Indian Oil Corporation Limited or Indian Oil is one of the largest Indian government-owned Oil and Gas Companies. The company was first founded in 1959 and is currently the largest commercial oil and petroleum enterprise in India. According to Fortune Global 500 listings, IOCL ranks at first position as Indian corporate and occupies a 161st position in the world as of 2016.
IOCL has so far been successful in meeting the demands put up by the second most populated country for energy. In this article, we will try to understand the marketing strategy of Indian Oil Corporation Limited
Overview of Indian Oil Corporation Limited (IOCL)
IOCL Marketing Mix
IOCL Product Strategy
IOCL Pricing Strategy
IOCL Place & Distribution Strategy
IOCL Promotion Strategy
Frequently Asked Questions
Vibhavari Madki
Overview of Indian Oil Corporation Limited (IOCL)
Indian Oil Corporation was founded in 1959 and has since then handled the responsibility to meet the fuel demands of India and has been successful in fulfilling the product needs. The company is under the control of the Government of India Ministry of Petroleum and Natural Gas. As of 2020, the oil company got over $6.2 billion profit in sales turnover India's most profitable state-owned company.
The company is an expert in the production of crude oil, natural gas, petrochemicals, refining, pipeline transportation and marketing of these products. The Indian IOCL subsidiaries such as, Chennai Petroleum Corporation Limited (CPCL) and Bongaigaon Refinery and Petrochemicals Limited (BRPL), owns 10 out of the 18 refineries which account for over 43% of the refining capacity in the country.
The Indian Oil Corporation is known to have over 33,500 employees and also has subsidiaries in countries like Sri Lanka, Mauritius, the UAE, Singapore, Sweden, the USA and The Netherlands. The company is currently setting up over 20 joint ventures with reputed business partners from India and abroad to explore global opportunities. Some of the International Indian oil corporation subsidiaries are Lanka IOC in Sri Lanka, IndianOil Mauritius, and the IOC Middle East FZE.
In January 2021, IOCL overall sales were at an all-time high of 410,000 barrels of oil per. Some of the main competitors of Indian Oil Corporation Limited are Hindustan Petroleum, Bharat Petroleum, Essar Oil & Shell, Reliance Industries, Mangalore Refinery and Petrochemicals Limited.
Varad Kitey
IOCL Marketing Mix
The marketing mix usually refers to the set of actions, or tactics, that a company uses to promote its brand or product in a particular market. The marketing mix is a foundation model for the business strategy of Indian Oil Corporation as it is centred around the product, price, place, promotion and nowadays also includes Packaging, Positioning, People, Process and even Politics.
The IOCL business model based on the Indian Oil Corporation (IOCL) marketing mix, help the brand succeed. The marketing mix of Indian Oil Corporation also analyses and explains the marketing strategy for petroleum products. There are various different types of marketing strategies such as product innovation, pricing approach, promotion planning etc.
The IOCL marketing mix explains the importance of the product, pricing, advertising and distribution strategies used by the Indian Oil Corporation (IOCL). Indian Oil Corporation marketing strategy has so far successfully helped the company to position itself competitively in the market, and achieve its business goals and objectives. Let us start the Indian Oil Corporation (IOCL) Marketing Strategy & Mix to understand its product, pricing, advertising and distribution strategies.
IOCL Product Strategy
Indian Oil Corporation is one of the leading oil and gas companies not only in India but worldwide. The main strategy of Indian Oil Corporation is to be present across the hydrocarbon value chain and also accounts to over half of the country’s petroleum products market. IOCL also has over 35% share in refining and more than 71% share in downstream sector pipelines. Out of the total 23 Indian refineries, the company owns and operates 11 of them.
Indian Oil Corporation’s product portfolio in its marketing mix includes Indane gas, Autogas, Natural gas, petrol, diesel, jet fuel, lubricants & greases, kerosene, industrial fuels, Bitumen, petrochemicals, crude oil and some other special products. While its other businesses include refineries, pipeline transportation, distribution & marketing and Research & Development.
The company is also known for the popular brands under it, which are Indane LPG, SERVO Lubricants, Autogas LPG, XtraPremium Petrol, XtraMile Diesel and PROPEL petrochemicals. These brands have the added advantage of established customer awareness. The marketing strategy for petroleum products has made it possible for the company to become a leader in various sectors.
Varad Kitey
IOCL Pricing Strategy
The IOCL business model, price strategy runs on the idea of profit-making. In 2020, the profit of IOCL was estimated to be $6.2 billion. Since the Indian Oil Corporation is a government-owned company some of the pricing decisions are made by the Central Government of India, after considering the taxes and subsidies. The IOCL prices are different in different states and cities as geographical pricing mechanism is followed in its marketing mix.
