CHAPTER-1

INTRODUCTION

1. INRTODUCTION:-

Business is collective activity concerning a large number of people.

Profit earning cannot be the sole motive of business activity. Businessmen

have certain social responsibilities that must be met.

In olden days the important of the study of consumer behavior was

not realized by business and industry. It was taken for granted that

whatever is produced can be sold easily in the market.

Now, time has changed, recognitions have changed and

consideration have changed. All the businessman and the industrialists

have came to know that none of the marketing efforts could be successful

if the choice, taste and attitude of consumers are not properly considered.

So now stress is laid upon marketing research and the study of consumer

behavior. So now let us discuss in brief about each and every aspects of

marketing strategy that are been used recently.

2. MARKETING:-

Marketing can be defined as a social and managerial process through

which individuals and groups obtain what they need and want through

creating, offering and exchanging products of value with others.

This definition of marketing is on the following core concepts of

need, want and demand products, value, cost and satisfaction, exchange,

…1

transaction and relationship, markets, marketing and marketer. Marketing

means working with markets to actualize potential exchange for the

purpose of satisfying human needs.

3. MARKETING RESEARCH:-

Marketing research is the systematic design, collection, analysis and

reporting of data and findings, relevant to a specific marketing situation

facing the company. The function of marketing research is to provide

information that will assist marketing managers to recognize and react to

marketing opportunities and problems.

4. CONSUMER BUYING BEHAVIOUR:-

Consumer buying behavior is influenced by four major factors. They

are cultural factor, social factor, personal factor and psychological factors.

A study of these provides clues to reach and serve buyers more effectively.

Consumer buying behavior consists of four different types.

These types are:

Complex buying behavior

Dissonance – reducing buying behavior

Habitual buying behavior

Variety seeking buying behavior

These are based on whether the consumers have high or low

involvement in purchase and whether brands exhibit many or few

significant differences. Consumers go through complex buying behavior

when they are highly involved in purchases and aware of significant

differences among brands. In Dissonance buying behavior, consumer are

…2

highly involved in purchase but see little differences in the brands. Variety

seeking buying behavior is characterized by low involvement and

significant brand differences. Many products are brought under condition

of low involvement and insignificant brands differences and our of the

habit consumers by the same product frequently behavior of the consumers

constitutes the ground on which the marketing operate. The study of

consumers behavior initiated and developed by the trade in its attempt to

formulate marketing strategies had captures the market and conquered the

consumers. Study of consumer behavior plays an important role in the

determination of marketing policies of any enterprises.

Today the number of companies that are involved in ONGC (Oil &

Natural Gas Corporation) in India had increased the stiff competition is

there. Only an organization that is founded on effective marketing system

can stand in the market. Effective marketing system calls for research on

consumer behavior. Let us see the necessity of studying the marketing

strategy. In market many companies are having their Oil & Gas products

and all of them are trying to increase their respective sale. For that each

and every company has their own policies and marketing strategy to

confess the consumers.

Brand popularity too plays a vital role in the sale of the products.

Less known brands are not able to influence the market to greater extent

even if the standard companies manufacture them, while as the local brand

if they are population have large scale. Thus to capture the huge market

share study and updating of marketing is necessary also study of

consumer’s behavior is necessary being they are the end users of the

product.

…3

Modern marketing calls for firms to develop a new product, price it

attractively, making it accessible to target customers and more importantly

communicate with their customers. Communication is a very vital aspects

because those for whom a product is designed and developed have to told

about it if they are to buy it. Although the old adage says “Good wine

needs no bushel” –meaning that word –of mouth alone is all that will be

needed to create customers if a product has a competitive edge, this is not

generally so. Because, in today’s competitive scenario over and above the

word of communication, it is necessary for the seller to also use persuasive

communication to increase level of business and accelerate the diffusion

process. If title firm neglects ‘the problem to communication, it will wake

up to realize that their competitors (though late entrance) have admirable

positioned to capture that market with a me-too product that is supported

by persuasive communication techniques.

5. MEANING OF COMMUNICATION:-

Simply stated, communication is the transfer of information from the

sender to receive the information being understood by the receiver. There

is no doubt or exaggeration when we say that communication function is

the means by which organized activity is unified. The function of

communication is to provide a means by which people are linked together

with an organization to achieve a common goal. Marketing communication

can be defined as a phenomenon that starts with the presentation if ideas or

messages of information to a target market through various medias & cues,

with the intention of creating a positive impact and thus soliciting a

favorable response from the market towards the company’s producing and

…4

also simultaneously make provision for receiving market feedback to

enable them to improve & modify their product offering.

