BPCL’s Petrol Pump Retail Revolution Case

1. Presented By:- Sarthak Gupta

2.  This case is all about India’s 2nd largest state
owned oil and gas distribution company Bharat
Petroleum company limited’s transformation of
its fuel stations into modern retail outlets that
sell not only fuel but other variety of goods
available at any other retail outlet to satisfy
basic needs of customers.

3.  Penetration of petrol majors into retail Outlets.
 Retail Revolution in the Indian Petroleum Industry.
 BPCL’s Bazaar Concept.

5.  Petrol Pumps in India existed for the sole purpose of selling
fuel and lubes manned by shabbily dressed and indifferent
personnel. There was no interaction between the Pump
owners and its customers apart from re-filling the fuel tanks
of their vehicles.
 In the mid 1990’s the oil distribution industry felt a strong
need to have a strong brand identity to differentiate it from
its rivals and attract more customers
 With the emergence of organised retailing in the country and
a growing demand from consumers for a superior shopping
experience, Bharat Petroleum has launched its convenience
retailing initiative under the "In & Out Convenience
Store" brand.

6.  Came April 2002 and deregulation of the oil industry
took place , The major players of this industry felt the
need to be more customer centric.
 BPCL excelled in putting efforts to create brand
awareness for its products.
 However by the late 1990’s, companies started taking
major interest in retail outlets.

7.  BPCL initially ventured into retailing through Bharat
Shell Ltd. (Shell)
 A joint venture with Shell Overseas Investments of
Netherlands.
 C-Store (1st Convenience Store) stocked 1000
different items.
 Store offered Eatables, Soft
drinks, Stationery, Newspapers, Magazines, Frozen
foods, CD’s etc.
 By mid 2001, All major petrol pumps in Metros had
setup Retail Outlets.

8.  In 1951, Govt. of India entered into an agreement
with the UK based Burmah Oil Co. & Shell
Petroleum Co. for establishing an Oil Refinery in
Bombay.
 Incorporation of Burmah Shell Oil Refineries Ltd. in
1952.

10.  Petroleum Business – Classified into 3 parts:
 Production of Crude
 Refining of Crude into saleable products like Petrol,
Diesel, Kerosene etc.
 Retailing
 High margins in Crude Production but High risk, Long
Gestation Business.
 Excess capacity worldwide & margins were rather low
 Maximum margins was primary reason for marketing.
Thus Retail Outlets were renovated.
 Add-on services were expected to help Oil companies
increase the extent of non-fuel business.

11.  By July 1999, 35 BPCL’s retail outlets – ‘Bazaar’ stores
successfully running across the country.
 Pioneered a revolutionary concept In Oct 2000 -
Launched McDonald’s fast food outlet at a petrol pump
near Mathura on Delhi-Agra Highway.
 Setup a 4,000 sq.ft., 180 seat outlet costing Rs 40 Million.
 McDonald’s Paid a fixed rent, apart from percentage of
its Sales to BPCL for using the facility.