CORPORATE INTERNSHIP REPORT ON ROLE OF DISTRIBUTORS IN BPCL.
Submitted in Partial Fulfillment for the Award of the Diploma of Post Graduate Diploma in Management (Session 2010-12)
INSTITUTE OF MANAGEMENT STUDIES, NOIDA A UGC Recognized Institute A-8B, Plot C, Sector-62, Noida
SUBMITTED TO: COMPANYGUIDE: MR. ASLAM JAVED (SALES MANAGER) IMS FACULTY GUIDE: [Link] SINGH
SUBMITTED BY:SAURAV LAL PGD10071
PUNCH LINE
COOK FOOD SERVE LOVE
DECLARATION
I Mr. SAURAV LAL WITH ADMISSION NO.PGD10071 OF STREAM PGDM FOR YEAR 2010-12, HERE BY DECLARE THAT THIS PROJECT ROLES OF DISTRIBUTORS IN BPCLOF BHARAT PETROLEUM CORPORATION LIMITED(BPCL) TO BE AUTHENTICATE AND ORIGINAL IN ALL REPECT OF THE PROCESS CARRIED OUT IN THIS PROJECT,IF THIS PROJECT COULD BE SCRUTINIZED AND SCREENED OF COPING,I AM LIABLE FOR ANY DEMARCATION/VARIATION OF MARKS WHAT SO EVER MY GUIDE OF THIS PROJECT DEEMED FIT.
Signature of Student Countersigned Signature of Mentor
ACKNOWLEDGEMENT
It is my proud privilege to express my sincere regards and gratitude to BHARAT PETROLEUM CORPORATION LIMITED for providing this valuable opportunity to pursue my training at their place. Training at BHARAT PETROLEUM CORPORATION LIMITED is real implementation of knowledge & practical experience. I feel privileged to offer sincere thanks and deep sense of gratitude to [Link] SAXENA, Bharat Petroleum Corporation Limited, Ghaziabad (U.P) for expressing their confidence in me letting me work on a project of this magnitude and providing their support, help &encouragement in implementing this project. I am grateful for co-operation and valuable suggestion rendered by [Link] SAXENA, project guide and all staff member of Bharat Petroleum Corporation Limited. I would also like to convey my gratitude to my faculty guide [Link] SINGH (Associate Professor) who made me walk all the steps of this project, intricately and helped me in formulating the entire framework of this analytical research. Finally, a word of thanks to all my respondents who spared their valuable time from their busy itinerary in filling up the questionnaires and made the project complete. In the end, I also wish to pay regard to my friends who helped me & encouraged me time to time I regret any inadvertent omissions.
SAURAV LAL P GD10071 IM S, NOIDA
EXECUTIVE SUMMARY
TITLE OF THE PROJECT NAME OF THE COMPANY LIMITED. NAME OF THE INSTITUTE STUDIES,NOIDA NAME OF THE GUIDE PROJECT PERIOD
ROLES OF DISTRIBUTORS IN BPCL : BHARAT PETROLEUM CORPORATION : INSTITUTE OF MANAGEMENT
[Link] SINGH (FACULTY GUIDE) [Link] ASLAM (COMPANY GUIDE).
: 1/6/2011 to 1/8/2011
METHODOLOGY: The study was qualitative in nature and based on customer opinion survey. DATA SOURCE: PRIMARY DATA SOURCE RESEARCH APPROACH: DESCRIPTIVE RESEARCH INSTRUMENT: Questionnaires were being prepared for commercial LPG customer .The mode of collecting data was basically interviewed administered and face to face conversation for the customer SAMPLING PLAN: The main target area for the purpose of collecting the sample for the study was NOIDA and GHAZIABAD
INDEX [Link] 1 TITLE OF PAGES INTRODUCTION
PAGE NO.
ABOUT BPCL PRODUCTS OF BPCL COMPANY STRUCTURE CORPORATE STRATEGY FIRM OPERATION CODE OF CONDUCT HISTORY VISION COMPETITORS AGENCIES OF BPCL SWOT OF BPCL
7-9 10-11 12-13 14-15 16-18 19-20 21 22 23 24 25
OBJECTIVE/LIMITATION/SCOPE OF STUDY
26
3 4
INTRODUCTION TO THE TOPIC RESEARCH METHODOLOGY METHODOLOGY AND APPROACH SAMPLING PLAN DATA ANALYSIS FINDING CONCLUSION AND SUGGESSTION QUESTIONNAIRE BIBLIOGRAPHY
27-29
30-32 33 34-43 44-45 46-48 49-50 51
COMPANY PROFILE
Although it carries the ancient Sanskrit name for India (Bharat), Bharat Petroleum Corporation Limited (BPCL) is a modern refining and distribution company. It vies with Hindustan Petroleum for the #2 slot behind Indian Oil. The company refineries -- in Mumbai, Kochi, and Numaligarh (69%-owned) -- collectively process about 22.2 million metric tons of crude oil per year. BPCL sells engine oils and gasolines, liquefied petroleum gas (LPG), and kerosene. It has more than 8,400 gas stations, a national network of kerosene dealers, and more than 2,110 LPG distributors. The Indian government owns 55% of the firm, although it plans to eventually sell this stake as part of industry wide deregulation.
