Project
Project
Project
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Introduction
The project titled LPG Marketing in Guwahati, Assam and Quality of services offered by Indane LPG distributors in Guwahati City was done in INDANE Area Office, Guwahati under Indian Oil Corporation Limited (IOCL) North Eastern State Office [Marketing Division] for the duration of 2 months starting from 5th May, 2008 till 4th July, 2008.
Theoretical Background:
LPG cooking gas is a necessary part of every household. The demand of such product is always more than the supply. The price of LPG is set by the Ministry of Petroleum and Natural Gas (MoP&NG). Indane has a market share of almost 99% in the region but, soon rival like Bharat Gas and HP Gas are likely to enter the market in a big way and by providing superior services they will attract customers. It is very important for IndianOil to find out the satisfaction level of the existing customers so, that the company can take initiatives to improve their services and compete with the rivals in the future.
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Industry Profile
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The cylinders are manufactured only by the approved manufacturers, under the supervision of BIS inspectors and are certified by the Controller of Explosives. Domestic Cylinders are painted in red and Commercial cylinders are painted in dark blue. The cylinders carry their complete history with regards to serial number, gross weight, water capacity, ISI monograms, test date, manufacturer identification and year of manufacture.
Classification of customers
The customers are normally classified as under:
a) Domestic Customers: Customers who use LPG for household purposes like
cooking, heating, etc. They are not making any type of monetary gain by using LPG.
b) Commercial Customers: Customers who use LPG for business purposes like use
production of goods, welding in construction sites, etc. LPG cylinders offered to such type of customer are big in size. LPG is also directly transferred from the companies LPG tanker carrier to the tanker situated at the industry. This is done to reduce the number of cylinders stored.
Domestic and commercial customers take a cylinder and a regulator in loan form the Oil Company by paying a certain amount as connection charge and security deposit. After the cylinder get empty the company replace the empty cylinder with a filled cylinder on the payment of a certain amount by the customer for the exchange.
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It is mandatory for all companies to display the rate of the cylinder and the stock of full cylinders in the booking office. This is as per the rules of the Packaged Commodities Act (1975). The price of the cylinders are also mentioned in the companies web site and displayed in the companies office. Customers who want LPG for industrial purposes have to take license from the oil company. License is granted by the company after proper enquiry. Such customers have to pay deposit on a one time basis and an amount for each refill. The industrial customers have to follow strict rules and regulations on storage and use of LPG.
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1.1
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*IBP Co. Ltd has been merged with IOCL with effect from 02.05.2007.Source: Public Sector Undertakings.
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1.3
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1.4
1.5
1.6
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1.7
1993-94 2 1261
1994-95 3 1410
2002-03 4 3691
2003-04 5 2783
2004-05 6 1468
2005-06 7 1520
2006-07 8 1568
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Company Overview
IndianOil Corporation Limited is Indias largest commercial enterprise and has leading market shares in downstream segment of Oil business. Indian Oil Corporation Ltd. currently secured a turnover of Rs. 247,479 crore (US $59.22 billion), and profit of Rs. 6963 crore (US $ 1.67 billion) for fiscal 2007. It has the highest ranked Indian corporate in Fortunes list of Worlds 500 Largest Companies. It has been ranked number 116. It is the 20th largest petroleum company in the world Fortune Global 500.
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It has got Indias No. 1 Corporate in annual listing of Business Standard (BS 1000), Business India (BI Super 100) and Economic Times (ET 500). IndianOil is Indias Most Trusted Fuel Pump Brand (ET Brand Equity AC Neilsen Survey 2007).
IOCL has won many prestigious awards like: National Award for Innovations in Implementing Business Continuity for SAP R/3 Environment from Govt. of India, SAP certification to IOCs Customer Competence Center and many more.
