A STUDY ON RURAL MARKRTING OF HPCL 2014
PART – A
History of the oil industry in India
The history of the Indian oil industry extends back to the period of the British Raj, at a time when petroleum first became a primary global energy source.
The origin of the Indian oil & gas industry can be traced back to the late 19th century, when oil was first struck at Digboi in Assam in 1889. At independence, oil exploration and production activities were largely confined to the North- Eastern region, particularly Assam and the daily crude oil production averaged just 5,000 barrels per day. In the downstream sector, the first refinery was set up at Digboi in 1901. In view of the significance of the oil & gas sector for overall economic growth, the Government of India, under the Industrial Policy Resolution of 1954, announced that petroleum would be the core sector industry. In pursuance of the Industrial Policy Resolution, 1954, petroleum exploration & production activity was controlled by the government-owned National Oil Companies (NOCs), namely Oil & Natural Gas Corporation (ONGC) and Oil India Private Ltd (OIL).
With the discovery of the Cambay onshore basin (in 1958) and the Bombay offshore basin (in 1974), the domestic oil production increased considerably. As a result, in the early 70s, almost 70% of the country‟s oil requirement was met domestically. However, by the end of the 1980s, some of the existing oil & gas fields were experiencing a decline in their production since they had already been in production for several years and were past their 3 plateau phase. At the same
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time, there was a steady increase in consumption of oil & gas, leading the two NOCs to meet only about 35% of the domestic oil requirement.
After the oil shock of 1970s, the nationalisation of both the upstream & downstream sectors was initiated and was completed on October 14, 1981. This resulted into the exit of the international oil companies from the Indian oil & gas industry. Moreover, the resource crunch in the beginning of the 1990s that held up the NOCs from developing some of the then newly discovered oil & gas fields (such as Gandhar, Heera Phase-II & III, Neelam, Ravva, Panna, Mukta, Tapti, Lakwa Phase-II, Geleki and Bombay High Final Development scheme), had adversely impacted domestic oil production. Apart from this, controls were imposed by the Government on the pricing and distribution of crude oil and petroleum products in India. Factors like the administered oil prices and non- availability of appropriate technology logistics augmented the problem.
Upto 1990s, there were three rounds of exploration bidding with no success in finding new oil/gas deposits by the foreign companies who only were allowed to participate in the bidding process. This led the government to initiate Petroleum Sector Reforms (PSR) in 1990, under which the fourth, fifth, sixth, seventh and eighth rounds of exploration bidding were announced during 1991- 94. For the first time, Indian companies with or without prior experience in exploration & production activities were allowed to participate in the bidding process during these rounds. In 1995, the Government announced the Joint Venture Exploration Programme. However, this was viewed as a deterrent by major private sector oil companies. This led the government to announce New Exploration Licensing Policy (NELP) in 1997 (operationalized in 1999) as part of its Hydrocarbon Vision
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2020, a landmark 25-year planning document. Under NELP, licenses for exploration are being awarded only through a competitive bidding system and NOCs are required to compete on an equal footing with Indian and foreign companies to secure Petroleum Exploration Licenses. In addition to NELP, other efforts were made to address the need for achieving energy security.
These include:
1. Acquisition of Oil and Gas assets abroad;
2. Developing strategic storage facilities at identified locations;
3. Exploring alternate sources of Energy, including Coal Bed Methane, gas hydrates, etc.
4. Improving the recovery of oil and gas from existing fields through methods such as Enhanced Oil Recovery (EOR) and Increased Oil Recovery (IOR).
Consequent to the various initiatives taken by the government, currently the area under exploration has increased fourfold. Prior to implementation of NELP, 11% of Indian sedimentary basins area was under exploration. With the conclusion of seven rounds of NELP, the area under exploration has increased to about 50%. One of the world‟s largest gas discoveries was made by Reliance Industries Ltd in 2002, in Jamnagar (about 5 trillion cubic metres). Besides, the entry of international companies like Hardy Oil & Gas, Santo, GeoGlobal Resources Inc, Newbury, Petronas, Niko Resources and Cairn Energy into India has helped boost the growth of the industry.
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Stages of evolution in petroleum industries
Colonial rule, 1858-1947
The first oil deposits in India were discovered in 1889 near the town of [Digboi] in the state of Assam. This discovery came on the heels of industrial development. The Assam Railways and Trading Company (ARTC) had recently opened the area for trade by building a railway and later finding oil nearby. The first well was completed in 1890 and the Assam Oil Company was established in 1899 to oversee production. At its peak during the Second World War the Digboi oil fields were producing 7,000 barrels per day. At the turn of the century however as the best and most profitable uses for oil were still being debated, India was seen not as a producer but as a market, most notably for fuel oil for cooking. As the potential applications for oil shifted from domestic to industrial and military usage this was no longer the case and apart from its small domestic production India was largely ignored in terms of oil diplomacy and even written off by some as hydrocarbon barren. Despite this however British colonial rule laid down much of the country‟s infrastructure, most notably the railways.
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Independence, 1947-1991
After India won independence in 1947, the new government naturally wanted to move away from the colonial experience which was regarded as exploitative. In terms of economic policy this meant a far bigger role for the state. This resulted in a focus on domestic industrial and agricultural production and consumption, a large public sector, economic protectionism, and central economic planning.
The foreign companies continued to play a key role in the oil industry. Oil India Limited was still a joint venture involving the Indian government and the British owned Burmah Oil Company (presently, BP) whilst the Indo-Stanvac Petroleum project in West Bengal was between the Indian government and the American company SOCONY-Vacuum (presently, ExxonMobil). This changed in 1956 when the government adopted an industrial policy that placed oil as a “schedule A industry” and put its future development in the hands of the state. In October 1959 an Act of Parliament was passed which gave the state owned Oil and Natural Gas Commission (ONGC) the powers to plan, organize, and implement programmes for the development of oil resources and the sale of petroleum products and also to perform plans sent down from central government.
In order to find the expertise necessary to reach these goals foreign experts from West Germany, Romania, the US, and the Soviet Union were brought in. The Soviet experts were the most influential and they drew up detailed plans for further oil exploration which were to form part of the second five-year plan. India thus adopted the Soviet model of economic development and the state continues
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to implement five-year plans as part of its drive towards modernity. The increased focus on exploration resulted in the discovery of several new oil fields most notably the off-shore Bombay High field which remains by a long margin India‟s most productive well.
Liberalization, 1991-present
The process of economic liberalization in India began in 1991 when India defaulted on her loans and asked for a $1.8 billion bailout from the IMF. This was a trickle-down effect of the culmination of the cold war era; marked by the 1991 collapse of the Soviet Union, India‟s main trading partner. The bailout was done on the condition that the government initiates further reforms, thus paving the way for India‟s emergence as a free market economy.
