Gulf Oil ups ad costs to double market share
With its marketing investments in the previous Indian Premier League season showing good results, Gulf Oil Corp, a Hinduja Group company, is now looking at significantly ramping up of advertising & promotion spends this financial year.business Updated: May 02, 2012 22:51 IST
With its marketing investments in the previous Indian Premier League season showing good results, Gulf Oil Corp, a Hinduja Group company, is now looking at significantly ramping up of advertising & promotion spends this financial year. The lubricant-maker will spend 15% of its turnover towards marketing, well above the earlier 2% (about Rs 35 crore).
The ramp up is to double its market share in the lubricants category over the next three years, the company said. It has roped in MS Dhoni as the brand ambassador who was earlier endorsing Bharat Petroleum’s Mak brand of lubricants.
Gulf Oil’s overall market share in the Indian lubricants market is about 6.5%. “Our aim is to be among the top three players in the market in the next three years,” said Sanjay Hinduja, chairman, Gulf Oil International.
Gulf Oil Corporation delivered Rs 1,102 crore revenue for the year ended March 2011. The lubricants division contributed sales of Rs 679 crore as against Rs 563 crore, an increase of 21% over previous year and segment margins nearly doubled. The lubricant industry growth in overall volumes for the period was at 3-4%.
“We were looking to strengthen our presence in the northern region three years ago, when we decided to associate with Kings XI Punjab to reach out to a wider audience. The partnership not only improved our visibility but also helped create a strong brand value for Gulf,” said Ravi Chawla, president and CEO, Gulf Oil Corp.