Master of Business Administration
Faculty / School
Faculty of Business Administration (FBA)
Project Coordinator (Internal)
Dr. Nasir Afghan, Asad Ilyas, Salma Mirza
Committee Member 1
Salma Mirza, Assistant Professor, Institute of Business Administration, Karachi
MBA Research Project
Abstract / Summary
The scope of the project was to conduct an in depth study of the lubricants market and come up with recommendations for PARCO to position its lubricants. For this purpose, we employed two questionnaires for retail customers and end users in the automotive segment and conducted field visits and secondary research to find out the situation in the industrial lubricants market. We evaluated opportunities in the cement, power generation steel, sugar, and military as well as opportunities in the automotive manufacturing sector. We evaluated these opportunities on the basis of potential market size, growth opportunities, competitor positioning and barriers to entry. Our research shows that whether it is the cement sector or the steel or sugar sector, the industry is in a mature phase and the competitors are well entrenched and have erected significant barriers to entry. Power Generation sector however according to our research shows a lot of potential. The power generation sector as a whole is growing at a very fast pace. Our research indicates that the primary energy consumption in Pakistan has grown by 80% over the past fifteen years and the trend is due to continue in the future. Furthermore, the consumption in the residential commercial sector has grown at a rate of 5.3% per annum for the last 15 years at 93.4% and that of industrial sector at 3.9% per annum and at 90.3% over the last 15 years. These numbers point towards an industry that is growing at a very fast speed and thus provides an opportunity to grow with the industry. What makes the power generation sector even more attractive is the fact that competition has not specifically come out with a product that target residential power units. If PARCO was to target this niche in the market it would have the critical first mover’s advantage. Keeping in view the circular debt issues that plagues PSO and the time needed to by Shell Pakistan and Caltex Pakistan to seek approvals for a new product launch we feel that this is the opportune time to launch a lube specifically for the generation sector. It is also important to point out that although the scope of the product was limited to Karachi, Power generation sector show potential for nationwide launch in which regards PARCO’s significant distribution network could be leveraged. On the retail side through our primary research we have been able to isolate factors that drive consumer demands and help shape consumer perceptions regarding the brand. These factors would be critical in deciding the brand message and developing the brand image. Our research shows that in view of the limited number of pumps available to PARCO the ZIC model would be very effective with regards to launching a new brand. The ZIC model involves offering distributors and retailers high margins to push the product and then leveraging higher sales to develop promotional campaigns that generate pull for the product. The ZIC model presents unique opportunities for product differentiation, brand positioning and value enhancement of offers for the consumers.
Feroz, S., Kisat, S. D., Javed, S. A., Hussain, S. H., & Rizavi, S. M. (2011). Marketing strategy for PARCO in lubricants industry (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-mba/193
Available for download on Monday, February 01, 2027
The full text of this document is only accessible to authorized users.