CHAPTER I

1.1 INTRODUCTION

This research is about Customer preference towards greases and lubricants of BALMER LAWRIE & CO. LTD as this is the part of marketing segment. A customer preference for a product can make or break a company. If consumers generally like a product, it can stay around for years and sell millions of copies. However, if consumers do not like the product, it could disappear very quickly Marketing is essentially about marshalling the resources of an organization so that they meet the changing needs of customers on whom the organization depends. As a verb, marketing is all about how organization addresses its markets. Marketing is The Management process which identifies anticipates and supplies customer requirements efficiently and profitably. Marketing is a social process by which individual and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others. -Philip Kotler Marketing is the business process by which products are matched with markets and through which transfer of ownership are affected. -Condiff and Still Marketing is the performance of business activities that direct the flow of goods and services from the producer to the consumer or user -Americal Marketing Association

The term preferences are used in a variety of related, but not identical, ways in the scientific literature. This makes it necessary to make explicit the sense in which the term is used in different social sciences. In psychology, the customer preference could be conceived of an individuals attitude towards a set of objects, typically reflected in an explicit decision-making process. Alternatively, one could interpret the term preference to mean evaluative judgment in the sense of liking or disliking an object (e.g., Scherer, 2005) which is the most typical definition employed in psychology. However, it does not mean that a preference is necessarily stable over time. Preference can be notably modified by decision-making processes, such as choices (Brehm, 1956; Sharot, De Martino, & Dolan, 2009), even in an unconscious way (see Coppin, Delplanque, Cayeux, Porcherot, & Sander, 2010). The idea that customers prefer one product or one service over another is not new. The ability to identify and measure the elements of such preference decisions with any accuracy and reliability has only recently become available.

1.2 INDUSTRY PROFILE Introduction: It has estimated that there would be growth of 10-12% in the petrochemicals industry in 2010, mainly on account of growth in packaging and automotive industry. Moreover, demand for PE and PP is forecasted to grow in double digits in 2010. The major petrochemical players in India include Reliance Industries, Gas Authority of India (GAIL), Haldia Petrochemicals and IOC. Currently there are eight naphtha and gas cracker complexes, with a combined ethylene capacity of about 2.5 million tonnes per annum. Of these, one million ton per annum ethylene capacity is gas based (40%) and the rest is naphtha based (60%). Domestic demand of petrochemical products followed global trends and grew at 25% during H1FY10 with growth driven mainly from infrastructure, packaging and recovery in the automobile sector. Polymers demand was higher by 25%, PVC by 36% and PP & PE by 28% and 15% respectively, during the half year ended September 2009. Further PP demand grew from growth in containers, the demand drivers for PVC were pipes and fittings, footwear and PVC sheets. PE demand got a boost from oil containers, electrical wires, cables co-extrusion and carrier bags. Polymer prices also recovered significantly from their 2008 lows on signs in economic upturn. Naphtha, Ethylene and Propylene prices more than doubled to around $ 680 per tonne, $ 750 per tonne and $ 800 per tonne respectively. However, petrochemicals margins did not move up in the same way as prices, due to more than proportionate rise in feedstock prices. The Indian lubricant industry is the seventh largest lubricant market in the world and sixth largest automotive lubricant market. The estimated lubricants market ( for the year 200809 ) in India in terms of sales is 1.75 MMT and in value terms it is Rs.11,375/- crores. The quantity of 1.75 MMT includes lubricants produced by the organized sector; large, midsized as

well small scale companies. This does not include branded base oil, transformer oils as well as sizable amounts of re-refined and spurious lubricants sales produced by un-organised sector. Lubricant industry in India is broadly divided into 3 major markets sectors: Automotive, industrial and marine applications. The ratio of automotive to industrial lubricants is approximately 63:37. Major share of products wise is Auto Engine Oils, Auto Gear Oils, Auto Greases, Turbine Oils, Hydraulic & Circulating oils etc. The major drivers of exports for petrochemicals are Reactive High speed dieses (HSD), Aviation Turbine Fuel, Fuel Oil, Petroleum Coke Calcined and Lubricating Oil. The global lubricant market is about 45 million MT valued at 48 billion USD. With global economy on recovery path, the industrial output is on growth mode. This will lead to higher consumption of lubricants in various. The lubricant consumption in India is about 1.75 million MT. there are about 1200 manufacturers of various grades of lubricants & allied products in organized sector out of which about 1150 are in small & medium sector. The estimated total installed capacity of these units is about 2.2 million MT and capacities are being continuously augmented. The lubricants are mainly classified into automotive, industrial, marine, aviation, greases and other specialties. The allied products are brake fluids, radiator coolants, electrical oils etc. The base oil & additives required to manufactured the lubricants are produced in India as well are imported. Some of the lubricants are being exported. The lubricants produced in India meet all the required international standards and performance levels

