Mes indiaA

PROJECT REPORT ON

MARKET & POTENTIAL SURVEY

OF BPCL

As partial fulfillment for the award of

.
 Acknowledgement

The making of this project has been a great experience for me on

BPCL (Financial Management) during partial fulfillment of my
MBA course.

While making this project I have gained immense practical

knowledge of how an organization works day to day and how their
policy regarding Financial conditions of Shree Bharat Petro,
(BPCL) marketing and sales of the products has been made and
how they strive continuously in today competitive environment to
maintained and enhance their position in the market.

In the end of my project, I would like to acknowledge Dr. Arpita

Khare, Co-ordinator of MBA at IPEM, Ghaziabad for her immense
cooperation in making this project and also I would like to give my
thanks to Mrs. Sapna Rakesh, Director of IPEM, Ghaziabad whom
able guidance helps me to complete this project.

.
Last but not least I would like to give my thanks to all BPCL
family members, colleagues and dealers who helped me during my
project work.

SHIVENDRA PRATAP SINGH

MBA 2002-2004
IPEM
Ghaziabad.

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 CONTENTS

 Acknowledgement
 Introduction
 Objective
 Synopsis
 Company Profile
 Research Methodology
 Market Analysis
 Suggestions & Recommendation
 Conclusion
 Annexure – Questionnaire

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 SYNOPSIS
OBJECTIVE :

The main objective of the project is to find out the perception of

dealers/ retailers regarding the sales promotion facility.

TYPES OF RESEARCH :

Research Approach : Survey Approach

Research Instrument : Questionnaire

SAMPLING PLAN :

Number of Sampling Unit : 30

Sample Unit : Dealers / Retailers

DATA COLLECTION : Sampling Procedure

Contact Method : Structured Interview through

questionnaire

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.
 INTRODUCTION
Topic : Market Survey of BPCL
Objective : To increase the sale of BPCL Products

Bharat Petroleum Corporation Ltd. manufacturer a large range of

lubricants ,liquid petroleum gas, (LPG) Petrolium diesel, Aviation
fuel & solvents.

BPCL has also spreads up to Refinery plants in India

Indian Oil and Castrol of the major competitors in the market
against BPCL. It is important to get and idea regarding BPCL
position in Ghaziabad and Meerut City.

It could not help BPCL to capitalize on existing potential but also

to formulate strategic and to fill the look holes and gaps to fight the
competitive situation.

Conducted the survey : Under the able guidance of Mr. Neeraj

Tyagi and Mr. Suri.
The researcher has tried to now about the following points :-
1. To find out the perception of dealers / retailers of BPCL.
2. To determine the market share

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 MARKET ANALYSIS
Survey is the most commonly method i.e. used in collecting
primary data in market survey, and has extremely flexible.

Survey Research is the systematic gathering of data from

respondent through the questionnaire.
The purpose of the survey is to provide more and more information
regarding it market position and sales promotion.

A questionnaire is the former list of the entire question to be

answered in the survey.

I have conducted the market survey in different city e.g Meerut.

Ghaziabad, Delhi and Modinagar.

I have make a survey especially on petroleum product (Sales

Promotion facility).

There are a number of companies in the market. Some of them of

Government companies and some of them of private companies as
BPCL
IBP

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Indian Oil
Hindustan Petroleum
Castrol
Shell
ELF
Pennzoil

In our analysis, I have found that BPCL is not in a good position in

the market.
This company does’t not provide as much sales promotion facility
as it should provide in comparision to other company which exists
in the market like Indian Oil, Hindustan Petroleum , Castrol, Shell,
ELF, Pennzoil, bp .

Infect the quality of BPCl products its superior but its price is little
big high and it also doesn’t provide sale promotion scheme.

There is also a lack of proper advertisement and wall painting,

print media, electronic media and distribution network, dealers
meets, and mechanic meet.

BPCL not in a good position because prices so much high in

comparison to other companies.
It can gets its real position only by improving its faults.

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 A GLORIOUS COMPANY
Do take some time off for a brief interlude with the past, as we
take you back in time to the evolution of Bharat Petroleum
Corporation Limited. A new chapter in the history of Indian
industry.

EARLY HISTORY - DAWN OF A NEW ERA

Petroleum (derived from Latin Petra-rock and oleum-oil) first

came up in wells drilled for salt. People found it useful as
illuminating oil and the demand for it steadily increased.

Samuel Kier, a Pittsburgh druggist, bottled and marketed

Petroleum as medicinal cure. To market a deodorized variant, he
designed the first primitive refinery in 1852, which was a huge
improvised kettle, connected to a metal tank.

'Colonel' Edwin Drake and 'Uncle' Billy Smith drilled a well with
the specific objective of finding oil, and on 27th August 1859, they
"struck oil" at Titusvale, in North Western Pennsylvania, USA, at a
depth of 69.5 ft.

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FROM NOTHING TO GOLD

The 1860s saw vast industrial development. A lot of petroleum

refineries also came up.

An important player in the South Asian market then was the

Burmah Oil Company. Though incorporated in Scotland in 1886,
the company grew out of the enterprises of the Rangoon Oil
Company, which had been formed in 1871 to refine crude oil
produced from primitive hand dug wells in Upper Burma.