Bharatgas from Bharat Petroleum has dominated the LP Gas market in India for over three decades. Today over 25 million homes in India, wake up each morning to enjoy the cup that cheers prepared on Bharatgas. Similarly, hundreds of commercial and industrial establishments start their day, confident and secure, having entrusted their LP Gas needs to Bharat Petroleum. A pioneer in more ways than one, Bharatgas has brought many innovative offerings to the customers. To name a few: Easy access to customers through various modes including online access Home delivery of cylinders Value added services to customers by venturing into allied business to meet consumers household needs LP Gas supplies through pipeline to mega residential complexes An innovative solution to reach LP Gas supplies to rural and remote areas through the Rural Marketing Vehicle Revolutionising the metal cutting & brazing industry with the new product Bharat Metal Cutting Gas. Bharatgas where innovation is a way of life!!!
ABOUT US
TYPE Traded INDUSTRY FOUNDED HEADQUATER
State owned enterprise public Bse : 500547,NSE:bpcl OIL AND GAS INDUSTRY 1976 MUMBAI (MAHARASTRA) INDIA
KEY PEOPLE
R.K SINGH (CHAIRMAN& MD) PETROL, DISEL FUEL, PETRO RS-153,300.03 CRORE (U$34.19 24068.05 CRORE (U$907.18 $10.365 BILLION $2.724 BILLION 13974
PRODUCT CHEMCIAL, LUBRICANT, GAS REVENUE BILLION) OPERATING INCOME MILLION) TOTAL ASSET TOTAL EQUITY EMPLOYEE -
MANAGEMENT TEAM
Name
R K Singh S K Joshi Harish M Jagtiani
Designation
Chairman and Managing director Director (Finance) Director
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B K Datta S K Barun Alkesh Kumar Sharma K K Gupta I P S Anand S Mohan N Venkiteswaran P. K. Sinha
Director Director Director Director (Marketing) Director Director (Human Resources) Director Director
MAJOR PRODUCTS AND SERVICES: Bharat Petroleum Corporation Limited (BPCL) refines, stores, markets and distributes petroleum products. The companys key products and services include the following
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PRODUCTS:
I. Petrol II. Diesel III. LPG IV. Gasoline V. Kerosene VI. Lubricants VII. Aviation fuel VIII. Fuels and solvents
SERVICES: I. II. III. IV. V. VI. VII. VIII. IX. Convenience stores ATMs Car washes Free air and water Lubricant top-ups Energy audits E-banking services Consultancy and technical services Online ordering
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COMPANY STRUCTURE
The older structure was functionally organized. There were mainly four functions (refineries, marketing, finance and personnel) each headed by an executive director reporting to the (CMD). Other support departments like corporate affairs, legal, audit, vigilance, coordination and company secretary were directly under the CMD. See Appendix 1 for the organizational chart. The Director refinery was in charge of refinery, corporate planning, JV refineries and special projects. Other than corporate finance and marketing finance EDP was also under the Director finance. In marketing, there were different departments for
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retail, industry, LPG, lubricants and aviation segments. Corporate communication was also under Director marketing. The whole of India was divided into four regions and further into 22 divisions. Each region was headed by a Regional Manager who was in charge of all activities within the region and reported to the Director marketing. Each region had a manager in charge of each of regional personnel, regional engineering, regional industrial customers, regional retail, and regional finance. Regional LPG was under regional industrial customers. The division was the responsibility of the Divisional Manager reporting to the Regional Manager. He had a manager each for sales, operations and engineering. Each of these was responsible for sales, depots and engineering respectively for all the customer segments. Across the marketing function, except for the corporate departments (LPG, industrial customer, etc.) specifically looking after a customer segment, every individual and role is focused on multiple customer segments. For example any strategy addressing the industrial customers originates from the Corporate Department (Industrial Customer), goes via the Director Marketing, Regional Manager, Divisional Manager to the Sales Officer. All of them are responsible for multiple customer segments like retail, LPG, industrial, etc and deal with different classes of customers. Hence there was very low customer awareness in terms of the unique needs of the different customer segments, with no single individual at the operational level having clarity on any single customer segment. Moreover, the marketing strategy was formulated by people who were far from the customer with very low understanding of the customer they were targeting. The implementers were responsible for diverse customers with a low understanding of the logic of these strategies meant for each customer segment. Thus the old structure had created a bottleneck between the strategy formulators and implementers in terms of the regional structure, and between the field staff and the corporate offices and refinery. Activities of a business process are spread out across different functions and levels of hierarchy, engaging many individuals. There was a long chain of non value adding linkages between any two activities targeting a business / customer. For example, when an industrial customer gives a special order of lubes to the sales officer, the corporate lubes purchases the base oil, plant blends it, S&D packs it and the sales officer sells it. The Sales Officer would communicate the order to the Divisional Manager, who passes it on to the Regional Manager. Then the order would be routed to the Corporate Lubes for processing. Everyone involved in the activities of this process belong to different functions and hierarchy levels. This long chain of
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communication had led to a lack of customer orientation, low awareness of customer needs and expectations and slowreponse.
