The Marketing mix of Bharat Petroleum Corporation Limited (BCPL) analyses the 7Ps of BCPL, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of BCPL. Bharat Petroleum Corporation Limited is a public-sector oil and gas company. The company, with an employee strength of 13, 535 is based in Mumbai and has two large refineries located at Kochi and Mumbai. BPCL is listed on the Bombay Stock Exchange and National Stock Exchange.
The history of oil and gas companies in India goes back to 1889 when Burmah Oil Company was a prominent performer in the premier South Asian oil and gas production market. This was also the time of massive industrial development.
In 1928, the Asiatic Petroleum Company joined hands with Burmah Oil Company and formed Shell Oil Storage and the significant Distributing Company of India Limited. The government eventually took over Burmah Shell to form Burmah Refineries Limited on January 24, 1976. On August 1, 1977, Burmah Refineries Limited was renamed Bharat Petroleum Corporation Limited.
The company has an operating income of Rs. 9,777 crores. It also holds the distinction of being the first company to process crude oil in Bombay High.
Its chief competitors are as follows-
- Essar Oil
- Mahanagar Gas
About Bharat Petroleum Corporation Limited (BPCL)
- Type: Indian Central Public Sector
- Industry: Oil and gas
- Founded: 1964
- Founder: Government of India
- Headquarters: Mumbai, India
- Area served: India
- Key people: S. M. Vaidya (Chairman) and Arun Kumar Singh (CEO)
- Number of employees: 27,000+
Table of Contents
BPCL Product Strategy
Bharat Petroleum Corporation Limited (BPCL) is India’s leading state-controlled oil and gas company.
- Fuel Products: Petrol (Gasoline): Used in cars, motorcycles, and small engines; Diesel: Used in vehicles, generators, and for industrial purposes; Aviation Turbine Fuel (ATF): Fuel for aircraft; Liquefied Petroleum Gas (LPG): Commonly used as cooking gas in households and industries.
- Lubricants and Greases: Automotive Lubricants are used in vehicles for engine oil, gear oil, etc. Industrial Lubricants are used in various industrial applications. Greases are used in automotive and industrial applications for lubrication.
- Petrochemical Products: Paraffin Wax: Used in candles, coating, packaging, etc. Aromatics: Benzene, Toluene, etc., used in making chemicals, dyes, etc. Propylene: Used in plastics, foams, and various chemicals.
- Unique Products: Bitumen is used in road construction and waterproofing; Sulphur is used in manufacturing fertilizers, chemicals, and rubber industries.
- Gas: Natural Gas: Used for cooking, heating, and industries; Industrial Gases: Like Nitrogen, used in various industrial processes.
- Renewable Energy: Biofuels: Like ethanol-blended petrol and biodiesel; Solar Energy: BPCL also invests in solar power projects.
This mix can vary slightly based on the market demand, technological advancements, competition, and the company’s strategic direction. Additionally, BPCL operates refineries and a network of pipelines to transport crude oil and its products.
BPCL Pricing Strategy
- Market-Based Pricing: BPCL aligns its pricing strategy with market dynamics, adjusting prices based on global crude oil prices, supply and demand fluctuations, and the competitive landscape. This responsiveness ensures that BPCL remains competitive while also managing profitability.
- Regulatory Compliance: In India, fuel prices are significantly influenced by government policies and regulations. BPCL ensures compliance with these guidelines while setting prices, which includes incorporating various taxes and duties imposed by the government.
- Competitive Analysis: BPCL consistently monitors the pricing strategies of its competitors in the oil and gas industry. This competitive benchmarking helps position their products effectively in the market, ensuring they offer value for money without compromising on quality.
- Dynamic Pricing Models: Utilizing dynamic pricing models, BPCL adjusts fuel prices regularly, sometimes daily, based on the changes in international oil prices and exchange rates. This approach helps manage the oil market’s volatility and aligns with global pricing trends.
- Segmented Pricing Strategy: BPCL employs a segmented pricing approach for different products and consumer segments. For instance, industrial clients might be offered prices different from retail consumers based on bulk purchasing, long-term contracts, or specific product requirements.
BPCL’s pricing strategy is a balanced amalgamation of market-based pricing, regulatory adherence, competitive awareness, dynamic adjustments, promotions, and segmentation. This approach ensures business sustainability and compliance and caters to diverse consumer needs, maintaining a solid market position.
BPCL Place Strategy
BPCL has two significant refineries based out of Mumbai and Kochi. It also has refineries in Bina, Madhya Pradesh, and Numaligarh, Assam.
