A study on factors influencing the sales MS and HSD in Hindustan Petroleum Corporation Limited A Project report submitted to Institute of Public Enterprise, Hyderabad in partial A Project report submitted to Institute of Public Enterprise, Hyderabad in partial fulfillment fulfillment Of the requirement for the award of the Degree of Of the requirement for the award of the Degree of POST GRADUATE DIPLOMA IN MANAGEMENT POST GRADUATE DIPLOMA IN MANAGEMENT Submitted by: BHANU PRAKASH REDDY E INSTITUTE OF PUBLIC ENTERPRISE INSTITUTE OF PUBLIC ENTERPRISE OSMANIA UNIVERSITY CAMPUS OSMANIA UNIVERSITY CAMPUS HYDERABAD – 500 007 HYDERABAD – 500 007
Transcript
A study on factors influencing the sales MS and HSD in
Hindustan Petroleum Corporation Limited
A Project report submitted to Institute of Public Enterprise, Hyderabad in partial fulfillmentA Project report submitted to Institute of Public Enterprise, Hyderabad in partial fulfillment
Of the requirement for the award of the Degree ofOf the requirement for the award of the Degree of
POST GRADUATE DIPLOMA IN MANAGEMENT POST GRADUATE DIPLOMA IN MANAGEMENT
Submitted by:
BHANU PRAKASH REDDY E
INSTITUTE OF PUBLIC ENTERPRISEINSTITUTE OF PUBLIC ENTERPRISE
OSMANIA UNIVERSITY CAMPUSOSMANIA UNIVERSITY CAMPUS
HYDERABAD – 500 007HYDERABAD – 500 007
2010– 20122010– 2012
ACKNOWLEDGEMENTS
I would like to heartily thank Hindustan Petroleum Corporation Ltd. for giving me this
opportunity to display my skills and learn extensively about the corporate world. It was an
extremely rewarding experience for me both in terms of skills acquired and work attitudes
imbibed in my first exposure to the corporate world.
With deep gratitude and humble heart, I would like to thank Mr Yatendra pal Singh Sales
Officer of Hindustan Petroleum Corporation Ltd. Hyderabad for providing me this
opportunity and in giving basic shape to this project.
Furthermore, I would like to thank all the dealers and employees of the company, who helped me
by providing their support, cooperation and guidance throughout this project.
I express my sincere thanks to Dr.R.K.Mishra Director, I.P.E, Hyderabad for their invaluable
suggestions.
I thank K.Trivikram, PGDM Co-ordinator, I.P.E for the support provided during the course of
the project.
I express my deep sense of gratitude to Dr. Sai sailaja ,faculty of economics and Dr .Mehar
Karuna ,faculty of Marketing for their continuous support and guidance, without his help this
project would not have materialized.
I am extremely thankful for all those people who have helped me in completion of this project
Bhanu Prakash Reddy E
DECLARATION
I hereby declare that this project report titled “A Study on Factors Influencing the sales of MS
and HSD in Hindustan Petroleum Corporation Ltd” submitted by me to Institute of Public
Enterprise is a bonafide and original work undertaken by me.
I also declare that this project report is not submitted to any other university or institution for the
award of any Degree/Diploma/Certificate or Published any time.
Date: 24-6-2011
Place: Hyderabad Bhanu Prakash Reddy E
CONTENTS
CHAPTER - 1
Introduction
CHAPTER – 2
The Future of the Oil Industry: Past Approaches, New Challenges
CHAPTER – 3
Major Public Sector Units in India
IOCL – Indian Oil Corporation Limited
HPCL – Hindustan Petroleum Corporation Limited
BPCL - Bharat Petroleum Corporation Limited
Major Private Sector Units in India
EOL - Essar Oil Limited
RPL - Reliance Petroleum Limited
Chapter 4 : Data Analysis
Chapter 5 : Suggestions
Chapter 6 : Annexure :1-Questionnaires
ABSTRACT
Purpose of the study :
The project titled “A Study on Factors Influencing the sales of MS and HSD in Hindustan
Petroleum Corporation Ltd” involves in studying the reasons for usage of petrol and diesel
from HPCL rather than IOC, BPCL and other private petroleum companies by collecting
information from dealers, Dealers, forecourt salesmen and regular customers of Hindustan
Petroleum retail out let and also some information from general public , and officials of
BPCL .IOC and Automobile showrooms and various servicing centers .
Brief Methodology :
The project discusses about various factors affecting the sales of MS and HSD of Hindustan
Petroleum retail outlets and giving some noteworthy suggestions to the company based on some
research done in order to improve the sales of MS and HSD .
The other part of the study involves – knowing the future supply and demand of fuels and
various business options for dealers and effective usage of man and machinery and Brand
preference of HPCL.
Findings :
The various reasons for present sales , various factors effecting the sales are found . And separate
suggestions are given for both HPCL and dealers .
CHAPTER - 1
INTRODUCTION
Theoretical Frame Work:
“In today’s globalizing economy competition is getting more and fiercer. That means itBecomes more difficult for products and services to differentiate themselves from otherofferings than ever before. Not only is the number of competitive offerings rising due toglobalization of production, sourcing, logistics and access to information. Many products andservices face new competition from substitutes and from completely new offerings orbundles from industry outsiders. Since product differences are closed at an increasing speedand many companies try to win the battle for customers by price reductions, products andservices tend to become commodities”. ‐ Dagmar Recklies
Management Guru
“In a deregulated scenario the industry is going to be more competitive more responsive consequentlymore efficient”.
‐S R ChudharyC&MD ‐ HPCL
“So far the need for advertising was not felt because the environment was not competitive. But withother players in market there is a need for brand building”.
R K SwamyEX ED ‐ IOCL
“The four P's of marketing — product, price, place and promotion — were the corner stones of buildinga brand in the past. Today, one needs to redefine the role of marketing as creating, communicating andDelivering value to the consumer (CCDV)”. ‐Philips Kotler
NEED FOR STUDY
HPCL is one of the major integrated oil refining and marketing companies in India. It is a Mega
Public Sector Undertaking (PSU) with Navaratna status. It realized the need for brand-building,
as oil companies are investing heavily in product development and R&D to come out with fuels
that would suit the requirements of Indian roads as well as comply with the emission norms.
This project helps the marketing department to improve its relationship with customers by
learning their problems and proving solution to the problems.
The study also concentrates on finding out the preferences of the customers with respect to offers
that are being offered. It explains the relative changes in consumption and purchase of fuels with
various services in filling station .
OBJECTIVES
1. To find out the reasons from customers why they opting other filling stations other than
club Hp retail outlets.
2. To obtain the factors influencing the sales of MS and HSD.
3. To know whether automobile showrooms & service centers are suggesting HPCL fuels to
customers.
4. To analyze various promotional strategies followed by IOCL & BPCL to enhance the
sales of their branded fuels.
SCOPE OF STUDY
The fuel industry in India just realized the importance of marketing their
products . Fuel is a form of commodity . It is very difficult to describe the characteristics and
uses of fuel . The challenge is to bring the customers to particular filling station by providing
different fuelling experience .The study is made to analyze the various factors that influencing
the sales of MS and HSD . The project was conducted in the city of Hyderabad in HPCL retail
outlets. The study covers all categories of customers and employees in the outlets to know
various reasons that influence the fuelling habits of customers .
The analysis gives the required conclusions to find gap between perceived
service and expected service and suggestions to fulfill the gap .
The study also covers automobile showrooms & service centers perceptions in
suggesting HPCL fuels to customers, various promotional strategies implemented by IOCL &
BPCL to enhance their sales.
RESEARCH METHODOLOGY
Research methodology used was descriptive research . And sample includes various respondents
related to Oil and Automobile industries and customers .
Sample selected :
1. General Public - 100 respondents 2. Customers who are
visiting Club HP - 250 respondents3. Local mechanics - 35 respondents4. Dealers - 4 respondents5. Forecourt sales man - 10 respondents6. Other petrol bunk7. Dealers - 8 respondents8. All major automobile showrooms & their service centers
a. Maruti a. Hero Hondab. Tata motors b. Bajaj c. Ford motors c. Hondad. Honda motors d. Tvse. Chevroletf. Hyundai
9. Service stations Included all branded showrooms and local servicemen
a. Castrol bike zoneb. Carnations c. Bosch
10. Local mechanics - 35 respondents
Secondary Data
To collect the secondary data the corresponding database were checked and the necessary
information was collected.
a) Ministry of petroleum .
b) Research reports.
c) Performance and strategy reports of petroleum companies.
d) Articles.
e) Newspaper articles
f) Online journals.