CORPORATE STRATEGY NEW.
BHARAT PETROLEUM-THE NEW SBUFORM STRUCTURE
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The new structure was focused on the business processes and the customer. 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. The major change is the introduction of the territories covering a smaller geographical area and focusing on specific customer segments. In retail SBU the new structure had 66 territories reporting to the four regional offices, where as in the earlier structure there were only 22 divisions which catered to all segments. In other SBUs the regional office was removed and territories were designed to directly report to the SBU heads. Each territory team leader was responsible for sales in the territory only for a specific product. The territory structure was designed to enable the field staff to focus on specific customer segments. Authority was also delegated down the hierarchy and decision making pushed to the lowest possible levels. Decisions earlier taken at the regional level were taken now at the territory level. Further authority was delegated to the role and not the hierarchy level. Administrative offices have been moved to supply locations that consist of 125 terminals for main fuels and 35 LPG bottling ones. In LPG SBU head office there are only nine personnel and across the territories even managers at senior positions have been forced to get business. The new design incorporated recalibration of roles and responsibilities and redeployment of more than two thousand people (around one fifth of total employee strength) across the organization. It created new roles at the front effectively using redundant manpower to increase customer interface and interaction. SOME SALIENT FEATURES OF THE NEW STRUCTURE ARE:
Highly empowered work force Decentralized decision making
De-linking of authority from hierarchical levels Orientation towards internal and external customers Regular market research and customer surveys Conscious brand building efforts
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AUTO L.P.G.-THE INTRODUCTION OF LPG AS AUTO FUEL.
With the menace of rising vehicular pollution, use of LPG as an auto fuel was proposed as a pollution abatement measure. LPG being a clean environmentally friendly fuel, will reduce air pollution to a great extent if the vehicles are fuelled with LPG. Bharat Petroleum was the first Oil Company to take the initiative for setting up of an Auto LPG Dispensing Station (ALDS) and run vehicles on LPG as a pilot project in Delhi in October [Link] today have over 70 Auto LPG Dispensing Stations (ALDS) in various cities (including metros) in the country.
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FIRM OPERATION
The core business operations of Bharat Petroleum are Petroleum Refining. It belongs to the oil & gas operations industry. Although it carries the ancient Sanskrit name for India (Bharat), Bharat Petroleum Corporation Limited (BPCL) is a modern refining and distribution company. It vies with Hindustan Petroleum for the #2 slot behind Indian Oil. The company processes petroleum and petroleum products; its refinery in Mumbai processes 260,000 barrels of crude per day. It also controls refineries in Kochi and Numaligarh. BPCL sells engine oils and gasolines, liquefied petroleum gas (LPG), and kerosene. It has more than 6,550 gas stations, more than 1,000 kerosene dealers, and a national network of LPG distributors. The Indian government owns 55% of the firm, although it plans to sell this stake as part of industry wide deregulation. The various other operational functions of BPCL are as: APRON FUEL MANAGEMENT SYSTEM & E-BIZ SOLUTION. BPCL is the first and only oil company in India to implement Apron Fuel Management System which is a powerful and comprehensive system that combines the vehicle (Point of Sale) and Office support functions into a single seamless interface reducing human intervention and enhancing accuracy. BPCL also provides E-Biz solution to their customers. OVERSEAS PROJECTS. BPCL Aviation SBU has entered into a contract with Larsen & Tourbo-ECC Division and is rendering its expertise to M/s L & T - ECC Division for successful completion of New Aviation Fuel Depot at Kuwait for Kuwait Aviation Fuelling Company (KAFCO).The scope of service includes Technical Consultancy by Aviation/Engineering & Projects specialists having domain expertise, Preparation of Pre- Commissioning and Commissioning procedures. BPCL is assisting in performing PreCommissioning and Commissioning of entire facility at KAFCO project, training of Owner's personnel in India (Class room training) and on job training at KAFCO site, Kuwait, participation in HAZOP/SIL/ALARP study and assistance to evaluate remedy on the findings as advised by HAZOP committee chairman (i.e. recommendations by 3rd party from that study), assistance in Procurement related activities and preparations of Operations. OVERSEAS PROJECT BPCL Aviation SBU has entered into a contract with Larsen & Tourbo-ECC Division and is rendering its expertise to M/s L & T - ECC Division for successful completion of New Aviation Fuel Depot at Kuwait for Kuwait Aviation Fuelling Company (KAFCO).The scope of service includes Technical Consultancy by Aviation/Engineering & Projects specialists having domain expertise, Preparation of Pre- Commissioning
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and Commissioning procedures. BPCL is assisting in performing PreCommissioning and Commissioning of entire facility at KAFCO project, training of Owner's personnel in India (Class room training) and on job training at KAFCO site, Kuwait, participation in HAZOP/SIL/ALARP study and assistance to evaluate remedy on the findings as advised by HAZOP committee chairman (i.e. recommendations by 3rd party from that study), assistance in Procurement related activities and preparations of Operations& Maintenance and QC Manual HYDRANT OWNERS & OPERATOR AND EQUITY ATCIAL.