The company sells its products in India, Nepal, Bangladesh and East Africa. It is in the business of refining and exporting lubes to East African countries like Kenya, Uganda, and Tanzania. The company is also on its way to establishing the first cross-country pipeline connecting to Bangladesh.
Here’s the place strategy of BPCL.
- Wide Distribution Network: BPCL has established a vast and efficient distribution network across India, encompassing retail outlets, LPG distributorships, and aviation service stations. This network ensures the accessibility and availability of their products to a diverse customer base.
- Strategic Location of Refineries: BPCL’s refineries are strategically located in regions like Mumbai and Kochi, facilitating easy access to major ports for import/export purposes and efficient distribution across key domestic markets.
- Pipeline Infrastructure: The company invests in an extensive pipeline infrastructure to transport crude oil and finished products efficiently. This network reduces transportation costs and enhances supply chain reliability.
- Urban and Rural Penetration: BPCL focuses on balancing its presence in both urban and rural areas, catering to the energy needs of a wide demographic. This includes tailoring services and products to meet the specific needs of different regions.
- Adoption of Digital and Technological Innovations: Embracing digital technology, BPCL incorporates advanced methods like digital payments and online booking systems in their retail outlets and customer service centers. This approach modernizes the customer experience and improves operational efficiency.
BPCL Promotion Strategy
The company runs loyalty Programs like Petrocard and Smart Fleet to build and create a more substantial customer base. Smart Fleet is a mobile application that provides customers with a one-stop solution for all fuel and service needs. It is customized to collect the customer’s details and provide them with the information needed. Petrocard, on the other hand, is a loyalty program that rewards customers with Petro miles each time they purchase from a BPCL fuel station.
It is also available on other social media networking sites like Facebook, Twitter, and LinkedIn. As a company, it believes in being accessible to the public. Its slogan- ‘energizing lives, pure for sure,’ stands for what the company is- a quality service provider giving light and power to millions daily.
The company is also involved in activities related to Corporate Social Responsibilities. It has thereby built a respectable reputation among brands as a Fortune 500 company where customer centricity and societal welfare are the prime focus.
Some Recent Video ads and Print ads for BPCL are:
BPCL People Strategy
When discussing the “People” aspect of the Service Marketing Mix for Bharat Petroleum Corporation Limited (BPCL), it’s essential to consider various factors contributing to how the company’s personnel impact its service delivery and overall customer satisfaction. The “People” component is crucial as it encompasses the organization’s employees, management, and culture, all of which play a significant role in the service experience of individual customers. Here are some points to consider regarding the “People” of BPCL:
- Employee Training and Development: BPCL strongly emphasizes training and developing its workforce. This includes technical training, customer service training, and safety protocols to ensure employees are well-equipped to meet the high standards expected in the oil and gas industry.
- Customer Service Orientation: The company fosters a customer-centric culture among its employees. This means that from frontline staff to top management, there is a consistent focus on understanding and meeting the needs of their customers, ensuring high satisfaction levels.
- Diverse and Skilled Workforce: BPCL’s workforce is diverse, with employees from various backgrounds and possessing a wide range of skills. This diversity enables BPCL to understand and cater to a broad spectrum of customer needs and preferences.
- Employee Engagement and Satisfaction: BPCL recognizes the importance of employee satisfaction and engagement for delivering quality service. The company invests in initiatives to keep its workforce motivated and engaged, understanding that satisfied employees are more likely to provide superior customer service.
- Leadership and Management Practices: Leadership within BPCL is geared towards fostering a positive work environment and promoting a culture of innovation and continuous improvement. Good leadership practices are crucial for effective service delivery and inspiring employees to achieve their best.
- Safety and Ethical Standards: Employees at BPCL are expected to adhere to high safety and ethical standards. This commitment to safety and ethics protects the workforce and the environment and builds trust with customers and stakeholders.
- Employee Empowerment: BPCL empowers its employees by giving them the authority to make decisions that improve customer service. This empowerment allows for more responsive and personalized service, enhancing the customer experience.
- Teamwork and Collaboration: Effective teamwork and collaboration among employees across different levels and departments of BPCL are crucial for seamless service delivery. The company encourages a collaborative culture where sharing knowledge and best practices is the norm.
BPCL Process Strategy
The “Process” component of the Service Marketing Mix for Bharat Petroleum Corporation Limited (BPCL) refers to the procedures, mechanisms, and flow of activities consumed by petroleum products and services. This aspect ensures efficiency, customer satisfaction, and service quality. Here are several points that highlight the “Process” aspect of BPCL’s Service Marketing Mix:
- Service Design and Development: BPCL follows a structured approach to service design and development, ensuring its services meet the market’s evolving needs and regulatory standards. This process involves market research, feasibility studies, and pilot testing before full-scale implementation.