1.3 COMPANY PROFILE

CORPORATE JOURNEY Founded by Scotsman, George Stephen Balmer and Alexander Lawrie, in Kolkata, Balmer Lawrie & Co.Ltd started journey as a Partnership Firm on 1st February 1867. Today, Balmer Lawrie is a Mini-Ratna . Public Sector Enterprise, under the Ministry of Petroleum and Natural Gas, with a turnover exceeding Rs.2100crores and the profit in excess of Rs.180 crores. Along with its Five Joint Ventures in India and abroad, it is a much-respected transnational diversified conglomerate with presence in both manufacturing and service sectors. Balmer Lawrie is a market leader in Steel Barrels, Industrial Greases and Speciality Lubricants, Corporate Travel and Logistics Services. It also has significant presence in most other businesses, it operates, viz, Performance Chemicals, Logistics Infrastructure etc. In its 145 years of existence, Balmer Lawrie has been successfully responding to the demand of an ever changing environment, leveraging every change as an opportunity to innovate an emerge a leader in Industry. Balmer Lawrie & Co. Ltd (BLC) is a Multi product and Multi location company engaged in a range of manufacturing, and marketing services businesses. The company is a market leader in Industrial Packaging and is the one of the largest IATA affliated travels in India. BLC to its credentials carries, nearly 50 years of Rich businesses and over the years it has cemented its position in both the manufacturing and service sectors. From Tea to Shipping, Insurance to Banking, Trading to Manufacturing there was a hardly any business, Balmer Lawrie didnt develop into its formative years, growing stronger at every landmark of its remarkable corporate journey. Today Balmer Lawrie has eight Strategic Business Units

 Industrial Packaging, Greases and Lubricants, Performance Chemicals, Tours and Travels, Logistics infrastructure, Logistics services, Tea and Refinery & Oil field services with offices spread across the country and abroad. JOINT VENTURES IN INDIA: Transafe Services Ltd Balmer Lawrie Van Leer Ltd AVI OIL India Pvt. Ltd.

JOINT VENTURES ABROAD: Balmer Lawrie [UAE] LLC PT Balmer Lawrie Indonesia.

MISSION: To gain market leadership in all business segments, make them robust through innovative business processes, selective restructuring, efficient \ effective use of resources and thereby surpass a turnover of 3500 crores and profit before tax of 350 crores by 2015. In this journey, foster a century old tradition of deep rooted commitment to business values, employee pride in the organization and inclusive growth. VISION: To be lead diversified corporate entity having market leadership with global footprints in the chosen business segments, consistently delivering value to all stakeholders, with a high degree of environmental and social responsibility. CARE FOR: Excellence and Quality All manufacturing facilities and Branch office of Service Businesses are QMS complaint (ISO 9000)

Safety and Well Being of our employees and the Environment Major manufacturing facilities are OHSAS (ISO 18000) complaints The Greases & Lubricants and Leather Chemical manufacturing plant are EMS

complaints (ISO 14000) The Society and Long Term sustainability Balmer Lawries CSR initiatives are founded on two Flagship Schemes: Balmer Lawrie Initiative for Self Sustenance [BLISS] Samaj Mein Balmer Lawrie (SAMBAL).

ORIGIN OF GREASES AND LUBRICANT BUSINESS IN BL: In 1934, at Sewree in Mumbai & in1937,in Kolkata, two greases manufacturing units were set up for BALMEROL brand of lubricants. Ever since, people in a company are inspired by the principle and beliefs that stimulated them of their heritage and had a derived strength from the past. Today Balmer Lawrie enjoys the pride of being one of the ten largest grease manufacturer in Asia & the largest grease producer in India. Business Model and Activities of the SBU in Brief : Business Model at Balmer Lawrie (SBU : Greases and Lubricants) broadly categorized into : Processing Business, Direct Sales.