For the ONGC this meant being reorganized into a public limited company (it is now called for Oil and Natural Gas Corporation) and around 2% of government held stocks were sold off. Despite this however the government still plays a pivotal role and ONGC is still responsible for 77% of oil and 81% of gas production while the Indian Oil Corporation (IOC) owns most of the refineries putting it within the top 20 oil companies in the world. The government also maintains subsidized prices. As a net importer of oil however India faces the problem of meeting the energy demands for its rapidly expanding population and economy and to this the ONGC has pursued drilling rights in Iran and Kazakhstan and has acquired shares in exploration ventures in Indonesia, Libya, Nigeria, and Sudan.
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India‟s choice of energy partners however, most notably Iran led to concerns radiating from the US. A key issue today is the proposed gas pipeline that will run from Turkmenistan to India through politically unstable Afghanistan and also through Pakistan. However despite India‟s strong economic links with Iran, India voted with the US when Iran‟s nuclear program was discussed by the International Atomic Energy Agency although there are still very real differences between the two countries when it comes to dealing with Iran.
PART - B
RURAL MARKETING
DEFINITION
Rural Marketing is defined as any marketing activity in which the one dominant participant is from a rural area. This implies that rural marketing consists of marketing of inputs (products or services) to the rural as well as marketing of outputs from the rural markets to other geographical areas.
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. It is a function which manages all the activities involved in assessing, stimulating and converting the purchasing power to effective demand for a specific product and service. This moves them to the rural areas to create satisfaction and uplift the standard of living.
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Rural areas of the country or countryside are areas that are not urbanized, though when large areas are described country towns and smaller cities will be included. They have a low population density, and typically much of the land is devoted to agriculture. Defra have a working definition, The Rural/Urban Definition, that was introduced in 2004 as a joint project between a numbers of Government Departments and was delivered by the Rural Evidence Research Centre at Birkbeck College (RERC).
Marketing strategies that worked for urban markets do not necessarily work for the rural ones.
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There are 7 differentiators identified in Why the rural market is different -
1. Intra community influences are relatively more important than inter- community ones. Word-of-mouth in close knit communities is more powerful.
2. Scarcity of media bandwidth. Rural individual's access to media channels is limited and in the case of broadband the comparable upload and download speed may be slower. Online shopping is seen as a solution by many but will be dependent on broadband speed.
3. Slow to adopt brands. Slow to give them up. Rural consumers will be slower to pick up trends or brands but will remain loyal when accepted.
4. Expenses are yearlong; income is seasonal. Many rural areas rely on seasonal tourism peaks when income will be high and to a lesser extent agricultural incomes from seasonal crops. This means there will be more disposable income at certain times with rural businesses and employees.
5. Information hungry; but entertainment starved. Isolation from entertainment centers has led to companies trying edutainment to get their message across.
6. Higher receptivity to experience advertising. Retail outlets in rural areas have many demonstration areas along with markets for tasting.
7. Commercially profitable; and socially acceptable. Brands with demonstrable local, rural, environmental and/or social credibility stand a better chance.
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Rural Marketing meant different in 3 different periods -
Part1 (before 1960) -It was a completely an unorganized market, where “baniyas and mahajans” dominated the market. Rural marketing was another word for agricultural marketing because agricultural produces like food grains and industrial like food grains and industrial like cotton, oil seeds, sugarcane etc occupied primary attention and the supply chain activities of firm supplying agricultural inputs and of artisans in the rural areas received secondary attention.
Part 2(1960 to 1990) - The greatest thing which happened in this period was green revolution which led to farming involving scientific and technological methods and many poor villages became prosperous business centers. With better irrigation facilities, soil testing, use of high yield variety seeds, fertilizers, pesticides and deployment of machines like power tillers, harvesters, threshers etc, the output increased especially wheat and paddies. Due to this marketing of agricultural inputs was also now there a new potential market. Now marketing of rural marketing meant “marketing of agricultural inputs” and “agricultural marketing”. Agencies like Khadi and Village Industries Commission, Girijan Cooperatie Societies & Fabrics, Company bloomed and government paid special attention to promote these products. Sale of handicrafts, handloom textiles, soaps ,safety matches and crackers increased on large scale in urban areas.
Part 3(after mid 1990) - Since 1990 ,India‟s industrial sector had gained strength and maturity. It‟s contribution to GNP increased substantially. There was metamorphosis of agricultural society to industrial society. With support and development programmes of central and state governments, service organizations and socially responsible business groups like Mafatlal, Tatas, Birla, Goenkas and others the rural areas progressed socially and economically.
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RESEARCH DESIGN
TITLE OF THE STUDY - To study the rural marketing strategies adopted by HINDUSTAN PETROLEUM CORPORATION LIMITED in Rural areas.
STATEMENT OF THE PROBLEM - Rural marketing is an emerging trend. Even in rural areas people use automobiles like tractors, 2 wheelers, 4 wheelers and other heavy vehicles like trucks, tempo and other goods carrier vehicles. In this context, the study explores the different aspects of rural marketing with reference to the customers‟ fuel requirement.
OBJECTIVE OF THE STUDY - In this study, the focus is on the emergence of rural markets as the most happening market on which every marketer has an eye. And so this study will be based on studying the emergence of rural market in various contexts. The following are the objectives of this research study:- 1) To study the emergence of rural markets in the context of India. 2) To study the present scenario of rural marketing in India. 3) To study the future prospects of rural markets and their scope in India. 4) To study the challenges faced by rural marketers in India.
5)To study the reasons of popularity of rural markets in India.
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6) Present a rural marketing perspective.
7) Present a profile of Indian Rural market.
SCOPE OF THE STUDY:
The study is restricted to selected districts of KARNATAKA. Further, product and brand penetration is examined. As regards marketing of consumer products in rural areas, the study analyzes products of petroleum products marketed by the HINDUSTAN PETROLEUM CORPORATION LIMITED. Some of the advantages of Rural Marketing are –
1) Large Population.
2) Market growth rates higher.
3) Rural marketing is not expensive.
4) Remoteness is no longer a problem.
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LIMITATIONS OF RURAL MARKETING - There are several roadblocks that make it difficult to progress in the rural market. Marketers encounter a number of problems like dealing with physical distribution, logistics, proper and effective deployment of sales force and effective marketing communication when they enter rural markets. The major problems are listed below - 1) Standard of living - The number of people below the poverty line is more in rural markets. Thus the market is also underdeveloped and marketing strategies have to be different from those used in urban marketing. 2) Low literacy levels - The low literacy levels in rural areas leads to a problem of communication. Print media has less utility compared to the other media of communication. 3) Low per capita income - Agriculture is the main source of income and hence spending capacity depends upon the agriculture produce. Demand may not be stable or regular. 4) Transportation and warehousing - Transportation is one of the biggest challenges in rural markets. As far as road transportation is concerned, about 50% of Indian villages are connected by roads. However, the rest of the rural markets do not even have a proper road linkage which makes physical distribution a tough task. Many villages are located in hilly terrains that make it difficult to connect them through roads. Most marketers use tractors or bullock carts in rural areas to distribute their products.
