iocl
TRANSCRIPT
MARKET ANALYSIS OF XTRAPREMIUM PETROL & XTRAMILE DIESEL WITH OTHER BRANDS
ANUPAM DASMBA 2nd YEAR,
ROLL N0- 09/MBA/61Session: - 2008-2010
Email Id: - [email protected]
Fortune 500 Companies | Indian Oil Corporation Ltd.
2
Indian Oil Corporation Limited Today
Indian Oil Corporation Ltd. is India's largest company by sales with a turnover of Rs. 271,074 crore and profit of Rs. 10,221 crore for the year 2009-10..Indian Oil is also the highest ranked Indian company in the prestigious Fortune 'Global 500' listing it moved up 11 places, and was ranked 105th in 2009, making it the highest ranked Indian company in the list. It is also the 18th largest petroleum company in the world. Indian Oil’s vision is driven by a group of dynamic leaders who have made it a name to reckon with.Recently Indian oil inaugurated first LPG Pipeline in North India. There has been many milestones which have been achieved by the Indian Oil the most recent been:-The 'historic amalgamation' of Bongaigaon Refinery & Petrochemicals Ltd. (BRPL) with the parent company - Indian Oil became effective from March 25, 2009. BRPL was inducted as an Indian Oil Group Company on 29th March, 2001.
3
ESTABLISHMENT OF IOCL
4
Vision & Mision of IOCL
5
Divisions at IOCL
1. Refining2. Pipelines3. Marketing4. Research & Development
6
Refining
IOCL34%
OTHER
COMPA-
NIES66%
Indian Oil accounts for 33.8% of India's
Indian Oil controls 10 of India's 20 refineries - at Digboi, Guwahati, Barauni, Koyali, Haldia, Mathura, Panipat, Chennai, Naphtha and Bongaigaon - with a current combined rated capacity of 49.30 million metric tonnes per annum (MMTPA) or 990 thousand barrels per day (bpd). Indian Oil accounts for 42% of India's total refining capacity.
7
Indian Oil owns & operates 76% of India's downstream pipeline network.
76%
24%
Indian Oil
Other Companies
Pipelines
8
Marketing
Indian Oil’s countrywide network of over 34,000 retail sales points is backed for supplies by its extensive, well spread out marketing infrastructure comprising 166 bulk storage terminals, installations and depots, 101 aviation fuel stations and 89 LPG bottling plants. Its subsidiary, IBP Co. Ltd, is a stand-alone marketing company with a nationwide retail network of over 34000 sales points. Indian Oil caters to over 55.5% of India's petroleum consumption.
9
Research & Development
Indian Oil’s world-class R&D Centre, with state-of-the-art facilities, has done pioneering work in tribology (lubricants formulation), refinery processes, pipeline transportation and fuel-efficient appliances. It has developed over 2,200 formulations of the leading SERVO brand lubricants and greases for virtually all conceivable applications - automotive, railroad, industrial and marine. The Centre has to its credit over 124 national and international patents. The wide range of SERVO brand lubricants, greases, coolants and brake fluids meet stringent international standards and bear the stamp of approval of all major original equipment manufacturers. The SERVO has to its credit over 60 national and international patents, including 5 from US.