Project Boundaries
The study was conducted
1. For a period of 2 months.
2. In certain outlets of Hyderabad and Secunderabad.
3. Less time was given by the customer to interact.
ORGANIZATION OF THE STUDY REPORT :
Chapter 2 : Global Oil scenario
Discusses about the World’s oil sector and the challenges and optimism
about the future .
Chapter 3 : Literature review of various petroleum marketing companies
Review of all profiles Indian Oil companies
Chapter 4 : Data Analysis
A clear analysis about various factors influencing the sales of MS and
HSD of HPCL filling stations in relation with other filling stations .
Chapter 5 : Suggestions
Suggestions include the gaps between the expected service and
perceived service .
Chapter 6 : Annexure
Questionnaires
CHAPTER - 2
The Future of the Oil Industry: Past Approaches, New Challenges
Global scenario :
In order to see how trends have worked with and against each other in shaping the destiny of oil
and gas, we must look closely at several key factors.
We'll start by first examining the single most important element of our business, or, for that
matter, any business. It's also the reason we are so optimistic about the future. That element is
the demand for what we produce and sell.
As Figure below indicates, demand is expected to rise through the year 2011 at a rate of about 2
percent per year for oil and 3 percent per year for gas. This projection reflects the significant
benefits of hydrocarbon energy – namely, its comparatively low cost, its ease of use and its
flexibility to enhance our lives in multiple applications.
Perhaps most important, however, is the fact that oil and gas consumption is essential to
sustaining economic growth in the industrialized world and is key to progress in nations working
their way toward prosperity. This is true even with an outlook that assumes significant energy
efficiency improvement. Without that improvement, the demand growth might be even greater.
Much of this projected growth is expected to occur in the developing countries that still have
very low levels of energy use per capita.
The catch is that while demand increases, existing production declines. To put a number on it,
we expect that by 2010 about half the daily volume needed to meet projected demand is not on
production today – and that's the challenge facing producers.
This means industry may need to add some 80 million oil-equivalent barrels per day to
production by 2010 to meet projected demand. The cost of doing so could reach $1 trillion, or
about $100 billion a year. That's substantially more than industry is spending today.
The growth in oil demand remained flat through the first five decades of the last century, then
took off after World War II and continued to rise as it fueled unprecedented economic growth.
There was a temporary stall at the time of the second oil crisis, but demand resumed its growth
by the mid-1980s.
We learn some very important information by comparing the 100-year demand curve with the
volumes of oil discovered during the same period of time . The greatest exploration success
occurred prior to the creation of OPEC, driven by large discoveries in the Middle East, Russia
and on the North Slope of Alaska.
Obviously, technological advances in exploration have been matched by technology advances in
development. Both have been key factors in raising production volumes. In recent decades, new
discoveries in Africa and parts of the former Soviet Union, coupled with the ongoing increases
from OPEC and vigorous exploration and production in other parts of the world, have led to
increased supplies. Nonetheless, as Figure above indicates, resource additions have lagged
behind demand since the early 1980s. However, the area under the discovery curve over the
entire time period since 1900 is still over twice that under the demand curve.
The Future Role of Petroleum
Success in the future of oil and gas will require the continued adaptation of a complex business
model to unforeseen challenges. One safe bet is that demand for oil and gas will continue to
increase, as they are expected to remain the leading energy sources for some time to come. We
also hope to see a continued increase in exploration success and production as additional areas
are opened for exploration and as our technologies evolve.
Price is a question mark, as usual. Depending upon whom we choose to believe, price could
grow substantially or not at all. There is no way to predict it or control it. Whatever the case, we
must push ahead to keep production costs low, while developing new technology that we can
control.
Another trend is much clearer than price. It's getting harder and harder to find oil and gas.
Industry has made significant new discoveries in the last few years. But they are increasingly
being made at greater depths on land, in deeper water at sea, and at more substantial distances
from consuming markets.
Maintaining this record of exploration success will require the development of new and better
technology. A key example, and one of today's more exciting prospects, is technology that
directly detects and distinguishes the presence of hydrocarbons.
Major Challenges
Let's begin to wrap this up with a summary of the major challenge facing the industry. That
challenge is to ensure that both new and discovered resources can be produced in an
economically and environmentally sound manner to meet increasing demand and offset natural
field decline. We've already shown this can be done, but the pressure to maintain that
performance will only intensify because the absolute requirements are higher.
Environmental fears have already led to restrictions to explore in places such as Alaska and other
parts of the world. Concerns over potential climate change have led to demands for greater
control of energy use and could well impede our ability to produce adequate amounts of energy.
Further, new supplies are located at increasing distances from consuming markets. That's
especially true for gas. Finding economic ways to solve this problem is part of the challenge –
and an area of great competition within our industry, which, of course, the public benefits from.
Reasons for Optimism
We can be optimistic as well about maintaining constructive relationships among producing
countries, consuming nations and energy companies. Periodic disagreements may arise, but one
very positive factor is that all involved have an interest in ensuring the adequate production of
energy. This cooperation has been tested and proven throughout our history.
To be sure, this factor is not as controllable as technology, but we have established an excellent
record, thanks to the mutual benefits energy development creates and the fact that we make good
things happen in developing nations.
CHAPTER-3
Literature Review
Major Public Sector Units in India
IOCL – Indian Oil Corporation Limited
Indian Oil is India’s flagship national oil company with business interests straddling the entire
hydrocarbon value chain – from refining, pipeline transportation and marketing of petroleum
products to exploration & production of crude oil & gas, marketing of natural gas and
petrochemicals. It is the leading Indian corporate in the Fortune 'Global 500' listing, ranked at the
125th position in the year 2010.
With over 34,000-strong workforce, IndianOil has been helping to meet India’s energy demands
for over half a century. With a corporate vision to be the Energy of India, IndianOil closed the
year 2009-10 with a sales turnover of Rs. 271,074 crore and profits of Rs. 10,221 crore.
At IndianOil, operations are strategically structured along business verticals - Refineries,
Pipelines, Marketing, R&D Center and Business Development – E&P, Petrochemicals and
Natural Gas. To achieve the next level of growth, IndianOil is currently forging ahead on a well
laid-out road map through vertical integration— upstream into oil exploration & production
(E&P) and downstream into petrochemicals – and diversification into natural gas marketing and
alternative energy, besides globalization of its downstream operations. Having set up subsidiaries
in Sri Lanka, Mauritius and the United Arab Emirates (UAE), IndianOil is simultaneously
scouting for new business opportunities in the energy markets of Asia and Africa.
Reach and Network
IndianOil and its subsidiary (CPCL) account for over 48% petroleum products market share,
34.8% national refining capacity and 71% downstream sector pipelines capacity in India.
The IndianOil Group of companies owns and operates 10 of India's 20 refineries with a
combined refining capacity of 65.7 million metric tonnes per annum (MMTPA, .i.e. 1.30 million
barrels per day approx.). IndianOil’s cross-country network of crude oil and product pipelines,
spanning 10,899 km and the largest in the country, meets the vital energy needs of the consumers
in an efficient, economical and environment-friendly manner.
It has a portfolio of powerful and much-loved energy brands that includes Indane
LPGas, SERVOlubricants, XtraPremium petrol, XtraMile diesel, etc. Validating the trust of 56.8
million households, Indane has earned the coveted status of ‘Superbrand’ in the year 2009.
HPCL – Hindustan Petroleum Corporation Limited
HPCL is one of the major integrated oil refining and marketing companies in India. It is a Mega
Public Sector Undertaking (PSU) with Navaratna status.
HPCL is a Fortune 500 company, with an annual turnover of Rs. 1,08,599 Crores and
sales/income from operations of Rs 1,14,889 Crores (US$ 25,306 Millions) during FY 2009-10,
having about 20% Marketing share in India and a strong market infrastructure.
HPCL operates 2 major refineries producing a wide variety of petroleum fuels & specialties, one
in Mumbai (West Coast) of 6.5 Million Metric Tonnes Per Annum(MMTPA) capacity and the
other in Vishakapatnam, (East Coast) with a capacity of8.3 MMTPA. HPCL holds an equity
stake of 16.95% in Mangalore Refinery & Petrochemicals Limited, a state-of-the-art refinery at
Mangalore with a capacity of 9 MMTPA. In addition, HPCL is constructing a refinery at
Bhatinda, in the state of Punjab, as a Joint venture with Mittal Energy Investments Pte. Ltd.
HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base
Oils of international standards, with a capacity of 335 TMT. This Lube Refinery accounts for
over 40% of the India's total Lube Base Oil production.
