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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
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
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
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
OBJECTIVE AND SCOPE 1)TYPE –Exploratory and Descriptive
2)Approach - Qualitative
RECOMMENDATIONS
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
RESEARCH TYPE AND APPROACH
OBJECTIVE AND SCOPE
1) PRIMARY DATA COLLECTION - Surveys, observations .
2) SECONDARY DATA – Past Consumption Patterns of
customers.
RECOMMENDATIONS
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
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
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
OBJECTIVE AND SCOPE
RECOMMENDATIONS
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
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
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
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
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
OBJECTIVE AND SCOPE
RECOMMENDATIONS
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
OBJECTIVE AND SCOPE
Recommendations for creating awareness
RECOMMENDATIONS
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
OBJECTIVE AND SCOPE
RECOMMENDATIONS
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
OBJECTIVE AND SCOPE Hoardings and Stands at VARIOS BPCL R.O’s,
RAILWAY STATION ,I.T AREAS ,BUS STANDS
RECOMMENDATIONS
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
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
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
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
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
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
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
OBJECTIVE AND SCOPE
Competitors –OMC’s(2),Private(6-
7)
RECOMMENDATIONS
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
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
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
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
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
OBJECTIVE AND SCOPE
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)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
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
OBJECTIVE AND SCOPE
RECOMMENDATIONS
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
OBJECTIVE AND SCOPE
RECOMMENDATIONS
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
OBJECTIVE AND SCOPE
RECOMMENDATIONS
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
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
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
OBJECTIVE AND SCOPE
RECOMMENDATIONS
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
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
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
OBJECTIVE AND SCOPE
Bharat Metal Cutting 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
A few details about the
product-
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)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
COMMERCIAL LPG AND BMCG
5 KILOGRAMS MINI LPG
OBSERATIONS AND FINDINGS
DATA SOURCES ,SAMPLING ,DATA
COLLECTION
RESEARCH TYPE AND APPROACH
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 .