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1 A PROJECT REPORT ON CUSTOMER OVERVIEW OF RETAIL OUTLETS (HPCL vs. RELIANCE) FOR HINDUSTAN PETROLEUM CORPORATION LIMITED. SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILMENT OF TWO YEARS FULL TIME COURSE MASTERS IN BUSINESS ADMINISTRATION(MBA) SUBMITTED BY KESHAV V. INGALE (BATCH 2006-07) VISHWAKARMA INSTITUTE OF MANAGEMENT, PUNE-48

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Page 1: Customer overview of retail outlets  hpcl vs. reliance

1

A

PROJECT REPORT

ON

CUSTOMER OVERVIEW OF RETAIL OUTLETS (HPCL vs. RELIANCE)

FOR HINDUSTAN PETROLEUM CORPORATION LIMITED.

SUBMITTED TO

UNIVERSITY OF PUNE IN PARTIAL FULFILMENT OF TWO YEARS FULL TIME COURSE

MASTERS IN BUSINESS ADMINISTRATION(MBA)

SUBMITTED BY

KESHAV V. INGALE (BATCH 2006-07)

VISHWAKARMA INSTITUTE OF MANAGEMENT, PUNE-48

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ACKNOWLEDGEMENT

I wish to express my sincere thanks and gratitude to Mr. V. V. Mandlekar,

Regional Manager, Aurangabad Regional office and Mr. Bishal Kumar, Sales Officer,

Nanded Sales Area, for giving me an opportunity to do my summer training in their

esteemed organization, HINDUSTAN PETROLEUM CORPORATION LTD .

I also thank every single individual in the team who has helped me in doing this

project.

This project could not have been complete without the guidance of our Director,

Dr. Sharad Joshi and my project guide, Dr. V. H. Gote.

Once again I express my gratitude to everybody from HPCL for their

continuous support towards my research efforts and for their kind co-operation.

KESHAV V. INGALE

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CONTENTS

Sr. No. Topic Page No.

1. EXECUTIVE SUMMARY 1

2. OBJECTIVE AND SCOPE OF PROJECT 2

3. COMPANY PROFILE 4

4. THEORITICAL BACKGROUND 30

5. RESEARCH METHODOLOGY 33

6. DATA ANALYSIS AND PRESENTATION 36

7. LIMITATIONS 48

8. CONCLUSION 49

9. RECOMMENDATIONS 50

10. BIBLIOGRAPHY 51

11. ANNEXURE 52

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CONTENTS

Sr. No. Table/chart Page No.

1) TYPE OF VEHICLE 36

2) OCCUPATION 37

3) TYPE OF FUEL USING 38

4) OUTLET PREFERENCE 39

5) FACTORS AFFECTING SELECTION 40

6) FUEL REFILLING CARD USERS 41

7) BRAND AWARENESS 42

8) SERVICE GIVEN ATOUTLETS 43

9) CUSTOMER EXPECTATIONS 44

10) VALUE ADDED SERVICES 46

11) RATING 47

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EXECUTIVE SUMMARY

This project is undertaken to study the Customer Overview of Retail Outlets of

different fuel supplying companies such as HPCL, IOCL, BPCL, Reliance and IBP.

I opted for this project titled Customer overview of Retail outlets

Reliance vs.

HPCL because of overflowing number of customers approaching Reliance s outlets

and the number is still increasing. I intended to find out the factors that influence the

customers choice of Retail outlets. This will help HPCL in formulating better

marketing strategies and improvements. I am confident that this project will help me in

opportunities in petroleum industry and future career also.

I had done this project for HPCL because it is one of the NAVARATNA COMPANIES

OF INDIA and is a government of India enterprise. HPCL is supposed to be one of the

best fuel suppliers in India. Now a days HPCL is feeling threat of RELIANCE.

This project is a market research carried out in NANDED CITY under the jurisdiction

of AURANGABAD DIVISION during the period 01st JUNE 2006 To 31ST JULY

2006.

This project has been carried out by conducting------

1. Initial discussions with Dealers and staff.

2. Customer survey through ---

a. Customer segmentation

b. Feedback.

Finally the analysis and observations revealed that customer prefers any outlet because

of following factors-----

1. Quality of Fuel

2. Communication and Service

3. Ambience at outlet.

So it is recommended to the company to focus on improvements in these areas.

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OBJECTIVE

The idea of Market Research is that it helps business organizations to develop

better marketing strategies. The project undertaken was to study customer overview of

retail outlets.

The objectives were --

1) To find satisfaction level among customers.

2) To segment the customers according to-

a. Vehicle type

b. Occupation

3) To find brand awareness among customers.

4) To find expectations of the customers from retailers.

5) To find out the constraints for acceptance of the product

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SCOPE OF THE PROJECT

This project has been carried out for Hindustan Petroleum Corporation ltd. In

Nanded city which under the jurisdiction of Aurangabad region.

The area of operations were the Retail outlets in and around Nanded city, which

are as follows---

Company Retailer

1 HPCL A. P.Patel & co

2 IOCL Gundewar Petrol pump

3 HPCL Waglekar petrol pump, Dhanegaon

4 BPCL Bafna Motors

5 BPCL Udaygiri petrol pump, Vasangaon

6 IOCL Sai-prasad servo filling station, Dhanegaon

7 IOCL Bhavani petrol pump, vasarni

8 IOCL Ganga-Yamuna Servo care, VIP Rd.

9 Reliance Bhokar phata

10 Reliance CIDCO

The sample size of 270 customers was selected for the study.

The products covered for the study were Petrol and Diesel.

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COMPANY PROFILE

WHO ARE WE?

Hindustan Petroleum Corporation Limited today is the second largest integrated oil

refining and marketing company in India with a turnover of Rs 646.89 billion (US$

14,709 Millions). The Corporation has already been identified by the Government of

India as a company that has the potential to become a global giant.

OUR ROOTS

1974:

Hindustan Petroleum Corporation comes into being after the takeover and merger of

ErstWhile Esso and Lube India undertaking.

1976:

Caltex oil refining India ltd. is taken over by the Government and subsequently merged

with HPCL in 1978.

1979:

Kosan Gas company the concessionaires of HPCL in the domestic LPG market, are

taken over and merged with HPCL.

HPCL thus came into being after merging four different organizations at different point

of time.

OUR PROFILE:

HPCL, a Fortune 500 company, is the second largest integrated refining and marketing

Oil Company in India. It is a mega Public Sector Undertaking (PSU) with Navratna

status.

HPCL accounts for 20.9 % of the market share and 10.3% of the nation s refining

capacity with two coastal refineries, one at Mumbai (West Coast) having a capacity of

5.5 MMTPA and the other in Vishakapatnam (East Coast) with a capacity of 7.5

MMTPA. HPCL also holds an equity stake of 16.95% in Mangalore Refinery &

Petrochemicals Limited (MRPL), a state-of-the-art refinery at Mangalore with a

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capacity of 9 MMTPA. HPCL is well on its way towards setting up another grassroot

refinery in the state of Punjab, called Guru Gobind Singh Refineries Limited.