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Warehousing is another major problem in rural areas, as there is hardly any organized agency to look after the storage issue. The services rendered by central warehousing corporation and state warehousing corporations are limited only to urban and suburban areas. 5) Ineffective distribution channels - The distribution chain is not very well organized and requires a large number of intermediaries, which in turn increases the cost and creates administrative problems. Due to lack of proper infrastructure, manufacturers are reluctant to open outlets in these areas. They are mainly dependent on dealers, who are not easily available for rural areas. This is a challenge to the marketers. 6) Many languages and diversity in culture - Factors like cultural congruence, different behavior and language of the respective areas make it difficult to handle the customers. Traits among the sales force are required to match the various requirements of these specific areas. 7) Lack of communication system - Quick communication is the need of the hour for smooth conduct of business, but it continues to be a far cry in rural areas due to lack of communication facilities like telegraph and telecommunication systems etc. The literacy rate in the rural areas is rather low and consumers‟ behavior in these areas is traditional, which may be a problem for effective communication. 8) Spurious brands - Cost is an important factor that determines purchasing decision in rural areas. A lot of spurious brands or look-alikes are available, providing a low cost option to the rural customer. Many a time the rural customer may not be aware of the difference due to illiteracy.
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9) Seasonal demand - Demand may be seasonal due to dependency on agricultural income. Harvest season might see an increase in disposable income and hence more purchasing power. 10) Dispersed markets - Rural population is highly dispersed and requires a lot of marketing efforts in terms of distribution and communication.
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DATA COLLECTION -
Sample unit -
1) Working people (including men &women), basically farmers and daily wage workers.
2) College students.
3) Drivers.
4) Senior citizen.
Sample size – Total 100
1) Working people - 32%.
2) College students - 29%.
3) Drivers - 23%.
4) Senior citizens - 16%.
Sample region -
1) I have selected Karnataka as the area of study.
2) I have chosen BIDADI, DODDABALAPUR, KOLAR and TUMKUR as areas of research
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DATA COLLECTION METHOD -
1. Primary data -
It was collected with the help of a self-administered questionnaire. This questionnaire aims to gather information related to products of HINDUSTAN PETROLEUM CORPORATION LIMITED.
Questionnaire design:
As the questionnaire is self- administrated one, the survey is kept simple and user friendly. Words Used in questionnaire are readily understandable to all respondent. Also technical jargons are avoided to ensure that there is no confusion for respondents.
2. Secondary data -
It was collected with the help of books, research papers, magazines, newspapers, journals, Internet, etc.
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RESEARCH INSTRUMENTS Primary data – It was collected to meet the specific objective of the study. The primary data collection technique was questionnaire. Secondary data – It was collected from the manager of Sri Venkus & co, Mr. Ramesh, company websites and related books.
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COMPANY PROFILE
INTRODUCTION
Hindustan Petroleum Corporation Limited (HPCL) (BSE: 500104, NSE: HINDPETRO) is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has been ranked 260th in the Fortune Global 500 rankings of the world's biggest corporations (2013) and 4th among India's Companies for the year 2012. HPCL has about 20% marketing share in India among PSUs and a strong marketing infrastructure. The President of India owns 51.11% shares in HPCL.
HPCL accounts for about 20% of the market share and about 10% of the nation's refining capacity with two coastal refineries, one at Mumbai (West Coast) having a capacity of 6.5 Million Metric Tonnes Per Annum (MMTPA) and the other in Vishakapatnam (East Coast) with a capacity of 8.3 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 capacity of 9 MMTPA. In addition, HPCL, in collaboration with M/s Mittal Energy Investment Pte.Ltd. has set up a 9 MMTPA refinery at Bathinda, in the state of Punjab, as a Joint venture.
HPCL owns the country's largest Lube Refinery with a capacity of 335,000 Metric Tonnes which amounts to 40% of the national capacity of Lube Oil production. HPCL has given India a firm ground in this sector with its world class standard of Lube Base Oils. Presently HPCL produces over 300+ grades of Lubes, Specialities and Greases.
HPCL has earned "Excellent" performance for fifteen Consecutive years upto 2005-06, since signing of the first MOU with the Ministry of Petroleum & Natural
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Gas. HPCL won the prestigious MOU Award for the year 2007-08 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 2010-11 also qualifies for "Excellent" rating.
HPCL, over the years, has moved from strength to strength on all fronts. The refining thruput has increased three fold between 1984/85 to 2007/08, rising from 4.47 MMTPA in 1984/85 to 16.19 MMTPA (2011-12).
Consistent excellent performance has been made possible by highly motivated workforce of over 11,000 employees working all over India at its various refining and marketing locations. View Past Annual Reports to know more about HPCL.
HPCL continually invests in innovative technologies to enhance the effectiveness of employees and bring qualitative changes in service. Business Process Re-Engineering exercise, creation of Strategic Business Units, ERP implementation, Organizational Transformation, Balanced Score Card, Competency Mapping, benchmarking of refineries and terminals for product specifications, ISO certification of Refineries and Supply Chain Management are some of the initiatives that broke new grounds.
HPCL has successfully integrated Information Technology in its activities at different levels. The Enterprise Resource Planning (ERP) system is now operational on J.D.Edwards, an Oracle product, across the Corporation.
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HISTORY
HPCL was incorporated in 1974 after the takeover and merger of Erstwhile Esso Standard and Lube India Limited by the Esso (Acquisition of Undertakings in India) Act 1974. Caltex Oil Refining (India)Ltd.- CORIL was taken over by Govt. of India. in 1976 and merged with HPCL in 1978 by the CORIL-HPCL Amalgamation Order, 1978. Kosan Gas Company was merged with HPCL in 1979 by the Kosangas Company Acquisition Act, 1979.
In 2003, following a petition by the Centre for Public Interest Litigation (CPIL), the Supreme Court of India restrained the Central government from privatizing Hindustan Petroleum and Bharat Petroleum without the approval of Parliament. As counsel for the CPIL, Rajinder Sachar and Prashant Bhushan said that the only way to disinvest in the companies would be to repeal or amend the Acts by which they were nationalized in the 1970s. As a result, the government would need a majority in both houses to push through any privatization.