The search for oil in India began in 1886, when Mr. Goodenough
of McKillop Stewart Company drilled a well near Jaypore in upper
Assam and struck oil. In 1889, the Assam Railway and Trading
Company (ARTC) struck oil at Digboi marking the beginning of
oil production in India.

While discoveries were made and industries expanded, John D

Rockefeller together with his business associates acquired control
over numerous refineries and pipelines to later form the giant
Standard Oil Trust. The largest rivals of Standard Oil - Royal
Dutch, Shell, Rothschilds - came together to form a single
organisation: Asiatic Petroleum to market petroleum products in
South Asia.

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In 1928, Asiatic Petroleum (India) joined hands with Burmah Oil
Company - an active producer, refiner and distributor of petroleum
products, particularly in Indian and Burmese markets. This alliance
led to the formation of Burmah-Shell Oil Storage and Distributing
Company of India Limited.

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THE PIONEERING SPIRIT - BURMAH SHELL
MARKETING

A pioneer in more ways than one, Burmah Shell began its

operations with import and marketing of Kerosene. This was
imported in bulk and transported in 4 gallon and 1 gallon tins
through rail, road and country craft all over India.

The company took up the challenge of reaching out to the people

even in the remote villages to ensure every home had its supply of
kerosene. The development and promotion of efficient kerosene-
burning appliances for lighting and cooking was an important part
of kerosene selling activity.

With motor cars, came canned Petrol, followed by service stations.

In the 1930s, retail sales points were built with driveways set back
from the road; service stations began to appear and became
accepted as a part of road development. After the war Burmah
Shell established efficient and up-to-date service and filling
stations to give the customers the highest possible standard of
service facilities.

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On 15th October 1932, when civil aviation arrived in India, the
company had the honour of fuelling J.R.D. Tata's historic solo
flight in a single engined de Havillian Puss Moth from Karachi to
Bombay (Juhu) via Ahmedabad. Thirty years later, i.e. in 1962,
Burmah Shell again had the privilege to fuel JRD Tata's re-
enactment of the original flight. Burmah Shell also fuelled flying
boats, which carried airmail at slightly higher rates than sea
transport, at several locations.

As a true pioneer would, the company introduced LPG as a

cooking fuel to the Indian home in the mid-1950s. And all along, it
went beyond selling petroleum, to educate the customer. Besides
selling Bitumen, the company pioneered desert road construction,
training road engineers. It provided free technical services to
industrial customers - big and small - and it became a part of the
company's culture.

ON STREAM - THE BURMAH SHELL REFINERY

An agreement to build a modern refinery at Trombay, Bombay was

signed between the Burmah Shell group of companies and the
Government of India on 15th December 1951.

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Burmah Shell Refineries Limited was incorporated as a private
limited company under the Indian Companies Act on 3rd
November 1952, and work began on the marshland of Trombay at
Bombay. Man and machine worked relentlessly, and soon the
swamps gave way to towers and tanks of steel, and miles of
pipeline.

The refinery on 454 acres of land at village Mahul went on-stream

on 30th January 1955, one year ahead of schedule. Dr. S.
Radakrishnan, Vice President of India, declared the 2.2 MMTPA
(Million Metric Tonnes Per Annum) Refinery open on 17th March
1955. It was then the largest refinery in India then.

FROM BURMAH SHELL TO BHARAT PETROLEUM

On 24th January 1976, the Burmah Shell Group of Companies was

taken over by the Government of India to form Bharat Refineries
Limited. On 1st August 1977, it was renamed Bharat Petroleum
Corporation Limited. It was also the first refinery to process newly
found indigenous crude (Bombay High), in the country.

With this infrastructure, free India moved one step closer to self-
reliance.

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 THE TECHNOLOGICAL EDGE
Bharat Petroleum has always been on the forefront of harnessing
technology initiatives for maximising efficiency and achieving
greater customer satisfaction.

Bharat Petroleum is the first Public Sector Oil Company to

implement Enterprisewide Resource Planning (ERP) solutions -
SAP. The implementation project known as ENTRANS
(Enterprisewide Transformation) has been awarded the 'SAP Star
Implementation Award', with Bharat Petroleum having the
distinction of executing the largest and the most ambitious SAP
project in India. The challenge of SAP implementation was to
ensure that all the integrated elements (of the complex multi-
modular integrated solutions that impact the entire workflow of the
organisation) work seamlessly across the length and breadth of the
country, including the remote locations. Providing online
connectivity in these remote locations, given the full-fledged IT
network infrastructure, was in itself a daunting task.

Bharat Petroleum is reaping the benefits of the integrated system in

many areas of its operations. The early gains of implementation are
in the areas of tracking customer-receivables, monitoring credit-

.
management, inventory management, besides easing the
operations in a large number of areas.

Furthermore, Bharat Petroleum has also set up one of the biggest

'Centres of Excellence' in Asia to provide online support to the end
users and also work towards continuous improvement in business
processes and handle product upgrades and new generation
products.