HPCL's vast marketing network consists of 13 Zonal offices in major cities and 101 Regional
Offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Pipeline
Outlets, Lube and LPG Distributorships. HPCL, over the years, has moved from strength to
strength on all fronts. The refining capacity steadily increased from 5.5 MMTPA in 1984/85 to
14.8 MMTPA presently. On the financial front, the turnover grew from Rs. 2687 Crores in
1984-85 to an impressive Rs 1,16,428 Crores in FY 2008-09.
Products & Services of HPCL
Refineries
HPCL has two refineries located in Mumbai (West Coast) and Visakh (East Coast) with
capacities of 5.5 MMTPA and 7.5 MMTPA respectively , churning out a wide range of
petroleum products, viz. LPG, MS, SKO, ATF, HSD, Bitumen etc. and over 300 grades of
lubricants, specialties and greases as per BIS standard. HPCL has successfully contributed close
to 20% of India's total refining requirements. Over the years HPCL's capacity of production has
expanded massively through various upgradation initiatives. The Refineries known for the full
utilization of capacity and world class performance are the foundations of HPCL's successful
journey towards meeting India's energy requirements.
The refineries are supervised as per the international benchmarks of quality. So far both the
refineries have maintained their capacity utilization above 100% of installed capacity. The
consistent maintenance of standard has fetched the two refineries numerous awards.
Our Marketing Network
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
Regional Offices 101 90 91 86 85 85
Terminals/Installations/TOPs
42 42 42 37 36 36
Depots 100 100 93 93 92 100
LPG Bottling Plants 44 43 43 42 41 40
ASFs 32 21 16 13 13 10
Retail Outlets 9140 8539 8329 7909 7313 6667
SKO/LDO Dealers 1638 1638 1648 1648 1648 1648
LPG Distributors 2395 2250 2232 2238 2202 2153
LPG Customers (in crores) 2.91 2.698 2.52 2.39 2.28 2.17
The strengthening of the marketing network over the years has lead to dominance in the market
reflected in its growth and leading to best quality of service.
HPCL was one of the first companies to understand the nation's energy requirements and take
necessary measures to fulfill the expectations. Its increasing infrastructure facilities are due to the
successful realization of targets and sustained quality of service and customer relations.
A massive infrastructure comprising two cross country pipelines and an extensive network of
terminals, depots, LPG Bottling plants, Lube Filling Plants and Aviation Service Facilities
(ASF) contributes to India's growth every year.
HPCL's vast marketing network consists of 13 Zonal offices in major cities and 101 Regional
Offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Aviation
Service Stations, LPG Bottling Plants, and Inland Relay Depots & Retail Outlets, Lube and LPG
Distributorships On the financial front, the turnover grew from Rs. 2687 Crores in 1984-85 to an
impressive Rs 1, 31,802 Crores in FY 2008-09.
Hindustan Petroleum Retail Outlet Profile
Vision
These are the SBU developed visions through ACE (Achieving Continuous Excellence)
Highest performer in sales growth over industry.
Sustained profitability through increased sales, ARB earnings, cost optimization, branded
fuels and branded lubricants.
Customer delight at the point of interface. Fulfilling the stated and latent needs of the
customer through innovative products and services.
Competent, committed and empowered employees.
Sense of pride and mutual trust and camaraderie. Conducting business in a fair,
transparent and ethical manner.
Retail SBU developed a vision which was co-created by the employees of the SBU. Based on
the vision, cross functional sub-groups of Officers from marketing, finance and HR
department closely interacted with customers in various market segments such as Highway,
Rural, 2- wheeler/3-wheeler and Car segments to develop a customer centric dynamic
business strategy.
Performance Profile
Highlights:
Retail Business Unit recorded a growth of 4.5% in MS and 0.9% negative growth in
HSD.
A number of 645 new retail outlets were commissioned.
Continuous efforts of the SBU have ensured that HPCL now have a control of 76% of our
network which is highest in the country.
A new visual identity program “Project Akarshan” has been rolled out.
As a part of ongoing “Focus 500” program, several retail outlets have been modernized
during the year.
Good Fuel Promise
A quality product is one that complies with prescribed specifications and is free from any
contamination or adulteration. Lubricants available at retail outlets are factory sealed and packed.
To ensure that consumers get contamination free products, personnel at our outlets check the
products regularly.
In addition, sales officers carry out regular checks at all the outlets to prevent any malpractices.
Filter Paper Test is used to check quality of petrol.
CHAPTER-5
SEGMENTATION OF CUSTOMERS COMING TO FILLING STATION
1. Upwardly Mobile
The upwardly mobile are smart, independent, hard working and competitive people who strive to do well in life. They believe in working hard and enjoying life at the same time. Open to new and better things in life they are optimistic. They are brand conscious and are willing to pay a premium if they are convinced of the benefits.
Typical Profiles:
2. Highway Raja
The highway Rajas are truck drivers of transport companies of drivers of self-owned trucks moving between different cities on highways. They not only want the best deals on fuel and best foods, but also look out for better performance of their trucks. At the end of long stretch of driving, they look forward to safe parking, homely food and a clean, comfortable place to rest and relax. They look forward to meeting familiar faces at a pump or a Dhaba and like a little entertainment at these halts-like a TV programs , movie or music.
Demographic young and middle-aged well educated Higher than average income
Attitude, Behavior& life style Looks for convenience look for service which save time use credit card Like good looking and new age
things
Vehicle Usage Has fairly new vehicle Uses vehicle for work, entertainment
& weekend outings Fuel/Outlet related Behavior Average to high fill size Is in a hurry More likely to use premium fuel patronizes a particular outlet
Stereotypes Senior corporate Dealer. Young entrepreneur.
Demographics
Male likely to be middle aged or old
Little or no education. Makes a living by driving. Earns low to average income.
Attitude, Behavior and Lifestyle The facilities like food, place to refresh Needs courteous behavior
Fuel/Outlets related behavior Fill size is normally large Prefers to fill at the start of the journey At times has a audit arrangement with dealer.
StereotypesGurmeet-Driver of a transport company.
Walk Ins
The walk-ins are passersby who come to the outlet looking for things other than fuel. They may come to use ATM or the convenience store and might use other facilities on impulse. They live or work in the neighborhood of the outlet and seek quick and convenient solutions.
Driver Saheb
The Driver Sahebs drive the city tourist vehicles, auto rickshaws, buses, taxis, LCGs and HCGs. They may own their vehicles or could be just the drivers. For some of them, there is no predictability in their income but they are street smart and try to get lowest price on everything. Driving being the source of income for them, they want to maximize their earning from their vehicles. They are always in a hurry to get on their next trip and many of them fill fuel frequently during the day.
Demographics
Could be of any age, gender, occupation Likely to have moderate to high income
Attitude, Behavior & Lifestyle Might pay by debit/credit card. Is not very price sensitive. Needs courteous behaviors. Likely to be brand conscious and loyal.
Fuel/outlet related behavior Just walks into an outlet for using the
ATM or any other services.
Stereotypes Teenager walking into the outlets for
a packet of chips
Demographics Male of any age . Little or no education . Drive a commercial vehicle within the city
Attitude, behavior & Lifestyle
Largely pay by cash. However there is a need for credit.
Is price sensitive. Gets attracted to promotions.
Fleet Owner
The fleet owners are those who have a transport business with multiple vehicles in their fleet. They may be operating a fleet of cars, buses, trucks or tankers. Since they do not travel with their vehicles, they are carried about the well being of their fleet and the drivers along the way. Also, industrialist who buy fuel for their factories from an outlet from a part of this segment. They need credit for the working capital of their business, are very price conscious and want good quality products and service.
Vehicle Usage
Is in the vehicle for long hours.
Fuel/outlet related behavior
Fill frequency is high. Fill size is low for small vehicles. Fuels at the start of the day
Stereotypes
Ahmed-Autorickshaw owner driver. Bhela – Drivers a tourist van around the
city.
Demographics
Likely to be middle aged or old . Dealers a fleet of vehicles. Income likely to be average to high.
Attitude, Behavior & Lifestyle
Is price sensitive. Is worried about eroding profits in
business.
Vehicle Usage
Vehicles is not driven by self – it is driven by haired drivers.
Concerned about the safety vehicles and comfort of the drivers.
Fuel/Outlet related behavior Fill size is normally large Q and Q and good performance of the
fuel is very important
Gen Next
The Gen Next Segment companies students. They are dependent on their parents and get a limited sum of pocket money to spend. These well-informed customers aspire to buy the latest accessories in the market and often make impulse purchases. They want to be cool and hang out at trendy, places. Their vehicle is a prized possession and they love to maintain it. Some of them also drive their parents cars.
