[Typetext]

Index
Topic

PageNo

1. ChapterI

Introduction

2. ChapterII

ResearchMethodology

TheoreticalFramework

3. ChapterIII

4. ChapterIV

3to4

5to10

11to20

21to33

34to36

Background

5. ChapterV

AboutBrandedfuels

6. ChapterVI

ResearchMethodology

7. ChapterVII

Suggestions&Recommendations

8.

Bibliography

37

1R.Umapathy

CustomersPerceptionTowardsBrandedFuel

CHAPTERI
Introduction:

a).ProjectTitle:
CustomersPerceptionTowardsBrandedFuel

b).ProjectObjective:
ToknowtheopinionabouttheBrandedfuel
ToKnowwhythereisshiftfromBrandedfueltoUnleadedPetrol
TofindouttheLoopholesifanyandsuggeststrategytoimprovethesale.

c).LimitationsofStudy:
Limitedsamplesize(Total150respondents)
StudyisrestrictedtothegeographicallimitsofHyderabad.
Limitedresponsefromothercitiesthroughmails/Internet.
Limitedperiodofsurvey
Surveycontainedveryspecific,narrowquestions.Itdidnottakeintoaccountthedemographic
ofcandidates.

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CustomersPerceptionTowardsBrandedFuel

cHAPTERII

ResearchMethodology

a).ResearchDesign:
DescriptiveResearch

b).SamplingManagement:
Thesamplingtechniqueusedintheprojectisconveniencesamplingtechnique.
150 respondents from Hyderabad city from different outlets were picked to fill the
questionnaire
QuestionnairewassentthroughEmailtodifferentcategoriesofcustomersfortheirresponse.

c).DataCollectionManagement:
The research is conducted by using a Questionnaire. The sampling technique used is
conveniencesampling.

Secondarydataiscollectedusingarticles,brochuresofHPCL,journals,andInternet.

d).StatisticalTechnique:

Percentageandgraphicalmethod.

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CustomersPerceptionTowardsBrandedFuel

CHAPTERIII

TheoreticalFrameWork:

In todays globalising economy competition is getting more and fiercer. That means it
becomes more difficult for products and services to differentiate themselves from other
offerings than ever before. Not only is the number of competitive offerings rising due to
globalisation of production, sourcing, logistics and access to information. Many products and
services face new competition from substitutes and from completely new offerings or
bundles from industry outsiders. Since product differences are closed at an increasing speed
and many companies try to win the battle for customers by price reductions, products and
services tend to become commodities.

DagmarRecklies
ManagementGuru

Inaderegulatedscenariotheindustryisgoingtobemorecompetitivemoreresponsiveconsequently
moreefficient.

MBLal
ExC&MDHPCL

Sofartheneedforadvertisingwasnotfeltbecausetheenvironmentwasnotcompetitive.Butwith
otherplayersinmarketthereisaneedforbrandbuilding.

RKSwamy

EXEDIOCL

ThefourP'sofmarketingproduct,price,placeandpromotionwerethecornerstonesofbuilding
abrandinthepast.Today,oneneedstoredefinetheroleofmarketingascreating,communicatingand
deliveringvaluetotheconsumer(CCDV).
PhilipsKotler

4R.Umapathy

CustomersPerceptionTowardsBrandedFuel

Marketerssecurecompetitiveadvantagefromtherelationshipsbetweencustomersatisfaction,service
quality and perceived value. A survey of customers of restaurants seeks to understand these
relationshipsandhowtheyaffectpostpurchasebehaviour.Thefindingisthatcustomersatisfactionand
perceivedvaluesignificantlyguidepostpurchasebehaviour.

-Tam, Jackie L

The use of "customer perception" is to require organizations to go out and find out what
their customers think.
-Paul simpson U k

Customer perceptions are what indicate whether you have achieved satisfaction or not. In
other words, they represent stepping stones along a continuum. Perceptions accumulate
over time and gradually equate to either satisfaction or dissatisfaction. You job is to
understand and act on these perceptions so the final result is customer satisfaction
-Ccohran, USA

Customer satisfaction and customer perception are different in how the standard views the
relationship. What your salesman gathers can apply to both if the info is categorized. Does
the salesman visit your key accounts regularly? How do his customer contacts view your
company's attitude, responses, anticipating of needs and wants. Communications via visit,
e-mails, phones, and feedback. These are things that contribute to perception.
Satisfaction of product quality and delivery.
"Nothing is constant except change"

Ralphsulser,USA

5R.Umapathy

CustomersPerceptionTowardsBrandedFuel

CHAPTERIV
BACKGROUND:

TheIndianPetroleumIndustry:

TheoriginofPetroleumindustrycanbetrackedtotheendof19thCentury.Crudewhichisthebaseof
thepetroleumproductswasdiscoveredinDigboi,AssambyBritishers.FirstOilrefinerywasstartedat
Digboi.LaterInternationalplayerslikeCaltex,Stanvac,Ess,andBurmahShellweregivenopportunityfor
production,refiningandmarketingofpetroleumproducts.
TheseoilcompanieshavesetuptheirownrefineriesandstartedmarketingpetrolandDieselthrough
theirsetupofRetailOutletsi.e.Petrolpumpsacrossthecountry.TheyalsomarketedLPGfordomestic
useandlubeoils.