10
PRODUCT PROFILE
CRUDE
FURNACE
VACCUM
UNIT
Butane & Lighter
Naphta
Gasoline
Kerosene
Light Gas Oil
Heavy Gas Oil
Residue Fuel Oil
SGU/LMU
NHT/CCR
KMU/DHDS
DHDS
FCCU
VSU
90-220F
220-315F
315-450F
450-650F
650-800F
800+F
DISTILLATIONTOWER
(Crude Unit)
LPG– 3.70%
MS- 17.40%
ATF/SKO-4.50%
HSD-40.70%
BITUMEN-1%
FO-32.70%
11
SERVO INDANE LPG GAS INDIAN OIL AVIATION SERVICES AUTO GAS XTRAPREMIUM PETROL XTRAMILE SUPER DIESEL XTRAPOWER FLEET CARD SUPERIOR KEROSENE OIL “SWAGAT” HIGHWAYS FLAGSHIP RETAIL OITLETS XTRA CARE XTRAREWARDS LOYALTY PROGRAM
IOCL Products and Brands
12
MARKETING DIVISION
NR
DLSO PBSO RJSOUPSO I
UPSO II
NOIDABAREILLEY
DO
4 field officers
AGRADO
5 field officers
DEHARADUN
ER
WBSO
ORSO
BHSO
NESO
WR
GJSO
MHSO
MPSO
SR
TNSO
KESO
KASO
APSO
Hierarchy Of Marketing Division
13
B M BansalChairman & Director(Planning & Business Development)
G C DagaDirector (Marketing)
S V NarasimhanDirector (Finance)
Anand KumarDirector (Research & Development)
V C AgrawalDirector (Human Resources) &Director-in-charge (IBP Division)
B N BankapurDirector (Refineries
K K Jha Director (Pipelines)
P K SinhaAdditional Secretary & Financial AdvisorMinistry Of Petroleum & Natural
Management – IOCL
14
Sudhir BhargavaAdditional Secretary Ministry of Petroleum & Natural Gas
Prof.(Mrs.) Indira J. ParikhFormer Prof. IIM, Ahmedabadand President, FLAME, Pune
Anees NooraniManaging Director,Zodiac Clothing Company Ltd.
Michael BastianFormer Chairman & Managing Director, Syndicate Bank
Dr.(Mrs.) Indu ShahaniPrincipal, HR College of Commerce & Economics, Mumbai and Sheriff of Mumbai
Prof. Gautam Barua,Director,Indian Institute of Technology,Guwahati
N.K. PoddarSenior Advocate, Kolkata
Management – IOCL
15
Ministry of Petroleum and Natural gas
UPSTREAMExploration and Production
ONGC
OVL
OIL INDIA LIMITED
Pvt. E & P Companies
DOWNSTREAMRefining and Marketing
Indian Oil Bharat Petroleum
IBP, CPCL, BRPL KRL, NRL
MRPL HINDUSTAN PETROLEUM
RELIANCE INDUSTRIES LTD.
GAILGas Transportation
& Petrochem
Other Private Cos. Oil & Gas Marketing
INDUSTRY BODIES
Petroleum Planning & Analysis Cell
Centre for High Technology
PCRA
PETRO FED
Oil Industry Safety Directorate
Petroleum India International
Engineers India Ltd.
Director General of Hydrocarbon
INDUSTRY OVERVIEW
16
Project Approved/ Estimated Cost
(Rs. crore)
Anticipated Completion
1 Paradip Refinery * 25,646* End 2011-12
2 Naphtha Cracker, Panipat 14,439 November 2009
3 Resid upgradation, Gujarat 5,693 January 2010
4 Once-through Hydrocracker & capacity augmentation, Haldia
2,869 December 2009
5 Panipat Refinery expansion: from 12 to 15 MMTPA & augmentation of crude oil pipeline
1,213 December 2009
6 Paradip-Haldia crude oil pipeline 1,178 June 2008
7 Dadri-Panipat R-LNG line 251 January 2009
8 Chennai-Bangalore product pipeline 232 July 2009**
9 Koyali-Ratlam product pipeline 225 October 2008
10 Panipat-Jalandhar LPG pipeline 187 August 2008
Total 51,933
* Approved in principle; ** 24 months from Environment & Forest clearance
Major Ongoing Projects
17
SWOT Analysis of IOCL
STRENGTH 10 Refineries all over the countries The biggest Marketing Network Over 6523 km of crude & product pipeline in place
WEAKNESS Has a large workforce Face the threat of CAG audit of all past decision.
OPPORTUNITY Vertical integration along value chain including the exploration with
ONGC High growth likelyas per capita fuel consumption is low in India
THREAT With the deregulation, it is exposed to valatility in prices Higher crudeprice would lead to narrow down margin to wafer thin.
