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A study on factors influencing the sales MS and HSD in Hindustan Petroleum Corporation Limited

A Project report submitted to Institute of Public Enterprise, Hyderabad in partial fulfillment Of the requirement for the award of the Degree of

POST GRADUATE DIPLOMA IN MANAGEMENT Submitted by: BHANU PRAKASH REDDY E

INSTITUTE OF PUBLICENTERPRISE OSMANIA UNIVERSITY CAMPUS HYDERABAD ± 500 007 2010± 2012

ACKNOWLEDGEMENTS

I would like to heartily thank Hindustan Petroleum Corporation Ltd. for giving me this opportunity to display my skills and learn extensively about the corporate world. It was an extremely rewarding experience for me both in terms of skills acquired and work attitudes imbibed in my first exposure to the corporate world. With deep gratitude and humble heart, I would like to thank MrYatendrapal SinghSales Officer of Hindustan Petroleum Corporation Ltd. Hyderabad for providing me this opportunity and in giving basic shape to this project. Furthermore, I would like to thank all the dealers and employees of the company, who helped me by providing their support, cooperation and guidance throughout this project. I express my sincere thanks to Dr.R.K.MishraDirector, I.P.E, Hyderabad for their invaluable suggestions. I thank K.Trivikram, PGDM Co-ordinator, I.P.E for the support provided during the course of the project. I express my deep sense of gratitude toDr. Saisailaja ,faculty of economics and Dr .MeharKaruna ,faculty of Marketing for their continuous support and guidance, without his help this project would not have materialized. I am extremely thankful for all those people who have helped me in completion of this project

BhanuPrakashReddy E

DECLARATION

I hereby declare that this project report titled ³A Study on Factors Influencing the sales of MS and HSD in Hindustan Petroleum Corporation Ltd´ submitted by me to Institute of Public Enterprise is a bonafide and original work undertaken by me. I also declare that this project report is not submitted to any other university or institution for the award of any Degree/Diploma/Certificate or Published any time.

Date: 24-6-2011 Place: Hyderabad BhanuPrakash Reddy E

Essar Oil Limited RPL .CONTENTS CHAPTER .Bharat Petroleum Corporation Limited Major Private Sector Units in India EOL .1 Introduction CHAPTER ± 2 The Future of the Oil Industry: Past Approaches. New Challenges CHAPTER ± 3 Major Public Sector Units in India IOCL ± Indian Oil Corporation Limited HPCL ± Hindustan Petroleum Corporation Limited BPCL .Reliance Petroleum Limited Chapter 4 : Data Analysis Chapter 5 : Suggestions Chapter 6 : Annexure :1-Questionnaires ABSTRACT Purpose of the study : .

The project titled ³A Study on Factors Influencing the sales of MS and HSD in Hindustan Petroleum Corporation Ltd´ involves in studying the reasons for usage of petrol and diesel from HPCL rather than IOC. and officials of BPCL . forecourt salesmen and regular customers of Hindustan Petroleum retail out let and also some information from general public . The other part of the study involves ± knowing the future supply and demand of fuels and various business options for dealers and effective usage of man and machinery and Brand preference of HPCL. And separate suggestions are given for both HPCL and dealers .IOC and Automobile showrooms and various servicing centers . Brief Methodology : The project discusses about various factors affecting the sales of MS and HSD of Hindustan Petroleum retail outlets and giving some noteworthy suggestions to the company based on some research done in order to improve the sales of MS and HSD . BPCL and other private petroleum companies by collecting information from dealers. . various factors effecting the sales are found . Findings : The various reasons for present sales . Dealers.

price. logistics and access to information. sourcing. as oil companies are investing heavily in product development and R&D to come out with fuels that would suit the requirements of Indian roads as well as comply with the emission norms.CHAPTER . It is a Mega Public Sector Undertaking (PSU) with Navaratna status. R K Swamy EX ED IOCL ³The four P's of marketing ² product. Since product differences are closed at an increasing speed and many companies try to win the battle for customers by price reductions. place and promotion ² were the corner stones of building a brand in the past. But with other players in market there is a need for brand building´. That means it Becomes more difficult for products and services to differentiate themselves from other offerings than ever before. products and services tend to become commodities´. Today. communicating and Delivering value to the consumer (CCDV)´. It realized the need for brand-building.1 INTRODUCTION Theoretical Frame Work: ³In today¶s globalizing economy competition is getting more and fiercer. Philips Kotler NEED FOR STUDY HPCL is one of the major integrated oil refining and marketing companies in India. Dagmar Recklies Management Guru ³In a deregulated scenario the industry is going to be more competitive more responsive consequently more efficient´. one needs to redefine the role of marketing as creating. Many products and services face new competition from substitutes and from completely new offerings or bundles from industry outsiders. . S R Chudhary C&MD HPCL ³So far the need for advertising was not felt because the environment was not competitive. Not only is the number of competitive offerings rising due to globalization of production.

To obtainthe factors influencing the sales of MS and HSD. To find out the reasons from customers why theyopting other filling stations other than clubHp retail outlets. SCOPE OF STUDY The fuel industry in India just realized the importance of marketing their products . It explains the relative changes in consumption and purchase of fuels with various services in filling station .This project helps the marketing department to improve its relationship with customers by learning their problems and proving solution to the problems. 4. . The challenge is to bring the customers to particular filling station by providing different fuelling experience . 2. The study also concentrates on finding out the preferences of the customers with respect to offers that are being offered. OBJECTIVES 1. To know whether automobile showrooms & service centers are suggesting HPCL fuels to customers. To analyze various promotional strategies followed by IOCL & BPCL to enhance the sales of their branded fuels. 3.The study covers all categories of customers and employees in the outlets to know various reasons that influence the fuelling habits of customers . Fuel is a form of commodity . It is very difficult to describe the characteristics and uses of fuel .The project was conducted in the city of Hyderabad in HPCL retail outlets.The study is made to analyze the various factors that influencing the sales of MS and HSD .

Local mechanics . Castrol bike zone b. Forecourt sales man . Local mechanics . Chevrolet f. Bajaj c. Dealers . Maruti a.8 respondents 8.4 respondents 5.100 respondents 2. Hero Honda b. Tata motors b. Sample selected : 1. Ford motors c. The study also covers automobile showrooms & service centers perceptions in suggesting HPCL fuels to customers. Tvs e. Service stations Included all branded showrooms and local servicemen a. Dealers . Honda d. All major automobile showrooms& their service centers a. Hyundai 9. General Public . Carnations c. Bosch 10. Honda motors d. RESEARCH METHODOLOGY Research methodology used was descriptive research .10 respondents 6.250respondents 3.35 respondents Secondary Data .various promotional strategies implemented by IOCL & BPCL to enhance their sales.35 respondents 4. And sample includes various respondents related to Oil and Automobile industries and customers . Customers who are visiting Club HP . Other petrol bunk 7.The analysis gives the required conclusions to find gap between perceived service and expected service and suggestions to fulfill the gap .

c) Performance and strategy reports of petroleum companies. 3. Less time was given by the customer to interact.To collect the secondary data the corresponding database were checked and the necessary information was collected. In certain outlets of Hyderabad and Secunderabad. Chapter 3 : Literature review of various petroleum marketing companies Review of all profiles Indian Oil companies . b) Research reports. 2. Project Boundaries The study was conducted 1. For a period of 2 months. ORGANIZATION OF THE STUDY REPORT : Chapter 2 : Global Oil scenario Discusses about the World¶s oil sector and the challenges and optimism about the future . a) Ministry of petroleum . d) Articles. e) Newspaper articles f) Online journals.

we must look closely at several key factors. New Challenges Global scenario : In order to see how trends have worked with and against each other in shaping the destiny of oil and gas. any business. for that matter. or. It's also the reason we are so optimistic about the future. That element is the demand for what we produce and sell. .2 The Future of the Oil Industry: Past Approaches. Chapter 5 : Suggestions Suggestions include the gaps between the perceived service . We'll start by first examining the single most important element of our business.Chapter 4 : Data Analysis A clear analysis about various factors influencing the sales of MS and HSD of HPCL filling stations in relation with other filling stations . Chapter 6 : Annexure Questionnaires expected service and CHAPTER .

we expect that by 2010 about half the daily volume needed to meet projected demand is not on production today ± and that's the challenge facing producers. demand is expected to rise through the year 2011 at a rate of about 2 percent per year for oil and 3 percent per year for gas. To put a number on it. This is true even with an outlook that assumes significant energy efficiency improvement. The cost of doing so could reach $1 trillion. the demand growth might be even greater. This means industry may need to add some 80 million oil-equivalent barrels per day to production by 2010 to meet projected demand. Perhaps most important. Much of this projected growth is expected to occur in the developing countries that still have very low levels of energy use per capita. Without that improvement. its ease of use and its flexibility to enhance our lives in multiple applications. however. . existing production declines. its comparatively low cost. This projection reflects the significant benefits of hydrocarbon energy ± namely.As Figure below indicates. is the fact that oil and gas consumption is essential to sustaining economic growth in the industrialized world and is key to progress in nations working their way toward prosperity. or about $100 billion a year. That's substantially more than industry is spending today. The catch is that while demand increases.

have led to increased supplies. the area under the discovery curve over the entire time period since 1900 is still over twice that under the demand curve. then took off after World War II and continued to rise as it fueled unprecedented economic growth. technological advances in exploration have been matched by technology advances in development. as Figure above indicates. The Future Role of Petroleum . However. driven by large discoveries in the Middle East. We learn some very important information by comparing the 100-year demand curve with the volumes of oil discovered during the same period of time .The growth in oil demand remained flat through the first five decades of the last century. Nonetheless. Both have been key factors in raising production volumes. Russia and on the North Slope of Alaska. but demand resumed its growth by the mid-1980s. In recent decades. coupled with the ongoing increases from OPEC and vigorous exploration and production in other parts of the world. resource additions have lagged behind demand since the early 1980s. There was a temporary stall at the time of the second oil crisis. Obviously. The greatest exploration success occurred prior to the creation of OPEC. new discoveries in Africa and parts of the former Soviet Union.

. Another trend is much clearer than price. One safe bet is that demand for oil and gas will continue to increase. That challenge is to ensure that both new and discovered resources can be produced in an economically and environmentally sound manner to meet increasing demand and offset natural field decline. while developing new technology that we can control. Industry has made significant new discoveries in the last few years. Maintaining this record of exploration success will require the development of new and better technology. But they are increasingly being made at greater depths on land. We also hope to see a continued increase in exploration success and production as additional areas are opened for exploration and as our technologies evolve. as they are expected to remain the leading energy sources for some time to come. is technology that directly detects and distinguishes the presence of hydrocarbons. we must push ahead to keep production costs low.Success in the future of oil and gas will require the continued adaptation of a complex business model to unforeseen challenges. There is no way to predict it or control it. Price is a question mark. We've already shown this can be done. but the pressure to maintain that performance will only intensify because the absolute requirements are higher. Major Challenges Let's begin to wrap this up with a summary of the major challenge facing the industry. Whatever the case. A key example. and at more substantial distances from consuming markets. price could grow substantially or not at all. Depending upon whom we choose to believe. It's getting harder and harder to find oil and gas. and one of today's more exciting prospects. in deeper water at sea. as usual.