Nationalisation:

Even after Independence, the MNCs controlled the entire Indian Petroleum industry till the Oil
companies are nationalised. In the year 1975, Esso and Caltex were merged to create Hindustan
PetroleumCorporationLtd.BurmahShellhasbecomeBharatPetroleumCorporationLtd.AnewIndian
company was created called Indian Oil Corporation Ltd. Later Indo Burma Petroleum Ltd or IBP was
created.ThesefournationalizedcompanieshavesetuptheirownrefineriesandRetailoutletsacross
thecountryandaresellingPetrolandDieseltoitscustomers.Thusthepetroleumsectorhasbecome
controlledmarket.Eventhoughmostoftheproductsaredecontrolled,petrol,DieselandLPGarestill
undercontrol.
OilCoordinationCommitteewasformedbytheGovtofIndiaandadministeredthepricesofPetroleum
products thru APM (Administered Pricing Mechanism) and all the prices were equalized. The Oil
Exploration and production is taken up by the Upstream company ONGC (Oil and Natural Gas
Corporation)andtheDownstreamoperationsarehandledbyHPC,IOC,BPC,IBP.

6R.Umapathy

CustomersPerceptionTowardsBrandedFuel

Liberalisation:
Indian Economy Liberalised after 1990 and the industry witnessed fundamental changes. In the year
2000,GovtdismantledAPMandinitiatedderegulationandhasgivenwaytoMarketDeterminedPricing
Mechanism. With the deregulation of marketing and refining sectors, the industry opened and more
private players have started their operations. Reliance, Shell, Essar, Numaligarh Refinery,MRPL and
ONGChavestartedtheirretailoperations.
With the deregulation of the sector, companies are allowed to set their own domestic petroleum
productprices.However,GovtstillcontrolledthepricesofPetrol,Diesel,LPGandoilcompanieswere
forcedtoexploretheothersegmentsofthemarketwheretheycouldincreasepriceswithoutwaiting
fortheGovtsapproval.HencethedecisiontointroducetheBrandedFuel.

AboutHindustanPetroleumCorporationLtd.
Background:
HPCL, a fortune 500 company, is regarded as one of the major integrated oil refining and
marketing companies in India. It is a Mega Public Sector Undertaking (PSU) with Navaratna
status. HPCL has achieved its market leadership through efficiency in production and
management.
HPCLthuscomesintobeingaftermergingfourdifferentorganisationsatdifferentpointsof
time.
1952:

TheCompanywasincorporatedinthenameofStandardVacuumRefining
CompanyofIndiaLimitedonJuly5,1952

1962:

On31stMarch,1962thenamewaschangedtoESSOStandardRefiningCompany
ofIndiaLimited.

1974:

HindustanPetroleumCorporationLimitedcomesintobeingafterthetakeoverand
mergeroferstwhileEssoandLubeIndiaUndertaking

1976:

CaltexOilRefiningLtd.istakenoverbytheGovernmentofIndiaandsubsequently
mergedwithHPCLin1978.

1979:

KosanGasCompany,theconcessionariesofHPCLinthedomesticLPGmarket,are
takenoverandmergedwithHPCL.

7R.Umapathy

CustomersPerceptionTowardsBrandedFuel

Profile

HPCLaccountsforabout16%ofthemarketshareand10.3%ofthenation'srefiningcapacity
withtwocoastalrefineries,oneatMumbai(WestCoast)havingacapacityof5.5MMTPAand
the other in Vishakapatnam (East Coast) with a capacity of 7.5 MMTPA. HPCL also holds an
equity stake of 16.95% in Mangalore Refinery & Petrochemicals Limited (MRPL), a stateof
theart
refinery
at
Mangalore
with
a
capacity
of
9
MMTPA.

HPCLownsthecountry'slargestLubeRefinerywithacapacityof335,000metricTonneswhich
amountsto40%ofthenationalcapacityofLubeOilproduction.HPCLhasgivenIndiaafirm
ground in this sector with its world class standard of Lube Base Oil.

HPCLhasreturned"Excellent"performanceforfifteenConsecutiveyearsupto200506,since
signing of the first MOU with the Ministry of Petroleum & Natural Gas. HPCL won the
prestigiousMOUAwardfortheyear200607forExcellentOverallPerformance,andforbeing
one of the Top Ten Public Sector Enterprises who fall under the 'Excellent' category. HPCL
performancefortheyear200708alsoqualifiesfor"Excellent"rating.

TheCorporationovertheyearshasmovedfromstrengthtostrengthonallfronts.Therefining
thruputhasincreasedthreefoldbetween1984/85to2007/08,risingfrom4.47milliontonnes
in
1984/85
to
13.70
million
tonnes
currently.

Consistentexcellentperformancehas been made possiblebyhighlymotivatedworkforceof

over10,800employeesworkingalloverIndiaatitsvariousrefiningandmarketinglocations.

