Charting a new
DISHA for the Indian Lubricants industry
Foreword by
Chairman
At the outset, I would like to extend my heartiest congratulations to the team at IOCL Lubricants for establishing and continuously aiming to strengthen its No. 1 position in a competitive, fast growing lubricants market in India. In this context, IOCL’s decision to holistically redefine its Route-to-Market strategy to align with the evolving dynamics of the industry and thereby, further strengthening its market leadership is a step forward in the right direction and certainly merits applaud. At BCG, we have unparalleled global expertise and thought leadership in the lubricants industry as well as in large scale Route-to-Market transformation. BCG is committed to the success of IOCL, and I will ensure that our foremost global experts are available to help IOCL achieve its ambitions. Yours sincerely, Hans-Paul Buerkner Chairman, BCG Worldwide
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We are the right partner for your success
WE HAVE UNPARALLELED GLOBAL EXPERTISE AND THOUGHT LEADERSHIP IN THE LUBRICANTS INDUSTRY
WE HAVE STATE-OF-THE-ART TOOLS, RESOURCES AND BATTLE-TESTED FRAMEWORKS
We have done 50+ case assignments in lubricants in the last 5 years and can provide insights into global best practices of key industry peers.
We will leverage our extensive set of proprietary tools and frameworks such as profit pools framework, acquisition target screening assessment, GeoAnalytics, etc., and our deep functional and industry expertise to work with you in an accelerated fashion.
“Put simply, BCG is a world leader in Route-to-Market transformation.” - Vaishali Rastogi
RECOGNIZED AS THE LEADERS IN GO-TO-MARKET AND CHANGE MANAGEMENT STRATEGY
WE HAVE A COLLABORATIVE WORKING STYLE TO ENSURE THE OUTPUT WILL BE EMBEDDED IN YOUR ORGANIZATION
We have done 50+ case assignments in lubricants in the last 5 years and can provide insights into global best practices of key industry peers.
Our focus will be on ownership and enablement of the IOCL team during the course of the project. A world-class senior team comprise of a pool of dedicated and experienced experts is committed and ready to support you.
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Our Core Team
....about supporting you in achieving your Ambition
for IOCL is passionate.... Vaishali Rastogi
Paul Duerloo
Senior Partner and Director BCG Head – South East Asia
Partner and Managing Director Global Topic Leader – Oil and Gas Retail
Lead Partner
Lead Partner
Abheek Singhi Senior Partner and Managing Director APAC Head – Consumer and Retail Practice
Giuseppe Falco Senior Partner and Managing Director BCG CEO – Italy, Greece, Turkey Global Topic Leader – Oil and Gas Downstream
1. Strengthen Market Leadership
Lead Partner Alan Thomson Senior Partner and Managing Director Global Leader – Energy Practice
Rahool Panandiker Partner and Director India Topic Leader – Oil and Gas Downstream
Amitabh Mall
Partner and Director Global Topic Leader – GTM in Rapidly Developing Economies
Kunal Rana
Principal Core member - Consumer Goods and Retail
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Kaustav Mukherjee Senior Partner and Managing Director Head – BCG India Energy Practice
2. Step jump in profitability 3. Enhance the share of synthetics in overall portfolio
Vikram Bhalla
Senior Partner and Managing Director Global Topic Leader - People and Organization
Anirban Mukherjee
India Topic Expert – Oil and Gas
Brij Vashisth
4. Position SERVO as a complete lubrication solution provider and a brand of choice across customer segments
5. Pioneer innovation and technological advancement across the lubricants value chain
Project Leader India Topic Expert – Oil and Gas
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IOCL needs to overcome an imminent threat:
Arrest further decline in market share arising with increased competition from new challengers Indian Lubricant market share
Incumbents losing market share... “With increased competition and new players entering the play, the risk for further market share loss is again real.�
2010
2016
35%
30%
20%
15%
18%
12%
12%
12%
15%
31%
- Kaustav Mukherjee
....to new challengers
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Others
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6 megatrends likely to impact lubricants space
Concentrated Industrial Hubs emerging
Demographic shifts
6.
~3X growth in middle class population
1. Maturing transport landscape
Industrialization
Consumer Trends
5. Mega Trends in India
Urbanization 600 geographically disparate urban centers to drive demand by 2021
85% of commercial vehicle demand still with small fleets
Urbanization
Transportation
2.
4.
Evolving Rural
Digital Trends
3. Evolving rural customers
Internet penetration 3X growth in internet penetration
“Evolving consumer preferences and purchase drivers present a very real opportunity for IOCL to become the brand of choice across customer segments through customized targeted strategies.� – Abheek Singhi
2.6X growth in connected rural customers by 2020
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Our framework for a holistic redesign of IOCL’s RTM strategy
IOCL Lubes 'Route-To-Market' Strategy
Market strategy
1. 2.
Industry canvas & positioning
Market segmentation & geographic presence
Value proposition
Go-to-market
3. Product portfolio
6.
CRM
4. Pricing
7.
Channel management
5. Brand promotion
8.
Sales promotion
9.
