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Mes indiaA PROJECT REPORT ON MARKET & POTENTIAL SURVEY OF BPCL As partial fulfillment for the award of .
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Page 1: BPCL Report

Mes indiaAPROJECT REPORT ON

MARKET & POTENTIAL SURVEYOF BPCL

As partial fulfillment for the award of

.

Page 2: BPCL Report

Acknowledgement

The making of this project has been a great experience for me on

BPCL (Financial Management) during partial fulfillment of my

MBA course.

While making this project I have gained immense practical

knowledge of how an organization works day to day and how their

policy regarding Financial conditions of Shree Bharat Petro,

(BPCL) marketing and sales of the products has been made and

how they strive continuously in today competitive environment to

maintained and enhance their position in the market.

In the end of my project, I would like to acknowledge Dr. Arpita

Khare, Co-ordinator of MBA at IPEM, Ghaziabad for her immense

cooperation in making this project and also I would like to give my

thanks to Mrs. Sapna Rakesh, Director of IPEM, Ghaziabad whom

able guidance helps me to complete this project..

Page 3: BPCL Report

Last but not least I would like to give my thanks to all BPCL

family members, colleagues and dealers who helped me during my

project work.

SHIVENDRA PRATAP SINGHMBA 2002-2004

IPEM Ghaziabad.

.

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CONTENTS

Acknowledgement Introduction Objective Synopsis Company Profile Research Methodology Market Analysis Suggestions & Recommendation Conclusion Annexure – Questionnaire

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SYNOPSISOBJECTIVE :

The main objective of the project is to find out the perception of

dealers/ retailers regarding the sales promotion facility.

TYPES OF RESEARCH :

Research Approach : Survey Approach

Research Instrument : Questionnaire

SAMPLING PLAN :

Number of Sampling Unit : 30

Sample Unit : Dealers / Retailers

DATA COLLECTION : Sampling Procedure

Contact Method : Structured Interview through

questionnaire

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INTRODUCTIONTopic : Market Survey of BPCL

Objective : To increase the sale of BPCL Products

Bharat Petroleum Corporation Ltd. manufacturer a large range of

lubricants ,liquid petroleum gas, (LPG) Petrolium diesel, Aviation

fuel & solvents.

BPCL has also spreads up to Refinery plants in India

Indian Oil and Castrol of the major competitors in the market

against BPCL. It is important to get and idea regarding BPCL

position in Ghaziabad and Meerut City.

It could not help BPCL to capitalize on existing potential but also

to formulate strategic and to fill the look holes and gaps to fight the

competitive situation.

Conducted the survey : Under the able guidance of Mr. Neeraj

Tyagi and Mr. Suri.

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The researcher has tried to now about the following points :-

1. To find out the perception of dealers / retailers of BPCL.

2. To determine the market share

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MARKET ANALYSISSurvey is the most commonly method i.e. used in collecting

primary data in market survey, and has extremely flexible.

Survey Research is the systematic gathering of data from

respondent through the questionnaire.

The purpose of the survey is to provide more and more information

regarding it market position and sales promotion.

A questionnaire is the former list of the entire question to be

answered in the survey.

I have conducted the market survey in different city e.g Meerut.

Ghaziabad, Delhi and Modinagar.

I have make a survey especially on petroleum product (Sales

Promotion facility).

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There are a number of companies in the market. Some of them of

Government companies and some of them of private companies as

BPCL

IBP

Indian OilHindustan Petroleum CastrolShellELFPennzoil

In our analysis, I have found that BPCL is not in a good position in

the market.

This company does’t not provide as much sales promotion facility

as it should provide in comparision to other company which exists

in the market like Indian Oil, Hindustan Petroleum , Castrol, Shell,

ELF, Pennzoil, bp .

Infect the quality of BPCl products its superior but its price is little

big high and it also doesn’t provide sale promotion scheme.

.

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There is also a lack of proper advertisement and wall painting,

print media, electronic media and distribution network, dealers

meets, and mechanic meet.

BPCL not in a good position because prices so much high in

comparison to other companies.

It can gets its real position only by improving its faults.

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A GLORIOUS COMPANYDo take some time off for a brief interlude with the past, as we

take you back in time to the evolution of Bharat Petroleum

Corporation Limited. A new chapter in the history of Indian

industry.

EARLY HISTORY - DAWN OF A NEW ERA

Petroleum (derived from Latin Petra-rock and oleum-oil) first

came up in wells drilled for salt. People found it useful as

illuminating oil and the demand for it steadily increased.

Samuel Kier, a Pittsburgh druggist, bottled and marketed

Petroleum as medicinal cure. To market a deodorized variant, he

designed the first primitive refinery in 1852, which was a huge

improvised kettle, connected to a metal tank.

'Colonel' Edwin Drake and 'Uncle' Billy Smith drilled a well with

the specific objective of finding oil, and on 27th August 1859, they

.

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"struck oil" at Titusvale, in North Western Pennsylvania, USA, at

a depth of 69.5 ft.

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FROM NOTHING TO GOLD

The 1860s saw vast industrial development. A lot of petroleum

refineries also came up.

An important player in the South Asian market then was the

Burmah Oil Company. Though incorporated in Scotland in 1886,

the company grew out of the enterprises of the Rangoon Oil

Company, which had been formed in 1871 to refine crude oil

produced from primitive hand dug wells in Upper Burma.