HPCL also owns and operates the country s largest Lube Refinery, producing Lube

Base Oils of international standards. With a capacity of 335,000 Metric Tonnes. This

refinery accounts for over 40% of the country s total Lube Base Oil production.

HPCL has returned Excellent performance for twelve years in a row till 2002-03,

since signing of the first MOU with the Ministry of Petroleum & Natural Gas. HPCL

won the prestigious MOU Award for the year 2002-03 for Excellent Overall

Performance and for being one of the Top Ten Public Sector Enterprises who fall under

the Excellent category. HPCL s performance for the year 2003-04 also qualifies for

Excellent rating.

The Corporation over the years has moved from strength to strength on all fronts.

Our refining thruput has increased three fold between 1984/85 to 2003/04, rising from

4.47 million tonnes in 1984/85 to 13.70 million tonnes currently. The turnover

expanded by around 2000% from Rs. 2687.46 crores in 1984-85 to an impressive Rs.

56,332.57 crores in 2003/ 2004. The gross profit rose from Rs. 101.76 crores in

1984/85 to Rs. 3,642.66 crores in the year 2003/ 2004.

Consistent excellent performance has been made possible by highly motivated

workforce of more than 10,561 employees working all over India at its various refining

and marketing locations.

To succeed in the competitive environment, the Corporation has taken up initiatives

such as Business Process Reengineering exercise, creation of Strategic Business Units,

ERP implementation, HR initiatives such as Organizational transformation, Balanced

Score Card, Competency Mapping, bench marking of refineries and terminals for

product specifications / safety, ISO certification of Refineries / marketing / pipeline

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operations, branding of fuels, Supply Chain Management for improving logistics,

customer oriented approach, up-gradation and modernization of facilities.

As part of ERP implementation a total of 261 locations have gone live as of March 05.

Approximately 85% of Corporations sales by volume are being recorded in the system

with close to 3300 users currently working on this system.

INFRASTRUCTURE:

For over a quarter century, HPCL has been partnering India s progress.

Keeping pace with the Nation s energy requirements constantly fueling its growth

HPCl has emerged as India s second largest oil refining and marketing company.

HPCL today owns and operates two coastal refineries at Mumbai and Visakh. Add to

this a joint venture refinery at Mangalore, two cross country pipeline and an extensive

network of terminals, depots, bottling plants and aviation servicing facilities and you

begin to appreciate the true dimensions of a gigantic organization.

Retail Zonal offices 4

LPG zonal offices 4

Direct sales Regional Offices 18

Retail Regional offices 41

LPG Regional offices 26

Terminal / TOPs 36

Lube Blending plants 6

Exclusive Lube Depots (COLD/COD S) 21

Commissioning and forwarding agents 49

Pipeline capacity (MMTPA) 9.05

LPG Bottling plants 40

CNG Outlets 46

LPG import facilities 2

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LPG Bottling capacity (TMTPA) 1990

LPG TOP s 2

Activation fuel stations 10

Inland Relay Depots 79

Retail Outlets 6667

SKO / LDO Dealership 1648

Lube distributors 160

LPG Distributerships 2153

LPG Customers (Lacs) 217.1

LPG DBC Holding (Lacs) 112.8

BOARD OF DIRECTORS:

Chairman & Managing Director

(Mahesh B. Lal)

Director-HR Director-Marketing Director-Finance Director-Refineries

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ACHIEVEMENTS AND AWARDS:

Awaaz Consumer Award 2006

HPCL has been awarded the Awaaz Consumer Award 2006 in the Auto Fuel

Category as the Most Preferred Auto Fuel. HPCL has been selected as India s most

preferred Auto Fuel based on a national consumer preference survey, which was

conducted by A C Nielsen ORG Marg on behalf of Awaaz a part of the CNBC - TV

18 Network

Golden Peacock Award for Environmental Leadership and Environment

Management 2006

Our Mumbai Refinery bagged the Golden Peacock Global Award for Environmental

Leadership for the year 2006 in Refinery Sector while our Santacruz ASF was

awarded the Golden Peacock Environment Management Award for the 2nd

consecutive year for various Safety, Health and Environment Initiatives in Environment

Management taken by the ASF.

Reader s Digest Platinum Award to Club HP

HPCL s Club HP was awarded the Reader s Digest Trusted Brands Survey 2006

Platinum Award for outstanding achievement of Achcha Lagta Hai Brand of Club HP

Suraksha Puraskar to HPCL s Mumbai Refinery

National Safety Council awarded NSCI Safety Award Suraksha Puraskar to Mumbai

Refinery for its Outstanding Performance in Occupational Safety & Health

Management Systems

Greentech Gold Safety Award 2006

HPCL has won 9 Greentech Gold Safety Awards for the year 2005-06 for

Outstanding Achievement in Safety, Health & Environment.

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Golden Peacock Award for CSR

Awarded the prestigious Golden Peacock Award 2005 by Institute of Directors for

Corporate Social Responsibility. The Award was presented by the Hon ble Chief

Minister of Delhi, Smt Sheila Dixit and was received by our C&MD, Shri M B Lal

Awards to Refineries:

Technology

o In its long list of achievements in the recent past, HPCL's Mumbai Refinery has

added one more feather to its cap by winning the prestigious Golden Peacock

Award 2001. The Award is in recognition of Mumbai Refinery's overall

innovative approach and the specific application of this approach for developing

and commercializing a globally competitive technology & installing the world's

first plant for the production of Food & Petrochemical Grade Hexane using

Normal Methyl Pyrrollidone (NMP) as solvent. The Award was presented at the

12th World Congress on Total Quality held at Mumbai.

o HPCL Mumbai Refinery was awarded the prestigious national level Technology

Award by the Council of Scientific and Industrial Research (CSIR) for the year

2001. The Technology Award is presented by CSIR for a specific and

innovative technological achievement that has a sustained and visible impact.

Mumbai Refinery has won the award jointly with Indian Institute of Petroleum

(IIP), Dehradun in the area of Chemical Technology for developing a globally

competitive technology for the production of Food and Petrochemical Grade

Hexane using NMP (N - Methyl Pyrrolidone) as solvent.

o In the year 2000-01 Mumbai Refinery received National Petroleum

Management Program (NPMP) for successful implementation of Computerized

Maintenance Management System (CMMS)

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o Mumbai Refinery won the prestigious Golden Peacock Award 2002 for

developing innovative technology to reduce benzene content in HAN for the

production of Green MS .

Safety

HPCL always assigns highest priority to safety. This has also been included as

performance criteria in the Memorandum of Understanding signed with the

Government of India for the year 2000 - 01. Some of our achievements in the past are

reflected in the numerous awards received by us over the years.

