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Since
mid-2002, Hindustan Petroleum Corporation Limited (HPCL) has been
providing its discerning customers with a range of new exciting,
value added services designed to create a purposeful relationship
with them. The launch of HP GAS as a brand was the beginning of
a new chapter in the LPG (Liquefied Petroleum Gas) trade in the
Indian petroleum industry. HPCL wanted to obtain an advantage in
the market, post deregulation; and strive to make the proposition
ever exciting and refreshing.
Differentiation
strategy:
As
part of HPCL's strategic marketing initiative that sought to break
out of traditional LPG business, the company attempted to establish
'HP GAS' as a distinct and unique LPG brand across the country.
The company has endeavoured to increase consumer focus; penetrate
untapped rural markets - all the efforts being consolidated towards
building a stronger brand image. Partnering the company was India's
premier advertising agency JWT India.
The
branding concept for HP GAS was developed after an exhaustive research
that encompassed collating feedback from various external research
and focus group discussions in key markets across the country.
To
understand consumer needs on a continuous basis, a consumer satisfaction
research was undertaken which enabled the company to launch its
latest offerings. The research covered 494 distributors spread across
21 states covering a sample size of more than 15,000.
An
extraordinary amount of effort went into creation of this new brand
keeping in mind the needs of the users as well as non users and
the customer preferences before finalising the offering.
The
newly created distinct set of value added offerings range from services
tailor made for consumer convenience - delivery of refills within
24 hours; extended delivery timings - 8 am to 8 pm all seven days
a week; efficient and expert services - installation of a new connection
within 24 hours; and single point contact for refill booking, customer
service inquiries and emergency services; four-digit single number
1716 across the country for safety and convenience of HP GAS' valued
consumers.
The
entire communication was launched with a specially designed pneumonic
of an 'animated' cylinder proclaiming 'Ji Haan' reinforcing a strong
positive service orientation.
The
phased roll out of 'Ji Haan' initially covered 258 distributorships
in the cities of Mumbai, Delhi, Kolkata, Bangalore, Hyderabad and
Pune. The new initiative Ji Haan consumer campaign was
extended to 690 markets covering 17 states.
HPCL
is one of the first oil companies to computerise the entire distributor
network to provide value added services to consumers such as refill
booking through IVRS, Internet amongst others. Special training
module termed as "Millennium Distributor" has been rolled
out and more than 1,000 distributors covered for re-orientation
of their mindset to meet challenges of competitive scenario.
As
far as HPCL is concerned, "safety" comes first. The HP
Suraksha LPG hose was launched as an example of the company's commitment
to safety.
As
the urban domestic market is fast nearing saturation, HPCL has started
focussing on rural markets - which the company's team feels would
be the engines for future growth. HPCL is operating two skid mounted
filling plants exclusively for rural areas and has introduced the
5 Kg cylinders. It has also played a leading role in providing LPG
connections under Deepam scheme in the state of Andhra Pradesh.
HPCL
is equally concerned about protecting the environment and the campaign
communicated these aspects. The company embarked on an ambitious
plan of creating infrastructure for dispensing LPG as auto fuel.
It is in the process of setting up 30 more stations within this
financial year. HPCL is also facilitating conversion of the vehicles
at its outlets in Mumbai through an approved agency.
HP
GAS customer sops:
In
July 2003, HP Gas launched the HP Home Perk programme - first ever
loyalty programme for LPG consumers in the country; enhanced medical
insurance upto Rs 15 lakh (Rs 1.5 million); and empowered customers
across the country by giving them the option of weighing the cylinder
at their door steps. These services will enable more than 18 million
customers serviced through a network of 1,900 distributors to enjoy
a hassle free experience.
The
new value added services are tremendously beneficial and are among
the many initiatives that we have lined up for our customers,
said HPCL marketing director NK Puri adding,Our consumer research
has shown that customers have vital concerns such as the correct
weight of cylinders and safety which precedes amongst other key
findings which are becoming predominantly significant. Through these
new consumer initiatives and our enduring customer friendly approach,
we endeavour to raise the level of service we offer our consumers.
Weight
campaign 15,000 HP GAS delivery boys across the country
carry portable weighing scales (both electronic and mechanical),
which gives the customer the option of cross checking the weight
of the gas at their door step. Research has highlighted the fact
that almost one third of the customers are apprehensive of the weight
of gas in the cylinders and this initiative will reassure consumers
of the exact weight of HP gas cylinders, thus empowering customers
and ensuring they receive what they are entitled too.
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| A
still from the HP GAS TV commercial advocating the promise of
accurate weight of the cylinder |
This
promise was demonstrated by a TV commercial (TVC) which drew parallels
with the commonly faced problem - Indian housewives being duped
by inaccurate weighing machines used by unscrupulous raddiwallas
(paper merchants and newsprint traders collecting old newspapers
and magazines from Indian households). The TVC shows a housewife
(played by TV artiste Gautami of Zee TV's Lipstick fame)
and her maid (TV and film actress Divya Dutta) outsmart two wily
raddiwallas who con them with the help of a HP GAS delivery boy
carrying accurate portable weights.
