PETROLEUM INDUSTRY OF INDIA Introduction: Petroleum Industry is considered to be the back bone of an economy because this is the main source of energy. Any economy around the world would fail to proceed a single step in the absence of Petroleum Industry. The most important part of the Petroleum Industry is the Petroleum Refining Industry which refines the crude oil to convert it to the usable fuel. It also derives many derivative products out of the crude petroleum like natural gas, naphtha, etc which can be used in various ways. Thus, before using this energy source, the crude petroleum is required to be refined in the petroleum refineries for extracting various fractions for energy generation namely, petrol, natural gas, kerosene, asphalt and many more. Over the years Indian Petroleum Industry has played an influential part in triggering the speedy expansion of the country's economy by contributing 15% in the total GDP. Further to this, petroleum exports gave new dimension to foreign exchange earnings by drawing US$ 23.64 billion in the FY 2008-09. Pre Globalization, The Indian Petroleum Industry was entirely state sponsored and was under the management control of all the industries involved in it were entirely with the government. After the inception of the Liberalization- Privation-Globalization (L-P-G) policy in the month of July, 1991, the government had started allowing the Indian Petroleum Industry to go into private as well as government-private joint ventures. The deregulation process in the Indian Petroleum Industry got a boost in the year 1997 when it was
Transcript
PETROLEUM INDUSTRY OF INDIA
Introduction:
Petroleum Industry is considered to be the back bone of an economy because this is the main source of energy. Any economy around the world would fail to proceed a single step in the absence of Petroleum Industry.
The most important part of the Petroleum Industry is the Petroleum Refining Industry which refines the crude oil to convert it to the usable fuel. It also derives many derivative products out of the crude petroleum like natural gas, naphtha, etc which can be used in various ways. Thus, before using this energy source, the crude petroleum is required to be refined in the petroleum refineries for extracting various fractions for energy generation namely, petrol, natural gas, kerosene, asphalt and many more. Over the years Indian Petroleum Industry has played an influential part in triggering the speedy expansion of the country's economy by contributing 15% in the total GDP. Further to this, petroleum exports gave new dimension to foreign exchange earnings by drawing US$ 23.64 billion in the FY 2008-09. Pre Globalization, The Indian Petroleum Industry was entirely state sponsored and was under the management control of all the industries involved in it were entirely with the government. After the inception of the Liberalization-Privation-Globalization (L-P-G) policy in the month of July, 1991, the government had started allowing the Indian Petroleum Industry to go into private as well as government-private joint ventures. The deregulation process in the Indian Petroleum Industry got a boost in the year 1997 when it was decided that the process of liberalization and deregulation would be accelerated in this industry and all the regulations would go away from the month of April in the year 2002.
Indian petroleum retail market:
Expansion of Indian petroleum retail market is triggered by the growth in automobile sales that resulted in major foreign investments. The growth is estimated to sustain and the market is likely to expand further by 20 million every year till 2030, placing India at the world map in terms of being the biggest automobile market.
Accordingly, the petroleum dealers Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Indian Oil Corporation in collaboration with each other are looking forward to add 2,262 petrol pumps in India by 2010.
The key players in petroleum industry:
The Indian Petroleum Retail market is a monopolistic one, where the PSUs (viz. IOC, HPCL, BPCL) with various subsidies from the government are functioning in the market. In 2005, private industry started PAN India operation. These private firms were Reliance Petroleum Ltd, Essar Oil, Gulf India and Shell India. But, with the high prices of their products and competition with the well establish PSUs these firms were not able to perform well and were incurring losses. Today, though the private firms are struggling very hard for their survival; the PSUs remain the sole leader in the Petroleum Retail Market.
Market Share of Major Players:
50.00%25.50%
23.00%
1.50%
Market share
IOCLHPCLBPCLOthers
PRE-GLOBALIZATION ACTIVITIES
Pre Globalization, i.e. pre 1990; the Indian Petroleum Retail Market had only 3 players and all the players were state sponsored by the Government of India. And these firms were functioning in a monopolistic as the government policies did not allow other private players to enter the market. The prices and the policies were decided by the government only and not much attempts were made to improve or upgrade the services, or capture the customers. But after 1991 the policies were changed and the private investments were allowed. In the Pre-Globalization era being a monopolistic market, the companies were involved in marketing only to attract investors and not to promote their product.
POST-GLOBALIZATION ACTIVITIES
The Post-Globalization of the Indian petroleum industry started from the early 1990s. After the market was deregulated, various factors led petroleum companies to focus on marketing initiatives like never before. The case examines these marketing initiatives
focusing particularly on the introduction of branded fuels in the early 21st century. The concept of value-added fuels and the marketing support on part of the companies (in terms of product development, promotion and distribution) have been explored in detail. In this era the companies focused on the prospects of these new brands with reference to the problems related to product usage, pricing and the intensifying competition. In the early 21st Century the Government of India allowed the private firms to start their PAN India operations (PAN stands for "Presence Across Nation".) PAN India Presence simply means when that one is operating at many places in India. The firms like the Reliance Petroleum Ltd., Essar Oil, Gulf India Ltd and Shell India Ltd. started their operations. Though their prices were high as compared to the well established PSUs; but their marketing and their policies help them to capture their large amount of market share. This made the PSUs to rethink on their strategies so that they retain the market share. Thereof there was a drastic change in their marketing strategies which were at par with the other private players. The new Marketing Strategies adopted by the PSUs were not only meant to retain the market share but also to increase the market share.
