SYNOPSIS Chapter Title 1. INTRODUCTION TO PROJECT REPORT 2. PRODUCT PROFILE 3. A PORTRAIT OF THE FIRM 4. CONSUMER BEHAVIOUR 5. SURVEY ANALYSIS 6. SUGGESTIONS 7. CONCLUSION ANNEXURE Questionnaire Bibliography Acharya Tulsi National College of Commerce, Shimoga. Page | 1
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SYNOPSIS
Chapter Title
1. INTRODUCTION TO PROJECT REPORT
2. PRODUCT PROFILE
3. A PORTRAIT OF THE FIRM
4. CONSUMER BEHAVIOUR
5. SURVEY ANALYSIS
6. SUGGESTIONS
7. CONCLUSION
ANNEXURE
Questionnaire
Bibliography
Acharya Tulsi National College of Commerce, Shimoga. Page | 1
CHAPTER-1
INTRODUCTION TO THE PROJECT REPORT
INTRODUCTION
OBJECTIVES
SCOPE OF THE STUDY
METHODOLOGY
LIMITATIONS
Acharya Tulsi National College of Commerce, Shimoga. Page | 2
INTRODUCTIION TO PROJECT REPORT
Consumer attitudes is defined as “all psychological, social and
physical behaviour of potential customer as they become aware of evaluate,
purchase, consume, and tell other about products and services”. Each
element of this definition is important.
1. A consumer attitude involves both individual (psychological) process
and group (social) process.
2. A consumer attitude is reflected from awareness right through post
purchase evaluation indicating satisfaction or non-satisfaction
indicating satisfaction or non-satisfaction from purchases.
3. Consumer attitudes include communication, purchasing and
consumption behaviour.
4. Consumer attitudes are basically social in nature. Hence, social
environment plays an important role in shaping consumer attitude, and
5. Consumer attitude includes both consumer and business consumer
attitude.
From time immemorial people were using fore wood, as the fuel
for coking as it was abundantly and freely available in the forest. But
with the increase of population forest were completely destroyed for want
of firewood resting in the environment influence.
Then Kerosene came as the sane with the availability of crude
oil. But the availability of this was also scarce. Next came the era of
electricity.
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It is used as a fuel wherever it is available in India most of the villages
are not electrified and hence electricity remained as a fuel only in the urban
areas.
The next alternative source of fuel was liquefied petroleum gas which
can be easily transported to every nook and corner of cities and villages with
the advent of industrialization in India, people are becoming more and more
sophisticated and there standard of living is also rising considerably people
prefer to save as much time as possible for other activities. A housewife
used to spend most of her time in the kitchen. But today the attitude of
modern women is under going a through change. Most of the women today
are employed and time saving is their main objective. Liquefied petroleum
gas was come as a boon to the women particular.
Thus with the passage of time people came to understand liquefied
petroleum gas a fuel for cooking and how it has became a big industry itself.
Till recently government was controlling the production transportation and
sales of liquified petroleum gas through distributorship.
In order to popularize the usage of liquefied petroleum gas the
government has given a general subsidy to the people living in hilly terrain.
As the demand for liquified petroleum gas is growing day-by-day the
government decided to import liquified petroleum gas because of this factor
the government is not able to bear the subsidy of liquified petroleum gas as
it turns to crores of rupees with this in view the government has privatized
the process of liquified petroleum gas and the distributorship many private
companies have entered this field now.
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A survey has been conducted to find out why consumer prefers
liquified petroleum gas to other fuel. In this regard a case study of Shimoga
gas service, distributor for Hindustan Petroleum Corporation at Shimoga
carried out.
In this study various aspect like advantage of liquified petroleum gas,
comparison of fuel, role of distributors etc, is taken into consideration.
This project report has been prepared with the help of information
received from proprietor of Shalok Gas Agency and answer received from
respondents.
Objectives:
The main objective of this project report is as follows.
a) To analyze the sales performance of liquified petroleum gas.
(BHARATH) cylinders by Shalok Gas Agency.
b) To analyze the competitive efficiency of Shalok Gas Agency, in
relation to other dealers in Shimoga.
c) To study the present market situation of liquified petroleum gas.
d) To find out this factor that influences the buying decision of the
customers
e) To assess the market share of liquified petroleum gas as against other
fuels.
f) To help the dealers, to adopt this strategies on the basis of findings of
consumer survey.