Loyalty
programme A customer can call the HP help line 1716
and become a member of HP Home Perks loyalty programme
without any membership fee. Through this programme, members can
purchase a range of household goods at attractive discounts ranging
from 40 to 50 per cent at the HP Home Bazaar and accumulate loyalty
points redeemable against products.
Among
various incentives offered is an opportunity to be eligible for
a pyramid of prizes amounting to Rs 1 crore (Rs 10 million) through
a mega draw on various regular promotions. The programme was introduced
in Mumbai and will be subsequently rolled out to other cities in
a phased manner.
Medical
Insurance Reinforcing its focus on customers, HP GAS
has broken away from the traditional insurance policy and has come
out with an enhanced umbrella insurance policy covering all consumers
and third parties. This includes compensation of Rs 100,000 in case
of demise; Rs 25,000 towards loss of property; and Rs 15 lakh (Rs
1.5 million) towards individual medical expenses in case of injuries
due to an accident with an LPG cylinder.
HP
Gas Rasoi Ghar - HP GAS has attempted to make its environment
friendly fuel available to the underprivileged section, who are
unable to bear the high one time deposit, and recurring cost of
refills. HP GAS introduced Rasoi Ghar the concept of community kitchen.
Nearly, 350 Rasoi Ghars are currently operational and benefit more
than 6,500 families by providing a common cooking platform in villages,
where users pay on the basis of the time utilised for cooking. This
initiative is a step towards improving the quality of life in this
cross section of society.
HPCL
LPG Strategic Business Unit head and general manager SV Sahni says:
The HP gas customer is progressive and conscious of their
wants. To cater to these discerning customers, we are constantly
trying to improvise on our services to offer a hassle free experience
and our strategy fills in this need gap. All our initiatives have
addressed consumer insight findings and we are confident that we
will be a step ahead in delivering quality service to our customers.
India's
premier ad agency JWT's take on the strategy -
Ramnik
Chhabra - JWT's senior account management and planning director
on the HPCL Gas campaign
After
many years of an oligopolistic marketplace, the domestic LPG segment
was finally opened to private players around five years back.
However,
it was still not a level playing field. That's because the government
LPG players like HP GAS, Bharatgas and Indane still had the advantage
of government subsidies in terms of pricing. This coupled with their
advantage of reach made the government LPG manufacturers the preferred
choice.
Things
were soon to change! With government subsidies being withdrawn,
service delivery and brand image would be the key drivers for brand
consideration.
Hence
the need for HP GAS to take the lead in building a relevant and
impactful brand position.
Communication
strategy
The
communication target audience straddled many different target audiences:
* Current HP GAS users: prevent switching and use more LPG in lieu
of kerosene;
* Non-LPG users - make them positively pre-disposed towards LPG
and bring HP Gas into their consideration set;
* Rural - target rural areas where there is little/no penetration
of LPG as a cooking medium; and where cheap and easily available
fuels like wood and coal were easily available.
Key
insight
Research conducted among housewives threw up an interesting
insight.
* The household manager performs many tasks. She receives help from
other family members/hired help for most of these tasks.
* However the cooking task is something that she handles on her
own.
* 72 per cent are responsible for cooking and cook themselves.
* And 54 per cent don't receive any help in cooking.
Brand
position
* Given the fact that the housewife has no help in the kitchen the
aim of the brand was to position itself as her "expert helper"
in the kitchen.
* A helper who provides efficient service; someone who is accessible
and reliable.
Supports
This was supported by the service delivery of:
* Immediate new gas connection;
* Refills in 24 hours;
* 8 am to 8 pm booking and delivery service;
* Guarantee of right weight.
Creative
execution
The position of the "expert helper" was brought alive
in the brand mnemonic and the brand statement: "Ji Haan"
Each
creative execution made an specific service come alive and linked
it back to the brand position.
The
above pictures are stills from the HP GAS TVCs that were aired on
prominent TV channels since the campaign was mass-oriented. The
TVCs espoused the brand's core promise of guaranteed delivery within
24 hours, cylinders with accurate weights and impeccable service
standards.
Results
* 8 per cent top of mind ad recall - the fourth highest among all
categories. Competitive brands like Bharatgas and Indane at 0.1
per cent and 0.2 per cent respectively.
* Category aided recall at 35 per cent - four times higher than
closest competitor.
* From an unclear personification, HP GAS has moved to being identified
with a "well behaved, responsible, high profile, kind at heart
person".
The
exercise also improved the HP GAS brand recall from 17th position
to 4th position (TOM Ad Recall) and gained a strong association
with reliability and quick service.
Source(
Millennium Woman study; HP Gas Brand Track 2003).
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