According to Philip Kotler. “A product is any thing that can be

offered to a market of attention acquisition, use or consumption that might

satisfy a want or needs. It includes physical objects, services, persons,

places, organization and ideas.” We should also define a product item

according to American Marketing Association “A product item is a distinct

unit that is distinguishable by size, price appearance or some other

attribute. An item is sometimes called a stock keeping unit”.

While development process of India in all aspect, concept of Oil & Gas

industries came into existence.

6. HISTORY OF COMAPANY:-

Indian Oil Corporation, or IndianOil, (NSE: IOC) is an Indian state-

owned oil and gas company. It is India’s largest commercial enterprise,

ranking 105th on the Fortune Global 500 list in 2009. IndianOil and its

subsidiaries account for a 47% share in the petroleum products market, 40%

share in refining capacity and 67% downstream sector pipelines capacity in

India. The Indian Oil Group of Companies owns and operates 10 of India's 19

refineries with a combined refining capacity of 60.2 million metric tons per

year.

IndianOil operates the largest and the widest network of fuel stations in

the country, numbering about 17606 (15557 regular ROs & 2049 Kissan Sewa

Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It

supplies Indane cooking gas to over 47.5 million households through a

network of 4,990 Indian distributors. In addition, IndianOil's Research and

…5

Development Center (R&D) at Faridabad supports, develops and provides the

necessary technology solutions to the operating divisions of the corporation

and its customers within the country and abroad. Subsequently, IndianOil

Technologies Limited - a wholly owned subsidiary, was set up in 2003, with a

vision to market the technologies developed at IndianOil's Research and

Development Center. It has been modeled on the R&D marketing arms of

Royal Dutch Shell and British Petroleum

…6

CHAPTER-2

OBJECTIVE OF STUDY

The dissertation, “Study of sale of petroleum products with Specific

Reference of Indian oil in Chadrapur city”, is purely research based on the

Indian oil and gas(IOCL) company, which supplies oil and gas to the

different stockiest in different areas.

MAIN OBJECTIVES ARE:-

There are following main objective of study .

1] To determine the consumer preference in quality product that gives more

mileage & long life to consumers vehicle.

2] To determine the standards of judging adopted by consumer in brand

choice.

3] To determine the factor affecting the dealer attitude towards various

brands

4] To determine the acceptable range of prices.

5] To determine the suitable to advertise the new product.

…7

CHAPTER-3

SCOPE OF STUDY

There are following points of scope of studies.:-

1] To check the approximate sales.

2] To check the fulfillment of demand by the company.

3] To check the distribution network from manufacture to ultimate

customer.

4] To check the successfulness of strategy adopted by the company.

5] To find out marketing strategy of ‘IOCL’ with respect to other oil & gas

companies.

…8

CHAPTER-4

HYPOTHESIS

1] Among all the oil & gas companies, the Indian oil corporation is most

popular in Chandrapur city.

2] Indian oil corporation which is a market leader in national is also

National Leader in Chandrapur city.

3] Advertisement of Indian oil product does effect on its sales in

Chandrapur City.

4] Indian oil [petroleum products] has most used in Chandrapur as compare

to any other oil companies petroleum products.

…9

CHAPTER-5

RESEARCH METHODOLOGY

The study is based on first hand data, collected from the field of

investigation which includes both collection of data from unpublished

Government records and contacting the workers working in the field and

information also collected from the Supervisors and Managerial Cadres.

The researcher of the present study employed scientific procedure of

collection of data and therefore this thesis consists of different types of

analytical approaches.

In order to obtain proper and factual information the researcher has

frequently visited the area of the present study and has undertaken to study of

problem in depth. He has also kept in mind the different angles used in

RESEARCH METHODOLOGY, because methodology is the heart as well as

brain to complete any research work. Without methodology no research can

be completed.

Methodology is the guidelines and road to completion of the research

project on sound footing through which you will gather the collections and

observations we adopted a certain method for the research project as under

which is found very suitable for the accomplishment of the work itself.

This part of the research is much vital, as greater care to be taken in

planning the study and collection of data, so that significant factors can be

included and answer obtained will be reliable and valid.

This selection deals with the different aspects of the study selected for

the research, which had to e studied for valid generalization about the

phenomena.

…10

It gives the exact meaning of various units measurements or terms used

for this purpose, definition of universe and information regarding the method

of data collection etc.

1. CONSTRUCTING THE RESEARCH

Data Sources Primary data, Secondary data

Research Approach Observation, focus group, surveys,

Experiments

Research Instrument Questionnaires, Mechanical Instruments

Contact Method Telephone, Mail, Personal

Source of Data

A research plan calls for gathering primary data, secondary data or both.