Hum Log
Hum log are prudent and practical people. They have an average income, are cautious about spending and are very meticulous about the way they do things. They make decisions only after carefully considering all their options. They deliberate over each purchase, are very quality conscious and want value for money.
Stereotypes
Jaidev : Owner of a truck fleet Ramesh : Owner of a car fleet
Demographics
Young male or female. Likely to be student in college
Attitude, Behavior & Lifestyle
Likely to pay cash or use a pre-paid card.
Spends pocket-money on fuel, books
Is attracted to good looking things.
Vehicle Usages
More likely to ride a two-wheeler Likes to ride a two-wheeler. Likes to maintain the vehicle.
Fuel/Outlet related Behavior
Small fill size. Fills while going to college or while
returning home. Likely to frequent the same outlets.Stereotypes
Students owning/driving a vehicle.
Demographics Likely to be young and middle
aged. Some education or well educated. Has a small business or is salaried.
Attitude, Behavior & Lifestyle
Likely to pay by cash or pre-paid card.
Works for value for money and is not very brand conscious.
DATA ANALYSIS
CONSUMER HABITS IN FUELLING THEIR VEHICLES
Customer behavior is analyzed by taking survey with online questionnaire with 100 respondents .
Data Analysis :
Total Respondents participated can be segmented in to
a. 2Wheer customers
Vehicle Usage
Uses vehicles for work or for family outing.
Fuel/Outlet-related behavior
Low to average fill size. Likely to patronize an outlet. Works for quick fill and wants good
mileage and Q and Q.
Stereotypes
Government officers. Dealer, nearing retirement. Shopkeeper with a small shop.
b. 3 wheeler customersc. 4 wheeler customersd. Customers having both 2&4 wheeler vehiclese. Customers having both 2& 3 wheeler vehicles
Customer Choice towards good Quality of fuel :
Customer Choice towards good Quantity of Fuel :
Factors influencing to move to particular filling station :
Loyalty Cards by Filling stations :
Mode Of Payment :
Acceptable waiting time :
Services Expected to have in filling station :
Conclusions :
Most of the four wheeler customers also own a 2 wheeler . For both quality and quantity customers are preferring BPCL , and HPCL stood at 2nd
place in term of both quality and quantity . 40% of the people are very calculated about their filling habits , before becoming
regular customer to filling station they want to check the mileage . 39% of the people want to become the regular customers and use the benefits of being
the regular customer . Mode of payment is mainly done by cash , The credit and debit card holders in India
touched to 40 crore in 2010 . The avg waiting time for 2 wheelers is 5 mins and for 4 wheelers and 3 wheelers is 10
mins . ATM , AIR , Drinking water and pollution check are the major preferred service by most
of the customers .
The above conclusions are used in analyzing various parameters in coming pages .
Service analysis of Club HP Filling stations :
LAXMAIAH AND BRO – LB NAGAR
About the filling station :
Dealer : Mr K .Srinivas Rao
Staff : 8
Products available : MS, HSD , LPG ,Lubes
Services provided : Air filling , Drinking water , Toilets , ATM ,Windshield
Staff is working on alternate day basis i.e., 1 day work and 1 day Leave , and worker is working for 24 hours on his working day
2 Hoarding in entry and in exit
Workers are getting commission on sale of MS and HSD .
Observations :
Dealer is regularly available in filling station
Customer care with good hospitality is maintained this filling station
Dress code is given and strictly followed by forecourt salesman .
Credit is given to Fleet owners who visit regularly to this filling station .
Standard Operating Procedures are following in this station .
There is a record for regular customers of HSD .
Regular meetings are conducted to motivate and to increase the efficiency of forecourt salesman .
There are no promotional activities to increase the sales .
No display Boards to regulate the traffic and to show safety measures .
Generator is old and it causing the problem when there is no power .
All the staff has undergone training for MS and HSD .
It is located in junction and can satisfy both metro and highway traffic .
Stock levels are regularly checked to avoid the dry outs in filling station .
Dealer Scores evaluation - (Customers and Employees) by HPCL
KSF (Key Success Factor ) score of Laxmaiah & Bro filling station :
For success of filling station place is the prime factor , As the fuel is a daily need , most of the people prefer to go for the filling station which is nearby .
Online survey conducted says that 45% of the people go to any petrol bunk that is available , And they are not particular about the amenities and other services at that filling station . So it can be said that the LOCATION carries more importance than any other factor .
LOCATION : L B Nagar Ring Road
Areas from which customers may visit this filling station
Uppal ( Population – 40,406 ) Hayatnagar ( Population – 35,467 ) Kothapet ( Population – 33,685 ) Mansoorabad ( Population – 30,718 ) Vanasthalipuram ( Population – 33,817 ) Karmanghat ( Population – 31,143)
And the vehicles moving from Hyderabad to VIJAYAWADA , Guntur , others going from NH 9
Collage buses , as NH 9 has large no. of engineering , MBA and MCA collages . 7 seated autos , which run from Kothapet to Pedha Amberpet .
Location benefits :
As the Filling station is located at center of many areas it has great scope for covering many customers
It is can attract the customers of 2 highways i.e., Hyderabad to Vijayawada and Hyderabad to Nagarjuna Sagar .
Large no . of 7 seated autos move in this place where as these autos banned in other locations by RTA HYDERABAD .
Large no. of college buses made LB Nagar as their center .
CHALLENGES :
LB Nagar and surrounding areas have good number of other filing stations . This filling station is located near high traffic area , So people may not feel like take a
break for fuel as they also have other options ahead . Near entry and exit of the filling station there is huge traffic of both people and vehicles
because of BUS STAND where district buses and other private travel buses made it as center .
Conclusions :
This filling station has many advantages than other filling stations with respect to LOCATION
The filling station is located in one of the busiest areas of HYDERABAD. In addition with regular customers there are other specific customers like 7 seater autos ,
college and school buses , and Fleet owners moving from HYDERAB to VIJAYAWADA and HYDERABAD to NAGARAJUN SAGAR .
Filling station located around the developing areas like UPPAL , KOTHAPET , HAYATNAGAR , So there is huge scope in the future .
And the filling station is located just beside the LB Nagar Ring Road which is well known land mark to the people of Hyderabad .
Traffic Management : Traffic is one of the major problem faced by retail filling stations . The level of traffic may vary with peak and non-peak times . The analysis of this petrol bunk is given below :
Here there are total of 6 dispensing Units 2 for LPG , 2 for MS and 2 for HSD
The traffic levels are measured differently for 2 wheelers , 3&4 wheelers . Because 2 wheelers are not ready to wait for longer time , as from the sample collected it is observed that 2 wheelers do not want to wait for more than 5 mins on an average .
And 3&4 wheelers are likely to wait for 10-12 mins as their fuel need per turn is much larger .
And most of the fleet owners they are not particular about the waiting time , as most of the fleet owners are regular customers who fill on credit .
Traffic near Petrol dispensers :
For two wheelers it is measured by taking the no. of vehicles entering into the station per 5 mins and no. of vehicles are filled with fuel per 5 minutes .
For four wheelers it is measured by taking the no. of vehicles entering into the station per 10 mins and no. of vehicles are filled with fuel per 10 minutes .
It is done for 7 time intervals and avg. is calculated .
PEAK TIME
Petrol Dispensing Unit 1 : Time taken by dispenser to fill 1ltre – 6-7seconds
For four wheelers it is measured by taking the no. of vehicles entering into the station per 10 mins and no. of vehicles are filled with fuel per 10 minutes .
It is done for 10 time intervals and avg. is calculated .
PEAK TIME
Diesel Dispensing Unit 1 : Time taken by dispenser to fill 1ltre – 6-7seconds
Workers -1
10mins 10mins 10mins 10mins 10mins avg
4wheelers 3 4 4 6 5 ~5No.of vehicles fuelled
3 3 3 4 3 ~3
Diesel Dispensing Unit 2 : Time taken by dispenser to fill 1ltre – 6-7seconds
b) Credit to Regular fleet owners – Given by Dealer.
Activities to increase the sales :
Showing zero reading for each customer before filling . Many dispensers for MS and HSD
Negative points : a) There is no compensation for workers for making more sales.
b) No ATM facility .
CONCLUSIONS :
About the filling station
All the regular services like drinking water , toilets, ATM , Air filling is available in this filling station .
Services like Pollution check , Availability of Soft drinks is not available Windshield service is available in this filing station . No promotional activities from filling stations . Stock is maintained to avoid the dry outs .
