Guru Nanak Institute of Management Studies and Research

Matunga, Mumbai-400019
2013
CERTIFICATE
This is to certify that the project work titled

To research on loyalty programmes and enhance the brand effectiveness of servo
is a bonafide work carried out by
Akshay Dolrich Dsouza
Class & Roll No: M.M.S. A 14
a student pursuing Masters in Management Studies from
Guru Nanak Institute of Management Studies
under my guidance and direction
Signature of Guide
Name
: Mr. Vineet Kaul
Designation
: Sr. Manager Branding
Companys Name
: Indian Oil Corp. Ltd
Address
: Indian Oil Bhavan, Ali Yuvar Jung marg,

Bandra east, 400051
Date:
Place:
DECLARATION
I, Akshay Dsouza student of M.M.S. A, Roll no. 14 of Guru Nanak Institute of

Management Studies, hereby declare that this project report under the title To research on
loyalty programmes and enhance the brand effectiveness of servo under guidance of Mr
Vineet Kaul is a record of my original work done as a part of my study.
All information in this document has been obtained and presented in accordance with
academic rules and ethical conduct.
ACKNOWLEDGEMENT
A successful project can never be prepared by the single efforts of the person to
whom project is assigned, but it also demands the help and guardianship of some familiar
person who provides their help actively or passively in the completion of a project. In this
context as a student pursuing Masters in Management Studies (Marketing), I would first of
all like to express my gratitude towards my college Guru Nanak Institute of Management
Studies and its council for allowing me to complete a worthwhile topic To research on
loyalty programmes and enhance the brand effectiveness of servo to work upon and to boost my
interest towards the same.

I would like to express my gratitude to my guide Mr. Vineet Kaul for his valuable
ideas, guidance and for providing the relevant data, time to time, to successfully complete
this project. I convey my sincere thanks to him.
In process of completing the project, I am also grateful to Prof. Amarpreet Ghura
(GNIMS) for providing guidance and direction. I thank all my seniors, colleagues and
friends for their significant contributions. The project couldnt have been complete without
each of their time and vital help.
TABLE OF CONTENT
SERIAL NO.
TOPIC
PAGE NO.
EXECUTIVE SUMMARY
INTRODUCTION
SECTOR INFORMATION
COMPANY
INFORMATION
5
CHAPTER 1- TYPES OF
LUBRICANTS
6
CHAPTER 2- SERVOs
POPULAR PRODUCTS
7
CHAPTER 3- MAJOR
15
COMPETITORS OF
SERVO
8
CHAPTER 4- BRANDING
16
AND PROMOTION
9
RESEARCH DESIGN
18
10
FINDINGS
21
11
SURVEY SAMPLES
25
12
CONCLUSION
35
13
BIBLIOGRAPHY
37
LIST OF TABLES AND GRAPHS

