a study on brand awareness on premium …icmrr.org/global/pdffiles/ijmrr/m201608009.pdf · each sbu...

A STUDY ON BRAND AWARENESS ON PREMIUM BRANDED FULES

AT BHARAT PETROLEUM CORPORATION LTD IN CUMBUM

TOWN, THENI DISTRICT TAMILNADU

M.MOHAMED ISHAQ 1 Dr.A.SULTHAN MOHIDEEN

2 M.MOHAMED ILYAS

3

1 Assistant Professor of Commerce, Hajee Karutha Rowther Howdia College, Autonomous and A

grade by NAAC, Uthamapalayam- 625 533. Theni District. Tamilnadu. India.

2 Assistant Professor of Commerce, Hajee Karutha Rowther Howdia College, Autonomous and A

grade by NAAC, Uthamapalayam- 625 533. Theni District. Tamilnadu. India

3 Research Scholar, Hajee Karutha Rowther Howdia College, Autonomous and A grade by NAAC,

Uthamapalayam- 625 533.

ABSTRACT

The petroleum industry can be divided into two broad producers (exploration, development

and production of crude oil "downstream" transporters (tanker, Pipeline transport, refiners, retailers,

and consumers), Oil companies are generally categorized as "Super majors" (BP, Chevron, Exxon

Mobil, ConocoPhillips, Shell and Total S.A.), "majors," and "Independent‖ or ―jobbers‖. Most

upstream work in the oil field or on an oil well is contracted out to drilling contractors and oil field

service companies. Some Petroleum industry operations have been responsible for water pollution,

through by products of refining, and oil spills. The combustion of fossil fuels also produces

greenhouse gases and other air pollutants, such as nitrogen oxides, sulfur dioxide, volatile organic

compounds and heavy metals. As petroleum is a non-renewable natural resource the industry is faced

with an inevitable eventual depletion of the world's oil supply. The BP Statistical Review of World

Energy predicted the reserve/production ratio for proven resources worldwide. The study placed the

prospective life span of reserves in the Middle East at 79.5 years, Latin America at 41.2 years and

North America at only 12 years. The global reserve/production ratio estimates that at current

production levels, the world's oil reserves will be depleted in 40.5 years. The Hubert peak theory, also

known as peak oil, is an influential theory concerning the long-term rate of conventional oil

production and depletion. The oil and gas history in India dates back to 1867, with the discovery of oil

deposits in Makum, near Margherita, Assam. The oil and gas sector in India has since witnessed the

birth of numerous oil and gas companies. In India, the oil and gas industry jobs attract huge labor

force. With the inset of bigger players into the oil & gas sector in India engaging in mass oil & gas

production, the oil & gas prices have been revised although still in the unaffordable segment for

many.

Keywords: Petrol, Corporation, Brands, Premium, Gas

INTRODUCTION

A gauge of marketing effectiveness measured by the ability of a customer to recognize and/or

recall a name, image or other mark associated with a particular brand. Brand awareness is an

important way of promoting commodity-related products. This is because for these products, there are

very few factors that differentiate one product from its competitors. Therefore, the product that

maintains the highest brand awareness compared to its competitors will usually get the most sales.

Good branding is the product of a clear vision, and nobody knows more about vision than small

INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEWISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :1.590VOLUME 4, ISSUE 8, AUGUST 2016

www.icmrr.org 100 [email protected]

business owners. But, with limited resources, creating a brand identity can be tricky. Fortunately,

building brand awareness on the Internet doesn't need to take a lot of money or resources.

Research Problem

The study is aimed to know the Brand Awareness of premium petroleum fuels in Cumbum

Town.

Research Objectives

To find the Awareness level of the customers on branded fuels.

To find the preferences of the customers of different type of fuels.

To find which factors plays to create awareness among customers.

To identify which segment of vehicle owners largely using branded fuels.

Review of Literature

Naik, Prasad., Prasad, Ashutosh, Sethi, Suresh. Companies spend hundreds of millions of

dollars annually on advertising to build and maintain awareness for their brands in competitive

markets. However, awareness formation models in the marketing literature ignore the role of

competition. Consequently, we lack both the empirical knowledge and normative understanding of

building brand awareness in dynamic oligopoly markets. To address this gap, we propose an N-branch

awareness formation model, design an extended Kalman filter to estimate the proposed model using

market data for five car brands over time, and derive the optimal closed-loop Nash equilibrium

strategies for every brand.

