Shell Case Study : Round 3

                                        Ashish
                                        Anand




                             Sanyal C            Amey M
• India – one of the fastest growing
  country in the World
• High demand for energy products
• Earlier only IOCL , BPCL and HPCL in
  the market for selling transportation
  fuels
• In 2002 private players allowed to
  market transportation fuels

 Government Regulation:
• Govt. introduced Administered Pricing Mechanism in 1977 for pricing petroleum products
• Motive : Insulate the domestic economy from the high & volatile international oil prices
• Kirit Parikh report : Price of petrol has been decontrolled in June 2010
• Diesel still not decontrolled by the govt. owing large dependence of industry and
  households on it
 Consumption Pattern:
 High Demand: Per capita consumption of Petrol and Diesel has doubled in the last decade
 High prices of petrol leading consumers to shift towards CNG and diesel automobiles

                     Value               Brand             Retail Site         The Final
Overview
                  Proposition          Promotion          Opportunity           Word
Petrol and Diesel Price-Pan India
                                                              80
                                                              75
  Shell : Only dedicated oil marketing                        70
  company in India                                            65
                                                              60
  • Involved in the marketing of petroleum                    55
                                                              50
    products                                                  45
  • Don't have a presence in the refining                     40
                                                                   Bangalore     Chennai      Pune          Hyderabad
  • 2000 licenses but operates only 62 Sites
                                                                        NOC-Diesel                   Shell-Diesel

                                                                        NOC-Petrol                   Shell-Petrol

           2004 : Started operations in India
                                                                                              Fuels


        Project Mayback : Selection of Sites



            2008 : Concentration Principle                                                    Shell
                                                                               Lubricants :
                                                                                                                Shell
       2009: Project Stela to divest some sites
                                                   SHELL-India                  Retail &
                                                                                Business
                                                                                                              Bitumen




                             Value                  Brand                Retail Site                     The Final
Overview
                          Proposition             Promotion             Opportunity                       Word
Value Proposition of SHELL in India :                                                   Quality
                                                                                          and
•   Quality fuel offering                                                               quantity
•   Providing best in class infrastructure
•   Stringent quality control & assurance of right quantity delivery
•   Highly skilled service station workforce                                FUEL
                                                                                                       World
                                                                                                       Class
•   Fuel Economy concept for efficient fuel utilization                    economy
                                                                                                       Infra
•   More focused on Passenger vehicles than commercial vehicles

Issues faced by NOC’s in India :                                                        Skilled
•   Premium charged for quality fuel                                                    Workers

•   Many reported instances of adulteration
•   Infrastructure is not at par with private players                          BPCL 1   2012 : Adulteration stats
•   Low skilled service station work force resulting in huge
    waiting time for the consumers
                                                                                                              IOC
•   High crime rate at the filling station in rural areas
                                                                                                              HPCL
•   Total vehicle management is available at very select outlets
                                                                        HPCL                                  BPCL
    even in Urban areas                                                  28
•   Operational inefficiency leading to frequent stock outs
•   Calibration issues at the filling stations                                                       IOC 46




                         Value                  Brand                   Retail Site                The Final
Overview
                      Proposition             Promotion                Opportunity                  Word
 Provide a branded value proposition                 Brand Promotion /Awareness:
                                                       Campaign locally about the same price structure with
  instead of offering fuel as a commodity                better product offering
 Brand nomenclature :                                 Collaboration with leading manufacturers of vehicles
                                                         for after sales service
          Fuel                 Brand Name
                                                       Launch of SHELL mascot who will address various
     Unleaded Petrol               Mileage               day to day issues of vehicles in ads
     Premium Petrol             Mileage Plus           Association with Hot Wheels allowing to have
                                                         SHELL logo on cars thus increasing brand familiarity
         Diesel                  Shell Shakti

We know what's best for your vehicle :
 Campaign featuring various ads where user prefers
  only expert care when it comes to any important
  decision
 Think SHELL Think Happiness
 Your car needs the best care
 It also needs quality fuel
 Use transparent filling station machines (semiotics)
 And SHELL provides quality fuel