Our product range in the Industrial Packaging Segment consists of : Institutional Sales, Retail Sales, Export

Manufacturing

Product Development & Upgradation

Customization of Suiz Plant Requirement

Technical Services TLM & CBM

Production Units / Work Centers and Facilities available : Ever since SBUs first unit in 1934 in Sewree to manufacture BALMEROL brand of Grease and Lubricants, today with about 2.3% market share, we are spread east-west, north-south and have installed manufacturing units in Kolkata in West Bengal, Taloja & Sewree in Mumbai, Silvassa in Gujarat and Chennai in TamilNadu to produce 72000mt/kl per annum of BALMEROL brand of lubricants. STATE OF ART MANUFACTURING PLANTS The BALMEROL range of Greases, Lubricants and Specialties are products made in ISO 9001: 2000 and ISO 14001 : 2004 certified state-of-the-art manufacturing plants located at : Kolkata Mumbai Taloja Chennai Silvassa WORLD CLASS R&D The companys R&D set-up Applications Research Laboratory at Kolkatta is one of the finest in the country focused on lubrication technologies. State of the-art instruments are used for analysis and testing such as :

Scanning Electron Microscope FZG Tester High Frequency Friction and Wear Tester Atomic Absorption Spectrophotometer Chromatography Equipment EDXRF SRV Tester Partial Size Analyzer Thermal Analyzer Ferrograph

Backed by highly qualified, skilled and dedicated human resources, a significant part of the product portfolio constituting Specialty Products has been developed as a result of untiring and innovative Research & Development work for tailor-made solutions. As a result, Balmer Lawrie has evolved as a total lubrication solution provider for its valued clientele. Wherever warranted, collaborative research ventures are undertaken with leading industries and research organizations. In addition to making available the finest range of greases, oils and speciality lubricants , other credentials of BL include : The only Indian Company to set up lubricating oil and grease plants outside India ; The only Indian Company to export technical know-how for greases and lubricants : Highest outlay on R&D (2.5% approx.) in terms of percentage of turnover in lubricant industry in India. The product range also services a wide Industry / customer segment which include : Iron & Steel Mining Railways Defence Oil & Gas Power Plants Jute & Textiles

Transport Sponge Iron Sugar etc.,

1.4 PRODUCT PROFILE LUBRICANT CLASSIFICATION & SELECTION Lubricants, be it oils or greases, play a very important role in improving reliability of operations of Plant & Equipment. Selection of lubricants is therefore important to ensure : Control of friction & wear Improved life of bearing and machinery parts and longer mean time between failures Improved operational smoothness Optimized cost of lubrication

BALMEROL RANGE OF LUBRICANTS Industrial & Automotive greases Lime Based Grease Lithium Based Grease Sodium Based Grease. Speciality greases Calcium Complex Grease Aluminium Complex Grease Lithium Complex Grease Sulphonate Complex Grease Non-Soap Grease Polyurea Grease Industrial & Automotive Lubricating Oils Engine Oils Circulating & Hydraulic Oils Morgan Bearing Oils Steam Cylinder Oils Machine Toolway Oils Axle Oils Quenching Oils Transmission Oils

Heavy Duty Hydraulic Oils Heat Transfer Oils Compressor Oils Spindle Oils Soluble Cutting Oils Neat Cutting Oils Gear Oils Oil Film Bearing Oils Turbine Oils Machinery Oils Pneumatic Tool Oils Honing / Broaching Oils Rust Preventive Oils Speciality Lubricating Oils Steel & Copper Rolling Oils Cold Rolling Oils Hot Rolling Oils Aluminium Rolling Oils Moulding Oils Coupling Oils Chain Oils Synthetic Gear Oils Biodegradable Gear Oils Ink Oils Fire Resistant Hydraulic Fluids Agricultural Spray Oils .

1.5 NEED FOR THE STUDY:

1. To understand the customer preference towards products of BALMER LAWRIE. 2. It helps to identify the opinion of the people in purchasing products of BALMER LAWRIE. 3. To know the satisfaction level of the customers quality and delivery time.

1.6 OBJECTIVES OF THE STUDY:

Primary objective: To study the customer preference towards products of BALMER LAWRIE.

Secondary objective: To find out the factors which influence the customer preference while purchasing the products of BALMER LAWRIE. To determine potential customers towards BALMEROL To determine the preference level of different BALMEROL range of products.

1.7 SCOPE OF THE STUDY:

The scope of the study extends to the BALMER LAWRIE & CO LTD The study will reveal the customer preference towards various products which will intern help the company to make necessary alteration. The project is focused on the selected marketing department and the data collection is carried out for the period of 30 days. The project highlights the scope for future improvements towards BALMEROL products on the basis of present scale. Which will help the customer to get enhanced service and benefits and also the company will benefit via customer satisfaction.

1.8 LIMITATIONS OF THE STUDY:

Every study consists of limitation they are as follows

It is difficult to make respondents understand about the importance of the research. Customers showed reluctance while answering to the questionnaire.