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For the year 2007-08, the IndianOil group sold 59.29 million tonnes of petroleum products, including 1.74 million tonnes of natural gas, and exported 3.33 million tonnes of petroleum products. The IndianOil Group of companies owns and operates 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, .i.e. 1.2 million barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation Ltd. (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRPL). The Corporation's cross-country network of crude oil and product pipelines, spanning about 9,300 km and the largest in the country, meets the vital energy needs of the consumers in an efficient, economical and environment-friendly manner.
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IndianOil is investing Rs. 43,393 crore (US $10.8 billion) during the period 2007-12 in augmentation of refining and pipeline capacities, expansion of marketing infrastructure and product quality upgradation as well as in integration and diversification projects.
Indian Oil's ISO-9002 certified Aviation Service commands over 62% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defence Services. The Corporation also enjoys a dominant share of the bulk consumer business, including that of railways, state transport undertakings, and industrial, agricultural and marine sectors.
Exclusive XTRACARE petrol & diesel stations unveiled in select urban and semi-urban markets offer a range of value-added services to enhance customer delight and loyalty. Large format Swagat brand outlets cater to highway motorists, with multiple facilities such
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as food courts, first aid, rest rooms and dormitories, spare parts shops, etc. Specially formatted Kisan Seva Kendra outlets meet the diverse needs of the rural populace, offering a variety of products and services such as seeds, fertilizers, pesticides, farm equipment, medicines, spare parts for trucks and tractors, tractor engine oils and pump set oils, besides auto fuels and kerosene. SERVO Xpress has been launched recently as a onestop shop for auto care services. To safeguard the interest of the valuable customers, interventions like retail automation, vehicle tracking and marker systems have been introduced to ensure quality and quantity of petroleum products.
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Marketing of petroleum products was started as early as in 1902 by Assam Oil, when Kerosene from Digboi Refinery moved into the market, making it the pioneering petroleum marketing company of India. Assam Oil has been providing service to the nation by meeting the requirements of the Defence Sector since a long time. In fact, Assam Oil is the first to supply LPG to the Army Cookhouses, thereby contributing to the important cause of conservation of forests, by substituting LPG for firewood, which was earlier used for cooking purpose. Assam Oil has a rich tradition of serving its customers and ensuring customer satisfaction in terms of quality and quantity Assam Oil Division hopes to keep up its reputation of good customer service and uphold its tradition of ensuring that the customer always comes first.
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AutoGas
AutoGas from IndianOil is India's leading Auto LPG fuel brand available in about 60 cities. Auto LPG is a clean, high-octane and eco-friendly fuel. It is obtained from natural gas through fractionation and from crude oil through refining. It is a mixture of petroleum gases like propane and butane.
Indane is today one of the largest packedLPG brands in the world. IndianOil pioneered the launch of LPG in India in the 1970s and transformed the lives of millions of people with the introduction of the clean, efficient and safe cooking fuel. LPG also led to a substantial improvement in the health of women in rural areas by replacing smoky and unhealthy chullahs with Indane. It is today a fuel synonymous with safety, reliability and convenience.
Premium Fuels
The launch of premium fuels Xtrapremium and Xtramile marked a new beginning for IndianOil and its customers. The maiden launch of these brands of fuel took place in Delhi on September 24, 2002.
SERVO
IndianOil's SERVO range of lubricants reigns as the undisputed market leader in the Indian lubricants market. It is also the first indigenous lubricant. Servo is known for its cutting-edge technology and high-quality products, SERVO backed by IndianOil's pioneering R&D, extensive blending and distribution network, sustained brand enhancement and new generation packaging is a one-stop shop for complete lubrication solutions in the automotive, industrial and marine segments.