The search for oil in India began in 1886, when Mr. Goodenough

of McKillop Stewart Company drilled a well near Jaypore in upper

Assam and struck oil. In 1889, the Assam Railway and Trading

Company (ARTC) struck oil at Digboi marking the beginning of

oil production in India.

While discoveries were made and industries expanded, John D

Rockefeller together with his business associates acquired control

over numerous refineries and pipelines to later form the giant

Standard Oil Trust. The largest rivals of Standard Oil - Royal

Dutch, Shell, Rothschilds - came together to form a single .

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organisation: Asiatic Petroleum to market petroleum products in

South Asia.

In 1928, Asiatic Petroleum (India) joined hands with Burmah Oil

Company - an active producer, refiner and distributor of petroleum

products, particularly in Indian and Burmese markets. This alliance

led to the formation of Burmah-Shell Oil Storage and Distributing

Company of India Limited.

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THE PIONEERING SPIRIT - BURMAH SHELL

MARKETING

A pioneer in more ways than one, Burmah Shell began its

operations with import and marketing of Kerosene. This was

imported in bulk and transported in 4 gallon and 1 gallon tins

through rail, road and country craft all over India.

The company took up the challenge of reaching out to the people

even in the remote villages to ensure every home had its supply of

kerosene. The development and promotion of efficient kerosene-

burning appliances for lighting and cooking was an important part

of kerosene selling activity.

With motor cars, came canned Petrol, followed by service stations.

In the 1930s, retail sales points were built with driveways set back

from the road; service stations began to appear and became

accepted as a part of road development. After the war Burmah

Shell established efficient and up-to-date service and filling

.

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stations to give the customers the highest possible standard of

service facilities.

On 15th October 1932, when civil aviation arrived in India, the

company had the honour of fuelling J.R.D. Tata's historic solo

flight in a single engined de Havillian Puss Moth from Karachi to

Bombay (Juhu) via Ahmedabad. Thirty years later, i.e. in 1962,

Burmah Shell again had the privilege to fuel JRD Tata's re-

enactment of the original flight. Burmah Shell also fuelled flying

boats, which carried airmail at slightly higher rates than sea

transport, at several locations.

As a true pioneer would, the company introduced LPG as a

cooking fuel to the Indian home in the mid-1950s. And all along, it

went beyond selling petroleum, to educate the customer. Besides

selling Bitumen, the company pioneered desert road construction,

training road engineers. It provided free technical services to

industrial customers - big and small - and it became a part of the

company's culture.

ON STREAM - THE BURMAH SHELL REFINERY.

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An agreement to build a modern refinery at Trombay, Bombay

was signed between the Burmah Shell group of companies and the

Government of India on 15th December 1951.

Burmah Shell Refineries Limited was incorporated as a private

limited company under the Indian Companies Act on 3rd

November 1952, and work began on the marshland of Trombay at

Bombay. Man and machine worked relentlessly, and soon the

swamps gave way to towers and tanks of steel, and miles of

pipeline.

The refinery on 454 acres of land at village Mahul went on-stream

on 30th January 1955, one year ahead of schedule. Dr. S.

Radakrishnan, Vice President of India, declared the 2.2 MMTPA

(Million Metric Tonnes Per Annum) Refinery open on 17th March

1955. It was then the largest refinery in India then.

FROM BURMAH SHELL TO BHARAT PETROLEUM

On 24th January 1976, the Burmah Shell Group of Companies was

taken over by the Government of India to form Bharat Refineries .

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Limited. On 1st August 1977, it was renamed Bharat Petroleum

Corporation Limited. It was also the first refinery to process newly

found indigenous crude (Bombay High), in the country.

With this infrastructure, free India moved one step closer to self-

reliance.

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THE TECHNOLOGICAL EDGEBharat Petroleum has always been on the forefront of harnessing

technology initiatives for maximising efficiency and achieving

greater customer satisfaction.

Bharat Petroleum is the first Public Sector Oil Company to

implement Enterprisewide Resource Planning (ERP) solutions -

SAP. The implementation project known as ENTRANS

(Enterprisewide Transformation) has been awarded the 'SAP Star

Implementation Award', with Bharat Petroleum having the

distinction of executing the largest and the most ambitious SAP

project in India. The challenge of SAP implementation was to

ensure that all the integrated elements (of the complex multi-

modular integrated solutions that impact the entire workflow of the

organisation) work seamlessly across the length and breadth of the

country, including the remote locations. Providing online

connectivity in these remote locations, given the full-fledged IT

network infrastructure, was in itself a daunting task.

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Bharat Petroleum is reaping the benefits of the integrated system

in many areas of its operations. The early gains of implementation

are in the areas of tracking customer-receivables, monitoring

credit-management, inventory management, besides easing the

operations in a large number of areas.

Furthermore, Bharat Petroleum has also set up one of the biggest

'Centres of Excellence' in Asia to provide online support to the end

users and also work towards continuous improvement in business

processes and handle product upgrades and new generation

products.