The prices are commonly divided on the basis of metro cities, State capitals, National Capital Region (NCR). The prices in each product category (2021) are:
- Petrol prices vary between Rs. 101.84 to Rs. 110.23 per litre depending on locations.
- Diesel prices have crossed Rs. 90 per litre in most major cities.
- Autogas prices range from Rs. 55 to Rs. 57.
- ATF is priced at Rs. 5,400.91 per KL in the national capital.
- Indane Gas is priced at Rs. 694 to Rs. 720 for a 14.2 Kg Cylinder.
IOCL Place & Distribution Strategy
The IOCL marketing mix is based on its wide geographic presence, as holds and controls 10 refineries (Paradip, Panipat, Mathura, Haldia, Gujarat, Barauni, Bongaigaon, Guwahati, etc) across the country. Besides that, the company also has over 10,900 km of pipeline connecting to high demand places, more than 132 Km of gas pipeline and including 45,000 customer touchpoints. The company also has its subsidiaries in countries like Sri Lanka, Mauritius and UAE.
It also has 20 joint ventures with reputed firms in India and abroad. IOCL also has 25,000 diesel and petrol stations, it even has one outlet in the world highest point. IOCL also has 6000 LPG distribution stations, 6,218 bulk consumer pumps and 100 aviation fuel stations. Another interesting fact about IOCL is that it has more than 9,400 fully automated fuel stations are situated in nearly fifty-five cities providing products and services to its customers.
Anagha S
IOCL Promotion Strategy
Promotion is the most important part of Indian oil corporation limited marketing because that is what led the company to become one of the most valued and trusted brands in India. IOCL realizes the impact of a good promotional plan, offers and periodic incentives to maintain its customer base. The promotion in IOCL includes advertising tools like hoarding and commercials in television in order to increase its brand visibility.
Indian Oil Corporation limited marketing also includes loyalty programs such as fleet cards, while customers can also earn points and during festive seasons some gifts would be given to consumers through a lucky draw. Here are the other three Ps to make it the 7Ps marketing mix of Indian Oil Corporation.
People
The people are also a vital part of Indian Oil marketing, as the company has 33,000 employees that work in various sectors to the company. The company recruits mainly through advertisements in newspapers and the company’s website. IOCL also spends a lot in training and development of its employees to develop their capabilities. The company employees also have equity of nearly 65 lakh shares in the company.
Process
The company deals in many business sectors, distribution and people processes to serve customers and corporate clients. To remain profitable in a business the processes used to run should be working at an optimal rate. IOCL has taken every measure to improve operational efficiency, as it maximizes the LPG extracts for a refinery it uses the INDMAX technology.
Physical Evidence
Indian Oil Corporation has its physical presence because of petrol pumps and gas stations not only in India but worldwide. The Indian oil essential services logo is a saffron circle with the blue colour outer ring and a blue colour band in the middle of the circle with ‘Indian Oil’ written in the Devanagari script. It also has an iconic logo known as ‘The Energy of India’ which is a rightful representation of the Company.
Pratyusha Srivastava
Conclusion
With over 10 refineries and pipelines network span of over 9,300 km, IOCL is the leader in the Indian market. IOCL is the 20th largest petroleum company in the world and also has a foothold in the international markets. With an excellent marketing mix, the company future looks bright.
Frequently Asked Questions
What is Indian Oil Corporation Limited?
Indian Oil Corporation Limited or Indian Oil is one of the largest Indian government-owned Oil and Gas Companies.
Where is the headquarters of Indian Oil Corporation Limited?
The headquarters of Indian Oil Corporation Limited is Mumbai, Maharashtra.
What is the distribution channel of the Indian Oil Corporation?
There are 20,575 retail outlets. IOCL has an outlet in the world's highest point. The company also has 6000 LPG distribution stations, 6,218 bulk consumer pumps and nearly 100 aviation fuel stations.
Who is the owner of the Indian Oil Corporation?
The owner of the Indian Oil Corporation is the Ministry of Petroleum and Natural Gas.
Where is Indian Oil Corporation biggest refinery located?
The Indian Oil Corporation biggest refinery is located in Jamnagar.
What is the salary of Indian Oil Corporation employees?
The gross salary of IOCL employees is Rs. 60,000 to 1,80,000 and depends on the posts.
Author: PV Vyshnavi
Source : https://startuptalky.com/marketing-mix-of-indian-oil-corporation-iocl/
Date : 2021-08-06T15:00:00.000Z