Mumbai Refinery bagged the following awards:

o Oil Industry Safety Directorate's Award (OISD) for excellence in safety

practices for 1998 - 99.

o Safety Award for the year 1998 by the Council of Industrial Safety, Mumbai for

the 'Longest Accident Free Period'

o Award for Safety Awareness from Factory Office, Govt. of India, for 1994,

1995, 1996, among 16 industries in the Chembur area.

o First prize for achieving lowest Accident Frequency Rate among Chemical and

Fertilizer companies in Maharashtra, from the Council of Industries Safety in

the year 1995 - 96.

o Award of Honour for longest Accident Free period in 1991 - 92.

o Bagged the OISD Safety Award for Best Safety Performance in 2001-02

amongst all the refineries.

o Bagged Maharashtra Safety Award for longest accident free period for 2001. It

is the first refinery in last 10 years to complete 11 Million Man hours of Safe

operation.

o National Safety Council awarded Mumbai Refinery with NSCI Safety Award-

Prasansa Patra for its performance in occupational safety & Health

Management System on December 27, 2003.

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Vishakha Refinery bagged the following awards:

o Certificate of Commendation from Fire Protection Association, UK and earned

award of Honour from the National Safety Council, USA in the year 1995 - 96.

o Award from the National Safety Council (NSC), USA, for the year 1993 for the

highest safety record among manufacturing plants worldwide.

o Safety Awards from the British Safety Council for three consecutive years from

1990 - 92.

o National Energy Conservation Award from the Ministry of Power for excellent

performance in efficient utilization and conservation of energy, in 1992.

o OISD Award for Best Refining Installation, for 1990 - 91.

Environment

HPCL has always accorded highest priority to environment protection in its operations.

Some of its achievements in this area are:

o On World Environment Day i.e. June 05, 2001, Visakh Refinery received an

award from the Hon'ble Chief Minister of Andhra Pradesh towards proactive

steps in minimizing solid waste generation.

o Mumbai Refinery achieved Level 8 (out of max. 10) of International Safety

Rating system (ISRS) while Visakh refinery achieved level 6 and have initiated

action for achieving level 8.

o Both refineries received ISO 14001 certification.

WE BELIEVE:

OUR MISSION:

"HPCL, along with its joint ventures, will be a fully integrated company in the

hydrocarbons sector of exploration and production, refining and marketing; focusing on

enhancement of productivity, quality and profitability; caring for customers and

employees; caring for environment protection and cultural heritage.

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It will also attain scale dimensions by diversifying into other energy related fields

and by taking up transnational operations."

OUR VISION 2020:

To be a World Class Energy Company known for caring and delighting the customers

with high quality products and innovative services across domestic and international

markets with aggressive growth and delivering superior financial performance. The

Company will be a model of excellence in meeting social commitment, environment,

health and safety norms and in employee welfare and relations.

OUR BUSINESS:

1. MARKETING:

A) LPG:

Since its introduction in 1955, LPG consumption has increased manifold. It has

become the household fuel of choice. At last count, HPCL had nearly 22 million

domestic LPG consumers.

HP Gas, the HPCL brand of LPG, is bottled at 40 plants spread across the country

with a total capacity of 2000 TMT Per Annum.

Safety is ensured at every stage, from bottling to distribution, by subjecting all

related operations to the closest scrutiny and conforming to international safety

standards, making HP Gas the safe, convenient fuel our consumers have come to trust.

Exiting developments have taken place in the LPG section. In its endeavour to

improve the costumer satisfaction, HPCL has launched the Ji Haan , services in 2002,

aimed at reinforcing a strong positive service orientation of HP Gas. .

Basis research finding on customers apprehension on the weight of gas in cylinders,

HP Gas has, since last year, provided weighing scales to all its delivery boys across the

country, given the customer an option to weigh the cylinders at their doorsteps

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The Reticulated system or Piped LPG for domestic use is a value addition to

customers, with a view to enhance safety, loyalty and uninterrupted supply of gas to

households. In this direction, HPCL has successfully installed reticulated supply in

Mumbai, Pune, Jaipur, Cochin, Delhi, Visakh, Hyderabad, Kolkata and Bangalore

covering more than 1600 flats.

Rural India is an emerging potential market and no business venture can afford to

ignore it. However, the specific barriers to the penetration of LPG in rural India are cost

- both one-time and recurring non-availability of LPG owing to a poor distribution

system, easy availability of alternative, cheap fuel and low level of product awareness

and its benefits. HP GAS has charted out a detailed strategy to address all these barriers

and entered rural markets with the launch of 5 Kg cylinders...

As part of its social commitment as a responsible corporate, HPCL has introduced an

innovative scheme, HP GAS Rasoi Ghar or the concept of community kitchen, for the

upliftment of the poorest of the poor by providing a common cooking platform for a

village, where users have to pay only on the basis of the time utilized for cooking. This

eliminates both the barriers of one-time high deposit as well as the recurring cost of

refills. The company is already operating nearly 1024 such Rasoi Ghars across the

country, benefiting more than 15,000 families. Moreover, stalls have been set up in

major rural melas such as Pushkar Mela, Sonpur Mela and the like to increase

awareness of the benefits of LPG.

B) INTERNATIONAL OPERATIONS:

At the initial stages, the International Division started out with handling import

facilitation for large consumer of Fuel Oils. The divisions also engaged in direct export

of lubricating oils to countries like Nepal, Bangladesh, Malaysia, Sri Lanka and Saudi

Arabia. In order to expand its operations and tab export market, the Division has started

appointing distributors for marketing to lubricating oils & specialty products.

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Presently, distributors in Nepal, Bangladesh & Sri Lanka are regularly marketing HP

Products in these countries and we are actively looking at appointing distributors in

Africa & Malaysia.

With the rapid changes that are taking place in the Indian Petroleum scenario, the

International Division is fast gaining a reputation in the markets. Apart from handling

exports of surplus refinery products for HPCL, the International Division has started

facilitation of Naphtha exports for the Oil & Natural Gas Commission (ONGC) and is

actively seeking new opportunities.

HPCL has exported bulk petroleum products such as Naphtha, Fuel Oils and

Gasoline mostly to countries in Far East.

C) BULK FUEL SPECIALITIES:

HPCL s petroleum products cover numerous applications. From automobile, aviation

marine and power plant fuels to being used in the manufacture of products such as

fertilizers, carbon black, jute, insecticides, cosmetics, edible oil, fabrics compact discs

and medicines.

We are the second largest producers of Bitumen in India with annual sales of more

than 600 Thousand Metric Tonnes (TMT). Ongoing R&D to meet the fast changing and

critical needs of costumers have resulted in several product improvements like rubber

& polymer modified bitumen and emulsions.

For over 25 years, HPCL has been providing fuelling services at all the major Indian

ports. We are the marine lube partners of Total Lubrifiants, France, manufacturing and

supplying the TOTAL brand of marine lubes.