With SAP as the IT backbone, Bharat Petroleum plans to take

advantage of the Internet based capabilities along the entire value
chain with a Customer Relationship Management solution. A large
data warehouse project has also been implemented, which
facilitates access to real-time accurate information on key
performance indicators at all Bharat Petroleum locations. This
enables the management to take strategic and business decisions,
thus ensuring value-added services, better customer satisfaction
and enhanced shareholder value.

THE PLANNED APPROACH

Increasing globalisation, new products and services, and
innovative marketing have resulted in a very market savvy
consumer. The production-based success philosophy of marketers

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has now been replaced by a customer-oriented philosophy.
Bharat Petroleum has taken cognisance of this situation well in
time and has been taking radical steps to keep itself attuned to the
changing times, realising that the future belongs to those who
listen and adapt to their customers.

STRATEGY DEVELOPMENT
Bharat Petroleum recognises that all strategic initiatives must
conform to the overall vision ofthe Corporation and improvethe
economic value. The Strategy Development effort at the corporate
level achieves better focus in the new organisational structure,
besides facilitating the SBUs in developing their respective
strategies that lead to an integrated Corporate Strategy. A Business
Planning process has been put in place that not only provides
opportunities for the SBUs to pursue their visionary goals in
consonance with the Corporate Vision, but also continuously
monitors trends and identifies strategic opportunities for the
Corporation.

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BRAND MANAGEMENT

In the highly competitive scenario, it has become imperative to

own dominant brands. The Brand Management team at Bharat
Petroleum endeavors to build and manage a strong brand image
reflecting Bharat Petroleum's core values of being 'INCARE', viz.
Innovative, CAring and Reliable. Emphasis is laid on continuously
understanding customer behaviour, tracking their changing needs
and expectations, and meeting these needs in the most cost-
effective manner.

RESEARCH & DEVELOPMENT

Always on the forefront to innovate, Bharat Petroleum is making

distinct efforts towards Research & Development (R&D). Besides
the R&D facilities at the Refinery and the Product Application
Development Centre in Sewree in Mumbai, a new state-of-the-art
R&D Centre is being set up near Delhi. The R&D Centre is being
organised around three core groups - Process & Technology
Development, Product Application Development and
Environmental Engineering. A total outlay of Rs.3,000 million has
been planned to be spent in three phases up to the year 2003-04 on
this project.

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 SHAPING THE FUTURE
The core strength of Bharat Petroleum Corporation Limited has
always been the ardent pursuit of qualitative excellence for
maximization of customer satisfaction. Thus Bharat Petroleum, the
erstwhile Burmah Shell, has today become one of the most
formidable names in the petroleum industry.

Bharat Petroleum produces a diverse range of products, from

petrochemicals and solvents to aircraft fuel and speciality
lubricants and markets them through its wide network of Petrol
Stations, Kerosene Dealers, LPG Distributors, Lube Shoppes,
besides supplying fuel directly to hundreds of industries, and
several international and domestic airlines.

DYNAMIC GROWTH POST NATIONALISATION

Following nationalisation in 1976, Bharat Petroleum changed gears
and embarked upon a rapid growth path. Turnover, profitability
and financial reserves grew by leaps and bounds. Massive
expansion and modernisation provided a tremendous boost to the
company's performance. Large-scale recruitment and training
became critically important to meet the demands of expansion.

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THE WINDS OF CHANGE - A TRANSFORMED
ORGANISATION EMERGES

Opening up of the Indian economy in the nineties brought with it

more competition and challenges, kindled by the phased
dismantling of the Administered Pricing Mechanism (APM) and
emergence of additional capacities in the region in refining and
marketing.

In 1996, Bharat Petroleum went through a process of visioning,

involving people at all levels, which evolved a shared vision and a
set of shared values. Based on this, the company restructured itself,
in a proactive move to adapt to the emerging competitive scenario.
The function-based structure was carefully dismantled and
replaced with a process-based one. This made the company more
responsive to its customer needs.

Bharat Petroleum realises that, in the long run, success can only
come with a total reorientation and change in approach with the
customer as the focal point. Today, Bharat Petroleum is
restructured into a Corporate Centre, Strategic Business Units
(SBUs) and Shared Services and Entities. The organisational
design comprising of five customer facing SBUs, viz. Aviation,

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Industrial & Commercial, LPG, Lubricants and Retail and one
asset based SBU, viz. Refinery, is based on the philosophy of
greater customer focus.

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 OUR COMPANY

COMMITMENT TO SOCIETY
Bharat Petroleum continues its endeavours in meeting social
obligations to the under privileged sections of the society through
development of roads, schools, clinics and vocational training
centres in rural areas. Cataract camps for villagers, vocational
classes to make the rural women self-reliant, development of rural
women and children, providing sanitation and drinking water in the
villages, are just a few of the many contributions made by Bharat
Petroleum to meet its social responsibilities.

In recognition of the outstanding work done in the area of Rural

Development, FICCI awarded the 'Rural Development Award
1999-2000' to Bharat Petroleum.

