INTRODUCTION

The marine sector represents a crucial domain for the utilisation of engine
oil, presenting considerable potential for market growth. However, within
this domain, Hindustan Petroleum is currently facing a lag in market share
when compared to its competitors. In response to this pressing issue, I
conducted extensive research on a major fishing harbour to gain a
comprehensive understanding of the contributing factors to this trend.
Drawing upon the results of my research, I have formulated a series of
actionable recommendations aimed at improving the company's market
position. The key drivers underlying the observed disparity in market
share include varying consumer perceptions of Hindustan Petroleum's
products, differences in product pricing, and inadequate marketing
strategies. Addressing these drivers necessitates a multi-faceted
approach, which involves enhancing the quality and reputation of the
company's products, conducting a comprehensive analysis of the
prevailing pricing strategies, and revamping the marketing efforts to align
with the targeted consumer segments.
Furthermore, implementing the recommended strategies would also
require a concerted effort on the part of Hindustan Petroleum to cultivate
stronger partnerships with key stakeholders, engage in proactive outreach
initiatives, and invest in technological advancements. Overall, the
implementation of these recommendations holds immense potential for
Hindustan Petroleum to bolster its market position within the marine
sector and realise sustained growth and profitability.
BUSINESS MODEL OF LOCAL FISHING SECTOR

THARAKANS

In the local fishing industry, Traders, commonly known as Tharakans, are

a prominent and powerful entity in the supply chain. Their dominance is
attributed to their strategic business model, which provides them with a
competitive advantage over their rivals. Tharakans extend interest-free
advances to boat owners in exchange for exclusive rights to purchase the
entire catch upon the boat's return from fishing. This arrangement not
only secures a stable income source for the boat owners but also enables
Tharakans to maintain a steady supply of fish for their customers.

Furthermore, Tharakans' provision of financial support to boat owners

when they run out of cash to finance their fishing expeditions is driven by
their desire to secure a continuous supply of fish for their business. In
addition, Tharakans have strategically acquired ownership of several fuel
filling stations around the harbour, which enables them to have greater
control over the supply chain and streamline their operations. Thus, it is
evident that Tharakans' dominance in the local fishing industry is the
result of their astute business strategies rather than any benevolent
motives towards boat owners. Nonetheless, their presence in the industry
is crucial for the smooth and efficient operation of the local fishing
business.

SEASONS
June 15 - Oct 10th Main Season
Oct 11th - April 14th Off Season
April 15th - May 25th Trawl Ban
May 26th - June 14th Trawl Ban, Boat Maintainence annd Repair Works

It is recommended to initiate the implementation of the above mentioned

marketing strategies during the first week of May. This is because towards
the end of May, boat owners and mechanics typically commence the
servicing of their boats in preparation for the primary season. By
establishing a strong brand awareness during this period, it would prove
advantageous for the forthcoming season.*The data presented above was
gathered through a series of interviews with boat owners, boat
mechanics, and retailers. It is essential to note that slight discrepancies
may exist in the numerical figures provided.

Costs in Boat Fishing Expeditions

The cost of a round trip for a boat can range from 1.5 lakhs to 2.5 lakhs,
depending on various factors such as the number of crew members, the
size of the boat, and other relevant expenses. Even if the boat fails to
obtain a good catch, the boat owner will incur a loss of the entire amount
invested in the trip.
It is common practice for boat owners to seek financial assistance from
Tharakans for such expeditions, which inevitably renders the boat owner
dependent on the Tharakan for funding.

THOPPUMPADY HARBOUR AND MUNAMBAM HARBOUR

Munambam Harbour and Thoppumpady Harbour, two of the most

prominent and critical economic centers in Kochi, serve as vital hubs for
the vast majority of fishing-related commerce in the region. With an
unwavering focus on data-driven research and analysis, this report is
based on the extensive information gathered from these two harbours,
providing a comprehensive and in-depth analysis of the underlying factors
driving the persistently low market share of HP lubricants.

Through a meticulous examination of the research findings, there is

compelling evidence to suggest that the same challenges and obstacles
may be present in other harbours and fishing communities throughout
Kerala. As such, this report offers a powerful framework for addressing
these issues in a systematic and effective manner

(THOPPUMPADY HARBOUR ) (MUNAMBAM HARBOUR)

Total Market Size of Munambam Harbour (4 Stroke Diesel Engine

Oil) :

Total Market Size of Thoppumpady Harbour (4 Stroke Diesel

Engine Oil) :

Gillnet, trawl net and purse seine net are three different types of boats
with 4 stroke engines found in Thoppumpady harbour. The calculation
provided below is the calculation of the amount of engine oil required
annually for each type of boats.
 No. of oil
No. of Oil for a Refill oil a
Type Change a TOTAL
Boats Change year
year
Gillnet 100 5 40 15 20015
Trawlnet 50 6 40 15 12015
Trawlnet
50 6 20 10 6010
Small
Purse Seine
100 5 40 15 20015
Net
TOTAL 58055

*Please note that this does not apply to 2-stroke engines. However, if the
sales of our 4-stroke engine oil increase, we can also capture a share of
the 2-stroke engine oil market.