PIE DIAGRAM- ENGINE OIL
PREFRENCES
PIE DIAGRAM- GREASE
PREFERENCE
21
PIE DIAGRAM- TRANSMISSION OIL

PREFRENCES
23
22
EXECUTIVE SUMMARY
An energy self sufficient India can alter the economic, political and manufacturing landscape of the
region.the quest for energy will create new economic and strategic challenges, right from mobilizing
capital to engagingin subtle diplomacy.
IndianOils own performance in the financial year 2006-07 was a case of exceeding expectations
with both turnover and profits reaching new highs, product sales registering quantum jump and the
refineries as well as pipelines networkenhancing their capacities beyond 60MMTPA and registering
record throughputs. New projects worth rs.10000cr were put on stream during the year. Among new
business the petrochemical and naturalgas verticals and participating interests in a clutch of oil and
gas assets in india and abroad has ensured expansion of the upstream portfolio.
IndianOil has ambitious investment plans of rs.43,250 cr in the next five years. By 2011-12 the
indian oil group with 80MMTPA refining capacity in its fold would be playing a key role in realizing
Indias bid to merge as an export oriented hub for finished products. The pipelines network which
provides strategic logistics advantage to the marketing operations, is also set to cross the 10,000km
mark in next two years.
In marketing IndianOil is set to leverage the combined strength of 32,000 marketinng touch points,
with focus on hitherto untapped rural markets, non-fuel revenue and pure retailing business.
IndianOil aspires to be Asias leading commercial R&D organisation in the downstream hydrocarbon
sector by building on its capabilities in developing onnovative technologies, products and processes
and nodal research in alternative fuels.
Beyond core business IndianOil is working to merge as a major player in the petrochemical business
by the year2011-12, with two petrochemical hubs shaping up at Panipat and Paradip.In natural gas
business it is attempting quantum growth in LPG imports, infrastructure and marketing besides city
gas distribution.
With Indias energy needs projected to grow by 40% in next five years,the future is indeed full of
promises for IndianOil; future the 31,700 strong IndiaOil team shall build as they fuel the dreams of
over a billions of their countrymen.
INTRODUCTION
Lubrication is the art of reducing friction between rubbing or rolling surfaces. In the recent past two
terminologies have gained currency turbology, the science of rubbling; Rheology, the study of stream of
flow. The earliest knowledge of lubrication is evident from grease lubricated chariot wheels excavated from
the ruins.Water is a natural lubricant but with very low viscosity and low boiling point,besides contributes to
rusting and corrosion. Vegitable oils have excellent lubrication properties but have very poor oxidization
stability,high pour point, rapid thickening etc. Hence most lubricants are petroleum based.SERVO brand
from Indian oil is the brand leader among lubricants and greases in India and has been conferred as the
consumer super brand status by super brand councils of india. Recognized for its brand leadership by the
world brand congress an a master brand by CMO Asia. SERVO has now carved a significant niche in over
20 countries across the globe.
With over 1000 commercial grades and over 1500 formulations encompassing nearly every conceivable
application, SERVO serves as on stop shop for complete lubrication solution in automotive industry and
marine segments. Recognized for cutting edge technology and high quality products SERVO is backed by
IndianOils world class R&D and an extensive blending and distribution network.
The recent top end offerings in the segment are all new engine oils on a differentiated synthetic platformSERVO futura synth, a 100% synthetic premium lubricant for diesel and petrol cars and SERVO 4T synth
advanced synthetic oil for 4stroke two wheelers- represents a big leap in bringing technologicaly advanced
motor oil of global standards to indian market. Both products offer outstanding engine protection and
performance that far surpasses the benefits offered by conventional mineral oil based lubricants.In the
retailing segment besides Indianoil petrol stations, SERVO range of lubricants is available through a
network of unique SERVO stockist management system across the country. The products are available in
every corner of the country through various retailing initiatives like SERVOXPRESS stations, Bazaar outlets
and thousands of auto spare spare parts and shops across the country with a unique concept of Gramin
SERVO to reach hinterland.
RESEARCH
How ever a product maybe , how excellent the quality and the contents mightbe but to stay in this cut throat
competition every brand must have the best marketing and promotion. Without such promotions the product
is not known to the people and the sustainablity for a long time is not possible.
SERVO as a brand does all what is possible to beat its competitors. For that it takes the advantage of loyalty
programmes for the mechanics. Through these loyalty programmes SERVO stays connected with the
mechanics. It looks after the benefit of the mechanics by keeping them happy.Only when the mechanics are
happy with SERVO then they will promote the same to their customers. Hence satisfaction of the mechanics
needs is very important as they are the ones who are directly in contact with the actual customers.
Mechanics advice is the one that can do the true promotion of a brand of oil. So the core of the loyalty
programme is to keep the mechanics so much satisfied that everytime they should recommend their
customers to use SERVO engine oil. Only because of the specialist i.e. the mechanics advice there would be
high demand for SERVO.
This research will help to know how much such loyalty program helps to attract the mechanics. Such loyalty
programmes are offered by most of the leading oil companies like Castrol, Mak, Mobil, Shell etc. Through
this research it will be useful to know how do other cometitors attract the mechanics through their loyalty
programme. Most importantly the research will help to know is the loyalty programme really valued by the
mechanic.
SECTOR INFORMATION
The lubricating oil and grease are one of the most important sectors of the petrochemical industry. The
lubricating oil and grease market in India is of the order of 1.3 million tonnes and is growing at around 4.5%
annually. The moderate growth is paradoxically due to the supply of better quality of lubricants which have
longer servicing capability. The lubricant market is estimated to grow to the level of 1.42 million tonnes in
2006-07 and to approximately 2 million tonnes in 2014-15.
The Indian lubricants industry claims to be the sixth largest in the world. It has the presence of almost all
major MNCs which include Shell, Mobil, Gulf oil, Caltex. Some of these oil majors have even tied up or
renewed old ties with public sector undertakings, thereby gaining the advantage of distribution and
infrastructural networks. The industry is being constrained by high petroleum prices.
The Lube market consists of two major segments, automotive and industrial, having a market share of 60%
and 40%, respectively. Most of the competition is crowding into the first category. In the automotive
segment, while cars and two or three wheelers segment accounts for 30% of the market, diesel operated
engines, trucks and other heavy vehicles have the bulk share of 70%.
According to India Automotive Engine Oil Market Forecast & Opportunities, 2018, the market for
automotive engine oil in India has observed tremendous growth as a result of increasing automotive sales.
The automotive engine oil market revenues are expected to grow at the CAGR of 19% till 2018. As a result
of rise in consumer spending, the market is also witnessing increasing demand for luxury cars and heavy
built motorcycles. The engine oil companies are getting benefitted as these vehicles require synthetic engine
oils which are costlier than conventional engine oils.
COMPANY INFORMATION
Indian Oil Corporation Ltd. is India's largest company by sales with a turnover of Rs. 4,73,210 crore and
profit of Rs 7,019 crore for the year 2013-14. IndianOil is the highest ranked Indian company in the latest
Fortune Global 500 listings, ranked at the 88th position. IndianOil's vision is driven by a group of dynamic
leaders who have made it a name to reckon with.
With over 34,000 strong workforce, IndianOil has been helping to meet Indias energy demands for over
half a century. With a corporate vision to be the Energy of India, IndianOil closed the year 2013-14 with a
sales turnover of Rs. 4,73,210 crore and profits of Rs 7,019 crore.
The IndianOil Group of companies owns and operates 10 of India's 22 refineries with a combined refining
capacity of 65.7 Million Metric Tonnes Per Annum (MMTPA), i.e. 1.30 million barrels per day
approximately. IndianOil's cross-country network of crude oil and product pipelines spans 11,214 km with a
capacity of 77.258 MMTPA of crude oil and petroleum products and 10 MMSCMD of gas. This network is
the largest in the country and meets the vital energy needs of the consumers in an efficient, economical and
environment-friendly manner.
The Corporation has a portfolio of powerful and much loved energy brands that includes Indane LPG gas,
SERVO lubricants, XtraPremium petrol, XtraMile diesel, PROPEL & petrochemicals, etc. Validating the
trust of 82 million households, Indane has earned the coveted status of 'Superbrand'.
With a steady aim of maintaining its position as a market leader and providing the best quality products and
services, IndianOil is currently investing Rs. 47,000 crore in a host of projects for augmentation of refining
and pipelines capacities, expansion of marketing infrastructure and product quality upgradation. IndianOil is
the second largest player in the domestic petrochemical market. Twenty One new exports destinations were
added during the year. During the year 2013-14 highest ever sales of petrochemicals 2.114 MMT has been
achieved against 2.072 MMT during 2012-13. The sales revenue of Rs. 19,000 Crores was achieved during
2013-14 compared to Rs. 16,534 Crores last year, registering 15.6% growth.
Refineries of IndianOil- Digboi refinery (upper assam), Guwahati refinery (assam), Barauni refinery
(bihar), Gujrat refinery (vadodra), Haldia refiney (west bengal), Mathura refinery (uttar pradesh), Panipat
refinery (hariyana), Bongaigaon refinery (west guwahati), Pradip refinery (orissa).
History of SERVO- SERVO was launched by IndianOil, India's flagship petroleum refining and marketing
company, in 1972. The brand entered the market in collaboration with Mobil. After 1974, when the
collaboration ended, SERVO went into an expansion mode. It developed an extensive marketing
infrastructure, supported by one of Asia's most advanced research and development centres. Established in
the suburb of New Delhi, in 1972, the R&D centre is a world-class facility that has to its credit several
significant breakthroughs. Today, the brand is marketed through IndianOil's nation- wide retail outlets, now
numbering over 20,000.
Products- As being a huge organisation established since 1964 and hence then expanding rapidly IndianOil
has come up with wide range of products and services. It is through the consistent research and development
activitiesthat Indianoil that it is being able to identify, allocate and satisfy customer needs.
IndianOil is producing automotive lubricants, indane gas, autogas, natural gas, petrol, diesel, gas oil, jet
fuel, marine fuels and lubricants, petro chemicals etc. The project being specifically about automotive
lubricants and oils we would hence highlight the same.
CHAPTER 1- TYPES OF LUBRICANTS