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 BOARD OF DIRECTORS

S. BEHURIA

Chairman & Managing Director

MUKESH ROHATGI

Director, Refineries
ASHOK SINHA

Director , Finance
S. A. Naryanan

Director, Human Resource

S. RADHAKRISHAN

Director, Marketing
S. VIJAYA RAGHWAN

Joint Sect. Ministry of Petrolium and Natural Gas

Dr. B. MOHANTY

Joint Advisor (Finance)

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 OUR COMPANY
CORPORATE VISION

Effective
Have excellent Make BPCL a boundary
customer great place
carrying and management
to work
customer service

Established a Fulfill Social

first class responsibility
brand and
corporate
image

VISION
Develop Apply the
cohesive best
corporate technology
strategy

Sound
Business Be and
performance ethical
Strong and
and operational company
dynamic
efficiency
system

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SOCIAL WELFARE

Social Welfare in Bharat Petroleum was initiated as a non-statutory

body in the year 1984. Bharat Petroleum has been the pioneer in
the oil sector to hire the services of professional social workers.
Areas of work in the initial years were primarily to cater to the
softer areas of employee related issues, to mention a few are:

 Counselling for personal as well as emotional problems

affecting work.

 Assistance to quit substance abuse (like alcohol and other

drugs.

 Marital Conflicts, Divorce Reconciliation, Money

Management, etc.

With years our focus changed from restorative to preventive as

well as promotive, holistic health. Talks on various issues at plant
level like addiction, HIV/AIDS, parental issues, time and finance
management, family relationships were initiated, which still
continues and gives considerable positive returns. For the above
mentioned activities we have collaborated with various Non
Government Organisations, to deliver best humane services for our
employees and their family members. Eventually, their
involvement in the whole process of employee related issues were

.
taken, there by channelising their energy positively as well as
encouraging prosocial behaviour.

COMMUNITY DEVELOPMENT

As a part of Society, Bharat Petroleum believes that they owe as a

corporate body to give back to society their best. With this social
obligation Bharat Petroleum started community work way back in
1987 by adopting Karjat (tribal area in Raigad District) and Mahul
(our neighbourhood) for ameliorating lives of the deprived.

Karjat is located in Raigad District and comprises of mainly tribal

population. Bharat Petroleum adopted 25 villages under Mogrej
and Tembre Gram Panchayat. Some of the activities undertaken to
help the tribal population are-

 Constructing a community hall/ Samaj Mandir

 Health assistance, through regular health camps, pediatric

camps and cataract camps

 Educational assistance through distribution of books, holding

competitions

 Vocational assistance by imparting training in bamboo and

tailoring

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  Encouraging environment friendly attitude through
distribution of smokeless chulhas, solar cookers as well as
educating them through folk music.

Mahul being close to Refinery had different set of expectations as

well as issues. The village has approximately 25,000 inhabitants
who are primarily fishermen, some are migrants who work on
contract as well as in salt pans. Some of Bharat Petroleum's
assistance to these inhabitants so far has been-

 Infrastructural development, like construction of jetty,

Balwadi, Homeopathic Dispensary

 Vocational guidance through aptitude testing, scientific

vocational need based study through Jan Shikshan Sansthan
(NGO under ministry of HRD)

 Exhibition for the Fishermen to equip them with latest

avenues in fishing through Central Institute Of Fisheries
Education(CIFE)

Bharat Petroleum's approach both for employees as well as

community is to share the best to get the best. Bharat Petroleum
also has in the Refinery a crèche wherein employees and their
children are in touch with each other.

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In times of natural calamities you will always find Bharat
Petroleum in the forefront, rendering aid and emergency
provisions. Bharat Petroleum relief teams have worked tirelessly to
provide the Gujarat Earthquake and the Orissa Flood victims with
food and essential survival materials.

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 LIST OF 20 VILLAGES ADOPTED
 Bhogalpura (Agra)

 Srinivasapura & Muneshwara (Bangalore)

 Neelgarh (Bhopal)

 Ramathenga (Bhubaneshwara)

 Brindabanpur & Farakidanga (Calcutta)

 Jahazpur (Calcutta)

 Mankara (Calcutta)

 Kadambankulam (Coimbatore)

 Basantgarh (Delhi)

 Jyotinagar (Goa)

 Nangalgovind (Jaipur)

 Babukhera (Lucknow)

 Pedawada/Manjripal (Nagpur)

 Laakarhawar (Patna)

 Kasabkhede / Pohey (Pune)

 Khara Bairaja (Rajkot)

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  Mangadih / Jaradih / Dimra / Obar (Ranchi)

 Bhaktachiwadi / Mogrej (Karjat)

 Tembre (Karjat)

 Mahul (Chembur)

We feel happy when we see

Smiles on the faces of villagers and children.

It helps us to get closer to our Corporate Philosophy.

We care for you.