The empirical results furnish strong support for the proposed model in terms of both

goodness-of-fit in the estimation sample and cross-validation in the out-of-sample data. In addition,

the estimation method offers managers a systematic way to estimate ad effectiveness and forecast

awareness levels for their particular brands as well as competitors' brands. Finally, the normative

analysis reveals an inverse allocation principle that suggests--contrary to the proportional-to-sales or

competitive parity heuristics-that large (small) brands should invest in advertising proportionally less

(more) than small (large) brands.

Jeyavelu, s. the new structure' was focused on the business processes and the customer

(Appendix B). The new structure at the top management level is the same. Five SBUs - Retail, Lubes,

Industry/Commercial, LPG and Aviation are customer centered SBUs and come under the director

(marketing). The sixth SBU, Refinery along with two new departments IT & Supply Chain and R&D

are under the director (refineries). Each SBU would have its own HR, IS, finance, logistics, sales,

engineering, etc. The number of layers in the organization was reduced to four from six or seven.

Research Methodology

Research Design

Research design is a planning action, which specifies the methods and procedure for

collecting and analyzing the data to understanding the study. The design applied this research is

descriptive research design.

Nature of Data

Researcher collected data directly from the vehicle owners. Primary data were collected from

vehicle owners. Secondary data were collected from websites and books.



Universe

The total universe of the study consists of vehicle owners in Cumbum Town.

Method of Data Collection

To collect the data, Questionnaire has been prepared. The survey research was done in the

form of personal interviews with the help of questionnaire.

Sample size

A sample size refers to the numbers of items selected from the universe to constitute a

sample. Sample size for the study is 100.

Sampling Method

The sampling method used in this project is convenient sampling because the sample was

selected from the universe based on the convenience of the respondents.

INDUSTRY PROFILE

Gasoline or petrol is a petroleum-derived liquid mixture consisting mostly of aliphatic

hydrocarbons, enhanced with ISO-octane or the aromatic hydrocarbons toluene and benzene to

increase its octane rating, and is primarily used as fuel in internal combustion engines. Most

Commonwealth countries or former Commonwealth countries, with the exception of Canada, use the

term "petrol" (abbreviated from petroleum spirit).

The term "gasoline" is commonly used in North America where it is often shortened in

colloquial usage to "gas". This should be distinguished in usage from genuinely gaseous fuels used in

internal combustion engines such as liquefied petroleuil1 gas (which is stored pressurized as a liquid

but is allowed to return naturally to a gaseous state before combustion). The term mogas, short for

motor gasoline, distinguishes automobile fuel from aviation gasoline, or avgas. The word "gasoline"

can also be used in British English to refer to a different petroleum derivative historically used in

lamps, but this use is now uncommon. The India Petroleum Industry is a case in point for exhibiting

the giant leaps India has taken after its independence towards its march to attain a self-reliant

economy.

During the Independence era of 1947, the India Petroleum Industry was controlled by foreign

companies and India's own expertise in this sector was limited. Now, after 60 years, the India

Petroleum Industry has become an important public sector undertaking with numerous ski11ed

personnel and updated technology that is comparable to the best in the world. The vim and the

achievement during these years is the growth of productivity in petroleum and petroleum-based

products. Even the consumption has multiplied itself nearly 30 times in the post-independence era.

An important advancement in the petroleum industry came with the Industrial Policy

Resolution, 1956 which signified the promotion of growth of industries. The ONGC originally set up

as a Directorate in 1955, was transformed into a Commission in 1956. In 1958, the Indian Refineries

Ltd., a government undertaking, came into existence. The Indian Oil Company (IOC), also a

government undertaking, was set up in 1959 with the purpose of marketing petroleum related

products. Indian Oil Corporation Ltd. was formed in 1964 with the merger of the Indian Refineries

Ltd. and the Indian Oil Company Ltd. Presently, 17 refineries operate under the India Petroleum

Industry.