Engine oil
The oil used in your car has two primary ingredients: base oil and additives. The base oil allows the motor
oil to perform its vital function - lubricating the engine's moving parts to protect them against wear and tear
caused by friction. The additives provide additional engine protection by helping to prevent the oil from
deteriorating under the engine's extreme temperature conditions. Motor oil or engine oil is an oil used for
lubrication of various internal combustion engines. The main function is to reduce wear on moving parts; it
also cleans, inhibits corrosion, improves sealing, and cools the engine by carrying heat away from moving
parts.Motor oils are derived from petroleum-based and non-petroleum-synthesized chemical compounds.
Motor oils today are mainly blended by using base oils composed of hydrocarbons, polyalphaolefins , and
polyinternal olefins (PIO), thus organic compounds consisting entirely of carbon and hydrogen. The base
oils of some high-performance motor oils however contain up to 20% by weight of esters.
Automotive Greases
Grease is a semisolid lubricant. It generally consists of a soap emulsified with mineral or vegetable oil. The
characteristic feature of greases is that they possess a high initial viscosity, which upon the application of
shear, drops to give the effect of an oil-lubricated bearing of approximately the same viscosity as the base oil
used in the grease. This change in viscosity is called thixotropy. Grease is sometimes used to describe
lubricating materials that are simply soft solids or high viscosity liquids, but these materials do not exhibit
the shear-thinning properties characteristic of the classical grease. For example, petroleum jellies such as
Vaseline are not generally classified as greases.Greases are applied to mechanisms that can only be
lubricated infrequently and where a lubricating oil would not stay in position. They also act as sealants to
prevent ingress of water and incompressible materials. Grease-lubricated bearings have greater frictional
characteristics due to their high viscosity.
Coolants
Coolant is a half-and-half mixture of a form of glycol and water. The glycol represents the antifreeze
element of the mix, guaranteeing that the fluid doesn't turn into ice under harsh winter conditions. On the
other hand, glycol also prevents the coolant from reaching the boiling point in Death Valley heat; it keeps
engine temperatures stable under all climate extremes and driving conditions.
Brake fluids
Brake fluid is a type of hydraulic fluid used in hydraulic brake and hydraulic clutch applications in
automobiles, motorcycles, light trucks, and some bicycles. It is used to transfer force into pressure, and to
amplify braking force. It works because liquids are not appreciably compressible. One of the important
characteristics of brake fluid is its boiling point. Hydraulic systems rely on an incompressible fluid to
transmit force. Liquids are generally incompressible while gases are compressible. If the brake fluid boils
(becomes a gas), it will lose most of its ability to transmit force. This may partially or completely disable the
brakes. To make matters worse, the only time you are likely to boil your brake fluid is during a period of
prolonged braking, such a drive down a mountain -- certainly not the best time for brake failure!
The three main types of brake fluid now available are DOT3, DOT4 and DOT5. DOT3 and DOT4 are
glycol-based fluids, and DOT5 is silicon-based. The main difference is that DOT3 and DOT4 absorb water,
while DOT5 doesn't.
Transmission fluids
Transmission fluid is used to lubricate the gears of a vehicle's transmission system to prevent wear and
regulate temperatures. Just like the oil, it needs to be changed regularly to do its job. The type of
transmission fluid depends on whether a car has manual or automatic transmission, and the make and model
of a vehicle can vary the type of transmission fluid needed. The owner's manual will provide guidance as to
which type should be used, and it will also have recommendations for when to get the fluid changed. Manual
transmission fluid tends to be less viscous than that used in automatic models because so much of the
shifting process is controlled by the driver, which puts less stress on the system. It can be difficult to check
the level of transmission fluid in a manual vehicle since they typically do not have dipsticks.
Gear oils
Gear oil is similar in some ways to the motor oil used for engine lubrication, but has many different
properties in order to cope with the different demands that are placed on it. Motor oil, for example, needs to
be able to take a great degree of heating without breaking down, since it lubricates the parts in an engine that
are directly adjacent to where the combustion takes place. Gear oil, however, does not reach the
temperatures of engine oil. In contrast, it is associated with parts that move somewhat slower and which are
far away from the combustion in the engine, although it does get heated significantly as the vehicle is driven.
In most passenger vehicles, the gear oil is not something that needs to be regularly replaced, as is the case
with motor oil. For motorcycles, on the other hand, it is recommended to change it every 3,800 miles (6,000
km). A motorcycles gear oil will deplete over time and lose its ability to protect the clutch and gears.
Changing this type of oil in a motorcycle is similar to changing a cars motor oil.
CHAPTER 2- SERVOs POPULAR PRODUCTS

(Engine oils)
SERVO 4T ZOOM
It is high performance engine oil for 4stroke vehicles 2 and 3 wheelers.