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 PRODUCTS
 Refineries
 Petroleum Products
- PETROL & DIESEL PUMPS
 Lubricants
- DISEAL ENGINE OIL
 MAK Multigrade
 MAK Gold
 MAK Diamond
 MAK Ultra Supreme
 MAK GE (Gas Oil)
- PASSENGER CAR
 MAK Classic
 MAK Elite
 MAK Supreme
 MGO
- PUMPSET OIL
 MAK Pump
- GREASE
 MAK Univex-A
 MAK W.D.
 MAK MP3 ( Multipurpose)

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 - GEAR OIL
 MAK Spirol 99ep/140ep
 MAK Syncrol 90/140
 MAK ATF-A
 Tello ATF

 TWO STROKES OILS

 MAK 2T FC
 MAK Glide 4T (4 Stroke)

 BRAKE OIL
 MAK BRK Flud (Heavy Duty)
 MAK Super Kool
 MAK Redi Kool
 Hydrol 68
 Hydrol 32/46/68/100
 Hydrol 150/220/320
 Hydrol 460
 Hydrol HLP 32/46/68/100
 Sherol B
 FREEZOL 32/46/68/100

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 ORIGIN OF LUBRICANTS

LUBRICANT:
Balmer Lawrie introduced modern day lubricants-greases and
oils- in India, initially them from England and USA and
distributing them to tea gardens and other industries. In 1937 the
company pioneered the manufacture of lubricating greases in India
setting up a small plant in Howrah, followed soon by the
introduction of its brand 'Balmerol' for blended lubricating oils and
greases.

Lubricant are the smallest and most diversified segment of

the petroleum industry. The international scenario of the lubricant
is as fast changing as ever. The present global lubricant market is
of the order of about 38 MT. Asia Pacific region including India
accounts for almost one third of this demand. The world lubricant
demand is expected to grow by about 1.1% per year upto the year
2002 while in Asia the average growth rate would be around 5%.

THE INDIAN LUBRICANT INDUSTRY:

The lubricant industry in India is one of the sub-sector of
petroleum industry which was opened out completely to private

.
and foreign manufactures. The Indian lubricant industry is 6 th
largest in the world. Current lubricant market in India is 1 million
tones per year which has not been affected by the current recession
in Asia. The major factor in favour o the Indian market is the
growth rate.

The market is growing at the rate of around 5% against the

global average of 2.5% more than 25 national/international oil
companies are operating in India with a total market value of
around Rs. 5500 crores. Automotive oils are the biggest and
largest and the most crucial segment of the lubricant sector which
consumes about 60% of the lubricant in India.

LUBRICANT MARKET
In 1993, the government announced a number of regulatory
changes in the lubricants sector. It permitted the entry of foreign
companies, decanalised imports of base oil (used for lubricants,)
decontrolled prices, and progressively lowered the customs duty
(from 85 per cent to 30 per cent).
In 1997-98, the size of the lubricants market in India was around
Rs. 55 billion with a volume of around 1.2 million tonnes, making
it the sixth largest lubricants market in the world. (In 1993, the
market size was Rs. 35 billion with a sales volume of 630,000

.
tonnes.) the lubricants market has grown by nearly 17 percent per
annum in the past four years in terms of volume and by nearly 12
per cent annum in terms of value.

Since 1993, the number of lubricants in the market has

increased. With the introduction of multi-grade oil and synthetic
lubricants, the quality to lubricants had improve. Some companies
have also set up state -of-the-art lube blending plants.

The number of players in the lubricants market has increased

from 5 in 1993 to around 40 in 1997. The share of public sector
marketing companies (LOC, HPCL, BPCL and IBP) has declined
from 88 per cent in 1991-92 to around 60 per cent in 1997098 IOC
is the largest player with a market share of 32 per cent, while
Castrol is the second largest with a market share of nearly 18 per
cent. Castrol had increased its market share from per cent in 1991
to 17.4 per cent in 1997-98.

The changes in market shares of players can be attributed

mainly to the pace of new product introductions by companies,
availability of the product in the market, and aggressive advertising
and pricing strategies followed by companies. In general,

.
marketing costs account for 10 per cent of the selling price of
lubricants.

The market can be segmented by end-use automotives and

industrial uses, automotives accounts for about 60 per cent of the
total market, while industrial account for 40 per cent of the market.
The market can also segmented by end-users-individual and
institutional buyers, where institutional buyers include railways,
defence forces, state road transport corporations and manufacturing
firms. The individual user segment accounts for about 55 per cent
of the market, while the institutional user segment accounts for
about 45 per cent of the market.

Automotive sales are done through two channels, retail

outlets and bazaar trade, Retail outlets are petrol pump and bazaar
trade comprises authorised dealers, spares and accessories shops,
and road-side mechanics. The share of lubricants sold at petrol
pumps has declined from 90 per cent in the late eighties to about
65 per cent in 1997-98.

.
 Since only public sector marketing companies, are
permitted to distribute lubricants through retail outlets,
international companies such as Mobile Exxon, Shell and Caltex,
have set up joint ventures with them in order to access the
distribution network of 16,950 retail outlets. A marketing
company's retail outlet sells both its own lubricants and the foreign
brand, which are usually priced higher.

Other international players have been forced to focus on

bazaar trade. Recently, public sector marketing companies are also
trying to increase sales through bazaar trade in order to improve
their market share. Gulf oil is planning to set up 'quick' lube
change centres' since it does not have access to petrol pump.
Lubricant companies have also been targeting automobile
companies for direct sales as original equipment (OE) suppliers.

Automotive Gear Oils: Automotive gear oils are one of the

bulk volume lubricants after engine oils world over.

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 PROFILE
BHARAT PETROLEUM CORPORATION LTD.