HIGHLIGHTS IN THE PETROLEUM SECTOR DURING 2008-09
• India has total reserves of 775 million metric tonnes of crude oil as on 1.4.2009• The total number of exploratory and development wells and metreage drilled in
onshore and offshore areas during 2008-09 was 381 and 888 thousand metres respectively.
• Crude oil production during 2008-09 at 33.51 million metric tonnes is 1.79% lower than 34.12 million metric tonnes produced during 2007-08.
• The refining capacity in the country increased to 177.97 million tonnes per annum (MTPA) as on 1.4.2009 from 148.968 MTPA as on 1.4.2008.
• The total refinery crude throughput during 2008-09 at 160.77 million metric tonnes is 2.99% higher than 156.10 million metric tonnes crude processed in 2007-08 and the prorate capacity utilisation in 2008-09 was 107.9% as compared to 104.8% in 2007-08.
• The country exported 36.932 million metric tonnes of petroleum products against the imports of 18.285 million metric tonnes during 2008-09.
• The sales/consumption of petroleum products during 2008-09 were 133.400 million metric tonnes (including sales through private imports) which is 3.45% higher than the sales of 128.946 million metric tonnes during 2007-08.
• The total number of retail outlets of Public Sector Oil Marketing Companies as on 1.4.2009 has gone up-to 35066 from 34101 on 1.4.2008.
• The number of persons employed (including contract employees) in petroleum industry reached 139823 in 2008 and is 138973 in 2009.
THE MARKETING STRATEGIES:
• The Launch of Branded Fuels
In July 2002, Bharat Petroleum Corporation (BPCL), one of the leading players in the Indian petroleum industry, launched premium grade petrol under the brand name, 'Speed'. This was the first instance of an oil company launching branded fuel in the market. Soon, the two other leading oil companies, Indian Oil Corporation2 (IOC) and Hindustan Petroleum Corporation Ltd. (HPCL) also launched their own 'new generation' fuels. While IOC's branded petrol was called 'Premium,' HPCL called it 'Power.' IOC and HPCL also launched branded diesel called 'Diesel Super' and 'Turbo Jet' respectively. In December 2002, another company, IBP, launched a new brand of premium grade petrol 'Josh' and a premium grade high speed diesel, 'Shakti'. Within a short span of time, the country had seen the emergence of an entirely new market category.
As the industry became more competitive and customer-driven, companies needed to focus like never before on marketing strategies. The first significant development in this direction was the 'conversion' of petrol pumps (gas stations) into retailing outlets. The launch of branded fuel seemed to be the next logical step for the companies...
• The Need for Branding Petroleum Products
BPCL pioneered the petrol pump retailing revolution in the country and was the first company to establish retail outlets in a major way. HPCL and IOC also opened stores within their outlets and positioned them as a 'one-stop retail shop'. While BPCL used the brands 'In & Out' and 'Pure For Sure', HPCL and IOC named their outlets, 'Club HP' and 'Convenio' respectively...
• Building the New Fuel Brands
Having realized the need for brand-building, oil companies invested 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. BPCL's Speed was blended with multifunctional additives sourced from Chevron Oronite Company LLC, a ChevronTexaco company.
• The Promotional Efforts
The maximum 'action' in the industry was seen on the promotional front. All the companies were adopting various media mix tools to promote their brands. BPCL launched a promotion scheme for Speed, under which anyone buying fuel worth Rs 600 or more got a free BPCL Petro Card. The company also gave its dealers better incentives to sell the new fuel. A survey conducted revealed that 44% of customers were influenced by people at the petrol pumps, who convinced them to use Speed.
HPCL
Introduction:
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 25% 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 of 8.3 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. Presently HPCL produces over 300+ grades of Lubes, Specialities and Greases.
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. 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.
HPCL Marketing Network:
Marketing Network of HPCL 2008-09 2007-08 2006-07 2005-06 2004-05
At HPCL retail outlets, they believe in maintenance. Maintaining not just the vehicle, but a steady relationship with the consumer. And to do so, HPCL provide better and efficient services. They take care of not only the fuelling needs, but also complete vehicle care. They stock related products like tyres, batteries and accessories, so the customers don't have to go shop-hopping. All other value-added services ensure that the customers vehicle is well looked after. And while HPCL share the customers concern for their vehicle, HPCL also value the customers time and conveniences that allow to carry out their banking activities, make important calls or send an e - mail, and even shop for essential grocery items. Complete attention for the customer and vehicle at one stop.
Types of retail outlets:
COCO Retail outlet –
COCO retail outlet means Company Owned Company Operated retail outlets. COCO
retail outlets are owned and operated by the HPCL officials themselves.
Dealership Retail Outlet (Petrol Pump)
The process of setting up of a dealership starts with the release of an open advertisement in the newspapers informing the locations where HPCL proposes to set up Retail Outlets. Interested candidates, meeting the stated requirements, are required to apply in the application form, as per the details given in the open advertisement. The applications are scrutinized, interviews are conducted and the successful candidate is selected.
a) Club HP
High - quality personalized "Vehicle and Customer Care"
A part of HPCL's strategic retail marketing initiative that seeks to break out of traditional fuel retailing, new Retail Brand "Club HP" assures high - quality personalized "Vehicle and Consumer Care" through a selected set of outlets.
COCO Dealership
Club - HP General
Developed after an exhaustive research of over a year which included collecting feedback from over 13,000 respondents in several key markets across the country, the "Club HP" concept aims to provide the assurance of “Quick Fills", "Expert, Personalised Service", "Total Vehicle Management" and "Consumer Conveniences".