1. Primary Data

Primary data consists of original information gathered for the specific

purpose. Data was collected from the primary source i.e. Questionnaires was

developed with the help of which personal interviews were carried out. Also

along with this I carried out personal interviews with direct dealers and

consumers.

2. Secondary Data

Secondary data consists of information that already exist somewhere,

collected for another purpose. Secondary data provides a starting point for

research and offer advantage of ready availability. For secondary data I

realized on the company’s reports, Dealers list available in the company. I met

them personally and collected required data from them.

…11

Most marketing research involve primary data collection. The normal

procedure is to interview some people individually or in groups. For the

purpose of this dissertation both primary and secondary data are used. To

analyses consumer buying behavior a total of 50 consumers of various age

groups were interviewed. For calculating the market shares of various types of

Dealers and 50 consumers were interviewed.

2. METHODOLOGY:-

The data collected through primary as well as secondary sources in

secondary sources, commercial journals, magazines, newspaper, like

economic time were offered.

In the primary source, survey, method was adopted. Questionnaires

were farmed and visited to colleges academic institutions, offices, shops

etc.

…12

CHAPTER-6

COMPANY PROFILE

The No.1 Company:-

Indian Oil’s position as India’s Company remains unbeaten. It has

also moved up to 170th place in the Global 500 listing by FORTUNE

MAGAZINE in 2005 of the Largest Industrial Corporations in the world.

Among the 53 petroleum companies listed, it ranks 29th by sales and 19th in

terms of profits.

Indian Oil owns and operates six of India’s 10 refineries with a

refining capacity of 54.20 million tones of crude oil per annum which is

51.2% of the country’s total refining capacity. It has a cross-country

pipeline network of 3850 kms. Markets 57% if nation’s consumption of

petroleum products and is the canalizing agency for import of crude oil and

petroleum products.

Incorporated in 1959 as Indian Oil Company Limited, it became a

corporation in 1964, when the Indian Refineries Limited was merged with

the Company. The corporation has four Divisions-Refineries and pipelines,

Marketing, Assam Oil and Research and Development. The sophisticated

R&D Center is the only one of its kind in Asia. It’s wholly owned

subsidiary, Indian Oil Blending Limited has been blending a variety of

lubricants since 1964 and produces over 450 grades of lubricants and

greases which are marketed under the Servo Brand name.

…13

Servo Lubes-for every use:-

Indian Oil’s Servo brand of lubricants account for more than 50% of

the country’s market share. There is a SERVO lubricant for virtually every

application. During fiscal 2005, marketing of lubricants was introduced in

20 liter packages. A new four liter bag-in-box package was also introduced

for the premium engine oil Servo Superior Multigrade. To help

conservation of lubes, production and marketing of MIL-B monograde

engine oils has been phased out.

In Quest of Excellence:-

Indian Oil’s R & D center, the only one of its kind in Asia, has

helped inject dynamism in product development and technology

upgradation. It has developed over 1200 lube formulations and over 99%

of the international quality SERVO lubricants marketed today are

indigenous formulations. Over 250 approval have been received from

major national and international engine builders. During fiscal 1991 along,

the center developed 84 lubricant formulations including cold rolling oil

for steel plants, load carrying steam turbine oil for the INDIAN NAVY,

synthetic oil for application in compressors, hydraulic systems and metal

cutting. A high performance lithium complex and high temperature greases

for specific requirements of steel plants were also developed. For

optimizing Fluid Catalytic Cracking (FCC) plant performance to suit the

low conversion distillate mode of Indian FCC units, a steady state process

simulator called ‘FCC MOD’ was developed and installed at MATHURA

REFINERY.

Other R & D efforts during fiscal 2005 include doping motor

gasoline with multi-functional additives for improving its performance

…14

characteristics and experiments to study operability of diesel fuel doped

with Middle Distillate Flow Improver (MDFI) additives in the new

climatic chamber. Also installed during the year was a facility for

measuring exhaust emission from two stroke engines. The center, also

received approvals for 24 products on trial in different areas with

Railways, Defence, Steel Plants, Heavy Engineering Industry etc.

International Trade:-

As the nation’s canalizing agency, Indian Oil imported 24.13 million

tones of crude oil and 8.76 million tones of petroleum products at a cost of

Rs12,262 crores during fiscal 2005. about 2.67 million tones of surplus

petroleum products values at Rs.1039 crores of exported. During the year,

the corporation also diversified its sources of supplies of crude oil and

products.

Projects:-

Among the major projects completed during fiscal 1991 are – slack

wax augmentation facility at BARAUNI REFINERY, radial well ‘D’ at

GUJRAT REFINERY and LPG Bottling facility at SILCHAR in Assam

and Calicut in Kerala. The major projects on hand, include a 1.2 million

tones per year capacity Hydro-cracker, for the first time in the country, at

GUJRAT REFINERY to increase yield of distillate products.