Has a high viscosity index.
Has superior performance in terms of oxidization capabilities.
Excellent wer protection at high tempratures.
Enhanced engine and gear life, cleanliness of the engine and high fuel efficiency.
Potential oil drain period of more than 5000kms.
SERVO 4T SYNTH 10W30
Synthetic base helps to impart low temprature pumpability and excellent evaporation
control in all situations.
Stable viscosity index.
Enhanced lubrication helps to maintain high acceleration and power throught the life of
the engine.
Potential improvement in fuel economy.
Useful for 4 stroke motor cycles and scooters particularly operating on wet clutch system.
SERVO Futura synth
Fully synthetic engine oil recommended for high performance gasoline engines.
Meets the strictest emmiting standards.
Formulated for long life of engine and oil.
Excellent in extreme weather conditions.
SERVO 2T supreme
Servo 2T Supreme is low smoke semi-synthetic two stroke engine oil developed to meet the
critical requirements of high performance two stroke engines manufactured by leading auto
makers.
Low exhaust smoke
Engine cleanliness
Minimizes spark plug fouling.
Easily pumpable by oil pumping systems
Servo 2T Supreme is recommended for lubrication of scooters, autorickshaws, motorcycles
and mopeds operating on two stroke engines.
The recommended dosage of Servo 2T Supreme is 20 ml of oil per litre of petrol.
SERVO PREMIUM 20W-40-
Servo Premium 20W-40 is high performance diesel engine oil, which provides excellent
protection against corrosive wear in all types of diesel engines.
Improved cold starting and faster engine warm up.
Outstanding engine cleanliness even under most severe operating conditions.
Lower fuel and engine oil consumption.
For highly supercharged diesel engines and off highway equipments.
(COOLANTS BY SERVO)
SERVO KOOL PLUS
Servokool Plus is a triple action long life radiator coolant.

This one of the most popular coolant that is being used at current times as preferred by majority
of the mechanics.
Does not boil and vaporise in the hottest summer or freeze in swear winter.
Increases cooling efficiency.
Reduces maintenance costs and increases radiator life.
Servokool Plus is recommended for passenger cars, light commercial vehicles, heavy vehicles
and heavy earth moving equipment as a radiator coolant.
SERVO KOOL READY
Servokool Ready is a triple action long life ready to use radiator coolant diluted with purified
water.
Bio-degradable and environment friendly.
Prevents corrosion of radiator coolant and other parts.
Free from Amines, Nitrites, Phosphates and Borates.
Servokool Ready is recommended for passenger cars, light commercial vehicles, heavy vehicles
and heavy earth moving equipment as a radiator coolant.
(BREAK OILS BY SERVO)
SERVO BRAKE FLUID DOT 4
Servo Brake Fluid DOT 4 is a heavy duty hydraulic brake fluid processed from carefully selected
ingredients and incorporates a balanced combination of anti-oxidants, metal deactivator and
corrosion inhibitor.
Prevents vapour lock problems in high temperature operating conditions.
Has improved low temperature characteristics and can be safely used in cold climate.
Ensures long service life of Brake Fluid and components of brake mechanism.
Servo Brake Fluid DOT 4 is recommended for various hydraulic brake systems including disc
type operating in various new generation automobiles.
SERVO BRAKE FLUID DOT 3 PLUS
Servo Brake Fluid DOT 3 Plus is heavy duty hydraulic brake fluid which ensures long service
life of the brake fluid and components of brake mechanism.
Provides very high safety factor during driving at high speed in city and under heavy load in hilly
regions
Has longer service life, due to excellent oxidation stability

Provides excellent protection against corrosion to iron, non-ferrous metals and zinc alloys.
(GREASES BY SERVO)
SERVO GREASE MP
SERVO Grease MP is a premium quality lithium base grease having a high drop point and good
thermal and structural stability. It has high degree of resistance to oxidation and provides
protection against rusting and corrosion. It is an excellent multipurpose grease suitable for all
automotive grease applications.
SERVO MOLEX
SERVO Grease Molex is a multipurpose lithium base grease, compounded with finely dispersed
MoS2, which is a very effective solid lubricant with extremely good anti-scuffing characteristics.
It provides protection to moving parts under very severe shock load conditions, resists water
washout and gives long service life. It is recommended for chassis fittings, wheel bearings, grease
cups, grease lubricated universal joints and other lubrication points in passenger cars, trucks,
buses, farm tractors mobile construction as well as earth moving machinery.
SERVO GREASE WB
SERVO Grease WB is a sodium base grease which gives excellent performance even when
subjected to extremely heavy shear. This grease maintains its structural stability over long service
and withstands excessive churning effectively.It is recommended for wheel bearings and various
other automotive grease applications which are not exposed to moisture.
(TRANSMISSION OILS BY SERVO)
SERVO TRANSMISSION C4 SAE 10, C4 SAE30(Multigrade)
Servo Transmission C4 fluids are formulated to meet the specification of General Motors
Corporation, USA for hydraulic transmission fluid type C4.
Enable smooth operation of precision hydraulic control systems.
Protect gear and other lubricated parts against wear.
Give high protection against rust and corrosion to the components of the transmission system.
Servo Transmission C4 fluids are recommended for all commercial power shift transmissions,
industrial torque convertors and automatic transmissions.
SERVO TRANSDEX II
Servo Transdex II is a red dyed transmission fluid having a modified friction characteristics.
This oil is blended from selected base stocks and additive system to meet the stringent
performance requirement.
Provides better oxidation stability and low temperature flow.
Protects parts against rusting even during idle period.
Minimise formation of sludge and varnish, thus maintains the system clean.
Servo Transdex II is recommended for automatic transmission and powersteering units of
automobiles and light trucks.
CHAPTER 3- MAJOR COMPETITORS OF SERVO