Technology:
HPCLcontinuallyinvestsininnovativetechnologiestoenhancetheeffectivenessofemployees
andbringqualitativechangesinservice.BusinessProcessReEngineeringexercise,creationof
StrategicBusinessUnits,ERPimplementation,OrganizationalTransformation,BalancedScore
Card, Competency Mapping, benchmarking of refineries and terminals for product
specifications,ISOcertificationofRefineriesandSupplyChainManagementaresomeofthe
initiatives
that
broke
new
grounds.

HPCL has successfully integrated Information Technology in its activities at different levels.
TheEnterpriseResourcePlanning(ERP)systemisnowoperationalonJ.D.Edwards,anOracle
product,acrosstheCompany.

8R.Umapathy

CustomersPerceptionTowardsBrandedFuel

Infrastructure:

HPCL's infrastructure is at par with that of the best global

corporations in the hydrocarbons sector. For over a quarter
centurynow,HPCLhasbeenconsistentlybreakingnewgrounds
in production and marketing. A glimpse of the vast marketing
networkalreadydevelopedisgivenbelowinatable.

MarketingNetwork:

2007 2006 2005 2004

08
07
06
05

RegionalOffices

91

86

85

85

Terminals/Installations/TOPs 42

37

36

36

Depots

93

93

92

100

LPGBottlingPlants

43

42

41

40

ASFs

16

13

13

10

RetailOutlets

8329

7909

7313

6667

SKO/LDODealers

1648

1648

1648

1648

LPGDistributors

2232

2238

2202

2153

LPGCustomers(incores)

2.52

2.39

2.28

2.17

9R.Umapathy

CustomersPerceptionTowardsBrandedFuel

MajorOngoingProjects :

NewFCCUatMumbaiRefinery:
Lube Oil Base Stock (LOBS) Up gradation project
atMumbaiRefinery:
Diesel Hydro Treating (DHT) at Mumbai &
Visakhapatnamrefineries:
New Integrated Effluent Treatment Plant at
MumbaiRefinery:
NewGreenFieldRefineryShriGurugobingSingh
Refinery at Bhatinda, Punjab is a joint Venture
betweenMittalEnergyandHPCL

Awards:

NDTVProfitBusinessLeadershipAward
ReadersDigestTrustedBrandAsiaPlatinumAward
GoldenPeacockCorporateGovernanceAward2008
CIO100Award2008
IndiaStar2008
BestHRPracticesinPeopleManagement

ForecourtRetaileroftheyear2007award:StarRetailer
Awards
EMPIIndianExpressIndianInnovationAwards"Silver
Trophy"
CNBCAwaazConsumerAward2007

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CustomersPerceptionTowardsBrandedFuel

Mission/Vision:

Mission
"HPCL,alongwithitsjointventures,willbeafullyintegratedcompanyinthehydrocarbons
sectorofexplorationandproduction,refiningandmarketing;focusingonenhancementof
productivity,qualityandprofitability;caringforcustomersandemployees;caringfor
environmentprotectionandculturalheritage.

Itwillalsoattainscaledimensionsbydiversifyingintootherenergyrelatedfieldsandby
takinguptransnationaloperations."

Vision
TobeaWorldClassEnergyCompanyknownforcaringanddelightingthecustomerswith
highqualityproductsandinnovativeservicesacrossdomesticandinternationalmarkets
withaggressivegrowthanddeliveringsuperiorfinancialperformance.TheCompanywillbe
amodelofexcellenceinmeetingsocialcommitment,environment,healthandsafetynorms
andinemployeewelfareandrelations.

CHAPTERV
11R.Umapathy

CustomersPerceptionTowardsBrandedFuel

LaunchofBrandedFuels:

In July 2002, BPCL launched Premium grade petrol under the brand name Speed. This was the first
instanceanycompanylaunchedbrandedfuelinthemarket.LaterinSeptember2002,HPCLlaunchedits
brandedpetrol,Power.SoonitisfollowedbyIOCLwithits91OctaneXtraPremium.Withinashort
spanoftime,thecountryhadseentheemergenceofanentirelynewmarketcategory.Laterallthese
companies followed the suit and launched its Diesel version of branded fuels. The percentage of
BrandedfuelsintheHyderabadcityisgivenasfollows.

22%

30%

47%

SuperUnleaded

1%

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CustomersPerceptionTowardsBrandedFuel

WhyBranding:
According to the industry observers, this trend was in line with the global trends wherein petroleum
companies tried to build a loyal customer base by branding its services and petroleum products. As
petrol had traditionally not been seen as categories with much scope for product differentiation,
branding of this product came as a welcome change. It was conscious and proactive effort of the
companiestowardsbrandbuilding.
AstheIndustrybecamemorecompetitiveandcustomerdriven,companiesneededtofocuslikenever
before on marketing strategies. The first significant development in this direction was to convert the
outletsandbrandtheoutlets,services,outlookandfuel.

