Feasibility Analysis in Setting up a Retail Outlet

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University of Petroleum & Energy Studies

PROJECT TITLE :

TECHNO ECONOMIC FACTORS CONSIDERED WHILE

SETTING UP A PETRO RETAIL OUTLET

Submitted to : Submitted By : Mrs. Namita Pragya Sanchit Baijal

BBA Oil & Gas MarketingEnrolement No. R170210040SAP ID- 500011864Batch : 2010-201


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Contents

1. Introduction

2. Overview of Petro Retail Outlets in India

3. Overview of city Dehradun

4. Steps involved in setting up an Retail outlet

5. Site information

6. Precautions taken care for site selection

7. Technological & Economical Factors invoved insetting up an Retail outlet

8. Three proposed location to open a new Retail

Outlet9. Comparison of the 3-Proposed Sites according to

various Parameters

10. Conclusion

Introduction


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A Petro Retail Outlet is one from which Petrol & diesel issold or is offered for sale to consumers/the public forpurposes of use or consumption. These retail outlets isopened by a particular company in any place it requireslike in the country . A retail outlet offers consumers engineoil also for there vehicles.

Types of Retail Outlets :

1. COCO : Retail outlet which is Company Owned Company Operated means that an RO isopened by the company in the area which company desires & all the employees are

elected by the company itself.

2. CODO : Retail outlet which is Company Owned Dealer Operated means that an RO isowned by the company i.e it set up whole RO & it gives to a Dealer who will operate this

Retail outlet. In Profits are shared between Company & Dealer.

3. DODO : Retail outlet which is Dealer Owned Dealer Operated means that an RO is bothowned & operated by the dealer itself, he shares the profit itself.

Overview of Petro Retail Outlets in India

India has approx 25000 Petrol stations. Almost 17000 Petrol Stationsbelongs to IOCL, 5000 each of BPCL and HPCL. IOCL has more nos of Petrol Stations than whole of Canada or UK. The Punjab state of India hasapprox 700 nos of Petrol Stations or Retail Outlets as discussed in officiallanguage. The state of Haryana has more than 500 Petrol Stations alone.

Overview of City Dehradun
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/IOCLhttp://en.wikipedia.org/wiki/BPCLhttp://en.wikipedia.org/wiki/HPCLhttp://en.wikipedia.org/wiki/IOCLhttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/UKhttp://en.wikipedia.org/wiki/Punjab_(India)http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Punjab_(India)http://en.wikipedia.org/wiki/UKhttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/IOCLhttp://en.wikipedia.org/wiki/HPCLhttp://en.wikipedia.org/wiki/BPCLhttp://en.wikipedia.org/wiki/IOCLhttp://en.wikipedia.org/wiki/India


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Dehradun is the provisional capital of Uttarakhand state. It is nestled betweenthe Himalayan foothills to the north and the Shivaliks to the South. The townoffers breathtaking scenery.

City of Dehradun is major hub of tourists of india . Many People from India ,comes here for there recreation activity & to enjoy the weather of Dehradun.

Dehradun is situated at an altitude of 2,200 ft in the Doon Valley between two of the most important rivers in India, the Ganga and Yamuna. It offers beautifulscenery and a moderate climate in summer, and so is an ideal place to relax andescape the heat of the plains below. The town also serves as a convenient basefor visiting the area's many tourist sites.

Dehradun has experienced tremendous growth in recent years, and currently hasa population of around 550,000. It is also famous for the Doon School, which isoften referred to as the Eton of India.
http://wikitravel.org/en/Uttarakhandhttp://wikitravel.org/en/Etonhttp://wikitravel.org/en/Etonhttp://wikitravel.org/en/Uttarakhand


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Site Information(Marketing Intelligence)

Steps involved in Setting up an Retail outlet

Find out a proper location to open a Reatil outlet.

Availability of land

Cost of the land

After seeing the cost of land we have to do a traffic count that is numberof vehicles going from that location.

See the Terrain of land i.e the vertical and horizontal dimension of landsurface.