Location :
This filling station has many advantages than other filling stations with respect to LOCATION
The filling station is located in one of the busiest areas of HYDERABAD. In addition with regular customers there are other specific customers like 7 seater autos ,
college and school buses , and Fleet owners moving from HYDERAB to VIJAYAWADA and HYDERABAD to NAGARAJUN SAGAR .
Filling station located around the developing areas like UPPAL , KOTHAPET , HAYATNAGAR , So there is huge scope in the future .
And the filling station is located just beside the LB Nagar Ring Road which is well known land mark to the people of Hyderabad .
Competitor analysis :
IOC and BPCL got their filling stations near this HPCL filling station BPCL filling station located just 400 mts from this HPCL filling station has many
services like Rest rooms , Online transactions ,Western Union money transfer , IN % OUT convenience store , Shop for Lubes , Insurance stalls , Campaigns to promote Lubes etc
GAP ANALYSIS :
Expected Current Gap
2 wheelers a. Salesman behaviorb. Q & Q assurancec. Good Traffic managementd. Less process timee. Ambiancef. Air facilityg. Automationh. Locationi. Eye catchy filling station
a. Q & Q assuranceb. Good Trafficc. managementd. Air facilitye. Automation
a. Good serviceb. Less process timec. Ambianced. Locatione. Eye catchy filling
station
3 wheelers/
Commercial vehicles
a. Q & Q assuranceb. Salesman behaviorc. Salesman-Customer
Miscellaneous a. Cleanliness of filling stationb. Employee motivationc. Promoting HP Fueld. Should be able to make
deals with large Fleet owners
e. Avoiding dry outsf. Making profits through
other services(ATM, Lubes)
a.Avoiding dry outsb. Making profits
through other services(ATM, Lubes)
a. Cleanliness of filling station
b. Employee motivationc. Promoting HP Fueld. Should be able to make
deals with large Fleet owners
SUGGESTIONS :
Customer segmentation – All types of customers are visiting this filling station . Driver sahabs and Hum log taken the major share of the customers . What they need is
a. Works for quick fill and wants good mileage and Q and Q.b. Wants a clean outlet even if it is not very jazzy.c. Wants the staff to be respectful and courteous.
Need to create USP to attract more customers , USP may be like opening a Mc Donald or Coffee shop , as the shop located in junction with bus stand and also center for many collages so many business options are available .
Services like Soft Drinks and pollution check can make available to customers .
Windshield Cleaning facility which is available in this filling station is not aware by most of the customers , So the service should made available to customers by placing Display Boards .
Sales can be increased by 1. Tie up with colleges and providing fuel to their buses on credit basis 2. Tie up with private travels as good number of buses run from HYD to
Vijayawada every day .3. Providing loyalty cards to Auto owners and making them loyal to filling
station .4. Giving free gifts like shirts , cleaning cloths , glass cleaning liquids to
fleet owners and make them loyal customers .5. Providing rest rooms and parking place to fleet owners . as they drive
only in nights and try to find the parking place during the day .6. More initiation should be taken by Dealer to increase the sales because he
knows better about the location and customer need in that location .7. Should see that less traffic near entry of the Filing station so that
Customers feel free to enter in to the station .8. So parking of heavy vehicles should be avoided in front of the filling
station and the filling station should made visible to the every one.9. Think globally and act locally – HPCL should modify the petrol bunks
in relation with the type of customers reaching the filling station .
Traffic management is good as the no. of customers are relatively less .
Effective use of all the dispensers at each dispensing unit(DU) should be made .
Most of the customers visiting are 2 wheelers . So 1 DU can be completely allotted to 2 wheelers and another DU can be shared between 2 & 4 wheelers .
Though there are no promotional activities this bunk has 45% of regular customers . They are feeling that this filling station giving the best quality of fuel . And the no. of loyal customers can easily increase if HPCL provides loyalty programs even for 2 wheelers and MS using 4 wheelers , And others as said above .
Water and toilet display Boards should be made visible to customers .
BPCL which is located beside this filling station is providing large no. of amenities , so to compete the services of BPCL , HPCL should also start basic amenities like rest rooms , Online transactions for fleet owners , Lubes shop , etc .
\
Service analysis of Club HP Filling stations :
DARABOINA FILLING STATION - NAGOL
About the filling station :
USP : First filling station in Hyderabad to start CNG distribution .
Dealer : Venu Kumar
Staff : 9
Products available : MS, HSD , CNG ,Lubes
Services provided : Air filling , Drinking water , Toilets , ATM
Staff is working for 12 hours a day .
1 Hoarding near exit which can also visible from road .
Workers are getting commission on sale of MS and HSD .
Observations :
Dealer is regularly available in filling station
Customer care with good hospitality is maintained this filling station
Dress code is given and strictly followed by forecourt salesman .
Credit is given to Fleet owners who visit regularly to this filling station .
Standard Operating Procedures are following in this station .
There is a record for regular customers of HSD .
Regular meetings are conducted to motivate and to increase the efficiency of forecourt salesman .
There are no promotional activities to increase the sales .
Presence of Display Boards to regulate the traffic and to show safety measures .
All the staff has undergone training for MS and HSD .
Stock levels are regularly checked to avoid the dry outs in filling station .
CNG traffic is very high ie., 30-40 autos waiting in the line for 24 hours .
Dealer Scores evaluation - (Customers and Employees) by HPCL
KSF (Key Success Factor ) score of DARABOINA filling station :
National %tile rank 100.00
Zone %tile rank 100.00
Region %tile rank 100.00
KSF Statement Dealer Ratings
Customer (Fleet + Retail)
Dealer Employee Net KSF Score
Dealer Commitment & Involvement 4.31 4.94 5.00
Customer Orientation 5.00 5.00 5.00
Credit Extension 4.00 5.00 0.00
Business Values 5.00 4.88 5.00
Employee Orientation 5.00 5.00 5.00
Segment 4.65 4.96 5.00 4.84KSF Score
LOCATION :
For success of filling station place is the prime factor , As the fuel is a daily need most of the people prefer to go for the filling station which is near by .
Online survey conducted says that 45% of the people go to any petrol bunk that is available , And they are not particular about the amenities and other services at that filling station . So it can be said that the LOCATION carries more importance than any other factor .
LOCATION : Nagole Road
Areas from which customers may visit this filling station
Uppal ( Population – 40,406 ) Mansoorabad ( Population – 30,718 ) Karmanghat ( Population – 31,143) Nagole
And the vehicles moving from Sec Bad to NH 9 Collage buses , of engineering , MBA and MCA collages . 7 seated autos , which run from LB Nagar to UPPAL . Vehicles from Uppal Industrial area .
Location benefits :
As the Filling station is located at center of many areas it has great scope for covering many customers
Large no . of 7 seated autos move in this place where as these autos banned in other locations by RTA HYDERABAD .
Large no. of college buses made LB nagar as their center . This filling station is located on 6 lane wide road with less traffic and surrounded with
greenery because of Moosi river , this help the customers to stop for filling fuel .
CHALLENGES :
Surrounding areas have good number of other filing stations . BPCL which is located just few hundred meters is a COCO , and gained huge popularity
for quality Near entry and exit of the filling station there is huge traffic because of Autos waiting
for CNG , and beside the filling station there are two very large service centers whose parking place sometime extend towards the filling station .
Traffic Management : Traffic is one of the major problem faced by retail filling stations . The level of traffic may vary with peak and non-peak times . The analysis of this petrol bunk is given below :
Here there are total of 4 Dispensing Units 1 for CNG , 2 for MS and 1 for HSD
The traffic levels are measured differently for 2 wheelers , 3&4 wheelers . Because 2 wheelers are not ready to wait for longer time , as from the sample collected it is observed that 2 wheelers do not want to wait for more than 5 mins on an average .
And 3&4 wheelers are likely to wait for 10-12 mins as their fuel need per turn is much larger .
And most of the fleet owners they are not particular about the waiting time , as most of the fleet owners are regular customers who fill on credit .
Traffic near Petrol Dispensing Units :
For two wheelers it is measured by taking the no. of vehicles entering into the station per 5 mins and no. of vehicles are filled with fuel per 5 minutes .
For four wheelers it is measured by taking the no. of vehicles entering into the station per 10 mins and no. of vehicles are filled with fuel per 10 minutes .
It is done for 7 time intervals and avg. is calculated .
PEAK TIME
Petrol Dispensing Unit1 : Time taken by dispenser to fill 1ltre – 6-7seconds
For four wheelers it is measured by taking the no. of vehicles entering into the station per 10 mins and no. of vehicles are filled with fuel per 10 minutes .
