Training & Promotion

1. Training & Promotion

2. What is Retailing Retailing includes all the activities involved in selling goods or services directly to the final consumers for their personal , non-business use. --- Philip Kotler

3. Types of Markets • City / Town • Highway • Rural

4. Types of Retail Outlets • Company Owned • Company Leased • Dealer Owned • COCO • COMCO • T & E Station

5. SSLF ( SERVICE STATION LICENCE FEE ) ( Rs. per KL ) MS HSD Company owned Company Leased Dealer owned 43 36 11 13 11 13

6. DEALER COMMISSION (w.e.f 26/04/07) Rs. per KL MS 1024 HSD 600 (w.e.f 16/07/07) POWER 1212 ( + 188) TURBOJET 690 ( + 90 )

7. Terminals, TOPs & Depots ZONETERMINALSTOPDEPOTS NORTH - 8 24 EAST 4 1 14 WEST 8 3 20 SOUTH 9 3 25 --------------------------------------------------------------------- TOTAL 21 15 83 ------------------------------------------------------------------------ * MDPL Locations- 7 Nos.

8. Movement of Products • Crude movement to Refinery thru - Ocean Tankers / Pipelines. • Refined Products to Terminals thru - Ocean Tankers /Pipelines / Tank Wagons. • Terminals to Depots thru - Pipelines / Tank Wagons / Tank Trucks. • Depots / Terminals to Retail Outlets thru - Tank Trucks.

9. Types of Supplies • Delivered Supplies MS / HSD ( FDZ – 39 RTKM ) Retail Selling Price ( RSP ) = BASIC RATE + FREIGHT + TOLL / ENTRY TAX ( = BILLING RATE ) • Ex – MI SKO / LDO / LUBES ( Ex - Main Installation ) + ST ( VAT ) + DEAL. COMM.

10. Quality and Quantity Each outlet must have the following to check Q & Q • 5 Litre Measure ( certified by Weights & Measures Dept. ) • Certified Density checking equipments Hydrometer & Thermometer • ASTM Table ( 53-B ) ( American Society for Testing and Materials ) • Density Register • Filter Paper Whatman – 2( to check MS quality ) • Display of Test procedure

11. DENSITY • The density of MS is normally in the range of 710 to 770 ( kg / m3 ) • The density of HSD is normally in the range of 820 to 860 ( kg / m3 ) • Reference Density : The density at 15 degrees recorded on the invoice by the supply location / Density Register at Outlet • Observed Density : The density observed at the time of testing at 15 degrees (using the ASTM Table 53 B) before decanting at Retail Outlet / testing • The allowable variation between the reference density and the observed density is + / - 3 ( at 15 degrees C )

12. Retail Initiatives • Branding of Retail Outlets and Products • Campaigns / Sales Promotions / Advts. • Certification of Retail Outlet Standards • Third Party Audit ( M/s.Bureau Veritas ) • ISO • CSI • DSI • Customer Care Programs • Helpline ( 6050 6050 ), total 15 centres covering 38 ROs • Mobile Labs • Dealer / Dealermen - Training Programs • Dealermen Motivational Programs • Spot & Reward • Scholarships • Insurance

13. MARKETING DISCIPLINE GUIDELINES 2005 Effective 1 – AUGUST - 2005

14. MARKETING DISCIPLINE GUIDELINES – 2005 TERMINATION AT THE FIRST INSTANCE FOR THE FOLLOWING OFFENCES / IRREGULARITIES – MS / HSD • ADULTERATION OF MS / HSD • DELIVERY OF PRODUCTS ( W & M SEALS TAMPERED – either Metering Unit or Totaliser ) • ADDITIONAL / UNAUTHORISED FITTINGS / GEARS IN D/U • UNAUTHORISED STORAGE FACILITY • UNAUTHORISED PURCHASE / SALE / EXCHANGE OF MS / HSD ( irrespective of product quality ) • SELLING NORMAL MS / HSD AS BRANDED FUEL • TANK LORRY CARRYING UNAUTHORISED PRODUCT FOUND UNDER DECANTATION TO THE R/O TANKS • NON – AVAILABILITY / NON- MAINTENANCE OF REFERENCE DENSITY ALONG WITH SAMPLE FAILURE

15. MARKETING DISCIPLINE GUIDELINES – 2005OTHER IRREGULARITIES – MS / HSD FINE( Rs.)SUSPENSION ( S & S ) • NON-AVAILABILITY / MAINTENANCE OF REFERENCE DENSITY AND PRODUCT IS ON-SPEC I 10,000 WITH WARNING LETTER II 25,000 III 50,000 and on subsequent instans. • NON-AVAILABILITY OF TANK LORRY RETENTION SAMPLE I 50,000 II TERMINATION • NON-MAINTENANCE OF INSPECTION / STOCK / SALES / OTHER RECORDS I 25,000 15 DAYS II 50,000 30 DAYS III TERMINATION • NON-AVAILABILITY OF INSPECTION / STOCK / SALES / OTHER RECORDS I 10,000 II 25,000 III 50,000 and on subsequent instans.