CASTROL
Castrol India Limited is an automotive and industrial lubricant manufacturing company. Castrol
India is the 2nd largest manufacturer of automotive and industrial lubricants in the Indian
lubricant market and owns around 22% market share in the overall Indian lubricant market. Its
part of Castrol Limited UK (part of BP Group). It has 5 manufacturing plants that are networked
with 270 distributors, serving over 70,000 retail outlets.
Castrol a leading brand in india used by a number of mechanics produces engine oils and other
lubricants.The quality of castrol lubricants is liked by most of the mechanics. As per the survey
research castrol leads in engine oil market at current.
Products by castrol:
Leading products
Castrol power1 4T, 10W 30, 20W 50 and 4T(Racing)
Castrol active 4T 20W 40, 4T 20W 50, 4T 10W 30, Active scooter and
Active scooter 20W 40
Castrol premium formula gel, castrol premium long life grease.
Veedol
Tide Water Oil has been one of the leading players in the Indian lubricant industry since 1928. It
manufactures and markets Veedol brand of lubricants. The extensive distribution network
consists of 50 distributors & over 650 dealers servicing over 50,000 retail outlets. The network is
fed by 5 plants and 55 depots located strategically across the country. Its repertoire of automotive
products includes engine oils for trucks, tractors, commercial vehicles, passenger cars and
two/three wheelers. It also produces gear oils, transmission oils, coolants and greases for
automobiles. For industrial application, it manufactures industrial oils, greases.
Leading products
Two wheelers- Veedol take off 4T plus,Veedol take off 4T premium, Veedol Swift.
Four wheelers- veedol blue blood and veedol turbo star.
Veedol wb special grease, Veedol all purpose special grease.
Shell
Royal Dutch Shell is one of the largest and most diversified international investor in India's
energy sector among all global integrated oil companies with nearly US$1 billion invested
already. It is the only global major to have a fuel retail license in India. Besides being a major
private sector supplier of crude, products, chemicals and technology to public/private sector oil
companies, Shell also has key interests in lubricants, bitumen while operating an LNG receiving
and re-gasification terminal.
Leading products
Shell helix, Shell advance and Shell advance ultra.
CHAPTER 4- BRANDING AND PROMOTION
Oil companies to sustain in the market need to focus a lot on their branding and promotion strategies. They
have to see to it that their product is known by their customers. If the product awaremess is low the success
of the product doest seem to rise and ultimately leading to failure. The company will hence face huge losses
if proper branding and advertisement is not done to uphold the product. For this companies beyond their
limits to make their products aware to the customers. Such promotions are not only to be done during the
launch of a new product but throught the life of the product so that the customers prefrences are not shifted
to some other brands. For such branding process companies spend heavily on advertisement of their product.
Such advertisements may be through newspapers,televisions, door to door promotions, advertisements at
public transport places, hoardings, brouchers etc.
Through such adverrtisements every company tries to dig into the minds of its targetedd customers that owr
product is better than others.Companies use human emotions to display their connect with the customer. The
advertisement or promotion technique will be a big failure if it fails to have a connct with its target audience.
Techniques used by companies to promote

Sponsorship: Many of the oil companies promote through events by being a sponsor. The
major advantage of such sponsorship of events is that it reaches a large number of
customers at one time. The event hosts are asked to mention the names of the sponsors.
Moreover the banners at the event make the promotions more successful.
Awarness camps: Setting up stalls or awareness camps at public places. Many af the
companies use this method. It seems to be very eye catchy and the customers remember
the product even if they dont buy it at that point of time.
Logos: On the the tee shirts of sportsmen, their equipments like bats, cars, etc. As the
customers see such logo they memorize the brand as they se it over and over again.
Races: As these are oil companies they even promote by arranging events such as races.
CRS activites: Such csr activites are done by the companies for the welfare of the society
but along with it they even promote their brand. Eg. Teaching the children of backward
classes, Funding some social cause, giving financial help to areas affected with natura
calamities, etc
Loyalty programmes
These programmes give various benefits to the intermidiate customers or the influencers
i.e. the mechanics and garage owners. Oil Companies have now realised that they need to
have a connect with the mechnaics because they are the ones who can actually and
directly promote the brand to the final consumers. For such reasons companies make
loyalty programmes for the mechanics. This method of branding is used by many of the
oil companies.
To promote the brand they keep special discounts and offers that are available only to the
mechanic. It may include cash uder cap, points inside the oil can, discount on bulk
purchase,gifts on being a frequent and loyal buyer or on completing the target, etc
Besides such monetary and gifts discounts companies have also designed up promotion
strategies to have an emotional connect with the customers.
For eg.
Shell mechanic samriddhi programme wherein the mechanic can enroll in the scheme
through internet or telephone. Under this scheme the children of the mechanics are given
scholarships on completing a set of target points. However this scheme has failed to reach
the mechanics as there is no awareness level of this scheme.
Similar programme launched by castrol was castrol to provide insurance to the mechanics.
But this too did not have any awarness. (As per the survey done on 40 different garages)
Companies who give benefits to the mechanics
Castrol
Garage name board with castrol logo, Cash
under caps-rs.10 to 1000 as per the size of
the can, party arranged for the mechanics
once a year- in the party mechanics are
given info about the lubricants and
dinner/lunch, gifts etc
Veedol
Shell
Point based system- gifts on

500,1000,5000pts and so on, gives
calculators,toolkits, uniforms to
mechanics,etc
Point based- gifts like mobiles camera
laptops etc
Similar to this every oil company tries to give the mechanics benefits asper their
own marketing strategy.
As per the survey SERVO arranges a party for the mechanics once a year and has
discount and cash redeemable cupons under the caps.
Mak too gives party for the mechs, cash cupons, uniforms.
Spenta gives 1 carton free on 7purchased and a gold coin,uniform , movie tickets.
RESEARCH DESIGN
RESEARCH PROBLEM
How to increase SERVOs awareness level.