HPCL is one of the largest suppliers of fuel to state owned and Independent Power

Plants (IPPs).We also cater to the Industries requirement of Specialities like Hexane,

Solvents, MTO etc

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D) LUBRICANTS:

The HP Engine Oils product range covers over 300 brands of lubricants, greases and

specialities catering to the automotive as well as industrial sector. With consumers

recognizing the importance of high quality lubricants in ensuring prolonged and

trouble-free operations, the demand for HP engine oils, gear oils, transmission oils,

greases and other specialities have gone up appreciably over the years.

Behind the success of HP Engine Oils lie years and years of research and technical

expertise. They are engineered to meet the rigours of modern automobiles and the

extreme service conditions of highly sophisticated industrial machines.

HPCL has six lube blending plants at Mumbai, Calcutta, Chennai and Silvassa.

Based on extensive market research, the lubes business unit has launched several

new brands, which have become highly successful in the market. A large number of

new industrial grades have also been introduced to meet specific requirements of

industrial consumers.

HPCL has also introduced a large number of Exclusive Lube Distributors who are

accessing remote corners of the Bazaar trade. To cater to small volume customers,

HPCL has recently launched CFAs

Our market now extends to countries like Nepal, Sri Lanka, Bangladesh, Saudi

Arabia and Malaysia.

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E) RETAIL;

The retail business unit of HPCL is oriented towards delivering better and faster

service to consumers. Recognizing that our consumers will be better served by offering

them a wide range of non-fuel services; the corporation has sized the opportunity

through some extensive market research banked initiatives.

Our new retail brand, Club HP seeks to redefine the way fuel is retailed in India.

Offering the promise of outstanding care for the costumer and the vehicle, Club HP will

create a large base of loyal consumers who will look for the distinct red and blue logo

whenever they need fuel for their vehicle. Club HP outlets offer one stop convenience

so that one can do many things in same window of time - pay his bills, shop for

groceries, visit the ATM, get a quick check done on their vehicle and even arrange

servicing and repairs if need arises.

Club HP outlets in major cities offer new generation fuels, blended with specially

imported multi-functional additives. Power, our branded petrol has created a niche for

itself and is already a favourite of the discerning consumers. Turbojet, the first branded

diesel to be launched in country, is proving to the equally the favourite of the personal

diesel vehicle owners in urban markets.

The business unit has also introduced a novel pre-paid smart card called HP Smart

1 to make shopping at HPCL outlets even more convenient and fun. Employing the

advanced technological innovations available today the HP Smart 1 makes cashless

payment a reality.

The HPCL-ICICI Bank Credit Card has already proven to be the preferred credit

card among vehicle owners; with nearly 9, 25,000 cards already in the market. Our

latest innovation, a Fleet Card, Drive Track has a fleet management tool has already

hit the market place.

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A national wide chain of convenience stores, tie-ups with leading fast-food and

refreshment companies to set up food counters, a special arrangement with Fed Ex to

provide world class courier service, facilitation of vehicle insurance, international

money faster counters- it is all happening at the HP retails outlets. All you need to do is

just drive in!

F) AVIATION:

HP Aviation offers into-plane fuel service at the major airports in India. Hindustan

Petroleum s Aviation Service Facilities, Intermediate Storage Installations and

Laboratories handling Jet Fuel are approved and periodically audited by the Directorate

General of Civil Aviation, Government of India (DGCA).

HP Aviations installations at Mumbai, Delhi, Chennai, Kolkata, Cochin and Calicut

are certified to the ISO 9001:2000 standards.

2. REFINERIES:

OVERVIEW:

Without refining, the rich resources of crude petroleum of nature would remain latent.

Value-added products from crude petroleum like petrol, diesel, kerosene; liquefied

petroleum gas, naphtha and many more products would not be available for growth and

development of a nation.

The two coastal refineries at Mumbai and Vishakhapatnam and one joint venture

refining facility at Mangalore Refinery & Petrochemicals Limited have been sustaining

almost 20% of India s refining requirements. HPCL refineries upgrade the crude

petroleum into many value-added products and over 300 grades of lubricants,

specialties and greases. The Lubricating Oils Refinery set up at Mumbai is largest

refinery in India.

The refinery produces superior quality lube base oils. The offsite product handling

facilities of refineries at Mumbai and Vishakhapatnam has been automated. Projects

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have been implemented and facilities upgraded to produce green fuels like unleaded

petrol and low sulphur diesel.

The refineries have been benchmarked by an international agency for various

performance parameters. Numerous awards have been bestowed on both the refineries

in recognition of the efforts in the field of energy conservation, environment and safety.

INTRODUCTION TO HP RETAILING

OVERVIEW:

At HPCL retail outlets 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 fuelling needs, but also complete

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.

And while we share your concern for your vehicle, we also value your time. So

we bring you conveniences that allow you to carry out your banking activities, make

important calls or send an e - mail, and even shop for essential grocery items. Complete

attention for you and your vehicle at one stop. The HP retail outlet. Simply drive in,

anytime, anywhere. And let us do the pampering.

VISION:

Through the process of ACE (Achieving Continuous Excellence) Retail SBU

developed a vision that was co-created by the employees of the SBU. Based on the

vision, cross functional sub-groups of Officers from marketing, finance and HR

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department closely interacted with customers in various market segments such as

Highway, Rural, 2- wheeler/3-wheeler and Car segments to develop a customer centric

dynamic business strategy. The SBU Vision is given hereunder:

o Highest performer in sales growth over industry.

o Sustained profitability through increased sales, ARB earnings, cost

optimization, branded fuels and branded lubricants.

o Customer delight at the point of interface. Fulfilling the stated and latent needs

of the customer through innovative products and services.

o Competent, committed and empowered employees.

o Sense of pride and mutual trust and camaraderie. Conducting business in a fair,

transparent and ethical manner.

PERFORMANCE PROFILE:

During the year 2003-04, several activities were initiated to realise the retail vision. The

highlights of performance are:

o Retail Business Unit recorded a growth of 4.5% in MS and 0.9% negative

growth in HSD.

o Record number of 645 new retail outlets were commissioned.

o Continuous efforts of the SBU have ensured that we now have a control of 76%

of our network. which is highest in the country.

o A new visual identity program Project Akarshan has been rolled out.

o As a part of our ongoing Focus 500 program, several retail outlets have been

modernised during the year.

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RETAIL OUTLET BRANDING

o HPCL has over 1250 Club HP outlets.

o HPCL has also introduced at its outlets several initiatives to strengthen the

brand promises.

o Over 15500 dealermen were covered through various training programs

focussing on current business imperatives and behavioural changes for

delivering the Club HP promise.

o Unique training program titled Leading with Power , At the Forefront ,

Positive Value Based Stress Free Supervision were conducted for dealermen,

forecourt managers and dealers to drive the importance of quality, quantity,

quick service, courteous behaviour and stress free management among the

dealers and dealermen who interact with retail customers.

o Inorder to motivate dealermen at Club HP outlets Group Personal Accident

Insurance Scheme has been introduced.

o Several dealermen were covered on computer education through HPCL NIIT

Jyoti Program.

o Anumber of dealermen were recognized under the Spot & Reward Scheme.

o The Scholarship Scheme for Club HP dealermen and dependent children was

extended during the year to motivate the dealermen.