18
INDUSTRIALVISITS DONE
RAJBANDH TERMINAL
19
RAJBANDH TERMINAL
Commisioned in 1967 There are 19 number of storage tanks.Types of product handled :
Methylated Spirit (M.S.)
High Speed Diesel
Branded Extra Premium M.S.
Branded High Speed Diesel
Xtra Mile
Superior Kerosene Oil (SKO)
Total Number of Pumps for delivering
product : 14
There are two modes of receipt : pipeline and tank wagon
There is only one mode of delivery : Tank Lorrey Filling
Tank number : Content:
1,2,4,6,9,13,18 M.S.
3,8,10,11,15,17,19 H.S.D.
4,5,7,14,16,20 S.K.O
Product Mode
1 Methylated Spirit (M.S.)
Tank Wagon
2 High Speed Diesel
Pipeline and Tank wagon
3 Superior Kerosene Oil (SKO)
Pipeline (only via Haldia Refinery)
• Automated System (for Backup)• Entire TLF• Interconnected SAP
20
INDUSTRIALVISITS DONE
IOCL BOTTLING PLANT
21
IOCL BOTTLING PLANT
Officers 11
Clerks 5Operator 54Contract Labourers 250
75 acres of LandLoad everyday: 75-80 trucks of 306 cylinder capacity each.Products:Commercial Gas :53-54 of 19 kgs23-24 of 19.5 kgs
22
INDUSTRIALVISITS DONE
Tata Chemicals
23
TATA CHEMICALS
Rock PhosphateSulphurPhosphoric AcidAmmoniaMOPMAP
Rock PhosphateSulphurPhosphoric AcidAmmoniaMOPMAP
Sulphuric Acid*2Phosphoric AcidSTPPDAP I & DAPP II/NPKSSPSulphonic Acid
Sulphuric Acid*2Phosphoric AcidSTPPDAP I & DAPP II/NPKSSPSulphonic Acid
STPPDAP/NPKSSPSulphonic AcidGypsumSulphuric Acid
STPPDAP/NPKSSPSulphonic AcidGypsumSulphuric Acid
INPUTS MFG PLANTS OUTBOUND PRODUCTS
Company Tata Chemicals
Location Haldia, West BengalProducts Chemicals: Sulphuric acid, phosphoric acid, sodium
tripolyphosphate (STPP)Crop nutrition: Di-ammonium phosphate (DAP), NPK complexes, single super phosphate (SSP)
Plant info Only manufacturing unit for DAP/NPK complexes in West Bengal; Haldia's capacity is over 1.2 MTPA. It is also India's largest producer of STPP.
24
INDUSTRIALVISITS DONE
Exide
25
EXIDE
The practice of Corporate Governance in Exide is at three interlinked levels:i. Strategic supervision - by the Board of Directorsii. Strategic management - by the Executive Committeeiii. Executive management - by the Divisional Head of the businessExide declares increase of 89 % in net profit for 09-2010 Highlights of 09-10
• Net turnover rises 12 per cent to Rs 3,794 crore • Pays 40 per cent final dividend ; annual dividend 100%
• ROCE and RONW rise to 42% and 44 per cent respectively
• Debt-Equity Ratio at 0.04 : 1PRODUCTS:
Affordable To All - Rs 1470 Upwards In house Design & Manufacture -Low Cost-Lost Price Distribution -All India Through Exide Channels New Concept :Subsidy Level Pricing Without Govt Subsidy Completely Silent Operation Does Not Pollute Air Does Not Pollute Water Very Low Running Cost
26
RESEARCHMETHODOLOGY
Methodology Design of Data Collection Preparation of Questionnaire
27
Methodology Need Identification To address the perceptual demand of the consumer group To serve the Consumer Group with value added product
Problem Recognition To launch a premium product which would match the competitors
Brand To know Consumer`s perception regarding the already existing
product Data Requirements Primary data
Sales & Post-sales feedback from Retail Outlets Consumers including both the users & non-users of premium product
Secondary Data Internet Sources – Sales Reports, Project Reports Government Publications – Statistical abstracts, Industrial Outlook etc Periodical books – Business Periodicals, Journals Commercial data – Internet, TV etc.