While designing the bouquet of services for Club HP outlets, HPCL have relied upon the feedback received directly from consumers. They realize that consumers are highly conscious of the fuel that goes into their vehicles - each “Club HP” outlet carries the assurance of HPCL’s ‘Good Fuel Promise’ and delivers the right quality and quantity of the products on offer. Fuel is delivered to these outlets in tank trucks fitted with tamper proof locks and a high degree of control is kept by the HPCL staff to ensure that quality standards are strictly enforced.
To deliver the many conveniences and services, they 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. HPCL is also forging service specific alliances with several automobile companies and OEMs like Tata Motors to jointly identify "Club HP" outlets, which could qualify as "Authorised Service Centers" for leading automobile brands.
The roll out of "Club HP" began in a phased manner, initially targeting 85 outlets in the cities of Mumbai, Delhi, Bangalore and Kolkata. Encouraged by the initial experience, the “Club HP” brand has been quickly expanded to cover over 1000 outlets in all major cities and towns across India. The distinctive red and blue Club HP logo is an all too familiar symbol inviting motorists looking for a quick and refreshing fuelling experience.
"Club HP" outlets are categorized as Standard, Mega and Max depending on the levels of services and amenities available. Each outlet will offer a bouquet of standardized services to consumers, depending upon market requirements and logistical abilities.
Vehicle Care - The Club HP outlets have been carefully selected to ensure that they can offer high quality vehicle care. Each Club HP Mega and Max outlet is equipped with a service station. In addition, the outlets will also provide vehicle consumable and accessories, all under one roof. More and more outlets will progressively upgrade to “Authorised Service Stations” as part of our association with various vehicle manufacturers.
Quick Care Points - Consumers are offered a free check up of vital elements such as engine oil, brake oil, battery water, coolant, fan belt, radiator hose etc. by the specially trained "Club HP" attendants. In addition, a quick inspection of the tyres is done and recommendations given in case any immediate action is required.
Digital Air Towers – The performance and safety of new generation cars depend a lot on the correct air pressure maintained in the tyres. The specially designed digital air pressure equipment not only ensures accurate air pressure in the shortest time but also adds to the comfort and safety of travel.
‘Good Fuel Promise’ Towers - Consumers are offered the facility to personally conduct simple tests with the help of specially designed standard apparatus. A simple procedure booklet is also provided to help anyone check the quality and quantity of fuel. The consumers are also invited to fill in the printed certificate booklet which will be available at all "Club HP" outlets in order to record their assessment. This feedback is regularly screened by the HPCL team to plan remedial actions or service upgrades in accordance.
Vehicle Finance and Insurance Related Counsel - HPCL has tied up with leading vehicle insurance and finance service providers for these activities which include assistance towards issuance and renewal of policies as well as extension of loans for purchase of new or second hand vehicles.
ATMs - HPCL has taken the lead in providing ATM facilities at its outlets in association with leading banks and is targeting over 400 ATMs very soon. Select Club HP outlets have already been equipped with ATMs.
Bills Payments - HPCL has tied up with Skypak Financial Services which is providing "Drop boxes" at all "Club HP" outlets in a phased manner. Consumers can utilize these drop boxes to pay bills relating to a variety of service providers. All one has to do is drop the bill and payment instrument (Cheque / Demand Draft) for the designated service provider and Skypak will route the same to the correct destination…at no extra cost.
Communication Facilities - Each Club HP outlet is equipped with a pay - phone for the convenience of consumers. In addition, select outlets will also provide high speed internet browsing and e - mail facility.
HPCL - ICICI co - branded Credit Cards and the Club HP Smart1 Cards - Customers visiting the "Club HP" outlets will be able to use the HPCL - ICICI Credit Cards to reap the higher reward points offered by this unique product. The "Club HP Smart 1", a smart card based loyalty program launched for the cash paying customers, will also be available at select Club HP outlets to reward loyal Club HP customers.
Basic Amenities - Each "Club HP" outlet will extend basic amenities such as "safe drinking water" through water purifiers, hygienic rest room facilities, food counters, basic medicines and first aid facility. HPCL has also tied up with Coca Cola India to provide beverages and bottled water as well as snacks at all "Club HP" outlets.
7P’s of HPCL:
1. Product:
Products at HPCL retail outlets:
Petrol
Diesel Power Turbo Jet CNG HP racer-2 low smoke HP Racer 4 HP extra super motor oil 20W-40 HP Milcy toofan 15W-40 HP Milcy 30,40,50 HP Laal Ghoda 20W-40 HP Super Duty Brake Fluid DOT-4 HP Gear Oil HP Multipurpose Grease Petrol Pump Dealership
Sources of the fuels:
HPCL gets all its products from Sewree installation situated in Sewree, Navi Mumbai.
Quality and Quantity Check:
Sample check of each product after receiving the orders.
Density check: Verification of density of product sample
Purity check: TT retention sample
Prices of fuel decided by the government
2. Place
Identification of LocationsLocations for setting up Petrol/Diesel retail outlets are identified
by HPCL after carrying out required feasibility study and commercial viability of the area where the retail outlet can be set up.Under Explosives Act, 1884Retail outlets to have valid Explosive License from the Controller of Explosives for the storage of petroleum products.Display of current Explosive license, duly approved, obtained from controller of Explosives along with approved layout plan to be displayed on soft board inside showroom.The facilities at the Retail outlet to be strictly as per the plan approved by Explosives department.
