HPCL – CUSTOMER SERVICE INITIATIVES

The caselet explains the efforts of Hindustan Petroleum Corporation Limited (HPCL) to improve customer service levels in its LPG business to differentiate its services from the competition. It describes the focus of the company on three aspects — quality, safety, and convenience. Finally, the caselet provides details about HPCL’s Rasoi Ghar scheme offered for the rural customers.

Issues:

   » LPG market in India
» Customer service as differentiator
» Marketing strategies in commodity product markets 

Introduction

Hindustan Petroleum Corporation Limited (HPCL) is India’s second-largest integrated oil refining and marketing Company with a gross turnover of Rs 530 bn and a net profit of Rs 14bn for the fiscal year 2002-2003. It is also the second-largest LPG marketing company with a consumer base of more than 16 million, serviced through a network of 1,823 distributors across the length and breadth of the country. In the recent past, the company has focused on improving its customer service in the LPG business. The LPG market is undergoing a sea change. The market can be categorized into two segments, the industrial market and the domestic market. The domestic market constitutes 90% of the total market. The middle class segment with its significant growth rate, is a major target for LPG companies…

Questions for Discussion:

1. In India, until recently, supply of LPG was always below the demand. The industry was dominated by a few public sector players. In this scenario, identify why HPCL focused on improving customer service.

2. HPCL has undertaken customer satisfaction survey to identify customer expectations and complaints. What are the other ways to measure and track customer satisfaction?