Further. thanks to the mutual benefits energy development creates and the fact that we make good things happen in developing nations. of course. That's especially true for gas. This cooperation has been tested and proven throughout our history. new supplies are located at increasing distances from consuming markets. Reasons for Optimism We can be optimistic as well about maintaining constructive relationships among producing countries. Concerns over potential climate change have led to demands for greater control of energy use and could well impede our ability to produce adequate amounts of energy. consuming nations and energy companies. Periodic disagreements may arise. CHAPTER-3 Literature Review Major Public Sector Units in India IOCL ± Indian Oil Corporation Limited .Environmental fears have already led to restrictions to explore in places such as Alaska and other parts of the world. this factor is not as controllable as technology. Finding economic ways to solve this problem is part of the challenge ± and an area of great competition within our industry. To be sure. which. but one very positive factor is that all involved have an interest in ensuring the adequate production of energy. but we have established an excellent record. the public benefits from.

It is the leading Indian corporate in the Fortune 'Global 500' listing. Reach and Network IndianOil and its subsidiary (CPCL) account for over 48% petroleum products market share. pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas. spanning 10. Petrochemicals and Natural Gas.30 million barrels per day approx. R&D Center and Business Development ± E&P. IndianOil is simultaneously scouting for new business opportunities in the energy markets of Asia and Africa.IndianOil is India¶s flagship national oil company with business interests straddling the entire hydrocarbon value chain ± from refining. 10. Having set up subsidiaries in Sri Lanka. IndianOil has been helping to meet India¶s energy demands for over half a century. . .7 million metric tonnes per annum (MMTPA. IndianOil is currently forging ahead on a well laid-out road map through vertical integration² upstream into oil exploration & production (E&P) and downstream into petrochemicals ± and diversification into natural gas marketing and alternative energy.899 km and the largest in the country. Marketing. economical and environment-friendly manner. To achieve the next level of growth.000-strong workforce. Mauritius and the United Arab Emirates (UAE). ranked at the 125th position in the year 2010. operations are strategically structured along business verticals . 1. With a corporate vision to be the Energy of India. At IndianOil. 271. IndianOil closed the year 2009-10 with a sales turnover of Rs. The IndianOil Group of companies owns and operates 10 of India's 20 refineries with a combined refining capacity of 65. IndianOil¶s cross-country network of crude oil and product pipelines. Pipelines.). With over 34.074 crore and profits of Rs.Refineries.e. besides globalization of its downstream operations.i. meets the vital energy needs of the consumers in an efficient.8% national refining capacity and 71% downstream sector pipelines capacity in India. 34. marketing of natural gas and petrochemicals.221 crore.

with a capacity of 335 TMT. HPCL. In addition. Lube and LPG Distributorships. a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. It is a Mega Public Sector Undertaking (PSU) with Navaratna status. Validating the trust of 56. Indane has earned the coveted status of µSuperbrand¶ in the year 2009.306 Millions) during FY 2009-10. SERVOlubricants.14. HPCL is a Fortune 500 company. XtraPremium petrol.889 Crores (US$ 25.08. XtraMile diesel. (East Coast) with a capacity of8. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production.3 MMTPA. HPCL ± Hindustan Petroleum Corporation Limited HPCL is one of the major integrated oil refining and marketing companies in India. HPCL is constructing a refinery at Bhatinda. Inland Relay Depots & Retail Outlets. HPCL holds an equity stake of 16. 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.It has a portfolio of powerful and much-loved energy brands that includes IndaneLPGas. over the years.8 million households. Pipeline networks.95% in Mangalore Refinery & Petrochemicals Limited. with an annual turnover of Rs. HPCL operates 2 major refineries producing a wide variety of petroleum fuels & specialties. HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards.5 Million Metric Tonnes Per Annum(MMTPA) capacity and the other in Vishakapatnam. 1. Ltd.599 Crores and sales/income from operations of Rs 1. has moved from strength to strength on . one in Mumbai (West Coast) of 6. having about 20% Marketing share in India and a strong market infrastructure. etc. Aviation Service Stations. in the state of Punjab. LPG Bottling Plants. as a Joint venture with Mittal Energy Investments Pte.

7 crore in the corresponding period last year. has informed BSE in a filing that it is back in the black by registering a net profit of Rs. and employees ³Best in Class´ practices. Lube Shoppes. with Global Fortune 500 rank of 287 (2008). On the financial front. . Fleet card etc. Mumbai. against Rs. 3. LPG Distributors.066. 26. BPCL is often referred to as an ³MNC in PSU garb´. BPCL's growth post-nationalization (in 1976) has been phenomenal. from petrochemicals and solvents to aircraft fuel and specialty lubricants and markets them through its wide network of Petrol Stations. The refining capacity steadily increased from 5. Kerosene Dealers. its interests are in petroleum sector. It is involved in the refining and retailing of petroleum products. One of the single digit Indian representatives in the Fortune 500 & Forbes 2000 listings. The company had a net loss of Rs. BPCL has Refineries at Mumbai and Kochi (Kochi Refineries) with a capacity of 12 Million Metric Tonnes (MMT) and 7.7 crore in the same quarter last year. one of the largest fuel retailers. BPCL .Bharat Petroleum Corporation Limited It is one of India's largest PSU companies.6 crore during Q1 FY 200910. 2687 Crores in 1984-85 to an impressive Rs 1. BPCL¶s total income has decreased to Rs.5 MMTPA respectively for refining crude oil BPCL's subsidiary at Numaligarh has a capacity of 3 MMT. besides supplying fuel directly to hundreds of industries. Bharat Petroleum Corporation Limited (BPCL).Its corporate office is located at Ballard Estate.12 crore for the first quarter ended June 30.all fronts. 614. 9297.8 MMTPA presently.5 MMTPA in 1984/85 to 14. and several international and domestic airlines.195. Bharat Petroleum is considered to be a pioneer in Indian petroleum industry with various pathbreaking initiatives such as Pure for Sure campaign. 2009. Bharat Petroleum produces a diverse range of products. the turnover grew from Rs. As the name suggests.16.428 Crores in FY 2008-09. It is considered a pioneer in marketing initiatives. 1. Petro card.

In the year 1995 EOL has entered into a contract with Essar Gulf FZE (EssarGulf). EOL secured international drilling contracts against international competitive bidding. a company incorporated as a Public Limited Company during the year 1989. the Refinery and Marketing . a company based in UAE for supply of imported equipment. such as Exploration & production.Retail Business. EOL has entered into an MOU with EssarGulf for the supply of Crude Oil. In the year 1993. To serve retail customers under the brand 'Essar Oil'. founded by Dhirubhai H. Ambani (1932-2002).Major Private Sector Units in India EOL . with businesses in the energy and materials value chain. Essar's oil refinery at Vadinar in Jamnagar. The Exploration and Production (E&P) business of the company has participating interests in several hydrocarbon blocks for exploration and production of Oil & Gas.Reliance Petroleum Limited The Reliance Group. large countrywide distribution network of Retail Outlets. The refinery is configured to produce Euro II and Euro III grades of Petrol and Diesel with capacity of 10. engaged in preliminary activities relating to bidding for Oil & Gas fields as well as advising the Energy. Gujarat is ideally located in India's West Coast in close proximity to the crude rich Gulf States. The Exploration and Production Division was set up for the purpose of Oil & Gas exploration activities in the year 1990. RPL . The company became a wholly owned subsidiary of Essar Gujarat Limited in March of the year 1992 and entered into an MOU for operation and maintenance services for the Refinery with an affiliate company. and Cachar in Assam (all in India). namely in Mehsana in Gujarat.Essar Gujarat Limited proposed to transfer the entire shareholding of Essar Oil Limited in the year 1994 to Essar Investments Limited. EOL deals with its three segments of business. Group's annual .5 million tonnes per annum (MTPA) EOL is one of the few private companies permitted to market petroleum products in India. EOL has a modern. is India's largest private sector enterprise. Essar Refineries Limited.Essar Oil Limited Essar Oil Limited (EOL). Vadinar is an all-weather deep-draft natural port.

plastics. when it operated in the country as the pioneering oil distribution company. The Shell Group¶s presence in India goes back over 75 years. and operates in more than 140 countries across the world. Shell had revenues of over US$ 201 billion in 2003. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. CHAPTER -4 Hindustan Petroleum Corporation Limited . petroleum refining and oil and gas exploration and production . Downstream Gas and Power. Reliance Industries Limited. Oil Products. in 1928. fibre intermediates. is a Fortune Global 500 company and is the largest private sector company in India. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail limited) and Reliance Industrial Infrastructure Limited. Reliance pursued a strategy of backward vertical integration . through Burmah Shell. The Group exports products in excess of US$ 20 billion to 108 countries in the world.in polyester. The flagship company. Shell India Private Limited The Royal Dutch/Shell Group ('Shell') employs over 119. Starting with textiles in the late seventies. Chemicals and Renewable.to be fully integrated along the materials and energy value chain. petrochemicals. Shell has five core businesses: Exploration and Production.revenues are in excess of US$ 34 billion.000 people worldwide and is a leading energy company of the world. an alliance between the Burmah Oil Company and Asiatic Petroleum (India).

focusing on enhancement of productivity. along with its joint ventures. . health and safety norms and in employee welfare and relations Roots of HPCL 1952: The Company was incorporated in the name of Standard Vacuum Refining Company of India Limited on July 5. caring for customers and employees. is taken over by the Government of India and subsequently merged with HPCL in 1978. caring for environment protection and cultural heritage." Vision To be a World Class Energy Company known for caring and delighting the customers with high quality products and innovative services across domestic and international markets with aggressive growth and delivering superior financial performance. 1962 the name was changed to ESSO Standard Refining Company of India Limited. are taken over and merged with HPCL.Mission "HPCL. environment. will be a fully integrated company in the hydrocarbons sector of exploration and production.the concessionaries of HPCL in the domestic LPG market. quality and profitability. 1952 1962: On 31st March. 1974: Hindustan Petroleum Corporation Limited comes into being after the takeover and merger of erstwhile EssoandLube India Undertaking 1976:Caltex Oil Refining Ltd. The Company will be a model of excellence in meeting social commitment. refining and marketing. 1979:Kosan Gas Company. It will also attain scale dimensions by diversifying into other energy related fields and by taking up transnational operations.