The distance between the two HPCL retail outlets is decided by the ministry of surface transport and the PETROLEUM MINISTRY..... the approximate distance should be 0.5km to 1km.
3. Promotion
Advertisement boards, banners, pamphlets, posters etc., to be displayed at designated place only and shall be removed immediately after closure of campaign.
Advertisement boards, banners, pamphlets, posters etc., not to be Painted/ Displayed/ Pasted anywhere in Retail outlet premises or on external surface of compound wall, except for HPCL promotional campaigns as directed by Area Sales Officer.
4. Physical Evidence:
The "Club HP" concept also recognizes the fact that the consumer today places very high importance on vehicle care and at the same time expects other value added services from a fuel retail outlet that help him take care of diverse activities under one roof and in the shortest possible time. The Club HP outlets provide a distinct set of basic and value added offerings which include "Efficient & Expert Service", "Quick Care Point", "Digital Air Towers", "Vehicle Finance and Insurance related assistance", "Bills Payment facilities", “Refreshments”, "HPCL - ICICI Credit Cards", "Club HP Smart 1 Cards” and a host of other amenities.
Equipments:• Dispensing Units (DU)• Underground Storage tanks• Diesel generator sets• Electrical connection• Electrical panel/distribution board• Hoardings• Signage’s• invertors• driveway• vapour recovery system(VRS)• solar power system• Stamps, documents, files etc.
Retail Automation:• TLS (Tank Level System)• Auto Tank Calibration (ATC)
Loyalty cards:• Drive Track Plus
• Credit-Debit cards• i-mint
Health safety and environment:• Safety boards• Dry sand buckets• Fire extinguishers• First aid box
Facilities:• Clean and hygienic drinking water• ATM facility• Office cabins• Western Union money transfer
Customer care:• Air facility• Uniform standards – proper dress code
5. Process
Process of retail outlet in a day:Shift opening
Sale transaction process i.e. product/service delivery process:Entry of the customerGreet the customer, in case of 4-wheeler passenger vehicle come over to drivers side of vehicle to greet the customer.Request the customer to switch off the engine.Enquire about the required product.Prompt for the branded fuel,whenever applicable.Prompt for tank full Ascertain quantity of fuel requiredRequest for opening the fuel tank lid in case of
6. People
HPCL plans rural push, to open 1,250 Hamara Pumps in 5 years
Kolkata: Oil major Hindustan Petroleum Corporation Ltd is planning to roll out 1,250 petrol pumps in rural areas in the next five years entailing investments above Rs 312 crore.
Arun Balakrishnan, HPCL chairman and managing director, on the sidelines of the 28 th annual national conference of the National Institute of Personnel Management, said: “We will roll out 250 petrol pumps in rural areas every year for the next five years.” Setting up each petrol pump would cost around Rs 25 lakh and will be named as Hamara Pump, he added.
Currently, HPCL has 1,500 retail outlets in rural areas, which fetches around 25% of their total revenue from retail business. Balakrishnan said increasing the number of petrol pumps in rural areas would help them increase their retail market share while increasing the percentage of revenue from rural operations as well.
He said the detail project report (DPR) for the 15million tonne per annum capacity refinery in the west coast of India was being prepared and the company has already asked the Maharashtra government for 3000 acres.
HPCL, which has 7.5mt refinery at Vizag in Andhra Pradesh, wants to set up a 15mt refinery at an investment above Rs 25,000 crore in between Mumbai and Goa. HPCL jointly with Laxmi Mittal is also setting up a 9 mt refinery at Bhatinda in Punjab
For strengthening the new agribusiness needs and contributing towards rural development, Hindustan Petroleum Corporation (HPCL), in accordance with the liberalisation of the economy and the opening up of the oil and gas sector, has conceptualised path-breaking strategies to cater to the diverse needs of approximately 74 crore rural consumers.
'Hamara Pump' is a low-cost model pump set up over an area of around 900 square metres with a sales room building, telephone, drinking water, and clean toilet and air facilities. These pumps are established in and around villages with good agricultural demand. 'Hamara Pumps' have basic facilities for dispensing fuels and lubricating oils. To further supplement rural needs, HPCL has developed a concept of a 'Kisan Vikas Kendra' as extension of the 'Hamara Pump' with additional facilities catering to agri needs. It provides a one-stop-shop solution to rural consumers.
Latest news updates:
Diesel price to be decontrolled in due course: Deora New Delhi, Nov 1 : Petroleum Minister Murli Deora Monday said the government is considering decontrolling diesel prices and asserted that freeing of petrol prices and raising of diesel prices have not hampered the automobile industry.
Hpcl quotation……
The road is clear. Neon signs whiz past in a blur. The hour is late. But there's still lots left to do... Cash to be withdrawn, grocery to be bought, a quick e - mail, unleaded petrol...
There's only one place to do it all. You make the stop. Glad that effeciency does not end at nine. You strike out the last item on the 'To do' list. Onto the home stretch. The HP petrol pump quickly fades away from the rear view
SUGGESTIONS FROM CUSTOMERS FOR IMPROVEMENT
Petrol price should be less.
More design customer service.
Pricing strategies.
The petrol pump are becoming congested due to traffic, they should have large area covered with roofs to protect from sun and rain.
Open new outlet in kalian at shivadi.
More customer satisfaction required.
Clean rest rooms.
Low price for fuel.
More importance to traffic at peak has.