With SAP as the IT backbone, Bharat Petroleum plans to take

advantage of the Internet based capabilities along the entire value

chain with a Customer Relationship Management solution. A large

data warehouse project has also been implemented, which

facilitates access to real-time accurate information on key

performance indicators at all Bharat Petroleum locations. This

enables the management to take strategic and business decisions,

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thus ensuring value-added services, better customer satisfaction

and enhanced shareholder value.

THE PLANNED APPROACHIncreasing globalisation, new products and services, and

innovative marketing have resulted in a very market savvy

consumer. The production-based success philosophy of marketers

has now been replaced by a customer-oriented philosophy. Bharat

Petroleum has taken cognisance of this situation well in time and

has been taking radical steps to keep itself attuned to the changing

times, realising that the future belongs to those who listen and

adapt to their customers.

STRATEGY DEVELOPMENT

Bharat Petroleum recognises that all strategic initiatives must

conform to the overall vision ofthe Corporation and improvethe

economic value. The Strategy Development effort at the corporate

level achieves better focus in the new organisational structure,

besides facilitating the SBUs in developing their respective .

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strategies that lead to an integrated Corporate Strategy. A Business

Planning process has been put in place that not only provides

opportunities for the SBUs to pursue their visionary goals in

consonance with the Corporate Vision, but also continuously

monitors trends and identifies strategic opportunities for the

Corporation.

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BRAND MANAGEMENT

In the highly competitive scenario, it has become imperative to

own dominant brands. The Brand Management team at Bharat

Petroleum endeavors to build and manage a strong brand image

reflecting Bharat Petroleum's core values of being 'INCARE', viz.

Innovative, CAring and Reliable. Emphasis is laid on continuously

understanding customer behaviour, tracking their changing needs

and expectations, and meeting these needs in the most cost-

effective manner.

RESEARCH & DEVELOPMENT

Always on the forefront to innovate, Bharat Petroleum is making

distinct efforts towards Research & Development (R&D). Besides

the R&D facilities at the Refinery and the Product Application

Development Centre in Sewree in Mumbai, a new state-of-the-art

R&D Centre is being set up near Delhi. The R&D Centre is being

organised around three core groups - Process & Technology

Development, Product Application Development and .

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Environmental Engineering. A total outlay of Rs.3,000 million has

been planned to be spent in three phases up to the year 2003-04 on

this project.

SHAPING THE FUTUREThe core strength of Bharat Petroleum Corporation Limited has

always been the ardent pursuit of qualitative excellence for

maximization of customer satisfaction. Thus Bharat Petroleum, the

erstwhile Burmah Shell, has today become one of the most

formidable names in the petroleum industry.

Bharat Petroleum produces a diverse range of products, from

petrochemicals and solvents to aircraft fuel and speciality

lubricants and markets them through its wide network of Petrol

Stations, Kerosene Dealers, LPG Distributors, Lube Shoppes,

besides supplying fuel directly to hundreds of industries, and

several international and domestic airlines.

DYNAMIC GROWTH POST NATIONALISATION

.

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Following nationalisation in 1976, Bharat Petroleum changed

gears and embarked upon a rapid growth path. Turnover,

profitability and financial reserves grew by leaps and bounds.

Massive expansion and modernisation provided a tremendous

boost to the company's performance. Large-scale recruitment and

training became critically important to meet the demands of

expansion.

THE WINDS OF CHANGE - A TRANSFORMED

ORGANISATION EMERGES

Opening up of the Indian economy in the nineties brought with it

more competition and challenges, kindled by the phased

dismantling of the Administered Pricing Mechanism (APM) and

emergence of additional capacities in the region in refining and

marketing.

In 1996, Bharat Petroleum went through a process of visioning,

involving people at all levels, which evolved a shared vision and a

set of shared values. Based on this, the company restructured itself, .

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in a proactive move to adapt to the emerging competitive scenario.

The function-based structure was carefully dismantled and

replaced with a process-based one. This made the company more

responsive to its customer needs.

Bharat Petroleum realises that, in the long run, success can only

come with a total reorientation and change in approach with the

customer as the focal point. Today, Bharat Petroleum is

restructured into a Corporate Centre, Strategic Business Units

(SBUs) and Shared Services and Entities. The organisational

design comprising of five customer facing SBUs, viz. Aviation,

Industrial & Commercial, LPG, Lubricants and Retail and one

asset based SBU, viz. Refinery, is based on the philosophy of

greater customer focus.

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OUR COMPANY

COMMITMENT TO SOCIETY

Bharat Petroleum continues its endeavours in meeting social

obligations to the under privileged sections of the society through

development of roads, schools, clinics and vocational training

centres in rural areas. Cataract camps for villagers, vocational

classes to make the rural women self-reliant, development of rural

women and children, providing sanitation and drinking water in the

villages, are just a few of the many contributions made by Bharat

Petroleum to meet its social responsibilities.

In recognition of the outstanding work done in the area of Rural

Development, FICCI awarded the 'Rural Development Award

1999-2000' to Bharat Petroleum.

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BOARD OF DIRECTORS

S. BEHURIA

Chairman & Managing DirectorMUKESH ROHATGI

Director, RefineriesASHOK SINHA

Director , FinanceS. A. Naryanan

Director, Human ResourceS. RADHAKRISHAN

Director, MarketingS. VIJAYA RAGHWAN

Joint Sect. Ministry of Petrolium and Natural GasDr. B. MOHANTY

Joint Advisor (Finance).