28
Methodology Questionnaire Design
Designed with both open & closed end questions according to the importance & sensitive Nature of the question.
Design of Data Collection Tool : Questionnaire Respondents : Retail Outlet Owners,Consumers (Both Users & non-users of Premium
Products) Contact Method : Personal Interview
Data Collection Through direct interview of Different Segments of Consumers & Retail Outlet Owners
Data Compilation Data Compiled with the help of Softwares (Percentage Analysis (MS Excel)Chi square Test
(SPSS),Time Series analysis (MS Excel,SPSS)) Data Interpretation
To interpret the Data through Statistical tools & Perception Mapping of the Premium Product with reference to the Customer Expectation
To identify the bottleneck in the Process Recommendation & Suggestion
To identify the appropiate Value to be delivered to the consumers To ascertain the variables of the product tio be launched. To check yh emarket potential the market potential of the premium product
Conclusion To advice the Firm about Future Strategy
29
NEED IDENTIFICATION
PROBLEM RECOGNITION
DATA REQUIREMENT
QUESTIONNAIRE DESIGN
DESIGN OF DATA COLLECTION
DATA COLLECTION
DATA COMPILATION
DATA INTERPRETATIO
N
RECOMMENDATIONS & SUGGESTIONS
CONCLUSION
METHODOLOGY
30
DESIGN OF DATA COLLECTION
Primary & Secondary Data To ascertain the need of typical data for the Project To collect Data in form of feedback directly from the Consumers & Retail Outlets
owner through Personal Interview
Preparation of Questionnaire To serve the purpose of collecting information scientifically To reflect the desired & derived need of Data To get the insight of the consumers regarding the Premium Product
Personal interview To get the factual 7 biased feedback from the Consumers To acquire the raw Data directly from the market
Consumers To get information from both Users and Non Users of Premium Product To assess the expected growth potential of the Product To ascertain the Market Potential of other segment
Retail Outlet Owners To get the sales information of the Outlets To understand the pattern of the Trend in the Market
31
Design of Data Collection
PREPARATION OF QUESTIONNAIRE
PERSONAL INTERVIEW
NON PREMIUM USERS
RETAIL OUTLET OWNERS PREMIUM USERS
RAW DATA
COMPILED
DATA
PRIMARY & SECONDARY DATA
32
PREPARATION OF QUESTIONNAIRE DATA/INFORMATION NEEDS
To Collect the raw data from the market in form of responses from the retail outlet owners 7 customer group group (both users & non-users of premium product)
To collect the collected information into data
SEQUENCING & DETAILED STRUCTURING To sequence the questionnaire according to the sensitive Nature To define the scope of the Questionnaire To Structure the questionnaire with appropriate order of open & closed type of questions
QUESTIONNAIRE WORDING To set up the question without any difficult word To scale the pattern so as to nullify the double meaning
FORMATTING OF QUESTIONNAIRE To format the questions according to the preference of research data To provide the respondents with the structured and unstructured questions
PRETESTING OF STAGES To pretest all the stages before the commencement of the fiekd survey To pretest the process before compilation To pretest the validity of the data at any stage
33
PREPARATION OF QUESTIONNAIRE
DATA/INFORMATION NEEDS
SEQUENCING & DETAILED STRUCTURING
QUESTIONNAIRE WORDING
FORMATTING FOR QUESTIONNAIRE
PRETEST THE STAGES
DATA ANALYSIS & INTERPRETATION
USING MS EXCEL & SPSS
35
ANALYSIS OF DATA
SL.NO GENDER IOC Branded
FUEL Others
No. Of Resp. % No. Of Resp. %
1 Male 217 91.6 85 75.2
2 Female 20 8.4 28 24.8
3 Total 237 100 113 100
GENDER OF RESPONDENT
GENDER OF RESPONDENT
INFERENCE:-
From the survey made and data collected it is identified that respondent mainly using IOCL Branded Petrol/Diesel are mainly male (91.6%) and in other branded fuels the male respondent are 75.22% and female respondent are 24.8%.