                          Value                   Brand              Retail Site                The Final
Overview
                       Proposition              Promotion           Opportunity                  Word
Brand Loyalty Promotion :
                                                Involving Corporate                 Platform to Share Experiences
     Generating First Trails
                                                    Consumers
• Collaborate with leading retail         • Engage Govt. employees , large          • Co-creation via Social CRM
  stores/brand                              private players etc.
                                                                                    • Communication of new Products
• Issue membership cards on high          • Online web portal for members             via this medium
  value purchases viz. INR1500
                                          • Provide differentiated customer         • Frequent polls to allow consumer
• Offer cash back on collection of          service                                   register their preferences
  100 points viz. 5%



                                          Consider




                                                    The Loyalty Loop
                                                       Evaluate

                         Bond                               Enjoy
                                      Advocate                                         Buy


                               Value                   Brand                   Retail Site             The Final
  Overview
                            Proposition               Loyalty                 Opportunity               Word
Creating Brand Equity through Sustainable Development

   Economic considerations
                                                              Environmental considerations
      • Inclusion of pre-fabricated buildings &
                                                                 • Shell takes environmental impact
        hydraulically lifted canopies at Retail Sites
                                                                    seriously & addresses it properly
      • Reducing the risks of working at height
                                                                 • Protection of the soil & ground water
        and there by additional costs
                                                                    and environment surrounding the
      • Reducing construction man- hours by
                                                                    retail outlet
        25%



   Social                                                    CSR
      • Diversity at work place; favourable                     • Engage in CSR activities to create
         conditions for disabled persons & women                   Brand Awareness
      • Support economically marginalized youth                 • Organise Marathons to create a sense
         to take up entrepreneurship                               of Brand community
         opportunities




                         Value                     Brand               Retail Site              The Final
Overview
                      Proposition                Promotion            Opportunity                Word
Current Retailing Opportunities                                         Mobile
                                                                        App for
• Open small convenience stores                                         Ordering
                                                                        Groceries
• Develop & Provide Shell Apps for
  ordering Grocery Online
• Collection while coming for fuel refilling
• Provide PUC(Pollution Under Control)                                 Car
                                                                       Wash
  Services
• Provide Maintenance & Repair Services
                                                                          Grocery
Long Term Retailing Opportunities                                         Stores

• Partner with retailing majors as Wal-
                                                       Collaborate
  Mart, Big Bazaar
                                                       with online
• Provide total vehicle management
                                                       Grih sewa
  (Fuel, PUC, Maintenance services, Car
                                                        services
  Wash Service)
• Provide small recreational centers for kids
  for consumer involvement

                      Value               Brand      Retail Site     The Final
Overview
                   Proposition          Promotion   Opportunity       Word
Summary Recommendations:
   Branding Fuel as Shell Mileage , Shell Mileage Plus and Shell
    Shakti
   Launching Think Shell , Think Happiness Program for large scale
    promotion
   Partnering with leading brands like Hot Wheels etc. for brand
    recall
   Generate first trails through card launch programs and engage
    social media
   Development of retail outlet with introduction of small
    convenience store and providing basic maitainence facilities


                 Value          Brand         Retail Site    The Final
Overview
              Proposition     Promotion      Opportunity      Word
Shell presentation