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o A unique Club HP Good Citizen Award was introduced during the year to

recognise and reward the customers in auto/taxi segments for their outstanding

service to society.

o Several campaigns were conducted round the year to draw customer pull at the

retail outlets and rewarded and recognised the customer for patronising our

outlets as a part of brand building exercise.

o For our Club HP outlets mass media campaign was effectively utilised to

communicate the brand promise under the banner Club HP Achcha Lagta

Hai .

o Corporate level tie up has been made with Tata Motors for vehicle care centre.

Tie up also has been entered into with US Pizza for pizza centres at out outlets.

These tie-ups have evinced good response from the customers.

FEATURES OF CLUB HP:

High - quality personalized "Vehicle and Consumer Care"

A part of HPCL's strategic retail marketing initiative that seeks to break out of

traditional fuel retailing, our new Retail Brand "Club HP" assures high - quality

personalized "Vehicle and Consumer Care" through a select set of outlets.

Developed after an exhaustive research of over a year, which included collecting

feedback from over 13,000 respondents in several key markets across the country, the

"Club HP" concept aims to provide the assurance of Quick Fills", "Expert,

Personalised Service", "Total Vehicle Management" and "Consumer Conveniences".

While designing the bouquet of services for Club HP outlets, we have relied upon the

feedback received directly from consumers. We realize that consumers are highly

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26

conscious of the fuel that goes into their vehicles - each Club HP outlet carries the

assurance of HPCL s Good Fuel Promise and delivers the right quality and quantity

of the products on offer. Fuel is delivered to these outlets in tank trucks fitted with

tamper proof locks and a high degree of control is kept by the HPCL staff to ensure that

quality standards are strictly enforced.

The "Club HP" concept also recognizes the fact that the consumer today places

very high importance on vehicle care and at the same time expects other value added

services from a fuel retail outlet that help him take care of diverse activities under one

roof and in the shortest possible time. The Club HP outlets provide a distinct set of

basic and value added offerings which include "Efficient & Expert Service", "Quick

Care Point", "Digital Air Towers", "Vehicle Finance and Insurance related assistance",

"Bills Payment facilities", Refreshments , "HPCL - ICICI Credit Cards", "Club HP

Smart 1 Cards and a host of other amenities.

To deliver the many conveniences and services, we have associated with leading

companies like Coca Cola India, ICICI Bank, Fed Ex, Western Union Money Transfer,

Café Coffee Day, US Pizza, Skypak and many more. We are also forging service

specific alliances with several automobile companies and OEMs like Tata Motors to

jointly identify "Club HP" outlets, which could qualify as "Authorised Service Centers"

for

leading automobile brands.

The roll out of "Club HP" began in a phased manner, initially targeting 85 outlets in the

cities of Mumbai, Delhi, Bangalore and Kolkata. Encouraged by the initial experience,

the Club HP brand has been quickly expanded to cover over 1000 outlets in all major

cities and towns across India. The distinctive red and blue Club HP logo is an all too

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familiar symbol inviting motorists looking for a quick and refreshing fuelling

experience.

"Club HP" outlets are categorized as Standard, Mega and Max depending on the

levels of services and amenities available. Each outlet will offer a bouquet of

standardized services to consumers, depending upon market requirements and logistical

abilities.

o Vehicle Care - The Club HP outlets have been carefully selected to ensure that

they can offer high quality vehicle care. Each Club HP Mega and Max outlet is

equipped with a service station. In addition, the outlets will also provide vehicle

consumable and accessories, all under one roof. More and more outlets will

progressively upgrade to Authorised Service Stations as part of our

association with various vehicle manufacturers.

o Quick Care Points - Consumers are offered a free check up of vital elements

such as engine oil, brake oil, battery water, coolant, fan belt, radiator hose etc.

by the specially trained "Club HP" attendants. In addition, a quick inspection of

the tyres is done and recommendations given in case any immediate action is

required.

o Digital Air Towers The performance and safety of new generation cars

depend a lot on the correct air pressure maintained in the tyres. The specially

designed digital air pressure equipment not only ensures accurate air pressure in

the shortest time but also adds to the comfort and safety of travel.

o Good Fuel Promise Towers - Consumers are offered the facility to personally

conduct simple tests with the help of specially designed standard apparatus. A

simple procedure booklet is also provided to help anyone check the quality and

quantity of fuel. The consumers are also invited to fill in the printed certificate

booklet which will be available at all "Club HP" outlets in order to record their

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assessment. This feedback is regularly screened by the HPCL team to plan

remedial actions or service upgrades in accordance.

o Vehicle Finance and Insurance Related Counsel - HPCL has tied up with

leading vehicle insurance and finance service providers for these activities

which include assistance towards issuance and renewal of policies as well as

extension of loans for purchase of new or second hand vehicles.

o ATMs - HPCL has taken the lead in providing ATM facilities at its outlets in

association with leading banks and is targeting over 400 ATMs very soon.

Select Club HP outlets have already been equipped with ATMs.

o Bills Payments - HPCL has tied up with Skypak Financial Services which is

providing "Drop boxes" at all "Club HP" outlets in a phased manner.

Consumers can utilize these drop boxes to pay bills relating to a variety of

service providers. All one has to do is drop the bill and payment instrument

(Cheque / Demand Draft) for the designated service provider and Skypak will

route the same to the correct destination at no extra cost.

o Communication Facilities - Each Club HP outlet is equipped with a pay - phone

for the convenience of consumers. In addition, select outlets will also provide

high speed internet browsing and e - mail facility.

o HPCL - ICICI co - branded Credit Cards and the Club HP Smart1 Cards -

Customers visiting the "Club HP" outlets will be able to use the HPCL - ICICI

Credit Cards to reap the higher reward points offered by this unique product.

The "Club HP Smart 1", a smart card based loyalty program launched for the

cash paying customers, will also be available at select Club HP outlets to reward

loyal Club HP customers.

o Basic Amenities - Each "Club HP" outlet will extend basic amenities such as

"safe drinking water" through water purifiers, hygienic rest room facilities, food

counters, basic medicines and first aid facility. HPCL has also tied up with Coca

Cola India to provide beverages and bottled water as well as snacks at all "Club

HP" outlets.

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CUSTOMER LOYALTY PROGRAMS:

HPCL has over 1.2 million cards under the various card based loyalty programs.