16. MARKETING DISCIPLINE GUIDELINES – 2005OTHER IRREGULARITIES – MS / HSD FINE( Rs.)SUSPENSION ( S & S ) • OVERCHARGING OF MS / HSD I 25,000 15 DAYS II 50,000 30 DAYS III TERMINATION • NON-OBSERVANCE OF GOVT. RULES I 25,000 15 DAYS II 50,000 30 DAYS III TERMINATION • REFUSAL BY DEALER TO ALLOW DRAWL OF SAMPLE / CARRY OUT INSP. I 50,000 45 DAYS II 1,00,000 90 DAYS III TERMINATION • DISCOURTEOUS BEHAVIOR I 10,000 II 25,000 III 50,000 IV TERMINATION

17. MARKETING DISCIPLINE GUIDELINES – 2005OTHER IRREGULARITIES – MS / HSD FINE( Rs.)SUSPENSION ( S & S ) • NON-PROVN. OF FREE AIR WITH CALIBERATED AIR GUAGE, DRINKING WATER, RADIATOR WATER, CLEAN TOILET FACILITIES, TELEPHONE, FIRST AID BOX WITH CURRENT MEDICINES, PUC (WHERE APPLICABLE) I 10,000 II 25,000 III and subsequent instances 1,00,000 45 DAYS • ISSUANCE OF FAKE PUC CERTIFICATES I 25,000 15 DAYS II 50,000 30 DAYS III and subsequent instances 1,00,000 45 DAYS • NON-DISPLAY OF AUTHORISED SELLING PRICE OF MS / HSD I 10,000 II 25,000 III and subsequent instances 50,000 15 DAYS • POOR HOUSEKEEPING / INADEQUATE FACILITIES ETC. I 5,000 II 10,000 III 15,000 and subsequent instances

18. FREE SERVICES TO CUSTOMERS( Mandatory ) AIR WATER ( DRINKING / RADIATOR ) TOILETS TELEPHONE FIRST AID BOX

19. Dealer Selection • Advertisements are Released • Shortlist Prepared after site inspection • Eligible Candidates are Interviewed • LOI issued to the selected candidate

20. DEALER SELECTION 50 % New Dealership appointment is as per the following reservations : OPEN - SC / ST - PH - PMP - DC - FF - OSP - 25 % 5 % PHYSICALLY HANDICAPPED PARAMILITARY / POLICE / GOVT.PER. 8 % 8 % DEFENCECATEGORY 2 % FREEDOM FIGHTERS 2 % -------- 100 % * OUTSTANDING SPORTS PERSONS * 33 % in each of the above category is reserved for women

21. Dealer Selection • Candidates called for interview and evaluated on the following parameters & marks • Capability to provide land and infrastructure / facilities 35 • Capability to provide finance 25 • Educational Qualifications 15 • Capability to generate business 10 • Age 4 • Experience 4 • Business ability/acumen 5 • Personality 2 Total marks 100 Minimum Required - Open – 60% - Reserved – 50%

22. Development of New Retail Outlet • NOC from District Authority Dy. Comm. / Dist. Magist. / District Collector ( Revenue Dept. / Fire / Police / Highways or PWD ) • Explosive Licence Basic approval Grant of licence - after development of site • Other approvals Municipal approval ST Regn., Selling Licence • Receipt of Product at Retail Outlet ( Commissioning ) • Stamping of D/Us by Weights and Measures • Commencement of Sales

23. RECONSTITUTION • DEATH OF A DEALER • RETIREMENT OF A PARTNER • INDUCTION OF NEW PARTNER • FINANCIAL PARTNER • WORKING PARTNER

24. Sales Jargons • Growth • Is the improvement over a reference period • Industry Growth • Is the growth of the total industry over a period ( PSU ) • Market Share • Is the share-out percent of a particular company on the total industry volume • Thruput per Outlet • Is the volume (MS, HSD) generated from an outlet for a period (generally per month) • Trading Area • The area pertaining to a set of outlets which influence each other with respect to sales performance

25. Sample of ASTM Table Reference = 827 @ 28 Deg. C which is = 836 @ 15 Deg. C arrived by using this table Observed = 823 @ 33 Deg. C which is = 835.5 @ 15 Deg. C arrived by using this table BACK

26. Marks for Interview • Educational Qualifications • Matriculate 7 • Graduate 10 • Post Graduate 12 • Professional 15 • Age • 21 – 25 2 • 26 – 45 4 • 46 – 55 2 • 56 – 65 1 BACK

27. Hydrometer with Certificate Thermometer with Certificate BACK

28. Density Checking BACK

29. 5 Litre Measuring Can Hole Punch to mark the 5 Ltr. Quantity W & M Seal BACK

30. THANK YOU