14. Ltd. The refining capacity steadily increased from 5. In addition. one in Mumbai (West Coast) of 6. having about 20% Marketing share in India and a strong market infrastructure.HPCL thus comes into being after merging four different organisations at different points of time. Profile HPCL is one of the major integrated oil refining and marketing companies in India. Products & Services of HPCL . over the years. the turnover grew from Rs. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. (East Coast) with a capacity of8. HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards. LPG Bottling Plants.3 MMTPA.08. in the state of Punjab. Lube and LPG Distributorships. On the financial front.889 Crores (US$ 25. as a Joint venture with Mittal Energy Investments Pte.16. HPCL holds an equity stake of 16.306 Millions) during FY 2009-10. HPCL is a Fortune 500 company. has moved from strength to strength on all fronts.428 Crores in FY 2008-09.5 Million Metric Tonnes Per Annum(MMTPA) capacity and the other in Vishakapatnam. Aviation Service Stations. 1.599 Crores and sales/income from operations of Rs 1. Inland Relay Depots & Retail Outlets. with an annual turnover of Rs. HPCL operates 2 major refineries producing a wide variety of petroleum fuels & specialties. HPCL is constructing a refinery at Bhatinda.95% in Mangalore Refinery & Petrochemicals Limited. It is a Mega Public Sector Undertaking (PSU) with Navaratna status. a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. 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. 2687 Crores in 1984-85 to an impressive Rs 1.8 MMTPA presently. with a capacity of 335 TMT. Pipeline networks. HPCL.5 MMTPA in 1984/85 to 14.

2006.91 2. ATF.2005.698 2.2007.5 MMTPA and 7. viz. SKO. LPG. Our Marketing Network 2009. HSD. HPCL has successfully contributed close to 20% of India's total refining requirements. HPCL was one of the first companies to understand the nation's energy requirements and take necessary measures to fulfill the expectations. churning out a wide range of petroleum products. Over the years HPCL's capacity of production has expanded massively through various upgradation initiatives. Bitumen etc.39 2. The Refineries known for the full utilization of capacity and world class performance are the foundations of HPCL's successful journey towards meeting India's energy requirements. MS.28 2. specialties and greases as per BIS standard.17 The strengthening of the marketing network over the years has lead to dominance in the market reflected in its growth and leading to best quality of service. The consistent maintenance of standard has fetched the two refineries numerous awards.52 2. Its increasing infrastructure facilities are due to the .2008.Refineries HPCL has two refineries located in Mumbai (West Coast) and Visakh (East Coast) with capacities of 5.5 MMTPA respectively . So far both the refineries have maintained their capacity utilization above 100% of installed capacity.200410 09 08 07 06 05 Regional Offices 101 90 91 86 85 85 Terminals/Installations/TOPs 42 42 42 37 36 36 Depots 100 100 93 93 92 100 LPG Bottling Plants 44 43 43 42 41 40 ASFs 32 21 16 13 13 10 Retail Outlets 9140 8539 8329 7909 7313 6667 SKO/LDO Dealers 1638 1638 1648 1648 1648 1648 LPG Distributors 2395 2250 2232 2238 2202 2153 LPG Customers (in crores) 2. and over 300 grades of lubricants. The refineries are supervised as per the international benchmarks of quality.

Lube Filling Plants and Aviation Service Facilities (ASF) contributes to India's growth every year. 31. transparent and ethical manner. LPG Bottling plants. the turnover grew from Rs. Aviation Service Stations. Retail SBU developed a vision which was co-created by the employees of the SBU. cost optimization. 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. y y Competent. and Inland Relay Depots & Retail Outlets. y Customer delight at the point of interface. LPG Bottling Plants. Sense of pride and mutual trust and camaraderie. Based on the vision.802 Crores in FY 2008-09. Sustained profitability through increased sales. Hindustan Petroleum Retail Outlet Profile Vision These are the SBU developed visions through ACE (Achieving Continuous Excellence) y y Highest performer in sales growth over industry. ARB earnings. . depots. Conducting business in a fair. A massive infrastructure comprising two cross country pipelines and an extensive network of terminals.successful realization of targets and sustained quality of service and customer relations. branded fuels and branded lubricants. 2. committed and empowered employees. Fulfilling the stated and latent needs of the customer through innovative products and services. 2687 Crores in 1984-85 to an impressive Rs 1. Rural.wheeler/3-wheeler and Car segments to develop a customer centric dynamic business strategy. finance and HR department closely interacted with customers in various market segments such as Highway. cross functional sub-groups of Officers from marketing. Lube and LPG Distributorships On the financial front.

To ensure that consumers get contamination free products. y y A number of 645 new retail outlets were commissioned. Filter Paper Testis used to check quality of petrol. Good Fuel Promise A quality product is one that complies with prescribed specifications and is free from any contamination or adulteration. Lubricants available at retail outlets are factory sealed and packed. Continuous efforts of the SBU have ensured that HPCL now have a control of 76% of our network which is highest in the country. As a part of ongoing³Focus 500´ program. sales officers carry out regular checks at all the outlets to prevent any malpractices. CHAPTER-5 SEGMENTATION OF CUSTOMERS COMING TO FILLING STATION 1.Performance Profile Highlights: y Retail Business Unit recorded a growth of 4. In addition.9% negative growth in HSD. several retail outlets have been modernized during the year. personnel at our outlets check the products regularly. Upwardly Mobile .5% in MS and 0. y y A new visual identity program ³Project Akarshan´ has been rolled out.

At the end of long stretch of driving. Behavior& life style y Looks for convenience y look for service which save time y use credit card y Like good looking and new age things Vehicle Usage y Has fairly new vehicle y Uses vehicle for work. Behavior and Lifestyle y The facilities like food. . entertainment & weekend outings Fuel/Outlet related Behavior y y y y Average to high fill size Is in a hurry More likely to use premium fuel patronizes a particular outlet Stereotypes y Senior corporate Dealer. hard working and competitive people who strive to do well in life. y Young entrepreneur. They are brand conscious and are willing to pay a premium if they are convinced of the benefits. comfortable place to rest and relax. place to refresh y Needs courteous behavior y Little or no education. y Makes a living by driving.The upwardly mobile are smart. but also look out for better performance of their trucks. Open to new and better things in life they are optimistic. They look forward to meeting familiar faces at a pump or a Dhaba and like a little entertainment at these halts-like a TV programs . independent. Demographics y Male likely to be middle aged or old Attitude. movie or music. 2. Typical Profiles: Demographic y young and middle-aged y well educated y Higher than average income Attitude. They not only want the best deals on fuel and best foods. They believe in working hard and enjoying life at the same time. they look forward to safe parking. homely food and a clean. Highway Raja The highway Rajas are truck drivers of transport companies of drivers of self-owned trucks moving between different cities on highways. y Earns low to average income.

Fuel/Outlets related behavior Stereotypes Gurmeet-Driver company. of a transport
y Fill size is normally large y Prefers to fill at the start of the journey y At times has a audit arrangement with dealer.

Walk Ins The walk-ins are passersby who come to the outlet looking for things other than fuel. They may come to use ATM or the convenience store and might use other facilities on impulse. They live or work in the neighborhood of the outlet and seek quick and convenient solutions.

Attitude, Behavior & Lifestyle y Might pay by debit/credit card. y Is not very price sensitive. y Needs courteous behaviors.
Demographics y Could be of any age, gender, occupation y Likely to have moderate to high income y Likely to be brand conscious and loyal.

Fuel/outlet related behavior
y Just walks into an outlet for using the ATM or any other services.

Stereotypes
y Teenager walking into the outlets for a packet of chips y

Driver Saheb The Driver Sahebs drive the city tourist vehicles, auto rickshaws, buses, taxis, LCGs and HCGs. They may own their vehicles or could be just the drivers. For some of them, there is no predictability in their income but they are street smart and try to get lowest price on everything. Driving being the source of income for them, they want to maximize their earning from their

vehicles. They are always in a hurry to get on their next trip and many of them fill fuel frequently during the day. Demographics y Male of any age. y Little or no education. Attitude, behavior & Lifestyle y Largely pay by cash. However there is a need for credit. y Is price sensitive. y Gets attracted to promotions.
y Drive a commercial vehicle within the city

Vehicle Usage y Is in the vehicle for long hours.

Fuel/outlet related behavior Stereotypes y Fill frequency is high. y Fill size is low for small vehicles.
y Fuels at the start of the day

y Ahmed-Autorickshaw owner driver. y Bhela ± Drivers a tourist van around the city.

Fleet Owner The fleet owners are those who have a transport business with multiple vehicles in their fleet. They may be operating a fleet of cars, buses, trucks or tankers. Since they do not travel with their vehicles, they are carried about the well being of their fleet and the drivers along the way. Also, industrialist who buy fuel for their factories from an outlet from a part of this segment. They need credit for the working capital of their business, are very price conscious and want good quality products and service. Attitude, Behavior & Lifestyle Demographics y Likely to be middle aged or old . y Dealers a fleet of vehicles. y Income likely to be average to high. y Is price sensitive. y Is worried about eroding profits in business.

Fuel/Outlet related behavior Vehicle Usage y Vehicles is not driven by self ± it is driven by haired drivers. y Concerned about the safety vehicles and comfort of the drivers.
y Fill size is normally large y Q and Q and good performance of the fuel is very important

Stereotypes y Jaidev : Owner of a truck fleet y Ramesh : Owner of a car fleet Gen Next The Gen Next Segment companies students. They are dependent on their parents and get a limited sum of pocket money to spend. These well-informed customers aspire to buy the latest accessories in the market and often make impulse purchases. They want to be cool and hang out at trendy, places. Their vehicle is a prized possession and they love to maintain it. Some of them also drive their parents cars. Attitude, Behavior & Lifestyle y Likely to pay cash or use a pre-paid card.
y Spends pocket-money on fuel, books

Demographics y Young male or female.
y Likely to be student in college

y Is attracted to good looking things. Vehicle Usages y More likely to ride a two-wheeler y Likes to ride a two-wheeler. y Likes to maintain the vehicle.

Fuel/Outlet related Behavior y Small fill size. y Fills while going to college or while returning home. y Likely to frequent the same outlets.

Stereotypes Hum owning/driving a vehicle. y StudentsLog

Hum log are prudent and practical people. They have an average income, are cautious about spending and are very meticulous about the way they do things. They make decisions only after carefully considering all their options. They deliberate over each purchase, are very quality conscious and want value for money.

y Likely to patronize an outlet. Vehicle Usage y Uses vehicles for work or for family outing. nearing retirement. y Works for value for money and is not very brand conscious. Attitude. DATA ANALYSIS CONSUMER HABITSIN FUELLING THEIR VEHICLES . y Some education or well educated. y Shopkeeper with a small shop. Stereotypes y Government officers. Behavior & Lifestyle y Likely to pay by cash or pre-paid card. y Has a small business or is salaried. Fuel/Outlet-related behavior y Low to average fill size. y Dealer. y Works for quick fill and wants good mileage and Q and Q.Demographics y Likely to be young and middle aged.

2Wheer customers 3 wheeler customers 4 wheeler customers Customers having both 2&4 wheeler vehicles Customers having both 2& 3 wheeler vehicles Customer Choice towards good Quality of fuel : .Customer behavior is analyzed by taking survey with online questionnaire with 100 respondents . c. Data Analysis : Total Respondents participated can be segmented in to a. b. e. d.

Customer Choice towards good Quantity of Fuel : Factors influencing to move to particular filling station : .

Loyalty Cards by Filling stations : Mode Of Payment : .

Acceptable waiting time : Services Expected to have in filling station : .