HPCL has been steadily growing over the years. The refining capacity steadily increased from 5.5 million metric tonnes in 1984/85 to 14.80 million metric tonnes (MMT) as of March 2013. On the financial front, the Net income form Sales/operations grew from IN 2687 crores in 1984-85 to IN 2,06,529 Crores in Financial year 2012-13. During FY 2012-13, its net profit was IN 904 Crores.
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OPERATIONS
HPCL operates two major refineries producing a wide variety of petroleum fuels & specialties, one in Mumbai (West Coast) of 6.5 Million Metric Tonnes Per Annum (MMTPA) capacity and the other in Vishakapatnam, (East Coast) with a capacity of 8.3 MMTPA. HPCL holds an equity stake of 16.95% in Mangalore Refinery & Petrochemicals Limited (MRPL), a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. Another Refinery of 9 MMTPA, set up in Bathinda, Punjab by HMEL, a Joint Venture with Mittal Energy Investments Pte.Ltd. HMEL has commenced commercial operations. HPCL has signed a MOU with Government of Rajasthan for setting up a Refinery near Barmer in Rajasthan. It would be operated under a JV Company called HPCL-Rajasthan Refinery Limited.
HPCL also owns and operates the largest Lube Refinery in India producing Lube Base Oils of international standards, with a capacity of 335 TMT. This Lube Refinery accounts for over 40% of India's total Lube Base Oil production. Presently HPCL produces over 300+ grades of Lubes, Specialities and Greases.
The marketing network of HPCL consists of 13 Zonal offices in major cities and 101 Regional offices facilitated by a Supply & Distribution infrastructure comprising Terminals, Aviation Service Facilities, LPG Bottling Plants, Lube filling plants, Inland Relay Depots, Retail Outlets (Petrol Pumps) and LPG & Lube Distributorships. HPCL has state of art information technology infrastructure to support its core business. The data center is located at Hitech city in Hyderabad.
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KEY EXECUTIVES
S.No Name Designation
1 S Roy Choudhury Chairman 2 S Roy Choudhury Managing Director 3 Shrikant M Bhosekar Company Secretary 4 Rohit Khanna Part Time Non-Official Director 5 SC Khuntia Non Executive Director 6 R K Singh Non Executive Director 7 Nishi Vasudeva Wholetime Director - Marketing 8 KV Rao Wholetime Director - Finance 9 G K Pillai Non Executive Independent Director 10 AC Mahajan Non Executive Independent Director 11 G Raghuram Non Executive Independent Director 12 Gitesh K Shah Non Executive Independent Director 13 Pushp Kumar Joshi Whole Time Director 14 BK Namdeo Whole Time Director
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PRODUCTS
1. Petrol : Known as Motor Spirit(MS) in Oil Industry. HPCL markets the product through its retail pumps spread all over India. Its principle consumers are regular personal vehicle owners. 2. Diesel : Known as Heavy Stock Diesel(HSD) in Oil Industry. HPCL markets the products through its retail pumps as well as terminals and depots. Its consumers are not only regular auto owners but also transport agencies, industries etc. 3. Lubricants : Riding on its brand - HPLubes, HPCL is the market leader in lubricant and associated products. It commands over 30% of market share in this sector. The popular brands of HP lubes are Laal Ghoda, Milcy, Thanda Raja, Koolgard, Racer4, etc. 4. LPG : HPGAS, The HPCL brand of LPG is a popular brand across India for domestic and industrial uses.. 5. Aviation Turbine Fuel With major ASF(Air Service Facility) present in all major airports of India. HPCL is a key player in this sector supplying ATF to major airlines. It has an accomplishment of sorts to supply fuel to US Air Force. 6. Bitumen 7. Furnace Oil
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COMPETITORS
1. RIL Industries 2. RIL Petroleum 3. Indian Oil Corp. 4. BPCL 5. Essar Oil 6. MRPL 7. IBP Co 8. Bongaigaon Refinery 9. Chennai Petrol. Corp 10. Nagarjuna Oil 11. Kochi Refineries
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REFINERIES
HPCL has a number of refineries in India. Some are listed below:
1. Mumbai Refinery - 6.5 Million Metric Tonnes (MMT) Capacity 2. Visakhapatnam Refinery - 8.3 MMT at Visakhapatnam 3. Mangalore Refinery Pvt. Ltd. - 9.69 MMT at Mangalore, Karnataka(HPCL has 16.65% Stake). 4. Guru Gobind Singh Refinery - 9 MMT at Bathinda, Punjab (HPCL & Mittal Energy each have 49% stake). 5. Barmer Refinery -9 MMT Capacity. It is a Joint Venture with Rajasthan Government.
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MILESTONES
1. HPCL‟s Vishakapatnam refinery Bagged First Prize for Energy Conservation In Petroleum Refining Sector in 2007. 2. HPCL has been awarded Silver Trophy at the EMPI-Indian Express Indian Innovation Awards Ceremony. 3. HPCL was awarded the “Trusted Brand Gold Award ” in gas station category in survey conducted by Reader‟s Digest and AC Nielsen. 4. HPCL's brand petrol „Power‟ was awarded as “Most Preferred Auto Fuel” at CNBC Awaaz Consumer Award 2007.
OTHER AWARDS
1. NDTV Profit Business Leadership Award
2. Reader‟s Digest „Trusted Brand Asia Platinum‟ Award
3. Golden Peacock Corporate Governance Award 2008
4. CIO 100 Award 2008
5. India Star Award
6. National Award For Excellence In Cost Management
7. Greentech Environment Excellence Award 2008
8. Best HR Practices in „People Management‟.
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GROWTH/ FUTURE PROSPECTS
HP Gas, its LPG business segment, has 2100 distributors reaching 21 million household.
Through its retail outlets “Club HP”, the company provides wide range of products as Auto LPG, CNG, Power, Turbo Jet and Power 93. It has tie up with Café coffee Day, Diary Den, Western Union, US Pizza and Tata Motors.
In bulk fuel and specialties segment, it offers products like bitumen, fuels, marine- bunker fuels, hexane, propylene, sulpur, kerosene oil and many more.
Through its aviation service facility PCL provides aviation turbine fuel (ATF) to major airports in the country including Delhi, Mumbai, Chennai, Kolkata, Bangalore, Calicut and Cochin.
HPCL, in association with CREDA ( Chhattisgarh State Renewable Energy Development Agency ), plans to form a subsidiary -- CREDA-HPCL Biofuels. This company will produce bio-disel from jatropha plants in Chhattisgarh state
HPCL has tied up with Renuka Sugar to form joint venture for setting up a fully integrated sugar mill with associated facilities for producing ethanol. The joint venture is based on the Brazilian concept of flexible approach where production of sugar and ethanol will depend on market conditions. Ethanol is a byproduct of sugar. The total investment on the project will be over Rs 550 crore.