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OUR COMPANYCORPORATE VISION

.

Established a first class brand and corporate image

Have excellent customer carrying and customer

service

Make BPCL a great place

to work

Effective boundary management

Fulfill Social responsibility

Develop cohesive corporate strategy

Sound Business performance and

operational efficiency Strong and dynamic system

Be and ethical company

Apply the best technology

VISION

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SOCIAL WELFARE

Social Welfare in Bharat Petroleum was initiated as a non-statutory

body in the year 1984. Bharat Petroleum has been the pioneer in

the oil sector to hire the services of professional social workers.

Areas of work in the initial years were primarily to cater to the

softer areas of employee related issues, to mention a few are:

Counselling for personal as well as emotional problems

affecting work.

Assistance to quit substance abuse (like alcohol and other

drugs.

Marital Conflicts, Divorce Reconciliation, Money

Management, etc.

With years our focus changed from restorative to preventive as

well as promotive, holistic health. Talks on various issues at plant

level like addiction, HIV/AIDS, parental issues, time and finance

management, family relationships were initiated, which still

continues and gives considerable positive returns. For the above

mentioned activities we have collaborated with various Non

.

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Government Organisations, to deliver best humane services for our

employees and their family members. Eventually, their

involvement in the whole process of employee related issues were

taken, there by channelising their energy positively as well as

encouraging prosocial behaviour.

COMMUNITY DEVELOPMENT

As a part of Society, Bharat Petroleum believes that they owe as a

corporate body to give back to society their best. With this social

obligation Bharat Petroleum started community work way back in

1987 by adopting Karjat (tribal area in Raigad District) and Mahul

(our neighbourhood) for ameliorating lives of the deprived.

Karjat is located in Raigad District and comprises of mainly tribal

population. Bharat Petroleum adopted 25 villages under Mogrej

and Tembre Gram Panchayat. Some of the activities undertaken to

help the tribal population are-

Constructing a community hall/ Samaj Mandir

.

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Health assistance, through regular health camps, pediatric

camps and cataract camps

Educational assistance through distribution of books, holding

competitions

Vocational assistance by imparting training in bamboo and

tailoring

Encouraging environment friendly attitude through

distribution of smokeless chulhas, solar cookers as well as

educating them through folk music.

Mahul being close to Refinery had different set of expectations as

well as issues. The village has approximately 25,000 inhabitants

who are primarily fishermen, some are migrants who work on

contract as well as in salt pans. Some of Bharat Petroleum's

assistance to these inhabitants so far has been-

Infrastructural development, like construction of jetty,

Balwadi, Homeopathic Dispensary

.

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Vocational guidance through aptitude testing, scientific

vocational need based study through Jan Shikshan Sansthan

(NGO under ministry of HRD)

Exhibition for the Fishermen to equip them with latest

avenues in fishing through Central Institute Of Fisheries

Education(CIFE)

Bharat Petroleum's approach both for employees as well as

community is to share the best to get the best. Bharat Petroleum

also has in the Refinery a crèche wherein employees and their

children are in touch with each other.

In times of natural calamities you will always find Bharat

Petroleum in the forefront, rendering aid and emergency

provisions. Bharat Petroleum relief teams have worked tirelessly to

provide the Gujarat Earthquake and the Orissa Flood victims with

food and essential survival materials.

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LIST OF 20 VILLAGES ADOPTED Bhogalpura (Agra)

Srinivasapura & Muneshwara (Bangalore)

Neelgarh (Bhopal)

Ramathenga (Bhubaneshwara)

Brindabanpur & Farakidanga (Calcutta)

Jahazpur (Calcutta)

Mankara (Calcutta)

Kadambankulam (Coimbatore)

Basantgarh (Delhi)

Jyotinagar (Goa)

Nangalgovind (Jaipur)

Babukhera (Lucknow)

Pedawada/Manjripal (Nagpur)

Laakarhawar (Patna)

.

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Kasabkhede / Pohey (Pune)

Khara Bairaja (Rajkot)

Mangadih / Jaradih / Dimra / Obar (Ranchi)

Bhaktachiwadi / Mogrej (Karjat)

Tembre (Karjat)

Mahul (Chembur)

We feel happy when we see

Smiles on the faces of villagers and children.

It helps us to get closer to our Corporate Philosophy.

We care for you.

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PRODUCTS Refineries

Petroleum Products

- PETROL & DIESEL PUMPS

Lubricants

- DISEAL ENGINE OIL

MAK Multigrade

MAK Gold

MAK Diamond

MAK Ultra Supreme

MAK GE (Gas Oil)

- PASSENGER CAR

MAK Classic

MAK Elite

MAK Supreme

MGO

- PUMPSET OIL

MAK Pump

- GREASE .

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MAK Univex-A

MAK W.D.

MAK MP3 ( Multipurpose)

- GEAR OIL

MAK Spirol 99ep/140ep

MAK Syncrol 90/140

MAK ATF-A

Tello ATF

TWO STROKES OILS

MAK 2T FC

MAK Glide 4T (4 Stroke)

BRAKE OIL

MAK BRK Flud (Heavy Duty)

MAK Super Kool

MAK Redi Kool

Hydrol 68

Hydrol 32/46/68/100

Hydrol 150/220/320.