The above conclusions are used in analyzing various parameters in coming pages .  39% of the people want to become the regular customers and use the benefits of being the regular customer . AIR .  The avg waiting time for 2 wheelers is 5 mins and for 4 wheelers and 3 wheelers is 10 mins . Drinking water and pollution check are the major preferred service by most of the customers .  ATM .Conclusions :  Most of the four wheeler customers also own a 2 wheeler . and HPCL stood at 2nd place in term of both quality and quantity . before becoming regular customer to filling station they want to check the mileage .  Mode of payment is mainly done by cash .  For both quality and quantity customers are preferring BPCL . Service analysis of Club HP Filling stations : .  40% of the people are very calculated about their filling habits . The credit and debit card holders in India touched to 40 crore in 2010 .

 Standard Operating Procedures are following in this station .Lubes  Services provided : Air filling .SrinivasRao  Staff : 8  Products available : MS.  Regular meetings are conducted to motivate and to increase the efficiency of forecourt salesman .  There are no promotional activities to increase the sales .LAXMAIAH AND BRO ± LB NAGAR About the filling station :  Dealer :Mr K .e. . LPG . HSD . 1 day work and 1 day Leave . Toilets .  No display Boards to regulate the traffic and to show safety measures . Observations :  Dealer is regularly available in filling station  Customer care with good hospitality is maintained this filling station  Dress code is given and strictly followed by forecourt salesman . ATM .  There is a record for regular customers of HSD .  Credit is given to Fleet owners who visit regularly to this filling station . and worker is working for 24 hours on his working day  2 Hoarding in entry and in exit  Workers are getting commission on sale of MS and HSD ..Windshield  Staff is working on alternate day basis i. Drinking water .  Generator is old and it causing the problem when there is no power .

72 4.22 1.67 4.75 Customer Orientation Credit Extension Business Values 4.78 4.  It is located in junction and can satisfy both metro and highway traffic .04 LOCATION : .(Customers and Employees) by HPCL KSF (Key Success Factor ) score of Laxmaiah& Bro filling station : Net KSF Score Benchmarking National %tile rank Zone %tile rank Region %tile rank Dealer Ratings Customer (Fleet + Retail) 25.50 4.56 0.  Stock levels are regularly checked to avoid the dry outs in filling station .58 4. Dealer Scores evaluation .01 29.00 4.61 KSF Statement Dealer Employee Net KSF Score Dealer Commitment & Involvement 4.08 33.31 Employee Orientation Segment KSF Score 4.67 4.04 4.00 3.45 4.00 4. All the staff has undergone training for MS and HSD .00 3.67 3.78 4.

406 ) Hayatnagar ( Population ± 35.817 ) Karmanghat ( Population ± 31. As the fuel is a daily need . most of the people prefer to go for the filling station which is nearby . So it can be said that the LOCATION carries more importance than any other factor .143) .For success of filling station place is the prime factor .685 ) Mansoorabad ( Population ± 30. Online survey conducted says that 45% of the people go to any petrol bunk that is available .718 ) Vanasthalipuram ( Population ± 33.467 ) Kothapet ( Population ± 33. And they are not particular about the amenities and other services at that filling station . LOCATION : L B Nagar Ring Road Areas from which customers may visit this filling station       Uppal ( Population ± 40.

e. Guntur . as NH 9 has large no.  Filling station located around the developing areas like UPPAL .  This filling station is located near high traffic area . which run from Kothapet to PedhaAmberpet . KOTHAPET . others going from NH 9  Collage buses . and Fleet owners moving from HYDERAB to VIJAYAWADA and HYDERABAD to NAGARAJUN SAGAR .  Large no. MBA and MCA collages . of 7 seated autos move in this place where as these autos banned in other locations by RTA HYDERABAD .  In addition with regular customers there are other specific customers like 7 seater autos . So there is huge scope in the future . college and school buses ..  7 seated autos . of college buses made LB Nagar as their center .  Large no . Conclusions :  This filling station has many advantages than other filling stations with respect to LOCATION  The filling station is located in one of the busiest areas of HYDERABAD.  And the filling station is located just beside the LB Nagar Ring Road which is well known land mark to the people of Hyderabad . Location benefits :  As the Filling station is located at center of many areas it has great scope for covering many customers  It is can attract the customers of 2 highways i. HAYATNAGAR . The analysis of this petrol bunk is given below : . The level of traffic may vary with peak and non-peak times . Hyderabad to Vijayawada and Hyderabad to NagarjunaSagar .  Near entry and exit of the filling station there is huge traffic of both people and vehicles because of BUS STAND where district buses and other private travel buses made it as center . Traffic Management :Traffic is one of the major problem faced by retail filling stations . So people may not feel like take a break for fuel as they also have other options ahead . And the vehicles moving from Hyderabad to VIJAYAWADA . of engineering . CHALLENGES :  LB Nagar and surrounding areas have good number of other filing stations .

Because 2 wheelers are not ready to wait for longer time . . Here there are total of 6 dispensing Units 2 for LPG .  And most of the fleet owners they are not particular about the waiting time . as most of the fleet owners are regular customers who fill on credit . as from the sample collected it is observed that 2 wheelers do not want to wait for more than 5 mins on an average .  And 3&4 wheelers are likely to wait for 10-12 mins as their fuel need per turn is much larger . 2 for MS and 2 for HSD  The traffic levels are measured differently for 2 wheelers . 3&4 wheelers .

 For four wheelers it is measured by taking the no.of vehicles fuelled 10mi ns 10mins 10mins 10mins 10mins 10mins 10mins 10mins 4wheelers No.  It is done for 7 time intervals and avg. of vehicles entering into the station per 5 mins and no. of vehicles are filled with fuel per 5 minutes . is calculated .Traffic near Petrol dispensers :  For two wheelers it is measured by taking the no.of vehicles fuelled 4wheelers No.of vehicles fuelled 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 . of vehicles entering into the station per 10 mins and no. PEAK TIME Petrol Dispensing Unit 1 : Workers : 2 2wheelers entering No. of vehicles are filled with fuel per 10 minutes .of vehicles fuelled 5mins 13 11 5mins 14 10 5mins 14 11 5mins 11 10 5mins 12 10 5mins 15 11 5mins 12 11 Avg ~13 ~10 Time taken by dispenser to fill 1ltre ± 6-7seconds 10mins 10mins 10mins 10mins 10mins 10mins 10mins avg 3 2 3 2 1 1 0 0 2 1 0 0 2 2 ~2 ~1 Petrol Dispensing Unit 2 : Workers : 2 5mi ns 14 11 5mins 12 10 Time taken by dispenser to fill 1ltre ± 6-7seconds 5mins 12 10 5mins 14 11 5mins 12 10 5mins 11 9 5mins 13 11 avg ~13 ~10 2wheelers entering No.

OFF-PEAK TIME : Petrol Dispensing Unit 1 : Workers -1 5mins 9 9 5mins 11 8 5mins 11 9 5mins 12 8 5mins 6 7 5mins 11 10 5mins 8 8 avg ~10 ~8 Time taken by dispenser to fill 1ltre ± 6-7seconds 2wheelers entering No.of vehicles fuelled 10mins 10mins 10mins 10mins 10mins 10mins 10mins 10mins 2 2 1 1 2 2 0 0 0 0 1 1 0 0 ~1 ~1 Petrol Dispensing Unit 2 : 2wheelers entering No.  It is done for 10 time intervals and avg. of vehicles entering into the station per 10 mins and no.of vehicles fuelled 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Traffic near Dispensing Units:  For four wheelers it is measured by taking the no. .of vehicles completed filling 4wheelers 5mins 0 0 5mins 0 0 5mins 0 0 5mins 0 0 5mins 0 0 5mins 0 0 5mins 0 0 avg 0 0 10mins 10mins 10mins 10mins 10mins 10mins 10mins avg No.of vehicles fuelled 4wheelers No. is calculated . of vehicles are filled with fuel per 10 minutes .

of vehicles fuelled 2 2 2 2 3 3 4 3 4 4 avg ~3 ~3 OFF-PEAK TIME : Diesel Dispensing Unit 1 : Time taken by dispenser to fill 1ltre ± 6-7seconds Workers :0 10mins 10mins 10mins 10mins 10mins 4wheelers No.of vehicles fuelled 1 1 1 1 0 0 0 0 1 1 0 0 ~1 ~1 .PEAK TIME Diesel Dispensing Unit 1 : Time taken by dispenser to fill 1ltre ± 6-7seconds Workers -1 10mins 10mins 10mins 10mins 10mins avg 4wheelers No.of vehicles fuelled 0 0 0 0 0 0 0 0 0 0 avg 0 0 Diesel Dispensing Unit 2 : 10mins 10mins 10mins 10mins 10mins 10mins avg 4wheelers No.of vehicles fuelled 3 3 4 3 4 3 6 4 5 3 ~5 ~3 Diesel Dispensing Unit 2 : Time taken by dispenser to fill 1ltre ± 6-7seconds Workers -1 10mins 10mins 10mins 10mins 10mins 4wheelers No.

PEAK TIME : Dispenser : (LPG) Workers :1 3wheelers entering No.of vehicles completed filling 10mins 10mins 10mins 10mins 10mins avg 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .of 3 vehicles completed filling 4wheelers 4 No.of vehicles completed filling 4wheelers No.of 3 vehicles completed filling 10mins 10mins 10mins 10mins 10mins avg 3 4 3 4 3 ~4 3 3 3 2 ~3 5 3 4 2 5 3 4 3 ~5 ~3 Dispenser : (LPG ) Workers :0 3wheelers entering No.

Customer analysis : Customer Segmentation 23% 13% 7% 3% 23% 17% 14% Vehicle Segmentation: .

No. of regular customers 87% 13% satisfied with Trafic management dissatiffied with Trafic management Is there anyone suggested to use the HP fuel ? : No one suggested Through promotions friends/relatives salesman in the outlet Show room/Service centres 0% 3% 0% 2% 3% 92% 20% 40% 60% 80% 100% .

Complaints about Quality and Quantity : Q and Q dissatiffied with Q and Q 10% satisfied with Q and Q 90% Traffic management : Traffic Manage ent dissatiffied with Trafic management 13% satisfied with Trafic management 87% .

Services utilized : 90% 57% 10% 2% ATM Toilets Air filling Drinking water 5% Nothing utilized Dry out : Dry ut i filli g stati experianced dryout 0% Never experianced dry out 100% .

Automation : Automation 91% 9% Automation made the process fast and accurate Automation made no difference to me Salesman behavior towards customers : .

Display Boards (No smoking and other safety Boards ) at this filling station : Display Borads Not Attractive 46% Attractive but not helpful 35% Attractive and Helpful 19% Hoardings in this filling station : Hoardings 57% 20% 23% I Observe the Hoarding and they are attractive I Observe the Hoarding and they are not attractive I never observe the Hoardings .

Loyalty Cards : 86% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 14% 0% I have the I have the knowlegde but not knowlegde and using the service using the service I have no knowledge about the service Ambiance : Ambia ce Excellent good neutral bad 65% 58% worst 24% 10% 8% 0% Infrastructure 30% 23%25% 21% 1% Cleanliness 22% 13% 0% 0% Salesman uniform .