Energy Conservation:-

Concerted efforts continue to be made by Indian oil to not only

achieve energy savings in all its areas of operations but also guide others

and promote the concept. Recurring annual fuel savings of over 127,000

…15

tones valued at Rs.36 crores have already been achieved through

replacement of low efficiency furnaces, optimization of heat exchange

system and provision of waste heat recovery facility. Other projects under

implementation at Gujrat, Mathura, Haldia, Panipat and Digboi Refineries

will yield further savings of 37,300 tones of fuel annually. Indian Oil, as a

pioneer of petroleum, conservation in the country, organized a mass

education conservation week during the year.

A media campaign was also launched to promote multigrade long

drain lubricants and use of energy efficient appliances like NUTAN

Kerosene Wick Stove. Assistance is also being rendered to industries for

replacement of inefficient boilers. Seventeen states have been adopted for a

concerted conservation action plan. A new fuel efficient LPG HOT

PLATE with a thermal efficiency of 73% has also been developed. The

corporation’s GUJRAT REFINERY was awarded by the Government for

“Best Insulation Effectiveness”. A new thrust has also been launched by

the corporation on adoption of renewable energy sources.

High Premium on Safety:-

Indian oil believes in maintaining the highest standards of safety

which enabled 85 units of the Marketing Division alone winning the

prestigious BRITISH SAFETY COUNCIL award for 2005. These include

54 bulk installations and depots, 17 bottling plants and 14 aviation fuel

stations. The “Sword of Honour” of British Safety Council was awarded to

the GUJRAT REFINERY for the best safety performance in 2004. The

“Award of Honour” from the National Safety Council, Chicago, USA was,

for the 6th consecutive year won by the Koyali-Ahmedabad pipeline. Indian

oil also won two of the Oil Industry Safety Directorate awards – “Best

…16

Overall Performance” to HALDIA REFINARY and the “Best LPG

Marketing Company” to the Marketing Division.

Environment Consciousness:-

Indian Oil’s firm commitment in keeping the environment clean,

green, and pure has seen it setting up pollution control cells at all its

refineries. Ambient air quality is continually monitored and effluent

discharge systematically treated. The treated effluents of Gujrat and

Mathura refineries are used for irrigation. An ecological park is being set

up at Mathura refinery and a 100 meter wide green belt is being established

at Gujrat Refinery. Occupational health centers are being set up at all

refineries and regular monitoring undertaken of work place environment.

Even noise pollution is being controlled. Tree plantation programmers are

undertaken by all units to help preserve the ecological balance.

Sharing its Expertise Abroad:-

Indian Oil lends its technological know how to other developing

countries in every area of petroleum Refining, Marketing and Distribution,

Research and Development, Finance and General Management. During

fiscal 1991, technical cooperation agreement was renewed with NEPAL

OIL CORPORATION for rendering assistance in aviation fuel handling

and maintaining their facilities at air fields in Nepal. Assistance also

continues to be rendered to MALDIVES AIRPORT AUTHORITY and

BHUTAN OIL CORPORATION. Another agreement has also been

signed with NEPAL OIL CORPORATION for assistance in blending of

lubricants. Sir Lanka Oil Corporation ltd. Fuel Station.

…17

Indian Oil continually creates a modern technological base to grow

self-reliant enrich the quality of life and earn foreign exchange for the

country.

Indian Oil Blending Limited:-

Indian Oil’s wholly owned subsidiary Indian Oil Blending Limited

earned a net profit of Rs.3.56 crore and declared a dividend of 20%

amounting to Rs.72 lakhs. Its lube blending plants at Mumbai and Calcutta

produced 2,48092kl and 1,33,561kl respectively, thereby achieving a

capacity utilization of 165.4 percent and 133.6 precent respectively. The

grease production at Vashi, Mumbai touched an all time high of 10,552

tones.

Board of Directors

B M Bansal

Chairman & Director (Planning & Business Development)

S V Narasimhan

Director (Finance)

G C Daga

Director (Marketing)

B N Bankapur

Director (Refineries)

K K Jha

Director (Pipelines)

…18

Dr. R K Malhotra

Director ( Research & Development)

Sudhir Bhalla

Director (Human Resources)