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Indane
Indane LPG is one of the largest packed LPG brands in the world. Indian Oil was a pioneer in the 1970s when it launched the energy efficient LPG and Kerosene stoves which transformed the lives of millions of people by introducing clean, efficient and safe cooking. It also led to substantial improvement in the health of rural women replacing smoky and unhealthy chullahs. Today, the Indane LPG brand is synonymous with Safety, Reliability and Convenience. The Indane brand also stands for value addition in new generation technologies that are constantly showcased in a wide range of non-fuel products. For Indane LPG, the task is to make the kitchen a safe, reassuring, healthy and convenient workplace. In fact, the Suraksha LPG Hose, developed by the LPG Equipment Research Centre and energy efficient Green Label stoves are recommended by Indane. To prevent diversion, the Indane Brand is being backed by RFID technology, which is a new concept that helps Indian Oil track movement of LPG cylinders. Currently it is in the conceptual stage and initial trials are going on, after which it will be implemented countrywide. Indian Oil takes pride in its unique capabilities for serving people residing at far off locations. Indian Oil has the unique distinction of supplying LPG at the highest possible
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1.1
State
IOCL/ AOD
IBP
HPCL
BPCL
TOTAL (Col.2-5)
Total as on 1.4.2006
1 Assam
2 227
3 0
4 9
5 15
6 251
7 249
*: IBP Co. Ltd has been merged with IOCL with effect from 02.05.2007.Source: Public Sector Undertakings.
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1.2
(a) Table: COMPANY-WISE LPG DOMESTIC CONSUMERS IN ASSAM ('000' Number) As on 1.4.2007
State
IOCL/ AOD
IBP
HPCL
BPCL
TOTAL (Col.2-5)
Total as on 1.4.2006
1 Assam
2 1738
3 0
4 24
5 51
6 1813
7 1656
*: IBP Co. Ltd has been merged with IOCL with effect from 02.05.2007.Source: Public Sector Undertakings.
Non-Domestic
Indane LPG Cylinders is sold for commercial and industrial use under NonDomestic (Exempted) and Non-Domestic (Non-Exempted) categories, both in cylinders and in bulk.
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Non-Domestic (Exempted)
Ministry of Petroleum and Natural Gas (MoP&NG) allows supply of LPG at subsidized rate (Domestic Rate) to the following category of customers:-
Government/Municipal hospitals for whatever purpose they use it. Supplies to all school and colleges whether for hostel or for mid-day meal scheme.
Canteen attached to government offices (Government includes Central/State Government and local bodies and their installations and guest houses etc.)
Messes of police, BSF, CISF in addition to kitchens and messes of Defence establishment.
Canteens run on cooperative basis under Cooperative Societies Act. Laboratories attached to schools, colleges and research institutions. Charitable institutions registered under the Societies Act, Bombay Public Trust Act of 1950.
Non-Domestic (Non-Exempt)
Indane is sold at non-subsidized rates to all other customers other than mentioned above.
2. Bulk Supply
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Indane LPG is supplied in bulk to heavy industries. Such supply is done by IOCL directly. In the bottling plant tankers are filled with LPG and transported to the particular industry where it is stored in huge tanks.
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LPG Distributors: Guwahati City under Marketing Division and Assam Oil Division
1. Bhaskar Gas 2. Bluflame Agencies 3. City Gas 4. Dipti Gas 5. Gauri Gas 6. Technico 7. Padmaja 8. Pragjyoti 9. Hagsha Gas 10. Pinakshi Gas 11. Sikha Gas 12. Shankardev Gas 13. P.S Gas 14. Statefed Silpukhari 15. Jyoti Gas 16. Nabajyoti 17. Navadeep 18. Shivam Gas 19. Sandhan Gas 20. Shyama Gas 21. Deep Jyoti Gas 22. Rly Co-op Cons Stores 23. Keshab Indane 24. Sonaram Indane 25. Statefed Hatigaon
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26. Indane Pawak 27. Green Hill Gas 28. Pol Depot Narengi 29. Oil India Narengi 30. Rihno Gas 31. N.F. Rly Emp Co-op Maligaon
b. Green Label Stoves (68% Efficient) c. Fire Proof Apron d. Kent water purifiers
e. Zenith and Safex fire extinguishers (1000 gm and 1500 gm)
f. Mysore Emporium (Soap and Dhoop) g. CNG/LPG auto kits h. e-booking of railway tickets i. Money transfers j. Kwality Walls' kiosks k. Mysore Sandal Soaps l. Courier services m. Telecom products IOCL is constantly searching for new ideas to generate revenue through non fuel products.