WhatisBrand:
ABrandisaname,sign,symboloracombinationofthemintendedtoindentifythegoodsandservices
ofonesellerorgroupofsellersandtodifferentiatethemformthoseofcompetition.
FromConsumerspointofview
9 Identificationofsourceofproduct
9 Assignmentofresponsibilitytoproduct
9 RiskReducer
9 SearchCostreducer
9 Promise,bondorpactmakerofproduct
9 Symbolicdevice
9 Signalofquality
FiveBs
1. Basic:Therearesomebasicthingswhicharerequiredbycustomers
2. Background:Customershavebackgroundwhentheyaregoingtopurchase
3. Beauty:Packagingshouldbesuchthatattractcustomers
4. Belief:Customersshouldhavebeliefonthebrand
5. Benefit:Customerspurchasethosethingswhichgivethembenefit

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CustomersPerceptionTowardsBrandedFuel

CLUBHP:
HPCLintheyear2001,brandeditsservicesunderoneumbrellaCLUBHP.ClubHPisrenderingservices
intwocategories1)CustomerCareand2)VehicleCare.
A part from HPCL, BPCL has branded its outlets as PURE FOR SURE, IOC has branded their outlets
underXTRACARE.

ApartofHPCL'sstrategicretailmarketinginitiativethatseekstobreakoutoftraditionalfuelretailing,a
newRetailBrand"ClubHP"assureshighqualitypersonalized"VehicleandConsumerCare"througha
select
set
of
outlets.

Developed after an exhaustive research of over a year which included collecting feedback from over
13,000respondentsinseveralkeymarketsacrossthecountry,the"ClubHP"conceptaimstoprovide
the assurance of Quick Fills", "Expert, Personalised Service", "Total Vehicle Management" and
"Consumer
Conveniences".

WhiledesigningthebouquetofservicesforClubHPoutlets,relieduponthefeedbackreceiveddirectly
from consumers. It was realized that consumers are highly conscious of the fuel that goes into their
vehicles each Club HP outlet carries the assurance of HPCLs Good Fuel Promise and delivers the
rightqualityandquantityoftheproductsonoffer.Fuelisdeliveredtotheseoutletsintanktrucksfitted
with tamper proof locks and a high degree of control is kept by the HPCL staff to ensure that quality
standards
are
strictly
enforced.

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CustomersPerceptionTowardsBrandedFuel

The"ClubHP"conceptalsorecognizesthefactthattheconsumertodayplacesveryhighimportanceon
vehiclecareandatthesametimeexpectsothervalueaddedservicesfromafuelretailoutletthathelp
himtakecareofdiverseactivitiesunderoneroofandintheshortestpossibletime.TheClubHPoutlets
provideadistinctsetofbasicandvalueaddedofferingswhichinclude"Efficient&ExpertService",
"QuickCarePoint","DigitalAirTowers","VehicleFinanceandInsurancerelatedassistance","Bills
Paymentfacilities",Refreshments,"HPCLICICICreditCards","ClubHPSmart1Cardsandahostof
otheramenities.

Todeliverthemanyconveniencesandservices,theyhaveassociatedwithleadingcompanieslikeCoca
ColaIndia,ICICIBank,FedEx,WesternUnionMoneyTransfer,CafCoffeeDay,McDonalds,USPizza,
Skypakandmanymore.Theyarealsoforgingservicespecificallianceswithseveralautomobile
companiesandOEMslikeTataMotorstojointlyidentify"ClubHP"outlets,whichcouldqualifyas
"AuthorisedServiceCanters"forleadingautomobilebrands.

Therolloutof"ClubHP"beganinaphasedmanner,initiallytargeting85outletsinthecitiesofMumbai,
Delhi,BangaloreandKolkata.Encouragedbytheinitialexperience,theClubHPbrandhasbeen
quicklyexpandedtocoverover1000outletsinallmajorcitiesandtownsacrossIndia.Thedistinctive
redandblueClubHPlogoisanalltoofamiliarsymbolinvitingmotoristslookingforaquickand
refreshingfuellingexperience.

VehicleCareTheClubHPoutletshavebeencarefullyselectedtoensurethattheycanofferhigh
qualityvehiclecare.EachClubHPMegaandMaxoutletisequippedwithaservicestation.Inaddition,
theoutletswillalsoprovidevehicleconsumableandaccessories,allunderoneroof.Moreandmore
outletswillprogressivelyupgradetoAuthorisedServiceStationsaspartofourassociationwith
variousvehiclemanufacturers.

QuickCarePointsConsumersareofferedafreecheckupofvitalelementssuchasengineoil,brake
oil,batterywater,coolant,fanbelt,radiatorhoseetc.bythespeciallytrained"ClubHP"attendants.In
addition, a quick inspection of the tyres is done and recommendations given in case any immediate
actionisrequired.
DigitalAirTowersTheperformanceandsafetyofnewgenerationcarsdependalotonthecorrect
air pressure maintained in the tyres. The specially designed digital air pressure equipment not only
ensuresaccurateairpressureintheshortesttimebutalsoaddstothecomfortandsafetyoftravel.

GoodFuelPromiseTowersConsumersareofferedthefacilitytopersonallyconductsimpletests
withthehelpofspeciallydesignedstandardapparatus.Asimpleprocedurebookletisalsoprovidedto
helpanyonecheckthequalityandquantityoffuel.Theconsumersarealsoinvitedtofillintheprinted
certificatebookletwhich willbeavailableatall"ClubHP"outletsinordertorecordtheir assessment.
This feedback is regularly screened by the HPCL team to plan remedial actions or service upgrades in
accordance.

