News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 20 years ago
Rediff.com  » Business » Wooing customers, BPCL style

Wooing customers, BPCL style

By Sambit Saha in Kolkata
November 05, 2003 11:17 IST
Get Rediff News in your Inbox:

Next time you pick up the telephone to book an LPG cylinder, you can place orders for household grocery as well.

While buying domestic gas, consumers can now buy household items a discounted price with home delivery free of cost.

This service represents the new face customer relationship management, as fuel distribution companies vie to stay ahead of the competition and protect market share in days ahead.

The companies are increasingly looking at options to induce brand loyalty among consumers through such steps.

Bharat Petroleum Corporation Ltd, for instance, has already started such a service with Sangam Direct in Mumbai.

"We have plans to roll out such service in India in phases. The idea is to retain customer by offering value added service," a senior BPCL official said.

Mumbai was the pilot project as telemarketing has picked up there. "LPG delivery boy is one of the very few allowed inside the kitchen of our residence. We would like to capitalize on that. Why not also deliver grocery items along with the gas?" K S Shankaran, chief strategic planning manager (LPG), BPCL, asked.

On national level, BPCL is offering cooking appliances like pressure cookers and non-stick kitchenware through its outlets.

It has entered into a procurement agreement with TTK, Hawkins and others to offer special deals to BPCL customers. It is also planning to come out with LPG run geyser, genset and light shortly.

"Since BPCL is buying in bulk, it is getting a good discount which is being passed on to the consumer. It works both ways. While it creates stronger brand loyalty, it also keeps dealers happy as he gets something extra," Shyamal Bhattacharya, deputy general manager (LPG), said.

At many petrol pumps, non-fuel activities like retailing have become increasingly common, in anticipation of entry of private players in the petro marketing arena. The competition among state-owned oil marketing companies (OMCs) is also quite high.

OMCs are now passing through a phase where the more they sell LPG, the greater is the erosion in the bottomline on account of the subsidy paid to the consumer. OMCs are now losing Rs 75 on every cylinder sold.

Non-LPG activities like kitchen supplies have no direct connection with the loss incurred by OMCs on sale of LPG below import parity price.

However, the subsidy has prevented private players from entering the domestic LPG market in a big way.

"The situation will change in a few years and private companies will come in. Our endeavor is to build loyalty among consumer so that they remain with BPCL in future as well," Shankaran said.

Get Rediff News in your Inbox:
Sambit Saha in Kolkata
 

Moneywiz Live!