Hpgas final
- 1. Gap Analysis for HP Gas Debashish Joel Divyanshi Gupta Iris Charu Gomes Murali Krishnan S Nagappan Krishnan
- 2. HPCL • Second largest LPG manufacturer in India • Over 21 million customers, network of over 2200 distributors • Removal of subsidies - Seller’s market to buyer’s market • Need to improve service delivery and build a strong positive brand image • Untapped rural market and saturating urban market
- 3. HPCL • Existing customer(mainly urban) satisfaction depends on – Safety, convenience, quick delivery, right weight etc. • VAS – Delivery within 24 hours, 8 am to 8 pm delivery, new connection in 24 hours, 4-digit IVRS for booking and inquiries, refill booking through internet • Millennium distributors • Guaranteeing the right weight through “promise yahi, weight sahi” campaign • Strong positive service and greater satisfaction among the customers through “Ji Haan” campaign resulting in “HPCL, a well behaved, responsible, high profile, kind at heart person”
- 4. Customer Gap Customer expectation of service quality Rural customer: Safety, value for money, accessibility, right weight Urban customer: Safety, convenience, timing of delivery, right weight, quickness of delivery Customer perception of service “Well-behaved, responsible, high profile, kind hearted person” Reliable and quick service Service quality – Bingo! Product quality – No evidence to suggest anything wrong Price – “High Profile” suggests that it is perceived as premium. Customer Gap – value for money, timing of delivery How the company is filling the gap – smaller 5 KG LPG for rural areas, Rasoi Ghar initiative. No action on “timing of delivery” •
- 5. Listening Gap Market Research Orientation Adequate research has not been done. The rural markets and the urban non-users should have been researched separately. The results of the customer satisfaction survey are not generalizable to non-users and rural customer. Upward communication No evidence of any issues Relationship focus Expectations of different segments differ between urban and rural market. Company is focusing on relationships rather than transactions. This is evident the customer loyalty programme Service Recovery Emergency call center and Medical insurance are examples of good service recovery mechanism Provider Gap 1: Research not generalizable, rural segments and non-users should be studied separately. How the company is filling the gap – No mention about this in the case
- 6. Standards and Service Design Gap Proper Service Design Phased rollout of incentive programs shows existence of service development infrastructure. No evidence to suggest any loopholes in the service development infrastructure. Customer-Driven Standards The weighing initiative came from the customer apprehension of ensuring right weights. This means HPCL’s standards are customer driven. Appropriate physical evidence 2 exclusive filling plants for rural areas The distributor network expansion from 1000 to 1900 distributors Provider Gap 2: No Gap
- 7. Service Performance Gap Effective HR Policies No mention in the case though overall service quality excellence suggests HR policies are effective Effective Role fulfilment by customers No data given to evaluate the role fulfilment by the customers. Perhaps, if % of people adopting loyalty programs is known, we can comment. Effective alignment with service Intermediaries “Millennium Distributors” is a good training initiative that suggests HPCL aligns its service intermediaries with its own image Alignment of Demand and Supply No data available
- 8. Service Performance Gap (Contd) Urban customers Attributes Degree of importance Performance Correct weight Very important Good Safety Very important Good Timing of delivery Very Important Average. Working women may want the cylinder to be delivered at a particular time. Quick Delivery Important Good Environment friendly Not important Good
- 9. Service Performance Gap (Contd) Rural customers Attributes Degree of Performance importance Value for money Very Important Good Accessibility Very Important Average. 60% of India is rural. Only 2 rural plants? Right weight Important Good Awareness Important Poor. No mass awareness drive by HPCL yet. Environment-friendly Not important Good Provider Gap 3: Less rural plants, Very little rural awareness programs, Urban timing of delivery How the company is filling the gap – Expanding the distributor network is a good sign but much more required
- 10. Communication Gap Integrated Service Marketing Communications Partnership with JWT “Ji Haan” message consistent with the brand image of well-behaved, responsible and kind-hearted person “Promise Yahi, Weight Sahi” campaign Pricing Perceived to be a premium product. HPCL should create, communicate and deliver more value for the price being charged. Provider Gap 4: Not communicating value for the price charged How the company is filling the gap – By providing services like distinct value-added services like Internet booking etc., the company is on the right track