Q1. State how marketing could be applied to the following products with appropriate examples from the industry? Reference all the sources.
Liquid petroleum gas (LPG)
Liquid Petroleum Gas (LPG) is clean, convenient to use and is easily transported. These factors have made it the preferred fuel among many urban households. LPG has become today a major fuel in much middle to upper-income households in urban areas. An LPG stove has good controllability; it wastes less energy than a wood stove, and produces less harmful emissions (Smith, 1994). As biomass fuels are substituted, mainly with LPG, the use of LPG in urban households is steadily increasing.
Due to government policy, LPG cylinders are subsidized and are available at reduced prices. However, they are not easily available. Some private firms are authorized to market LPG cylinders and these are easily available, but are relatively costly. Most LPG cylinders weigh 15kg and last about a month, when used for cooking only. Some households in urban areas prefer to use kerosene for water heating and LPG for cooking.
Four Public Sector Oil Marketing Companies (OMCs) viz., Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and IBP Co. Limited are engaged in marketing of LPG in the country. With increased availability of LPG, the number of LPG customers enrolled by them has also been increasing. The number of LPG customers served by them, as on 1.4.2005, was about 845 lakh through their network of 9,001 LPG distributors. Consequent upon liquidation of LPG waiting list in urban areas and availability of new LPG connections across the counter, in existing markets throughout the country, OMCs had set the target for release of about 63 lakh new LPG connections during financial year 2004-05 with a thrust on smaller towns/rural areas which were hitherto virgin markets. OMCs have already commissioned 535 distributorships. During the year 2004-05, OMCs had...