Sky Is The Limit

The Indian lubricant industry is currently at a dynamic stage and the future will witness the survival of the players who have  the right  product mix, right market strategies and the  right  rela tionship with the employees and the customers.

Pennzoil  India  Ltd has embarked upon an  ambitious  mission  of becoming the second largest quality lubricant specialist in India over the period of next few years by acquiring a market share  of about 8-9 per cent. In the long run the company aims at being the no.1 player in the market.

To achieve this feat, the company carried out an in-depth  review of  its operations and realised that a major  reorganisation  and new business prospect was imperative.

During the course of lthe assessment it was found that there  was an  excess of manpower, which was adversely affecting the  compa nys  financial  position.  For the company  to  be  economically viable,  reduction  in the manpower was essential.  Although  the contribution  of  each and every employee is highly  valued,  the company was compelled to reduce the employee strength from 250 to 180.

Next the company focussed on the technological advancement of its plant  facilities  at Trubhe. This was possible  by  infusion  of additional  Rs 16 crores by the parent company. From  this  fresh capital, the company progressively invested approximately Rs  4.5 crore  in  upgrading  its laboratory  equipment,  production  and storage facilities, and augmenting product lines, thereby  ensuring  that the final packaged product out of the plant adheres  to the world class Pennzoil quality.

Cost  cutting  drives introduced by the company at  every  level, which has reduced the overheads, general and administrative costs by about 40 per cent. The money therefore saved has been diverted into promotional activities.

In an industry marked with heavy competition and low  involvement in  the product by the consumers, the longevity of a player  will be  determined by the investment made in the brand  building  and image.  After a comprehensive stj4

rategic review of  the  marketing activities  the company has reorganised the business along  brand lines.

This new brand management approach will allow Pennzoil  to take  full advantage of its powerful brand name, and  will  focus into the markets where the Pennzoil brand can caputre a  meaning ful market share.

Compared to the previous years, the company  has  significantly increased its investment in brand building for the year 1997.  It has spend Rs one per litre more than its competitors in advertis ing.  These measures will further strengthen the  Pennzoil  brand which  signifies  quality  and leadership  that  understands  and cares.