It is done for 5 time intervals and avg. is calculated .
PEAK TIME
Diesel Dispensing Unit 1 : Time taken by dispenser to fill 1ltre – 6-7seconds
Workers -1
10mins 10mins 10mins 10mins 10mins avg
4wheelers 4 4 2 6 5 ~5No.of vehicles fuelled
3 3 2 4 3 ~3
OFF-PEAK TIME :
Diesel Dispensing Unit 1 : Time taken by dispenser to fill 1ltre – 6-7seconds
Showing zero reading for each customer before filling .
Negative points : a) There is no compensation for workers for making more sales.
b) No ATM facility .
CONCLUSIONS :
About the filling station
All the regular services like drinking water , toilets, ATM , Air filling , Pollution check , Soft drinks are available in this filling station .
Windshield service not is available in this filing station . No promotional activities from filling stations . Stock is maintained to avoid the dry outs .
Location :
This filling station has many advantages than other filling stations with respect to LOCATION
In addition with regular customers there are other specific customers like 7 seater autos , college and school buses , and Fleet owners moving from Sec Bad to VIJAYAWADA and Sec Bad to NAGARAJUN SAGAR .
Filling station located around the developing areas like UPPAL , NAGOLE , UPPAL INDUSRIAL AREA So there is huge scope in the future .
Competitor analysis :
IOC and BPCL got their filling stations near this HPCL filling station BPCL filling station located just 400 mts from this HPCL filling station is COCO , and
it is popularized for its quality and service .
GAP ANALYSIS :
Expected Current Gap
2 wheelers a. Salesman behaviorb. Q & Q assurancec. Good Traffic
managementd. Less process timee. Ambiancef. Air facilityg. Automationh. Locationi. Eye catchy filling station
a. Q & Q assuranceb. Air facilityc. Automationd. Locatione. Eye catchy filling
station
a.Good serviceb. Less process timec.Good Traffic
managementd. Ambiance
3 wheelers/
Commercial vehicles
a. Q & Q assuranceb. Salesman behaviorc. LPG/CNGd. Salesman-Customer
relationship b. Salesman behaviorc. Loyalty cardsd. Rest roomse. Offers/Free giftsf. Locationg. Toiletsh. Crediti. Drinking water
Miscellaneous a. Cleanliness of filling station
b. Employee motivationc. Promoting HP Fueld. Should be able to make
deals with large Fleet owners
e. Avoiding dry outsf. Making profits through
other services(ATM, Lubes)
a. Avoiding dry outsb. Making profits
through other services(ATM, Lubes)
c. Employee motivation
a. Cleanliness of filling station
b. Promoting HP Fuelc. Should be able to
make deals with large Fleet owners
SUGGESIONS :
Customer segmentation - Next Gen , Driver sahbs and Hum log are the majority customers coming in to this filling station .
a. Likely to be attracted to brands and be loyal.b. Is attracted to good looking things.c.Looks for value for money yet likes to indulge.d. They need Q and Q petrol .e.They need fast filling .
This filling station is located beside a big lane road and the filling station has the chance of expanding its area , So it can extend its compound and it will help in installing more DU’s , and place for convenience store and rest rooms .
Soft Drinks and Pollution check available in this filling station are not effectively used by customers as they not promoted effectively , so display Boards can be placed to attract customers to use the service .
Yes , Soft Drinks are available in this filling station , But where to drink them , people can not drink them on road . So there is a need to think about this service , like extend some place for this service .
Sales can be increased by : Tie up with colleges and providing fuel to their buses on credit basis Providing loyalty cards to Auto owners and making them loyal to filling station . Giving free gifts like shirts , cleaning cloths , glass cleaning liquids to fleet owners and
make them loyal customers . Providing rest rooms and parking place to fleet owners . as they drive only in nights and
try to find the parking place during the day . Should see that less traffic near entry of the Filing station so that Customers feel free to
enter in to the station .
Traffic management is not effective as the total area of this filling station is relatively less , only half the vehicles are filled out of total vehicles entering in specific time interval .
Effective use of all the dispensers at each dispensing unit(DU) should be made .
Autos waiting for CNG becoming traffic disturbance . More dispensers for CNG can be installed to minimize the CNG traffic .
Dry out of CNG is very regular in this filling station . This should be avoided
Water and toilet display Boards should be made visible to customers .
BPCL which is located beside this filling station is COCO , So competing with COCO is little difficult as every COCO gives the fuel assurance and other effective services like Air filling .
SHAKTHINAGAR FILLING STATION - OMKARNAGAR
About the filling station :
Newly established , Towards Nagarjun sagar road , Big parking place .
Dealer : Mr Vikram
Staff : 9
Products available : MS, HSD ,Lubes
Services provided : Air filling (Under construction ) , Drinking water , Toilets , ATM ( Under Construction )
Staff is working for 24 hours a day . and rest for 1 day .
No Hoardings .
Workers are not getting commission on sale of MS and HSD .
Observations :
Dealer is regularly available in filling station
Customer care with good hospitality is maintained this filling station
Dress code is given and strictly followed by forecourt salesman .
Credit is given to Fleet owners who visit regularly to this filling station .
Standard Operating Procedures are following in this station .
There are promotional activities to increase the sales .i.e., giving cleaning cloths for filling full tank , free mineral water
All the staff has undergone training for MS and HSD .
Stock levels are regularly checked to avoid the dry outs in filling station .
Canopy is not yet fixed which is greatly effecting the sales , as the customers do not want to fill the fuel under the sun .
LOCATION :
For success of filling station place is the prime factor , As the fuel is a daily need most of the people prefer to go for the filling station which is near by .
Online survey conducted says that 45% of the people go to any petrol bunk that is available , And they are not particular about the amenities and other services at that filling station . So it can be said that the LOCATION carries more importance than any other factor .
LOCATION : Omkar Nagar Road
Areas from which customers may visit this filling station
Vanasthalipuram ( Population – 40,406 ) Karmanghat ( Population – 31,143) Champapet (Population -33516 )
And the vehicles moving from Hyderabad to Nagarjunsagar ) Collage buses , of engineering , MBA and MCA collages . 7 seated autos , which run from LB Nagar to BN REDDY .
Location benefits :
Large no . of 7 seated autos move in this place where as these autos banned in other locations by RTA HYDERABAD .
Large no. of college buses made run from this petrol bunk . This filling station is located on 6 lane wide road with less traffic.
CHALLENGES :
Surrounding areas have good number of other filing stations .
Traffic Management : Traffic is one of the major problem faced by retail filling stations . The level of traffic may vary with peak and non-peak times . The analysis of this petrol bunk is given below :
Here there are total of 3 Dispensing Units(DU’s) 1 for MS and 2 for HSD This filling station got newly established at still it do not have CANOPY . There is
very less traffic during mid-day . As the customers cannot wait for fuel under hot sun . So traffic management can only be assessed after installing the CANOPY . and the
segmentation of customers can be made . The salesman are not effectively working as they do not want to work under the sun .
Customer analysis :Customer Segmentation :
Highway raja Fleet Owners Next Gen Driver sahbs Walk in's Hum log Upwardly mobile
13%
20%
13%
27%
0%
20%
7%
Customer Segmentaion
Vehicle segmentation :
Calculated per particular time interval
No. of regular customers
Regular Customers
Random customers
0%
10%
20%
30%
40%
50%
60%
70%
80%
22%
78%
Complaints about Quality and Quantity :
satisfied with Q and Q
dissatiffied with Q and Q
100%
0%
Q and Q
Traffic management :
satisfied with Trafic management
dissatiffied with Trafic management
85%
15%
Traffic Management
Dry out :
Never experianced dry out
experianced dryout
100%
0%
Dry out in filling station
Automation :
Automation made the process fast and ac-curate
Automation made no difference to me
66%
34%
Automation
Salesman behavior towards customers :
Display Boards (No smoking and other safety Boards ) at this filling station :
Attractive and Helpful
Attractive but not helpful
Not Attractive
No display boards
0%
0%
0%
100%
Display Boards
Hoardings in this filling station :
I Observe the Hoarding and they are attractive
I Observe the Hoarding and they are not attractive
I never observe the Hoardings
No Hoardings
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
0%
0%
0%
100%
Loyalty Cards :
I have the knowlegde but not using the service
I have the knowlegde and using the service
I have no knowledge about the service
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 0%
100%
Ambiance :
Infrastructure Cleanliness Salesman uniform
4%
45%
55%
24%27%
18%
10%
23%
13%
29%
5%
14%
33%
0% 0%
AmbianceExcellent good neutral bad worst
Competitor analysis:
Name : Prakash filling station
Location : Omkar nagar
How far : 200mts from HPCL (Shaktinagar filling staion )
Products available : MS,HSD , Lubes , Xtramile , Xtrapremium
Services available : Air filling , Drinking water ,Toilets .