IOCL is constantly taking measures to meet consumers demand in terms of safety, reliability and convenience. For safety IOCL is trying to educate the consumers by sending personals to consumers residence and giving safety instruction, by Distributing leaflets with safety instruction to the consumer who visit various distributors and by posting advertisement on news papers, radio channels and local television channels. For reliability and convenience IOCL is delivering the LPG cylinder at the customer door steps, providing equipments to the consumers to measure the quantity of LPG delivered and the valve of the LPG cylinder. LPG distributors are also trying to provide service seven days a week.
This initiative marks the introduction of several safety features and would be replicated all over the country in a phased manner.
LPG Pricing
Basic Price
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+ Ces
Source of LPG
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Empty cylinders are collected by the distributors from the customers and stored in a safe place. When sufficient numbers of cylinders are collected they are sent to the bottling plant for refill.
Packaging
The LPG cylinder after being filled is sealed with the safety cap. The cylinders are checked for any leakage. All cylinders with leakage are checked and repaired.
1. New Connection As the demand for LPG increases new LPG connection are granted. The grant of new connection in an area is controlled by the Ministry of Petroleum and Natural Gas (MoP&NG).
2. Incoming Termination Voucher (TV) When a consumer changes his or her residence and the new residence fall outside the territory of the existing Indane LPG distributor his LPG connection will be shifted to the LPG distributors nearest to the new residence. The consumer will fill up the Termination Voucher form and submit it to the existing distributor. The consumer will keep the LPG cylinder and regulator. A duplicate termination voucher is given to the consumer which he or she has to submit to the new distributor. The new distributor will grant a new connection only on the receipt of the termination voucher and other relevant documents such as residential proof, etc. In this way a new connection is generated for the distributor. Such a procedure is followed when transfer of connection is to be made within the same city or town. 3. Incoming Transfer Termination Voucher (TTV) When a consumer changes his or her residence and moves to some other state his or her LPG connection will be transferred to a distributor nearest to the new residence of the consumer in the other state. The consumer will fill up the Transfer Termination Voucher form and submit it to the existing distributor. The consumer will surrender the LPG cylinder and regulator. A duplicate transfer termination voucher is given to the consumer which he or she has to submit to the new distributor in the new state. The new distributor will grant a new connection only on the receipt of the transfer termination voucher and other relevant documents such as residential proof, etc. After the documents have been verified a new cylinder and a regulator will be issued to the consumer. In this way a new connection is generated for the distributor.
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Transfer of Consumers
When the number of consumers assigned to a distributor goes beyond the management capacity of the distributor consumers are transferred to the nearest distributor. In this way a new connection is generated for the distributor.
New Initiatives
LPG cylinder booking through SMS
LPG (Indian) group of North-east integrated State office of IndianOil has come up with a number of customer service initiatives for catering better service to Indian customers like LPG refill booking through SMS, so that booking could be made by customers at the time convenient for them. Booking of LPG cylinders can be made at select retail outlets for the benefits of the customers. IndianOil has also made provision for customer relationship desk for attending to the needs of the customers.
The initiatives were inaugurated at a formal ceremony by PL Barua, Executive Director, (Assam Oil Division) of IndianOil. Mr. B Basumatary, Commissioner of Transport, Assam, G Bhanumurthy, Executive Director, Guwahati Refinery and S Ghosh, General Manager, North-east Integrated State Office of IndianOil attended the ceremony. Noted Assamese
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film actress, Barsha Rani Bishaya also was present at the inaugural ceremony. The function was preceded by scurries of talks and programmes on LPG safety, its conservation, Auto LPG, etc.