Drinking water . SPEED . Lubes .Toilets .HSD .HSD . .Competitor analysis: Name : Om sai service station Location : Chintalkunta How far : 700mts from HPCL (LAXMAIAH&BRO filling staion ) Products available :MS. Xtramile . USP : Nothing Promotional activities : Through Hoardings Offers and scheme: a) XTRAREWARDS ± An online scheme by Indian oil b) Credit to Regular fleet owners ± Given by Dealer. Xtrapremium Services available : Air filling . Lubes . Activities to increase the sales :  Showing zero reading for each customer before filling . b) No ATM facility . BHARAT PETROLEUM Name Location How far Products available : SHABNAMS FILLING STATION : Check post . LB Nagar : 400mts from HPCL (LAXMAIAH&BRO filling staion ) : MS. Negative points : a) There is no compensation for workers for making more sales. c) Bunk is not clean and infrastructure is out dated . HIGH SPEED DIESEL .

Activities to increase the sales :  Showing zero reading for each customer before filling . ATM . Flexi banners .  Many dispensers for MS and HSD Negative points : a) There is no compensation for workers for making more sales. HAYATNAGAR . Offers and scheme : a) PETROCARD b) Credit to Regular fleet owners ± Given by Dealer. b) No ATM facility .Toilets . Location :  This filling station has many advantages than other filling stations with respect to LOCATION  The filling station is located in one of the busiest areas of HYDERABAD.  No promotional activities from filling stations . Rest rooms . Air filling is available in this filling station . . CONCLUSIONS : About the filling station  All the regular services like drinking water . Separate store for lubes . college and school buses .  In addition with regular customers there are other specific customers like 7 seater autos . Stalls . and Fleet owners moving from HYDERAB to VIJAYAWADA and HYDERABAD to NAGARAJUN SAGAR . So there is huge scope in the future . Western union money transfer Promotional activities : Through Hoardings . Insurance . toilets. KOTHAPET .  Stock is maintained to avoid the dry outs . Availability of Soft drinks is not available  Windshield service is available in this filing station .  Filling station located around the developing areas like UPPAL .  Services like Pollution check . Petrocard counter USP : IN&OUT store .Services available : Air filling . Drinking water .

c. b. Loyalty cards d. g. b. Current Q & Q assurance Good Traffic management Air facility Automation a. Gifts/Offers . i. f. Location h. Drinking water g. Competitor analysis :  IOC and BPCL got their filling stations near this HPCL filling station  BPCL filling station located just 400 mts from this HPCL filling station has many services like Rest rooms . Salesman behavior b. Shop for Lubes . Salesman behavior Q & Q assurance Good Traffic management Less process time Ambiance Air facility Automation Location Eye catchy filling station a. Gap Good service Less process time Ambiance Location Eye catchy filling station 3 wheelers/ Commercial vehicles a. h. IN % OUT convenience store . e. Gifts/Offers a. c. d. Insurance stalls . Salesman behavior c. Campaigns to promote Lubes etc GAP ANALYSIS : Expected 2 wheelers a. b. Location e. Drinking water a. Online transactions .Western Union money transfer . e. d. Toilets f.Toilets c. Q & Q assurance b. And the filling station is located just beside the LB Nagar Ring Road which is well known land mark to the people of Hyderabad . Salesman-Customer relationship d. c. Salesman-Customer relationship c. Q & Q assurance b. Loyalty cards e. e. d.

Avoiding dry outs f. Employee motivation c. Loyalty cards f. Good Traffic management d. l. b. d. Salesman behavior Trained salesman Q & Q assurance Good Traffic management Less process time Ambiance Air facility Automation Location Eye catchy filling station LPG/CNG Windshield a. Ambiance f. a. c. Q & Q Assurance b. Credit k. Salesman behavior c. i. Q & Q assurance Air facility Automation LPG/CNG Windshield a. c. b. c. e. Rest rooms e. Salesman behavior c. Eye catchy filling station Fleet owners a. Avoiding dry outs b. Rest rooms g. Making profits through other services(ATM. Salesman-customers relationship e. Location g. Drinking water h. b. Less process time e. f. Toilets i. Lubes) a. Should be able to make deals with large Fleet owners . k. Offers/Free gifts j. b. Location Cleanliness of filling station Employee motivation Promoting HP Fuel Should be able to make deals with large Fleet owners e. Location Miscellaneous a. Promoting HP Fuel d. d. g. f. j. Salesman behavior b. c. d. e. Loyalty cards d. h. Lubes) a. e.Passenger Cars a. Making profits through other services(ATM. Dealer-customer relationship d. d. Salesman-customers relationship b. Trained salesman c. Cleanliness of filling station b. Q & Q Assurance Dealer-customer relationship Drinking water Toilets Credit a. Offers/Free gifts f.

 Windshield Cleaning facility which is available in this filling station is not aware by most of the customers .SUGGESTIONS :  Customer segmentation ± All types of customers are visiting this filling station . 3. More initiation should be taken by Dealer to increase the sales because he knows better about the location and customer need in that location . 6. 7. Should see that less traffic near entry of the Filing station so that Customers feel free to enter in to the station . 5. So parking of heavy vehicles should be avoided in front of the filling station and the filling station should made visible to the every one.  Traffic management is good as the no. as they drive only in nights and try to find the parking place during the day . c. . Providing rest rooms and parking place to fleet owners . 4.  Effective use of all the dispensers at each dispensing unit(DU) should be made . Tie up with colleges and providing fuel to their buses on credit basis 2. cleaning cloths . Wants a clean outlet even if it is not very jazzy.  Need to create USP to attract more customers . glass cleaning liquids to fleet owners and make them loyal customers . as the shop located in junction with bus stand and also center for many collages so many business options are available . Tie up with private travels as good number of buses runfrom HYD to Vijayawada every day . Providing loyalty cards to Auto owners and making them loyal to filling station . USP may be like opening a Mc Donald or Coffee shop . What they need is a. Works for quick fill and wants good mileage and Q and Q. Driver sahabs and Hum log taken the major share of the customers . Think globally and act locally ± HPCL should modify the petrol bunks in relation with the type of customers reaching the filling station . b. Wants the staff to be respectful and courteous.  Sales can be increased by 1. 8.  Services like Soft Drinks and pollution check can make available to customers . 9. Giving free gifts like shirts . of customers are relatively less . So the service should made available to customers by placing Display Boards .

Online transactions for fleet owners . And the no.  BPCL which is located beside this filling station is providing large no. of amenities . .  Water and toilet display Boards should be made visible to customers . Most of the customers visiting are 2 wheelers . And others as said above . HPCL should also start basic amenities like rest rooms . They are feeling that this filling station giving the best quality of fuel . etc .  Though there are no promotional activities this bunk has 45% of regular customers . Lubes shop . so to compete the services of BPCL . of loyal customers can easily increase if HPCL provides loyalty programs even for 2 wheelers and MS using 4 wheelers . So 1 DU can be completely allotted to 2 wheelers and another DU can be shared between 2 & 4 wheelers .

 Standard Operating Procedures are following in this station .  Regular meetings are conducted to motivate and to increase the efficiency of forecourt salesman .  There is a record for regular customers of HSD . HSD .NAGOL About the filling station : USP : First filling station in Hyderabad to start CNG distribution .  1 Hoarding near exit which can also visible from road . CNG . ATM  Staff is working for 12 hours a day .  Workers are getting commission on sale of MS and HSD . .  Dealer : Venu Kumar  Staff : 9  Products available : MS.\ Service analysis of Club HP Filling stations : DARABOINA FILLING STATION . Drinking water .Lubes  Services provided : Air filling . Observations :  Dealer is regularly available in filling station  Customer care with good hospitality is maintained this filling station  Dress code is given and strictly followed by forecourt salesman .  There are no promotional activities to increase the sales . Toilets .  Credit is given to Fleet owners who visit regularly to this filling station .

96 5. Presence of Display Boards to regulate the traffic and to show safety measures .00 4. Dealer Scores evaluation .00 4.94 5.00 4.84 .  All the staff has undergone training for MS and HSD .00 4.31 4.00 Employee Orientation Segment KSF Score 5.  CNG traffic is very high ie.00 5.00 5.65 5.  Stock levels are regularly checked to avoid the dry outs in filling station .00 100..00 100.00 5.00 Customer Orientation Credit Extension Business Values 5.00 0.(Customers and Employees) by HPCL KSF (Key Success Factor ) score of DARABOINA filling station : National %tile rank Zone %tile rank Region %tile rank 100.00 4.00 5.88 5.00 5. 30-40 autos waiting in the line for 24 hours .00 KSF Statement Dealer Ratings Customer (Fleet + Retail) Dealer Employee Net KSF Score Dealer Commitment & Involvement 4.

So it can be said that the LOCATION carries more importance than any other factor . And they are not particular about the amenities and other services at that filling station . LOCATION :Nagole Road Areas from which customers may visit this filling station  Uppal ( Population ± 40. As the fuel is a daily need most of the people prefer to go for the filling station which is near by . Online survey conducted says that 45% of the people go to any petrol bunk that is available .406 ) .LOCATION : For success of filling station place is the prime factor .

The analysis of this petrol bunk is given below : . Vehicles from Uppal Industrial area . of 7 seated autos move in this place where as these autos banned in other locations by RTA HYDERABAD . of engineering . this help the customers to stop for filling fuel . Traffic Management :Traffic is one of the major problem faced by retail filling stations . The level of traffic may vary with peak and non-peak times . and beside the filling station there are two very large service centers whose parking place sometime extend towards the filling station .143) And the vehicles moving from Sec Bad to NH 9 Collage buses . and gained huge popularity for quality  Near entry and exit of the filling station there is huge traffic because of Autos waiting for CNG .  This filling station is located on 6 lane wide road with less traffic and surrounded with greenery because of Moosi river .718 ) ( Population ± 31.  BPCL which is located just few hundred meters is a COCO .  Large no. of college buses made LB nagar as their center . Mansoorabad  Karmanghat  Nagole     ( Population ± 30. Location benefits :  As the Filling station is located at center of many areas it has great scope for covering many customers  Large no . MBA and MCA collages . 7 seated autos . CHALLENGES :  Surrounding areas have good number of other filing stations . which run from LB Nagar to UPPAL .