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The scope of this Project Report is restricted to the study of consumer
attitude towards liquefied petroleum gas cylinder in Shimoga especially of
those sold in Shalok Gas Agency.
This report includes efforts of the Hindustan petroleum and gas, and
Shalok Gas Agency to push up the sales and the services to its customers.
Since the LPG cylinders are mainly used by the people belonging to
medium and high income group, customer’s survey covers the people of
these classes only.
The project repot includes the response of some very old customers.
The esteemed consumers and also the prospective consumers.
The scope of the project report is restricted to the city limited of
Shimoga only, and the consumers in the city are the only respondents to the
questionnaires.
Methodology Adopted:
This Project Repot has been prepared by utilizing both types of data
i.e. primary data and secondary data.
Primary data is the first hand data. It is the data collected is the first
time solely for a particular purpose. It is conducted by directly and
personally meeting the proprietor of the firm.
Secondary data is the second hand data. The main sources of the
secondary data are the published and unpublished sources.
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The popularity and preference of the product by the consumers is
known by conducting a survey on the random sampling basis. It is
conducted by adopting the questionnaire method i.e. distributing the
questionnaire to the respondents and collecting the answers of questionnaires
from them
Secondary information has also been collected from the firm records,
liquified petroleum gas manual, magazines Encyclopedia etc.
Limitations:
Much of the information has been provided without much hesitation
but the latest date i.e. current years figure of sales purchase etc., as the year
2011-12 has still to come to an end is not mentioned in this report. Only the
figure till 31 March 2012 has been disclosed in this report.
Several information were not disclosed by the firm as they felt it
confidential hence detail of some, more critical points could not b e
disclosed about the firm taken for case study at the company manufacturing
the LP Gas. When the consumer are contracted and requested for their
opinion through personal interview and questionnaire about the ‘study’ cent
percent answer were not obtained because some respondents should
negligence.
However, the best possible effort has been made to get this correct
and prescribe information towards the study and present the same in this
report in the but possible way.
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The response of housewives is collected with special weight age. As
they are the major users of the product. The respondents were not able to
maintain their suggestion clearly in the questionnaire so their personal
interview contributed much in this respect.
CHAPTER-2
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PRODUCT PROFILE
Introduction to LPG
What is LPG?
Crude petroleum and natural gas
Comparisons with other fuels
Important characteristic of LPG
Status quo of LPG in India
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Introduction of Liquefied Petroleum Gas (L.P.G) Liquefied Petroleum gas:
Liquefied Petroleum gas is short term is called L.P.G. worldwide it is
generally accepted as they but cooking fuel for the modern Kitchen. It is
produced in gaseous form. But liquified and stored in the cylinders.
Liquified petroleum gas obtained by refining of crude oil and fractionating
natural gas and are mixtures of hydrocarbons which are gaseous at normal
ambient temperature and atmospheric pressure but can be Liquified at
normal but can be Liquified at normal ambient temperature by application of
moderate pressure.
What is L.P.G ?
L.P.G is a mixture of gases primarily propane and Butane produced
from natural gas. Fractionation of crude oil or recycling plaints. it is easily
condensed to liquid form. L.P.G. vaporizes easily, and is similar to natural
gas in combustion efficiency and controllability. It is transported in pressure
tank or pipelines as a liquid and is subsequently converted to a fuel gas.
L.P.G is used as a Beating fuel, as a raw material in chemical industry and as
engine oil.
L.P.G is stored and transported in liquid from under moderate
pressure either in steel cylinders for home use or in railroad trucks and tank
case tanker trucks, Bargain or pipelines, L.P.G changes from when the
pressure is realized and then can be used like natural gas. The product is
stored in pressurized containers above ground and more recreantly in
underground storage covers.
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About 60% of annual production goes for residential and commercial
purpose, which another 50% is used as raw materials in chemical industry,
the important domestic uses are housewives who receive the products in
steel cylinders and use in for cooking, heating waters, and other domestic
uses on the countries like U.S.A. the farmers use the L.P.G in burning weeds
drying crops, curing tobacco and also processing their tractors and trucks
L.P.G. also finds it’s we in synthetic robber manufacturing in internal
combustion engines of taxis, trucks, and buses (on western countries) in oil
refineries and in electrical utilities when it has began to support and other
fossil fuels which cause objectionable amounts of pollution.
