Issues of Branding in domestic LPG in India
Journal Title: International Journal of Marketing and Technology - Year 2012, Vol 2, Issue 9
Abstract
LPG is an exceptional energy source due to its origin, benefits and applications in various sectors viz. domestic, commercial and industries. With an immediate and global availability, environmental benefit, its natural by-product origin, transportation flexibility and diverse application, LPG plays a pivotal role in the transition towards a more secure, sustainable and competitive energy model. “LPG” as a brand, has created awareness of exceptional features among policy makers, industry and consumers. An increased understanding of LPG’s environmental benefits, versatile applications and its immediate global availability is of the essence to allow conscious and responsible decisions on the type of energy sources used. To piggyback on LPG is increasing its thrust on to drive growth; the strategy is also part of the fact that parallel LPG marketers in India are unable to price their LPG competitively due to huge government subsidies doled out to nationalized oil companies. The Indian Government should create a level playing field for private marketers of LPG for healthy competition in the marketplace. Government of India provide technical expertise to cost-effectively convert processes from fuels such as coal, furnace oil, high speed diesel, electricity, light diesel oil, acetylene etc Both the private sector and public sectors faces challenges and opportunities to contribute to society at large. The parallel LPG marketers in India see no hope of raising their share in the domestic segment unless the government phases out subsidies. They have for long been pleading with the government that it at least restrict the subsidy to the lower economy segment and also curtail diversion of domestic LPG to commercial segments like hotels. Hence, counting on LPG’s expertise to provide “total energy solutions”; it offers advice on aspects such as cost economics, equipment suitability and conversion to LPG; safety; training etc. It can be either new installations or existing installations that use LPG or any other fuel. The existing brands in domestic LPG sector in India are as under:- PSU Sector : Indane, Bharat Gas, HP etc Pvt Sector : Shell, Reliance, Super Gas, Elf, Caltex, Total etc The services range from offering advice on aspects such as cost economics, equipment suitability and conversion to setting up its own LPG gas installation at the plants with regular supply for long period. Since the domestic segment accounts for around 95% of LPG market in the country, the private players are left with the only small commercial and industrial segments. Last year, 9.3 MMT of LPG were sold in the country. Of the total market of Rs 200 billion, the private LPG markets account for around Rs 750 crore only. With the LPG market itself growing by over 10% annually, the parallel LPG markets feel let down by the government policies. That this measure would also help ease subsidy burden on the government is their contention. Oil companies are in process of Optimizing the utilization of the existing infrastructure. The development of further infrastructure will depend on the regulatory framework in the country. We hope to see the creation of a level playing field, so that the consumers would be able to benefit from the combined strengths of various companies.'' In this context, there is parleys with major oil companies, including PSUs, for strategic alliances to leverage the existing infrastructure which would be a win-win situation for all players. Oil companies faces brand issue this issue more often. It is due to no taking away from the fact that leadership drives brand penetration. Branding captures and provides tools for leadership management to communicate and increase the efficiency more effectively. This leads to the higher motivation levels raising both productivity and service standards. The common brand Issue with LPG sector is as under:- Customer is not responding to brand. Customer does not “need” distributor. Brand experiences very few repeat purchases.
Authors and Affiliations
Dr Gaurav Lodha and Amit Vyas
Keywords
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