The target: to have a 25 per cent marketshare by the end of the Ninth Plan, up from the current 20.4 per cent. According to Arun Balakrishnan, general manager (lubes & international marketing), ``The corporation is well aware of the challenge and is developing an action plan to reposition and strengthen its lube business.''

Consider: Distribution & Marketing: Hitherto, HPCL sold its lubes mainly through its petrol pumps and a common distributor networkwhich catered to all its products. With a strong retail outlet presence of more than 4,000 petrol pumps, HPCL had ignored the emergence of the bazaar trade -- much to Castrol's advantage. Now HPCL has worked out an aggressive plan attacking both the bazaar and pumps.

Says Balakrishnan: ``The new market is in the bazaar trade.'' Adds K Muralidharan, deputy general manager (lubes and specialities): ``The growth of the retail trade is expected to be about four per cent but the shift within this segment to the bazaar trade should be from two-third to almost 50 per cent.''

While the move to add on new dedicated distributors is an obvious strategy to increase reach, these distributors will also be asked to maintain relationships with smaller dealers who aren't serviced by HPCL directly. The HPCL distributors will also have to manage the dealer economics of their set of relationships. This, Muralidharan expects, should improve the depth of HPCL's market without putting in place too many layers of directdistribution.

HPCL is also working on identifying certain programmes and influencers who take the ``buy'' decision by recommending a particular brand. Such groups are to be approached with a direct marketing scheme.

By segmenting its market more finely, HP realised the need to have an equally specialised sales force. The new salesforce, to be on the field by April 1999, will have 50 per cent new recruits who have been getting special lubes training for the past one year. The remaining force will be culled out from HPCL's existing sales team which already has fairly well established relationships in the market. The near future will also see special products launched for specific sectors. For example, the recent launch of Racer-4, the first four-stroke engine oil which was promoted in a big way. Also in the pipeline is a relaunch of improved products and strengthening existing brands.

Brand Promotion: It is the brand building exercise which most fascinates the officials at HP. For the first time HPCL hasgone in for the creation of a mnemonic called the `Oil Man'. Says Balakrishnan, ``Research showed that it is mostly the mechanic who recommends a lube oil to a customer. It is the mechanic who is the heart and soul of the business.'' So, instead of approaching the mechanics directly, HP has created a mnemonic mechanic.The advertising budget will not only be spent on promoting the Oil Man but also using him to introduce new products in the market. HPCL's research centre develops more than eight products every year which are traditionally launched quietly in the trade. Now, if the product has potential to garner a substantial customer base, HPCL will use audiovisual advertising to support the launch.

New Initiatives: While R&D has been the mainstay of HPCL's lubes business for long, it is now to be converted into a crucial marketing issue. While the officials did not divulge details, market sources say that HPCL has a strategy in place for specific consumer segments in the heavy industry and has developedcustomised products for them.

Again the focus is in terms of distribution and service channels is being broadened and no longer will HPCL concentrate on bulk trade alone. For example, promotional work is being undertaken at petrol pumps to improve volume output. A fuel-to-lubes ratio is also being monitored at each of these pumps to identify HPCL's grey areas of marketing in each pump. Clearly, with HPCL lubricating the rusty bits of its operations, the next three months should see it move like greased lightening.