CHAPTER TWO
To study the distributors and know about the distribution chain and the level of service offered by the distributors.
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Research Methodology
Information Needed
The questionnaire was designed in such a way that the information regarding the following was obtained:
Whether the consumer are getting timely refill supply from their Distributor. Whether the consumer are home delivery. Whether the delivery man demand extra money. Whether the consumer getting timely response in your complaints redressed from the Distributor.
Whether the consumer finds any difficulty in booking your refill over phone. Whether the Distributor/Staff courteous over the phone. Whether the Distributor/Staff courteous when you visit showroom. Whether the delivery man/mechanic courteous. Whether the cylinders have seal on them. Whether the cylinders have safety cap attached. Whether the consumers been getting prompt service from customer Service Cell. Whether the consumers been getting periodic instruction from the Oil Company/Distributor regarding safety awareness.
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Whether
the
consumers
been
getting
periodic
guidance
from
Oil
Company/Distributor regarding Fuel Saving. The above information actually leads to the conclusion that whether Indane consumers are satisfied with the services offer by the Indane Distributors and also their expectation on the future.
Reasons for selecting this method The questions were diverse and personal interaction was needed to get the correct and true response of the respondent. The sample selected can only be reached through this method. The response rate could only be increased through this method. In this method the time required and the cost involved is less as compared to other methods.
Primary Data:
Primary data was collected from Indane consumers through personal interviewing techniques. The interview was conducted at the distributors booking point and LPG distribution point. A structured questionnaire was designed to conduct the interview.
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To get an insight into the various services offered by the distributors I visited two prominent distributors. I also took information about the feedbacks they received from the consumers. This information helped me to get an initial understanding of the consumer need. No structured questioner has been formed for the distributors interview. The sample size has been decided and divided accordingly to four distributors. The distributors visited by me are: Bhaskar Gas, Bluflame Agencies, City Gas and Dipti Gas. These four distributors are located in prominent part of the city.
The data was collected from Indanes consumers and distributors code of conduct manual, IOCLs magazines, journals, news papers and websites like: www.iocl.com www.ioclbizz.com www.petroleum.nic.in www.google.com
Time given 365days (can be extended on genuine reason for the delay)
The family member should produce the following documents: Copy the death certificate of the consumer Original Subscription Voucher
Lost Subscription Voucher In case of lost SV the following documents must be given to the distributor 1. Copy of the Subscription Voucher 2. Passport
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3. Succession Certificate 4. Election Card 5. Affidavit 6. Succession Certificate 7. NOC from legal Heir 8. Affidavit-Oath Commission or Public Notary 4. Case of Theft of Cylinder
FIR should be logged. District council will inform the area manager and give the area manager customer detail.
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Sampling Technique
Non-Probability Sampling Technique
The sample includes Indane consumers visiting the Indane Distributor booking office and LPG distribution point. Convenience Sampling. Judgmental Sampling.
Sample Size
200 Indane Consumers selected randomly.
Scaling Technique
The scaling technique I used in the survey is nominal methods. Each data collection form has been assigned a serial no. so that the consumers can be easily identified.
Fieldwork
The fieldwork was done by me along with the help of staff in the Indane Distributors office.
Analysis
SPSS package was used to analyze the data obtained from the survey.
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CHAPTER THREE
Interpretation
Data Analysis
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Chi Square
From the survey, I found that two services i.e. timely refill supply by the distributor to the consumers and booking refill over the phone are the most important factors to a consumer's overall satisfaction. So, I want to test whether each of the four distributors i.e. City Gas, Dipti Gas Agency, Bhaskar Gas and Blue Flame provides a similar and adequate level of these two customer service i.e. timely refill supply by the distributor to the consumers and booking refill over the phone.