INDIAN OIL – AT A GLANCE

RANKS NO.1 COMPANY IN INDIA

Division Head Quarters

Marketing Mumbai

Refineries New Delhi

Research & Developments Faridabad

Assam Oil Division Digboi

Pipelines New Delhi

Indian Oil Blending Ltd. Mumbai

1. Head Office - Situated in Mumbai

2. Regional Office - 4

3. State Office - 15

4. Divisional Offices - 44

5. Indane Area Offices - 35

6. Depots - 162

7. Aun Fuelling Station - 94

8. LPG Bottling Plants - 87

9. Refineries - 10

…19

10. Refining capacity - 24.40 million tones

11. No. of Retail Outlets - 10228

12. No. of SKO/LDO dealership - 3553

13. No. of LPG distributorship - 4699

14. No. of consumer outlets - 4563

INDIAN OIL CORPORATION LIMITED

(Marketing Division)

Indian Oil Corporation Limited, marketing and distributing petroleum

products through its Marketing Division. The Marketing Division of the

Indian Oil Corporation has its Head Office at Mumbai.

Indian Oil Corporation Limited,

(Marketing Division)

G – 9, Ali Yavar Jung Marg,

Bandra (East),

Mumbai – 400051

For effective supervision of marketing, Indian Oil has its four Regional

Offices located at Mumbai, Delhi, Calcutta and Madras.

Western Region, Mumbai (Marketing Division) having nine Division

Offices at Mumbai, Pune, Ahemadabad, Bhopal, Rajkot, Surat, Nagpur,

Jabalpur, and Raipur. Western Region’s span of control covers whole

Maharashtra, Madhya Pradesh, Gujrat and Goa.

…20

ROLL OF MARKETING DIVISION:-

To receive the finished products from refineries by Pipeline/Rail/Road

and store them at their Installations, Terminals and Depots. From their

dispatch of these Petroleum Products by Rail or Road to their Consumers,

Private customers, Retail Outlets, according to their demands or indents. In

short, receipt of petroleum products in Bulk and distribution to its Consumers,

Retail Outlets and private customers.

NAGPUR DIVISIONAL OFFICE:-

Nagpur Divisional Office is one of the major and very important

Divisional Office of the Western Region and it is located in the center (Heart)

of the India. Nagpur Kivisional Office having 3 Bulk Storage Depots located

at Akola(Gaigaon), Chandrapur(Tadali), and Nagpur(Khapri). In addition to

this, two Aviation Fuel Stations at Nagpur and Aurangabad also coming in the

jurisdiction of Nagpur Divisional Office. One Small Can Filling Plant (SCFP)

at Khapri, Nagpur Divisional Office is headed by CDCSM & CDCSM. This

Divisional Office cater Vidarbha, Marathwada, Khndesh covering 15

Districts.

BULK STORAGE DEPOT TADALI (CHANDRAPUR);-

This is one of the major depot of Nagpur Divisional Office. It is situated

on Chandrapur Nagpur Highway and it is 15kms away from Chandrapur.

Tadali Depot commissioned in May 1994 in 35 acres of land. Tadali depot

handle MS, HSD, SKO. It caters, Chandraput, Chimur, Sironcha, Wani,

Gadchandur, Maregoan and Gadchiroli Districts. Tadali Depot takes care of

34 Retail Outlets and cousumers like MSEB, BILT, ACC, UltraTech,

Manickgarh, MCW, MEL, WCL, Ordance Factory, Power Grid, and other

…21

private consumers. Tadali Depot is headed by Sr. Depot Manager. Tadali

Depot receive petroleum products by Railway Tank Wagons from Manmad

Terminal.

About 121 grades of lubricants covering Automotive and Industrial

Lubricants, Greases, Metal working oils and special oils marketed by

Tadali Depot. Lube Oil barrels contains 205 liters, 207 liters and 210 liters

of lubricants and Grease Drums of 175, 180 and 182 kgs. Capacity.

…22

CHAPTER-7

PROFILE OF CHANDRAPUR CITY

* OVERVIEW OF CHANDRAPUR CITY:-

Chandrapur city is the biggest district in Maharashtra state. Covering

surface area of 29.498 1cm. chandrapur district remained undivided till 26 th

August 1982. when the district emerged Gadchiroli district occupy the area

16.434 sq.km. There are 13 Talukas in the district. They are Chandraput,

Bhadravati, Worora, Chimur, Nagbhid, Bramhapuri, Sindewahi, Mul,

Gondpipari, Rajura, and Ballarpur.

The district endowed with beautiful forest resources, the district is

know for the best quality at teak trees & species. The district is rich in

minerals, specially coals, iron, copper clay & lime stone. There was first

traced in act 1985 & iron deposits were treated in 1873. Paddy is the main

crop grown by the farmers culturally & educationally people were far away

from the main stream of life.

To exploit the rice natural resources & all avenues for economics

and industries development state Government has prepared a master plan

in 1960 and offered a number of privities and tax relief. Provided

incentives to the industries map of India, Since then the process caught

momentum till today. Now most of the region is in the state development.

