Sales promotion of Indian oil 93 octane MS in Delhi
Student name: Ms Nidhi
Guide: Dr Sapna Narula
Year of completion: 2013
Host Organisation: Indian Oil Corporation Ltd.
Supervisor (Host Organisation): Mr Manmohan J.S. Kukreja
Abstract:
Executive Summary
Indian Oil 93 Octane MS is motor fuel with a higher octane rating of 93 RON. Theoretically,
higher octane rating of the fuel helps in complete combustion of the fuel, leaves less carbon
deposits on engine and exhausts system and prevents engine ―knocking‖. This, in the long term,
is good for engine maintenance and shows up as slightly increased mileage.
Indian Oil 93 Octane MS is currently being sold at a price of Rs. 66.67 (as on June 1, 2013) with
a price differential of 2.68/L (over Normal fuel) in the Delhi market. Beyond associated
advantages of a higher octane fuel over Normal MS (RON 91) or other premium fuels (RON 89-
91 blended with additives), the fuel has a pricing advantage over premium fuels which are priced
upwards of Rs. 8/L differential (over Normal fuel) in the Delhi market and BPCL’s 97 Octane
MS which is priced upwards of Rs. 25/L differential (over Normal fuel) in Delhi market.
Indian Oil took the first mover’s step to formally launch 93 Octane MS on 1st September 2012 in
the Delhi market. No other competitor company is currently selling this fuel in this market.
The decision was strategic as the sales of branded fuel, Xtra Premium had been very adversely
affected due to its high retail selling price (RSP) resulting in Xtra Premium customer switching
to Normal MS. However, market research suggested this customer had an inclination towards
better/higher quality fuel and was willing to pay a reasonable premium for the better quality.
Additionally, most vehicle manufacturers have launched premium vehicles in the mid-segment
and high-end segment in the recent past, with higher octane number fuel recommended by these
vehicle manufacturers. Also, with BPCL’s selling of Speed 97 in the Delhi market from last 7-8
years- considerable customer awareness and propensity to use higher Octane fuels has already
been developed in the market. Taking all the above factors into account, a strong market was
envisaged for Indian Oil 93 Octane MS in the mid-segment and high-end segment cars and
motorbikes segment in the Delhi market.
The company is gradually expanding its 93 Octane MS retail sales network in the Delhi market
and currently doing considerable point of sales (POS) promotion to create awareness among new
customers and bring them to the retail outlets.
This is the first official market research conducted by Indian Oil for Indian Oil 93 Octane MS,
since its launch in September 2012 in the Delhi market. The basic objective of this research is to
analyze market response to Indian Oil 93 Octane MS, understand customer’s current satisfaction
levels and their future expectations of services. The research is also aimed at understanding the
effectiveness of branding and sales promotion for Indian Oil 93 Octane MS.
The research involves field study covering, 10 Indian Oil 93 Octane MS retail outlets. A total of
100 respondents were surveyed- 70 Indian Oil 93 Octane MS users and 30 non-users. Primary
data has been collected through structured questionnaires, personal interviews and discussions
with Indian Oil 93 Octane MS dealers, users and non-users. Secondary sources of information
include internet- automobile websites, discussion forums, articles and information provided by
Indian Oil officials.
The fuel is actively being taken up by mid-end segment car and motorbike owners and is largely
relevant as a ―Value-for-money‖ fuel in the market. 84% of users are highly satisfied with the
fuel and strongly recommend it to others. However, customers, users and non-users alike, seek
availability of the fuel at more RO’s, better promotional offers, fuel advertising and information
on fuel economy/benefits.