USP : Nothing
Promotional activities : Through Hoardings
Offers and scheme : a) XTRAREWARDS – An online scheme by Indian oil
b) Credit to Regular fleet owners – Given by Dealer.
Activities to increase the sales :
Showing zero reading for each customer before filling .
Negative points : a) There is no compensation for workers for making more sales.
b) No ATM facility .
BHARAT PETROLEUM
Location : Sagar RingRoad
How far : 400mts from HPCL (Shakthi Nagar filling staion )
Products available : MS,HSD , Lubes , SPEED , HIGH SPEED DIESEL .
Services available : Air filling , Drinking water ,Toilets .
USP : large parking place with good no of DU’s
Promotional activities : Through Hoardings Offers and scheme : a) PETROCARD
Activities to increase the sales :
Showing zero reading for each customer before filling .
Negative points : a) There is no compensation for workers for making more sales.
Conclusions :
About the filling station
The regular services like drinking water , toilets, ATM , Air filling , Pollution check , Soft drinks are available in this filling station .
ATM , Air filling , Pollution check , Soft drinks are under construction . Windshield service not is available in this filing station . No promotional activities from filling stations . As the filling station is under
construction the hoarding are not yet installed . Stock is maintained to avoid the dry outs . No CANOPY
Location :
This filling station has many advantages with respect to LOCATION as this is located near many developing colonies .
In addition with regular customers there are other specific customers like 7 seater autos , college and school buses , and Fleet owners moving from Sec Bad to VIJAYAWADA and Sec Bad to NAGARAJUN SAGAR .
Filling station located around the developing areas like UPPAL , NAGOLE , UPPAL INDUSRIAL AREA So there is huge scope in the future .
Traffic management :
Petrol , Diesel , is available in this filling station 1 DU for Petrol , 2 DU’s for Diesel .
Competitor analysis :
IOC and BPCL got their filling stations near this HPCL filling station
GAP ANALYSIS :
Expected Current Gap
2 wheelers a. Salesman behaviorb. Q & Q assurancec. Good Traffic
managementd. Less process timee. Ambiancef. Air facilityg. Automationh. Locationi. Eye catchy filling
station
a. Q & Q assuranceb. Automationc. Locationd. Eye catchy filling
station
a. Good serviceb. Less process timec. Good Traffic
managementd. Ambiancee. Air facility
3 wheelers/
Commercial vehicles
a. Q & Q assuranceb. Salesman behaviorc. LPG/CNGd. Salesman-Customer
b. Employee motivationc. Promoting HP Fueld. Should be able to
make deals with large Fleet owners
e. Avoiding dry outsf. Making profits through
other services(ATM, Lubes)
a. Avoiding dry outsb. Making profits
through other services(ATM, Lubes)
a. Cleanliness of filling station
b. Promoting HP Fuelc. Should be able to
make deals with large Fleet owners
d. Employee motivation
SUGGETIONS:
Customer Segmentation – Fleet Owners , Driver sahbs and Humlog are the major customers visiting this filling station .
The first suggestion is to install the CANOPY and other infrastructure related works . The dealer involvement in promotional activities are good by giving cleaning cloths and
offering free mineral water for each customer . and he should also take the help of all promotional activities by HPCL .
Analysis made here may change as the bunk is still under construction , and many services are not at available , But according to forecourt salesman and other issues which are found during the survey saying the though it got established so recently it was able to capture good share of customers
SRINIVASA FILLING STATION - PEDHA AMBERPET
About the filling station :
Location : Towards Vijayawada Highway
Staff : 9
Products available : MS, HSD ,Lubes
Services provided : Air filling, Drinking water ,
Staff is working for 24 hours a day . and rest for 1 day .
No Hoardings .
Workers are not getting commission on sale of MS and HSD .
This is dealer owned filling station , so CANOPY
Observations :
Dealer is regularly available in filling station
Customer care with good hospitality is maintained this filling station
Credit is given to Fleet owners who visit regularly to this filling station .
There are promotional activities to increase the sales .i.e., giving cleaning cloths for filling full tank , free mineral water
Stock levels are regularly checked to avoid the dry outs in filling station .
This is a highway filling station , So major sales will be HSD , And MS sales are little better compared to other highway filling stations because of villages around the filing station .
Poor automation .
Customer Segmentation :
Highway raja Fleet Owners Next Gen Driver sahbs Walk in's Hum log Upwardly mobile
76%
11%
0%7%
0%6%
0%
Customer segmentation
Loyalty Cards :
I have the knowlegde but not using the service
I have the knowlegde and using the service
I have no knowledge about the service
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 0%
100%
Conclusions :
This is a highway filling stations and most of the customers will be fleet owners .
The MS sales are fixed can Dealer is saying that MS sales can not be improved as it is a
highway filling station .
Dealer is saying that HSD sales are very good because of good Quality and Quantity
maintenance .
Good relationships with customers gain more customers .
According to Dealer Amenities are not much effect the sales
As the most of the customers are fleet owners they do not have any idea about what are
the services provided by a typical filling station .
All they want is good quality of petrol .
Customers most of them are fleet owners they said they get satisfied if they provide
facilities like
a. Drinking water
b. Rest rooms .
c. Fleet cards .
This filling station is not providing any loyalty card for fleet owners .
Most of the customers visiting this filing station are Lorry drivers and Fleet owners , So
credit offers play major role in determining the sales , and rest rooms can be provided to
gain the customer satisfaction .
Fleet cards , as it is already the part of HPCL loyalty card program . It should be made
available to all fleet owners . This can be used to make the customer more loyal .
Rest rooms should be provided .
As most of the traffic is during the night , More lightening should be installed in the
filling station
Incentives need to given to FSM as they have more work during the night .
Dealer promotional activities should be made by giving credit to regular customers .
BRAND MANAGEMENT
Let’s start with …
Beyond DARKNESS there is LIGHT
Beyond PRACTICE there is PERFECTION
Beyond FEAR there is COURAGE
Beyond POWER there is RESPONSIBILITY
Beyond PATIANCE there is FULFILLMENT
Beyond CRISIS there is SOLUTION
Beyond DISEASE there is CURE
Beyond PAIN there is JOY
Beyond WINTER there is SUMMER
Beyond DARKNESS there is LIGHT
Beyond PETROLEUM ………
This is the advertisement given by British Petroleum . British Petroleum , one of
the best brands in the world and stood first in energy companies with brand value of 37 billion.
BP has tried to position itself as the greenest among the traditional big oil companies and has
invested US $8 billion in bio fuels and renewable energy in the last five years. Newly branded
products like Invigorate, an additive formula that helps clean and protect engines, and the Solar
Sail BP demonstration project in China, a science center powered by solar energy, have all
helped boost BP’s “green” perceptions.
Yes , FUEL is nothing but a commodity like rice , wheat , salt and water . It is really difficult to describe the benefits of a commodity like FUEL . So how can the brand can be built without explaining the benefits ? Here we discuss various other options to increase the BRAND IMAGE .
The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or
design, or a combination of them intended to identify the goods and services of one seller or
group of sellers and to differentiate them from those of other sellers.
The objectives that a good brand will achieve include:
Delivers the message clearly
Confirms your credibility
Connects your target prospects emotionally
Motivates the buyer
Concretes User Loyalty
A survey conducted revealed that 45% of the people in Hyderabad are not concerned about brand
while buying the FUEL . So there is large scope to bring the 45% consumers of FUEL under the
roof of HPCL brand in addition to already existing customers .
Factors determining the brand :
Offers and Loyalty Cards:
The Offers and loyalty cards given by HPCL are not less than any national or international oil
markets . But the implementation is the problem , the offers and schemes are reaching the
customers . 39% of people are ready to become loyal customers if the filling station provide the
loyalty cards .
There is no Loyalty card for MS users , though HPCL is providing some co-branded cards . So
there is huge scope to grab the MS customers .
More offers cannot be given as the margins in selling the fuel are decreasing , large money
cannot be spent on giving offers .
Even prices cannot be reduced to increase the customers because if price is decreased by 1%
there is a need to increase the sales by some 25% to meet the loss . So selling for less price is not
a great idea .
Quality:
From ages quality assurance is one of the dominating factor in creating the brand image .