Shell presentation

  • 1.
    Shell Case Study: Round 3 Ashish Anand Sanyal C Amey M
  • 2.
    • India –one of the fastest growing country in the World • High demand for energy products • Earlier only IOCL , BPCL and HPCL in the market for selling transportation fuels • In 2002 private players allowed to market transportation fuels  Government Regulation: • Govt. introduced Administered Pricing Mechanism in 1977 for pricing petroleum products • Motive : Insulate the domestic economy from the high & volatile international oil prices • Kirit Parikh report : Price of petrol has been decontrolled in June 2010 • Diesel still not decontrolled by the govt. owing large dependence of industry and households on it  Consumption Pattern:  High Demand: Per capita consumption of Petrol and Diesel has doubled in the last decade  High prices of petrol leading consumers to shift towards CNG and diesel automobiles Value Brand Retail Site The Final Overview Proposition Promotion Opportunity Word
  • 3.
    Petrol and DieselPrice-Pan India 80 75 Shell : Only dedicated oil marketing 70 company in India 65 60 • Involved in the marketing of petroleum 55 50 products 45 • Don't have a presence in the refining 40 Bangalore Chennai Pune Hyderabad • 2000 licenses but operates only 62 Sites NOC-Diesel Shell-Diesel NOC-Petrol Shell-Petrol 2004 : Started operations in India Fuels Project Mayback : Selection of Sites 2008 : Concentration Principle Shell Lubricants : Shell 2009: Project Stela to divest some sites SHELL-India Retail & Business Bitumen Value Brand Retail Site The Final Overview Proposition Promotion Opportunity Word
  • 4.
    Value Proposition ofSHELL in India : Quality and • Quality fuel offering quantity • Providing best in class infrastructure • Stringent quality control & assurance of right quantity delivery • Highly skilled service station workforce FUEL World Class • Fuel Economy concept for efficient fuel utilization economy Infra • More focused on Passenger vehicles than commercial vehicles Issues faced by NOC’s in India : Skilled • Premium charged for quality fuel Workers • Many reported instances of adulteration • Infrastructure is not at par with private players BPCL 1 2012 : Adulteration stats • Low skilled service station work force resulting in huge waiting time for the consumers IOC • High crime rate at the filling station in rural areas HPCL • Total vehicle management is available at very select outlets HPCL BPCL even in Urban areas 28 • Operational inefficiency leading to frequent stock outs • Calibration issues at the filling stations IOC 46 Value Brand Retail Site The Final Overview Proposition Promotion Opportunity Word
  • 5.
     Provide abranded value proposition Brand Promotion /Awareness:  Campaign locally about the same price structure with instead of offering fuel as a commodity better product offering  Brand nomenclature :  Collaboration with leading manufacturers of vehicles for after sales service Fuel Brand Name  Launch of SHELL mascot who will address various Unleaded Petrol Mileage day to day issues of vehicles in ads Premium Petrol Mileage Plus  Association with Hot Wheels allowing to have SHELL logo on cars thus increasing brand familiarity Diesel Shell Shakti We know what's best for your vehicle :  Campaign featuring various ads where user prefers only expert care when it comes to any important decision  Think SHELL Think Happiness  Your car needs the best care  It also needs quality fuel  Use transparent filling station machines (semiotics)  And SHELL provides quality fuel Value Brand Retail Site The Final Overview Proposition Promotion Opportunity Word
  • 6.
    Brand Loyalty Promotion: Involving Corporate Platform to Share Experiences Generating First Trails Consumers • Collaborate with leading retail • Engage Govt. employees , large • Co-creation via Social CRM stores/brand private players etc. • Communication of new Products • Issue membership cards on high • Online web portal for members via this medium value purchases viz. INR1500 • Provide differentiated customer • Frequent polls to allow consumer • Offer cash back on collection of service register their preferences 100 points viz. 5% Consider The Loyalty Loop Evaluate Bond Enjoy Advocate Buy Value Brand Retail Site The Final Overview Proposition Loyalty Opportunity Word
  • 7.
    Creating Brand Equitythrough Sustainable Development  Economic considerations  Environmental considerations • Inclusion of pre-fabricated buildings & • Shell takes environmental impact hydraulically lifted canopies at Retail Sites seriously & addresses it properly • Reducing the risks of working at height • Protection of the soil & ground water and there by additional costs and environment surrounding the • Reducing construction man- hours by retail outlet 25%  Social  CSR • Diversity at work place; favourable • Engage in CSR activities to create conditions for disabled persons & women Brand Awareness • Support economically marginalized youth • Organise Marathons to create a sense to take up entrepreneurship of Brand community opportunities Value Brand Retail Site The Final Overview Proposition Promotion Opportunity Word
  • 8.
    Current Retailing Opportunities Mobile App for • Open small convenience stores Ordering Groceries • Develop & Provide Shell Apps for ordering Grocery Online • Collection while coming for fuel refilling • Provide PUC(Pollution Under Control) Car Wash Services • Provide Maintenance & Repair Services Grocery Long Term Retailing Opportunities Stores • Partner with retailing majors as Wal- Collaborate Mart, Big Bazaar with online • Provide total vehicle management Grih sewa (Fuel, PUC, Maintenance services, Car services Wash Service) • Provide small recreational centers for kids for consumer involvement Value Brand Retail Site The Final Overview Proposition Promotion Opportunity Word
  • 9.
    Summary Recommendations:  Branding Fuel as Shell Mileage , Shell Mileage Plus and Shell Shakti  Launching Think Shell , Think Happiness Program for large scale promotion  Partnering with leading brands like Hot Wheels etc. for brand recall  Generate first trails through card launch programs and engage social media  Development of retail outlet with introduction of small convenience store and providing basic maitainence facilities Value Brand Retail Site The Final Overview Proposition Promotion Opportunity Word