BPCL SIP

Potential Assessment of

SBU LPG, BPCL Ahmedabad

Submitted to-

Dr. Satish Pandey –Associate Professor

School of Petroleum Management, PDPU,Gandhinagar

Submitted By-

Aakash Malu

Roll No. 20131001

PGP 2013-15 Batch – MBA (Energy & Infrastructure)

School of Petroleum Management, PDPU, Gandhinagar

Company Overview - BPCL

SBU LPG

Bharat Gas

Domestic LPG

Commercial LPG

Bharat Metal

Cutting Gas BMCG

Beyond LPG

5 Kilograms MINI LPG

Team Structure – Bharat

Gas

RECOMMENDATIONS

COMMERCIAL LPG AND BMCG

5 KILOGRAMS MINI LPG

OBSERATIONS AND FINDINGS

DATA SOURCES ,SAMPLING ,DATA

COLLECTION

RESEARCH TYPE AND APPROACH

OBJECTIVE AND SCOPE 1. To Identify the primary reasons for the drop in the sales of commercial LPG

in last 2 years ,discounting the fact that PNG has penetrated in majority of the

potential areas.

2. To validate the reasons identified by having interactions with customers

,agency managers and other stake-holders and then accordingly suggest

suitable suggestions .

3. To analyse the sales potential of the 5 K.G Mini LPG ,to identify the

marketing gaps if any and to identify the potential reasons for the product not

doing as per the companies expectations in Ahmedabad.

4. To determine the level of awareness amongst the people about the newly

launched product that is 5 K.G Mini LPG .

5. To analyse the satisfaction level amongst the existing customers of

commercial LPG.

6. To analyse the buying pattern of the 5 K.G Mini LPG .

7. To get an overview of the operations at the LPG bottling Plant ,so that the

whole supply chain could be understood in a better manner .

8. To get an overview of the operations of a LPG distributor or Gas Agency .

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE 1. Visiting the various LPG distributors to understand there

processes and the problems faced by them in increasing or

maintaining the sales of commercial LPG ,I visited 4 Agencies

.

2. I visited close to 200 customers of these 4 distributors ,these

were such customers who had not switched to PNG but still

then either they had reduced there purchase or had

completely stopped for past 1 year .

3. BPCL has recently launched 5 KG mini LPG ,but the sales

are not as per expectations ,so I visited the 4 R.O’s where this

product was launched ,took feedback from the R.O managers

and staff who were involved with the customers .

4. More then 250 customers were interview at the various R.O’s

in order to understand the level of awareness amongst the

various customers .

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE 1)TYPE –Exploratory and Descriptive

2)Approach - Qualitative

RECOMMENDATIONS





OBJECTIVE AND SCOPE

1) PRIMARY DATA COLLECTION - Surveys, observations .

2) SECONDARY DATA – Past Consumption Patterns of

customers.

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

Different Variants Kilo-Grams INR

TYPE WEIGHT RATES RATE/KG

Domestic 14.3 420 30

Commercial 19.2 1650 86

5 KG Mini 5 475 95

Black Marketed 14.3 1000 70

RATE COMPARISON FOR VARIOUS

OPTIONS AVAILABLE

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

0

20

40

60

80

100

120

140

160

180

Yes I have heardabout the product

Yes I knowsomething like this

NO I don’t know at all

Yes I knoweverything about it

1) 2) 3) 4)

N

u

m

b

e

r

o

f

p

e

o

p

l

e

Response

Majority are unaware,250 interviewed at 3

different R.O’s

Consumer awareness needs to be

increased

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

0

2

4

6

8

10

12

14

16

Got to know from theNewspaper

Got to know from Standy atR.O

Got to know from friend

N

u

m

b

e

r

o

f

p

e

o

p

l

e

Response

How did customers got to know about the product.

The above are the results of the tele-interviews to

the people who had made a purchase of the Mini LPG

5%

30%

5%

30%

30%

Why Did I Purchase Mini LPG ???