Incorporation Year 1976

Registered Bharat Bhavan
4 &6 Currimbhoy Rd Ballard Est.
Bombay 400001
Maharastra
Telephone 91-22-2618281/8061/1705
Fax 91-22-2616793
Industry Refineries
House Govt. of India
Chairman S. Behuria
Company Secretary D.M. Naik Bengre
Auditor M/s RSM & Co. M/s Mehra Goel & Co.
Face Value 10
Market Lot 1
Listing Bombay
Calcutta
Madras
Delhi
NSE
Registrar Bharat Petroleum Corpn. Ltd.
Bharat Bhavan
4 & 6 Cruimhoy Rd
Ballard Estate
Bombay -400001

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 BPCL’s CONEPTS
COCO

The Company Owned Company Operated Retail Outlets (COCOs)

are of significant importance to the Corporation. There is a lot of
value seen by all concerned in these Retail Outlets. One of the
major problems the Oil Industry is facing, as of today, is to ensure
availability of right quantity and right quality of fuel to the general
public through Dealer run Outlets. From the consumers' point of
view, COCOs are favourite because of the right quality and
quantity of fuel delivered to them. There are a number of examples
of COCOs being patronized very heavily by the public because of
their reputation of supplying right quality and quality fuels.
The Company Owned Company Controlled Retail Outlets
represent the face of the corporation to the public at large. These
Outlets are an excellent gateway for the Oil Companies to build
their brand through visual manifestation and customer service.
They give a first hand opportunity to interact with the customers
directly. COCOs are a very valuable platform for acquiring
retailing skills, which will go a long way in preparing the
Corporation for de-regulation. These Retail Outlets provide an
opportunity to get a hand on experience on retailing fuels and
allied products. Some of these Retail Outlets are being used as

.
Training Center for the staff. Further, COCOs serve as a fall back
to the Oil Industry to ensure supply of petroleum products to the
general public, in case of strike by the dealers or threat of "No
Purchase" campaign which is happening quite often in the recent
past.

An opportunity was given to the Oil Industry to construct and

operate Retail Outlets on COCO basis under the Jubilee Retail
Outlets scheme on major important National and State Highways.
These outlets have become instant success with the customers
because of high standards of customer services including the right
quality and quantity of fuels being dispensed from these Retail
Outlets which is one of the major concerns in the mind of the
vehicle owners.

.
 PURE FOR SURE

PURE FOR SURE - The Sign of a New Revolution

Bharat Petroleum recognises that one of the basic needs of the

customers is pure quality and correct quantity of fuels. Bharat
Petroleum is passionately committed to making this need a reality
at its Retail Outlets. As one of the major initiatives in this
direction, Bharat Petroleum has launched an 'Enhanced Fuel
Proposition' (EFP) programme - A nation-wide effort a dispensing
pure quality and correct quantity of fuel, and at the same time
delivering courteous, fast and efficient service.

The retail outlets covered under this program display the 'Pure for
Sure' sign - an outturned palm forming a circle with the thumb and
the first finger - also imprinted on the dispensing units and on the
back of the blue uniform sported by DSMs, and TUV's certificate
displayed at the outlet. At such Retail Outlets, Bharat Petroleum
guarantees that the correct quality and quantity are dispensed. In
order to be able to do so, strict quality control and tracking
measures have been put in place at every point from the Supply
Point (Depot) to the customer's fuel tank.

.
Special locks have been provided in tank lorries and
comprehensive sealing has been undertaken at the dispensing units.
Before certification, the Retail Outlets are subjected to stringent
tests by TUV SUDDEUTSCHLAND - INDIA, a renowned
international agency, to ensure that all parameters of the program
are complied with. Mystery audits and extensive inspections are
carried out at these Retail Outlets to ensure that they continue to
comply with the requirements of the EFP program.

EXPECTATIONS OF THE CUSTOMERS OUT OF THIS

PROGRAM:

Value for money from "Pure for Sure" outlets as these outlets
dispense right
Quantity of pure fuel.

Better mileage and lower maintenance expenses on their motor

vehicles.

Efficient fuelling and courteous service resulting in saving of time.

Reduced pollution due to the use of pure fuel.

During the last 3 years Bharat Petroleum has implemented a set of

Customer Service Standards, which has been well appreciated by
customers. The 'Pure for Sure' program is an even more focussed,

.
and intense effort towards ensuring Quality and Quantity,
courteous and quick service.

STATUS OF THE PROGRAM

Bharat Petroleum Dealers have responded voluntarily to join the

"Pure for Sure" program. This has made a joint initiative between
the Company and the dealers possible to provide courteous service,
assured Quality and Quantity and efficient fuelling at the retail
outlet.

This program is a continuous effort and involves systematic

certification and therefore, interested Dealers are able to join the
program only in phases.

This program is being launched in phases. The first phase of Retail

Outlets that have been certified recently covered the 4 Metros
Bangalore & Hyderabad, at 108 sites. Another 600-700 sites are to
follow, in 2 more phases in various cities. More customers across
wider geographical areas would therefore be in a position to access
retail outlets sporting the "Pure for Sure" logo easily.

.
 RESEARCH METHODOLOGY

Research Methodology always provides guidelines tools and

techniques for any study, research, training. Without research
methodology we can draft for any subject so before starting a study
we used a proper resource, which fulfill the requirement of any
research and training.

