SPEED CASE STUDY

Speed : Brand Revival Strategies

Bharat Petroleum Corporation Limited, has been a leading players in the Indian
Petroleum Industry known for its marketing acumen and customer centric businesses
and initiatives.
The Retail Business of Bharat Petroleum, with more than 13000 Fuel Stations across
the length & breadth of the country, meets the needs of customers on the move,
offering

differentiated

fueling

experience,

assured

product

quality,

high

performance fuel, clean CNG to daily essentials.

Bharat Petroleums offerings include World-class Fuel Stations across the country,
from the bustling cities and highways to the rural hinterlands. Their products and
services are designed to meet the needs of diverse set of customers across
geographies.
The company is credited for offering many firsts in the Oil Industry in the form of
pioneering customer assurance programs such as Pure for Sure, Pure for Sure
Platinum, One Stop Truck and Tourist Shops-Ghar, Highway Stars; Indias first fuel
Loyalty Programs- PetroBonus & SmartFleet; Indias first branded fuels Speed, Hi
Speed Diesel and Speed 97, powered by multi functional additives to deliver superior
driving experiences and sustained peak engine performance; most comprehensive
non fuel Convenience offerings to name a few.
Way back in 2002, even before the full scale entry of new generation car
manufacturers in the Country, Bharat Petroleum launched their first new generation
premium petrol under the brand name, 'Speed'. Another first by the oil major, known
for its obsession for introducing several customer focused initiatives ahead of its
times. Soon after, the two other leading oil companies, Indian Oil Corporation (IOC)
and Hindustan Petroleum Corporation Ltd. (HPCL) also launched their own branded
fuels.
Branded fuels were introduced with a view to offer a clearly differentiated product for
the new generation engines winning over the customers preference and satisfaction.
The product addressed customers growing concern about their vehicles performance
and care and environmental impact of harmful emissions. From the Companys

perspective, it demonstrated its core values of Care, Innovation and Reliability while
improving brand image and winning over loyal customers.
The introduction of premium additive based fuels was a welcome change in the rather
commoditized fuel market of petrol and diesel, as a result of the proactive steps taken
by the Oil Companies post the liberalization period. The industry was getting more
competitive and

339

503

1200

486

350

200

Sales Trend (in

629

254

400

TKL)

852

134

600

1088

33

800

863

32

1000

Sales (TKL)

customer driven as the fuel stations transformed from outlets dispensing petrol and
diesel to fuel and non fuel destinations offering convenience and value adds for
motorists.
The Industry experts viewed this as a trend in line with the global trends to introduce
new generation fuels to woo consumers buying new generation cars.
Speed was a marketed as a superior fuel with multifunctional additives that enhanced
engine performance, lower emissions and better drivability. It also delivered on the
promise of improved mileage. The multi functional additives were sourced from
Cheveron Oronite Company LLC, USA.
Exhibit 1: Speeds Sales Performance Trend (2003-2015)

1108

0.52

1599

2634

3452

10

3795

15

3996

20

3491

25

2773

30

2386

Conversion %

1812

Conversion %

615

Exhibit

500
0
500
1000
1500
2000
2500
3000
3500
4000
4500

Network Trend
(Nos.)
No of ROs
9.84
14.04
18.05
23.18
26.53
18.97
9.98
6.36
4.35
2.16
0.49

2:

Speed

Network

Trend (2003-2015)
Exhibit

3:

(2003-2015)

Conversion

(%)

4800

452

MAY

Volume

4200

520

KL)

4600

811

JUNE

6100

1260

11700

1738

AUG

20300

2058

SEPT

Speeds

26600

2372

OCT

Performanc

35300

2610

42200

APRIL

400

JULY

NOV
DEC

Network

(in
(in

Nos.)
Exhibit

in

2015-16

4:

FY

Speeds journey as the first new generation fuel brand was an exciting one. The
brand became synonymous with Motor Sporting activities in India, involving
Formula 1 association by sponsoring Narayan Karthikeyan, identification,
nurturing and supporting Motor Sporting talent in the country, GoKarting
Championships, Amateur Motor Racing, Speed Run Indias first drag race
format, sponsoring young engineers for designing race cars and meet & greet
events with brand ambassador. Speed also introduced Indias First Motor Sports
Quiz, Speed I Quiz in partnership with a leading Media House. Fueling the
passion of many Motor Sport enthusiasts in the country, Speed became the
most loved brand in the category and a market leader with over 40% market
share.
Speeds positioning on performance and association with motorsports was
enhanced and taken to another level by bringing on board MS Dhoni, Indias
master blaster as a brand ambassador along with Narain Karthikeyan.
Speed and travel go hand in hand, a campaign Take the first road out was
launched to promote travel and getaways with partnerships with leading travel
publications.