Service 1)
Table 3.1: Distributor * Consumers getting timely refill supply from their Distributor Cross tabulation
Consumers getting timely refill supply from their Distributor Distributor City Gas Dipti Gas Agency Bhaskar Gas Blue Flame Total Always 27 25 35 28 115 Mostly 13 9 16 11 49 Sometimes 9 6 8 10 33 Rarely 1 0 1 1 3 Total 50 40 60 50 200
There is no significant difference between the levels of service i.e. Delivering refill to the consumers on time, across the four distributors.
There is significant difference between the levels of service i.e. Delivering refill to the consumers on time, across the four distributors.
Table 3.2: Chi-Square Test Consumers getting timely refill supply from their Distributor and Distributors
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df 9 9
Pearson Chi-Square (Chi-Square calculated) value is 2.297 and Likelihood Ratio (ChiSquare tabulated) value is 2.883. Rule of Chi-Square test says that if Chi-Square tabulated is greater that Chi-Square calculated, we should accept the null hypothesis (H0) and reject the alternative hypothesis (H1). In this case, as Chi-Square tabulated (2.883) is greater that Chi-Square calculated (2.297), we will accept the null hypothesis (H0) and reject the alternative hypothesis (H1). It means there is no significant difference between the level of service i.e. delivering refill to the consumers on time, across the four distributors.
Service 2)
Table 4.1: Distributor * Consumer finding any difficulty in booking refill over phone Cross tabulation
Consumer finding any difficulty in booking refill over phone Always Distributor City Gas Dipti Gas Agency Bhaskar Gas Blue Flame Total 2 5 7 7 21 Mostly 11 1 0 1 13 Sometimes 4 1 3 5 13 Rarely 6 2 6 6 20 Never 27 31 44 31 133 Total 50 40 60 50 200
There is no significant difference between the levels of service i.e. Booking Refill over the Phone, across the four distributors.
There is significant difference between the levels of service i.e. Booking Refill over the Phone, across the four distributors.
Table 4.2: Chi-Square Test Booking Refill over the Phone and Distributors
Chi-Square Test Asymp. Sig. (2-sided) .001 .001
df 12 12
33.932
Square tabulated) value is 32.538. Rule of Chi-Square test says that if Chi-Square tabulated is greater that Chi-Square calculated, we should accept the null hypothesis (H0) and reject the alternative hypothesis (H1). In this case, as Chi-Square tabulated (32.538) is less that Chi-Square calculated (33.932), we will accept the alternative hypothesis (H1) and reject the null hypothesis (H0). It means there is significant difference between the level of service i.e. Booking Refill over the Phone.
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CHAPTER FOUR
Findings
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Out of 200 consumers, 158 (79%) consumers get their refill on time but, 21 % consumers face delay in delivery of refill at preferred time. One of the main reason for the delay is that the delivery man have to return back as there is no one present in the consumer residence at the time of delivery.
Out of 200 consumers,158 (79 %) consumers always receive home delivery but 42 (21 %) consumers dont get home delivery. Out of the 42 consumers 24 of them never get home delivery. The company have to do something as the price of cylinders include home deliver charge.
When it comes to demanding extra money by the delivery man, 170 consumers out of 200 responded that the delivery man never demanded extra money. 30 consumers have face situation where delivery man have demanded extra money. The delivery man ask for carrying charge from the consumers and dont want to return the change. The consumers can lodge a complaint against such deliver man.
Out of 200 consumers 170 consumers are getting timely response in complaints redressed from the Distributor. Only 3 consumers have never got timely response on complains.
133 consumers out of 200 never find difficulty in booking refill over the phone but, 67 consumers are find difficulty in booking refill over the phone. Some consumers have even complained that instead of confirmation of booking refill over the phone by the staff the consumers do not get the cylinders. When the same consumers visit the office and enquire about the delay the staff say that there is no such booking been made by the consumer. The telephone booking facility is also one of the major services offered by the distributors and customer satisfaction depends a great deal on it.
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When it comes to courtesy level of various categories of staff of Indane Distributor about 93 % of consumers are very happy with the staff behavior. Courtesy level was measure for staff that makes booking over the phone, staff in the showroom and the delivery man. Few consumers have faced trouble with staff response and behavior. Strict action is taken on staff whose behavior is bad with consumers.