36
Gender of respondent
% % IOC Branded
FUELOther Branded FUEL
91.6
75.2
8.4
24.8
Male Female
37
DRIVING KILOMETERS PER DAY USING BRANDED PETROL/DIESEL
SL.NO kilometers
IOC Branded
FUEL Other Branded
Fuel
No. Of Resp. % No. Of Resp. %
1Less than 10
km 13 4.70 5 6.8
2 10-25 km 57 20.60 13 17.8
3 25-50 km 111 40.10 31 42.5
4 50-80 km 52 18.8 10 13.7
5 Above 80 km 44 15.9 14 19.2
6 Total 277 100 73 100
INFERENCE : From the table it is found that the maximum number of respondent drive about 25-50 km per day and also it is found out that the percentage of respondent driving 25-50 km in a day, using branded fuel of IOCL are near about equal to respondent using other branded fuel (all other branded fuel included).
38
DRIVING KILOMETERS PER DAY USING BRANDEDPETROL/DIESEL
Less than 10
km
10-25 km
25-50 km
50-80 km
Above 80 km
4.70
20.60
40.10
18.8015.90
6.80
17.80
42.50
13.7019.20
Driving per day using branded fuel
IOC Branded FUEL %Other Branded FUEL %
39
INFLUENCING FACTORS WHILE FUELLING AT THE INDIAN OILS RETAIL
OUTLET
SL.NO INFLUENCING FACTOR IOC Branded FUEL (%) Other Banded Fuel (%)
1 Price 3.7 4.8
2 Brand Name 24.8 14.5
3 Good Quality 17.5 14.3
4 Effective Advertisement 12.1 14.9
5 Nearness to home & conv. 9.7 11.9
6 Increased Mileage 23.4 19.4
7 Reduced Maintenance 5 5.2
8 Better Services in Ros 3.6 11.3
9 No Specific Reason 5.1 1.2INFERENCE : From the table it is clear that , that the most influencing factors are brand name (24.8%) and increased mileage(23.4%) for IOCL branded fuelas compare to 14.5% & 19.4% for other Branded fuels . In general an respondent wishes the fuel to give more mileage and good quality fuel also plays a vital role .Its impotant for other branded fuel as well as for IOCL branded fuel.
40
INFLUENCING FACTORS WHILE FUELLING AT THE INDIAN OILS RETAIL
OUTLET
Price
Brand
Nam
e
Goo
d Q
uality
Effect
ive A
dver
tism
ent
Nearn
ess
to h
ome
& con
v.
Incr
ease
d M
ileag
e
Reduc
ed M
ainta
nce
Bette
r Ser
vicein
Ros
No Spe
cific
Reaso
n
3.7
24.8
17.512.1 9.7
23.4
5 3.6 5.14.8
14.5 14.3 14.911.9
19.4
5.211.3
1.2
Influencing factor while fuelling
IOC Branded FUEL % Other Banded Fuel %
41
OPINION ABOUT THE ADVERTISMENT OF IOCL BRANDED FUEL
SL.NO OPINION IOC Branded
FUEL Others
Branded fuel
No. Of Resp. % No. Of Resp. %
1 Highly attractive 37 16.83 22 17.8
2 Attractive 118 53.3 33 25.6
3 Moderately Attractive 55 24.9 69 53.6
4 Not Attractive 11 4.97 5 3
5 Total 221 100 129 100
INFERENCE : From the table it is found that, respondents (53.3%) have opinion that the advertisement done by IOCL company for their XtraPremium Petrol and XtraMile Diesel is attractive were as in other brands most of the respondent (53.6% ) think that the advertising done by company for their fuel is moderately attractive.
