Chapter 4 marketing
Hindustan petroleum corp Ltd
4.1 Products & services of company
Refineries Aviation
Bulk fuel Hp lubes
Refineries
HPCL refineries upgrade the crude petroleum
into many value added products and over 300
grades of lubricants ,speciality and greases .
The lubricating oils refineries set up at
Mumbai is largest Lube refinery in India .
It produces superior quality lube base oil.
Hp lubes
Hp lubes is an integral part of Hindustan
petroleum corp Ltd.one of India' s frontline
major , committed to providing energy and
fueling growth in every significant area of
development.
Lpg-hp gas
Retail
Aviation
Hindustan petroleum ( as esso and caltex prior
to 1974) has been providing aviation refuling
service at various airport in India for more
than half a century. Today , we provide fueling
services to the aviation industry through our
business unit , " HP Aviation", our network
cover all the major airport in India and is
continuously expanding.
Retails
At HPCL retail outlets ( petrol pumps) , ( view
map of our petrol pump locations ) we believe
in maintenance , maintaining not just the
vehicle but a steady relationship with our
consumer. And to do so.provide better and
efficient services. We take care of not only
 your fueling needs. But also complete a
vehicle care . We stock related products like
tyres, batteries and accessories. So you don't
have to go shop -hopping all our other value-
added services ensure that your vehicle is well
looked after .

LPG - HP Gas Bulk fuels

Hp gas ,the HPCL brand of LPG , is what keeps The bulk fuels and specialities business caters
the fire burning in millions of indian homes. to marketing of bulk fuel and petroleum
products directly to industrial consumers like
Bottled at 44 LPG bottling plants throughout
power plants , chemical, fertilizers , shipping
the country with total capacity of over 3610
companies and airline.
thousand metric tone per annum ( TMTPA), hp
gas reaches you after through checking at
every stage right from bottling to distribution.

That is what is makes hp gas synonymous

with safety.

4.2 No of customers

Major Domestic Customers

 Air India
 Air Asia
  Go Air
 Air Costa
 Spicejet
 Jet Airways
Major International Customers
 Federal Express
 British Airways
 Tiger Airways
 Srilankan Airlines
 Air Mauritius
 China Airlines
 China Eastern Airlines

Major Corporate Customers

 Reliance Commercial Dealers

 Pawan Hans Limited
 B G Shirke Construction Tech Pvt Ltd
 Bajaj Auto
 Taj Air Ltd
 Raymond Limited
 Essar Shipping Ports and Logistics Ltd
 Jindal Vijaynagar Steel Ltd
 Force Motors Ltd
 Bhushan Aviation Pvt Ltd
 Sun TV Network Ltd
 GMR Aviation Pvt Ltd

Major Charter Customers

 AC Charter Group
 Nexus Group
 Heligo Charters Ltd
 Global Vectra Helicopters Ltd
 Ligare Aviation Ltd
 Business Air Transport

Major Govt. Accounts

  Indian Air Force
 Indian Army
 Indian Navy
 Border Security Force
 Coast Guard
4.3 Specific distribution channel of company

The process of setting up of a HP GAS distributorship starts with the release of an open
advertisement in the newspapers informing the locations where HPCL proposes to set up HP
GAS agencies. Interested candidates, meeting the stated requirements, are required to apply in
the application form (given below), as per the details given in the open advertisement .

4.4 PLC – Associate the Product with Respect to

Hindustan Petroleum Corporation Limited is a subsidiary of Oil and Natural Gas Corporation
with its headquarters in Mumbai, Maharashtra. It has a 25% market-share in India among
public sector undertakings coupled with a strong marketing infrastructure.

4.5 The PLC stage

Introduction:

A STUDY OF ANALYSERS, PROGRAMMABLE LOGIC CONTROLLERS, DISTRIBUTED CONTROL

SYSTEMS AND DATA COMMUNICATION

1.INTRODUCTION

Hindustan Petroleum Corporation Limited (HPCL) is a Global Fortune 500 company in the
Energy sector. HPCL has two refineries located in mumbai (west Coast) and visakh (East Coast)
with capacities of 5.5 MMTPA and 7.5 MMTPA respectively ,churning out a wide range of
petroleum products. and over 300 grades of lubricants specialties and greases as per BIS
standard. HPCL has successfully contributed close to 20% of India's total refining requirements .
Over the year HPCL's capacity of production has expanded massively through various
upgradation initiative.

 Origin and growth of HPCL-VR

 Commissioned in 1957 as catlex oil refinery India limited (CORIL) . First oil refinery in the
east coast and the major industry in the city of Visakhapatnam, Andhra Pradesh.
Installed capacity of 0.65 million metric tones as per Annum(MMTA) in 1957 for
refining of crude oil into petroleum production [13200 bb\day ]
CORIL was taken over by the government of India and merged with HPCL IN 1978.
 Refinery overview
Visakha refinery is fuels based refinery generating major products of mass consumption
like petrol, diesel and kerosene . Hence , video meeting general purpose characteristics
can be processed with this refinery configuration . Visakha refinery can process crude
from prussian gulf under non- bituminous category , bituminous crude (crude yielding
bitumen , used for paving road) .