Crude Petroleum and Natural Gas
Petroleum is generally found in certain types of sedimentary rocks –
clays, marls, limestone’s, and in oil sands. Oil accumulations often occur in
strata of marine origin and it is considered that the oil is derived from the
action of anaerobic bacteria on the remains of the plait and or animals. Oil
pools frequently occur where the irregularities in the rock strata give six to
folds and domes, and the oil is usually accompanies by gaseous
hydrocarbons often under consider able pressure. Oil occurs at various
depths, from shallow pools at about 500 feet to wells over 10,000 feet deep.
Crude petroleum is dark brown or Black viscous fluid with specific
gravity varying from about 0.8 to over 1.0.
It is compared mainly of a complex mixture of many hydrocarbons,
with some sulfur compounds and a small proportion of metallic and
nitrogenous derivatives very little petroleum is used in the crude state and it
required refining to yield marketable products like.
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1. Petrol
2. Kerosene
3. Gas oils, Diesel oils etc
4. Residential fuel oils
Sources:
The main oil-producing areas of the world are in North America,
Venezuela, the Persian gulf area (Persia, Saudi Arabia, Kuwait and Iraq) and
Russia.
While India is a significant produced of oil and gas, the rising demand
for petroleum product in the country underscores the need to intensify the
efforts to augment both the hydrocarbon reserves as well as production of
hydrocarbons to meet the present and future requirements of hydrocarbons
The is imperative in view of the growing import bill for petroleum products.
While commendable work has been done by the National Oil companies, oil
and Natural gas commission and oil India Limited, to meet the country’s
required hydrocarbons, the urgent need to raise both the level of reserves as
well as production has been significant
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Shifts in government’s strategy to meet this objective it has been
recognized that private investment has an important role to play in
supplementing the activities of the National oil Company in the area of
petroleum exploration and development
General description of a Liquefied Petroleum gas installation:-
The main components of Liquefied petroleum gas installation are
described bellows.
Cylinder:
The Cylinder is manufactured according to rigid ISI specifications No
IS 3196 approved by the chief controller of Explosives, Government of
India. All detail of the cylinder are stamped on the factoring in cap type
cylinder and an vertical separate in case of cylinder with ring shroud. The
manufacture of cylinders is supervised at all stages and each cylinder is
hydraulically tested to 360 prig and certified by ISI and CCE. There after,
every cylinder is visually once every 5 years. Cylinders are Examined before
fitting for any defects overtime they are returned to filling plant and
cylinders which have defects or dents are taken out for repairs or scrapped.
Cylinder Value
The Self-closing value which has been standardized for Liquefied
petroleum gas cylinder has been approved by the C.C. I and conforms to
I..S.I and specifications. All materials used are as per specification and the
body is a hot brass stamping data of manufacture. The values are tested for
gas tightness at 250 prig and are of 3 types as follows.
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a. F type value
The design of the value is as per is 3224 and is such that no leak can
occur past the spindle, whether the cylinder is in use or not. A synthetic
rubber diaphragm or O-ring of approved quality is used to obtain the gas
scale about one full turn opening of the value is adequate for full gas flow.
b. Self closing type value:
The design of self-closing type value conform to IS 8737 is such that
it remain closed unless a pressure regulator or other suitable device is used
for opening it. In case of accidental removal of pressure regulator as any
other device it shuts off automatically, thus preventing any likely accident
due to large-scale leakage of gas
c. Compact Value:
The value is a spring loaded self-closing type which can only the
opened from the outside example with the Koran pressure regulator during
consumption of gas does not flow out of the value is passed down on its
seating after fixing Kosan pressure regulator to the compact valve and only
when the knob on the top of the pressure regulator is switched to the “ON”
position, gas will flow through the value from the cylinder.
At the top of the body if the valve a rubber rings pocking is fitted to
insure a gas tight against the regulator.
Pressure regulator:
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The pressure regulator is an important and highly sensitive piece of
equipment and satisfactory working of he appliance will depend on its
correct performance of its main function are:
1. To Reduce the Pressure of gas to 12 water column and maintain this
pressure with in “11 to 13” W.C. irrespective of the pressure inside
the cylinder.
2. To maintain a constant outlet pressure under varying rates of gas flow
within its capacity.
The pressure regulator used in domestic installation is manufactured
to rigid specifications No. (TS: 9798) and each are is inspected at every
stage of manufacture. As it is a sensitive piece of equipment great care
should be taken in handling it so that no change accused to the internal parts
at any time.