So it is essential that we should describe some tools and techniques

that helps me research period.

RESEARCH DESIGN :

The research design which has been used in the Project report is
descriptive researc design in particular.

.
This is rigid in nature and focuses attention on followings.

1. Formulating the objective of the study

2. Designing the method of data collection

3. Selecting the sample

4. Collecting the sample

5. Processing and analyzing the data

6. Reporting and findings

7. Suggestions and modification if any.

8. Conclusion

SAMPLE DESIGN :

Type of universe :
This is the first step in developing any sample design is to clearly
define the set of objects technically, called the universe, to be
studied. Hear, finite, universe has been used for the research
purpose.

.
SAMPLING UNIT :
A decision has to taken concerning a sampling unit before selecting a
number of sample. It may be geographical as well as individual. Here
Ghaziabad, Meeeut and Modinagar city has been taken as a
geographical and dealers / retailers as an individual unit.

SOURCE LIST :

It is also known has sampling frame from the sample is to be

drawn . No sampling frame was available there except dealers list,
we had generated an idea regarding of sample unit on the basis of
dealers list.
SIZE OF SAMPLE :
This referee to the number of items ( Outlets) to be selected from
the finite universe to constitute a sample size. The survey was
conducted of 30 outlets.
NATURE OF DATA :
In this project report the data is collected through primary source
DATA COLLECTION

Type of Data Method Adopted Mode of

collection Communication
Primary Questionnaire Personal Interview

.
 QUESTIONNAIRE
1. Which company’s product are you using?
BPCL 7
IBP 4
Indian Oil 9
Castrol 10

Castrol BPCL
34% 23%

IBP
13%
Indian Oil
30%

.
 2. How do you come to know about this company?
Through Advertisement 15
Through Dealer 10
Any Other 5

Any Other
17%

Through Advertisement
50%

Through Dealer
33%

.
 3. Have you got any sales promotion facility ?
Yes 19
No 11

No
37%

Yes
63%

.
 4. Which types of sales promotion facility have you got from
the company?
Sample 5
Purchase Discount 8
Occasional Gift 10
If any, other 7

If any, other Sample

23% 17%

Purchase Discount
Occasional Gift 27%
33%

.
 5. Which types of sale promotion facility have more
attraction?
Sample 3
Purchase Discount 10
Occasional Gifts 10
Replacement Facility 5
Others 2

Others
7%

Replacement Facility Sample

17% 10%
Purchase Discount
Occasional Gifts 33%
33%

.
 6. Is there any competition among the companies related to
sales promotion ?

Yes 25
No 5

NO
17%

Yes
83%

.
 7. What do you think about BPCL’s company product?
Excellent 2
Very Good 13
Good 7
Average 5
No Information 3

No Information Excellent
10% 7%

Average
17%
Very Good
Good 43%
23%

.
 8. Please specify which company has much better sales
promotion facility?
BPCl 5
IBP 10
Indian Oil 12
Others 3

Others BPCl
10% 17%

Indian Oil IBP

40% 33%

.
 9. Are you using product of BPCL?
Yes 11
No 19

Yes
37%

No
63%

.
 10. What criteria are you consider for using product of
BPCL company?
Price 8
Quality 12
Sales Promotion Facility 7
Any Other 3

Any Other
10%
Price
Sales Promotion Facility 27%
23%

Quality
40%

.
 11. Have you got sale promotion facility from BPCL?
Yes 10
No 20

Yes
33%

NO
67%

.
 FINDINGS
 The number of petroleum is available in the market of
various companies.

 The company doesn’t provide the replacement facility of

spoiled products to retailers / dealers.

 The company is not given any promotional incentive to the

dealers / retailers.

 There is unfrequent visit from the company representative

through the dealers/ retailers.

 The price of petroleum products so much high.

 The company has capture only 20% share in lubricants

market.

 Company distributors do all their business in frequently cash

only.

 Competitive information can be obtained.

 100% mail survey is not effective.

 This survey was relatively and expensive way to be obtained.

.
 SUGGESTION
 The should call a meting of dealers time to time.
 Company should go for replacement facility.
 Company should provide tour and traveling package.
 New avenues of advertising should be launched like glow
sign board etc.
 Company should offer free gifts or incentive to dealers and
retailers to increase their motivation level.
 New appointments should be done for increasing visiting at
market places.
 Prices should be kept low in comparison to competitors
products prices, so that company can earn more profit by
selling large volumes.
 IN present scenario, credit plays, and important roles in
business sales so it should do its dealing in credit also.
 Their should be sales promotion point scheme.
 Company should collect necessary information regarding
market position
 The companies products has a high quality and value product
of sophisticated nature for future to market, it should
concentrate on indigenous & export market.

.
 CONCLUSION

The project survey of sales promotion BPCL, that mostly

manufacturers Lubricants, petroleum products and refineries.

In our survey, we found that 20% customers of petroleum products

used BPCL’s products. Mostly users are satisfied but dealers are
not satisfied with the promotional policy of company.

Dealers / retailers complaints about its price sales promotion

facilities, distribution network, advertisement, and occasional gifts
packages.