Now there are more than sixty medium scale industries humaning the

district. Industries like Ballarpur Paper Mills, WCL industries, Thermal

Power Station, Electrosmelt Glass Factories, Rooting Files Plywood,

Ceramics etc.

…23

Moreover there are 585 small-scale industries. This has provided

employment to thousand of people in the district and engaged an different

posts. As far the Chandrapur city is conserved once it was the most

traditional & backward town surrounded by fort has now turned into busy

business and industrial centre. There are more than 25 big and medium

scale industries private as well as public sector and 244 small-scale

industries registered upto 78-79.

LARGE SCALE INDUSTRIES:-

Sr.No. Name of Industry No.of person

employed

1. Ballarpur Paper Mills, Ballarpur 4500

2. Asswociated Cement Company, Ghugus 1135

3. Maharashtra Elektrosmelt Ltd. ,Chandrapur 1044

4. UltraTech Cement Work, Awarpur 375

5. Electrolux Regrigerator, Worora 626

6. Mnikgarh Cement, Chandrapur ---

7. Ordnance Factory, Chanda, Bhadrawati ---

…24

Population Of Chandrapur City In Fast Rising As Indicated In

Followed Table

Year Total

1941

1951

1961

1971

1981

1991

2001

35,736

40,744

51,481

75,134

1,15,777

2,67,890

8,00,000

As we see above we come to know that population of Chandrapur

city is increasing day to day we found that various that various classes of

people live in Chandrapur city.

Due to increase in population Chandrapur city has opened a wide

field of the marketing of all fields. And that’s why the increase in

transport, and because that the Chandrapur city consume more petroleum

oil. Increasing in population brought an increase in demand and also

created demand of Petroleum , deasel, LPG etc.

It is found that there is an increase in personal income of the people

of city. Now people want to spend more and procedure more comforts. The

gives a new momentum to development of new marketing ideas.

Chandrapur being a city of district place all governments officers

established in separate complex. Famous Temple of traditional nature,

Churches, Mosques are located in the city as well.

…25

CHAPTER-8

ROLE OF ASVERTISEMENT

The word advertising originates from a Latin word ‘Advertire’

which means ‘to turn’. Therefore advertising means “Marketing to people to

turn them”.

1. DEFINITION:-

The American marketing Associate, Chicago has defined advertising

as “any paid of non-personal presentation or promotion of ideas, good or

services, by an identified sponsor.”

According to R. H. Cooey, “Advertising is mass, paid of personal

communication the ultimate purpose of which is the impart information,

develop attitudes and induce action beneficial to the advertiser.”

2.OBJECTIVES OF ADVERTISING:-

The whole of advertising effort has to be geared to again the

organization advertising goals. Therefore, effectiveness of advertising has

to be evaluated against the specific goals of advertising.

According to condiff still and Govarri, the objective of advertising

are:

1. To do the entire selling job (as in amil order marketing).

2. To introduce new product (by building awareness among potential

buyers)

3. To force middlemen to handle the product (pull strategy).

…26

4. To build brand preference and company image (thus marking it

difficult for middlemen to sell substitutes).

5. To remind users to buy the product (Reminder Advertising).

6. To public rationalizations for buying (i.e. a price change, a new

model of a new product).

7. Provide rationalizations for buying (i.e. socially acceptable excuses).

8. To combat or neutralize competitors adverting (competitive or

comparative advertising).

9. To improve the morale of the sales force and/or dealers (by showing

that company is doing its share of promotion).

10. To acquaint buyers and prospects with new user of the product ( to

extend the product life cycle).

4. EVALUATION OF ADVERTISING EFFECTIVENESS:-

Advertising involves major sums of money that can be misspent by

organizations due to various weaknesses. Expenditure on advertising

should not be a waste but-it should yield rich dividends. The ultimate

purpose of advertising to sell the product, ides or service.

Ability to generate sales is the test of an advertisement. Once a

strong like is established between the need and the name, advertisement

can induce buying action. Success or failure of an advertisement ultimately

depends upon the effectiveness communication of desired information and

attitudes. The communication i.e. the flow of information understanding

must be to the right people, at the right time and at the right cost. If an

advertisement creates anticipated sales volume as per our sales forecast, it

means that the advertisement is very effectiveness and efficient. We cannot

…27

afford to spend on wrong or effective less advertising hence, we have to

check the effectiveness of our advertising.

5.TECHNIQUES FOR EVALUTION OF ADVERTISING

EFFECTIVENESS:-

If advertising is regarded as a sales tool in our advertising campaign,

the effectiveness of that campaign should be measured in terms of sales

result. It is goal is to achieve a specific change in consumers, awareness,

attitude of behavior, then the measurement of the advertising effort should

be in terms of changing consumers attitudes. According there are two

techniques for measuring and effectiveness viz.