BPCL is the first oil company to participate in Greenfield airport in India. BPCL hold equity stake in Cochin International Airport Ltd. which is the first airport built under private-public participation and have state of art hydrant refuelling system at the airport built by them
RESEARCH AND DEVELOPMENT
Over the years, Bharat Petroleum continues to meet the challenges of the rapidly changing environment, leading to changes in the marketing of products and services. In all these changes, only one factor has remained constant and has been the source of Bharat Petroleum's strength and inspiration for any future innovations - Bharat Petroleum's People. The feeling of ownership has facilitated all employees to understand the complexity of the market and needs of the customers, and respond to these needs with innovative initiatives and offerings. Research and development Centre always on the forefront to innovate, Bharat Petroleum is making distinct efforts towards Research and Development (R and D). Besides the R and D facilities at the Refinery and the Product Application Development Centre in Sewree in Mumbai, a new state-of-the-art RandD Centre is being set up near Delhi. The R and D Centre is being organized around three core groups Process and 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
BHARAT PETROLEUM- THE TECHNOLOGICAL EDGE.
Bharat Petroleum has always been on the forefront of harnessing technology initiatives for BPCL has been on forefront in harnessing technology. Maximising efficiency and achieving greater customer satisfaction. Bharat Petroleum is the first Public Sector Oil Company to implement Enterprise wide Resource Planning (ERP) solutions - SAP. The implementation project known as ENTRANS (Enterprise wide 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
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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 enhance
CODE OF CONDUCT
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Introduction This Code of Ethic ('Code') shall be called 'The Code of Conduct for Board Members and Senior Management Personnel' of Bharat Petroleum Corporation Limited ('the Company'). The purpose of the 'Code' is to reflect business practices and principles of behavior of the Board Members and Senior Management Personnel in affirming their commitment to Good Governance in line with the Company's Philosophy on Corporate Governance. This 'Code' has been framed specifically in compliance with the provisions of Clause 49 of the Listing Agreement with Stock Exchanges. However, the Functional Directors and Senior Management Personnel will continue to be governed by the Bharat Petroleum Corporation Management Staff Conduct, Discipline and Appeal Rules, 1976 ('CDA Rules') which govern the conduct of all employees of the Company. The 'Code' shall come into force with effect from 1st day of January 2006. Definitions and Interpretations In this Code, unless repugnant to the meaning or context thereof, the following expressions shall have the meaning given to them as under: 'Board Members' shall mean the members on the Board of Directors of the Company. 'Whole-time Director' shall mean the Board members who are in Wholetime employment of the Company including the C and MD. 'Part-time Director' shall mean the Board members who are not Wholetime Directors and include Part-time (Official) Directors and Part-time (Non-Official) Directors of the Company. 'Relative'shall mean a 'relative' as defined under Section 2(41) and Section 6 read with Schedule IA of the Companies Act, 1956. 'Senior Management Personnel' shall mean and include members of Management Council of the Company (excluding Whole-time Directors) In this Code words importing masculine shall include feminine and words importing singular shall include the plural and vice versa. Applicability This Code shall be applicable to the following persons Whole-time Directors Part-time Directors Senior Management Personnel Key Requirements The Board Members and Senior Management Personnel shall function within the authority conferred upon them by the Company, keeping the best interest of the Company in view and they shall act with utmost care, skill, diligence and integrity shall act in utmost good faith and fulfill the fiduciary obligations without allowing their independence of judgment to be compromised shall not be involved in taking any decision on a subject matter in which conflict of personal interest arises or which in their opinion is likely to arise shall avoid any dealing with a contractor, supplier or service provider that compromises the ability to transact business on a professional,
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impartial and competitive basis or influence decision to be made on behalf of the Company shall not exploit for his own personal gain, opportunities that are discovered through use of corporate property, information or position, unless the opportunity is disclosed fully in writing to the Board of Directors and the Board declines to pursue such opportunity. Compliances The Board Members and Senior Management Personnel shall comply with all applicable laws, rules and regulations. Confidentiality Of Information Any information concerning the Companys business, its customers, suppliers, etc, and to which the Board Members and Senior Management Personnel have access or possesses such information, must be considered confidential and held in confidence. No Board Members or Senior Management Personnel shall provide any information either formally or informally, to the press or any other public media, except as required in the performance of the regular corporate duties. However, Board Members or Senior Management Personnel shall be free to disclose such information, which is Part of the public domain at the time of disclosure. Authorized or required to be disclosed pursuant to a decision of the Board. Required to be disclosed in accordance with applicable laws, rules, regulations or guidelines. Protection Of Assets The Board Members and Senior Management Personnel shall protect the Companys assets including physical assets, information and intellectual rights and shall not use the same for personal gain. Enforcement Of Code Each Board Member and Senior Management Personnel shall be accountable for full compliance of this Code
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HISTORY
Bharat Petroleum Corporation (BPCL) was established in 1952 and has equity base of Rs.361.54 crore. It is one of the leading company in the petroleum sector in India. BPCL is into exploration, production and retailing of petroleum and petrol related products. The retail business unit of BPCL is into marketing of petrol, diesel and kerosene .It has network of 6553 retail outlets and 1007 kerosene dealers and is partnered with big food chain companies like McDonalds, Pizza Hut, Caf Coffee Day, Subway, Nirulas , etc. It also offers full range of automotive engine, gear oils, transmission oils, specialty oils and greases .It caters to around 8000 industrial customers across [Link] also provide Aviation Turbine fuel (ATF) to its airline customers. Its LPG business unit Bharat gas has presence in 25 million households with 2137 LPG distributors spread across the country. BPCL has two refineries at Mumbai and Kochi with a capacity of 12 Million Metric Tones Per Annum (MMTPA) and 7.5 MMTPA for refining crude oil. Its subsidiary at Numaligarh has capacity of 3 MMTPA.