PROBLEMS

- The complex network of boat owners, traders, and fuel stations in the
area surrounding the harbor has created a unique economic dynamic. The
tharakans, who often act as financiers for boat trips, have significant
leverage in directing boat owners to specific fuel stations. These fuel
stations are frequently owned by the tharakans themselves, providing
them with an additional revenue stream beyond their role as financiers.

The close relationship between boat owners and tharakans means that
when instructed to fill up at a specific fuel station, many boat owners also
purchase engine oil from the same location. This results in a high volume
of engine oil sales occurring through this channel, often at the expense of
retail shops selling engine oil in the area.

Furthermore, the scarcity of HP fuel station is another reason for the low
market share of HP engine oil. This dependence further strengthens the
tharakan's position in the local economy, allowing them to exert more
control over the flow of money and resources in the area.

Overall, the complex interplay between boat owners, traders, and fuel
stations in the harbor area has resulted in a unique economic ecosystem
that benefits some parties more than others. While the tharakans have
found a way to capitalize on their position as financiers, many retail shops
selling engine oil have struggled to compete with the dominance of the
tharakan-owned fuel stations.

- Ashok Leyland has historically recommended Gulf oil for their engines,
and even after introducing new Chinese engines, such as Sinotrek and
Wei Chai, they have continued to endorse Gulf oil. As a result, Gulf has
become a familiar and trusted brand among consumers, making it
challenging for other lubricant brands to establish a foothold in the
market.

- There is a lack of awareness about HP Engine oil among boat owners and
mechanics, which has made it difficult to find in retail shops. This is
because retail shops typically stock products that are in demand.

- Boat owners who want to purchase HP oil must go to an HP Pump to buy

it and then bring it to the mechanic, which requires extra effort

- Finding 20L bottles of oil can be difficult at times, as 5L bottles are more
commonly available. However, for use in a boat, 20L bottles are more
convenient.

OPPORTUNITY

Previously, Gulf CH4 engine oil dominated the market, but there has been
a gradual shift towards TOTAL's CI-4 plus engine oil. This presents a
valuable opportunity to promote our own CI-4 plus engine oil and
capitalise on the changing market trend.

MARKETING MIX

PRODUCT

CH-4
HP MILCY TURBO 15W-40 - CH4
HP MILCY TURBOSTAR 15W-40 - CH4
CI-4+
HP Lubricants Milcy Turbotech 15W-40 - CI4+
HP Marina 15W-40 - CI4+

It is recommended to prioritise the utilisation of HP Marina 15W-40 - CI4+

for boats, as it presents a unique and exclusive product offering.
Implementation of this strategy is not expected to significantly impact the
market share of HP Milcy Turbotech 15W-40 - CI4+ given its limited
market penetration. In addition, to cater to boat owners with varying
budgetary considerations, CH-4 marketing should also be pursued
alongside CI-4+.

PRICE

Details to be collected

PROMOTION

- Display hoardings and flex banners near retail shops featuring purchase
incentives and product compatibility with Wei Chai and Sinnotrek Engines.

- We should create a price comparison sheet for mechanics, comparing

the cost of CI-4 plus engine oil from HP, Gulf, Total, and Shell across
various bottle sizes, including 5L, 20L, 26L, 50L, and 210 Barrel.
Additionally, we should conduct one-on-one awareness sessions with
mechanics to highlight the benefits of using our product, as mechanics
have significant influence on the choice of engine oil used.

- We can provide complimentary gifts to mechanics, such as cash

coupons, goodies like t-shirts with our logo, scratch and win coupons, and
calendars featuring our logo.

- We can organise a function for the Boat Owners Association to explain

the benefits of our products, as Gulf and Total already do. This will help to
raise awareness among boat owners.

- Ask our distributors to implement a credit system for marine mechanics

and retailers.- Reminder through Whatsaap Messages for mechanics,
explaining benefits.

- Owners Whatsaap Group is there, marketing can be don’t through that

channel

PLACE

- All the major Retailers in and around Thoppumpady Harbour