1. Communication Effect Research

2. Sakes Effect Research

6. MEASURING TECHNIQUES USED FOR ALUATING

ADVERTISING EFFECTIVENESS INCLUDE:-

6.1Gallup Robinson Impact Test :-

This test employs the aided recall test method. A responded is given

a magazine and asked to recall anything he remembers by seeing it.

6.2Triple Association Test :-

This test measures the degree of brand learning among its users. The

respondent is provided which clues or ideas with which he is asked to

associate a brand name. It also called Theme Contest Test.

…28

6.3Error In Recognition Measurement :-

Under this techniques advertisement are shown to the respondent at

high spread either in whole or it part and he is later asked to furnish further

information on these advertisement.

6.4The Liker Scale :-

This is an attitude measurement instrument. The method requires

collection of a large number of statement relevant to the attitude under

investigation. Then a panel of judge is asked to rank the statements and

indicates the extent of their agreement with given statement. Each

statement it assigned a numerical value and the score is calculated on the

basis of that value for all the statement. The advertisement with the highest

score is considered to be more effective and efficient.

Types Of Product:-

1) MS – Motor Spirit (petrol)

2) HSD – High Speed Diesel

3) SKO – Super kerosene Oil

4) LPG – Light Petroleum Gas

5) Marine Fuels & Lubricants

6) ATF/Jet Fuel

7) Indian Oil Aviation Service

8) Bitamen

9) Servo Lubricants/Greases

…29

…30

CHAPTER-9

DATA ANALYSIS

According to the present market positions there are many different

kinds of factors that are responsible for the sale ratio of the product and plays

the important role in the growth of the company.

Different companies has different terminology for the sale of their

product in the market or to capture the market.

1. Respondents in Chandrapur City to the Oil Companys :-

Table – 1

Sr. No. Oil Company’s % of Respondents

1.

2.

3.

4.

Indian Oil Corporation Ltd.

Hindustan Petroleum Corporation Ltd.

Bharat Petroleum Corporation Ltd.

Relience Petroleum Ltd.

45

30

25

00

The data presented in the table – 1 show that the most

response gets to Indian Oil Corporation ltd. i.e. 45% and it is closely followed

by the Hindustan Petroleum Ltd. 30% and Bharat Petroleum Ltd. 25%. The

Relience Petroleum not working in Chandrapur.

…31

Respondents in Percentage

…32

2. Selling Information in Chandrapur City:-

Report of Retail Out let in Chandrapur:-

MS – Motor Spirit (petrol)

HSD – High Speed Diesel

SKO – Super kerosene Oil

LPG – Light Petroleum Gas

Table – 2

Sr.

No.

Retail Out Let

(Dealers Service Station)

MS

(inkiloliter

)

HSD

(in

kiloliter)

SKO

(in

kiloliter)

LPG

(in

Refill)

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

Adarsh Service Station

Prasanna Service Station

Modern Service Station

Shubham Service Station

Gurukrupa Service Station

Shiva Automobile, Rajura

Balaji Petroleum, Mul

Shree Servo, Gangalwadi

Aditya Servo, Sindewahi

Prabhakar Petroleum, Tadodhi

Shrivastava Petroleum, Marta

Narendra Kissan Seva, Pombhurna

Om Sai Kissan, Madheri

Pornima Petroleum, Khambada

Goldan Servo, Sakarwahi

Shubham Service Station, Ghugus

11280

576

432

144

288

864

576

576

576

864

288

288

288

216

288

1008

15600

576

21600

432

1800

3600

1296

576

576

1440

720

720

720

576

1728

9600

…33

17.

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

28.

29.

30.

Sharma Brother, Chandrapur

Sharma Brother, Gadchiroli

Vilas Kerosene Agency

V.C.M.S.

Mehta & Son’s Agency

Venkatesh Oil Agency

Mahesh Oil Company

G. G. Bakade Agency

Chandake Oil Agency

Saroj Gas Agency

Kamal Gas Agency

Chetan Gas Agency

Durgapur Gas Agency

M.E.L. Gas Agency

1440

3480

2880

2160

1440

2160

2160

2160

2160

20,000

10,000

20,000

10000

10000

…34

Report of Direct Customers in Chandrapur:-

Table – 3

Sr.

No.

Customers

MS(Petrol)in

KL

HSD(Diesel)in

KL

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

MS-RTC (ST), Chimur

MS-RTC (ST), Chandrapur

Maratha Cement

UltraTech Cement

ACC Cement

NTPC

Maharashtra Elektrosmelt Ltd.