Milestones
BPCL won Petro Fed Oil & Gas Marketing Company of the Year award for the year 2006-07. This Award fist given as recognition for increase in volumes of products marketed. BPCL won the Excellent Water Efficient Unit Award -Beyond the Fence at the National Awards for Excellence in Water Management 2007 BPCL was ranked 287th position during 2007-08 in Fortune Global 500 list. BPCL's Mumbai Refinery won the Smart Workplace Award 2008 under the industrial manufacturing category given by Economic Times in association with IT majors, Acer and Intel. Outlook BPCL is one of the supplier of naphtha in Andhra Pradesh has committed to AP Transco to supply sufficient quantities of naphtha for operation of its four power station. BPCL has launched a GPS technology for tracking vehicles for its 5,200 tanker truck
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VISION
We are a leading energy company with global presence through sustained aggressive growth and high profitability We are the first choice of customers, always We exploit profitability growth opportunity outside energy We are the most environment friendly company We are a great organization to work for We are a learning organization We are a model corporate entity with social responsibility
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COMPETETIORS
RELIANCE INDUSTRIES INDIAN OIL CORPORATION RELIANCE PETROLEUM HPCL ESSAR OIL MRPL CHENNAI PETROLEUM CORPORATION
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VARIOUS AGENCIES FOR LPG IN NOIDA AND GHAZIABAD In Noida S.N O 1 2 3 4 5 6 AGENCY NAME
Chitra Gas Service Jai Harsh Komal Gas Krishna Bharat Gas Mangalam Bharat Gas Mehul Bharat Gas
ADDRESS
Shop No.5 ,A Block ,Sec 55 Shop No.12 ,Block H-362 Shop No.G-13,Sec 20 Shop No.4 Block B-99a 33a ,[Link] Flat,Geja Sector93 Gulab Singh Market,Vill [Link] 5
In Ghaziabad S.N O 1 2 3 4 5 6 AGENCY NAME
Kamla Gas Service Prakash Bharat Gas Prem Gas Agency Satyam Service Bharat
ADDRESS
Nehru Nagar2,Green Verge 23,Navin Park,Shyam Park [Link] R-10/12,13,Raj Nagar,Gda Market Gas Main Road,Beta Hazipur 1118,Lal Kuan,[Link] A-6-H.I.G Duplex,Brij Vihar
Shiv Bharat Gas Vishnu Jyoti Gas Service
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SWOT ANALYSIS OF BPCL
SWOT Analysis: -
STRENGTH 1. Latest technology use in company. 2. RGI develop firstly because there environment positive & suitable to growth. 3. Biggest PT & CED line. 4. Use the Kaizen policy for the problem solution. WEAKNESS 1. No strong management in company. 2. Difficulty in exporting some raw material. OPPORTUNITIES 1. Opportunities invariably bring with company competition in every business and industry. And the recent years have seen influx of a large number of players with the result that competition is increasing in the automobile parts AND LPG industries. 2. To increase the product rang 3. To achieve the zero customer complain 4. To get & achieve international standards . THREATS: 1. Competition from other company they are also created the competition an Indian presence. The entry of new players in the business has made the automotive sector much more competitive affecting the pressures on margins. 2. A major threat lies in the escalation of raw material prices. Such price hikes are likely to put pressure on prices and could affect margin or
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demand. 3. Changes in government policy. 4. Entry of big/ large size companies. Company plans to counter these threats by a stronger focus on reducing costs and
OBJECTIVE AND SCOPE OF THE STUDY The objective of the study for industries is to find out
The relevance of LPG used in accordance with the product that is being manufactured in respective industry. Consumption of LPG in industries based on preference priority and individuality. To find out the requirements of LPG in sponge iron steel. Ancillary industries and shops. Bazaar potential assessment of LPG in NOIDA and GHAZIABAD.