Flexible tubing:
The pressure regulator outlet is connected to the gas inlet on the
appliance by a length of flexible rubber tubing flexible rubber tubing of a
special quality approved for use on the liquefied petroleum gas is
manufactured to very strict BS 3212 specification and is tested during and
after manufacture. The approved quality tubing is not affected by liquefied
petroleum gas. Its inner bore, wall thickness and hardness are carefully
controlled so that a close and tight fit is provided when the tubing is pushed
as a standard inlet nozzle of the appliance & the outlet nozzle of the pressure
regulator this should be regularly checked by distributor, staff at customer
premises and replaced preferably once in 2 years.
Appliances:
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Appliances designed and manufactured for use on liquefied petroleum
Gas should be approved by Indian standard institution/Oil Company
Approved appliance are made in accordance with requirements laid down by
IST Certification marketing. This ensures that such, appliances are sale in
apparition and have a high standard of efficiency and work ship. The IST
Certification mark will hence forth be the guiding criterion for a customer to
purchase a liquefied petroleum gas appliance which is safe of use with
Liquefied petroleum gas of any marketing company.
COMPARISON WITH OTHER FUELS
Criteria LPG Charcoal coke and Firewood
Kerosene Electricity
Availability at have
Free Home, Delivery
Must be transported by the Customers
Conveniently available
Convincingly available
Lighting the appliance
Easy and Instantaneous
Tim Consuming Laborious and dirty
Tim Consuming
Searching is instantaneous but delay in heating
maintenance of heat
No attention required
Fire must be tended carefully
Staves are to be pumped
No attention required`
Product of combustion
Stone-toxic No soot
Soot, smoky and toxic
May b e sooty when lighting up
Not applicable
Efficiency of utilization of fuel
Minimum 58% average 60%
15% 55%-60% 65%
Cleanliness of esc
No blackening of pan bottoms and kitchen ceiling
Pan both Me and Kitchen blackened by soot
Pan bottom & Kitchens some times blackened by soot
Clean`
Extinguishing Appliances
Instantaneous Fire cannot be readily extinguished
Instantaneous Instantaneous but head wasted as appliances cools of
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From the above comparative study we can consider that, as far the
sources are concerned Kerosene and Charcoal coke & fire wood lie between
very behind than the LPG and electric sources. But the choice between the
LPG and electricity run appliances. LPG scene to have the upper hand, as
the later depends on factors like Power supply in the have and the large
number of species electric stoves available in the market.
IMPORTANT CHARACTERISTICS OF LPG
The important characteristic of LPG market is as follows.
1. Specific gravity.
Specific gravity is defined as the ratio of dignity of a substance
relative to the of water at stipulated conditions of temperate & pressure. It is
often quoted relative the density of water at 4 c=1)
In the table below the temperature bail is the same for both LPG
liquid and Qatar (15c) and in this instance, the specific gravity is
numerically same as “Relative density”.
Propane n-butane ISO-Butane Commercial Butane
Liquid 15/15
deg c Vapour
air =1
0.5077
1.550
0.5844
2.077
0.5631
2.068
0.575
2.0
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LPG in gaseous state in nearly twice heavies than air. Any leakage of
LPG therefore tends to settle down at floor level particularly in depressions
pit’s drain etc. ground level ventilation is, therefore must important to
disperse leaking gas.
2. Specific volume:
Specific volume is reciprocal of liquid density.
Liquid density m3/’ton/15 deg c
Propane n-Butane ISO-Butane Commercial Butane
Liquid
Vapour
1.970
63.0
1.710
208.0
1.75
142.9
1.73
178.0
3. Vapour Pressure:
All LPG gases confined in a vessel above their boiling the liquid form
vapour in the space above the liquid level. When the liquid is present, the
vapour is referred to as the atmospheric pressure at the boiling print and
increases gradually towards the critical conditions.
Vapour pressure is characteristic of a liquid and its vapour and it
depends no relation to the quantity of liquid present. If the temperature of
liquid BHARATH insides the contains when full and when nearly empty
will be practically the same.
4. Boiling Point:
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LPG gases have low boiling points they exist in the gaseous state at
normal atmosphere temperature unless they are contained under pressure or
refrigerated.
Propane n-Butane ISO-Butane Commercial Butane
Boiling paint latm c
-42.045 -050 -11,72 -7
The boiling point of LPG presently marketed is very nearly OC. At
this temperature the pressure inside a continues swill be almost the same as
the atmospheric pressure.