Out of 200 consumers 196 consumers always get seal on their cylinders and 199 consumers get cylinders along with safety cap. Those cylinders which do not have seal or safety cap can be returned and it will be replaced by the distributor. It is the responsibility of the consumer to check the cylinder at the time of delivery.
148 consumers out of 200 have always been getting prompt service from the customer service cell. The consumers can call the customer service cell for any queries at any time of the day. Such numbers have proved to be useful for consumers at the time of emergency like gas leak, etc.
When it comes to receiving periodic instruction from the Oil Company/Distributor regarding safety awareness 149 consumers out of 200 always receive such periodic instructions and 30 consumers receive such instruction mostly. Consumers are interested to receive such periodic safety instruction from the Indane.
Only 99 consumers out of 200 always receive periodic guidance from Oil Company/Distributor regarding Fuel Saving. Now days when fuel prices are increasing at a very fast rate consumers need to be aware about way to save LPG when ever possible. Very few consumers have idea about the basic fuel saving techniques.
Delivering refill to the consumers on time and booking refill over the phone are the two most important service offered by the distributors.
Many distributors have complains that they dont get the necessary equipments on time.
The distributors face a shortage of LPG cylinders supply for which there is delay in supply of refill to the consumers.
The distributors are willing to improve the services offered by them with the help of Indane Area office.
The delivery boy is not properly trained and some of them are also not literate. This has lead to major problem in many situations. Training of delivery boy is necessary so that their communication skills can be improved.
Many consumers are dissatisfied because they have been shifted to new distributors far away from their residence.
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Conclusions
Now a days LPG market is such that the demand of LPG is always more than its supply. In such a case LPG companies need to provide value added services to customers to increase consumer satisfaction and retain customers. Indane provides many services like home delivery, telephone booking and have recently started SMS booking. IOCL currently has almost 99 % of the market but, soon other competitors are likely to enter the market. The competitors will try to provide better value added services to attract customers. Customers will purchase LPG from the company which provides all of their requirements.
IOCL needs to work together with the distributors to increase consumer satisfaction and retain the customers when competitors enter the market.
As LPG cylinders are sold at a subsidized rate IndianOil is constantly trying new ways to generate non fuel revenue and is offering various products to the consumers. The consumers can purchase such products from the distributors booking office. To improve its earnings IOCL needs to generate additional revenue from non fuel products.
Majority of the consumers are getting their refill on time but, IOCL needs to improve as 31 % of consumers find difficulty in getting refill on time. This is one of the most important services offered by the distributors and customer satisfaction depends a lot on this service.
24 consumers out of 200 never get home delivery. The company have to do something as the price of cylinders include home deliver charge. Rebate must be given to the consumers who do not get home delivery. This would help the
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consumers who do not get home delivery as they can use the money for carrying charge.
30 consumers out of 200 have face situation where delivery man have demanded extra money. Consumers can lodge a complaint agaist delivery man who demand extra money.
67 consumers out of 200 are finding difficulty in booking refill over the phone. Many have complained that the phone line is always busy and the staffs do not pick up the phone. There are many complaints like non delivery of cylinders instead of confirmation of booking refill over the phone by the staff. When the same consumers visit the office and enquire about the delay the staff say that there is no such booking been made by the consumer. Such errors must be rectified by the distributors as consumer who stays far from the distributors office find difficult in visiting the showroom for booking their refill. Both the consumer and the distributors waste time and money.
196 consumers always get seal on their cylinders and 199 consumers get cylinders along with safety cap. The consumer who does not get seal and safety cap on the cylinder can get the cylinder replaced. It is the duty of the consumer to check the cylinder during delivery.
Consumer must contact the customer service cell during emergency or and clarification. Most of the consumers are happy with the service of the customer service cell.