Important in terms of service.
Training should be conducted for those who provide service at fueling station.
Cleaning staff available for 24 hrs. as many petrol pump have 8 hrs.
Should have washroom facilities specially seprate for ladies.
Provide quick service in the evening because in evening there are so much of crowed there.
Treatment with customer should be good and petrol quality should be best quality.
Satisfied all the services.
Giving more benefit to customer as free air, cleaning glass, ATM centers.
Set up more pump in number.
Set up branches in different location.
Some petrol pump are not spacious enough to accommodate the arriving vehicles.
Should be an frequency in supply.
Provide good quality and quantity fuels to customer.
Full tramparancy.
CONCLUSION
Though the Petroleum retail market is a monopolistic one, but in post globalization the companies observed and realized the importance of grabbing the market share. The reason to this was not only the private firms entering the market but also the disinvestment in the PSUs (which led to private investment) made the market a competitive one. Today the Petroleum Retail Companies are fighting hard to capture the major market share and to increase their wealth. They have adopted modern marketing strategies and are working on improving their services and products. Though these PSUs are enjoying the subsidies by the government, but soon the prising of the petroleum products would be out of the government hands and the private companies would re-enter the market and a more competitive environment. And the PSUs must prepare themselves to handle the global competition.
For this we feel that the following polices should be adopted by the companies:
• To attract private investment in exploration.• The government should dismantle Administrative Pricing Mechanism (APM) in
phased manner.• Must keep improving their services.• Must increase their product width.
Bharat Petroleum India Ltd
We are a leading energy company with global presence sustained aggressive growth and high profitability
We are the first choice of customers, always We exploit profitability growth opportunity outside energy We are the most environment friendly company We are a great organisation to work for We are a learning organisation We are a model corporate entity with social responsibility
History-
The 1860s saw vast industrial development. A lot of petroleum refineries came up. An important player in the South Asian market then was the Burmah Oil Company Ltd . 1928 Asiatic Petroleum (India) joined hands with Burmah Oil Company - an active producer, refiner and distributor of petroleum products, particularly in Indian and Burmese markets. This alliance led to the formation of Burmah-Shell Oil Storage and Distributing Company of India Limited. On 24 January 1976, the Burmah Shell Group of Companies was taken over by the Government of India to form Bharat Refineries Limited. On 1 August 1977, it was
renamed Bharat Petroleum Corporation Limited. It was also the first refinery to
process newly found indigenous crude Bombay High, in the country. Today Bharat Petroleum Corporation Limited has got three refineries at Mumbai, Kochi and Numaligarh. They are also on the verge of commissioning another refinery at Bina in Madhya Pradesh in 2010.
7P’s of BPCL Retail outlets:
1)Product-
Bharat Petroleum produces a diverse range of products, from petrochemicals and solvents to aircraft fuel and speciality lubricants and markets them through its wide network of Petrol Stations.
Speed Automative engine oils Gear oils Superior kerosene High speed diesel oil Light diesel oil
Specially oil of grease Smart fleet Bharat gas CNG-
CNGIn the next millennium, alternative fuels like Compressed Natural Gas (CNG) and Liquified Petroleum Gas (LPG) would be increasingly used in automobiles. Mumbai already has over 10,500 private cars/taxis that run on CNG and in Delhi,all public transport runs on CNG.
Car manufacturers have been conducting tests on their vehicles, using LPG/CNG - both in dedicated and bi-fuel modes. While these fuels will not totally replace petrol and diesel, they may be targeted for use in particular segments, like commercial and public transport vehicles.
Diesel was for a long time considered eco-friendly because it is more fuel-efficient than petrol i.e. 15-20 percent more mileage than one litre of petrol. But the 1990s have seen diesel being increasingly acknowledged as extremely detrimental to health and environment. Experiments have revealed that besides a very tiny - one micron or less, which are injurious to health.
Recognising the gravity of the situation, authorities are intensifying the thrust on use of alternate fuels like CNG and LPG which besides being less hazardous, are cost-effective
2) Price –
MS.petrol-58.72
HSD-42.94
Diesel-43.93
Speed-58.69
CNG-31.47
Speed 97- Its not available at all retail Outlets as it is 6Rs more than other fuels and it is mostly available at BKC & Peddar Road Areas where Imported cars come for fuelling and do prefer for this product.
Prices are decided according to the government. Rate changes once or twice a month.
3) Place
Every year management of every PSU gather with petroleum ministry & talk about future plan & budget. They first decide place & then give the Ad.interview of applicants. Location of outlet is decided by the company only. Distance between outlets is decided by ministry surface transport. Minimum distance is kept as 1 to 2 km.
4) Promotion-
To gain mindshare and market share, Bharat Petroleum Corporation Ltd (BPCL) is chanting a new marketing mantra: Fuse online marketing plans with offline advertising. To promote its new launch Speed, the company has lined up a slew of marketing tie-ups in the next few months, according to BPCL general manager (retail) Mr S Ramesh.
For starters, BPCL has become the first Indian company to be an ‘associate sponsor’ to telecast the Formula 1 2003 races on ESPN Star Sports, starting with the Grand Prix of Monaco in Monte Carlo on June 1, 2003,. The association would be for the next 10 races till the last race of the season in Suzuka, Japan.
“In continuation of our overall brand strategy, BPCL has identified Formula 1 motor sport as a key passion to be associated with for our brand Speed. Formula 1 racing in India has been gaining popularity and the viewership numbers for it have been,” he says.