To find out customers perception towards other competing brands.
Seek the brand loyalty of mechanics toward servo and other brands.
Extract information from the mechanics regarding their preferred brands in concerns of
profits, other benefits and quality.
THE OBJECTIVE OF THE RESEARCH

To know the relationship of loyalty programme with brand effectiveness.
To know how the level of preference of SERVO when compared to other competing
brand.
Which factors effect the consumer buying behavior.
To know which branding strategy is most effective.
To get a breif idea about which specific product of servo is most preferred.
IMPORTANCE OF THE STUDY

This study will help servo to know its recent competing brands and their products.
It will help to know the competitors customer pull strategy.
Servo can redesign or reimpliment their marketing techiniques as per the scenario and
market requirements.
The effectiveness of loyalty programmes will be known trough this research.
It will also help to know mechanics reviews about servo in terms of quality & branding.
Sources of data
Two data sources build up this research. The primary source which includes the field study and the
secondary source which includes the internet and official website of the company. All the data collected is
cent percent genuine and is applied only after rechecking (secondary).
Data collection instruments

The data collection instrument used here is in the form of a questionare. The questionare contained a set of
10 question. All the primary data collected for the research is through this instrument of data collection.
Questionare contains two parts. One that gathers the information about himself and the second part about his
lubricant prefrence and the reasons for it.
Hence the mechanics at vairous garages were interviewed and asked questions regarding their engine oil
prefrences, other lubricant uses, loyalty benifts and their reviews.
Primary data collection
A total of 40 garages were visited. 15 four wheeler garage mechanics and 25 two wheeler garage mechanics
were interviewed. All the answers are derived from their own personal prefrences. The mechanics from
whom the information was taken was the most experienced and best said mechanic of that particular garage.
Sampling
The method of sampling used here is geographically clustered sampling. Two different regions of mumbai
are selected for primary data collection. They include the western region and the central mumbai.
Western mumbai Andheri and Kandivli.
Central mumbai- Mulund, Nahur, Thane and Airoli
Such different regions were selected so as to get the most accurate and unbaised information.
Sample of questionare
Information about the garage and the mechanic
1) Name, Place and Type of the garage.
2) Name of the mechanic.
3) Experience of the mechanic and the operational years of the garage.
4) Approximate number of vehicles serviced or repaired daily.
Information about the lubricants and oils used
5) Which lubricants do you use for
EngineGearsBreaks6) Which lubricant or engine oil you used earlier. Which one do you prefer
now and what is the reason for such replacement?
7) Are you in any loyalty programme. How are you enrolled?
8) What benefits have you earned from any of the oil companies?
9) Any comment about the loyalty programmes.
10) Finally according to you which is the best engine oil keeping in mind
the parameters such as quality, profit and loyalty benefits?
FINDINGS
Mechanics most used engine oil brand.

The answer to this question is arrives by analyzing the 5th, 6th and 10th question.
Question no.5 asks the engine oils used in the garage.

Question no.6 helps to know which automotive oil was used by the mechanic earler and did he
replace it with some other brand.
Qestion no.7 will let us finally know which oil he thinks is the best keeping parameters in mind like
is own profit, quality of the oil, demand and loyalty benefits.
Considering four major oil companies
Castrol
Servo
Veedol
Shell
other
Castrol is the most widely used engine oil. Veedol, Servo and Shell are also used by a
considerable quantum of mechanics.
Other players include Mak, Total, Elf, Motul and Mobil.
High customer demand is the reason of more use of castrol , as said by the mechanics.
Every mechanic uses different brands. The data is as follows
Mechanics preferred brand of grease.

The results of this question are from question no.5
Castrol
Servo
Shell
Veedol
Others
After the research and meeting the mechanics it was found out that they do not strictly follow
any particular brand of grease.
The use of grease depends mostly on the availability.
The stickiness of the grease is taken into consideration. But after questioning the mechanics it
was found out that all the greases work more or less the same.
Use of grease in 2wheelers is very less as per the mechanics.
It was observed that chain spray is now being used instead of grease for the chain of the
motorbikes.
Mechanics prefer only white grease.
Veedol and Castrol are used by many mechanics.
Other greases are hizol ap3, lancer mp3, penzol AP3, ipol, Escape and penzol WB etc.
Data is as follows
Mechanics preferred brand of transmission oil and gear oil

The results of this question are from question no.5
Sales
Castrol
Total
Servo
Mobil
Veedol
Shell
Mak
After the research and having a word with the mechanics it was found out that the they use same
brand of oil for both gear and transmission, though not the same oil.
Castrol is the market leader in this segment.Following are the figures
Servo stands at second position.
The use of transmission oil is all upto the mechanic. Majority of people do not ask or tell the
mechanic to use only a particular brand. Only few who are well versed with lubes may have their
own desired brand.
Hence the mechanic is the decision maker in selection of transmission oils.
SAMPLE OF 10 SURVEYs FROM TOTAL OF 40
Sample 1
-Shree Ashta Vinayak Motors, mithaghar mulund east, 4wheeler .
-Sidhart Gandhi
-9years exp.
-10years for the garage
-3-4 vehicles
Engine- Total, Mobil, etc
Gears- Castrol, Mobil, Total
Grease- Total Quartz, Shell
6) Which lubricant or engine oil you used earlier. Which one do you prefer
-Mobil is prefered the most from the start. It gives best performance.
7) Are you in any loyalty programme.?
-Loyalty programme of Mobil, Total , Shell.
-Monetary discounts per litre, Gifts like keychains etc.
-Interested in satisfaction of the customer and providing good quality oil.
Mobil gives highest value for money. Not interested in any loyalty
Programme.
-Mobil is the best in terms of quality and we are concerned about quality.
Sample 2
-Samarth krupa auto, 90ft road mulund, 2wheeler garage.
-Mahesh Kumar
-8yrs exp.
-4 yrs garage
- 4-5 vehicles
Engine- Castrol, Mak
Gears- Catrol
Breaks-Vaisan, Catrol
-Catrol is used from the start. Mak is secondary.
-No. Companies do not offer loyalty benefits to small shop owners.
-Just got a board of the garage name with castrol advertisement on it.
-Interested in loyalty programmes.
-Castrol is more used because the customer demands. Just a
profit margin of rs.18 on castrol , Servo has a margin of rs.32. But due
to more sale castrol is more benificial.
Sample 3

