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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
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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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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
27
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
28
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.
29
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.
30
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.
31
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.
32
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
33
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.
34
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.
35
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.
36
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.
37
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
38
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.
39
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.
40
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
41
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.
42
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.
43
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.
44
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.
45
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.
46
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.
47
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.
48
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:
49
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.
50
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.
51
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.
52
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.
53
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.
54
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.
55
BIBLIOGRAPHY
BOOKS:
Marketing Research by Naragundkar
Marketing Research by Beri
Research Methodology IInd Edition by R. C. Kothari
Websites: www.hindustanpetroleum.com
56
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
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
58
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.
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