Early history

Historical references trace oil use in ancient Egypt, Mesopotamia, and Persia through various

reports and sacred documents. Oil in general has been used since early human history to keep fires



ablaze, and also for warfare. Its importance in the world economy evolved slowly, with Wood and

coal used for heating and cooking, and whale oil used for lighting well into the 19th Century.

An early petroleum industry was established in the 8th century, when the streets of Baghdad

were paved with tar, derived from petroleum through distillation. In the 9th century, oil fields were

exploited in the area around modern Baku, Azerbaijan, to produce naphtha. These fields were

described by al-Masudi in the 10th century, and by Marco Polo in the 13th century, who described the

output of those oil wells as hundreds of shiploads. Petroleum was distilled by al-Razi in the 9th

century, producing chemicals such as kerosene in the alembic, which he used to invent kerosene

lamps for use in the oil lamp industry.

Modern History

The first modern oil refineries were set up by Ignacy Lukasiewicz near Jaslo Poland in the

years 1854-56. They were initially small as there was limited demand for refined fuel. They produced

oil for artificial asphalt, machine oil and lubricants addition to Lukasiewicz's kerosene lamp. As

kerosene lamps gained popularity" refining industry grew in the area. The first large oil refinery

opened at Ploiesti, Romania in 1856.

The first oil drilling in the United States began in l859, when oil was successful drilled in

Titusville, Pennsylvania. By the 1920s, oil fields had been established in man' countries including

Poland, the Ukraine, Sweden, the United States, and Venezuela.

Infrastructure

Oil reserves

Refer to portions of oil in place that are claimed to be recoverable under current economic

constraints. In this context, oil refers to conventional oil and excludes oil from coal, oil shale, bitumen

and extra-heavy oil (tar sands).

Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since

as the oil is extracted, the cost of recovery increases incrementally as the amount of oil remaining is

reduced. The recovery factor (RF) is the percentage of oil in place which is expected to be

economically recoverable under a given set of conditions. (It is therefore important to realize that as

the price of oil goes up on the markets, the amount of petroleum in the ground that is economically

recoverable goes up, because the oil that is more expensive to get is now recoverable at a profit. As

the price goes down, the amount that is economically recoverable goes down. So the amount of oil

you can say you have in your SEC statements i.e. "book able barrels"--depends on the price of oil on

the markets as well as the actual amount of oil in the ground. A large change in price will radically

change the amount of oil understood to be part of the reserve, regardless of whether any oil has been

lifted from the wells in question or not.)

Oil reserve estimates are ideally a measure of geological and economic risk - of the

probability of oil existing and being producible under current economic conditions using Current

technology. The international authority for reserves definitions is generally the Society of Petroleum

Engineers. The U.S. Securities and Exchange Commission demands that oil companies with exchange

listed stock adopt reserves accounting standards that are consistent with common industry practice.

However these standards are defined as oil and gas "Reasonably Probable" of being produced using

current or likely technology at current prices, with current commercial terms and government based

on historical production practices and are not always meaningful in dealing with deep-water and non-

conventional oil fields that are becoming the source of more and more of the world's oil production. In

addition, many of the world's largest oil-producing countries do not follow normal industry standards

in estimating their oil reserves and do not publish any data which would allow their estimates to be

verified.



Types of oil reserves

Proven, probable and possible reserves are the three most common categories of reserves used

in the oil industry. They are intended to represent the probability that a reserve exists based on the

geologic and engineering data and interpretation for a given location, though many governments

refuse to disclose verifying data to support their claims.

Proven Reserves

Defined as oil and gas "Reasonably Certain" to be producible using technology at current

prices, with current commercial terms and government consent, also known in the industry as I P.

Some industry specialists refer to this as P90, i.e., ideally having a 90% certainty of being produced.

Proven reserves are further subdivided into "Proven Developed" (PD) and "Proven Undeveloped"

(PUD). PD reserves are reserves that can be produced with existing wells and perforations, or from

additional reservoirs where minimal additional investment (operating expense) is required. PUD

reserves require additional capital investment (drilling new wells, installing gas compression, etc.) to

bring the oil and gas to the surface.

Probable Reserves

Defined as oil and gas ―Reasonably Probable‖ of being produced using current or likely

technology at current prices, with current commercial terms and government consent. Some Industry

specialists refer to this as P50, i.e., ideally having a 50% certainty of being produced. This is also

known in the industry as 2P or Proven plus probable.

