The Indian Petroleum Industry: Towards Branded Fuels

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Case Details:

Case Code : MKTG059
Case Length : 12 Pages
Period : 2002-2003
Pub Date : 2003
Teaching Note :Not Available
Organization : HPCL, BPCL, IOC Etc
Industry : Petroleum
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Building The New Fuel Brands

Having realized the need for brand-building, oil companies invested heavily in product development and R&D to come out with fuels that would suit the requirements of Indian roads as well as comply with the emission norms. BPCL's Speed was blended with multi-functional additives sourced from Chevron Oronite Company LLC, a ChevronTexaco company...

The Promotional Efforts

The maximum 'action' in the industry was seen on the promotional front. All the companies were adopting various media mix tools to promote their brands. BPCL launched a promotion scheme for Speed, under which anyone buying fuel worth Rs 600 or more got a free BPCL PetroCard.

The company also gave its dealers better incentives to sell the new fuel. A survey conducted by revealed that 44% of customers were influenced by people at the petrol pumps, who convinced them to use Speed...

Speed Leads

The initial response to these brands was quite encouraging. The marketing efforts of the companies prompted many customers to try out the fuels. In September 2002, HPCL's Director (Marketing), N K Puri remarked that 40% of the consumers in Mumbai and Delhi had already converted to branded fuels and that this figure was expected to go up to 50-60% in the future...


Exhibit I: About Administered Price Mechanism
Exhibit II: Prices of Branded/Unbranded Fuels in India

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