Cost of sales
10. Sales & service excellence Order &
11. inventory
management
“Many functional elements need to come together to make the IOCL journey successful: BCG will bring its depth of functional expertise and experience from across the world.” – Rahool Pai Panandiker
Enablers
12. HR transformation
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& 13. Rewards recognition
Technology
Resource
14. transformation 15. utilization
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BCG Approach: Mobilize organization for implementation, while designing the strategy and roadmap
Baselining and diagnostic
Issue identification
Benchmarking
Pilot rollout
Initiative Designing
Pilot Implementation
PMO Design
Roadmap design
Quick win rollout
Nationwide rollout
Capability Development
Implementation
Project Management
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We have an arsenal of tools, experts, and capabilities to support every element in IOCL’s scope of work
We bring a comprehensive understanding of consumers and proven expertise in digital, analytics, and technology
CCCI Center for Customer & Consumer Insight
Gamma Advanced Analytics solutions for clients facing high-impact business issues
Dedicated research center in India covering macro economic/consumer trends
Digital Ventures Experienced technical resource of solution architects and developers
Proprietary Data & Tools Supports Advanced Analytics GTM (175 proprietary data/tools)
“We have developed fieldproven frameworks and superior tools working with lubricant manufacturers and FMCG retailers throughout the world. “ – Paul Duerloo
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Technology Advantage TA tools & benchmarks and Advanced Analytics tools & platforms
Advanced Analytics 200 deeply skilled analytics professionals team of data scientists for complex/big data analytics
Platinion Implementation of complex application systems and architecture components
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We will set up and institutionalize real tools at IOCL....
y
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Create Awareness Building awareness and understanding to ensure seamless alignment
En
Sponsorship, Governance & PMO
IOCL campaigns
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IOCL Sales Officer Learning App
er s Lead led
Executional
n it i a
Coverage: Covers all the internal cohorts as well as external partners
ab
IOCL Distributor Mgmt App
Ce rt
IOCL Project Mgmt App
....such as an “IOCL Sales & Marketing Academy”
IOCL graphic novel
IOCL Sales & Marketing Academy
Objective: Enhancing retail business effectiveness via sustained capability building Approach: High impact, practical interventions, combined with on-the-job learning
Build 2 Capabilities Building skill sets & techniques critical to retail business transformation
Sales & Marketing Academy
Embed Culture Adapting behaviors to drive culture for change
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Fortify Enablers Driving high performance to deliver sustainable results
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Only 30% of change programs SUCCEED!....
....while BCG has 100% SUCCESS in change management programs
The Change Delta Governance and PMO
Enabled leaders
• Clear program structure, vision, superior platform, objectives, mandates, fact base and roll-out timing ce rt ai nt y
al ec ut io n Ex
Governance and PMO
• Alignment of leaders is palpable, visible and maintained—”One voice”
s er ad le
• Value-added PMO provides essential support structure to the organization
• Leaders able to effectively sponsor and manage the change
ed bl
• Key teams led by ambitious, talented, and capable leaders
• Leaders deeply accountable for success
a En
• Clear governance structure with explicit roles, processes and decision rights
• C-Suite leading from the top
Engaged organization “The emphasis is on the practical: the Change Delta approach helps sharpen the focus on the change activities that matter most and gives business leaders the tools they need to ensure success.” – Vikram Bhalla
Executional certainty • Transparency across milestones and outcomes
• Employees at every level understand the change and are equipped to manage it
• Rigorous methodologies and tools, testing of initiatives
• Critical stakeholders are deeply engaged
• Forward-looking view on emerging issues
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Engaged organization
• Essential behaviors are reinforced
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We have successfully delivered similar assignments in the lubricant industry across the globe
Russia
Finland United Kingdom
Spain
U.S
China
Italy UAE
Mexico
Japan
India
Brazil
“We have done 50+ case assignments in lubricants in the last 5 years.” – Giuseppe Falco
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We have worked with leading oil and gas and downstream companies....e
....and are regarded as a thought leader in FMCG globally and in Indiap
We work with 10 of the 15 largest Oil companies around the globe....
Thought leadership through publications on cutting-edge topics
Close participation in industry-wide topics and policy making
...and with 11 of the top 15 Oil Downstream companies in the world
We have worked with 19 of the top 25 consumer product companies in the world over the past five years
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Why BCG?
We have unparalleled global expertise and thought leadership in the lubricants industry with 50+ case assignments in the last 5 years
01 02 03
Currently, we are managing change initiatives worth over $30 billion
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We have a collaborative working style to ensure the output is embedded in your organization
Our global leadership team is deeply committed to IOCL
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We are committed
to your success BCG Leadership Hans-Paul Buerkner Chairman, BCG
Executing team Abheek Singhi Lead Partner APAC Head - Consumer & Retail Practice
Alan Thomson Global Leader – Energy Practice
Neeraj Aggarwal CEO, BCG India
Kaustav Mukherjee
Head - Energy Practice in India
Vaishali Rastogi Lead Partner BCG Head, South East Asia Turkey Global Topic Leader – Oil and Gas Downstream
Paul Duerloo Lead Partner
Global Topic Leader – Oil and Gas Retail
Executing team
Topic Experts Arindam Bhattacharya
Anirban Mukherjee India Topic Expert – Oil and Gas
Core member – Industrial Goods and Operations
Ravi Srivastava Kunal Rana Core member - Consumer Goods and Retail
Brij Vashisth
India topic expert - Oil & Gas
APAC Head - Operations
Giuseppe Falco Global topic leader - Oil & Gas Downstream
Dr. Rahool Pai Panandiker
Vikram Bhalla
India topic leader - Oil & Gas Downstream
Global topic leader – People and Organization
Amitabh Mall
Global Topic Leader – GTM in Rapidly Developing Economies
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Conclusion
I am deeply excited by this opportunity to work with IOCL, India’s flagship National Oil Company, on its Route-to-Market strategy for its lubricants business. BCG closely understands the project context and its criticality in IOCL’s overall business context. I am confident that you will find this understanding invaluable for the success of the project. We have worked on similar large and critical projects in the past. We will have our partners and senior advisors who understand the challenges of such projects by your side. We have an arsenal of tools and resources to support every element in IOCL’s scope of work. At BCG, we give extreme importance to building capabilities and leaders. Our focus will be on ownership and enablement of the IOCL team as we set out together to achieve the targets of this mega project. Yours sincerely, Alan Thomson BCG Global Leader – Energy Practice
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