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Major On-going Projects
1. New Refinery near Barmer in Rajasthan 2. Rewari Kanpur Pipeline (RKPL) 3. Diesel Hydro Treating (DHT) at Mumbai & Visakhapatnam refineries
Major facilities
1. Mumbai refinery - Fuel & Lubes
2. Vizag refinery - Fuel.
3. Mangalore - MRPL
4. Batinda - HMEL
5. Lube, Grease & Specialities - State of art plant at Silvassa. (One of the most advanced fully automated Installation in Asia)
6. Lube & Grease mfg facility - Mazagaon, Mumbai.
7. LPG storage Cavern - one of the biggest storage facility of LPG in Asia at Vizag - SALPG
8. Pipelines - MBPL, PSPL, MDPL, VVSPL.
9. Several Terminals & depots.
10. Many LPG bottling plants.
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INTERNATIONAL RANKINGS
1. HPCL is a Fortune Global 500 company as per the ranking of 2013 and was ranked at position 260.
2. HPCL was featured on the Forbes Global 2000 list for 2013 at position 1217
3. It is 10th most valuable brand in India according to an annual survey conducted by Brand Finance and The Economic Times in 2010
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CUSTOMERS Prominent customers of HPCL:
Ispat Industries Tata Motors State Transport Indian Railways Indian Army Coast Guard Mahindra & Mahindra Punjab Tractors Tyre Companies: o MRF o Ceat o JK o Bridgestone o Apollo Coal Mines: o Northern o South-Eastern o Western
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RURAL MARKETING OF HP Hindustan Petroleum Corporation Ltd (HPCL), one of the leading petroleum products retailers in the country, will invest around Rs 1,140 crore to finance 3,000 retail outlets by 2012. Of these, 2,100, or 70%, will be located in rural areas.
With the new outlets, the total number of the company‟s retail outlets in the country will go up by 27% to 11,000. At present, HPCL has 8,000 retail outlets spread across the country, of which 800 are in the rural areas. HPCL sells 9 million tonnes of fuel through its outlets.
The company has set a target of opening 500 outlets every year over the next five years. “We are planning to concentrate on rural outlets as rural areas offer good return on investments,” HPCL chairman and managing director MB Lal said. HPCL already operates low-cost retail outlets, also known as “Hamara Pumps”, in rural areas.
The company‟s focus on rural areas is aimed at cornering the growing market for diesel.
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Through tie-ups with other firms, it will utilise these rural outlets to provide agricultural services to the local population. Industry analysts say the intention behind partnering with non-petroleum retail companies is to attract vehicle owners.
The minimum service obligation (MSO) requires oil marketing companies to set up at least 11% of their retail outlets in rural areas.
“Apart from concentrating on rural areas and highways, we will slow down a bit on expansion in other areas. Consolidating on the existing outlets will be another focus area”.
HPCL, which has a tie-up with Godrej Aadhaar, the agricultural services arm of Godrej Agrovet Ltd, plans to set up small format stores at its rural retail outlets to sell agro-products like seeds and fertilizers. It has tied up with Tractor and Farm Equipment Ltd for tractor sales and service and Hindustan Insecticides, Rashtriya Chemical Fertilisers and Maharashtra State Seeds Corporation for insecticides, fertiliser and seed sales, respectively.HPCL also has got together with Mahindra & Mahindra Financial Services for helping farmers to arrange finance for purchase of fertilizers, seeds, farm equipment and household items in addition to providing credit for fuels.Currently, these tie-ups are running on a pilot basis and the company claims that it has received a tremendous response. Analysts say the companies that have tied up with HPCL stand to gain more from the deals as the outlets will give.
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Hindustan Petroleum Fortifies LPG Business 'Jee haan' focusing on consumer satisfaction theme of the new brand campaign
Hindustan Petroleum Corporation Limited (HPCL), announced a range of personalised initiatives to consolidate and build a stronger alliance with its consumers in the LPG business. HPCL is the second largest LPG marketing company with a consumer base of more than 16 million serviced through a network of 1823 distributor across length and breath of the country. Hitherto, LPG was marketed as a commodity and there was huge waitlist for new connections. With the release of 2.3 crore new connections in the last two years, the entire waitlist has been eliminated and connections are being released across the counter.
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Customer expectations are not merely limited to receiving timely refills, but now look forward to value added services. HPCL had anticipated these changes and have taken measures to standardize and benchmark all marketing activities across the country.
As part of HPCL's strategic marketing initiative that seeks to break out of traditional LPG business and establish 'HP Gas' as a distinct and unique LPG brand across the country it has endeavored to increase consumer focus, penetrate untapped rural markets - all the efforts being consolidated towards building a stronger brand image. Basis extensive research undertaken to understand the needs of the customer, HP GAS would be positioned to provide totally hassle free experience to the consumers. The distinct set of value added offerings range from services tailor made for consumer convenience - delivery of refills within 24 hours, extended delivery timings - 8 am to 8 pm all seven days a week, efficient and expert services - installation of a new connection within 24 hours and single point contact for refill booking, customer service enquiries and Emergency services - 4 digit single number 1716 across the country, for safety and convenience of our valued consumers. The single number facility will be introduced in Mumbai followed by the other cities.
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The entire communication is being launched with a specially designed pneumonic of an animated cylinder proclaiming 'Jee haan' reinforcing a strong positive service orientation. The phased roll out of 'Jee haan' initially covers 258 distributorships in the cities of Mumbai, Delhi, Kolkata, Bangalore, Hyderabad and Pune.
HPCL is one of the first Oil Companies to computerise the entire distributor network to provide value added services to consumers such as refill booking thru IVRS, internet etc. Special training module termed as "Millennium Distributor" has been rolled out and more than 1000 distributors covered for re- orientation of their mindset to meet challenges of competitive scenario. In HPCL Safety comes first. Suraksha LPG hose which has been recently launched is an example of our commitment to safety. As the Urban domestic market is fast nearing saturation, HPCL has also started focusing on rural markets, which would be the engines for future growth. It is operating 2 skid mounted filling plants exclusively for rural areas and would be shortly introducing 5 Kg cylinders. It has also played a leading role in providing LPG connections under Deepam scheme in the state of Andhra Pradesh. HPCL is equally concerned about protecting the environment. It has embarked on an ambitious plan of creating infrastructure for dispensing LPG as Auto Fuel.
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HPCL has currently set up seven Auto LPG stations in Mumbai and two in Delhi. It is in the process of setting up 30 more stations within this financial year. HPCL is also facilitating conversion of the vehicles at its outlets in Mumbai through an approved agency.
Announcing the strategic intent, Shri N K Puri, HPCL's Director- Marketing, said, "The entire concept of 'Jee haan' has been launched post analyzing the various options to build a stronger market share and greater mind recall for HP GAS. The main focus is on Customer service, Safety, Branding and Rural marketing. We are always looking to bring to our consumers the latest and the best in customer satisfaction and our latest offerings will make us uniquely positioned to bridge the gap between our consumers through cost effective and seamless initiatives."