Possible Reserves

"Having a chance of being developed under favorable circumstances". Some industry

specialists refer to this as PIO, I.e., ideally having a 10% certainty of being produced in the

foreseeable future. This is also known in the industry as 3P or Proven plus probable plus possible.

OIL AND GAS INDIA

The India oil & gas demand ranks it sixth in the world. Nearly 70% of the petroleum oil

requirements of India are met by the imports. This is a matter of concern for the Indian Government

as it might lead to oil crisis in India. To tackle this, large-scale oil and gas exploration and drilling is

being undertaken.

OIL & GAS INDUSTRY OVERVIEW

OIL & GAS COMPANIES IN "INDIA

Public Sector Undertakings (PSU's)

ONGC, - Oil & Natural Gas Corp (exploration and production)

OIL - Oil India Limited (exploration & production)

IOC - Indian Oil Corporation (refining & marketing)

BPCL - Bharat Petroleum Corporation Ltd (refining and marketing)

HPCL - Hindustan Petroleum (refining & marketing)

GSPC - Gujarat state Petroleum Corporation.

Private Oil & Gas companies in India

RIL - Reliance Industries Limited (Indian Oil & Gas Company)

ESSAR (Indian Oil & Gas Company)

Cairns Energy India

BG energy



Niko (upstream exploration & production)

Chevron Oil Limited

Shell Oil

BP

OIL & GAS REFINING IN INDIA

India oil refining capacity is the sixth largest in the world. India is soon emerging as a leading

exporter of refined petroleum products in the world. India has around 6000 Kms of product pipelines'

along with over 34, 600 Government of India (Gal) owned retail outlets.

Oil refining is an industrial process of processing crude oil into petroleum products that have

wider usage. The petroleum products obtained by oil refining are Gasoline or Petrol, Kerosene,

Diesel, Fuel Oil, Asphalt, Paraffin Wax, Lubricating Oil, Liquefied Petroleum Gas (LPG) etc. These

products by the oil & gas exploration and production companies in India have a wide market world

over.

INDIAN OIL & GAS INDUSTRY ANALYSIS

An analysis report of the oil & gas industry in India shows the stagnation II current oil

production and extraction processes diverting towards deep water' off drilling for finding never oil &

gas reserves where the drawback is lack of technical expertise in India. Also there's an acute shortage

of skilled labour force, latest drilling equipments and machines.

However, the solutions to these problems can come in the form of foreign collaborations for

better technology especially in deepwater drilling and extraction processes. Special 'training institutes

need to be set-up for providing skilled labour skilled labour for technical exploration on services.

Foreign collaborations will bring the necessary finance such projects. Also world-level profession

practices like optimum, Use of the available resources and equipments at the lowest possible coses

and proper oil & gas waste", regulation methods will pave way for further growth and development of

oil & gas industry in India.

PREMIUM FUELS IN INDIA

Some of the premium brands of product which are available to the country are as Follows

Hindustan Petroleum

Power is the brand name of the high performance petrol from Hindustan Petroleum; it comes

with specially imported additives which keeps the engine clean from any deposits. High quality petrol

is a must for new generation MPFI engines, which has to meet with stricter emission standards.

Power 93 This product is an improvement on the high performance petrol from Hindustan

Petroleum which further improves the performance of the vehicles.

Turbojet from Hindustan Petroleum unleashes the beast with in the diesel car, it comes with

special additives which keep the engine healthy, and it prevents deposits from forming on the engine.

Indian Oil Corporation

Xtra Premium is a 91 octane premium and is a high end product from Indian Oil Corporation

which comes with friction busters along with other additives. It is available in around 1000 outlets in

the country. It helps in reducing emission and improves performance of the engine by removing

Friction.

Xtramile from Indian Oil Corporation prevents engine from knocking, improves performance

of the engine and adds extra life to. It improves acceleration and cuts down on maintenance costs.



Bharat Petroleum

Speed introduced premium petroleum in the country and surprised ever starting a unique

concept of branding petroleum which Was initially a commodity business. It contains unique deposit

contain additives to prevent the engine from clogging. It also improves the performance of the engine

and helps in reducing knocking of the engine. Bharat Petroleum has further improved upon the brand

by introducing Speed 93 and Speed 97 the more refined the fuel gets the better its is for the engine

and the environment.