15R.Umapathy

CustomersPerceptionTowardsBrandedFuel

VehicleFinanceandInsuranceRelatedCounselHPCLhastiedupwithleadingvehicleinsurance
andfinanceserviceprovidersfortheseactivitieswhichincludeassistancetowardsissuanceandrenewal
ofpoliciesaswellasextensionofloansforpurchaseofneworsecondhandvehicles.

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
withATMs.

BillsPaymentsHPCLhastiedupwithSkypakFinancialServiceswhichisproviding"Dropboxes"atall
"ClubHP"outletsinaphasedmanner.Consumerscanutilizethesedropboxestopaybillsrelatingtoa
varietyofserviceproviders.Allonehastodoisdropthebillandpaymentinstrument(Cheque/Demand
Draft)forthedesignatedserviceproviderandSkypakwillroutethesametothecorrectdestinationat
noextracost.

CommunicationFacilitiesEachClubHPoutletisequippedwithapayphonefortheconvenience
of consumers. In addition, select outlets will also provide high speed internet browsing and e mail
facility.

HPCLICICIcobrandedCreditCardsandtheClubHPSmart1CardsCustomersvisitingthe
"Club HP" outlets will be able to use the HPCL ICICI Credit Cards to reap the higher reward points
offeredbythisuniqueproduct.The"ClubHPSmart1",asmartcardbasedloyaltyprogramlaunchedfor
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"
throughwaterpurifiers,hygienicrestroomfacilitiesbrandedasFleurs,foodcounters,basicmedicines
andfirstaidfacility.HPCLhasalsotiedupwithCocaColaIndiatoprovidebeveragesandbottledwater
aswellassnacksatall"ClubHP"outlets.

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CustomersPerceptionTowardsBrandedFuel

HPCLpioneeredinchangingtheoutlookoftheoutletsbyreplacingthegoodoldlookwithnewidentity
called Retail Visual Identity. The logo is changed to round HP logo and the pump islands,
spreaders,spines,canopy are all replaced with special material called Aluco bond Material which has
changedtheentirelookoftheoutlet.

As the competition was bound to intensify in the future and the industry was moving towards
deregulationbeingcompletelyimplemented,itwasexpectedthatcompaniescouldevenundercuttheir
prices. The need for greater product/price differentiation was expected to be stronger. The branded
fuelscompaniesofferedareenvironmentfriendlyandhelpedvehiclecomplywiththeemissionnorms
prescribedbytheconcernedauthorities.

ConsideringtheincreasingawarenessforenvironmentfriendlyproductsamongIndianconsumers,the
introduction of branded fuels seemed to be a timely move and is expected to generate sufficient
interestinthemarket.

17R.Umapathy

CustomersPerceptionTowardsBrandedFuel

1.How"PoWer"works:

Whenonebuysanewvehicle,itsfuelportinjectors,intakevalves,aswellascombustionchamberare
completelyfreeofdeposits.Overaperiodoftimedepositsbegintoaccumulateontheseengineparts,
thusaffectingthevehicleperformance.Letuslookatthevarioustypesofdepositsthatcanaffectthe
smoothfunctioningofavehicle.

PortFuelInjectorsDepositsonportfuelinjectorsarebadnews,duetowhichthecarendsupwithpoor
ignition,roughidling,reducedaccelerationandhigheremissions.

IntakeValves&PortsIfoneusesafuelwithoutadditives,hardandporousdepositswillsoakuppartsof
fuellikeasponge.Thisleadstoimproperfuelairmixture,whichaffectsthevehicleperformanceaswell
as the COcontent of the exhaust gases. In extreme cases, deposits on the valve seat can prevent the
valve from closing properly, which will damage the engine severely. The deposits on intake valves
restrictairflowandhence,adverselyaffectfueleconomy,poweroutputanddrivingcomfort.

Combustion Chamber deposits in the combustion chamber lead to rise in pollution levels, octane
requirementincrease(ORI)andhigherlubricantconsumption.Infact,combustionchamberdepositsare
the reason for a 'knocking sound, as well as reduced power and slower acceleration. Very advanced
engines have 'antiknock sensor' which can easily adjust compression ratios. Unfortunately, most new
generationvehiclesinIndiadon'thavesuchfeatures.Howeverwiththeintroductionofadditisedfuels,
thisdisadvantagecanbeeliminated.

18R.Umapathy

CustomersPerceptionTowardsBrandedFuel

Atypicalphotographshowingtheaction

2.The"PoWer"packedperformance
Blended with specially imported additives, "PoWer" not only removes existing deposits, but also
preventstheformationofnewones.Thisensuresthatthevehiclesengineremainsfreefromdepositsat
alltimesresultingincontinuouspeakengineperformance.However,itcouldtakeoneortwotankfills
of"PoWer"beforeonenoticesanybenefits.Thisisbecauseitwilltakealittlewhilebeforetheexisting
depositsarecleanedandcompletelyremoved.Howeveronecanbesurethatconsistentuseof"PoWer"
will result in improved performance from your vehicle. "PoWer" ensures that, the engine will work in
the way it was designed over its entire lifetime. "PoWer" also ensures that the whole intake system
remains
clean,
even
after
several
thousand
kilometres
in
service.