 And most of the fleet owners they are not particular about the waiting time . 2 for MS and 1 for HSD  The traffic levels are measured differently for 2 wheelers .  And 3&4 wheelers are likely to wait for 10-12 mins as their fuel need per turn is much larger . Because 2 wheelers are not ready to wait for longer time . as most of the fleet owners are regular customers who fill on credit . 3&4 wheelers . as from the sample collected it is observed that 2 wheelers do not want to wait for more than 5 mins on an average . . Here there are total of 4 Dispensing Units 1 for CNG .

is calculated .Traffic near Petrol Dispensing Units :  For two wheelers it is measured by taking the no.of vehicles fuelled 5mins 13 7 5mins 14 6 5mins 16 6 5mins 19 5 5mins 18 9 5mins 19 7 5mins 12 5 Avg ~17 ~6 Time taken by dispenser to fill 1ltre ± 6-7seconds 10mins 10mins 10mins 10mins 10mins 10mins 10mins Avg 5 2 6 2 5 1 6 3 3 1 2 3 2 2 ~4 ~2 Petrol Dispensing Unit 2 : Workers : 2 2wheelers entering No. of vehicles entering into the station per 10 mins and no. of vehicles entering into the station per 5 mins and no. of vehicles are filled with fuel per 5 minutes .  It is done for 7 time intervals and avg.of vehicles fuelled 4wheelers No.of vehicles fuelld 4wheelers No.of vehicles 0fuelled 5mins 15 11 5mins 19 12 Time taken by dispenser to fill 1ltre ± 6-7seconds 5mins 16 13 5mins 17 11 5mins 17 10 5mins 17 11 5mins 15 12 Avg ~17 ~12 10mins 10mins 10mins 10mins 10mins 10mins 10mins 10mins 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 . of vehicles are filled with fuel per 10 minutes . PEAK TIME Petrol Dispensing Unit1 : Workers : 2 2wheelers entering No.  For four wheelers it is measured by taking the no.

of vehicles completed filling 4wheelers 5mins 0 0 5mins 0 0 5mins 0 0 5mins 0 0 5mins 0 0 5mins 0 0 5mins 0 0 avg 0 0 10mins 10mins 10mins 10mins 10mins 10mins 10mins Avg No.of vehicles fuelled 10mins 10mins 10mins 10mins 10mins 10mins 10mins 10mins 0 0 1 1 0 0 2 2 1 1 1 1 0 0 ~1 ~1 Petrol Dispensing Unit 2 : 2wheelers entering No.OFF-PEAK TIME : Petrol Dispensing Unit 1 : Workers -1 5mins 5 5 5mins 6 6 5mins 11 10 5mins 12 11 5mins 9 9 5mins 11 11 5mins 13 10 Avg ~10 ~8 Time taken by dispenser to fill 1ltre ± 6-7seconds 2wheelers entering No.of vehicles fuelled 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Traffic near dieselDispensing Unit :  For four wheelers it is measured by taking the no. of vehicles are filled with fuel per 10 minutes . of vehicles entering into the station per 10 mins and no. .of vehicles fuelled 4wheelers No.  It is done for 5 time intervals and avg. is calculated .

PEAK TIME Diesel Dispensing Unit 1 : Time taken by dispenser to fill 1ltre ± 6-7seconds Workers -1 10mins 10mins 10mins 10mins 10mins avg 4wheelers No.of vehicles fuelled 2 2 1 1 4 2 1 1 0 0 avg ~2 ~1 Dispensing Unit : (CNG) 3wheelers entering No.of 3 vehicles completed filling Workers :1 10mins 10mins 10mins 10mins 10mins avg 30 30 30 30 30 30 3 3 3 3 ~3 5 3 4 2 5 3 4 3 ~5 ~3 .of vehicles fuelled 4 3 4 3 2 2 6 4 5 3 ~5 ~3 OFF-PEAK TIME : Diesel Dispensing Unit 1 : Time taken by dispenser to fill 1ltre ± 6-7seconds Workers :1 10mins 10mins 10mins 10mins 10mins 4wheelers No.of 3 vehicles completed filling 4wheelers 4 No.

Customer analysis : Customer Segmentation : Customer Segmentation 25% 22% 21% 17% 7% 4% 4% Highway raja Fleet Owners Next Gen Driver sahbs Walk in's Hum log Upwardly mobile Vehicle segmentation : Calculated per particular time interval .

of regular customers 60% 60 50 40 30 20 10 0 Regular customers Random customers 40% Is there anyone suggested to use the HP fuel ? : No one suggested Through promotions friends/relatives salesman in the outlet Show room/Service centres 0% 3% 0% 2% 3% 92% 20% 40% 60% 80% 100% .No.

Complaints about Quality and Quantity : Q and Q dissatiffied with Q and Q 1% satisfied with Q and Q 99% Traffic management : Traffic anagement dissatiffied with Trafic management 44% satisfied with Trafic management 56% .

Services utilized :
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 90%

34%

0%

10% 2%

13% 3% 6%

Dry out :

Dry out in filling station

experianced dryout

22%

Never experianced dry out

78%

Automation :

Automation

82%

18%

Automation made the process fast and accurate

Automation made no difference to me

Salesman behavior in this Filling station :

Display Boards (No smoking and other safety Boards ) at this filling station :

Display Boards
No display boards 0%

Not Attractive

56%

Attractive but not helpful

35%

Attractive and Helpful

9%

Hoardings in this filling station :

Hoardings
48% 40%

12%

I Observe the Hoarding and they are attractive

I Observe the Hoarding and they are not attractive

I never observe the Hoardings

Loyalty Cards : 92% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 8% 0% I have the knowlegde but not using the service I have the I have no knowlegde and knowledge about using the service the service Ambiance : Ambiance Excellent good neutral bad 70% worst 68% 40% 25% 14% 10% 8% 0% Infrastructure Cleanliness 13% 1% 21% 18% 13% 0% 0% Salesman uniform .

: Nothing Promotional activities : Through Hoardings Offers and scheme : a) XTRAREWARDS ± An online scheme by Indian oil b) Credit to Regular fleet owners ± Given by Dealer.Competitor analysis: Location How far Products available Services available USP : Nagole : 700mts from HPCL (LAXMAIAH&BRO filling station ) : MS.HSD .Toilets . Xtrapremium : Air filling . Drinking water .HSD . c) Bunk is not clean and infrastructure is out dated . SPEED . : Air filling . HIGH SPEED DIESEL . Lubes . Xtramile . . Negative points : a) There is no compensation for workers for making more sales. BHARAT PETROLEUM (COCO) Name Location How far Products available Services available : BHARAT PETROLEUM (COCO) : Nagol RTA Office : 400mts from HPCL (DARABOINA filling staion ) : MS. b) No ATM facility . Drinking water .Toilets . Activities to increase the sales :  Showing zero reading for each customer before filling . Lubes .

 No promotional activities from filling stations . Air filling .  Filling station located around the developing areas like UPPAL . UPPAL INDUSRIAL AREA So there is huge scope in the future . CONCLUSIONS : About the filling station  All the regular services like drinking water . and Fleet owners moving from Sec Bad to VIJAYAWADA and Sec Bad to NAGARAJUN SAGAR . Company operated station Promotional activities : Through Hoardings . Negative points : a) There is no compensation for workers for making more sales. Separate store for lubes . Competitor analysis :  IOC and BPCL got their filling stations near this HPCL filling station  BPCL filling station located just 400 mts from this HPCL filling station is COCO . Pollution check . Location :  This filling station has many advantages than other filling stations with respect to LOCATION  In addition with regular customers there are other specific customers like 7 seater autos . ATM .  Stock is maintained to avoid the dry outs . Offers and scheme : a) PETROCARD Activities to increase the sales :  Showing zero reading for each customer before filling . college and school buses . .USP : . b) No ATM facility . toilets. NAGOLE . and it is popularized for its quality and service . Flexi banners . Stalls .  Windshield service not is available in this filing station . Soft drinks are available in this filling station .

c. Good Traffic management d. Less process time e. Location i. Current Q & Q assurance Air facility Automation Location Eye catchy filling station Gap a. Toilets d. Good service b. Air facility c. LPG/CNG d. Windshield . LPG/CNG e. Salesman behavior b. l. Salesman behavior b. Air facility g. j. Toilets g. d. Eye catchy filling station a. Ambiance f. Gifts/Offers Passenger Cars a. Location a. Automation h. Loyalty cards f. i. Q & Q assurance c. Drinking water e. LPG/CNG c. Good Traffic management d. Ambiance f. Trained salesman c. Location a. Q & Q assurance b. Salesman-Customer relationship e. Loyalty cards d. d. e. Less process time e. Automation d. Good Traffic management d.Ambiance 3 wheelers/ Commercial vehicles a. Q & Q assurance b. Salesman behavior c. Location i. Eye catchy filling station g. e. Salesman-Customer relationship c.Less process time c. h. c. Q & Q assurance b. Salesman behavior b.GAP ANALYSIS : Expected 2 wheelers a. g. Gifts/Offers a. b. Salesman behavior Trained salesman Q & Q assurance Good Traffic management Less process time Ambiance Air facility Automation Location Eye catchy filling station LPG/CNG Windshield a. k. b. f. Drinking water h.

Should be able to make deals with large Fleet owners e. Credit i. Toilets i. . and place for convenience store and rest rooms . Salesman behavior c. Rest rooms g. Driver sahbs and Hum log are the majority customers coming in to this filling station . Offers/Free gifts f. Making profits through other services(ATM. Likely tobe attracted to brands and be loyal. Dealer-customer relationship d. Location a.Fleet owners Miscellaneous a.They need Q and Q petrol . They need fast filling .  This filling station is located beside a big lane road and the filling station has the chance of expanding its area . Drinking water h. Q & Q Assurance b. Cleanliness of filling station b. Avoiding dry outs b.Next Gen . Employee motivation a. Rest rooms e. Looks for value for money yet likes to indulge. Loyalty cards f. Salesman-customers relationship b. Dealer-customer relationship a. Credit k. Making profits through other services(ATM. Loyalty cards d. b. Salesman behavior c. Offers/Free gifts j. Promoting HP Fuel d. Location g. Cleanliness of filling station b. Salesman-customers relationship e. c. e. So it can extend its compound and it will help in installing more DU¶s .Is attracted to good looking things. Promoting HP Fuel c. d. Should be able to make deals with large Fleet owners SUGGESIONS :  Customer segmentation . Drinking water a. a. Toilets h. Q & Q Assurance b. Employee motivation c. Lubes) c. Lubes) a. Avoiding dry outs f.

 Autos waiting for CNG becoming traffic disturbance . So competing with COCO is little difficult as every COCO gives the fuel assurance and other effective services like Air filling .  Yes . glass cleaning liquids to fleet owners and make them loyal customers .  BPCL which is located beside this filling station is COCO . as they drive only in nights and try to find the parking place during the day .  Effective use of all the dispensers at each dispensing unit(DU) should be made . people can not drink them on road . So there is a need to think about this service . y Giving free gifts like shirts . But where to drink them . only half the vehicles are filled out of total vehicles entering in specific time interval . like extend some place for this service . cleaning cloths . so display Boards can be placed to attract customers to use the service . More dispensers for CNG can be installed to minimize the CNG traffic .  Sales can be increased by : y Tie up with colleges and providing fuel to their buses on credit basis y Providing loyalty cards to Auto owners and making them loyal to filling station . y Should see that less traffic near entry of the Filing station so that Customers feel free to enter in to the station .  Traffic management is not effective as the total area of this filling station is relatively less . Soft Drinks and Pollution check available in this filling station are not effectively used by customers as they not promoted effectively . Soft Drinks are available in this filling station . .  Dry out of CNG is very regular in this filling station . This should be avoided  Water and toilet display Boards should be made visible to customers . y Providing rest rooms and parking place to fleet owners .