Hi- Speed Diesel is the new high performance, eco-friendly diesel from Bharat Petroleum. It

Works on the patented Green burn Combustion Technology and contains special cleansing additives

Sourced from Ethyl corporation, USA. Hi-Speed Die cleans your engine as you drive, giving you

peak performance, green performance.

Hi-Speed Diesel cleans up fuel injectors that are blocked with harmful deposits. It also

prevents the formation of new deposits. This gives your engine maximum power" Hakes it work as

good as new, every time clean fuel injectors also mean a considerable reduction in black smoke and

other harmful emissions from your car. This is good for environment especially in metros like

Mumbai where pollution levels are on the rise.

Hi-Speed Diesel ensures that fuel injection spray patterns are maintained. This results in easy

start-ups, less fuel consumption and smoother driving for your car. The anti-corrosion property of Hi-

Speed Diesel protects injectors and other fuel system components from excess wear and tear. This not

only improves the Performance of your engine but also lowers maintenance costs.

COMPANY PROFILE

The Indian government nationalized the Burmah Shell Group of Companies on 24 January

1976. This led to the formation of Bharat Refineries Limited which on 1 August 1977 was renamed as

Bharat Petroleum Corporation Limited (BPCL).

Business

Refinery BPCL's refinery in Mahul, Mumbai, processes about 9 million metric tones of crude

oil per annum. The unit has so far processed 61 different types of crude, making it one of the most

flexible refineries in the country.

Retail: Petrol, diesel and kerosene.

LPG: The Bharat gas brand of LPG cooking gas is sold to homes, commercial and industrial

establishments.

Lubricants: BPCL offers a full range of automotive engine oils, gear oils, transmission oils, specialty

oils and greases.

Industrial & Commercial: BPCL sells fuels and petrochemicals to around 8000 industrial customers.

Aviation: The aviation divisions of BPCL sells jet fuel and the Aeroshell brand of lubricants to

aircraft operators.



Benefits of Using Hi-Speed Diesel

There are many benefits of using Hi-Speed Diesel. These include:

Complete combustion of fuel Maximum Output + Fuel Economy

Peak performance of engine Smoother drive

Anti-corrosion property Low Maintenance costs

Cleaner engine Cleaner Environment

Partnership

BPCL has invested in various joint ventures across different sectors: Central U.P. Gas Ltd. is

a partnership between BPCL and GAIL for implementing the City Gas Distribution Project for supply

of CNG to the household and automobile sector in the cities of Kanpur, Allahabad, Baraelli and

Jhansi. Bharat Shell Limited is a joint venture between BPCL and Shell Overseas Investment BV of

Holland for marketing Shell branded lubricants Petronet LNG Ltd- a joint venture between BPCL,

IOC, GAIL and ONGC - was registered in April 1998 for importing LNG and setting up of LNG

terminals.

Indraprastha Gas Limited, a joint venture between BPCL, GAIL and the state government of

Delhi was formed for implementing the Delhi City Gas Project for distribution of natural gas to

domestic and commercial customers and supply of compressed Natural Gas (CNG) to the automobile

sector. Cochin International Ltd is a joint venture between BPCL, the state government of Kerala, Air

India, NRls and others, for setting up an international airport in the city of Cochin.

DATA ANALYSIS AND INTERPRETATION

Table 1- Age

Age No of

Respondents

Percentage

20-25 14 14

25-30 34 34

30-35 30 30

More than 35 22 22

Total 100 100

Source: Primary data

The table indicates that 34% of the respondents were under the age group of 25-30.30%

respondents were under the age group of 30-35.24.5% of the respondents were under the age group of

above 14% of the respondents were under the age group of 20-25.

Table No 2 - Educational Qualification

Qualification No of

Respondents

Percentage

Illiterate 25 25

SSLC and below 26 26

HSC 20 20

UG 17 17

PG 12 12

Total 100 100




The above table indicates that 17% of the respondents were under Graduates, 12% of the

respondents were post graduates, 20% of the were who pursued higher studies, 26% of the

respondents were who finished SSLC and remaining were below SSLC.

