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Monday, March 29, 1999

Buy oil, get car for free 

Mukta Magazine  
NEW DELHI, March 28: For the first time in its marketing history, the Rs 22,000-crore Bharat Petroleum is launching a mega sales promotion: 17 lakh raffle coupons, 2001 prizes (with a Maruti Zen as first prize) and a budget of Rs 17 lakh have been earmarked for the entire exercise. While BPCL has dabbled in consumer schemes earlier, the offers were restricted to small gifts like torches and wind cheaters.

The `Customer Bonanza' scheme, which will run from March 20 to April 19, will cover the entire northern belt, which has a network of 1,100 retail outlets. The modalities of the scheme? With every purchase of 1 litre or more of BPCL lubes (engine oil, gear oil, grease coolant, brake fluid, etc) the customer will get a coupon which will entitle him to participate in the raffle.

The 2001 prizes include, besides a Maruti Zen as first prize, two TVS Spectra scooters, four CTVs, six music systems, VIP suitcases, Kodak cameras, wrist watches and other goodies. The promotion will end with a computerised draw ofwinners on July 15.

Besides press advertisements, the scheme will be promoted through hoardings at petrol pumps, distribution of hand bills by drive-in salesmen (DSM) at petrol pumps, besides posters at high visibility points like parking lots and retail outlets.

Says Sanjay Krishnamurti, executive director, lubes: ``This is a part of the company's efforts to grow the market and enhance the customer base, for which it was necessary to think and operate like an FMCG.'' The aim was also to garner customer loyalty and shift the bazaar trade (non-petrol pump sales which have been blooming of late) to petrol pump sales, since BPCL's strength is its network of retail outlets (ROs). It has 4,500 ROs nationally of which 1,100 are in the north.

The signs of change in the PSU have been visible for some time, ever since it went in for a massive restructuring, following a two-year customer satisfaction project conducted by Arthur D. Little. Six SBUs were set up to focus on different areas like lubes, retail, LPG,refineries etc.

With an annual advertising budget of around Rs 11 crore, BPCL is now going in for systematic branded customer activities. A string of promotional initiatives have been planned since December 1998 to give more visibility to its lube brands Automol, Glide and Mak.

In December 1998 it organised a farmers mela in Patna which had attracted over 4,000 farmers. In January 1999 it sponsored the Automol Golf Invitation, which had an impressive turnout of bigwigs like Ajay Jadeja, besides top bureaucrats and businessmen. In April it plans to hold a `Mak mela' in Calcutta where 2,000 truckers and fleet owners have been invited.

These melas include activities like audio-visual presentations, free vehicle check-ups, and technical tips on vehicle maintenance-all aimed at building a high quality image and top-of-mind recall. It is also planning to advertise in a big way during the one-day international cricket matches.

The response to the consumer scheme in the first week has been `terrific' says thecompany. The target in terms of actual sales: at least a 30 per cent hike in sales and more specifically 1,000 kl during the 30-day tenure of the scheme, which it feels is `not an unrealistic target to achieve.'

Bharat Petroleum is the second largest oil company, with a market share of 26 per cent of the entire fuels and lubes market, against IOC's 50 per cent share. In the Rs 5,000-crore lubes market it enjoys a 10 per cent market share.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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