The scope of the study
THE SURVEY HAS PROVIDED THE COMPANY WITH LPG RELATED INFORMATIONOF INDUSTRIES AND OTHER BUSINESS CONTACT WHO MIGHT BE POTENTIAL CUSTOMER OF BHARAT PETROLEUM CORPORATION LIMITED. THE STUDY ALSO COVER ANALYSIS OF INDUSTRIES REQUIREMENT AND CONSUMPTION OF LPGIN INDUSTRIES AS WELL AS AWARENESS, PERCEPTION AND CONSUMPTION OF LPG BY CONSUMER BY COMMON USER THROUGH AGENCY, RETAILER. THE STUDY COVERS OPPOURTUNITY ANALYSIS OF LPF OF BHARAT PETROLEUM CORPORATION LIMITED. THE STUDY PROVIDED NO. OF CUSTOMER OF EACH AGENCY AND AS WELL AS DEMAND OF THE CUSTOMER IN EACH AGENCY.
LIMITATION OF THE STUDY
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Lack of interest and enthusiastic ,response may have allowed bias in this report in form of non-responsive error. Correctness of this report is restricted and limit by the degree of authencity of data collected and sincerity and honesty of respondent. Area of study is restricted to Noida and Ghaziabad which is a major limitation .the national scenario may be totally different from the result of the above mentioned area.
INTRODUCTION TO THE TOPIC ROLES OF DISTRIBUTORS
SERVICES OF BPCL HOME DELIVERY OF GAS ONLINE BOOKING OF GAS AFTER 15 DAYS QUALITY FOR SURE DELIVERY OF THE RIGHT QUANTITY IS ENSURED BY COMPREHENSIVE SEALING AND CALIBRATION OF THE DISPENSING UNITS WHICH MAKES METER TAMPERING IMPOSSIBLE.
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RESEARCH METHODOLOGY METHODOLOGY and APPROACH.
The study was qualitative in nature based on industrial and retailer consumption and stock keeping units decision respectively. Field research was carried out for the survey of the commercial customer. The study was EXPLORATORY in nature.
DATA SOURCE Primary data source as new facts and figures are
Being collected from the project.
PRIMARY DATA Primary data is the data which is collected for the first time The primary data is the best possible source of information to a research worker where he can design and carry out his studied according to the problem before him .the only thing is that he should be careful about the collection of data, its authencity, its source and allied matters as well as he should be competent to draw inference from the primary data TYPES OF PRIMARY DATA
The marketing researcher may collect the data which may be according to the characteristics of his customer, attitude, liking and disliking, opinion, beliefs, awareness etc. A. DEMOGRAPHIC AND SOCIO ECONOMIC CHARACTERSTICS Marketing people mostly concentrate on research related to demographic and socio economic characteristics of consumer .it may me about the income ,occupation ,sex ,social class, caste system, eating habit(veg non veg)[Link] are essential features out of which lot of interference is drawn for our marketing activities B. AWARENESS AND KNOWLEDGE
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Company may collect primary data to know awareness about their product and services. it help in deciding advertising programmes, in knowing consumer liking and disliking and his behavior about competitors product. In his research work information or data is collected either Simply asking the question Giving some hint to the customer Recognition
A. INTENTION Primary data may be carried out to know the intention of the consumer and his planned future behavior. Intention may be to any probable intention to buy, undecided buyer or indefinite buyer or indefinite intention of the buyer. B. MOTIVATION In this research the main object to find a want, need, desire, an urge, a wish, a desire or any inner stage of mind C. BEHAVIOUR Primary research may relate to behavior of the customer and behavior of the customer and behavior can be checked can be checked What will you buy Where and when u buy In what situation will you buy Who will you buy
TOOLS USED IN COLLECTING PRIMARY DATA There are various method of collecting primary data. They may be classified as structured questionnaire and unstructured questionnaire STRUCTURED QUESTIONAIRE
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The researcher prepare questionnaire where the questionnaire are presented with exactly same wording and in same order to all the respondent. The object is to collect standard information UNSTRUCTURED QUESTIONAIRE In this method the research worker tries to find out response from the person concerned by having free talk
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CONCLUSION Primary data is the most important aspect of research for many marketing companies, as the behavior of the customer changes ,new product as coming, income level changes in such a atmosphere ,only primary data can help an organization to depend upon for its future decision making
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SAMPLING PLAN.
The main target area for the purpose of collecting the sample for the study was NOIDA and GHAZIABAD where the main target was the customer of commercial cylinder (existing and potential). SAMPLE SIZE During my study I visited more than 500 customers of NOIDA and GHAZIABAD.
RESEARCH INSTRUMENT.