As part of the strategy, BPCL has rolled out a television commercial, which is being aired on ESPN Star Sports from June 1, 2003. “The TVC shows the evolution of a normal car into a Formula 1 race car. Drive your Dream with Speed, the high- performance petrol from Bharat Petroleum,” Mr. Ramesh adds, Incidentally, BPCL’s digital marketing partner, Hungama.com has designed this commercial. Call it the convergence of multi media-communication strategy.
According to Mr. Ramesh, with the launch of this TVC and association with a high passion sport as Formula 1 racing, Speed has once again raised the bar for its peers in the category.
The company plans to tie-up with other sports channels and programmes soon. “We also plan to tie-up with popular movies to integrate offline events with online marketing plans like our tie-up with James Bond movie a few months ago,” adds Mr. Ramesh.
According to Mr Ramesh, Speed has in the past been actively associated with passions akin to its users, be it fast-paced action movies such as James Bond’s Die Another Day or first of its kind motor racing events like Speed Run 2003. “And now with Formula 1, Bharat Petroleum commits itself to furthering this sport and its interest among consumers in India in the years ahead,” he adds.
To promote its new launch Speed, BPCL rolled out an integrated marketing package which included online promotions, outdoor, print and television advertising and mobile promotions.
BPCL's LUBRICANTS PORTFOLIO
Article Abstract:
Bharat Petroleum Corporation Ltd (BPCL) has drawn up various strategies and initiatives for
lubricants. The company desires to position itself as an innovative, reliable and caring
company. BPCL is working towards improving its automotive lubricants portfolio. It is
focusing on developing its engine oils brands which it will support with an extensive
communication programme, development of point of sale material for sales and outdoor
promotion and a clear focus to seek dealer involvement so as to increase volumes. BPCL is
focusing on names, packaging and products to build long term brand loyalty. Its brands are
Automol for engine oils for cars; MAK which are engine oils for diesel vehicles; Glide which
are engine oils for two wheelers; Autochamp which are engine oils for autorickshawas and
Spirol which are gear oils for all vehicles. BPCL has improved the formulations of its multi
grade 20w/40 for the Automol and MAK Silver Grades and has launched a very superior
MAK 940 Red dyed formulation of MAK Gold. BPCL has segmented its engine oils into
three level series of silver, gold and diamond based on their performance levels. BPCL also
plans to improve its other business areas which include Industrial oils, auto specialties and
automotive and industrial greases.
5)Physical evidence-
Building a Vibrant Highway Assurance Network is an integral part of BPCL’s Retail Business strategy. This envisages putting in place a High Assurance Network, the goal of which is "Assurance" to the Highway Traveller which includes the Truckers and Tourists.
Assurance would mean offering: Personal Solutions, Journey Solutions, Business solutions and ensure consistency in Deliverables, Offerings and facilities.
The network consists of :1) New Generation OSTS (One Stop Truck Shops) and OSTTS (One Stop Tourist cum Truck Shops) branded as GHAR Outlets.2) Ramped up dealer operated outlets and new ROs on the Highways branded as Highway Star Outlets.
The unique aspect of this generation of OSTSs/OSTTSs is that the concept, design and proposition build–up are totally developed in-house and are manualised end to end. The GHAR outlets are built on a minimum plot size of 3-5 acres and are manned by an officer
of the company.
Concept BPCL GHAR - For the ‘Trucker and Tourists’ ‘Home away from home’ BPCL GHAR is one stop trucker’s shop proposition with multi-facility retail outlet with all the comforts to meet the ‘Trucker and Tourists’ needs and convenience. These outlets are located on all major highways across the country. There are dedicated BPCL officers at these outlets and who offer the ‘Trucker and Tourists’ personalized service all through the day with host of facilities; hence the drivers call it ‘Home away from home’.
At the GHARs, customers can experience many convenient facilities like dhaba services, secure parking space, essential items store, emergency assistance, Doctor, Messaging service, Smart Route assistance and many more at all the 60 outlets as on date and many more will be operating shortly.
Pure for Sure Fuel:-
Fully automated MS/HSD Fuelling.
Captive power generation. Smart Card Customer
Care Centre. Secured and Spacious
parking. Vehicle wash facility.
NON FUEL
Dhaba for Truckers. Food Court for Tourists. Rest Room (Dormitory)
with 30 beds for Truckers.
Saloon, Laundry, Tailor and Kirana shop.
Dedicated toilets for Men, Women and Physically handicapped.
Houda Facilities for Truckers.
Bathing Facilities. Children's play park. Amphitheatre for
entertainment. Health care centre. Sanjha Chulha for self
cooking.
All the GHARs offer the customer guaranteed quality & quantity of fuel and are PURE FOR SURE. So customers can set aside their worries about compromising on the quality and quantity of fuel!
Secure Parking:-We understand that it is very important to secure customer’s loaded trucks . That is why at GHARs provide the customers with a safe parking space. That too, absolutely free! Customers can rest aside their worries for loaded trucks while their driver eats, sleeps or shops with us.
Shop, Eat or Simply Relax:-‘Trucker and Tourists’ can avail of many more convenient facilities. They can eat hygienic food at the Dhaba at extremely affordable prices! They can even sleep and relax in the resting cots; bathe and refresh themselves if they wish to. In fact, they can also shop for essential items like toiletries at these outlets.
