1. LPG Marketing in Competitive
Environment
A Case of Small Size Cylinder Package

2. Content Analysis
Introduction
Potential Customer
Market Size
Launching Strategy
Branding and Promotion
Pricing
Distribution

3. Overview
Growing with India – BPC Gas!
• Since inception of FTL in October
2013, growth rate of BPCL in 5kg LPG cylinder
has been 60.43%approx

4. Target Customers Potential Customers
Rural & Hilly Households
• I.T. professionals or
consultants
• Students
• Small offices-pantries
• Back-up cylinder in the
households
• Small eateries/ food stalls/
SME food enterprises
• Picnics/ outings
• School/ college laboratories

5. Potential Market Size
• Urban Market Focus Regions
Zones Regions Potential Consumers
North Zone
Delhi, NCR, Gurgaon,
Noida
I.T. Professionals,
Consultants, Industries
North West Zone Rajasthan Students, Industries
West Zone Mumbai, Pune, Gujrat
Students, I.T.
Professionals,
Consultants, Industries
South West Zone Karnataka
Students, I.T.
Professionals,
Consultants, Industries
South Zone
Chennai, Hyderabad,
Thiruvananthapuram
Students, I.T.
Professionals,
Consultants, Industries
East Zone Kolkalta, Bhubhneshwar
I.T. Professionals,

6. • Rural Market Focus Regions
Zones Regions
No. Of Inhabited
Villages (Approx.)
North Zone Uttar Pradesh 97,942
North East Zone
Seven Sister States of
Northeast India
65,375
Central Zone Madhya Pradesh 52,117
East Zone Orissa 47,529
West Zone Maharashtra 41,095

7. LAUNCHING STRATEGY
USP
‘Paramount Quality in Compact Quantity’

8. Details
Brand Development and Promotion
Two Campaign Launch- Rural Market & Urban Market
6 Cities & 15 outlets 640 districts
Promote and Educate alternate uses of LPG
• Chemical Feedstock
• Centralized Heating Solutions
• Production of Electrical energy by running Turbines
• Paper Industry
• Food processing Industry
• Agriculture use – Drying process
• Refrigerant
Expand to

9. Pure LPG
Kerosene
Firewood
Coal
Illegal LPG
Promote Legal and Safe use of LPG
Safe Health..
Safe Home..
Safe Environment!

10. Brand Development & Promotion
Product Name : CHIRAG LPG
Method of
Approach
Above The Line Below The Line

11. Campaign 1: Urban Market
“Bringing warmth to your kitchen”
Concept: Expand customer base along with brand awareness
Objective: Product promotion and decrease black marketing of LPG
Buzz Creation:
ATL Approach: For PG students and temporary residents, the
promotion shall be done through news & social networking
sites-
99acres.com, olx.com, quickr.com, facebook.com, gmail.com, ind
iaproperty.com, sulekha.com, magicbricks.com,etc.
BTL Approach:
• Promotion activities carried out in corporate parks and
recreational areas like canteen and refreshment places
• New registration canters will be setup at Top I.T., Consultant and
BPO-KPOs.

12. • Areas: 6 Zones
• Sub Areas:
Delhi, NCR, Gurgaon, Noida, Rajasthan, Mumbai, Pune, Karnataka, Ch
ennai, Hyderabad, Thiruvananthapuram, Kolkalta, Bhubhneshwar
• Duration: Canter activity will be setup for 2 days at Office Premises
• Post Campaign
Members will be sent an email/ newsletter consisting details of the FTL
products.
It will consist a link to the main company website which will help them
locate nearest store for FTL cylinder.
Top Safety Guidelines for usage of LPG
• Measurement of Effectiveness
1. Number of new registrations
2. Sale monitoring -FTL-5kg & 3kg
3. Enquiries generated