Exhibit 5: Brand Communication

Exhibit 6: Speeds Recent Campaign

Exhibit 7: Speeds Recent Events

Speed Royal Riders Rally Speed Treasure Hunt
After a great start and an overwhelming response from the market, Speed,
which was sold at a mere Rs. 1.5 to Rs. 2 higher than normal petrol, not only
became the highest selling premium fuel, but also enjoyed high brand equity as
a result of the investments made by BPCL.
However, success comes with its own set of challenges. For starters, the brand
faced a threat from some negative reports of engine damage on account of the
branded fuels, without establishing the real cause of damage. Media companies
caught on to the misinformation and carried reports disestablishing the
performance claims of branded fuels. The anti-branded fuels movement caught
on and was amplified beyond proportions. To make it worse for the Oil
Companies, in 2009, new duties were introduced on branded fuels, which further
increased the price of branded fuels by Rs. 7- 8 per litre more than normal fuels.
In 2012, the government withdrew the subsidy support for branded fuels, which
further increased the prices of branded fuels to Rs. 10-12 per litre over the
normal fuels. Due to the high price differential, sales plummeted as the market
shrunk and brands suffered from waning demand.

Speed which was widely used by motorists and bikers now was bought only by
premium luxury car and bike owners.
In a positive move by the Government in 2015, the duties on branded petrol was
reduced from Rs. 7.50 to Rs. 2.35 a litre. This has come as a blessing for Oil
Companies and the consumers too!
Marketing Challenge
Bharat Petroleum is now determined to take Speed to newer heightsand
become the No. 1 premium fuel with the highest brand equity in the category in
the current Financial Year.
Addressing the following pointers, recommend a Brand Revival Strategy for
Speed.
1. How can Speed improve its popularity and become the most preferred brand
in the category.
2. Suggest a suitable communication strategy for the Brand?
3. Suggest a 360 degree revival strategy for brand Speed, keeping in mind its
legacy and positioning.
About Bharat Petroleum Corporation Limited
Bharat Petroleum has a rich legacy. Burmah Shell Oil Storage Distributing Company
of Indian Limited was formed in 1928 as a result of Asiatic )Petroleum (India) joining
hands with Burmah Oil Company. A pioneer in more ways than one, Burmah Shell
began operations by importing and selling kerosene. The advent of motorcars
brought in canned gasoline and service stations.
In the mid 1950s, the company launched Liquefied Petroleum Gas (LPG) as a
cooking fuel in Indian homes. The newly incorporated 2.2 million metric tonnes per
annum Burmah Shell Refineries Limited went on stream on 17 th March 1955. The
Burmah Shell Group of Companies was taken over by the Government of India to
form Bharat Refineries Limited. On 1 st August 1977 the company was rechristened
Bharat Petroleum Corporation Limited.
Bharat Petroleum Corporation Limited (BPCL) is a Navratna Public Sector
Undertaking

and

Fortune

500

Oil

Refining,

Exploration

and

Marketing

Conglomerate. BPCL markets the full range of petroleum products needed by the

transport, power, agriculture and aviation sectors. It also substantially caters to the
requirements of fertilizer plants, other industries and domestic users apart from the
petrochemicals industry itself. The company has an impressive and diversified
portfolio that includes automobile fuels, unleaded petrol, high speed diesel and high
performance branded fuels like Speed, Speed97, Hi Speed Diesel and the MAK
brand of lubricants. The Corporation has over 13000 fuel stations across the length
and the breadth of the country.
Bharat Petroleum Corporation Limited (BPCL) has become one of the most
formidable names in the petroleum industry, largely due to its tenacious pursuit of
qualitative excellence and its indefatigable urge to maximize customer satisfaction.