Separate questionnaires were being prepared both for where questionnaire consisted OPEN-ENDED, CLOSE-ENDED, CHECKLISTS and STRAIGHT-FORWARDTYPE QUESTIONS. The mode of collecting the data was basically interview-administered and face to face conversations.
DATA ANALYSIS
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Various step involve in data analysis 1) INTRODUCTION Market research research require proper analysis of data which is collected either primary source or secondary source .the objective now before the researcher is to have its proper analysis than only the researcher work can be called authenticated 2) ISSUES At the times of analysis the researcher must be clear in his mind about the problem or issue involve related to the research work 3) PROCESS The researcher has to decide what process he will follow for his research work. it is also called technique of data analysis, which is carried out with the assistance of tabulation of data 4) TABULATION The collected data can be analysis by way of tabulation which depends upon type of activities and the whole objective is combining the existing information and extracting meaning from them. Therefore when be carry out analysis, the answer should be received that what is the message given by each group of people, what are the raw effect and how the data is influenced by the behavior. Therefore the collected data has to be interpreted .interpretation is a process which relates various bits of existing information and new interpretation. The two activities i.e. analysis of data and its interpretation are closely related to one another .if one is not carried out seriously or properly , a success of other is seriously affected .Therefore ,the two activities must go hand in hand and both should be carried out with a great care and in a coordinated manner. THE TABULATION ANALYSIS TECHNIQUE ARE 1) Simple Tabulation Where the no. of activities are small, simple tabulation system is adopted 2) Cross Tabulation The process of cross tabulation involve placing the collected into tabular form, so that there true meaning is extracted. It is the most frequent method
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3) Cross Tabulation And Starting Point In the cross tabulation, the starting point is to have unidimensional data and separate it into two or more categories ,the break down is down on the basis of objective
Selecting The Factors For Cross Tabulation The success of cross tabulation depends the researcher ability to select factors crucial to relationship and then construct the gross tabulation format. The following steps are involved in cross tabulation Extracting the meaning from cross tabulation
Sequential impact in the sequential analysis we try to analysis what are sequential impact on the whole study Simultaneous impact It is where finding of actual relationship is analysis DRAWBACKS OF CROSS TABULATION There are two main limitation of cross tabulation If a large no. of factors are to be considered for analysis from a large set of sample To ensure that all the factors have been included or considered is vary difficult task DATA BASICALLY ANALYSIS ON THE BASIS OF MONTHLY CONSUMPTION AND COMAPARING IT BY IS23 REPORT PROVIDED BY BPCL.
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DATA WHICH WAS ANALYSIS WAS?
Q.1 DO YOU USING LPG OF BPCL?
INTERPRETAION
[Link] IS THE TYPE OF COMPANY?
TYPE OF COMPANY MANUFACTURIN G TRADING RESTAURENT OTHER
NO. 75 50 150 25
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INTERPRETATION OUT OF 300 CUSTOMER 5O% ARE RESTAURENT,16.6% ARE TRADING,25% ARE MANUFACTURING,8.4% ARE OTHER
Q3. HOU MUCH IS THE MONTHLY CONSUMPTION OF CYLINDER
COSUMPTION 1 TO 5 5 TO 10 10 TO 15 MORE THAN 15
NO. OF CUSTOMER 120 60 45 75
INTERPRETATION OUT OF 300 CUSTOMERS 40% HAS 1 TO 5 CONNECTIONS, 20% HAS 5 TO 10 CONNECTIONS, 15% HAS 10 TO 15 CONNECTIONS,
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Q4 HOW MANY CONNECTION DO YOU HAVE OF LPG?
NO. OF CONNECTION 1 2 TO 4 4 TO 6 MORE THAN 6 NO. OF CUSTOMER 60 90 60 90
INTERPRETATION OUT OF 300 CUSTOMER 20% HAS 1 CONNECTION,30% HAS 2 TO 4 CONNECTION,20% HAS 4 TO6 CONNECTION,30% HAS MORE THAN 6 CONNECTION
[Link] IN WHICH YOU USE LPG? PROCESS COOKING HEATING WELDING OTHER NO. OF CUSTOMER 165 75 24 36
OUT 300 OF CUSTOMER 38
55% CUSTOMER ARE USING LPG IN COOKING,25% CUSTOMER ARE USING IN HEATING,8% CUSTOMER ARE USING IN WELDING,12% CUSTOMER ARE USING IN OTHER
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Q6 WHER ARE YOU PRESNTLY SOURCINGYOUR LPG REQUIREMENT FROM?