 Credit is given to Fleet owners who visit regularly to this filling station .OMKARNAGAR About the filling station : Newly established . and rest for 1 day .e.Lubes  Services provided : Air filling (Under construction ) . ATM ( Under Construction )  Staff is working for 24 hours a day .  There are promotional activities to increase the sales . Drinking water . . free mineral water  All the staff has undergone training for MS and HSD . Toilets .  Dealer : MrVikram  Staff : 9  Products available : MS. Big parking place .  Standard Operating Procedures are following in this station .  No Hoardings . HSD . Towards Nagarjunsagar road ..SHAKTHINAGAR FILLING STATION .  Workers are not getting commission on sale of MS and HSD . giving cleaning cloths for filling full tank .i. Observations :  Dealer is regularly available in filling station  Customer care with good hospitality is maintained this filling station  Dress code is given and strictly followed by forecourt salesman .  Stock levels are regularly checked to avoid the dry outs in filling station .

. So it can be said that the LOCATION carries more importance than any other factor . As the fuel is a daily need most of the people prefer to go for the filling station which is near by . And they are not particular about the amenities and other services at that filling station . as the customers do not want to fill the fuel under the sun . Canopy is not yet fixed which is greatly effecting the sales . Online survey conducted says that 45% of the people go to any petrol bunk that is available . LOCATION : For success of filling station place is the prime factor .

406 )  Karmanghat ( Population ± 31.  Large no. CHALLENGES :  Surrounding areas have good number of other filing stations .  This filling station is located on 6 lane wide road with less traffic.143)  Champapet (Population -33516 )  And the vehicles moving from Hyderabad to Nagarjunsagar )  Collage buses . of 7 seated autos move in this place where as these autos banned in other locations by RTA HYDERABAD . of engineering .  7 seated autos . Location benefits :  Large no . .LOCATION :Omkar Nagar Road Areas from which customers may visit this filling station  Vanasthalipuram ( Population ± 40. which run from LB Nagar to BN REDDY . of college buses made run from this petrol bunk . MBA and MCA collages .

 So traffic management can only be assessed after installing the CANOPY .Traffic Management :Traffic is one of the major problem faced by retail filling stations . As the customers cannot wait for fuel under hot sun . and the segmentation of customers can be made . The analysis of this petrol bunk is given below :  Here there are total of 3Dispensing Units(DU¶s)1 for MS and 2 for HSD  This filling station got newly established at still it do not have CANOPY .  The salesman are not effectively working as they do not want to work under the sun . There is very less traffic during mid-day . . The level of traffic may vary with peak and non-peak times .

Customer analysis : Customer Segmentation : Customer Segmentaion 27% 20% 20% 13% 13% 7% 0% Highway raja Fleet Owners Next Gen Driver sahbs Walk in's Hum log Upwardly mobile Vehicle segmentation : Calculated per particular time interval .

of regular customers 80% 70% 60% 50% 40% 30% 20% 10% 0% 78% 22% Regular Customers Random customers Complaints about Quality and Quantity : Q and Q dissatiffied with Q and Q 0% satisfied with Q and Q 100% .No.

Traffic management : Traffic anagement dissatiffied with Trafic management 15% satisfied with Trafic management 85% Dry out : Dry out in filling station experianced dryout 0% Never experianced dry out 100% .

Automation : Automation 66% 34% Automation made the process fast and accurate Automation made no difference to me Salesman behavior towards customers : .

Display Boards (No smoking and other safety Boards ) at this filling station : Display Boards No display boards 0% 100% Not Attractive Attractive but not helpful 0% Attractive and Helpful 0% Hoardings in this filling station : No Hoardings 0% 100% I never observe the Hoardings I Observe the Hoarding and they are not attractive I Observe the Hoarding and they are attractive 0% 0% 0% 20% 40% 60% 80% 100% .

Loyalty Cards : 100% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% 0% I have the knowlegde but not using the service I have the I have no knowlegde and knowledge about using the service the service Ambiance : Ambia ce Excellent good neutral bad 55% 45% 33% 29% 27% 23% 5% worst 24% 10% 4% 18% 14% 13% 0% 0% Salesman uniform Infrastructure Cleanliness .

Xtrapremium : Air filling .HSD . Negative points : a) There is no compensation for workers for making more sales. Drinking water . HIGH SPEED DIESEL . SPEED .Toilets . Lubes . : Air filling . : large parking place with good no of DU¶s .Competitor analysis: Name Location How far Products available Services available USP : Prakash filling station : Omkarnagar : 200mts from HPCL (Shaktinagar filling staion ) : MS. Drinking water .HSD . Activities to increase the sales :  Showing zero reading for each customer before filling . b) No ATM facility .Toilets . Lubes . : Nothing Promotional activities : Through Hoardings Offers and scheme : a) XTRAREWARDS ± An online scheme by Indian oil b) Credit to Regular fleet owners ± Given by Dealer. BHARAT PETROLEUM Location How far Products available Services available USP : SagarRingRoad : 400mts from HPCL (Shakthi Nagar filling staion ) : MS. Xtramile .

 In addition with regular customers there are other specific customers like 7 seater autos . 2 DU¶s for Diesel .  ATM . Diesel . and Fleet owners moving from Sec Bad to VIJAYAWADA and Sec Bad to NAGARAJUN SAGAR . is available in this filling station  1 DU for Petrol . Conclusions : About the filling station  The regular services like drinking water . Competitor analysis :  IOC and BPCL got their filling stations near this HPCL filling station . Negative points : a) PETROCARD : a) There is no compensation for workers for making more sales.  No promotional activities from filling stations .  No CANOPY Location :  This filling station has many advantages with respect to LOCATION as this is located near many developing colonies . NAGOLE . Pollution check . Soft drinks are under construction .  Filling station located around the developing areas like UPPAL . UPPAL INDUSRIAL AREA So there is huge scope in the future . Air filling . Traffic management :  Petrol . Pollution check . As the filling station is under construction the hoarding are not yet installed . toilets. college and school buses .Promotional activities : Through Hoardings Offers and scheme Activities to increase the sales :  Showing zero reading for each customer before filling . Air filling . Soft drinks are available in this filling station .  Windshield service not is available in this filing station .  Stock is maintained to avoid the dry outs . ATM .

Good service b. d. Automation h. LPG/CNG Passenger Cars a. d. Good Traffic management d. d. c. Automation c. j. Eye catchy filling station g. Air facility 3 wheelers/ Commercial vehicles a. Eye catchy filling station a. Salesman behavior b. Less process time c. Good Traffic management d. LPG/CNG . Less process time e. Good Traffic management d. d. Salesman behavior b. Loyalty cards d. c. i. c. e. Salesman-Customer relationship c. i. Trained salesman c. e. Air facility i. Ambiance f. c. k. Salesman behavior b. Q & Q assurance Salesman behavior LPG/CNG Salesman-Customer relationship Loyalty cards Toilets Drinking water Location Gifts/Offers Salesman behavior Trained salesman Q & Q assurance Good Traffic management Less process time Ambiance Air facility Automation Location Eye catchy filling station LPG/CNG Windshield a. Location i. Ambiance f. Ambiance e. b. h. b. g. Windshield h. b. b. Q & Q assurance b. Air facility g. Location a.GAP ANALYSIS : Expected 2 wheelers a. f. e. Q & Q assurance c. Q & Q assurance Toilets Drinking water Location Gifts/Offers a. h. g. f. a. l. Current Q & Q assurance Automation Location Eye catchy filling station Gap a. Less process time e.

d.  Analysis made here may change as the bunk is still under construction . c.Rest rooms e. and he should also take the help of all promotional activities by HPCL .Salesman behavior c. Salesman-customers relationship e. Promoting HP Fuel services(ATM. Making profits b. Toilets i. Dealer-customer relationship d. Offers/Free gifts j.Fleet owners a.  The dealer involvement in promotional activities are good by giving cleaning cloths and offering free mineral water for each customer . Should be able to Lubes) make deals with large Fleet owners e. Making profits through other services(ATM.  The first suggestion is to install the CANOPY and other infrastructure related works . Employee motivation through other c. Loyalty cards d.Credit Miscellaneous a. Avoiding dry outs f. Driver sahbs and Humlog are the major customers visiting this filling station . Salesman behavior c. Credit k. Loyalty cards f. Salesman-customers relationship b. Avoiding dry outs station b. d. But according to forecourt salesman and other issues which are found during the survey saying the though it got established so recently it was able to capture good share of customers . and many services are not at available . Q & Q Assurance b. Q & Q Assurance Dealer-customer Relationship Drinking water Offers/Free gifts a. Toilets g. b. Location f. Cleanliness of filling station b. e. Lubes) a. Rest rooms g. Should be able to make deals with large Fleet owners d. Cleanliness of filling a. Location a. Drinking water h. Promoting HP Fuel c. Employee motivation SUGGETIONS:  Customer Segmentation ± Fleet Owners .

 Poor automation . And MS sales are little better compared to other highway filling stations because of villages around the filing station .  This is a highway filling station .. . free mineral water  Stock levels are regularly checked to avoid the dry outs in filling station . giving cleaning cloths for filling full tank . so CANOPY Observations :  Dealer is regularly available in filling station  Customer care with good hospitality is maintained this filling station  Credit is given to Fleet owners who visit regularly to this filling station . and rest for 1 day .i.e.Lubes  Services provided : Air filling.SRINIVASA FILLING STATION About the filling station : .  This is dealer owned filling station . So major sales will be HSD .  Staff is working for 24 hours a day . HSD . Drinking water .PEDHA AMBERPET Location : Towards Vijayawada Highway  Staff : 9  Products available : MS.  Workers are not getting commission on sale of MS and HSD .  No Hoardings .  There are promotional activities to increase the sales .

Customer Segmentation : Customer segmentation 76% 11% 0% Highway raja Fleet Owners Next Gen 7% 0% Driver sahbs Walk in's 6% 0% Hum log Upwardly mobile Loyalty Cards : 100% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% 0% I have the knowlegde but not using the service I have the I have no knowlegde and knowledge about using the service the service .

Conclusions :  This is a highway filling stations and most of the customers will be fleet owners . Offers/Free gifts j. Fleet owners a. Rest rooms g. Fleet cards . Q & Q Assurance b. Salesman behavior c. Loyalty cards f. Toilets g. Salesman-customers relationship b.  Good relationships with customers gain more customers . Dealer-customer relationship d. Dealer-customer Relationship c.Salesman behavior c.  This filling station is not providing any loyalty card for fleet owners .Salesman-customers relationship e. Drinking water a. Credit k.Drinking water h.  According to Dealer Amenities are not much effect the sales  As the most of the customers are fleet owners they do not have any idea about what are the services provided by a typical filling station . Offers/Free gifts . Location f.  The MS sales are fixed can Dealer is saying that MS sales can not be improved as it is a highway filling station .Location a. Drinking water b. Rest rooms e.  All they want is good quality of petrol . c.Toilets i. Credit h. Q & Q Assurance b.  Customers most of them are fleet owners they said they get satisfied if they provide facilities like a. Rest rooms .  Dealer is saying that HSD sales are very good because of good Quality and Quantity maintenance . Loyalty cards d.