Table 3 - Occupation

Occupation No of

Respondents

Percentage

Professional 15 15

Salaried 25 25

Business men 50 50

Employee 10 10

Total 100 100


The above table indicates that 20% of the respondents were Business men 25% of the

respondents were Salaried, 15% of the respondents were professional, and 10% of the respondents

were employee.

Table 4-Annual Income

Income status No of

Respondents

Percentage

Below 5000 45 45

5000 – 10000 40 40

10000 – 15000 10 10

Above 15000 5 5

Total 100 100


The above table indicates that 45% of respondents were earning income below 5000.40% of

the respondents were earning 5000 - 10000. Remaining 10% respondents were earning more than

10000- 15000.

Table 5 -Quantity of Fuel per Month

Quantity No of

Respondents

Percentage

Less than 5 Ltrs 6 6

5 -15 Ltrs 40 40

15 – 25 Ltrs 45 45

25 – 35 Ltrs 9 9

Total 100 100


The above table indicates that 45 % of the respondents were using in 10-20Ltrs, 40% of the

respondents were using 5-10 liters and remaining respondents were using 20-30 and less then the 5

Liters.



Table 6-Type of vehicle

Vehicles No of

Respondents

Percentage

2 Wheeler 65 65

3 Wheeler 10 10

4 Wheeler 22 22

LCV 3 3

Total 100 100


The above table indicates that the 65% of the respondents were used two wheeler, 22% of the

respondents were four wheelers, 10% of the respondents owned three wheelers and remaining 3%

hold by LCV.

Table 7-Frequency of Usage

Frequency No of

Respondents

Percentage

Once 65 65

Twice 20 20

Thrice 15 15

More than thrice - -

Total 100 100


The above table indicates that 65% or the respondents were used to fill the fuels in once on

the day, 20% of the respondents were used to fill two times per day. 15% of the respondents were

used to fill thrice in day.

Table 8-Types of Brands

Company No of

Respondents

Percentage

BPCL 48 48

HPCL 20 20

IOC 26 26

RELIANCE 6 6

Total 100 100


The above table indicates that 48% of the respondents were using BPCL fuels 26% of the

respondents were using IOC fuels 20% of the respondents were using HPCL fuels 6% of the

respondents were using RELIANCE fuels.

Table 9-Preference of Branded fuels

Preference No of

Respondents

Percentage

Yes 30 30

No 70 70

Total 100 100




The above table indicates that 70% of the respondents were not willing to use branded

fuels.30% of the respondents were interested in using branded fuels.

Table 10-Reason for usage

Reason No of

Respondents

Percentage

Mileage 49 49

Smooth Drive 22 22

Low Maintenance 17 17

Pickup 12 12

Total 100 100


The above table indicates that 49% of the respondents were preferred branded fuel mainly for

the mileage, 22% of the respondents were preferred branded fuel especially for smooth drive, and

17% of the respondents were using branded fuel for low maintenance, 12% of the respondents were

using branded fuel for Pickup.

Table 11-Source or Awareness

Sources No of

Respondents

Percentage

Newspapers 25 25

Friend & Relatives 43 43

Brand Ambassadors 10 10

Word of Mouth 22 22

Total 100 100


The above tables of the respondents were able to know the information through friends &

relatives, 25% of the respondents were able to know the information through news paper, and 22%

respondents were able to know the information through word of the mouth and remaining 10% of the

respondents were able to know the information through brand ambassadors.

Table 12-Problem of using Fuel

Particulars No of

Respondents

Percentage

Mileage 63 63

More smoking 27 27

Total 100 100


From the table it is identified 63% of the respondents were produced the problem of low

mileage, and than remaining 27% of the respondents were problem of more smoking.



Table 13-Usage of Brand of Vehicle

Particulars No of

Respondents

Percentage

Bajaj 20 20

Hero Honda 50 50

TVS 20 20

Others 10 10

Total 100 100


50% of the respondents were used the Hero Honda, 20% of the respondents were used the

Bajaj and TVS branded, 10% of the respondents were used others.