Following are different cards offered by HPCL---

o Club HP smart1 card

o Drive track card

o HPCL credit card

o HPCL debit card

QUALITY ASSURANCE INITIATIVES:

o HPCL Quality Assurance initiative under the banner Good Fuel Promise has

been given thrust through various pioneering initiatives. HPCL has pioneered

the concept of exclusive Mobile Labs. to strengthen the commitment of Good

Fuel Promise at the retail outlets. 10 Mobile Labs have been commissioned

during the year for conducting quality assurance checks exclusively at Club

HP Outlets.

o We have also finalized the International Agency M/s. Bureau Veritas for

conducting Surveillance Audit of Club HP Outlets.

o A special scheme was introduced to cover our Retail Outlets under ISO

Accredition. 53 Retail outlets have been accredited during the year.

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o During the year 40 retail outlets in Mumbai and Vashi were covered under the

Retail Automation program. The program which was pioneered as a unique

initiative last year is based on the international practice of quality assurance

through quantity checks.

BRANDED FUEL:

o During the year HPCL s Branded Fuel Power has been added to cover over

700 outlets in over 200 markets.

o Turbojet is available in over 450 outlets in over 125 markets.

NON-FUEL BUSINESS:

HPCL has built a profitable Non-Fuel Business with wide range of facilities to

the customers. The non-fuel activities at the retail outlets include ATM; take away food

counter, C Store, vehicle accessories etc. This business is managed through tie-ups

such as Cafe Coffee Day, Diary Den, Western Union, leading banks, US Pizza and Tata

Motors.

GOOD FUEL PROMISE:

A quality product is one that complies with prescribed specifications and is free from

any contamination or adulteration. To ensure that our consumers get contamination free

products, personnel at our outlets check the products regularly.

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In addition, our sales officers carry out regular checks at all the outlets to prevent any

malpractices. The kerosene supplied by HPCL under the public distribution system is

doped with blue dye for on - the - spot identification. So when you get kerosene that is

blue in colour you can be assured it comes from a reliable source.

The blue colour also helps in detecting adulteration of any motor fuel with kerosene

through visual identification. Though we make sure of the quality of a product before it

is passed on to the consumer, we suggest that you carry out these simple checks when

in doubt.

Filter Paper Test (to check petrol)

o Ask your friendly HP dealer for a filter paper.

o Clean the mouth of the nozzle to remove stains.

o Put a drop of petrol on the filter paper from the nozzle.

o The drop of petrol should evaporate in about 2 minutes without leaving a stain

on the filter paper.

o If you notice a stain, then there is a possibility that the petrol is adulterated.

(Sometimes the area of the filter paper where the drop of petrol was put remains

pinkish; it is the colour of the petrol and should not be mistaken for a stain.)

o Density Check (to check petrol and diesel) To check this, you will need a 500

ml jar, hydrometer, thermometer and ASTM (American Society for Testing of

Materials) conversion charts. A hydrometer is a very simple instrument for

measuring the density of any liquid. All these are available at the HP retail

outlets and are made available in case you wish to check the products.

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o Fill about 3/4th of the jar with the product, through the nozzle of the dispensing

unit.

o Dip the thermometer and the hydrometer in the jar and record the temperature

and density as indicated.

o Convert the density recorded into density at 15 degree centigrade with the help

of the conversion chart. This converted density is then compared with the

density shown by the records maintained at the retail outlet on the basis of the

density recorded on delivery challans. (Density at 15 degree centigrade is

mentioned on each delivery challan issued by the supplying depot for every load

sent to the retail outlets.) If the difference is more than +/ - 0.0030, it requires

further testing at approved laboratory. In such case the customer should

immediately get in touch with our concerned Regional Office address of which

is given in this website.

o Checking Lubricants

Lubricants available at our retail outlets are factory sealed and packed. Even then,

while buying lubricants, check the seal of the container for signs of tampering, date of

manufacture and the name of the manufacturer. For the convenience of 2/3 wheeler

drivers, our retail outlets usually provide 2 T dispensers and also keep tamper proof 2 T

pouches.

NEW INITIATIVES:

MOBILE DISPENSER

HPCL has pioneered the concept of Mobile Retail Outlets in the country.

Mobile Retail Outlets have a dispensing unit mounted on tank truck. The tank truck

goes to interior rural markets for supply of diesel to the agricultural markets almost at

the customer s premises. This innovative concept has been welcomed by the rural

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customers because of the benefit of assured quality, quantity, pricing and availability of

the product in the remote and interior markets.

RETAIL OUTLETS IN RURAL MARKETS

HPCL has embarked upon an ambitious plan to set up low cost retail outlets in

rural markets. This would meet the HSD demand of small farmers by making the

product available close to the consumption point and ensuring quality product at a right

Price.

We have already set up a few of such retail outlets under the brand Hamara

Pump in interior rural markets.

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THEORETICAL BACKGROUND OF

MARKETING RESEARCH

MEANING OF RESEARCH:

Research in common parlance refers to a search for knowledge. One can also define

research as a scientific and systematic search for pertinent information on a specific

topic. In fact, research is an act of scientific investigation. The advanced learner s

Dictionary of Current English lays down the meaning of research as a careful

investigation or inquiry especially through search for new facts in any branch of

knowledge. Redman and Mory define research as a systematized effort to gain new

knowledge.

Research is an academic activity and as such the term should be used in a technical

sense. According to Clifford Woody research comprises defining and redefining

problems, formulating hypothesis or suggested solution; collecting, organizing and

evaluating data; making deductions and reaching conclusions; and at last carefully

testing the conclusion to determine whether they fit the formulating hypothesis. It is

the pursuit of truth with the help of study, observation, comparison and experiment. In

short, the search for knowledge through objective and systematic method finding

solution to problem is research.

OBJECTIVES OF RESEARCH:

The purpose of research is to discover answer to questions through the application of

scientific procedures. Though each research study has its own specific purpose, we may

think of research objectives as falling into a number of following groups: -

To gain familiarity with a phenomenon or archive new insights into it.

To portray accurately the characteristics of a particular individual, situation or a

group.

To determine the frequency with which something occurs or with which it is

associated with something else.

To test a hypothesis of a casual relationship between variables.

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MEANING OF RESEARCH METHODOLOGY:

Research methodology is a way to systematically solve the research problem. It may

be understood as science of studying how research is done scientifically. In it we

study various steps that are generally adopted by a researcher in studying his research

problem along with logic behind them. It is necessary for researcher to know not only

the research methods/ techniques but also the methodology. Research methodology

has many dimensions and research methods do constitutes a part of the research

methodology. Thus when we talk of research methodology we not only talk of

research methods but also consider logic behind the methods we use in context of our

research study and explain why we are using a particular method or technique and

why we are not using others so that research result is capable of being evaluated either

by the researcher himself or by others.

RESEARCH PROCESS:

Before embarking on the details of research methodology and techniques, it seems

appropriate to present a brief overview of research process. Research process consists

of a series of action or steps necessary to effectively carry out research and the desires

sequencing of these steps. The following order concerning various steps provides a

useful procedural guideline regarding the research process:

Formulating the research problem.

Defining Research objective.

Development of working hypothesis.