Health Care Facilities:- At selected BPCL GHAR, drivers are provided with free medical consultations for minor problems at select outlets during certain timings. They can also benefit from first-aid medication at the BPCL GHAR outlets whenever the requirement arises. To complement this facility which are in remote area we have launched innovative telemedicine services by name “Sanjivani” at selected GHARs. With this proposition customer would not be required to search for a medical assistance while on the highway, we are there to serve them with world class consultancy and advisory service from one of the best hospital in India
Emergency Assistance:-With BPCL GHAR, drivers need not worry about unforeseen emergency situations. In case an emergency does arise, we have arrangements to provide the ‘Trucker and Tourists’ with assistance like Auto electrical, automobile mechanic, crane, ambulance, insurance agent and even RTO assistance.
SmartFleet Dak Service :-Today contacting the driver by the SmartFleet customer while he is on the move has become very easy. They could simply send him an email message through the SmartFleet Dak service, which is presently available at select BPCL GHAR outlets. There are GHAR staffs waiting to help them with this facility. The drivers can also contact their transporters through email from these outlets.
Smart Route Assistance: While on the highway it will be easy to find your route to any place henceforth. With Smart Fleet Route Service all the GHAR are equipped with an e-atlas of India, where from they can help the customers reach their destination with precision of district level roads. They can avail host of information like the name of the place from the pin code, location of important spots etc from this e-atlas provided at the GHARs. BPCL GHAR today introduces to the ‘Trucker and Tourists’ lot many benefits and opens a new world of convenience to them!
For the Trucker and Tourists a home away from home
BPCL GHAR is one stop trucker's shop proposition with multi-facility retail outlet with all the comforts to meet the Trucker and Tourists needs and convenience. These outlets are located on all major highways across the country. There are dedicated BPCL officers at these outlets and who offer the Trucker and Tourists personalized service all through the day with host of facilities; hence the drivers call it a home away from home.
At the GHARs, customers can experience many convenient facilities like dhaba services, secure parking space, essential items store, emergency assistance, Doctor, route assistance and many more. Click here to locates the GHAR's on your route.
Pure for Sure Fuel:
Secure Parking:
Shop, Eat or Simply Relax:
Health Advisory Facilities :
Emergency Assistance:
Smart Fleet Route Assistance:
Pure for Sure:All the GHARs offer the customer guaranteed quality & quantity of fuel and are Pure for Sure. So customers can set aside their worries about compromising on the quality and quantity of fuel!
Cashless Transaction:
Enjoy the freedom of paying for your Fuel, Lubricants and In&Out items with your Smart Fleet card, instead of cash. This mode of payment does away with the risk of highway thefts and also facilitates collecting, maintaining and reconciliation of bills.
THE In & Out network
The “In & Out” store at Bharat Petroleum petrol pumps, which was launched in 2001, offers a convenient proposition where a number of typical household errands are aggregated under one roof for the benefit of the customers. Today there are more than 240 In & Out stores across India, which bring in unmatched convenience at the petrol station. Strategic alliances have been formed with major brand owners and retailers in the country to further strengthen the convenience proposition.
In & Out stores have a wide range of services viz., ATMs of leading Banks, Music stores from Planet M and Music World, Beverages from Pepsi, Coffee and snacks from Cafe Coffee Day and Coffee Day Xpress and a variety of impulse buys including confectionery, snacks, convenience foods, toiletries and select range of branded groceries and other FMCG products through exclusive tie-ups with such FMCG majors like ITC, Cadbury and Frito-Lay.
In & Out stores are the first to open and last to shut in the neighbourhood Customers can use their Petro Card for In & Out shopping and earn valuable
“Petromiles”. In & Out stores are the largest organized convenience store retailing chain in the
country with a standardised layout across the country, with a high level of aesthetics and an ambience aimed at deriving maximum value for our alliance partners and offering consumers a revolutionary solution for attending to their daily chores.
The In & Out stores offer Western Union Money Transfer facilities in Mumbai – Money available all the time from your near and dear ones abroad at our store
In & Out stores offer all cell phone – recharge cards, and today with the launch of e-charge we are the first in the country to offer electronic charging of e-cards – now you can never lose your prepaid card re-charge voucher
Have Pepsi at In & Out – anytime; if you want something more indulge in Coffee & Snacks from CAFE COFFEE DAY at select In & Out stores.
If you want the latest music – come to the “Satellites” from Planet M and to “Unplugged” from Music World, next to your home and get top quality music cassettes and CDs.
Pick the latest issue of India Today, Outlook and any other magazine at the store today
OUR NEWALLIANCES :
E-CHARGEOver the past two years, one of the key learning has been the high level of customer
acceptance of the cell phone offering in our In & Out stores. Consistent customer feedback has indicated the high level of convenience perception in having made cell
phone recharge cards available at the In & Out stores. With the cellular market showing manifold growth, cell phones have become a way of life and our Endeavour has been to make recharge cards easily available for our customers. With our stores operating 7 days a week through extended working hours, we believe that we would
be in a position to maximize convenience in this category.
E-Charge is a complete system and service provider offering “electronic delivery system” for the prepaid product industry through electronic terminals. This innovative
system vertically integrates the distribution value chain by linking mobile operators with the retail channel. This service is synergistic with BPCL’s overall strategic
objective of leveraging technology for optimizing customer offerings and by introducing the E-Charge service through the In & Out stores, the customer would
have the convenience of purchasing recharge cards of the cellular company and denomination of his choice at any point of time. The service optimizes customer
convenience, ensures complete security of the prepaid PINs and is highly scalable. The technology can also be leveraged to introduce other products like movie tickets,
sporting tickets etc and services like Bill Payments etc.