 Dealer promotional activities should be made by giving credit to regular customers . .SUGGESTIONS :  Most of the customers visiting this filing station are Lorry drivers and Fleet owners . More lightening should be installed in the filling station  Incentives need to given to FSM as they have more work during the night .  As most of the traffic is during the night . It should be made available to all fleet owners .  Fleet cards . This can be used to make the customer more loyal . So credit offers play major role in determining the sales . and rest rooms can be provided to gain the customer satisfaction .  Rest rooms should be provided . as it is already the part of HPCL loyalty card program .

one of the best brands in the world and stood first in energy companies with brand value of 37 billion. BP has tried to position itself as the greenest among the traditional big oil companies and has invested US $8 billion in biofuels and renewable energy in the last five years. It is really difficult to describe the benefits of a commodity like FUEL . and the Solar Sail BP demonstration project in China. an additive formula that helps clean and protect engines. British Petroleum . FUEL is nothing but a commodity like rice . So how can the brand can be built without explaining the benefits ? Here we discuss various other options to increase the BRAND IMAGE . Newly branded products like Invigorate.BRAND MANAGEMENT Let¶s start with « Beyond DARKNESSthere is LIGHT BeyondPRACTICE there is PERFECTION BeyondFEAR there is COURAGE Beyond POWERthere is RESPONSIBILITY Beyond PATIANCEthere is FULFILLMENT Beyond CRISISthere is SOLUTION BeyondDISEASE there is CURE Beyond PAINthere is JOY Beyond WINTER there is SUMMER BeyondDARKNESS there is LIGHT Beyond PETROLEUM ««« This is the advertisement given by British Petroleum . salt and water . have all helped boost BP¶s ³green´ perceptions. Yes . a science center powered by solar energy. wheat . .

the offers and schemes are reaching the customers . The objectives that a good brand will achieve include:  Delivers the message clearly  Confirms your credibility  Connects your target prospects emotionally  Motivates the buyer  Concretes User Loyalty A survey conducted revealed that 45% of the people in Hyderabad are not concerned about brand while buying the FUEL . term. though HPCL is providing some co-branded cards . . or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers. symbol or design. So selling for less price is not a great idea .The American Marketing Association (AMA) defines a brand as a "name. sign. Factors determining the brand : Offers and Loyalty Cards: The Offers and loyalty cards given by HPCL are not less than any national or international oil markets . More offers cannot be given as the margins in selling the fuel are decreasing . large money cannot be spent on giving offers . So there is large scope to bring the 45% consumers of FUEL under the roof of HPCL brand in addition to already existing customers . Even pricescannot be reduced to increase the customers because if price is decreased by 1% there is a need to increase the sales by some 25% to meet the loss . There is no Loyalty card for MS users . But the implementation is the problem . So there is huge scope to grab the MS customers . 39% of people are ready to become loyal customers if the filling station provide the loyalty cards .

The motto of the CLUB HP i. need to be more popularized . and its green marketing gained its lost image by GOLF OIL SPLIT . achalagthahai . But still .Quality: From ages quality assurance is one of the dominating factor in creating the brand image .. BPCL giving fuel assurance with the logo PURE FOR SURE BP the best brand of US tells that its filling stations are little better . .e. So that quality campaigns need to be increased. people believing the BPCL is the trusty brand for quality .

The amenities may also include convenient stores and coffee shops.The above logo is for Filling station advertisement . But. So that besides providing service to customer it also gain brand image to HPCL . So HPCL should be able to compete with global brands in giving service to customers. EXPERIENCE : It is one more important factor determining the brand image of retail marketing . HPCL is already with McDonald¶s. HPCL filling stations are meant for their appearance. HPCL filling stations are more attractive . Amenities provided. 3. as India is next major marketer of every good for all developing countries . Appearance of filling station. Compared to other Indian filling stations like IOC . BPCL and also reliance . . But there should be separate brand for HPCL as BPCL has in&out as its own store . Salesman behavior towards customers. there is a chance for SUPERMAJOR to enter into India . 2. Difference in Experience can be made by : 1. as the government is lifting subsidies on petroleum products and there is liberalization of Indian economy for foreign companies.

 99% of the customers are not aware of any co-branded cards available with HPCL .Co ±Branding : Co-branding.  Except CHEVROLET INDIA no other automobile brand recommending particular Fuel Brand . which could qualify as "Authorized Service Centers" for leading automobile brands. Western Union Money Transfer. Fed Ex.To deliver the many conveniences and services. Branded service stations .  97% of the local mechanics are agreed to recommend their customers with HP fuel if they give benefits like training programs . no big showroom of TATA in Hyderabad is recommending HP fuel to their customers . Tool kits etc .  Though HPCL is in collaboration with TATA motors . HPCL is already with many other companies . And 16% of the vehicle owners believe in mechanics and their vehicle producing companies in choosing their fuel brand . ICICI Bank. CHEVROLET INDIA is recommending Bharat Petroleum as it has got collaborated with BPCL . T. is when two companies form an alliance to work together. we have associated with leading companies like Coca Cola India. Automobile showrooms . .  16% of the vehicle owners believe in mechanics and their vehicle producing companies in choosing their fuel brand .shirts . Local Mechanics . We are also forging service specific alliances with several automobile companies and OEMs like Tata Motors to jointly identify "Club HP" outlets. also called brand partnership. Skypak and many more. Some of the conclusions from survey make to general public. creating marketing synergy . Café Coffee Day. Think globally Act Locally In Hyderabad about 63% of vehicle owners are going to local mechanic for their vehicle servicing .  about 63% of vehicle owners are going to local mechanic for their vehicle servicing. US Pizza.

.  No 2 wheeler producer is recommending any fuel brand. so HPCL can have tie-up with either Hero Honda or Bajaj to increase the MS sales .Suggestions:  Co-branding with local mechanics is much more beneficial than with so called major market players .  Making all the co-branded services available to customers by increasing awareness programs .  Collaborating with TATA motors and also with MARUTI UDJOG may help because these two were the market leaders in India.

this may work in urban outlets but highways demand an overall network view Sales officers have access to local trade area volumes and are cognizant of competition outlets However current assessment of product. . SOs and MOs across regions or zones Dealers must be coached on how to det site A clear linkage must be established bet potential to convince dealers of their imp SOs must communicate this clearly to th Site re-profiling to align with customer b     Competitor site visit and analysis is a m Assessment of HPCL sites as well as co is a must      Cross regional and zonal collaborative a customer¶s way of doing business DTP Card Enrollment Even in urban areas. BPCL is little ahead of HPCL .CHAPTER -5 SUGGESTIONS Findings     Mitigation Str   Dealers / officers are not always fully aware of a site¶s potential Many follow a localized approach to gauging sales . service and infrastructure availability of competing outlets is not currently being tracked in a formalized and consistent manner Highway sites follow a very localized approach in targeting fleet customers There is little or no collaboration between dealers. sites can collabora proposition or campaign   A number of outlets have facilities and services that are not being marketed in the appropriate fashion Customer ignorance and lack of awareness deny the outlet of significant sales volumes   Several outlets have many facilities that .there is a need for aggressive grass-ro An ³outside in´ view must be taken by th investments made at a particular site ar possible Suggestions to HPCL : y In Hyderabad BPCL has very good brand image for Quality and Quantity than others . y µAchalagthahai¶ the tag line of Club HP should made as popular as PURE FOR SURE campaign by BPCL . Quality assurance should be made as the mission of HPCL and campaigns should be made to give assurance for Q & Q .

mainly customers from urban and suburban areas can be attracted by giving them different filling experience by providing good amenities .y Sales target should be given to all dealers based on their previous performance and their competitors performance . y Amenities should be provided based on the type of customers coming to particular filling station . y Location is playing the huge impact on sales . y HPCL has good market share of MS but did not have good share of HSD . because the loyalty cards are not using by customers not because they are not interested but they are not aware of the loyalty cards . Marketing campaigns should be made to sell loyalty cards . This can only be achieved by attracting fleet owners and commercial vehicle owners . .So . y Reasons should be found for low performance of filling stations and measures should be taken to increase the sales . location analysis should be made before installing a new filling station . y Fillings stations should be categorized based on the segmentation of customers running into the filling station . y For MS users . So it is clear that fleet owners are not properly taken care of . y y Fleet cards and other loyalty cards should made available in all filling stations . y Regular training programs should be conducted for both dealers and employees to motivate them to increase the sales.

y Company ± Dealer relationship should be improved by having few events . but no TATA showroom or service center in Hyderabad is recommending HP fuel . So steps should be taken to increase the help from Co-branding . offering gifts and complimenting the good performance . so HPCL can have tie-up with either Hero Honda or Bajaj to increase the MS sales . y Making all the co branded services available to customers by increasing awareness programs .y Co-Branding which is also playing role in sales should be concentrated as BPCL is doing with CHEVROLET for promotion of their fuel . SUGGESTIONS TO DEALERS : . y There should be an online monitoring system in all the outlets to know the stocks of products which will be helpful in avoiding dry outs . Hoardings should be made attractive and visible to customers . y No 2 wheeler producer is recommending any fuel brand. y Co-branding with local mechanics is much more beneficial than with so called major market players . y HPCL is doing its Co-branding with TATA motors . y y Designing the infrastructure such that all HP filling stations give the same experience .

y Dealer and Dealer should responsible. email id etc) and inform customers your promotion offers through SMS and emails. So. Dealer-salesman relation plays a major role in sales . motivate the salesmen in the outlet. If he is not willing to be good the service will not reach the customer completely . 12 and 24 hrs standing in the outlet. y Salesman should be trained not only technically but also in terms of basic salesman skills. y Credit should be given to regular customers particularly to fleet owners . occupation.e. hoardings and various other promotion activities can¶t sell a product they just give awareness and persuading the customers about the product finally the behavior of forecourt salesmen towards customers is the reason for sales of product in the outlet. . age. innovative in various promotion techniques of outlet and products. y Dealer should maintain good relationship with regular customers by maintaining a database (name. y As advertisement in media. and other amenities . Separate compensation package should be made to salesman to motivate him . which will be the major factor for MS sales . y Salesmen are working for long hour¶s i.y Mission of the business need to be changed from profit to service . Hoarding . y Salesman is the medium between the service and the customer . Only then the profit and growth will be the constant happening to them . y The customer¶s database should be segmented based on age. the working hours should be reduced to 8-9hrs by employing more number of salesmen. y Should made use of all the facilities provided by HPCL like loyalty cards . sex. occupation and various other factors and promotion offers should be informed. and respect towards the customer should increase by the dealers . mobile number.

y The fore court salesmen should know all the information (benefits. customers. . automobile showroom. working. y Some news headlines (flash news) and stock marketing news are displayed through digital screen in the outlet at the same time promotion of HP fuel can be made . y Fore court salesmen are willing to achieve their sales target when incentives are given on daily basis. service centers feedback) y A procedure should be followed by fore court salesmen while suggesting customers about filling the fuel. y Salesmen should give sales targets and incentives are given on daily basis to motivate them to work more.

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