42
OPINION ABOUT THE ADVERTISMENT OF IOCL BRANDED FUEL
Highly attractiveAttractive
Moderatly AttractiveNot Attractive
0
10
20
30
40
50
60
16.83
53.3
24.9
4.97
17.8 25.6
53.6
3
IOC Branded FUEL % Other Branded FUEL %
43
LEVEL OF PERCEPTION ABOUT THE PERFORMANCE OF INDIAN OIL
BRANDED FUEL
SL.NO OPINION IOC
Branded FUEL Others Branded
fuel
No. Of Resp. % No. Of Resp. %
1 Low Level 51 19.3 10 11.6
2 Medium Level 143 54.2 35 40.7
3 High Level 70 26.5 41 47.7
4 Total 264 100 86 100
INFERENCE : It is found tha IOCL XtraPremium Petrol and XtraMile Diesel most of the respondents(54.2%) have medium level of perception regarding the performance of fuel while for other Branded fuels most of respondent (47.7%) have level of perception regarding the performance.
44
LEVEL OF PERCEPTION ABOUT THE PERFORMANCE OF INDIAN OIL BRANDED
FUEL
Low Level Medium Level High Level
19.3
54.2
26.5
11.6
40.747.7
Level of perception about per-formanve of iocl branded
petrol/dieselOther Branded FUEL
IOC Branded FUEL %Other Branded FUEL %
45
OPINION ABOUT THE SERVICES OFFERED BY RETAIL PUMP OUTLETS
SL.NO OPINION
IOC Branded
FUEL Others Branded
fuel
No. Of Resp. % No. Of Resp. %
1 Excellent 6 3.8 33 17.2
2 Very Good 41 25.8 97 50.8
3 Average 76 47.8 50 26.2
4 Below Average 36 22.6 11 5.8
5 Total 159 100 191 100INFERENCE :From the data collected it found that 47.8% of respondent find service at RO of IOCL to be average were as 50.8% of respondent find service at RO of Other companies to be very good. Hence efforts need to be made to improve service provide at retail outlet to be improved.
46
OPINION ABOUT THE SERVICES OFFERED BY RETAIL PUMP OUTLETS
Excell
ent
Attrac
tive
Mod
erat
ly Attr
activ
e
Not A
ttrac
tive
3.8
25.8
47.8
22.617.2
50.8
26.2
5.8
IOC Branded FUEL % Other Branded FUEL %
47
RESPONDENT SATISFACTION ON USE OF INDIAN OIL BRANDED FUEL
SL.NO OPINION IOC
Branded FUEL Others Branded
fuel
No. Of Resp. % No. Of Resp. %
1 Very Satisfied 77 35 24 18.4
2 Satisfied 132 60 78 60
3 Dissatisfied 11 5 14 10.8
4 Not Attractive 0 0 14 10.8
5 Total 220 100 130 100.0
INFERENCE :It is found that most of the respondents( 60 %) are satisfied while using both IOCL XtraPremium petrol and XtraMile Diesel and other Branded fuels also.
48
CONCLUSION
FINDINGS
49
Magazines
Business India (Cyber India Publications) Voice & Data Business Today Samachar Vistar IOCL News (Weekly Magazine of IOCL) The Economic Times The Hindu Business Standard Consumer Behavior
50
Wibliography
www.bseindia.org www.nseindia.org www.iglonline.net www.infralinc.com www.essar.com www.iocl.com www.geecl.com www.mindbranch.com www.marketresearch.com www.ias.ac.in www.ethanolindia.net www.dpi.wa.gov.an www.businessline.com www.prashantmodigeecl.tblog.
com
www.iocxtrapower.com www.petrobonus.com www.hpcl.com www.imint.com www.wikipedia.com www.indianoilpetronas.com www.thehindubusinessline.
com www.chemochannels.com www.blonnet.com
51
Any Questions?