We can suggest that if BPCL cares the above mention complaints

and other promotional policies; it can improve it market share and
dealers/customer satisfaction.

.
 Annexure

.
 QUESTIONNAIRE

Q. Which company’s product are you using?

a. BPCL
b. IBP
c. Indian Oil
d. Castrol

Q. How do you come to know about this company?

a. Through Advertisement
b. Through Dealer
c. Through any other sales per motion facility, please specify
----------------------------------------

Q. Have you got any sales promotion facility ?

a. Yes
b. No
Q. Which types of sales promotion facility have you got from
the company?
a. Sample
b. Purchase Discount

.
 c. Occasional Gift
d. If any, other please specify

Q. Which types of sale promotion facility have more attraction?

a. Sample
b. Purchase Discount
c. Occasional Gifts
d. Replacement Facility
e. If any other please specify ----------------------

Q. Is there any competition among the companies related to

sales promotion ?
a. Yes
b. No

Q. What do you think about BPCL’s company product?

a. Excellent
b. Very Good
c. Good
d. Average
e. No Information

.
 Q. Please specify which company has much better sales
promotion facility ?
a. BPCl
b. IBP
c. Indian Oil
d. Others
Q. Are you using product of BPCL?
a. Yes
b. No

Q. What criteria are you consider for using product of BPCL

company?
a. Price
b. Quality
c. Sales Promotion Facility
d. Any Other please specify ---------------------
Q. Have you got sale promotion facility from BPCL Company ?
a. Yes
b. No

.
Please give your suggestion about the sales promotion facilities.
___________________________________________________
___________________________________________________
___________________________________________________

Response Form
Name of firm ______________________________________
Address ___________________________________________
Tel Number ________________________________________

Date: Signature

.
 LIST OF RESPONDENTS NAME & ADDRESS

NAME OF FIRM ADDRESS DEALING PH. NUMBER

IN
Jai Bharat Enterprises Jawahar Chowk , Meerut BPCL 0121-53359
Shivam Oil Traders 227, Murti Complex, Kesarganj, BPCL 0121-526630
Auth. Dealer Meerut 9412205179
Auto Emporium 178 /2, Hanuman Chowk, Meerut Indian Oil 0121- 660832
Pal Auto Stores Hanuman Chowk, Meerut Castrol 0121-2660564
Bajaj & Co. Sadar Bazar, Meerut Castrol 0121-2660375
Bhawani Oil Co. Kesarganj, Meerut Indian Oil 0121-520188
Avon Oil Agency Opp. PNB. Modi Nagar Castrol 01232-47117
Auth. Dealer
Bawa Motor Gaylord Building, Modi Nagar IBP 01232-50071
Jai Shankar Oil Govind Pur, Modi Nagar Indian Oil 01232-500634
Company
Driwll Service Station G.T. Road, Shahdara, Delhi Castrol 011-22583113
Victory Service Station G.T. Road, Shahdara, Delhi Castrol 011-22580259
Dashmesh Oil Traders 35, OM Market, OM Nagar, BPCL 0120-2634504
Exclusive Lube Shoppe Sahibabad, Ghaziabad
K.B. Malhotra OM Market, Mohan Nagar, Castrol 0120-4636346
Auth. Dealer Ghaziabad.
Arvind Gupta Lohia Nagar, Ghaziabad. ELF 0120-2706188
Auth. Dealer
Japline Traders E/3, New Arya Nagar, Ghaziabad. BPCL 0120-2733929
U.P.

.
Mahalaxmi Oil 85, New Arya Nagar, Ghaziabad. Indian Oil 0120-2730654
Company
Aggarwal Traders 85, New Arya Nagar, Ghaziabad. Indian Oil 0120-2730754
Ambay Motors Shop No.1, Shatyam Enclave, Castrol 0120-2862057
Ghaziabad.
EssKay Enterprises 85, New Arya Nagar, Ghaziabad. Castrol 0120-2211401
Satyam Motors 237, Ambadkar Road, Ghaziabad. Indian Oil 9811259483
Shri Balaji Motor E/3, New Arya Nagar, Ghaziabad. BPCl 2851678
U.P.
Shivam Oil Company Bhatia Chowk, Ghaziabad. SHELL 0120-860120
Shakti Motor Parts 54, Model Town, Ghaziabad Indian Oil 0120-2861473
Chaudhary Service Near Lal Qua, Ghaziabad. Indian Oil 0120-2866212
Station 0120-2866211
G.K. Auto Mobiles Lohia Nagar, Ghaziabad. BPCL 0120-2036346
Saurabh Auto Mobile Shahadra, Delhi Castrol 011-2211378
Prashant Dubey C-19, Lohia Nagar, Ghaziabad Castrol 0120-2706188
Arihant Enterprises C-20, Lohia Nagar, Ghaziabad. IBP 0120-2721729
U.P.
Agarwal Automobile & A/187, Hapur Road, Ghaziabad. IBP 9811625049
Sandeep Oil Traders U.P. 0120- 2736994
Gupta Oil Company Hapur Road, Ghaziabad. IBP 0120-2736920

.
 BIBLIOGRAPHY

 Resource Methodology – C.R. Kothari

 Company Profile – [Link]

 Questionnaire

 Magazines & Newspaper