Preparing the research design.

Determining sample size.

Deliberate sampling.

Simple random sampling.

Systematic sampling.

Stratified sampling.

Quota sampling.

Cluster sampling and area sampling.

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Multi stage sampling.

Sequential sampling.

Collecting the data.

By observation.

Through personal interview.

Through telephone interview.

By mailing of questionnaires.

Execution of the project.

Analysis of data.

Hypothesis testing.

Generalization and interpretation.

Preparation of the re port or the thesis.

TYPES OF RESEARCH:

Descriptive research.

Analytical research.

Exploratory research

Causal research

Quantitative research.

Qualitative research.

The above-mentioned are the various type of research, which a researcher can apply

in order to achieve one s desired objective. Therefore to achieve the objectives of this

research, descriptive research type has been used.

This will be based on proper Research design to meet the objectives of the project /

study.

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RESEARCH METHODOLOGY

Methodology used for market research is presented in the following

RESEARCHPLAN

1. INFORMATION REQUIRED: -

The information required for the study was

Approximate number of vehicles running in the city.

Information of products of company

Information of competitors

Information of competitor policy

Information of marketing trend

Information of customers expectation

Customer satisfaction level

2. SOURCES OF DATA: -

A. SECONDARY SOURCES

The main secondary data sources were data recorded with the company and

with the retailers.

B. PRIMARY SOURCES

To fulfill the objectives of the study, primary data was collected by

questionnaire and direct approach. The data was used latter for analysis.

3. RESEARCH APPROACH: -

The research approach was survey. The study necessarily required the

information, which was primarily in nature. It was felt that survey was best

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option. An objective involved studying the opinion of customers or new users,

there needs preferences, behaviour towards HPCL. Survey method was found

most adequate and useful.

4. RESEARCH INSTRUMENT: -

The research instrument chosen was a structured questionnaire. Questionnaire

was tested by Mr.Bishal Kumar, who is Sales Officer of HPCL and my Project

Guide for this project, and necessary changes were made in questionnaire.

5. SAMPLING PLAN: -

A) UNIVERSE: -

The customers for the study were the vehicle owners in Nanded city

who use petrol or diesel for their vehicles.

B) SAMPLING SIZE: -

The sample consisted of 270 customers. These customers were

categorized as

Two wheeler owners : 135

Three wheeler owners : 48

Four wheeler owners : 57

Heavy vehicle owners : 30

C) SAMPLING METHOD: -

The sampling method employed for the study was basically stratified as

random sampling. Respondents were contacted at random at different retail

outlets.

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D) SAMPLE MEDIA: -

The respondents in sample were contacted through personal interview

with the help of questionnaire. Questions are mostly close ended.

6) LIMITATIONS: -

Generally most of the customers do not have time at outlets to give

feedback. Some of the customers were hesitating to give response. The

customers from rural areas were unaware of the brands and also brand owners

which acted as barrier in conducting thorough survey.

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DATA ANALYSIS

1. Customer segmentation according to TYPE OF VEHICLE

Two wheeler Three wheeler Four wheeler Heavy vehicle Total

135 48 57 30 270

Figure No.1

Type of vehicle

50%

18%

21%

11%Two wheeler

Three wheeler

Four wheeler

Heavy vehicle

Interpretation: Out of total 270 targeted customers-

50% respondents are Two wheeler owners

18% respondents are Three wheeler owners

21% respondents are Four wheeler owners

11% respondents are Heavy vehicle owners

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2. Customer segmentation according to OCCUPATION

Serviceman

Businessman

Farmers Students Unemployed

Others Total

127 81 21 27 3 11 270

Figure No.2

OCCUPATION

47%

30%

8%

10% 1%4% Serviceman

Businessman

Farmers

Students

Unemployed

Others

Interpretation: Out of 270 targeted customers-

47% respondents are Servicemen.

30% respondents are Businessmen.

8% respondents are Farmers.

10% respondents are Students.

1% respondents are Unemployed.

4% respondents are Others.

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3. TYPE OF FUEL USING

Petrol Diesel Total

150 120 270

Figure No.3

56%

44% Petrol

Diesel

Interpretation: Out of 270 targeted customers-

44% customers use Diesel as Fuel.

56% customers use Petrol as Fuel.

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4. OUTLET PREFERENCE

HPCL BPCL IOCL RIL IBP TOTAL

77 53 45 92 3 270

Figure No.4

OUTLET PREFERENCE

29%

20%17%

33%

1%HPCL

BPCL

IOCL

RIL

IBP

Interpretation: Out of total targeted customers of 270-

29% respondents prefer HPCL's retail outlet.

20% respondents prefer BPCL's retail outlet.

17% respondents prefer IOCL's retail outlet.

33% respondents prefer Rilience's retail outlet.

1% respondents prefer IBP's retail outlet.

This indicates that in terms of customer preference, Reliance is the market leader followed by Hindustan Petroleum Corporation Ltd.

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5. Factors Affecting Selection

Nearest Quality & Quantity Brand & Service All Total

71 169 18 12 270

Figure No.5

FACTORS AFFECTING SELECTION

26%

63%

7% 4%Nearest

Quality & Quantity

Brand & Service

All

Interpretation: For the total targeted customers, selection decision is affected by -

26% respondents say Nearness of retail outlet.

63% respondents say Quality & Quantity of fuel at retail outlet.

7% respondents say Brand & service of retail outlet.

4% respondents all the criteria of retail outlet.

It means majority of the consumers prefer Quality & appropriate Quantity of fuel over other factors.

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6. Fuel Refilling card users

ICICI HP card

Drive smart & drive track

Petro card Other None TOTAL

25 15 25 10 195 270

Figure No.6

FUEL REFILLING CARD USERS

9%6%

9%

4%

72%

ICICI HP card

Drive smart &drive trackPetro card

Other

None

Interpretation: Out of total targeted customers-----

9% respondents hold ICICI HP card

6% respondents hold drive smart & drive track card

9% respondents hold petro card

4% respondents hold other cards

72% respondents do not hold any card

There is still 72% scope to increase card based loyalty of consumers.

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7. Brand Awareness

Two wheelers Three wheelers Four wheelers Heavy vehicles Total Yes 50 6 22 12 90 No 85 42 35 18 180

Figure No.7

BRAND AWARENESS

50

85

6

42

22

35

1218

0102030405060708090

Yes No

Two wheelers

Threewheelers

Four wheelers

Heavy vehicles

Interpretation: Out of total 270 targeted customers, 90(i.e. 33%) customers are aware of the brands available in the market and 180(i.e. 66%) customers are not aware of any brands. The segment-wise brand awareness amongst customers is as following---

37% of the two wheeler owners are aware of brands.

12.5% of the three wheeler owners are aware of brands.

39% of the four wheeler owners are aware of brands.

40% of the heavy vehicle owners are aware of brands.

This interpretation indicates that there is still 66% scope for the BRAND Penetration & BRAND Promotion.

