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
OverviewGrowing 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, GujratStudents, I.T. Professionals,
Consultants, Industries
South West Zone KarnatakaStudents, I.T. Professionals,
Consultants, Industries
South Zone Chennai, Hyderabad, Thiruvananthapuram
Students, I.T. Professionals,
Consultants, Industries
East Zone Kolkalta, Bhubhneshwar I.T. Professionals, Consultants, Industries
• 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’
DetailsBrand 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
KeroseneFirewoodCoalIllegal 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, indiaproperty.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, Chennai, 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 Effectiveness1. Number of new registrations2. 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 displayBTL 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.
RuralNo. 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!