A stretch & side of the road is selected & proposed location of the site islocated on the map:

Having done so a shorter stretched on the road is selected

Class of the market to be identified

The proposed location are short listed.

Apply for a retail outlet licence

We have to take NOCs from various departments

Build a proper Infrastructure

Do a proper Storage facilities

Applications for allied businesses

Fire fighting equipments

Automations

Valves

IT services

Canopy i.e top of the our petrol Pump

Design a proper drive way

Air and pollution check


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Marketing intelligence is important for planning & setting up an new Retail OutletInformaton of MI contains:

a. Population Countsb. Spending Habbitsc. New Developmentd. Nearby ATMs , Petrol Stations, Convinient storese. Age Profile

Precautions Taken care for site selection:

No high tension wire passing through it.

No big drain at the approach.

Site should be free of Big trees.

Should not be any proposed Flyover or road widening.

No court case on the land.

The land should be earmarked

The site meets all requirements of explosives

PWD(Public Works Department) should pass that site.

Distances to major landmarks from our RO .

See whether that location is on a National Highway or not.


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Technological & Economic Factors Involved insetting up an Retail Outlet

Technological Factors :

1. Dispencing Units

2. Automation

3. Valves

4. Storage facility

5. Fire Fighting Equipements

6. Tanks & Pumps

7. Automatic Tank Gauging

Economic Factors :

1. NOCs from various Departments

2. Allied Retail Business

3. Salaries & wage

4. Lobour Cost

5. Land & construction Cost

6. Tie ups with different stores


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Three Proposed Locations to Open a new PetroReail Outlet

1. Rajpur : This site is basically located in the heart of Dehradun,all the people come here for there recreation pur pose. An RetailOutlet to open this site is good because it is a densily populatedarea & many people pass by from the Rajpur road. This location isalso very good for a new retail outlet because its surrounding areais full of shops & Cinema Hall etc so an individual stops here forthere recreation & there by its sales can increase.

2. Ballupur: This site is in central location of Dehradun i.e.it connects to every place in Dehradun like from here wecan reach ISBT bus stand, Rajpur road, ONGC bhavan etc.This site is very busy daily most of the vehicles from light toheavy vehicles passes from here . For an Retail Outlet toopen this site is good because it is an area where there isno competitors in the circle of 3 Km. So it enjoys the thebenefit of more sales .

3. Sela qui: This site is near industrial area & pharma city. VariousSchools & Colleges are also near to it. Cost of land is very low inthis area . For a retail outlet to open in this could be beneficial.


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Comparison of the 3-Proposed Sites according to variousParameters

Parameters Rajpur Ballupur Sela quiLand Availability Less High Very High

Land Cost Maximum Reasonable Minimum

Location In & Aroundproposed sights

Posh Area Trade ,Education &Transportation Hub

Industrial Area

Visibility Of the Location Less visible Highly Visible Visible

Class of people High class Medium Class Lower Class

Population Density High High Low

Legal Issues No No No

Environmental Factors Low High Very High

Traffic Density High Maximum Low

Fire & Police Facility Yes Yes No

Other Competitors Many Few Yes

Availability of Technology Yes Yes Yes

Automobile Frequency Medium High Average

Manpower Availability Yes Yes Yes

Presence of HighTension Wires

No No No

Dividers Yes No No

Flyovers No No No

Parking Facility No Yes Very less

Any Proposed Flyover orDivider in near Future

Not yet Not yet Not yet


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Conclusion

I have conducted my survey on all the three sites in dehradun& finally Icame to conclusion that Ballupur is the best suitable site for my retail outlet to be set up.

I finalized Ballupur Because of the Following Reasons:

It is in the Central location of Dehradun

Traffic Density is Maximum on the road

It has three major factors of this location :

It is a trade hub

It is a education Hub

It is a transport Hub

Connects to the national haighway 72

Easily approachable

Roads are wide

Few competitors are there

Class of people residing

Major availability of institutions like fri, ima , branded showroomslike automobile showrooms , garments showrooms , sports

showrooms etc.


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Thank You

Feasibility Analysis in Setting up a Retail Outlet

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