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Hydrol 460

Hydrol HLP 32/46/68/100

Sherol B

FREEZOL 32/46/68/100

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ORIGIN OF LUBRICANTS

LUBRICANT:

Balmer Lawrie introduced modern day lubricants-greases and

oils- in India, initially them from England and USA and

distributing them to tea gardens and other industries. In 1937 the

company pioneered the manufacture of lubricating greases in India

setting up a small plant in Howrah, followed soon by the

introduction of its brand 'Balmerol' for blended lubricating oils and

greases.

Lubricant are the smallest and most diversified segment of

the petroleum industry. The international scenario of the lubricant

is as fast changing as ever. The present global lubricant market is

of the order of about 38 MT. Asia Pacific region including India

accounts for almost one third of this demand. The world lubricant

demand is expected to grow by about 1.1% per year upto the year

2002 while in Asia the average growth rate would be around 5%.

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THE INDIAN LUBRICANT INDUSTRY:

The lubricant industry in India is one of the sub-sector of

petroleum industry which was opened out completely to private

and foreign manufactures. The Indian lubricant industry is 6th

largest in the world. Current lubricant market in India is 1 million

tones per year which has not been affected by the current recession

in Asia. The major factor in favour o the Indian market is the

growth rate.

The market is growing at the rate of around 5% against the

global average of 2.5% more than 25 national/international oil

companies are operating in India with a total market value of

around Rs. 5500 crores. Automotive oils are the biggest and

largest and the most crucial segment of the lubricant sector which

consumes about 60% of the lubricant in India.

LUBRICANT MARKET

In 1993, the government announced a number of regulatory

changes in the lubricants sector. It permitted the entry of foreign

companies, decanalised imports of base oil (used for lubricants,) .

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decontrolled prices, and progressively lowered the customs duty

(from 85 per cent to 30 per cent).

In 1997-98, the size of the lubricants market in India was around

Rs. 55 billion with a volume of around 1.2 million tonnes, making

it the sixth largest lubricants market in the world. (In 1993, the

market size was Rs. 35 billion with a sales volume of 630,000

tonnes.) the lubricants market has grown by nearly 17 percent per

annum in the past four years in terms of volume and by nearly 12

per cent annum in terms of value.

Since 1993, the number of lubricants in the market has

increased. With the introduction of multi-grade oil and synthetic

lubricants, the quality to lubricants had improve. Some companies

have also set up state -of-the-art lube blending plants.

The number of players in the lubricants market has increased

from 5 in 1993 to around 40 in 1997. The share of public sector

marketing companies (LOC, HPCL, BPCL and IBP) has declined

from 88 per cent in 1991-92 to around 60 per cent in 1997098 IOC

is the largest player with a market share of 32 per cent, while .

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Castrol is the second largest with a market share of nearly 18 per

cent. Castrol had increased its market share from per cent in 1991

to 17.4 per cent in 1997-98.

The changes in market shares of players can be attributed

mainly to the pace of new product introductions by companies,

availability of the product in the market, and aggressive advertising

and pricing strategies followed by companies. In general,

marketing costs account for 10 per cent of the selling price of

lubricants.

The market can be segmented by end-use automotives and

industrial uses, automotives accounts for about 60 per cent of the

total market, while industrial account for 40 per cent of the market.

The market can also segmented by end-users-individual and

institutional buyers, where institutional buyers include railways,

defence forces, state road transport corporations and manufacturing

firms. The individual user segment accounts for about 55 per cent

of the market, while the institutional user segment accounts for

about 45 per cent of the market..

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Automotive sales are done through two channels, retail

outlets and bazaar trade, Retail outlets are petrol pump and bazaar

trade comprises authorised dealers, spares and accessories shops,

and road-side mechanics. The share of lubricants sold at petrol

pumps has declined from 90 per cent in the late eighties to about

65 per cent in 1997-98.

Since only public sector marketing companies, are permitted

to distribute lubricants through retail outlets, international

companies such as Mobile Exxon, Shell and Caltex, have set up

joint ventures with them in order to access the distribution network

of 16,950 retail outlets. A marketing company's retail outlet sells

both its own lubricants and the foreign brand, which are usually

priced higher.

Other international players have been forced to focus on

bazaar trade. Recently, public sector marketing companies are also .

Page 47: BPCL Report

trying to increase sales through bazaar trade in order to improve

their market share. Gulf oil is planning to set up 'quick' lube

change centres' since it does not have access to petrol pump.

Lubricant companies have also been targeting automobile

companies for direct sales as original equipment (OE) suppliers.

Automotive Gear Oils: Automotive gear oils are one of the

bulk volume lubricants after engine oils world over.

.

Page 48: BPCL Report

PROFILEBHARAT PETROLEUM CORPORATION LTD.

Incorporation Year 1976Registered Bharat Bhavan

4 &6 Currimbhoy Rd Ballard Est.Bombay 400001Maharastra

Telephone 91-22-2618281/8061/1705Fax 91-22-2616793Industry RefineriesHouse Govt. of IndiaChairman S. BehuriaCompany Secretary D.M. Naik BengreAuditor M/s RSM & Co. M/s Mehra Goel & Co.Face Value 10Market Lot 1Listing Bombay

CalcuttaMadrasDelhiNSE

Registrar Bharat Petroleum Corpn. Ltd.Bharat Bhavan4 & 6 Cruimhoy RdBallard Estate Bombay -400001

.