-Rahul auto garage, Eastern express high mulund, 2wheeler garage
-Akshay
-22yrs
-15yrs for the garage
-3-4 vehicles
Engine-Mak
Gears-Mak
Breaks-Mak, Dot3, Dot4, AP3
-Mak is used from the beginning
-No not much into loyalty programme.(as the garage is small and so is the
Purchase)
-Discounts from Mak for large purchase, Castrol money cupons.
-Not much interested in loyalty programme. No companies come.
-Mak seems to be the best as it gives discounts. Price is also less. Good in
Quality.
Sample 4
-Parvez auto garage, Mulund link road, 4 wheelers

-Akhlad
-6yrs
-2-3 vehicles
Engine-Mobil, Total & Mobil synthetic
Gears-Turbo
Breaks-KBX, dot3
-Castrol earlier but now mobil is most adviced as due to better
performance.
-No companies come for loyalty programme. The companies who come
waste time by showing schemes.
-No special loyalty benefits even from mobil.
-No
-Mobil is better than castrol as it gives more profits. Good quality.
Sample 5
-Bike point (Bullets speciality), Mulund link road, 2 wheelers.

-Irfan
-10yrs
-5-7vechicles
Engine-Motul
Gears-Motul
Breaks- Castrol white
-Castrol and Motul both used. Bullet- Motul & Spenta.
-Yes. Enroll on prchase.
-1can free on purchase of 5-6 cartons Motul. 1carton free on purchase of
7cartons and half gram goldcoin. Uniforms and movie tickets.
-Happy with the loyalty programme of spenta and motul.company people
come themselves for giving all the benefits.
-Motul is the most adviced as best in quality though high priced.
Sample 6
-C.M. auto garage, mulund link road, 4 wheeler.

-Abdul
-10yrs
-4-5 vehicles
Engine-veedol
Gears-veedol
Breaks-veedol
-Only Veedol is used from the start.
-Yes. Enrol by purchase
-Discounts on large purchase & toolkit.
- Says is interested to go for the party if arranged for mechanics
as done by castrol.
-Veedol gives highest profit margin so best for us.
Sample 7
-Pretisia garage, Thane majiwadi, 4wheeler.

-Chandu (he is temporarily shifted from pretisia garage to one of the
garage in mulund and wants to provide information of pretesia garage)
-5yrs
-8-9 vehicles
Engine-Total quartz
Gears- Total 90w
Breaks-TVS grease, castrol
-Earlier used castrol but now total as total gives better returns.
-Yes on purchase. But not much involved
-Discount and cupons castrol.
-Neutral about having a loyalty programme. Makes no special difference.
-Uses shell as well as servo. Total quartz is more profitable and good in
quality but no loyalty programme.
Sample 8
-Ramji auto garage, mulund east mithaghar, 2 wheelers
-D.halwai
-30yrs
-7yrs
-3-4 vehicles
Engine-Castrol gtx
Gears- Castrol
Breaks-Castrol grease white
-Castrol is used from the start as it is in demand. Keeping much stock
is not possible for a small garage.
-No loyalty programme.
-Nil
-He is not interestedd in any loyalty programme. Has grudges against
the oil companies as they only come to waste time. Bulk buying is not
possible
-Castrol proves to be best in quality. Customers demand for the same so
has to sell castrol.
Sample 9
-Globe scooters, Mulund west near Rmall, 2wheelers.
-Raoji

