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Making a Difference through Innovative Retailing

MAKING A DIFFERENCE THROUGH

INNOVATIVE RETAILING

PRESENTED BY:

Anjali Singh

Nishank Bhardwaj

Chhavi Goswmi

Bandhul Dhawan

Divya Bhalla

Paridhe GuptaSalisha Dang

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Introduction

Burmah Oil Refineries Ltd. was incorporated in 1952 as a jointventure between Burmah Oil Company, UK and Shell PetroleumCompany by an agreement with the Indian Government to set up arefinery at Mahul in Mumbai, which went on stream in 1957. In 1976the Indian Government nationalized the petroleum industry and

acquired 100% equity in Burmah Oil Refineries and named it BharatRefineries Ltd. The name was later changed to Bharat petroleumCorporation Ltd. (BPCL) in 1977.

BPCL was an integrated refining and marketing company.

BPCLs retail network was the third largest in the country with around

4,500 retail outlets(petrol pumps / gas stations), around 950dealerships for kerosene and light diesel oil, and 1200 LPGdistributors. It had 22 LPG bottling plants, 3 lube blending and fillingplants, 6 port installations, 13 aviation service stations, 67 companyoperated depots and 23 dispatch units.

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BPCL has two refineries in India-one in Mumbai and one inKochi, whose combined refining capacity is 19.5 MMTPA.

BPCL has a vast marketing network for direct and retail sale ofMotor Spirit, High Speed Diesel, Light Diesel Oil, Lubricating

Oils, Liquefied Petroleum Gas, Aviation Turbine Fuel and otherpetroleum products as also Convenience Stores from which itemsof daily necessity are being sold.

BPCL has its registered office at Mumbai

BPCL has one subsidiary Company (managed by the Board ofDirectors of the respective Companies), namely

Numaligarh Refinery Ltd., having a refinery at Numaligarh,District Golaghat, Assam and refining capacity of 3 MMTPA and a

relatively small marketing set up for sale of their product in the retailmarket, apart from marketing the product directly to the customers.

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Difference through Innovative Retailing

Building a Vibrant Highway Assurance Network is an integralpart of BPCLs Retail Business strategy.

'Pure for Sure'

Multi Product Dispensers

'In & Out' (the Errand Mall concept)

Petro Card & 'SmartFleet Card'

'Bazaar'.

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7 Ps of Bharat petroleum

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PLACE : Channel, Distribution or

Intermediary

The key competitive strength defining BPCLs favorable business profile is its well-entrenched marketing and distribution infrastructure. This encompasses over 4,500retail outlets, 164 depots, 19 installations, product tank age of three million kilolitresand an LPG customer base of over 13.8 million spread across the country.

Retail channel:

The retail segment, which accounts for over 70 per cent of its sales, BPCL owns around60 per cent of its outlets, a large proportion of which are in the high-value urban andmetro centre's.

No of retail outlets in Delhi = 69

BPCLs marketing strength is evident from its consistent 22 per cent share of thedomestic petroleum market, which is dominated by four large players.

Business strategy in retailing:

Building a Vibrant Highway Assurance Networkis an integral part of BPCLs RetailBusiness strategy. the goal of which is "Assurance" to the Highway Traveller whichincludes the Truckers and Tourists.Assurance would mean offering: Personal Solutions, Journey Solutions, Business

solutions and ensure consistency in Deliverables, Offerings and facilities.

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PRODUCT

SPEED FUELS

SPEED

HIGH SPEED

DIESEL

SPEED RUN 97

AUTO LUBES

MAK

AUTO GAS NORMAL

PETROLDIESEL

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PRICESThe cost price of petrol per litre is Rs 63.38, following is the break up

of cost calculated by the government.

Basic Price: Rs 30.93

Excise duty: Rs 15.35

Education Tax: Rs 0.9

Dealer commission: Rs 1.06

VAT: Rs 5.80

Crude Oil Custom duty: Rs 1.40

Petrol Custom: Rs 1.94

Transportation Charge: Rs 6.00Total price: Rs 63.37

The variation in price within oil marketing companies is due to

difference in dealer commission .

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PROMOTION

1. Promotional Schemes

2. Petro Bonus card

3. Tie up with TV channels to broadcast add during Matches and

Formula 1 races.

4. Tie up with banks to reward points upon paying by credit cards/

debit cards.

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PHYSICAL EVIDENCE

The flagship initiative of Pure For Sure (PFS) offering the guarantee

of pure quality and correct quantity of fuel to our customers.

The petrol pumps displaying a prominent Pure For Sure signage havebecome landmark destinations .

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PEOPLE

The reputation of the brand rests in the peoples hands.

Therefore, BPCL ensure that all people working with it are

appropriately trained, well motivated and have the right attitude.

Dealers are given workshops to improve service at their pumps.

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PROCESS

1. The process that you go through are crucial to customer satisfaction.

2. BPCL offer a robust and automated network of retail outlets, which

leverage technology to deliver the assurance of quality and quantity

promise, ensure integration of payment with fueling and improvesthe service efficiency at the forecourt of the petrol pump.

3. In-Out stores with cafeterias available on selected pumps while you

get your vehicle washed or get fuel filled.

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THANK YOU