ForCarburettedEnginesToo!AlthoughpoWerisespeciallybeneficialfornewgenerationMultiPortFuel
Injection engines, it also helps in reducing deposits in carburetted engines. Thus, even if you own an
oldervehicle,poWerwillhelpyougetthebestoutofit.
19R.Umapathy

CustomersPerceptionTowardsBrandedFuel

AdvantagesofPower

Removesdepositofintakevalvesandfuelinjectors.
Controloctanerequirementincrease(ORI).
Ensuresoptimumcombustionoffuelinengine,therebyEnhancesfueleconomy.
Improvesdrivingcomfort.
GivesmorepoWerandacceleration.
Reducesexhaustemissions.
Preventsstickingofintakevalves.
Reducesengineknocking.
4.CertifiedByExperts
poWer,thenewgenerationpetrollaunchedbyHPCLwastestedbyaleadinginternationallaboratoryin
Germanyandtheresultshaveestablishedtheproductasoneofthebestperformingpetrolbrandsever
testedby them.Itwasestablished thatpoWerreducesintakevalvedeposits, rankingamongthe best
performingpetrolbrandstestedbythelaboratory.ThetestprovesbeyonddoubtthatpoWerresultsin
superiorperformanceoftheengine,bykeepingitcleanerandhealthieroverlongerperiodsoftime.The
associatedbenefitsofbettermileage,greaterpoWerandacceleration,cleaneremissionsandenhanced
enginelifenaturallyfollow.

20R.Umapathy

CustomersPerceptionTowardsBrandedFuel

PromotionalEfforts:
Oil Companies have started its promotion of branded fuels adopting various media mix tools through
PrintMedia,ElectronicMediaandalsoitsoutlets.
HPCLhaspromotedthroughitsBrandAmbassadorSaniaMirzaandwithapunchlinecalledWhenYou
havePoweritshows.AlsocampaignsarecarriedintheirRetailoutletsperiodically.
BPCLispromotingthroughitsBrandAmbassadorN.Karthikeyan.
IOCLisveryaggressiveinpromotionandispromotingnotonlyintheTVbutalsocontinuouslyinRadio
VividhBharathi.

PricingofBrandedfuels:

Theadditivesareimportedwhichhasspecialagentsandareveryexpensive.Naturallythesearetobe
pricedhightobehighperformer.Initiallythepricedifferencewithrespecttounleadedwasonly0.50
paisa.Latercompanieshaveincreasedprices.Thepricedifferencebetweenbrandedfuelandunleaded
isRs.2.50/.
A customer survey revealed that customers are influenced by staff at the petrol pumps who can
convincethecustomers.Keepingtheroleofthedealerinpromotingtheproduct,companygaveahigh
commissionof18paisaperliteragainsttheunleadedpetrol.
ThefollowingTableshowstheexistingpriceinMarch09betweenunleadedandbrandedpetrol.

Unleaded

45.56

DiffwrtUnleaded

Power

48.06

2.5

Speed

48.10

2.54

XtraPremium

48.06

2.5

SuperUnleaded

50.95

5.39

21R.Umapathy

CustomersPerceptionTowardsBrandedFuel

CHAPTERVI
A17pointQuestionnairewascirculatedtotherespondentsacross10RetailOutletsandalsoonthe
internetthruEmail.Asampleof150respondentsrespondedtheQuestionnaire.
AsampleQuestionnaireisgivenbelow.

QUESTIONNAIRE
Q.1.Name
o
o

Address
Designation

:
:
:

Q.2.WhatisyourEducationalQualification(Pltick)
o
o
o
o
o

SSC
Inter
Degree
PG
AnyOther

Q.3.whatisyourmonthlyIncome.Pltickthefollowing
o
o
o
o
o

Rs500010000
Rs1000015000
Rs1500020000
Rs2000025000
Rs25000andAbove

Q.4.WhattypeofVehicledoyouown
o
o

TwoWheeler
FourWheeler

Q.5.WhichModel(YearofManufacture)
____________________________
Q.6.WhichPetroldoyouusecurrently?

22R.Umapathy

CustomersPerceptionTowardsBrandedFuel

o
o

UnleadedPetrol
BrandedPetrol

Q.7.AreyouawareofBrandedPetrol
o
o

Yes
No

Q.8.IfYeswhichbrandareyouusing(Pltick)?
o
o
o

Power
XtraPremium
Speed

Q.9.Howdidyoucometoknowaboutit?
o
o
o
o
o

Petrolpumpboy
Advertisement
Friends
Currentusers
Anyother

Q.10.IfBrandedPetrol,howlongyouhavebeenusingit?
o
o
o

Lessthan6months
612months
Morethan12months

Q.11.IfUnleadedpetrol,thenpleasespecifythereasonfornotusingBrandedPetrol
o
o
o
o
o

Expensive
Unavailabilityatpetrolpumps
LackofKnowledge
Neverfeltaneed
Others

Q.12.IfshiftedtounleadedPetrol,howlongyouhadusedit?
o
o
o

Lessthan6months
612months
Morethan12months

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CustomersPerceptionTowardsBrandedFuel