CTPS, Durgapur

WCL Tadali Workshop

Ordnance Factory

288

144

1152

2880

1728

1728

1440

144

864

720

144

432

…35

3. Total Sale of Product:-

Table – 4

Sr.No. Product

Sale in kiloliter/Refills

2007 2008 2009

1.

2.

3.

4.

HSD(diesel)

MS(petrol)

SKO(kerosene)

LPG

60,500 kl

28,950 kl

29,460 kl

55,400 rf

61,580 kl

30,540 kl

30,500 kl

58,000 rf

63,480 kl

35,976 kl

28,950 kl

60,000 rf

2007

…36

2008

2009

Total Sale of LPG

…37

CHAPTER-10

…38

CONCLUSION

From the survey done by me I have reached to the following conclusion:-

The present study is related to the selling of Indian Oil Corporation Ltd.

energy brands in Chandrapur city. These is most use of energy brands in

Chandrapur for the vehicle, home, and industries etc. The chandrapur is know

as a industrial place and there is a more than 100 Large & Small scale

industries, and maximum industries preferred Indian Oil’s brand. There is

more than 65% HSD(diesel) used for the Industries, so there is the large

market for Indian Oil Corporation ltd.

Chandrapur city has increased in size and population the need of the

residents to have means of transport(vehicle) also increased, there is big traffic

on city road and ‘Adarsh service station’ sale 32 kiloliter petrol per day this is

the most petrol selling service station of Indian Oil. There is large

computation between the transport companies and because of such

computation the most of diesel also consume by the Transport company, and

according to study there is maximum transport companies preferred to Indian

Oil energy brands like Diesel, Servo engine Oil, and Servo lubricants etc.

IndianOil has a keen customer focus and a formidable network of

customer touch-points dotting the landscape across urban and rural area. It has

more than 30 petrol & diesel stations, including more than 10 Kisan Seva

Kendras (KSKs) in the Chandrapur City. And one bulk storage terminals &

depots in Tadaly (Chandrapur), 5 LPGas Agencies, IndianOil services every

nook and corner of the City.

…39

It has a portfolio of powerful and much-loved energy brands that

includes Indane LPGas, SERVO lubricants, XtraPremium petrol, XtraMile

diesel, etc.

While taking personal interviews I observed that Dealers and Marketing

Officers of Indian Oil Corporation Ltd. gives more important to the quality

services and marketing approach.

CHAPTER-11

BIBLIOGRAPHY

…40

BOOK NAME AUTHOR

Marketing Principal & Techniques Thakur

Modern Marketing Principal & Practice R.S.N.

Research Method In Marketing & Management B.N. Sethna

Marketing Management Sexena

Marketing Research David J. Luck

Marketing Research Journal Philip Kotler

Foundation of Advertising Theory &Practice Ghunawall

Life Style Management Mach Hanon

Advertising Management Rathor

Marketing Concept & Cases S. C. Mehta

CHAPTER-12

QUESTIONARY

…41

DEALER QUESTIONATIES

Q.1) Name of Dealer

Q.2) Address of Dealer

Q.3) which media of you chose for advertising?

a) News Paper b) Magazine c) Holdings

Q.4) Which product sale most?

a) Petrol b) LPG Gas c) Diesel

Q.5)Who is you main competitor?

a) HPCL b) BPCL

Q.6) What is position of percentage of your Service Station for Session 2010?

a) Good b) Satisfied c) Unsatisfied d) Very Good

Q.7) Which Marketing Strategy you are using?

a) Diversification b) Social Responsibility c) Communicate

Q.8) What policy you are using to compare with other competitor?

a) Competitors strength & weakness b) Facing competition

Q.9) Yearly sales Figure :-

2006-----2007

2007-----2008

…42

2008-----2009

Q.10) During which month is the demand greatest?

Q.11) During which month is the demand least?

Q.12) Which of the following give best outcome?

a) Advertisement b) 24*7 service

c) Quality of product d) Any Other

Q.13) Is there any impact of TV or Other advertisement on the sale?

a) Yes b) No

Q.14) Is the customer satisfied by the serviced?

a) Yes b) No

CUSTOMER QUESTIONATIES

Q.1) Name Of Customer:-

…43

Q.2) Address of the Customer:-

Q.3) Financial position of Customer:-

Q.4) Which Factor influence you to purchase from IOCL?

Q.5) Which Factor influence you don’t want to purchase from IOCL?

Q.6) Please specify the reason and factor which influence you to purchase

from IOCL?

Q.7) Have you visited to other company in your city for details information

About Petroleum Product?

Q.8) What is your opinion about the Indian Oil Bulk Storage Depot regarding

Service during sales & after sales?

…44