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8. Service Given At Outlets

Two wheelers

Three wheelers

Four wheelers

Heavy vehicles

%age

Excellent 30 28 36 18 41 Good 96 20 21 12 56 Bad 9 0 0 0 3 Total 135 48 57 30 100

Figure No.8

Service given at outlets

30 28 3618

96

20 21129

0 0 00

20406080

100120

Twowheelers

Threewheelers

Fourwheelers

Heavyvehicles

Excellent

Good

Bad

%age

41%

56%

3%

Excellent

Good

Bad

Interpretation: Out of total 270 targeted customers-----

41% respondents say service given at retail outlets is excellent.

56% respondents say service given at retail outlets is good.

3% respondents say service given at retail outlets is bad.

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9. Customer Expectations

Two wheeler Three wheeler

Four wheeler Heavy

vehicle Quality & Quantity 66 14 23 15

Quick Service 36 8 23 12 Good communication 27 20 9 3

Others 6 6 2 0 Total 135 48 57 30

Figure No.9

CUSTOMER EXPECTATIONS

66

1423

15

36

8

23

12

2720

936 6 2 0

0

10

20

3040

50

60

70

Twowheeler

Threewheeler

Fourwheeler

Heavyvehicle

Quality & Quantity

Quick Service

Goodcommunication

Others

%age

44%

29%

22%5%

Quality & Quantity

Quick Service

Goodcommunication

Others

Interpretation:

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Out of total 270 targeted customers-----

44% respondents expect good quality & appropriate quantity of fuel.

29% respondents expect quick service i.e. quick delivery of fuel at outlets.

22% respondents expect good communication by retailers.

5% respondents expect other delights at retail outlets.

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10. Awareness of value added services

Two wheelers

Three wheelers

Four wheelers

Heavy vehicles

Total

YES 30 6 3 6 45 NO 105 42 54 24 225

Total 135 48 57 30 270

Figure No.10

AWARENESS OF VALUE ADDED SERVICES

30

6 3 6

105

4254

24

020406080

100120

Twowheelers

Threewheelers

Fourwheelers

Heavyvehicles

YES

NO

Interpretation: Out of total 270 targeted customers-----

17% respondents are made available of value added services given by respective companies at the retail outlets.

83% respondents are not made available of value added services given by respective companies at the retail outlets.

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11. Rating

HPCL BPCL IOCL RIL IBP

Outstanding 68 39 55 81 0

Excellent 45 50 43 69 0

Good 55 30 25 37 0

Average 0 0 15 8 0

Bad 0 0 0 0 0

Total 168 119 138 195 0

Figure No.11

RATING

0

20

40

60

80

100

HPCL BPCL IOCL RIL IBP

COMPANY NAME

NO

. OF

R

ES

PO

ND

EN

TS

Outstanding

Excellent

Good

Average

Bad

Interpretation: Out of total 270 targeted customers-----

In the category of Outstanding companies, Reliance leads with 33% votes, followed by HPCL with 28% votes.

In the category of Excellent companies, Reliance leads with 33% votes, followed by HPCL with 21% votes.

In the category of Good companies, HPCL leads with 35% votes, followed by Reliance with 24% votes.

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LIMITATIONS OF THE PROJECT

No project is ideal. In reality the researcher always comes across different problems

which act as limitations of the project. Likewise there were lots of limitations to this

project also, such as ---

I. Biased reply of respondent.

II. Lack of awareness.

III. Transportation problems because of rainy season.

IV. Time constraint.

V. Budget constraint.

VI. Non availability of data.

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CONCLUSION

Following conclusions can be drawn from the analysis

Majority of customers are satisfied with service given at retail outlets. But when

it comes to customer delight, only Reliance is up to the customer expectation

The Customer segmentation shows that the majority of the customers in Nanded

region are Two wheeler owners followed by Four wheeler owners. And most of

them are Servicemen or Businessmen.

Only 33% customers are aware of different branded fuels available in the

market.

In terms of Outlet preference, Reliance leads the market with 33% market share

followed by HPCL with 29% market share.

Quality and appropriate quantity has the first preference in the minds of

customers when they go for filling up fuel. Also customers prefer the nearest

retail outlet.

Most of the customers in Nanded region are not aware of value added services

such as fuel refilling cards and on the retailers side also there is no as such drive

of making customers aware.

Reliance is on the top of the customers mind with outstanding performance

followed by HPCL.

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RECOMMENDATIONS

To enhance the market share in Nanded Sales area, Hindustan Petroleum

Corporation Ltd. should undertake following steps ---------

Give proper training to delivery-boy so that he can communicate with the

customers in better way.

Conduct awareness drives amongst customers about the different branded

fuels of HPCL at retail outlets.

As there is 66% scope for brand penetration, apply suitable promotion

techniques to tap the market.

Since there is 72% scope to increase card based loyalty of customers,

promote fuel refilling by card, at the same time provide more card accessing

utilities at retail outlets.

Provide pleasant ambience at the retail outlets and employ well trained

delivery-boys at outlets to serve customers even better so that customer get

delighted.

There is need for advertisements of branded fuels at local level.

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BIBLIOGRAPHY

BOOKS:

Marketing Research by Naragundkar

Marketing Research by Beri

Research Methodology IInd Edition by R. C. Kothari

Websites: www.hindustanpetroleum.com

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QUESTIONNAIRE

3600 Feedback through Customer overview

Retail Outlet Name:

1) Type of vehicle?

a) Two wheeler

b) Three wheeler

c) Four Wheeler

d) Heavy vehicle

2) Type of fuel using?

a) Petrol

b) Diesel

3) For how long you are using fuel?

a) 1 year

b) 2 years

c) More than 2 years

4) Which Retail outlet do you prefer?

a. HPCL

b. BPCL

c. IOCL

d. RELIANCE

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57

e. IBP

5) Reasons You consider while going to above outlets---

a) Nearest outlet

b) Quality/Quantity of fuel

c) Brand and service

d) All

6) Do you hold any type of fuel refilling card?

a) ICICI HP card

b) Drive smart & drive track card

c) Petro card

d) Any other card

7) Are you aware of Branded Fuels?

a) Power / Turbo Jet

b) Extra mileage

c) Speed

d) Any other

8) How you are treated at outlets.---

a) Excellent

b) Good

c) Bad

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9) What are your expectations from delivery-boy and retailer?

a) Quality & quantity of fuel

b) Quick service

c) Good communication

d) Any other

10) Is dealer making you aware of value added services provided by

respective companies at retail outlets ?

Yes NO

11) How do you rate the companies on 0 10 scale?

a. HPCL

b. BPCL

c. IOCL

d. RELIANCE

e. IBP

12)If you have any suggestions

I would suggest:

___________________

___________________

Name:

Occupation:

Sign.: We thank you for your valuable feedback & sincerely appreciate your honest opinion.

Page 59: Customer overview of retail outlets  hpcl vs. reliance

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