5. Flammability limit:
Fuel gases will burn only when mixed with are in certain proportions.
The minimum and maximum concentrations of a fuel gas in gas/air mixtures
between which the mixture can be ignited are termed as lower limit and
upper limit of inflammability. There limit. Are narrower in LPG then other
fuel gases. Making LPG safes in use.
6. Toxicity:
LPG contains no toxic components such as carbon monoxide and is
therefore non-poisonous of leakage of a large amount of LPG occurs in a
closed space difficulty in breathing and asphyxiation due t lack of oxygen
can be caused but it is importable that this would happen importable that this
would happen in practice. LPG is slightly anaesthetic when high
concentrations are breathed in sufficient quantities over a period of time, the
result would be a upset stomach and head ache which in themselves, are
excellent warning symptoms.
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7. Odour:
LPG is distinctively odorized to give warning in case of leakage its
smell is detectable in air at constructions down to 1/5 of the lower explosive
limit.
Status QUO of LPG in India:
The consumption of LPG has been souring in recent decade with
almost every household in the middle income & even in the lower middle
income groups are keen on owning gas stoves and having secular supplies of
LPG in cylinders. The customer’s population of LPG in cylinders. The
customer population of LPG has risen to 54 million by April, 2011 from 57
million a year ago and 21.87 million on April 2011. The union ministry of
petroleum and natural gas has been endeavoring to step up the are of new
connections dispute a session’s short fall in availability and the need to
import large qualities. Thus fresh connections in 2009-10 totaled 12
millions of which two millions were single connections and the balance
double connections against three millions in 2008-09 and 9.48 millions in
2007-08.
The actual lags supplies in recent years has increase in a more
pronounced manner as nearly 50% of the new entrants have double bottle
connections. This does not mean of course that there will be a bigger rise in
consumption as refills are made available only after a stipulated period. A
second cylinder in reserve will help consumers to meet unexpected needs
and unavoidable delays in supplies by dealers.
The output of LPG from indigenous sources has been rising; at a fairly
fast rate because of the arrangements by the gas Authority of India & others
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to produce LPG by fractionating natural gas. The oil refineries also have
been raising their LPG out put by upgrading the quality of light distillates.
The total output was as shown below.
Total Output
Years Output (million tonnes)
2006-07 8.78
2007-08 9.91
2008-09 10.71
2009-10 13.84
2010-11 14.04
The indigenous production can be raised steadily only if the increase
in gas production of 77 mcm for daily use from 63 mcm can be utilized
partly for turning out L.P.G.. It will be also possible to increase the
contribution of refineries as their throughout will be increasing in a
pronounced manner in the current plan period.
It is anticipated that the output of petroleum products may be raising
to 113 million tonnes in the terminal year of month plan by 92.93 percent.
There will be a concurrent growth in LPG output to 3.16 million tonnes or
by 102.02 percent. The consumption on the other hand will be humping to
over six million tonnes in 2010-11 from 8.10 million tonnes in 2009-10.
Acharya Tulsi National College of Commerce, Shimoga. Page | 21
GRAPH SHOWING THE OUT PUT IN MILLION TONNES
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CHAPTER-3
A PORTRAIT OF THE FIRM
History of the firm
Administration
Organization
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HISTORY OF THE FIRM
Shalok Gas Agency was stared on the 20th May 1986 Manjunatha.
The Capital investment was Arranged by Manjunatha himself. The
Hindustan petroleum corporation Limited under the general category.
Above 1000 consumers through in Shalok Gas Agency. This Agency was
the First such gas Agency in Shimoga. It is on Savalanga road, Shimoga
The Shalok Gas Agency has a godown in a site 80 x 100 length. It
also uses a open space nearby the office to collect the cylinders during the
day time. The Agency receives it’s cylinder’s from BHARATH L.P.G
Bottling land of the Shalok Gas Agency has a efficient transport system for
the supply of cylinders from Dharwad.
An emergency cell has been opened by Shalok Gas Agency in Co-
ordination with some like minded agencies of Shimoga. The office of the
emergence cell is situated in the office premises of the Shalok Gas Agency,
Davanagere This agency works for 24 hours round the clock this cell has
opened with objectives of emergency service like leakage preventing fire in
case fire crop’s in some circumstances. Shalok Gas Agency has Explosive
license No MYS 966/BHARATH
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The agency has employed 15 personnel. The organization structure is as follows.