LPG Marketing in Competitive Environment in India

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Transcript of LPG Marketing in Competitive Environment in India

  • LPG Marketing in Competitive Environment A Case of Small Size Cylinder Package
  • Content Analysis Introduction Potential Customer Market Size Launching Strategy Branding and Promotion Pricing Distribution
  • Overview Growing with India BPC Gas! Since inception of FTL in October 2013, growth rate of BPCL in 5kg LPG cylinder has been 60.43%approx
  • Target Customers Potential Customers Rural & Hilly Households I.T. professionals or consultants Students Small offices-pantries Back-up cylinder in the households Small eateries/ food stalls/ SME food enterprises Picnics/ outings School/ college laboratories
  • Potential Market Size Urban Market Focus Regions Zones Regions Potential Consumers North Zone Delhi, NCR, Gurgaon, Noida I.T. Professionals, Consultants, Industries North West Zone Rajasthan Students, Industries West Zone Mumbai, Pune, Gujrat Students, I.T. Professionals, Consultants, Industries South West Zone Karnataka Students, I.T. Professionals, Consultants, Industries South Zone Chennai, Hyderabad, Thiruvananthapuram Students, I.T. Professionals, Consultants, Industries East Zone Kolkalta, Bhubhneshwar I.T. Professionals,
  • Rural Market Focus Regions Zones Regions No. Of Inhabited Villages (Approx.) North Zone Uttar Pradesh 97,942 North East Zone Seven Sister States of Northeast India 65,375 Central Zone Madhya Pradesh 52,117 East Zone Orissa 47,529 West Zone Maharashtra 41,095
  • LAUNCHING STRATEGY USP Paramount Quality in Compact Quantity
  • Details Brand Development and Promotion Two Campaign Launch- Rural Market & Urban Market 6 Cities & 15 outlets 640 districts Promote and Educate alternate uses of LPG Chemical Feedstock Centralized Heating Solutions Production of Electrical energy by running Turbines Paper Industry Food processing Industry Agriculture use Drying process Refrigerant Expand to
  • Pure LPG Kerosene Firewood Coal Illegal LPG Promote Legal and Safe use of LPG Safe Health.. Safe Home.. Safe Environment!
  • Brand Development & Promotion Product Name : CHIRAG LPG Method of Approach Above The Line Below The Line
  • Campaign 1: Urban Market Bringing warmth to your kitchen Concept: Expand customer base along with brand awareness Objective: Product promotion and decrease black marketing of LPG Buzz Creation: ATL Approach: For PG students and temporary residents, the promotion shall be done through news & social networking sites- 99acres.com, olx.com, quickr.com, facebook.com, gmail.com, ind iaproperty.com, sulekha.com, magicbricks.com,etc. BTL Approach: Promotion activities carried out in corporate parks and recreational areas like canteen and refreshment places New registration canters will be setup at Top I.T., Consultant and BPO-KPOs.
  • Areas: 6 Zones Sub Areas: Delhi, NCR, Gurgaon, Noida, Rajasthan, Mumbai, Pune, Karnataka, Ch ennai, Hyderabad, Thiruvananthapuram, Kolkalta, Bhubhneshwar Duration: Canter activity will be setup for 2 days at Office Premises Post Campaign Members will be sent an email/ newsletter consisting details of the FTL products. It will consist a link to the main company website which will help them locate nearest store for FTL cylinder. Top Safety Guidelines for usage of LPG Measurement of Effectiveness 1. Number of new registrations 2. Sale monitoring -FTL-5kg & 3kg 3. Enquiries generated
  • Campaign 2: Rural Market Aapke choolhe ki Jaan- CHIRAG LPG Concept: Safety Training + Customer Base Expansion Objective: Creating awareness regarding safety and quality of using the product alongwith alternative use of LPG in agriculture. Buzz Creation: ATL Approach: Wall Paintings and Pictoral Pamphlet distribution, BPC Gas Dealer outlet banner and billboard display BTL Approach: Short film/ skit on safety measure to be followed in the kitchen, uses and advantages of LPG Conducted during the Gram Panchayat weekly sessions, Local Haat/Mela(Fun Fair) Fabricated canter will visit the village
  • Areas: 5 Zones Sub Areas: Uttar Pradesh, Seven Sister States of Northeast India, Madhya Pradesh, Orissa, Maharashtra- 2092Talukas Duration: 1 day per Taluka Post Campaign: A training session conducted at their nearest distributor outlet/ taluka regarding alternative usage and optimal use of LPG cylinder. They can further spread awareness about safety in their neighbourhood. Measurement of Effectiveness: 1. Number of Registrations 2. Sale of FTL-5kg & 3kg 3. Enquiries generated
  • Pricing Strategy Price influencing Factor-Import Parity Basis. The price of LPG cannot remain fixed as it is market based However, company will incur low mantainence cost as the cylinder will be sold off from the counter and holding cost will reduce. We propose reduced price rate for the existing pricing of 5kg FTL cylinder Proposed redesigning of 5kg LPG cylinder can be done in terms of reducing the weight Introducing 3kg LPG light weight cylinder
  • Cost Components Existing Rate New Rates (5 kg) New Rates (3 kg) Production of Cylinders Rs. 1000/- (approx) Rs. 500-600/- (approx) Rs.360/- (approx) Production of LPG Rs. 400-500/- (approx) Rs. 400-500/- (approx) Rs. 300/- (approx) Regulator (if required) Rs. 250/- Rs. 250/- Rs. 250/- Hose/ Tube (if required) Rs. 100/- Rs. 100/- Rs. 100/- Administrative charges Rs. 25/- Rs. 15/- Rs. 15/- Price Component Chart of 5 kg and proposed 3 kg FTL Cylinder
  • Price Scheme of 5 kg & 3 kg FTL cylinders Items Existing Price New Price 5 kg FTL cylinder + regulator Rs. 1450/- Rs. 1165/- (Approx) 5kg FTL cylinder Rs. 1200/- Rs. 915/- (Approx) 3 kg FTL cylinder + regulator NA Rs. 925/- (Approx) 3 kg FTL cylinder NA Rs. 675/- (Approx) Below are the costs of 5kg FTL Cylinders taking into consideration the cost components as mentioned above:- Post use of 5kg cylinder, the consumer can return back the cylinder and buy a new LPG cylinder. Refund option of 15% (out of production cost of cylinder vessel) can be deducted from their new purchase.
  • Distribution Channel OMC Respective Distributor COCO Retail outlets Customers Current distribution channel:- Proposed Distribution Channel:- ORO- Other Retail Outlets
  • O.R.O. Urban Supermarket outlets like:- Big bazaar Food bazaar Star Bazaar D-Mart Hypercity Reliance Fresh Other upcoming departmental stores like Walmart & TESCO. Rural No. of Talukas present in our target states STATES NO. OF TALUKAS Uttar Pradesh 821 Seven Sister States of NorthEast India 59 Madhya Pradesh 540 Orissa 314 Maharashtra 358
  • Stock Keeping Units Give consumer wider choice in terms of buying options. Establishing similar operative system with quality and optimization as of larger LPG cylinders to FTP cylinders. Stresses on increasing the sales of FTP cylinder of 5 kg and 3 kg.
  • Recommendations R & D on reducing the weight of cylinder vessel by use of alternative metal/material PAN India marketing campaigns throughout the pilot stage Introduce order-your-cylinder-online and nearest store locator Speed delivery within 30minutes-1hr. (depending upon area reach)
  • TEAM TROJAN Thank You!