Only for Camping

Stand-by Connection

Week-End Home

Commercial Activity

Re-allocated so Home-Use

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

Recommendations for creating awareness

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE Hoardings and Stands at VARIOS BPCL R.O’s,

RAILWAY STATION ,I.T AREAS ,BUS STANDS

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE TWO Different advertisement suggestions

1)RADIO JINGLES

Mass out-reach , maximum listeners are house-wives and

youth, singles, bachelors . Low cost ,could be done on

specific cities as per needs.

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE 2)Using DIGITAL Media and E-COMMERCE

Large number of user base, strong co-relation between the

cust

omers , prototype testing ,0 or very low costs, co-branding.

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPESome Issues Worth

Mentioning1)AREA – Prahaladnagar ,Vastrapur ,Satellite

,S.G Highway ,Sola ,Gandhinagar(Info-

City),AnandNagar.

2)The Number of R.O are in the ratio as follows

BPCL ,HPCL ,IOCL = 1:1:2.

3)No Gas Agency or Retail Outlet near Info-City.

4)Gas Agencies as well as R.O owners need a

system in Please for managing the new

business.

5)Demographic factor should be discounted.

Overview -

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

Competitors –OMC’s(2),Private(6-

7)

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

Comparison Of Using The LPG

OfPRIVATE

PLAYERS

1)Lower Calorific

Value

2)No Quality

Assurance.

3)Probability of getting

cheated in terms of

weight is higher.

4)100% utilization all-

most not possible.

5)No insurance in

case of any

accident.

OMC’s-

BPCL,HPCL.

1)Higher calorific

value.

2)100% quality

assurance.

3)Probability of getting

cheated in terms of

weight lower.

4)100% utilization is

possible.

5)Company has an

insurance policy.

6)Very large number of

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

Comparison Of Using The LPG

OfPRIVATE PLAYER

1)Lower prices.

2)They give a facility of weight differential pricing.

3)Offer better services in terms of DELIVERY TIME,CREDIT.

4)Easy to get a connection .

5)Very low or no

security deposit.

6)Marketing persons .

OMC’S- BPCL,HPCL

1)Higher prices.

2)No facility of weight differential pricing.

3)Services not good when compared to Private Players.

4)Found it difficult to get a connection.

5)They have a fixed security deposit

6)No marketing persons.RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE 1)Cross-subsidizing and hence rates are 5-10%

higher

when compared to private players .

2)Pricing is fixed for a month ,OMC’s decide it on 1st

of

every month while Private Players decide it on 5th

of

the same month.

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

Findings from one-to-one in depth interviews with Agency

Managers

1)Higher Penetration by Indane ,the Gas

Agencies are in the ratio

BPCL:HPCL:IOCL = 1:1:2 .

2)The motivation from dealers side needs to

be very high ,and it has been found lacking ,

in the same time 3 of our dealers have lost

the sales by approximately 10% each

,HPCL’s one of the dealer in the same area

has increased the sales by 50% in two years

time.

3)Inter-firm competition from BPCL ,initiated

by higher trade discounts offered by the

company to the dealers ,further demotivating

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE 4)Dealer once de-motivated ,didn’t took

interest in the business even when trade

discount’s were pulled back by the company.

Hence further giving opportunity to other

players.

5)Dedicated Sales Manager For Commercial

LPG

6)Appointing dedicated dealers for

Commercial LPG as is done by IOCL .

Diversion is the root cause – 50

sites .

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

Bharat Metal Cutting Gas -

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

A few details about the

product-

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

1)For precision cutting of metals .

2)It was to compete with Acetylene .

3)It started competing with LPG .

4)The product is proprietary to BPCL .

5)Majority of the customers are Large

Companies.

RECOMMENDATIONS





COLLECTION


OBJECTIVE AND SCOPE

1) Majority of the users are SME’s .

2) The process is such that they don’t need very

high precision .

3) They cannot afford even 1% increase in the

price.

4) Majority of SME’s are using Acetylene for

precision welding purpose and not for metal

cutting purpose .

BPCL SIP

Documents

sales of commercial

g mini lpg

various customers

various lpg distributors

lpg bottling plant

various r

sales potential

different r