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More News from Hindustan Petroleum Corporation Limited 26/04/2005 HPCL signs up with Zaheer Khan Hindustan Petroleum Corporation Limited, the 2nd largest Oil PSU with a Fortune 500 rating and Navratna status to its credit has signed up with Zaheer Khan, the Indian Cricket team's leading Fast Bowler for ensdorsing.
24/07/2003 Hindustan Petroleum LPG Business Unveils Consumer Initiatives Hindustan Petroleum Corporation Limited (HPCL) today announced a range of new exciting, value added services designed to create a purposeful relationship with its consumers. HP Gas launches, HP Home Perk programme.
18/07/2003 Hindustan Petroleum Introduces 5 kilogram LPG Janta Cylinder in Chattisgarh Shri Ram Naik, Honorable Minister of Petroleum and Natural Gas, today launched the 5 kilogram LPG Janta cylinder targeting the rural masses at a function held at the HP Gas bottling plant at Raipur, Chattisgarh.
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Marketing and Distribution of Petroleum Products in India
Overview:
The public sector oil marketing companies (OMCs) which include Indian Oil Corporation Ltd. (IOCL), Bharat Petroleum Corporation Ltd. (BPCL) and Hindustan Petroleum Corporation Ltd. (HPCL) are primarily responsible for the marketing and distribution of petroleum products in India. With the opening of retail sector for the private players, Reliance Industries Ltd. (RIL), Shell and Essar have also entered the retail marketing related to petroleum products. The marketing and distribution infrastructure in the petroleum sector include - petrol/diesel stations, liquefied petroleum gas (LPG) distributorships, lubricants and greases outlets and the large volume consumer pumps are backed by bulk storage terminals and installations, inland depots, aviation fuel stations, LPG bottling plants and lube blending plants amongst others. IOCL is the market leader in terms of marketing and distribution of petroleum products.
ROs in India:
The number of retail outlets (ROs) in India has increased from 31,650 in April 2006 to 40,819 in January 2011. IOCL has the widest network of ROs across India with 19,057 ROs as in January 2011. The number of IOCL ROs have increased almost 2.5 times since April 2002. The number of ROs of HPCL and BPCL have almost doubled since 2002. The increase in the the number of ROs in India from 2005-06 to 2010-11 and the petroleum products' retail market share is as follows:
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SKO dealers in India:
There has been a very marginal increase in the number of superior kerosene oil (SKO) dealers in India since April 2004. The number of SKO dealers in India as in April 2010 is 6615 as against 6547 in April 2004. However the number SKO dealership has gone down since April 2008 from 6624 to 6615 in April 2010. IOCL is the market leader with respect to number of SKO dealers in India. IOCL has an extensive network of 3,963 dealers out of the total 6,613 dealers in India. IOCL commands almost 60 percent market share. The trend of SKO dealers' growth in India and the market share of SKO dealership in India is as follows:
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Conclusion:
As reflected above, the number of retail outlets (ROs) in India has increased from 31,650 in April 2006 to 40,819 in January 2011. The number of LPG distributors in India has increased to 9,686 as in 2010 from 6,477 in 2001. There has been a very marginal increase in the number of superior kerosene oil (SKO) dealers in India since April 2004. IOCL is the market leader in terms of marketing and distribution of petroleum products with 47 percent share in retail business, 53 percent share in the LPG distributorship and 60 percent share in SKO dealership.
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HPCL to get aggressive on refining, retailing - Renewable energy part of Vision 2030
Hindustan Petroleum Corp Ltd (HPCL) has launched Vision 2030, a new set of objectives to be achieved over the next 15 years. While this will include aggressive numbers for refining capacity, retail outlets and pipelines, there will also be an added focus on renewable energy options keeping in mind environment regulations in the future. Vision 2030 is the brainchild of S Roy Choudhury, Chairman and Managing Director, who retires at the end of this month. The idea is to ensure that HPCL stays ahead of the curve in a competitive environment, where private players such as Reliance Industries, Essar and Shell will also be part of the fuel retail arena.
It is perhaps keeping this in mind that the company has roped in international consultant McKinsey to study and recommend better integration of its operations right from refining to marketing. At present, these are largely silo functions, but going forward, greater synergies will become imperative for front and back-end operations. The savings on costs are expected to be “quite substantial” as a result. Choudhury, who took charge in August 2010, is upbeat about the Barmer refinery in Rajasthan, which is scheduled for commissioning over the next three years. “It‟s going to be a critical project for the north and will enhance HPCL‟s presence in the region,” he said. The Rajasthan refinery will kick off with a capacity of 9 million tonnes (mt), but this can be comfortably doubled to 18 mt.
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The other critical pillar for the north is the 9-mt Bhatinda refinery, a joint venture between HPCL and the Lakshmi Mittal group. Its capacity, likewise, can be enhanced to 18 mt with the added prospects of supplying products to Pakistan. All it takes is building a pipeline from Bhatinda to Lahore for supply of petrol and diesel, says Choudhury. In reality, though, this will need a formal trade pact to be formalised between India and Pakistan. In the meantime, the Bhatinda and Barmer refineries will cater to demand for products in Punjab, Rajasthan, Delhi, Uttar Pradesh and Bihar.
From Choudhury‟s point of view, the Barmer refinery is as relevant since it will have an integrated facility for petrochemicals. “It is definitely an interesting business stream for the future,” he says. HPCL will also increase the capacity of its Vizag refinery to 15 mt and this will be its single largest facility by 2017. Along with Mumbai, Bhatinda and Barmer, the company hopes to have 40 mt in place by that time. The next phase of expansion will see Bhatinda and Barmer double capacities, while work on a new west coast refinery could also kick off. All this is part of Vision 2030, where HPCL is expected to have 70 mt of refining capacity in its kitty.
Choudhury is pleased that his tenure saw the company strengthen its infrastructure base, comprising pipelines, terminals and retail outlets. The recent tie-up with the Shapoorji Pallonji group for an LNG terminal in Gujarat is expected to kick-start the process of a larger road map for gas distribution across the country. On March 1, Nishi Vasudeva takes over from Choudhury and will become the first woman to be at the helm of affairs in a public sector oil company.
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DATA INTERPRETATION
1. TABLE SHOWING NUMBER OF RESPONDENTS SURVEYED
NO OF RESPONDENTS 100 MALE 73 FEMALE 27 MALE PERCENTAGE 73% FEMALE 27% PERCENTAGE
INTERPRETATION –
This graph clearly shows that number of male respondents (73%) is more than women (27%) respondents.
