Presentation On BPCL

Presented to Prof. Geeta M.S. Agarwal

B Y: A N U J K A U S H I K
D I V YA N S H U S I N H A
G E E TA N J A L I
SAKSHI DANG
 Executive Summary Of Case

 Bharat Petroleum Corporation Ltd. (BPCL), a leading player in the Indian

petroleum industry, received wide acclaim for having brought change in the
Indian fuel retailing business.
 After Deregulation of Oil Industry in 2002, BPCL did Pioneering efforts in
creating Brand Awareness for itself & unlike before, became customer focused.
 BPCL's first foray into petrol pump retailing was through a JV with Shell
launching the first convenience store (C-Store)2 stocking over 1,000 different
items.
 Retail Outlets opened by all major Oil Companies but BPCL was better
Positioned due to effective Marketing Strategy & Positioning.
 Retail Initiatives

 Petroleum business can broadly be divided into three parts: the production of
crude, the refining the crude into saleable products like petrol, diesel, kerosene
etc., and retailing.
 In marketing , companies could get the maximum margins, and hence the rush
to renovate the retail outlet.
 As part of the nationalization drive in the late 1970s, BPCL took over Shell's
marketing network. This acquisition gave BPCL a strong marketing network and
choice locations in cities
 Surveys revealed that People wanted facility to pay by credit cards
& also indicated that customers would like to be able to purchase soft drinks at
these outlets.
 BPCL tied up with APOLLO Tyres , PEPSI Co. & also issued a co-branded
credit card in a tie up with Bob Card Limited in August, 1995
 Retail Initiatives(Contd.)

 During 1998-2000, BPCL took the help of consultants Arthur D. Little to make
itself more 'market savvy.‘( Changing Organizational Structure)
 The company was split into six strategic business units (SBUs) and efforts were
taken to reduce bureaucracy and increase interaction between senior
managers and the customers.
 The six SBUs thus identified were retail outlets, commercial users, lubricants,
LPG, aviation, and refinery. helped the managers focus on specific customers
and cut bureaucratic layers, speeding up decision-making.
 22 divisional offices were replaced by 61 branches in smaller territories, based
on smaller geographical areas, resulting in closer interaction with the
customers.
 Most important change on the marketing front was the renewed focus on retail
outlets(Used 'site procurement team’).
 Retail Initiatives(Contd.)

 To complement the launch of the first few 'Bazaar' outlets, BPCL released an
advertising campaign as well. The five advertisement press campaign carried
the baseline: 'Each pump has a story to tell - a story of care & commitment.‘
 In October, 2000, BPCL pioneered another revolutionary concept by launching
a McDonald's fast food outlet at a petrol pump near Mathura (UP) on the Delhi-
Agra highway.
 Acting on recommendations of consultants Dhar & Hoon, BPCL decided to
keep the stores open till at least 11 pm.
 In January, 2001, BPCL further upgraded the 'Bazaar' stores and, a month later,
launched the 'In & Out' stores at around 40 outlets.
 To offer enhanced services to its customers, BPCL tied up with various
companies from a number of different industries: fast food, photography, music,
financial services etc.
 Retail Initiatives( Contd.)

 'In & Out' stores remained open till around midnight and reopened around 4
am, it was under constant review.
 BPCL also proposed to use the Internet facility to deliver products to consumers
in a timely and cost-effective way.
 Products were delivered to a BPCL outlet & thus, the petrol pump acted as a
convenient channel between the companies and the customers.
 One of BPCL's innovative plans concerned the distribution of LPG cylinders
 BPCL's rivals, IOC and HPCL, had also begun refurbishing their petrol pumps -
IOC's stores called 'Convenio' were running very successfully across the
country
 Recommendations

 Retail Stores to be made 24X7.

 Coffee Vending Machine to be installed at Retail Outlets.
 Take Away Food outlets could be opened
 Corporate plans for some big Corporate House could also be Put Up.
 Collaborations with Call Centers & other organizations could yield better
business.
 Different Offers to be given to the Customers for better Foot Falls.
 History

Year Events
1962 Refinery