Gulf Oil To Bifurcate Sales Thrust

Gulf Oil India, in a reworked marketing strategy, has decided to classify its sales into two divisions, retail and institutional.

The company is \ at its product in toto and Hansa Research of R K Swamy is to work on the packaging of its lubricants. With the reclassification, Gulf Oil has moved away from the current hierarchy of automotive and industrial sector lubricants.

"The new strategy is expected to reach out to more and more customers,'' says K Das Gupta, managing director, Gulf Oil India Ltd.

The company will now focus on the retail division via distributors.

Explaining the marketing gameplan, Das Gupta pointed out the dealer network will be extended by the appointment of more distributors.

"At present we have 75 stock points. Over a period of time this will be reduced,'' said Dagupta. Gulf Oil plans to broaden its reach by appointing distributors in lieu of stock points.

"By eliminating the stock points and appointing more distributors, the product will reach out to more customers. For instance, in Mumbai we have only one distributor. Here, he cannot reach out to many customers because of the sheer size of the city. So we plan to appoint a few more distributors to cover the entire city,'' Das Gupta added.

Besides, the company is increasing its ties with institutions and plans to supply lubes in bulk to armed forces, artillery, railways, steel plants, subsidiaries of Coal India and the state trading corporations.

"Considering IOC's monopoly with the institutions, we expect a small percentage of business from institutions which will contribute 20 per cent to the company's business,'' Das Gupta stated.

Gulf Oil is also synergising its network in south and has tied up with dealers of Ashok Leyland for the marketing of lubricants.

``We are also talking to Mahindra & Mahindra , Eicher and New Holland to supply lubricants as factory fills and for after-sales".

Meanwhile, the company is planning to increase its lube prices by at least 7.5 per cent (equivalent to the level of rupee devaluation).

The hike in lube prices is expected sometime in January 1998.

It has also entered into a contract with Indian Oil Corporation to supply base oil till March 1998. Gulf Oil imports part of its base oil from the Mediterranean.