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All consumers must be aware about the basic safety instruction given by the company but, 149 out of 200 consumers are aware of the basic safety instruction. Such awareness about safety could stop major accidents which results due to LPG miss use or leakage. IndianOil and the distributors must organize teams who will visit the consumer residence and educate them about safety procedures. Booklets must be distributed to the consumers. Safety instruction must be given to the consumer over the phone.
Only 99 consumers out of 200 always receive periodic guidance from Oil Company/Distributor regarding Fuel Saving. The company and the distributors must educate the consumer as very few consumers are aware about the basic techniques of fuel savings. Fuel prices are increasing at a very fast rate and it is essential for every consumer to save fuel when ever possible. IndianOil along with the distributors must organize teams who will visit the consumer residence and educate them about safety procedures. Booklets must be distributed to the consumers. Safety instruction must be given to the consumer over the phone.
The four distributors i.e. City Gas, Bhaskar Gas, Dipti Gas and Blue Flame offer similar level of service when it comes to delivering refill to the consumers on time but, they do not provide similar service when it comes to booking Refill over the Phone.
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Recommendations
Customer expectations are not merely limited to receiving timely refills, but look forward to value added services. Indane have to initiate these changes and have to take measures to standardize and benchmark all marketing activities such as checking weight of the cylinders and spreading safety and fuel saving awareness among consumers.
The company must take initiatives to improve the overall service of the distributors. The company can set targets for the distributors which, if achieved the distributor will be awarded in the form of increased commission rate, advertisement for the distributor, discounts on non fuel products, etc.
As Indane has a market share of almost 99 % the distributors must provided the services seven days a week to increase customer satisfaction.
The delivery man of all the distributors must be provided with proper uniform and i-card in order to minimize sales through road side vendors at very high prices. As the general public is unaware they must be educated through various means such as
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newspapers and television advertisements, by sending personal to the consumers residence and by telephonic conservation. The consumers must be guided about what action they should take when they see such illegal activities. Only then such illegal sale LPG can be stopped.
The company should organize regular tanning sessions for the distributors staff such as the manager, the staff at the booking counter, delivery boy and the mechanic so that they can give 100 % at work. This will help to increase consumer satisfaction.
The distributors must give weight checking equipments and leak checking equipments to the delivery man to make the process fast, reliable and safe.
Indane distributors must make the customer aware about the emergency number and the toll free number as very few people are aware about these numbers.
The consumers should be advice to book cylinders refill through telephone. This will save time for both the consumer and the distributors staff.
The company and distributors should organize timely safety camps for the consumers so that consumers become aware about the various safety steps they should take and what they should do so that major disasters are avoided.
Many commercial concerns use domestic cylinders instead of commercial cylinders. The government official and the company must work together to keep a
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check such illegal activities. The company must build up friendly relations with the government officials only then they can work together.
The consumers must be made aware about the customer service cell so that they can get prompt reply on any complaints.
Indane must take initiative to start online booking and customer service.
As fuel prices are increasing at a very fast rate it is very important for the consumers to save fuel and use LPG efficiently. The company should publish booklets which contain all the procedure of saving fuel and efficient use of LPG. Such booklets must be distributed to each and every consumer. The design of the booklet must such that the consumer can keep the booklet in a standing position in the kitchen. This will help the consumer to go through the booklet when ever he or she wants to.
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CHAPTER FIVE
Implications for Future Research
Appendices References
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Appendices
References
Books:
Market Research- An Applied Orientation {5th Edition} By Naresh K. Malhotra (Published by Pearson Education) Marketing Management{12th Edition} By Philip Kotler & Kevin Lane Keller (Published by Prentice-Hall India) Statistics for Business & Economics{ India Edition } By Anderson, Sweeney &Williams. (Published by Thomsan Southwestern)
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Journals:
Indane LPG Manual Hand Book. Annual report of IndianOil. Business Today.
Newspaper:
Sentinel Assam Tribunal
Websites:
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