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BPCL’s CONEPTSCOCO

The Company Owned Company Operated Retail Outlets (COCOs)

are of significant importance to the Corporation. There is a lot of

value seen by all concerned in these Retail Outlets. One of the

major problems the Oil Industry is facing, as of today, is to ensure

availability of right quantity and right quality of fuel to the general

public through Dealer run Outlets. From the consumers' point of

view, COCOs are favourite because of the right quality and

quantity of fuel delivered to them. There are a number of examples

of COCOs being patronized very heavily by the public because of

their reputation of supplying right quality and quality fuels.

The Company Owned Company Controlled Retail Outlets

represent the face of the corporation to the public at large. These

Outlets are an excellent gateway for the Oil Companies to build

their brand through visual manifestation and customer service.

They give a first hand opportunity to interact with the customers

directly. COCOs are a very valuable platform for acquiring

retailing skills, which will go a long way in preparing the .

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Corporation for de-regulation. These Retail Outlets provide an

opportunity to get a hand on experience on retailing fuels and

allied products. Some of these Retail Outlets are being used as

Training Center for the staff. Further, COCOs serve as a fall back

to the Oil Industry to ensure supply of petroleum products to the

general public, in case of strike by the dealers or threat of "No

Purchase" campaign which is happening quite often in the recent

past.

An opportunity was given to the Oil Industry to construct and

operate Retail Outlets on COCO basis under the Jubilee Retail

Outlets scheme on major important National and State Highways.

These outlets have become instant success with the customers

because of high standards of customer services including the right

quality and quantity of fuels being dispensed from these Retail

Outlets which is one of the major concerns in the mind of the

vehicle owners.

.

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PURE FOR SURE

PURE FOR SURE - The Sign of a New Revolution

Bharat Petroleum recognises that one of the basic needs of the

customers is pure quality and correct quantity of fuels. Bharat

Petroleum is passionately committed to making this need a reality

at its Retail Outlets. As one of the major initiatives in this

direction, Bharat Petroleum has launched an 'Enhanced Fuel

Proposition' (EFP) programme - A nation-wide effort a dispensing

pure quality and correct quantity of fuel, and at the same time

delivering courteous, fast and efficient service.

The retail outlets covered under this program display the 'Pure for

Sure' sign - an outturned palm forming a circle with the thumb and

the first finger - also imprinted on the dispensing units and on the

back of the blue uniform sported by DSMs, and TUV's certificate

displayed at the outlet. At such Retail Outlets, Bharat Petroleum

guarantees that the correct quality and quantity are dispensed. In

order to be able to do so, strict quality control and tracking .

Page 52: BPCL Report

measures have been put in place at every point from the Supply

Point (Depot) to the customer's fuel tank.

Special locks have been provided in tank lorries and

comprehensive sealing has been undertaken at the dispensing units.

Before certification, the Retail Outlets are subjected to stringent

tests by TUV SUDDEUTSCHLAND - INDIA, a renowned

international agency, to ensure that all parameters of the program

are complied with. Mystery audits and extensive inspections are

carried out at these Retail Outlets to ensure that they continue to

comply with the requirements of the EFP program.

EXPECTATIONS OF THE CUSTOMERS OUT OF THIS PROGRAM:

Value for money from "Pure for Sure" outlets as these outlets dispense right Quantity of pure fuel.

Better mileage and lower maintenance expenses on their motor vehicles.

Efficient fuelling and courteous service resulting in saving of time.

.

Page 53: BPCL Report

Reduced pollution due to the use of pure fuel. During the last 3 years Bharat Petroleum has implemented a set of

Customer Service Standards, which has been well appreciated by

customers. The 'Pure for Sure' program is an even more focussed,

and intense effort towards ensuring Quality and Quantity,

courteous and quick service.

STATUS OF THE PROGRAM

Bharat Petroleum Dealers have responded voluntarily to join the

"Pure for Sure" program. This has made a joint initiative between

the Company and the dealers possible to provide courteous service,

assured Quality and Quantity and efficient fuelling at the retail

outlet.

This program is a continuous effort and involves systematic

certification and therefore, interested Dealers are able to join the

program only in phases.

This program is being launched in phases. The first phase of Retail

Outlets that have been certified recently covered the 4 Metros

Bangalore & Hyderabad, at 108 sites. Another 600-700 sites are to .

Page 54: BPCL Report

follow, in 2 more phases in various cities. More customers across

wider geographical areas would therefore be in a position to access

retail outlets sporting the "Pure for Sure" logo easily.

.

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RESEARCH METHODOLOGY

Research Methodology always provides guidelines tools and

techniques for any study, research, training. Without research

methodology we can draft for any subject so before starting a study

we used a proper resource, which fulfill the requirement of any

research and training.

So it is essential that we should describe some tools and techniques

that helps me research period.

RESEARCH DESIGN :

The research design which has been used in the Project report is

descriptive researc design in particular.

.

Page 56: BPCL Report

This is rigid in nature and focuses attention on followings.