We would also be working closely with E-Charge and with the mobile operators to come out with innovative consumer offers and marketing activities to create
maximum value for our customers. We are happy to launch this service through our stores in Mumbai, Delhi and Hyderabad.Using plastic money for tanking up your
vehicle is now as common as it can get. All credit cards floating in the market can be used to purchase petrol in any petrol pump.
However a fuel surcharge is imposed on the consumer if he uses a credit card option to buy fuel. When payment of fuel at petrol pumps are made by cards, a fuel surcharge of some
percentage is levied by these outlets over and above the cost of fuel.
Petro card -4. No need to carry cash. Credit card payments used to attract surcharges and Petro card was best alternative.
Petro-card is a unique program offering customers the convenience and security of paying for their fuel with an electronic purse, with the added opportunity to collect valuable awards and
exclusive benefits!
Your membership in Petro Bonus™ enables you to purchase any item from a Bharat Petroleum outlet using the stored value Smart Card (the Petro Card™) - a revolutionary and
convenient payment mechanism.
It simply means greater convenience and security, speed of transaction, and rewarding opportunities to earn points with lots of gifts and benefits when you shop at a Bharat
Petroleum outlet. And that's just the beginning. Petro Card also opens up huge savings for you at restaurants, stores and many other merchants across the country.
So become a Petro Bonus™ member today and take advantage of the many benefits of membership.
There are principally three ways of plastic payment for fuel purchase: pre-paid petro cards, co-branded petro cards and plain vanilla credit cards.
Pre-paid Petro cards
Pre-paid fuel cards allow you to load certain amount of money in the card and when it is swiped for fuel, the bill amount is debited from the card. It has an electronic chip which
stores information about the amount of money that you have loaded in your card. Every time you use this card to make a purchase, the amount is deducted from the card. You also earn
rewards points while using such cards. The reward points can be redeemed for petro miles or rewards that are decided by the issuer. Also there always is a surcharge wavier on using a
pre-paid petro card of a particular company.
Presently there are two types of pre-paid cards in the market named as HP Smart 1 and BPCL Petro
The main reason to enroll for this program initially was to save on change. The guy at the fuel station (petrol pump or bunk as it is better known as) used to fill only for Rs 99.68 or
something when asked to fill for Rs 100. With petro card, I used to pay them only 99.68 and not Rs.100. This is no more an issue as all dispensers have provision to feed exact
amount/quantity, but back in 2002-2003 I could save some money this way.
Smart fleet
''Smart Fleet™'' is a program designed as a fleet management tool and targeted to vehicle fleets in India by Bharat Petroleum Corporation Limited, hereinafter called as ''BPCL''
BPCL Smart Fleet programme has a wide coverage across the country. Over 4,500 outlets accept the Smart Fleet Card.
''BPCL RO'' means select BPCL retail outlets (petrol pumps) at which the Smart Fleet Card will be accepted.
1. Any business entity or individual with fleet size of minimum 5 vehicles can enroll into the Smart Fleet Program. Applications for smaller fleet sizes are subject to specific approval of BPCL and / or the Credit The Smart Fleet card can be used only for the purchase of the family of items activated on the card.
2. Applicants can apply for the pre-paid and / or credit facility on the card. 3. Incomplete and unsigned applications are liable to be rejected. 4. BPCL reserves the right to grant or refuse membership to Smart Fleet Program. 5. Smart Fleet applicants must specify the family of items to be purchased at the BPCL
RO / Service Provider for each vehicle in the application form. 6. Each business entity will be given only one card per vehicle.
7. The card will have the electronic equivalent of cash loaded on the chip, which will be referred to as e-cash. The amount to be loaded will have to be deposited in cash with the dealer of the BPCL RO having loading facility.
8. The cards have to be physically taken to the smart card reader and the amount loaded onto the card.
9. The minimum load amount at each time would be Rs. 500/- per card. Any additional amount desired to be loaded would be in multiples of Rs.100/-.
10. The e-cash is a payment towards future purchase.
BPCL Smart Fleet programme has a wide coverage across the country. Over 4,500 outlets
accept the Smart Fleet Card.
6) Process – The process includes Entry to the outlet – Fore court Manager will guide which
Island to go – The attendant will greet and ask for the product – After this the attendant will
ask for the quantity required in terms of money – Before fuelling the attendant will ask to
shut down the engine and show the meter reading as zero – Fuelling will be done – After
fuelling payment will be done in Cash or Credit basis – Bill will be provided if asked –
attendant will then say “NAMASTE” – Customer will then Exit with Satisfaction.
7) People-
BPCL takes pride in assuming the role of “Fuel Managers”, for major customers, by providing technical know-how on storage, handling and conservation of petroleum products. This is in addition to the usual spectrum of services, viz. customized products, technical seminars, fuel management systems, energy and safety audits and terminalling of petroleum products.
Customer-
There are many customers who are Brand Loyal to the BPCL Products and they visit to the BPCL Retail Outlets because of the Trust in Quality & Quantity (Pure For Sure) , varied range of Products & Value Added Services(VAS) that is provided at the Outlets.
Employees-
Employees are given 8 hrs of work depending on their shifts & timings. There are 3 shifts in a day. Employees are trained by the company itself & also proper safety measures are taken for the employees. First Aid Kit, Fire Extinguishers, Dry Sand in buckets etc...are all always present at the Retail Outlets for Safety Measures.
