Market for SERVO by Indian Oil

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SimAsh

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Hey BITOG members, I am new to the forum. I have few questions and perhaps some veteran members can advice me or point me in right direction. Would you consider investing in lubricant OIL products/brand that current market has no knowledge about. I am considering investing in bringing SERVO lubricans by Indian OIL in US. Do you believe there is a market for this brand in US? What are the chances that it will succeed? What would you do to be competitive with other leading brands or to at-least gain some market presence? I understand that marketing strategy should be the first step but what if you did not have any help from marketing and you are a small investor. Do you have chance to survive and compete at smaller level? The price for SERVO OIL, per quart for consumers will be very close to Mobile1, Valvoline, Castrol and other leading brands. What kind of uphill battle do I face? I am sure that this is very competitive market, since there are already many other leading brands that has made there name here/US. If this was you, what are some of the key things you would research before pursuing this any further?

Very Respectfully,

SimAsh
 
Your biggest problem is entering a market that is already saturated with brands. The only way I knew about SERVO is from commercials while watching cricket. Does the product have any certifications that mean anything in the US? Ex-Pats might recognize the brand name, but other than that i would say 99.999% of Americans have never heard of it.
 
As a small investor without a budget to market and promote the oil, with the oil selling at the same price as known brands, I'd say that your chances of breaking into the retail oil market are zero.
Look at the recent marketing failures of heavily promoted brands, like Nextgen and G-Oil and consider that you'll be selling an unknown oil with no budget to promote it, and Valvoline even started out with a loyal customer base for its other retail motor oils.
You might be better served by looking into the bulk market, but this is a market where price rules.
Does Servo have or will they spend money to obtain API and other recognized certs?
 
So this is oil made on an Indian reservation? Stick to gambling casinos.
smile.gif
 
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Unless you can offer this new oil at a significantly lower price than anything else, there is no chance in he** this will succeed in the US. The consumers are taking a gamble by purchasing an unknown (to them) brand/product with unknown track record.

Selling oil to consumers is mainly a marketing game. If you don't have a big marketing budget, forget it.

Unless somehow you can strike a cord with the large Indian/Desi population here and have them use word of mouth (like they often do) to spread the info. But how many of them actually do their own oil changes? Is that market big enough to support a successful business?

This would have to be primarily internet/mailorder business only. There is no way you'll get shelf space allotment at any of the major retailers unless you can show them that you have huge marketing budget to advertise like the big guys.
 
bdcardinal, thanks for the response. I don't belive they have any certifications yet. Thanks again!
 
Thank you all for sharing your inputs and knowledge. I was not aware of API and other certifications, so as you can tell I am still at beginner stage in this industry but when I had the investment opportunity I wanted to look into and I really appreciate all of you for sharing your honest opinion.

To fdcg27 - yes, I agree and that marketing can make it or break it for you, and this is what I am trying to point out to the SERVO distributors. They told me they have marketing plan but have not provided me any specifics yet, so unitl I know how they will be doing this I will not pursue any further. Again I appreciate your response and input.

To Quattro Pete, no this will not be at lower cost than other leading brands, so offering at lower cost will not be optioi and only small community (desi) will not be enough market share.

Thanks again for your feedbacks.

Thanks,

SimAsh
 
I looked at what they have to offer. There is really nothing in the lineup which is suitable for the North American market. There is one 5W-20 and it is SL rated and the only 5w30 is SC rated.

Ed
 
This oil won't make it in the retail market. Look at g-oil for example. The stuff is an ester,is an excellent product and is environmentally friendly and even cheaper than the majors yet they are circling the toilet bowl now just waiting to be clubbed to death.
If you want to throw away your money then a lubricant company is he right place to do it.
The niche markets are already filled and the entire market is saturated so unless you give it away for free and have some form of guarantee then I'm confident you'll get a better return lighting cigars with 100 dollar bills.
 
edhackett - Thanks for the link and sharing your thoughts.

Thanks, edhackett, Clevy - no I don't have money just to throw it away. THis is hard earn money and that is why I am doing some research.

edyvw, thank you too sharing your knowledge.
 
Originally Posted By: Quattro Pete
Unless somehow you can strike a cord with the large Indian/Desi population here and have them use word of mouth (like they often do) to spread the info. But how many of them actually do their own oil changes? Is that market big enough to support a successful business?

I think that's a very important point. You could capitalize on market recognition among a segment of the population. However, that's only if that segment has enough people doing their own oil changes and who would support the product.

Unfortunately, in the States particularly, pricing is competitive enough that it makes things very difficult. Heck, if Canadians could order oil from Walmart USA with free shipping and no duty, or retail oil market would probably go down the toilet in about five minutes. I could hardly imagine trying to compete directly down there.
 
Originally Posted By: edhackett
I looked at what they have to offer. There is really nothing in the lineup which is suitable for the North American market. There is one 5W-20 and it is SL rated and the only 5w30 is SC rated.

Ed


Thank you what does SC stands for?
 
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