Q.13.Reasonsforshiftingtounleaded?
Nochangeinperformance
Expensive
Nochangeinmileage
Others

Q.14.RatethefollowingfactorsofPowerandunleadedpetrolonascale1to5(1Highest/5Lowest)
o
o
o
o

FACTORS

UNLEADED
PETROL

BRANDEDPETROL

MILEAGE

SMOOTHRUNNING

REDUCTIONOF
EMISSIONLEVELS

EASYSTARTING

LOWMAINTENANCE
COST

ACCELERATION

ELIMINATIONOF
KNOCKING

Q.15.whatisyouroverallopinionaboutBRANDEDPETROL

o
o
o
o
o
o

Excellent
VeryGood
Good
Fair
Poor
Verypoor

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CustomersPerceptionTowardsBrandedFuel

Q.16.WillYourecommendittoothers

o
o

Yes
No

Q.17.WhatdoyousuggesttoimprovetheperformanceofBRANDEDPETROL

ThankYouforyourvaluabletimeandinformation.

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CustomersPerceptionTowardsBrandedFuel

ResearchFindings:
BasedontheresponsesobtainedfromtheaboveQuestionnaire,dataiscollectedandcollated.
Theresultsaregivenbelow.

1. Question:
Whichvehicledocustomersuse?

23%

Two Wheeler

Four Wheeler
77%

Itisfoundthat77%areFourWheelersand23%are2Wheelers.

26R.Umapathy

CustomersPerceptionTowardsBrandedFuel

2. Question:
Whatisthequalificationofcustomer?

8%

12%

14%

SSC

Inter

Degree

PG

23%

Other
43%

43%ofcustomersareDegreeholders
23%ofcustomersareIntermediate
14%ofcustomersarePostGraduate
12%ofcustomersaresscorxthpass
8%ofcustomersareothers
ThisshowsthatthemajorityofthecustomersisDegreeholdersandiseducated.

27R.Umapathy

CustomersPerceptionTowardsBrandedFuel

3. Question
Theincomelevelsofcustomers

40%

10%

10%

13%

5000
- 10000

10000 - 15000

15000 - 20000
20000 - 25000

25000 and Above

27%

40%ofthemareaboveRs25000incomelevel
27%ofthemareabove20000
Whereasremainingarebetween5000to20000

Thisshowsthatmajorityofthemareabove25000incomelevel

28R.Umapathy

CustomersPerceptionTowardsBrandedFuel

4. Question:
HowmanyofthemuseBrandedFuel

Unleaded Fuel

40%

60%

Branded Fuel

Majorityoftheinterviewedcustomersusebrandedfuel.

5. Question:
HowmanyofthemknowaboutBrandedFuel?

28%

Yes

No

72%

Majorityofthem72%knowsabouttheBrandedFuel

29R.Umapathy

CustomersPerceptionTowardsBrandedFuel

6. Question:
WhichBrandedfuelcustomersuse?

23%

Power

Xtra Premium
57%

20%

Speed

57%oftherespondentsusePower
20%usextrapremium
23%useSpeed

7. Question:
Ifthecustomerisaware,themediumthroughwhichtheyhavecome
toknow?

7%

5%
20%

Petrol Pump Boy

Advertisement

Friends
36%

Current Users
32%

Other

36%ofthemhavecometoknowthrufriendsi.ethruwordofmouth.
32%ofthemhavetocometoknowthruAdvertisement
Whereas20%havecometoknowthrupumpboys.
30R.Umapathy

CustomersPerceptionTowardsBrandedFuel

8. Question:
Howlongtheyareusingthebrandedfuel?

18%

Less Than 6 Months

6 to 12 months

59%

23%

More Than 12
Months

CustomersareusingBrandedfuelmorethan12months.Thismeansthatwhoeverisusingthebranded
fuelarehappyaboutit.

9. Question:
IfusingUnleadedPetrol,whytheyarenotusingthebrandedfuel.

9%

Expensive

7%

42%

Never Felt a Need

30%

Unavailability at
Petrol Pumps
Lack of Knowledge

Other

12%

Majorityofthemfeelthatitisexpensive
Next30%ofthemdonthaveanyknowledgeaboutthebrandedfuel.

31R.Umapathy

CustomersPerceptionTowardsBrandedFuel

10.

Question:

Ifshiftedtounleadedhowlongtheyhaveusedthebrandedfuel

4%

7%

Less Than 6 Months

6 to 12 months

More Than 12
Months

89%

Thegraphshowsthat89%ofcustomershaveusedformorethan12months.Thisshowsthatcustomers
haveshiftedafterusingitformorethan12months.

11.Question:

Thereasonforshiftingfrombrandedtounleaded?

21%
26%

No Change in
performance
Expensive

No Chage in
Mileage

Other

17%

36%

36%ofthemfeelthatitisveryexpensive
26%ofthemfeelthatthereisnoreason
21%ofthemfeelthatthereisnochangeinperform

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CustomersPerceptionTowardsBrandedFuel

12. Question:
RanktheperformanceoftheBrandedfuelagainsttheUnleadedfuel
ona1to5Scale.

35
30

25
20

15
10

5
0

Mileage
Smooth Running
Reduction of
Emission Levels
Easy Stating

Unleaded Fuel

Low Maintenance
Cost
Acceleration

Branded Fuel

RespondentswhoareusingbrandedfuelfeelthatitishighinMileage.
Nextisthattheyfeelthatitisreducingemissionlevels.