INFERENCE
This indicates that female respondents are less as compared to men.
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GRAPH SHOWING THE NUMBER OF RESPONDENTS SURVEYED
FEMALE 27%
MALE 73%
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2. TABLE SHOWING THE AGE GROUP OF RESPONDENTS
AGE GROUP NO OF PERCENTAGE RESPONDENTS 15-25 11 11% 25-35 13 13% 35-45 19 19% 45+ 57 57% TOTAL 100 100%
INTERPRETATION
The graph shows that the respondents are maximum (57%)in the 45+ age group followed by 35-45 age group (19%). 13% are of 25-35 age group while only 11% of them were of 15-25 age group.
INFERENCE
There are more number of respondents from age group of 45+ as compared to other age groups.
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GRAPH SHOWING THE AGE GROUP OF RESPONDENTS
60
50
40
30
20
10
0 15-25 25-35 35-45 45+
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3. TABLE SHOWING THE OCCUPATIONS OF RESPONDENTS
OCCUPATION NO OF PERCENTAGE RESPONDENTS DAILY WAGE 30 30% WORKER COLLEGE 9 9% STUDENT DRIVER 34 34% OTHERS 27 27% TOTAL 100 100%
INTERPRETATION
Out of 100 respondents 30% of them are daily wage workers while 34% are drivers. Only 9% of them were students while rest others (27%) were doing other occupations.
INFERENCE
Most of the respondents are either drivers or daily wage workers. Only a few were students and others did various other occupations.
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GRAPH SHOWING THE OCCUPATIONS OF RESPONDENTS
OTHERS DAILY WAGE 27% WORKER 30%
COLLEGE STUDENT 9% DRIVER 34%
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4. TABLE SHOWING FAMILY INCOME OF RESPONDENTS
INCOME NO OF RESPONDENTS LESS THAN RS 10,000 22 RS 10,000 – RS 15,000 29 RS 15,000 – RS 20,000 35 RS 20,000 + 14 TOTAL 100
INTERPRETATION – Most of the respondents (35%) are from the income group of RS 15,000 – RS 20,000 in rural areas, followed by 10-15,000 income group (29%). There were 22% from income group of <10,000 and least from 20,000+ income group (14%).
INFERENCE Respondents with income ranging from 15 to 20 thousand were highest followed by others.
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GRAPH SHOWING FAMILY INCOME OF RESPONDENTS
35 29
22
14
LESS THAN RS RS 10,000 - RS RS 15,000 - RS RS 20,000+ 10,000 15,000 20,000
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5. TABLE SHOWING THE BRAND OF PETROL & DIESEL USAGE OF RESPONDENTS
BRAND NO. OF PEOPLE PERCENTAGE HP 29 29% IOL 31 31% SHELL 17 17% OTHERS 23 23% TOTAL 100 100%
INTERPRETATION 29% of respondents use HP products while 31% of respondents IOL products. 17% of respondents are customers of shell and rest others (23%) use other brands of petrol & diesel products.
INFERENCE Most of the respondents use IOL products followed by HP product users. While only a few use SHELL products and other brand of fuels.
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GRAPH SHOWING THE BRAND OF PETROL & DIESEL USAGE OF RESPONDENTS
OTHERS HP 23% 29%
SHELL 17% IOL 31%
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6. TABLE SHOWING NUMBER OF HP CUSTOMERS WITH REFERENCE TO THE SURVEY
OPINION NO OF PERCENTAGE CUSTOMERS YES 29 29% NO 71 71% TOTAL 100 100%
INTERPRETATION
Out of the surveyed people 29% of the respondents are customers of HP while others (71%) are not.
INFERENCE
Out of surveyed respondents most of them are not the customers of HP while only a few are.
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GRAPH SHOWING NUMBER HP CUSTOMERS WITH REFERENCE TO THE SURVEY
YES 29%
NO 71%
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7. TABLE SHOWING THE SATISFACTION LEVEL OF HP CUSTOMERS
OPINION NO OF PERCENTAGE CUSTOMERS VERY GOOD 2 7% GOOD 12 41% AVERAGE 15 52% NOT SATISFIED 0 0 TOTAL 29 100%
INTERPRETATION
7% of the surveyed customers of HP are very much satisfied with the level of service provided by HP, while 41% feel their service is good and rest (52%) feel the service being provided is average. None of the HP customers felt that the service being provided is poor.
INFERENCE
Out of surveyed respondents on satisfaction level of HP products majority of them rated HP as an average company. While other felt that their products are good and only a handful of customers were fully satisfied with the HP products.
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GRAPH SHOWING THE SATISFACTION LEVEL OF HP CUSTOMERS
VERY GOOD GOOD AVERAGE NOTSATISFIED
0%
7%
52% 41%
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8. TABLE SHOWING THE KIND OF VEHICLES RESPONDENTS USE
VEHICLE NO OF PERCENTAGE RESPONDENTS 2 WHEELER 46 46% 4WHEELER 7 7% LARGE VEHICLES 28 28% OTHERS 19 19% TOTAL 100 100%
INTERPRETATION
The graph clearly suggests that majority (46%) of the respondents use 2 wheelers followed by large vehicle users (28%). Only 4% of respondents use 4 wheelers while the remaining (19%) use other types of vehicles.
INFERENCE
Most of the respondents ride on a 2 wheeler while next majority respondents are large vehicles drivers. A few drive/ride other type of vehicles and only a handful of them own a car.
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GRAPH SHOWING THE TYPE OF VEHICLE THE RESPONDENTS USE
OTHERS 19% 2 WHEELER 46% LARGE VEHICLES 28%
4 WHEELER 7%
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9. TABLE SHOWING THE AVERAGE DISTANCE TRAVELLED BY RESPONDENTS
DISTANCE NO OF PERCENTAGE RESPONDENTS 100-200 KMS 3 3% 200-300 KMS 11 11% 300-400 KMS 25 25% 400+ KMS 61 61% TOTAL 100 100%
INTERPRETATION
Out of 100 respondents 61% of them drive their vehicle over 400 kms and 25% of them drive between 300-400 kms. 11% use their vehicles to travel between 200-300 kms while only 3% use their vehicle to travel the distance of 100-200 kms. All the distance travelled is calculated on monthly basis.
INFERENCE
A majority of the respondents drive their vehicle for over 400 kms. While some of them drive between 300-400 kms. Only a few use their vehicle to travel less than 300 kms.