1. Formulating the objective of the study

2. Designing the method of data collection

3. Selecting the sample

4. Collecting the sample

5. Processing and analyzing the data

6. Reporting and findings

7. Suggestions and modification if any.

8. Conclusion

SAMPLE DESIGN :

Type of universe :

This is the first step in developing any sample design is to clearly

define the set of objects technically, called the universe, to be

studied. Hear, finite, universe has been used for the research

purpose.

.

Page 57: BPCL Report

SAMPLING UNIT :

A decision has to taken concerning a sampling unit before selecting a

number of sample. It may be geographical as well as individual. Here

Ghaziabad, Meeeut and Modinagar city has been taken as a

geographical and dealers / retailers as an individual unit.

SOURCE LIST :

It is also known has sampling frame from the sample is to be

drawn . No sampling frame was available there except dealers list,

we had generated an idea regarding of sample unit on the basis of

dealers list.

SIZE OF SAMPLE :

This referee to the number of items ( Outlets) to be selected from

the finite universe to constitute a sample size. The survey was

conducted of 30 outlets.

NATURE OF DATA :

In this project report the data is collected through primary source

DATA COLLECTION

Type of Data Method Adopted Mode of .

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collection Communication

Primary Questionnaire Personal Interview

QUESTIONNAIRE1. Which company’s product are you using?

BPCL 7

IBP 4

Indian Oil 9

Castrol 10

BPCL23%

IBP13%

Indian Oil 30%

Castrol 33%

.

Page 59: BPCL Report

2. How do you come to know about this company?

Through Advertisement 15

Through Dealer 10

Any Other 5

Through Adver-tisement

50%Through Dealer

33%

Any Other 17%

.

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3. Have you got any sales promotion facility ?

Yes 19

No 11

Yes63%

No37%

.

Page 61: BPCL Report

4. Which types of sales promotion facility have you got from

the company?

Sample 5

Purchase Discount 8

Occasional Gift 10

If any, other 7

Sample 17%

Purchase Discount27%

Occasional Gift33%

If any, other 23%

.

Page 62: BPCL Report

5. Which types of sale promotion facility have more attraction?

Sample 3

Purchase Discount 10

Occasional Gifts 10

Replacement Facility 5

Others 2

Sample 10%

Purchase Discount 33%

Occasional Gifts33%

Replacement Facility 17%

Others 7%

.

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6. Is there any competition among the companies related to

sales promotion ?

Yes 25

No 5

Yes83%

NO17%

.

Page 64: BPCL Report

7. What do you think about BPCL’s company product?

Excellent 2

Very Good 13

Good 7

Average 5

No Information 3

Excellent7%

Very Good 43%

Good23%

Average17%

No Information 10%

.

Page 65: BPCL Report

8. Please specify which company has much better sales

promotion facility?

BPCl 5

IBP 10

Indian Oil 12

Others 3

BPCl17%

IBP33%

Indian Oil40%

Others 10%

.

Page 66: BPCL Report

9. Are you using product of BPCL?

Yes 11

No 19

Yes37%

No63%

.

Page 67: BPCL Report

10. What criteria are you consider for using product of

BPCL company?

Price 8

Quality 12

Sales Promotion Facility 7

Any Other 3

Price 27%

Quality40%

Sales Promotion Facility23%

Any Other10%

.

Page 68: BPCL Report

11. Have you got sale promotion facility from BPCL?

Yes 10

No 20

Yes33%

NO67%

.

Page 69: BPCL Report

FINDINGS The number of petroleum is available in the market of

various companies.

The company doesn’t provide the replacement facility of

spoiled products to retailers / dealers.

The company is not given any promotional incentive to the

dealers / retailers.

There is unfrequent visit from the company representative

through the dealers/ retailers.

The price of petroleum products so much high.

The company has capture only 20% share in lubricants

market.

Company distributors do all their business in frequently cash

only.

Competitive information can be obtained.

100% mail survey is not effective.

.

Page 70: BPCL Report

This survey was relatively and expensive way to be obtained.

.

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SUGGESTION The should call a meting of dealers time to time.

Company should go for replacement facility.

Company should provide tour and traveling package.

New avenues of advertising should be launched like glow sign board etc.

Company should offer free gifts or incentive to dealers and retailers to increase their motivation level.

New appointments should be done for increasing visiting at market places.

Prices should be kept low in comparison to competitors products prices, so that company can earn more profit by selling large volumes.

IN present scenario, credit plays, and important roles in business sales so it should do its dealing in credit also.

Their should be sales promotion point scheme.

Company should collect necessary information regarding market position

The companies products has a high quality and value product of sophisticated nature for future to market, it should concentrate on indigenous & export market.

.

Page 72: BPCL Report

.

Page 73: BPCL Report

CONCLUSION

The project survey of sales promotion BPCL, that mostly

manufacturers Lubricants, petroleum products and refineries.

In our survey, we found that 20% customers of petroleum products

used BPCL’s products. Mostly users are satisfied but dealers are

not satisfied with the promotional policy of company.

Dealers / retailers complaints about its price sales promotion

facilities, distribution network, advertisement, and occasional gifts

packages.

We can suggest that if BPCL cares the above mention complaints

and other promotional policies; it can improve it market share and

dealers/customer satisfaction.

.

Page 74: BPCL Report

Annexure

.