- Customer Service Processes: BPCL has established precise and efficient customer service processes, including customer inquiry handling, complaint resolution, and feedback mechanisms. These processes are designed to be customer-friendly and to ensure quick and effective resolution of any issues or queries.
- Billing and Payment Systems: The company uses modern and secure billing and payment systems, allowing customers to make payments through various channels such as online banking, mobile apps, and physical outlets. This flexibility in payment options enhances customer convenience and satisfaction.
- Safety and Quality Assurance: BPCL emphasizes safety and quality assurance throughout its service delivery processes. This includes strict adherence to safety protocols, regular maintenance and inspections, and quality checks to maintain the highest standards.
- Supply Chain and Logistics Management: Efficient supply chain and logistics management are critical for BPCL, given the nature of its products and services. The company employs advanced logistics solutions to ensure its products’ timely and safe delivery to various distribution points and, ultimately, to the consumers.
- Technology Integration: BPCL integrates technology into its service processes, utilizing data analytics, IoT (Internet of Things), and AI (Artificial Intelligence) to optimize operations, enhance customer experience, and predict future trends. This digital transformation enables BPCL to stay competitive and meet the demands of a rapidly changing market.
- Environmental and Regulatory Compliance: The process of service delivery at BPCL is also designed to ensure compliance with environmental regulations and standards. This includes waste management, emissions control, and eco-friendly technologies and practices.
- Feedback and Continuous Improvement: BPCL systematically collects and analyzes customer feedback, which drives continuous improvement in service delivery. This involves regularly reviewing processes and customer satisfaction surveys and incorporating input into service design and delivery enhancements.
- Training and Development: Recognizing the importance of skilled personnel in delivering high-quality services, BPCL invests in its employees’ continuous training and development programs. This ensures that staff are up-to-date with the latest technologies, safety standards, and customer service practices.
- Emergency Response and Crisis Management: BPCL has established emergency response and crisis management processes to deal with unexpected accidents, natural disasters, or supply disruptions. These processes are critical for minimizing impacts on service delivery and ensuring the safety of employees and customers.
BPCL Physical Evidence Strategy
The “Physical Evidence” component of the Service Marketing Mix refers to the environment in which the service is delivered, along with any tangible elements that facilitate the service or help consumers evaluate the service. For Bharat Petroleum Corporation Limited (BPCL), physical evidence is critical in shaping customer perceptions and experiences of new products. Here are key points that highlight the “Physical Evidence” aspect of BPCL’s Service Marketing Mix:
- Retail Outlets and Fuel Stations: BPCL’s retail outlets and fuel stations are the most visible form of physical evidence. Their design, cleanliness, branding, and the availability of facilities (like air, water, and restrooms) significantly impact customer perceptions and satisfaction.
- Branding and Signage: The company’s branding and signage at various locations, including fuel stations, offices, and authorized dealers, help create a strong brand image and assist customers in identifying BPCL services quickly.
- Service Equipment and Technology: The modern and well-maintained equipment at BPCL’s service points, such as fuel dispensers, air machines, and digital display boards, provide customers with a sense of reliability and trust in the company’s services.
- Corporate Website and Mobile Apps: BPCL’s online presence, through its corporate website and mobile applications, is evidence of its commitment to providing convenient and modern customer services. These digital platforms are designed for ease of use and provide comprehensive information about products, services, and customer support.
- Customer Service Facilities: Customer service facilities, including call centers and customer support desks at retail outlets, provide a tangible touchpoint for customers to seek information, lodge complaints, or provide feedback.
- Uniforms of Employees: The uniforms worn by BPCL employees at retail outlets and other service points offer a visual cue about the company’s professionalism and commitment to quality service.
- Marketing and Promotional Material: Printed and digital marketing materials, such as brochures, banners, and advertisements, not only promote BPCL’s services but also help create a tangible connection with the brand.
- Safety and Quality Certifications: Displaying safety and quality certifications at BPCL facilities assures customers of the company’s adherence to industry standards and its focus on delivering safe, high-quality services.
- Cleanliness and Ambiance: The cleanliness and ambiance of BPCL’s facilities, including waiting areas, restrooms, and service counters, significantly influence customer satisfaction and perception of the brand.
- Corporate Social Responsibility (CSR) Initiatives: Tangible evidence of BPCL’s CSR initiatives, such as community development projects, environmental conservation efforts, and support for education and health programs, help in building a positive brand image and demonstrating the company’s values to customers and stakeholders.
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