-35yrs
-5-6vehicles
Engine- Castrol, Servo and Motul
Gears- castrol servo & motul
Breaks-castrol grease mostly used
-Castrol is use most though high in price but good in quality.
-Yes.
-Castrol gives shirts & cupons to redeem money.
-Castrol gives good benifits
-Sale of castrol is good. Quality too. Profit margin per can is less but
more sale and demand compensates over it.
Sample 10
-Nikhil auto garage, 4wheelers
-Manoj
-30yrs
-14 yrs for the garage
-5-6 vehicles
Engine-castrol
Gears-castrol
Breaks-castrol white grease
-Castrol for the start
-Yes
-Movie & food at the party, Gifts on 5000pts.
-Loyalty program is ok but can do even without it. Discounts will
be much more appreciate.
-Castrol is of best quality so used more.
CONCLUSION
The research was carries out through on field genuine survey. Best and experienced mechnics of every
garage were selected for the survey answering. Leaving no stone unturned as much as unbiased information
was gathered from the mechanics based on their personal experiences and prefrences. After pooling up the
data the following conclusions are made:
Servo is of very good quality as per most of the mechanics. But the customers demand for servo is
less. This is due to less advertisements and promotions done by servo. Servo is performing very well
in coolants and sales are high as per the mechanics(servo superkool plus). Servo power 1 and servo
active 4T is the most used product of servo when it comes to two wheeler engine oil. In 4 wheelers
servo syth is most used.
At present Castrol leads the majority of market in terms of all kinds of automotive lubes. The reason
for this is the the demand for castrol by the customers. Besides being of above average in terms of
quality castrol has been able to develop a connect with the customers through their aggressive
advertisement strategy. They have brand ambassadors like sachin and bretlee for promotion. Castrol
has even installed garage board names with their logos which proves to be an excellent advertising
technique.
Veedol stands after castrol in the market. As per the mechanics veedol is of good quality and lower at
price giving more profit than castrol. Veedol gives loyalty benifts too. The advertisements done by
veedol is not so high.
Other lubricants like shell, Mak, Elf etc are also used by many of the mechanic but their brand
effectiveness is still not established much.
Almost all the companies give loyalty programmes to the mechanics like gifts, party, cash cupons,
point based gifts, etc. Most of the mechanics are attracted toward these loyalty benefits but there
were a few who did not keep concerns about such programmes but cash cupons schemes was
welcomed. Point based schemes also does not seem to not work much as the mechanics say they
have no time for such points collection.
The most noticeable part in the entire on field research was that at companies like shell and castrol
had announced loyalty programmes for the mechanics such as insurance, scholarships etc. But none
of the garage owners nor the mechanics were aware of such schemes. (This was reconfirmed twice
by visiting the garages for the second time again). Hence the so said personal connect with the
mechanics is not developed . The mechanics have loyalty towards the oil companies only because of
the quality of oil and other discounts and gifts provided.
Recommendations to servo
SERVO can have more of advertisements and promotions. Televison advertisement of
servo products will be helpful. Hoardings and garage name boards with servo logo. Through
intese advertisements servo can bring about high brand awareness in the minds of the final
consumers so that the demand will be high.
Castrol has mainly tarageted the final consumers and not giving much benifts to the
mechanics.The profit margin from castrol is also less as compared to srevo. Hence servo has
a much greater advantage here. Servo should implement in the minds of the final consumer
that servo is better than any other oil.
Loyalty programme for the mechanics cap ke neche cash is very benificial and servo should
continue with it. Besides such programmes servo should start point based programme where
it will benefit the family of the mechanic, provide insurance, etc .Such schemes are
promissed by other companies but the awareness is none. Hence proper awareness levels
should be devloped for that.
Servo should develop such a scheme where the mechanics will be rewarded on selling a
particular target and not just on purchase of the product. Due to this the mechanics will
recommend the consumers to use servo instead of other oil. This will help to promote servo
to fianal consumers through the specialsts i.e the mechanics.
BIBLIOGRAPHY
EXECUTIVE SUMMARY
www.iocl.com/Aboutus/Business.aspx
INTRODUCTION
www.iocl.com/Products/LubesGreases.aspx
SECTOR INFORMATION
http://www.niir.org/projects/projects/petroleum-petroleum-productsrefining-greases-lube-oil-brake-fluid-automotive-amp-industriallubricants-gear-oils-wax-amp-wax-products-paraffin-wax-polishesbitumen-base-oil-crude-oil-fuel-oils-lubricating-oils-gear-oilskerosene/z,,19,0,64/index.html
COMPANY INFORMATION
http://www.iocl.com/aboutus/profile.aspx
LUBRICANT- ENGINE OIL
http://www.iocl.com/products/engine_oil.aspx
http://en.wikipedia.org/wiki/Motor_oil
BRAKE FLUIDS
http://auto.howstuffworks.com/auto-parts/brakes/brake-parts/types-ofbrake-fluid.htm
TRANSMISSION
http://www.oreillyauto.com/site/app/newsfeed/detail?article=800664296
GREASE
http://en.wikipedia.org/wiki/Grease_(lubricant)
GEARS
http://www.wisegeek.com/what-is-gear-oil.htm
SERVO POPULAR PRODUCTS
www.iocl.com
COMPETITORS-CASTROL
http://en.wikipedia.org/wiki/Castrol_India
http://www.castrol.com/en_in/india.html
VEEDOL
www.tidewaterindia.com
SHELL
www.shell.com

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A

Summer Internship Project Report

To research on loyalty programme and enhance the brand

Akshay Dolrich Dsouza

Mr. Vineet Kaul

Prof. Amarpreet Ghura

Guru Nanak Institute of Management Studies and Research

This is to certify that the project work titled

: Mr. Vineet Kaul

: Sr. Manager Branding

: Indian Oil Corp. Ltd

: Indian Oil Bhavan, Ali Yuvar Jung marg,

I, Akshay Dsouza student of M.M.S. A, Roll no. 14 of Guru Nanak Institute of

interest towards the same.

LIST OF TABLES AND GRAPHS

PIE DIAGRAM- TRANSMISSION OIL

CHAPTER 1- TYPES OF LUBRICANTS

CHAPTER 2- SERVOs POPULAR PRODUCTS

It is high performance engine oil for 4stroke vehicles 2 and 3 wheelers.

SERVO 4T SYNTH 10W30

SERVO Futura synth

SERVO PREMIUM 20W-40-

Lower fuel and engine oil consumption.

For highly supercharged diesel engines and off highway equipments.

SERVO KOOL PLUS

Servokool Plus is a triple action long life radiator coolant.

SERVO KOOL READY

(BREAK OILS BY SERVO)

SERVO BRAKE FLUID DOT 4

SERVO BRAKE FLUID DOT 3 PLUS

Has longer service life, due to excellent oxidation stability

(TRANSMISSION OILS BY SERVO)

SERVO TRANSMISSION C4 SAE 10, C4 SAE30(Multigrade)

CHAPTER 3- MAJOR COMPETITORS OF SERVO

Shell helix, Shell advance and Shell advance ultra.

CHAPTER 4- BRANDING AND PROMOTION

Techniques used by companies to promote

Point based system- gifts on

How to increase SERVOs awareness level.

THE OBJECTIVE OF THE RESEARCH

IMPORTANCE OF THE STUDY

Data collection instruments

Mechanics most used engine oil brand.

Question no.5 asks the engine oils used in the garage.

Considering four major oil companies

Mechanics preferred brand of grease.

Mechanics preferred brand of transmission oil and gear oil

Castrol is the market leader in this segment.Following are the figures

Servo stands at second position.

Hence the mechanic is the decision maker in selection of transmission oils.

SAMPLE OF 10 SURVEYs FROM TOTAL OF 40

Information about the garage and the mechanic

-Parvez auto garage, Mulund link road, 4 wheelers

2) Name of the mechanic.

-C.M. auto garage, mulund link road, 4 wheeler.

2) Name of the mechanic.

3) Experience of the mechanic and the operational years of the garage.

LUBRICANT- ENGINE OIL

SERVO POPULAR PRODUCTS

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Akshay D'Souza

Akshay D'Souza