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Petro Retailing Business-UPES-2-J13

Petro Retailing Business-UPES-2-J13

Section A (20 Marks)

Write short notes on any four of the following:

  1. Types of original producers of crude oil
  2. OPEC’s Oil Policy
  3. Market structure of oil industry
  4. Role of brand in petro retailing
  5. Concept of import parity price


Section B (30 marks)

(Attempt any three)

  1. What are the fundamental factors responsible for affecting petroleum prices?
  2. Highlight those areas of Indian refineries which need certain actions to be taken of.
  3. Discuss the marketing strategies and procedures of crude oil.
  4. What are the key emerging trends in global upstream oil industry?


Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)

Read the case “     ” and answer the following questions:

Case Study: Club HP

High – quality personalized “Vehicle and Consumer Care”

A part of HPCL’s strategic retail marketing initiative that seeks to break out of traditional fuel retailing, our new Retail Brand ”Club HP” assures high – quality personalized ”Vehicle and Consumer Care” through a select set of outlets.

Developed after an exhaustive research of over a year which included collecting feedback from over 13,000 respondents in several key markets across the country, the “Club HP” concept aims to provide the assurance of “Quick Fills”, “Expert, Personalised Service”, “Total Vehicle Management” and “Consumer Conveniences”.

While designing the bouquet of services for Club HP outlets, we have relied upon the feedback received directly from consumers. We realize that consumers are highly conscious of the fuel that goes into their vehicles – each ”Club HP” outlet carries the assurance of HPCL’s ‘Good Fuel Promise’ and delivers the right quality and quantity of the products on offer. Fuel is delivered to these outlets in tank trucks fitted with tamper proof locks and a high degree of control is kept by the HPCL staff to ensure that quality standards are strictly enforced.

The ”Club HP” concept also recognizes the fact that the consumer today places very high importance on vehicle care and at the same time expects other value added services from a fuel retail outlet that help him take care of diverse activities under one roof and in the shortest possible time. The Club HP outlets provide a distinct set of basic and value added offerings which include “Efficient & Expert Service”, “Quick Care Point”, “Digital Air Towers”, “Vehicle Finance and Insurance related assistance”, “Bills Payment facilities”, “Refreshments”, “HPCL – ICICI Credit Cards” and a host of other amenities.

To deliver the many conveniences and services, we have associated with leading companies like Coca Cola India, ICICI Bank, Fed Ex, Western Union Money Transfer, Café Coffee Day, US Pizza, Skypak and many more. We are also forging service specific alliances with several automobile companies and OEMs like Tata Motors to jointly identify ”Club HP” outlets, which could qualify as “Authorised Service Centers” for leading automobile brands.

The roll out of ”Club HP” began in a phased manner, initially targeting 85 outlets in the cities of Mumbai, Delhi, Bangalore and Kolkata. Encouraged by the initial experience, the “Club HP” brand has been quickly expanded to cover over 1000 outlets in all major cities and towns across India. The distinctive red and blue Club HP logo is an all too familiar symbol inviting motorists looking for a quick and refreshing fuelling experience.

“Club HP” outlets are categorized as Standard, Mega and Max depending on the levels of services and amenities available. Each outlet will offer a bouquet of standardized services to consumers, depending upon market requirements and logistical abilities.

?         Vehicle Care: The Club HP outlets have been carefully selected to ensure that they can offer high quality vehicle care. Each Club HP Mega and Max outlet is equipped with a service station. In addition, the outlets will also provide vehicle consumable and accessories, all under one roof. More and more outlets will progressively upgrade to “Authorised Service Stations” as part of our association with various vehicle manufacturers.

?         Quick Care Points: Consumers are offered a free check up of vital elements such as engine oil, brake oil, battery water, coolant, fan belt, radiator hose etc. by the specially trained “Club HP” attendants. In addition, a quick inspection of the tyres is done and recommendations given in case any immediate action is required.

?         Digital Air Towers: The performance and safety of new generation cars depend a lot on the correct air pressure maintained in the tyres. The specially designed digital air pressure equipment not only ensures accurate air pressure in the shortest time but also adds to the comfort and safety of travel.

?         ‘Good Fuel Promise’ Towers: Consumers are offered the facility to personally conduct simple tests with the help of specially designed standard apparatus. A simple procedure booklet is also provided to help anyone check the quality and quantity of fuel. The consumers are also invited to fill in the printed certificate booklet which will be available at all “Club HP” outlets in order to record their assessment. This feedback is regularly screened by the HPCL team to plan remedial actions or service upgrades in accordance.

?         Vehicle Finance and Insurance Related Counsel: HPCL has tied up with leading vehicle insurance and finance service providers for these activities which include assistance towards issuance and renewal of policies as well as extension of loans for purchase of new or second hand vehicles.

?         ATMs: HPCL has taken the lead in providing ATM facilities at its outlets in association with leading banks and is targeting over 400 ATMs very soon. Select Club HP outlets have already been equipped with ATMs.

?         Bills Payments: HPCL has tied up with Skypak Financial Services which is providing “Drop boxes” at all “Club HP” outlets in a phased manner. Consumers can utilize these drop boxes to pay bills relating to a variety of service providers. All one has to do is drop the bill and payment instrument (Cheque / Demand Draft) for the designated service provider and Skypak will route the same to the correct destination…at no extra cost.

?         Communication Facilities: Each Club HP outlet is equipped with a pay – phone for the convenience of consumers. In addition, select outlets will also provide high speed internet browsing and e-mail facility.

?         HPCL : ICICI Co-branded Credit Cards- Customers visiting the “Club HP” outlets will be able to use the HPCL – ICICI Credit Cards to reap the higher reward points offered by this unique product.

Basic Amenities – Each “Club HP” outlet will extend basic amenities such as “safe drinking water” through water purifiers, hygienic rest room facilities, food counters, basic medicines and first aid facility. HPCL has also tied up with Coca Cola India to provide beverages and bottled water as well as snacks at all “Club HP” outlets.


1.                  Discuss the strategic retail marketing initiative taken by HPCL.

2.                  Discuss the concept of developing The ”Club HP”.

3.                  What are the various amenities and services offered by “Club HP” outlet?

4.                  Read the case and analyze the facts from it.

5.                  Give a short conclusion on the case study.

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