CHI – SQUARE TEST

The chi-square test is an important test amongst the several tests of significance developed by

statisticians. Chi-square, symbolically written as x2 (pronounced as Ki-Square) is a statistical measure

used in the context of sample analysis for comparing a variance. As a non-parametric test it "can be

used to determine if categorical data show, dependency or the two classifications are independent. It

can also be used to make comparison between theoretical populations and actual data when categories

areused". Thus the chi- square test is applicable in large number of problems. The test is, in fact a

technique through the use of which it is possible for all researches to (i) test the goodness or fit: (ii)

test the significance of association between two attributes and (iii) test the homogeneity or the

significance of population variance.

The Chi-square value is often used to judge the significance of population variance i.e., we

can to judge if a random sample has been drawn from a normal population with mean () and with a

specified variance (2). "The test is based on x

2 distribution. In order that we may apply the Chi-

square test either as a test of goodness of fit or as a test to judge the significance of association

between attributes. It is necessary that the observed as well as theoretical or expected frequencies

must be grouped in the same way and the theoretical distribution must be adjusted to give the same

total frequency as we find in case of observed distribution must be adjusted to give the same total

frequency as we find in case of observed distribution x2 is then calculated as follows:

CHI – SQUARE TEST

RELATIONSHIP BETWEEN AGE AND QUANTITY

Null Hypothesis (H0)

There is no significant relationship between Age and Quantity.

Alternative Hypothesis (H1)

There is significant relationship between Age and Quantity.

Age

Quantity

Less than 5

Ltrs 5-15 Ltrs 15-25 Ltrs 25-35 Ltrs Total

20-25 3 4 6 1 14

25-30 9 11 10 4 34

30-35 2 10 15 3 30

More than 35 2 5 14 1 22

Total 16 30 45 9 100



O E (O-E)

(O-E)2

(O-E)2

E

3 2.24 0.76 0.5776 0.2578

9 5.44 3.56 12.6736 2.3297

2 4.8 -2.8 5.6 1.1666

2 3.52 -1.52 3.04 0.8636

4 4.2 -0.2 0.4 0.0952

11 10.2 0.8 0.6 0.0588

10 9 1 1 0.1111

5 6.6 -1.6 3.2 0.4848

6 6.3 -.03 0.6 0.0952

10 15.3 -5.3 10.6 0.6928

15 13.3 1.7 2.89 0.2172

14 9.9 4.1 16.81 1.6979

1 1.26 -0.26 0.52 0.4126

4 3.06 0.94 0.8836 0.2837

3 2.7 0.3 0.09 0.0333

1 1.98 -0.98 1.96 0.9898

TOTAL 9.7951

Chi square X2 = 9.7951

Degree of freedom = (r-1) (c-1)

= (4-1) (4-1)

= 3 X 3

= 9

Table value at 5%

Level of significance = 16.9

Since the calculated X2 is 9.7951 which are greater than the table value 16.9 at 5% level of

significance there is no significant difference.

Inference

Null Hypothesis is rejected

Alternative Hypothesis is accepted.



RELATIONSHIP BETWEEN OCCUPATION AND FREQUENCY OF USAGE


There is no significant relationship between Occupation and Frequency of usage.


There is significant relationship between Occupation and Frequency of usage.

Occupation

Frequency of usage

Once Twice Trice More than

Trice Total

Professional 9 4 2 - 15

Salaried 15 7 3 - 25

Business 35 6 9 - 50

Employee 6 3 1 - 10

Total 65 20 15 - 100

O E (O-E)

(O-E)2

(O-E)2

E

9 9.75 -0.75 1.5 0.1538

15 16.25 -1.25 2.5 0.1538

35 32.5 2.5 6.25 0.19230

6 6.5 -0.5 1 0.1538

4 3 1 1 0.3333

7 5 2 4 0.8

6 10 -4 8 0.8

3 2 1 1 0.5

2 2.25 -0.25 0.5 0.2222

3 3.75 -0.75 1.5 0.4

9 7.5 1.7 2.89 0.3853

1 1.5 -0.5 0.25 0.1666

TOTAL 3.4611



= (4-1) (4-1)

= 3 X 3

= 9

Table value at 5%






Inference



RELATIONSHIP BETWEEN AGE AND FREQUENCY OF USAGE


There is no significant relationship between Age and Frequency of usage.


There is significant relationship between Age and Frequency of usage.