SOURCING COMPANY AGENCY OTHER
NO. OF CUSTOMER 15 210 75
OUT OF 300 CUSTOMERS 5% SOURCING FROM COMPANY, 70% SOURCING FROM AGENCY, 25% SOURCING FROM OTHER
Q7 ARE YOU SATISFY WITH THE SERVICE? SERVICE SATISFY NOT SATISFY CANT SAY NO. OF CUSTOMER 150 120 30
OUT OF 300 CUSTOMER
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50% CUSTOMER ARE SATISFY WITH SERVICE,40% ARE NOT SATISFY WITH SERVICE,10% CANT SAY
Q8 WHAT IS IMPORTANT PARATER YOU LOOK WHILE PURCAHASING LPG? PARAMETER PRICE AGENCY SERVICE OTHER NO. OF CUSTOMER 90 195 15
PARAMETER THAT A CUSTOMER LOOK WHILE PURCHASING LPG OUT OF 300 CUSTOMERS 30% CUSTOMER CONSIDER PRICE, 65% CUSTOMER CONSIDER AGENCY SERVICE,5% CONSIDER OTHER SERVICE
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FINDING
The service provide by BPCL is not satisfactory because of which many of the consumer is either shifted to pipeline connection (indane) or taken the other company connection Complain from consumer was 1) NON AVAILABILITY OF NEW GAS CONNECTION When a customer visit to bpcl gas agency for new gas connection, agency have connection booking open, but simply refused that by giving accuse that consumer residence is not under their area ,he should approach to agency which is near by to customer residence. This is really frustrating and giving encouragement to black marketing and dubious LPG connection 2) GAS AGENCY IS NOT PICKING UP PHONE FOR BOOKING GAS Gas agencies are not cooperative with the consumer. Consumer book the cylinder online but not getting cylinder after due date &cylinder remain undelivered .when customer try to contact the agency by calling on the number provided, the number either ring constantly or no body pick the phone. This problem is getting worse day by day 3) GET GAS CONNECTION WITH GAS STOVE For having the new gas connection, they have to purchase the gas stove from agency along with the gas cylinder .agency want to sell the product by hook or crook. gas stove provided by agency use to of inferior quality. What customer will do of such stove? Which is to risky .it can burst at any time
4) EXCUSES MADE FOR NON DELIVERY OF CYLINDER When customer call in case of non delivery of gas. Agency made excuses like Cylinder is dispatched from here Delivery boy will come in morning/afternoon/evening
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Cylinder will be delivered tomorrow or within two days Cylinder are in shortage ,it may take another 6 days for delivery
1) AGENCY IS CHARGING UNNECESSARY MONEY FROM CONSUMER In order to have connection the customer has to buy stove which is of 550 but they charge 1525,lighter of 55 charge [Link] is unfair on the part of consumer. 2) CYLINDER FILL WITH WATER Many a times agency delivers cylinder which is half fill with water ,when consumer make complain they defend themselves by saying that they themselves not making cylinder, it is coming from company and not their fault and can not do anything. WITH SUCH SERVICE FIRM CAN NOT RETAIN THEIR CUSTOMER ONE DAY THEY WILL SHIFT TO OTHER FIRM WHICH IS PROVIDING GOOD SERVICE TO THEM
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CONCLUSION Although price play a important role in deciding the demand of a product but the customer also a major indicator of a demand of a product. Customer service can be in form of home delivery, after sale service,warranty,guarantee [Link] providing product is not only job of the firm they have to look after customer satisfaction. Customer and distributors satisfaction plays a vital role in the success of the firm. the growth and survival of a firm is depend mostly on the customer satisfaction when consumer have the option. if customer is not satisfy with the services one day he will shift to other company or other substitute.
RECOMMENDATION BPCL should concentrate more on customer satisfaction. Customer satisfaction can be achieved by following way:
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QUESTIONAIRE
NAME OF THE CUSTOMER: ADDRESS...... CONTACT NUMBER PERSONS MET: 1. NAME
DESIGNATION..
1) DO YOU USING LPG OF BPCL? YES NO If No please Specify . 1) WHAT 1) HOW 1) HOW IS THE TYPE OF COMPANY? MANUFACTURING TRADING RESTAURENT OTHER
MUCH IS THE MONTHLY CONSUMPTION OF CYLINDER? 1-5 5 -10 10 -15 MORE THAN 15 SPECIFY MANY CONNECTIONS DO YOU HAVE OF LPG? 1 2-4 4-6 MORE THAN 6 SPECIFY
1) PROCESS IN WHICH YOU USE LPG? COOKING HEATING WELDING OTHER THAN SPECIF 1) WHERE ARE YOU PRESENTLY SOURCING YOUR LPG REQUIREMENT FROM? COMPANY AGENCY OTHER 1) ARE SATISFY WITH THE SEVICE? YES
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1) WHAT
NO CANT SAY IS IMPORTANT PARAMETER YO LOOK WHILE PURCHASING LPG? PRICE AGENCY SERVICE OTHER
1) WHAT KIND OF SALE SERVICE DO YOUEXPECT FROM AGENCY
2) RECOMMENDATION /SUGGESSTION FOR BPCL?
BIBLIOGRAPHY
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[Link] .COM [Link] [Link]/WHEELS BOOKS MARKETING MANAGEMENT-PHILIPP KOTLER MARKETING RESEARCH INDUSTRIAL GUIDE -
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