The crude processed at refinery include

Crude Country

Kuwait Kuwait

Dubai UAE

Ummshaif UAE

Upper zakum UAE

Murban Saudi Arab

Arab medium Saudi Arab

Iran mix Iran

Lavan Blend Iran

Barash Lt Iran

 Products and treatment facilities

CDU : crude distillation unit
DHDS: diesel hydro De-Sulphurization unit
FCCU: Fluidized Catalytic cracking
VBU: Vis Breaker Unit
 BBU: butimen blowing unit

Process Unit Capacity (in MMTPA)

CDU 1 1.5

CDU 2 3.0

CDU 3 3.0

BBU 0.225

VBU 1.0

FCCU 1(R) 0.95

FCCU 0.60

DHDS 1.8

Products
Daily production Capacity (in tones)

Crude processing 22500

LPG 610

Propylene 100

Sulphur 70+65

Diesel 7800

Naphtha 2150

LSHS 17900

Fuel oil 3500

 Treatment unit
LPG : Amine treatment unit
DHDS : Diesel Hydro De- Sulphurization
4.6 Market segmentation
The market segments of HPCL include corporates, industries, countries, and individuals looking
to fulfill their energy needs. Whereas the target market includes enterprises that require huge
energy resources for production and those people who need petrol, diesel, and LPG for their
vehicles and domestic necessities.

 HPCL’s Marketing Mix

A marketing mix is a combination of the primary areas of focus for any company as their
marketing strategy. The Marketing mix generally includes the 4Ps of marketing i.e.
Product, Pricing, Place, and Promotion.
 Product Strategy

Being a petroleum giant, HPCL dominates seven different product and service categories. These
products and services have enabled HPCL to make a profit of 6,029 crores alone in the fiscal
year of 2019-2020. These products are:

 Refineries: HPCL operates refineries around Visakhapatnam and Mumbai and altogether
these refineries are capable of refining fuels of nearly 15 million metric tons per annum
 Aviation: Alongside refineries, HPCL runs an aviation refueling service at various airports
in India
 Pricing Strategies
Since HPCL is a state-owned enterprise, prominent decisions regarding the price of
the products and services are derived by the state/government. Despite all
adversaries, HPCL is researching the strategies for dynamic pricing of their product
to improve their revenue. This is believed to change the price by 40 to 50 paisa with
a promise to be implemented throughout India.

4.8 Positioning strategies

This section will contain a brief description of the marketing strategies used by HPCL. The
company has been intensively utilizing traditional means of marketing while partnering with
Leo Burnett for advertising. Recently, HPCL has been seen using video content as a marketing
strategy to reach the target customer and create awareness about the uses of different
petroleum products.

The market segments of HPCL include corporates, industries, countries, and individuals looking
to fulfill their energy needs. Whereas the target market includes enterprises that require huge
energy resources for
production and those people who need petrol, diesel, and LPG for their vehicles and domestic
necessities. Let’s further grasp the company’s marketing efforts with the help of some of its
campaigns.

4.8 Promotion tools

All of these impressive statistics aren’t the mere achievement of product, pricing, and
placement of the company, rather they are a combination of precise promotion and
marketing strategies. The promotion strategies include creative advertisements, loyalty
programs, giveaway campaigns, lucky draw campaigns, and festive discounts
HPCL (Hindustan Petroleum) Promotion & Advertising Strategy:
It uses sales promotions like lucky draws and gift coupons. It uses promotional draws for
customers and dealers also during festive seasons and give away gifts and sometime
coupons for free fuel at HPCL retail outlets.
4.9 Pricing method
HPCL is a state owned enterprise and hence some of the pricing decisions are taken by
the union government. The price breakup includes several elements to consider like –
cost and freight of diesel, monetary exchange rate, refinery transfer price, excise duty,
dealer commission and VAT

4.10 Sales force management

This section will contain a brief description of the marketing strategies used by HPCL. The
company has been intensively utilizing traditional means of marketing while partnering with
Leo Burnett for advertising. Recently, HPCL has been seen using video content as a marketing
strategy to reach the target customer and create awareness about the uses of different
petroleum products.

4.11 CRM management

HPCL- ICICI Bank co- Branded Credit Card

 Platinum debt card

 Gold\ silver
Credit card
 Reward points on every fueling
 2.5% surcharge refund
  10% discount on payment by visa

4.12 List of products exported which countries

 Fuel Oil.
 High Sulphur Gas oil.
 Naphtha.
 Packed Bitumen.
 Food grade Hexane.

 Lube oil base stock