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GRAPH SHOWING THE AVERAGE USAGE OF VEHICLES OF RESPONDENTS
100-200 KMS 200-300 KMS 300-400 KMS 400+ KMS
3% 11%
25% 61%
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10. TABLE SHOWING THE TIMELY VISITING OF RESPONDENTS TO PETROL BUNKS
TIMELY VISITING NO OF PERCENTAGE RESPONDENTS DAILY 8 8% WEEKLY 77 77% ½ MONTHLY 15 15% TOTAL 100 100%
INTERPRETATION
Out of surveyed respondents 8% of them visited the petrol bunks daily while 77% of them visited on weekly basis. The rest (15%) visited once in 15 days to petrol bunks.
INFERENCE
Most of the respondents visit the petrol bunks on weekly basis. While a few visit ½monthly and daily basis.
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GRAPH SHOWING THE TIMELY VISITING OF RESPONDENTS TO PETROL BUNKS
90 80 70 60 50 40 30 20 10 0 DAILY WEEKLY 1/2 MONTHLY
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11. TABLE SHOWING THE OPINION OF RESPONDENTS ON AVAILIBILITY OF HP PRODUCTS
EASY AVAILABLE NO OF PERCENTAGE RESPONDENTS YES 66 66% NO 34 34% TOTAL 100 100%
INTERPRETATION
66% of respondents feel that HP products are easily available to them while 34 % gave the opposite response.
INFERENCE
Most of the respondents feel that HP products are easily available to them while a few doesn‟t feel the same.
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GRAPH SHOWING THE OPINION OF RESPONDENTS ON AVAILIBILITY OF HP PRODUCTS
NO 34%
YES 66%
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12. TABLE SHOWING THE SATISFACTION LEVEL OF HP CUSTOMERS ON QUALITY OF SERVICE PROVIDED BY THE STAFF
OPINION NO OF PERCENTAGE RESPONDENTS YES 23 79% NO 6 21% TOTAL 29 100%
INERPRETATION
79% of HP customers were satisfied with quality of service provided by the staff at petrol bunks, while 21% were unsatisfied with the service provided by the staff.
INFERENCE
Majority of the respondents are satisfied with the service provided by the staff while others are not.
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GRAPH SHOWING THE SATISFACTION LEVEL OF HP CUSTOMERS ON QUALITY OF SERVICE PROVIDED BY STAFF
NO 21%
YES 79%
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SUMMARY OF FINDINGS AND CONCLUSIONS
1. The numbers of female respondents are less as compared to men.
2. There are more number of respondents from age group of 45+ as compared to other age groups.
3. Most of the respondents are either drivers or daily wage workers. Only a few were students and others did various other occupations.
4. Most of the respondents earned between 15,000-20,000 RS per month followed by others.
5. Most of the respondents use IOL products followed by HP product users. While only a few use SHELL products and other brand of fuels.
6. Out of surveyed respondents most of them are not the customers of HP while only a few are.
7. Out of surveyed respondents on satisfaction level of HP products majority of them rated HP as an average company. While other felt that their products are good and only a handful of customers were fully satisfied with the HP products.
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8. Most of the respondents ride on a 2 wheeler while next majority respondents are large vehicles drivers. A few drive/ride other type of vehicles and only a handful of them own a car.
9. A majority of the respondents drive their vehicle for over 400 kms. While some of them drive between 300-400 kms. Only a few use their vehicle to travel less than 300 kms.
10. Most of the respondents visit the petrol bunks on weekly basis. While a few visit ½monthly and daily basis.
11. Most of the respondents feel that HP products are easily available to them while a few doesn‟t feel the same.
12. Majority of the respondents are satisfied with the service provided by the staff while others are not.
CONCLUSION Outcome of the study has lot of positive feedback from the respondents. However the company needs to open some more outlets and has to concentrate on youths. The rural marketing has enormous scope.
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RECOMMENDATIONS AND SUGGESTIONS
1. Try to concentrate on retaining female customers and concentrate on male customers too.
2. Try to attract more young customers.
3. Try to improve the quality of products.
4. Open more and more HP outlets in rural areas.
5. Train the staff to improve their quality of service and approach towards the customers.
6. Create awareness about the petroleum products in rural areas.
7. Try to remind the regular customers when their visit is due weekly or bimonthly to refill.
8. As majority of the customers are driving two wheelers. Formulate strategy to attract them.
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A PUBLIC OPINION ON SERVICES PROVIDED BY HINDUSTAN PETROLEUM CORPORATION LIMITED IN RURAL AREAS
QUESTIONNAIRE
Respected sir/Madam,
I am AJIT.D.SAWANT studying in S.R.N Adarsh College. As a part of study, I am conducting a survey on “services provided by Hindustan Petroleum Corporation Limited in Rural areas” in partial fulfillment of the requirement for the award of Bachelor of Business Management course to the Bangalore University. It would be grateful if you answer the following questions.
1. NAME - ______
2. GENDER - a) Male b) Female
3. AGE –
a) 15-25 b) 25-35 c) 35-45 d) 45+
4. OCCUPATION –
a) Daily wage worker b) College student
c) Driver d) Others
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5. What is your family income?
a) Less than Rs 10,000 b) Rs 10,000 - Rs 15,000
c) Rs 15,000 - Rs 20,000 d) Rs 20,000+
6. Which brand of petrol or diesel do you prefer?
a) HP b) Indian Oil
c) Shell d) Others
7. Are you a customer of HP?
a) Yes b) No
8. If yes, from how long are you using HP products?
a) 1-5 years b) 5-10 years
c) 10-15 years d) 15+
9. Are you satisfied with HP products or services?
a) Very Good b) Good
c) Average d) Not Satisfied
10. What kind of vehicle are you using?
a) 2 wheeler b) 4 wheeler
c) Large vehicles d) others
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11. What is the average usage of your vehicle in a month?
a) 100-200 kms b) 200-300 kms
c) 300-400 kms d) 400+ kms
12. How often do you visit petrol bunks?
a)Daily b)Weekly c)1/2 monthly
13. How long do you need to travel to fill HP petrol/diesel?
Specify ______
14. Is HP products easily available to you?
a) Yes b) No
15. Are you satisfied with the quality of services provided by the staff?
a) Yes b) No
16. Do you suggest any improvement for HP in the following areas?
a) To improve service ______
b) To open new outlets ______
c) To increase working hrs ______
d) TO train the staff ______
THANK YOU
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BIBLIOGRAPHY
1. Primary Research – I had visited Sri Venkus & Co the Chamrajpet outlet of Hindustan Petroleum Corporation Limited where the branch manager Mr. G Ramesh gave their valuable time and provide me with some very vital information.
2. Secondary Research - WEBSITES - www.hindustanpetroleum.com
www.petroleum.nic.in
www.google.co.in
www.infraline.com
http://www.ruralmarketing.org/
BOOKS -
MARKETING MANAGEMENT, 2nd SEM BBM.
MARKETING OF INDUSTRIAL GOODS, 6tSEMBBM.
BUSINESS RESEARCH METHODS, 5th SEM BBM.
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