doms iitr lubol
TRANSCRIPT
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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