13. Question:
OverallOpinionabouttheBrandedFuel.

2%2%

12%

15%

Excellent
Very Good

23%

Fair

Good

Poor
Very Poor
46%

Majorityofrespondentsfeelthattheproductisgoodandisfarbeyondexcellence.Thismeansthatthe
productneedsachange.

33R.Umapathy

CustomersPerceptionTowardsBrandedFuel

14.Question:
Whetherthepresentusersrecommendstheproducttoothers

31%

Yes

No

69%

Majorityofthemsaythattheyrecommendittoothers.Thismeans,thecustomersareloyaltobranded
fuelandtheycontinuetousethesame.

34R.Umapathy

CustomersPerceptionTowardsBrandedFuel

CHAPTERVII
Suggestions/Recommendations:
ItisobservedthattheawarenessofPowerisnotuptothemarkevenafterits7yearsof
launch.Thisshowstheinefficiencyinadvertisingandpropagatingtheproduct.
ItisveryimportanttopropagatetheproductandalsoBrandrecallishighlyappreciated.Also
itisunderstoodthatthemajorityofthepeopleknowthruwordofmouthandadvertisement.
Henceitisrecommendedthat:

CommunicationTasks:

Identifythekeytargetaudiences:
Thekeytargetaudiencemustbeallownersofpetroldrivenvehicles.

KeyDiscriminator:
Containsadditivesthatimprovestheperformanceofengineandpreventspollution.

CommunicatethebenefitsofusingPower:
1) HighCommunicationstrategytobeadopted.Theproductshouldreachmassesandallacross
categorieswitharightmessage.TheadsofPowerarefoundtobehighlycomplicatedand
confusing.
2) Simpleadvertisements
3) ContinuityinAdvertisement
4) AdvertisementinLocalRadioandT.V
5) Highlycommunicativeadvertisements
6) Regularissueofpamphletsabouttheadvantageandfeaturesofpowertocustomersatpointof
sale.
7) Properdisplayaboutadvantagesonthecolumnsofcanopyandatingressandegress.
8) Toholdseminarsatcollegesandschoolsandeducateatstudentleveltheadvantagesofpower.
9) TotieupwithmajorbrandslikeMarutiSuzuki,Hyundai,Honda,Tataetc..
10) Increasetheavailabilityofpower.
11) Educatethemechanicsandpetrolpumpboys.
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CustomersPerceptionTowardsBrandedFuel

PROMOTIONS:
1)RegularshorttermandlongtermcampaignsatPointofsale.
2)Adedicatedboyforthepromotionandtoexplainthefeatures
3)Rewardstocustomerinformofgifts.

Incentives:

1)Asthepumpboyshaveamajorroletoplayinsellingtheproduct,boystobegivenmoreattractive
incentives.
2)MoreincentivestocustomersinformofloyaltypointsonHPsmart1cardandalsoonImint.
3)Morefreebiestobegiventocustomersonpurchase.

Pricing:

1) Majorityofthecustomersfeelthatpowerishighlypricedincomparisontounleadedandthey
arebeingsqueezedandcompanyismilkingthecustomerandenjoyingtheprofits.Asitistrue
thatthecompanycannotdecreasethepricesofbrandedfuel.Thecompanyhastopayheavy
taxesonadditivesandadditivespetrol.TheprofitonthedifferentialamountofRs2.50/,
companygainsonly0.2paisa.
Itisnotfeasibletocompanytoreducethepricefurther.However,companycanconsider
reducingthepricetobringdownthedisparity.

36R.Umapathy

CustomersPerceptionTowardsBrandedFuel

PositioningStrategyforPower:

PositioningStatement:

9 CurrentPositioning:
HighPerformancepetrolwithenergyBoostersandforHighMileage.

9 ProposedPositioning:
Highperformancepetrolthatsafeguardsengineandenvironment.

NewStrategy:

InaProductLifeCyclePLC,Powerhascrossedallfourstagesi.e.Introduction,Growth,Maturityand
Declination.TheproductnowisinthestageofDeclinationaslotofnegativismhasgoneinto
customersmindandpowerhasbecomeobsoleteinthemarket.Tocurbthis,powerhastotakeanew
birthwithanewnameandnewfeatures.Anewnamecanbegivensuchas:

9 Power91
9 Powerexcel
9 Powerfullpetrol

100
80
60
year
40
20
0
2001

2002

2007

2008

2009

ProductLifeCycle:
37R.Umapathy

CustomersPerceptionTowardsBrandedFuel

Bibiliography

MarketResearchAnAppliedOrientationNarshMalhotra
MarketingResearchAPracticalApproachfortheNewMillennium
JosephHeirJr,RobertPBush&DavidJ.Ortinar.
AdvertisingExpress
WWW.Google.com
WWW.Yahoo.com
WWW.scribd.com

38R.Umapathy