Age

Frequency of usage

Once Twice Trice More than

Trice Total

20-25 9 3 2 - 14

25-30 22 8 4 - 34

30-35 18 6 6 - 30

More than 35 16 3 3 - 22

Total 65 20 15 - 100

O E (O-E)

(O-E)2

(O-E)2

E

9 9.1 -0.1 0.2 0.0219

22 22.1 -0.1 0.2 0.0090

18 19.5 -1.5 3 0.1538

16 14.3 1.7 2.89 0.2020

3 2.8 0.2 0.04 0.0143

8 6.8 1.2 1.44 0.2118

6 6 0 0 0

3 4.4 -1.4 -2.8 0.6364

2 2.1 -0.1 0.2 0.0952

4 5.1 -1.1 -2.2 0.4313

6 4.5 1.5 2.25 0.5

3 3.3 -0.3 0.6 0.1818

TOTAL 2.4575





= (4-1) (4-1)

= 3 X 3

= 9

Table value at 5%




Inference



RELATIONSHIP BETWEEN PREFERENCE OF BRANDED FUEL AND ANNUAL INCOME


There is no significant relationship between preference of branded fuel and annual

income.


There is significant relationship between preference of branded fuel and annual income.

Annual income

Preference of Branded Fuel

Yes No Total

Below 5000 12 33 45

5000-10000 10 30 40

10000-15000 6 4 10

Above 15000 2 3 5

Total 30 70 100

O E (O-E)

(O-E)2 (O-E)

2

E

12 13.5 -1.2 2.4 0.1777

10 12 -2 4 0.3333

6 3 3 9 3

2 1.5 0.5 0.25 0.1666

33 31.5 1.5 2.25 0.0714

30 28 2 4 0.1428

4 7 -3 6 0.8571

3 3.5 -0.5 1 0.2875

5.0364



= (4-1) (2-1)



= 3 X 1

= 3

Table value at 5%




Inference



FINDINGS, SUGGESTIONS AND CONCLUSIONS

FINDINGS

Majority of the respondents were aware about the premium fuels of petroleum marketing

companies.

34% of the respondents were under the age group 25-30.

50% of the respondents were under the category of Business men.

The major respondents of the study were using speed and extra premium fuels.

More than 48 % of the respondents were using BPCL Fuels, 20% of the respondents were

using HPCL fuels and remaining 26% of the respondents were using IOC fuels by

government owned petrol marketing companies.

Among the respondents one who purchased new vehicle are using branded fuels.

Among the respondents one who own two wheelers more than three years are not aware of

branded fuels.

Majority of car owners are mainly using branded fuels only for the purpose of smooth drive.

SUGGESTIONS

The company should try to teach the difference between branded fuels and ordinary fuels.

The company must try to explain the benefits of branded fuels among the customers.

Create awareness through local media especially in vernacular language.

The company should conduct awareness campaigns to the long term users of vehicles.

The company must do research and development activities to overcome the minor changes.

The company should educate car owners premium fuels area also for low maintenance also.

The company must explain the mechanics about premium fuels.

Offer a contest that empowers students to use our products.

CONCLUSION

Marketing research is being used to measure the characteristics of market, to obtain

information needed to evaluate the problems faced by the company and to assist the manager in

making decisions for such problems. The researcher feels that this study will help the company in the

present situation to formulate the strategies that are necessary to capture the customer's awareness

about the brand and to promote sales.

The researcher believes that each of the points highlighted in the study will very much helpful

to the company, in order to improve their relationship with their customers. From the study, the

researcher came to understand that availability of fuels, awareness about premium fuels, is



satisfactory. The study implies that the Cumbum Town performs successful in creating awareness of

premium fuels due to extreme care taken by the authorities. The customers are satisfied with service

rendered by the retail outlets.

BIBLIOGRAPHY

REFERRED BOOKS:

R.S.N Pillai & V.Bagavathi. Modern Marketing, New Delhi: S. Chand & Co.

Ltd.,

Rajan Nair & Sanjith. R. Nair, 1002 Marketing, New Delhi: S. Chand & Co. Ltd.,

Philip Kater, Marketing Management, Tata McGraw Hill, 1000

Ram Ahuja Research Methods, Himalaya Publishing House

Statistics by R.S.N, Pillai and V.Bagavathi published by S.Chand & company Ltd

WEBSITES

www.bharatpetroleum.com

www.google.com

www.search.ebscohost.com



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