Page 75: BPCL Report

QUESTIONNAIRE

Q. Which company’s product are you using?

a. BPCL

b. IBP

c. Indian Oil

d. Castrol

Q. How do you come to know about this company?

a. Through Advertisement

b. Through Dealer

c. Through any other sales per motion facility, please specify

----------------------------------------

Q. Have you got any sales promotion facility ?

a. Yes

b. No

Q. Which types of sales promotion facility have you got from

the company?.

Page 76: BPCL Report

a. Sample

b. Purchase Discount

c. Occasional Gift

d. If any, other please specify

Q. Which types of sale promotion facility have more attraction?

a. Sample

b. Purchase Discount

c. Occasional Gifts

d. Replacement Facility

e. If any other please specify ----------------------

Q. Is there any competition among the companies related to

sales promotion ?

a. Yes

b. No

Q. What do you think about BPCL’s company product?

a. Excellent

b. Very Good

.

Page 77: BPCL Report

c. Good

d. Average

e. No Information

Q. Please specify which company has much better sales

promotion facility ?

a. BPCl

b. IBP

c. Indian Oil

d. Others

Q. Are you using product of BPCL?

a. Yes

b. No Q. What criteria are you consider for using product of BPCL

company?

a. Price

b. Quality

c. Sales Promotion Facility

d. Any Other please specify ---------------------

.

Page 78: BPCL Report

Q. Have you got sale promotion facility from BPCL Company ?

a. Yes

b. No

.

Page 79: BPCL Report

Please give your suggestion about the sales promotion facilities.

___________________________________________________

___________________________________________________

___________________________________________________

Response Form

Name of firm ______________________________________

Address ___________________________________________

Tel Number ________________________________________

Date: Signature

.

Page 80: BPCL Report

LIST OF RESPONDENTS NAME & ADDRESS

NAME OF FIRM ADDRESS DEALING

IN

PH. NUMBER

Jai Bharat Enterprises Jawahar Chowk , Meerut BPCL 0121-53359

Shivam Oil Traders

Auth. Dealer

227, Murti Complex, Kesarganj,

Meerut

BPCL 0121-526630

9412205179

Auto Emporium 178 /2, Hanuman Chowk, Meerut Indian Oil 0121- 660832

Pal Auto Stores Hanuman Chowk, Meerut Castrol 0121-2660564

Bajaj & Co. Sadar Bazar, Meerut Castrol 0121-2660375

Bhawani Oil Co. Kesarganj, Meerut Indian Oil 0121-520188

Avon Oil Agency

Auth. Dealer

Opp. PNB. Modi Nagar Castrol 01232-47117

Bawa Motor Gaylord Building, Modi Nagar IBP 01232-50071

Jai Shankar Oil

Company

Govind Pur, Modi Nagar Indian Oil 01232-500634

Driwll Service Station G.T. Road, Shahdara, Delhi Castrol 011-22583113

Victory Service Station G.T. Road, Shahdara, Delhi Castrol 011-22580259

Dashmesh Oil Traders

Exclusive Lube Shoppe

35, OM Market, OM Nagar,

Sahibabad, Ghaziabad

BPCL 0120-2634504

K.B. Malhotra

Auth. Dealer

OM Market, Mohan Nagar,

Ghaziabad.

Castrol 0120-4636346

Arvind Gupta Lohia Nagar, Ghaziabad. ELF 0120-2706188

.

Page 81: BPCL Report

Auth. Dealer

Japline Traders E/3, New Arya Nagar, Ghaziabad.

U.P.

BPCL 0120-2733929

Mahalaxmi Oil

Company

85, New Arya Nagar, Ghaziabad. Indian Oil 0120-2730654

Aggarwal Traders 85, New Arya Nagar, Ghaziabad. Indian Oil 0120-2730754

Ambay Motors Shop No.1, Shatyam Enclave,

Ghaziabad.

Castrol 0120-2862057

EssKay Enterprises 85, New Arya Nagar, Ghaziabad. Castrol 0120-2211401

Satyam Motors 237, Ambadkar Road, Ghaziabad. Indian Oil 9811259483

Shri Balaji Motor E/3, New Arya Nagar, Ghaziabad.

U.P.

BPCl 2851678

Shivam Oil Company Bhatia Chowk, Ghaziabad. SHELL 0120-860120

Shakti Motor Parts 54, Model Town, Ghaziabad Indian Oil 0120-2861473

Chaudhary Service

Station

Near Lal Qua, Ghaziabad. Indian Oil 0120-2866212

0120-2866211

G.K. Auto Mobiles Lohia Nagar, Ghaziabad. BPCL 0120-2036346

Saurabh Auto Mobile Shahadra, Delhi Castrol 011-2211378

Prashant Dubey C-19, Lohia Nagar, Ghaziabad Castrol 0120-2706188

Arihant Enterprises C-20, Lohia Nagar, Ghaziabad.

U.P.

IBP 0120-2721729

Agarwal Automobile &

Sandeep Oil Traders

A/187, Hapur Road, Ghaziabad.

U.P.

IBP 9811625049

0120- 2736994

Gupta Oil Company Hapur Road, Ghaziabad. IBP 0120-2736920

.

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.

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BIBLIOGRAPHY

Resource Methodology – C.R. Kothari

Company Profile – www.bharatpetroleum.com

Questionnaire

Magazines & Newspaper

.