13. Campaign 2: Rural Market
‘Aapke choolhe ki Jaan- CHIRAG LPG’
Concept: Safety Training + Customer Base Expansion
Objective: Creating awareness regarding safety and quality of using
the product alongwith alternative use of LPG in agriculture.
Buzz Creation:
ATL Approach: Wall Paintings and Pictoral Pamphlet distribution, BPC
Gas Dealer outlet banner and billboard display
BTL Approach:
• Short film/ skit on safety measure to be followed in the
kitchen, uses and advantages of LPG
• Conducted during the Gram Panchayat weekly sessions, Local
Haat/Mela(Fun Fair)
• Fabricated canter will visit the village

14. • Areas: 5 Zones
• Sub Areas: Uttar Pradesh, Seven Sister States of Northeast
India, Madhya Pradesh, Orissa, Maharashtra- 2092Talukas
• Duration: 1 day per Taluka
• Post Campaign:
A training session conducted at their nearest distributor outlet/
taluka regarding alternative usage and optimal use of LPG
cylinder.
They can further spread awareness about safety in their
neighbourhood.
• Measurement of Effectiveness:
1. Number of Registrations
2. Sale of FTL-5kg & 3kg
3. Enquiries generated

15. Pricing Strategy
• Price influencing Factor-Import Parity Basis.
• The price of LPG cannot remain fixed as it is market based
• However, company will incur low mantainence cost as the cylinder
will be sold off from the counter and holding cost will reduce.
• We propose reduced price rate for the existing pricing of 5kg FTL
cylinder
• Proposed redesigning of 5kg LPG cylinder can be done in terms of
reducing the weight
• Introducing 3kg LPG light weight cylinder

16. Cost Components Existing Rate
New Rates
(5 kg)
New Rates
(3 kg)
Production of Cylinders
Rs. 1000/-
(approx)
Rs. 500-600/-
(approx)
Rs.360/-
(approx)
Production of LPG
Rs. 400-500/-
(approx)
Rs. 400-500/-
(approx)
Rs. 300/-
(approx)
Regulator (if required) Rs. 250/- Rs. 250/- Rs. 250/-
Hose/ Tube (if required) Rs. 100/- Rs. 100/- Rs. 100/-
Administrative charges Rs. 25/- Rs. 15/- Rs. 15/-
Price Component Chart of 5 kg and
proposed 3 kg FTL Cylinder

17. Price Scheme of 5 kg & 3 kg FTL cylinders
Items Existing Price New Price
5 kg FTL cylinder +
regulator
Rs. 1450/- Rs. 1165/- (Approx)
5kg FTL cylinder Rs. 1200/- Rs. 915/- (Approx)
3 kg FTL cylinder +
regulator
NA Rs. 925/- (Approx)
3 kg FTL cylinder NA Rs. 675/- (Approx)
Below are the costs of 5kg FTL Cylinders taking into consideration
the cost components as mentioned above:-
Post use of 5kg cylinder, the consumer can return back the
cylinder and buy a new LPG cylinder.
Refund option of 15% (out of production cost of cylinder vessel)
can be deducted from their new purchase.

18. Distribution Channel
OMC
Respective
Distributor
COCO
Retail
outlets
Customers
Current distribution channel:-
Proposed Distribution Channel:-
ORO- Other Retail Outlets

19. O.R.O.
Urban
Supermarket outlets like:-
• Big bazaar
• Food bazaar
• Star Bazaar
• D-Mart
• Hypercity
• Reliance Fresh
• Other upcoming departmental
stores like Walmart & TESCO.
Rural
No. of Talukas present in our
target states
STATES NO. OF TALUKAS
Uttar Pradesh 821
Seven Sister States of
NorthEast India
59
Madhya Pradesh 540
Orissa 314
Maharashtra 358

20. Stock Keeping Units
• Give consumer wider choice in terms of
buying options.
• Establishing similar operative system with
quality and optimization as of larger LPG
cylinders to FTP cylinders.
• Stresses on increasing the sales of FTP
cylinder of 5 kg and 3 kg.

21. Recommendations
• R & D on reducing the weight of cylinder vessel by
use of alternative metal/material
• PAN India marketing campaigns throughout the
pilot stage
• Introduce ‘order-your-cylinder-online’ and
‘nearest store locator’
• Speed delivery within 30minutes-1hr. (depending
upon area reach)

22. TEAM TROJAN
Thank You!