But still , people believing the BPCL is the trusty brand for quality . So that quality campaigns need to be increased. The motto of the CLUB HP i.e., acha lagtha hai , need to be more popularized . BPCL giving fuel assurance with the logo PURE FOR SURE
BP the best brand of US tells that its filling stations are little better , and its green marketing gained its lost image by GOLF OIL SPLIT .
The above logo is for Filling station advertisement .
EXPERIENCE :
It is one more important factor determining the brand image of retail marketing .
Difference in Experience can be made by :
1. Appearance of filling station.2. Salesman behavior towards customers.3. Amenities provided.
HPCL filling stations are meant for their appearance. Compared to other Indian filling stations like IOC , BPCL and also reliance , HPCL filling stations are more attractive .
But, as the government is lifting subsidies on petroleum products and there is liberalization of Indian economy for foreign companies, there is a chance for SUPERMAJOR to enter into India , as India is next major marketer of every good for all developing countries .
So HPCL should be able to compete with global brands in giving service to customers. The amenities may also include convenient stores and coffee shops, HPCL is already with McDonald’s. But there should be separate brand for HPCL as BPCL has in&out as its own store . So that besides providing service to customer it also gain brand image to HPCL .
Co –Branding :
Co-branding, also called brand partnership, is when two companies form an alliance to work together, creating marketing synergy .
HPCL is already with many other companies , To deliver the many conveniences and services,
we have associated with leading companies like Coca Cola India, ICICI Bank, Fed Ex, Western
Union Money Transfer, Café Coffee Day, US Pizza, Skypak and many more. We are also
forging service specific alliances with several automobile companies and OEMs like Tata Motors
to jointly identify "Club HP" outlets, which could qualify as "Authorized Service Centers" for
leading automobile brands.
Think globally Act Locally
In Hyderabad about 63% of vehicle owners are going to local mechanic for their vehicle
servicing . And 16% of the vehicle owners believe in mechanics and their vehicle producing
companies in choosing their fuel brand .
Some of the conclusions from survey make to general public, Local Mechanics , Automobile
showrooms , Branded service stations .
about 63% of vehicle owners are going to local mechanic for their vehicle servicing.
16% of the vehicle owners believe in mechanics and their vehicle producing companies
in choosing their fuel brand .
Except CHEVROLET INDIA no other automobile brand recommending particular
Fuel Brand . CHEVROLET INDIA is recommending Bharat Petroleum as it has got
collaborated with BPCL .
97% of the local mechanics are agreed to recommend their customers with HP fuel if
they give benefits like training programs , T- shirts , Tool kits etc .
Though HPCL is in collaboration with TATA motors , no big showroom of TATA in
Hyderabad is recommending HP fuel to their customers .
99% of the customers are not aware of any co-branded cards available with HPCL .
Suggestions:
Co-branding with local mechanics is much more beneficial than with so called major
market players .
Collaborating with TATA motors and also with MARUTI UDJOG may help because
these two were the market leaders in India.
No 2 wheeler producer is recommending any fuel brand, so HPCL can have tie-up with
either Hero Honda or Bajaj to increase the MS sales .
Making all the co-branded services available to customers by increasing awareness
programs .
CHAPTER -5
SUGGESTIONS
Findings Mitigation Strategy
Dealers / officers are not always fully aware of a site’s potential
Many follow a localized approach to gauging sales - this may work in urban outlets but highways demand an overall network view
Dealers must be coached on how to determine potential sales at a particular site
A clear linkage must be established between improvement areas and sales potential to convince dealers of their importance
SOs must communicate this clearly to their dealers Site re-profiling to align with customer base
Sales officers have access to local trade area volumes and are cognizant of competition outlets
However current assessment of product, service and infrastructure availability of competing outlets is not currently being tracked in a formalized and consistent manner
Competitor site visit and analysis is a must for ODMT Diagnostics Assessment of HPCL sites as well as competitor sites on all improvement areas
is a must
Highway sites follow a very localized approach in targeting fleet customers
There is little or no collaboration between dealers, SOs and MOs across regions or zones
Cross regional and zonal collaborative approach must be taken to align with the customer’s way of doing business
DTP Card Enrollment Even in urban areas, sites can collaborate to offer a collective marketing
proposition or campaign
A number of outlets have facilities and services that are not being marketed in the appropriate fashion
Customer ignorance and lack of awareness deny the outlet of significant sales volumes
Several outlets have many facilities that could potentially draw more customers - there is a need for aggressive grass-root marketing
An “outside in” view must be taken by the sales officer to ensure that existing investments made at a particular site are being leveraged to the greatest extant possible
Suggestions to HPCL :
In Hyderabad BPCL has very good brand image for Quality and Quantity than others .
BPCL is little ahead of HPCL . Quality assurance should be made as the mission of
HPCL and campaigns should be made to give assurance for Q & Q .
‘Acha lagtha hai’ the tag line of Club HP should made as popular as PURE FOR SURE
campaign by BPCL .
Sales target should be given to all dealers based on their previous performance and their
competitors performance .
Reasons should be found for low performance of filling stations and measures should be
taken to increase the sales .
Fillings stations should be categorized based on the segmentation of customers running
into the filling station .
Amenities should be provided based on the type of customers coming to particular filling
station .
Regular training programs should be conducted for both dealers and employees to
motivate them to increase the sales.
Fleet cards and other loyalty cards should made available in all filling stations .
Marketing campaigns should be made to sell loyalty cards , because the loyalty cards are
not using by customers not because they are not interested but they are not aware of the
loyalty cards .
Location is playing the huge impact on sales .So , location analysis should be made
before installing a new filling station .
HPCL has good market share of MS but did not have good share of HSD . So it is clear
that fleet owners are not properly taken care of . This can only be achieved by attracting
fleet owners and commercial vehicle owners .
For MS users , mainly customers from urban and suburban areas can be attracted by
giving them different filling experience by providing good amenities .
Co-Branding which is also playing role in sales should be concentrated as BPCL is doing
with CHEVROLET for promotion of their fuel .
HPCL is doing its Co-branding with TATA motors , but no TATA showroom or service
center in Hyderabad is recommending HP fuel . So steps should be taken to increase the
help from Co-branding .
Company – Dealer relationship should be improved by having few events , offering gifts
and complimenting the good performance .
Designing the infrastructure such that all HP filling stations give the same experience .
Hoardings should be made attractive and visible to customers .
There should be an online monitoring system in all the outlets to know the stocks of
products which will be helpful in avoiding dry outs .
Co-branding with local mechanics is much more beneficial than with so called major
market players .
No 2 wheeler producer is recommending any fuel brand, so HPCL can have tie-up with
either Hero Honda or Bajaj to increase the MS sales .
Making all the co branded services available to customers by increasing awareness
programs .
SUGGESTIONS TO DEALERS :
Mission of the business need to be changed from profit to service , and respect towards
the customer should increase by the dealers . Only then the profit and growth will be the
constant happening to them .
Salesman is the medium between the service and the customer . If he is not willing to be
good the service will not reach the customer completely . Dealer-salesman relation plays
a major role in sales . Separate compensation package should be made to salesman to
motivate him .
Salesman should be trained not only technically but also in terms of basic salesman
skills.
Credit should be given to regular customers particularly to fleet owners , which will be
the major factor for MS sales .
Should made use of all the facilities provided by HPCL like loyalty cards , Hoarding ,
and other amenities .
Dealer and Dealer should responsible, innovative in various promotion techniques of
outlet and products, motivate the salesmen in the outlet.
Dealer should maintain good relationship with regular customers by maintaining a
database (name, age, sex, occupation, mobile number, email id etc) and inform customers
your promotion offers through SMS and emails.
The customer’s database should be segmented based on age, occupation and various
other factors and promotion offers should be informed.
As advertisement in media, hoardings and various other promotion activities can’t sell a
product they just give awareness and persuading the customers about the product finally
the behavior of forecourt salesmen towards customers is the reason for sales of product in
the outlet.
Salesmen are working for long hour’s i.e; 12 and 24 hrs standing in the outlet. So, the
working hours should be reduced to 8-9hrs by employing more number of salesmen.
The fore court salesmen should know all the information (benefits, working, customers,
automobile showroom, service centers feedback)
A procedure should be followed by fore court salesmen while suggesting customers about
filling the fuel.
Fore court salesmen are willing to achieve their sales target when incentives are given on
daily basis.
Salesmen should give sales targets and incentives are given on daily basis to motivate
them to work more.
Some news headlines (flash news) and stock marketing news are displayed through
digital screen in the outlet at the same time promotion of HP fuel can be made .
