retail - case

8/4/2019 Retail - Case

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How to fuel an innovationin concept: The

NRL thrust A Case study.

In the realm of petro-retailing, launching a small refining company from a remote up-countrylocation to the mainstream of marketing amongst existing giants like IOC, BPCL, HPCL, IBP,

Reliance, Essar, Shell, ONGC, etc. means an everyday fear of facing extinction in a marketdominated by established players. This is how Numaligarh Refineries Limited (NRL) is

attempting to cross the divide...

The in-road challenge was mainly to capture the mindshare and create high recall branding of

NRL in the minds of the customers. The composite marketing strategy of NRL was to project it

as dynamic and sensitive to changing user expectations. Conceived, designed and developed by

Bharat Petroleum Corporation Ltd., the result creates a dramatically different petro retail outletfrom existing formats, through innovative amenities, indigenous ingenuity and world-class

service.

Having entered the retail sector in 2006, the company will end up with 35 outlets in Assam this

year. Plans are afoot to have 125 outlets in the state in the next two years. Also, 102 locations

have been identified in West Bengal, Sikkim, Bihar , Chhattisgarh, Jharkhand and Orissa forsetting up retail outlets. The action plan includes the set up 510 retail outlets spread over eastern

and parts of northern and southern region of India .

At first glance, an NRL outlet's aero-foil shaped horned canopy with an aesthetically curved

inner structure, tapered columns, monolith and other signages creates an inviting atmosphere.

And, depicts stark digressions from contemporary conventional retail outlets visible in the

country, thereby branding the retail station as an Energy Station connoting a future lookingorganisation with future fuels/ energy in mind.

Value-added services prefixed Quick such as Quick Shoppe, Quick Service, Quick Bank,

Quick Call, Quick surf, Quick Lube, Quick Bite etc. depict prompt and efficient services.

With the aim of attracting customers and assuring them of the experience of a quick and

pleasurable fuelling stop, high quality service and to create awareness on quality, quantity and

safety, several unique sales proposals (USPs) as mentioned below are visible at the NRL EnergyStation:

Design/ Engineering elements at the NRL Energy StationHighly distinct and differentiated design

NRL retail outlets were conceived and created with starkly distinct and differentiated designfrom any other petroleum retail outlet in the country. This brings to NRL a high level of brand

recall and advertises itself to lure customers. The stations are planned as a self sustaining revenue

earning resources besides sale of fuel and other value-added services through the avenues of


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advertising. NRL is not advertised as a brand but the composite plan at the Energy station

advertises itself to lure customers.

Aerofoil shaped canopy

To break monotony, the canopy was designed as a cantilevered one with an aerofoil shapedroofing. Unlike the conventional canopies, which are given backlit fascias, the canopy was notbacklit. In fact, the canopy signages at the front and sides were well lit.

Besides this, the horn structures (representing the horn of the hippothe beast of the North East)at the top of the canopy were lit to attract customers from a distance.

Compound Wall

The compound wall, which otherwise was conventionally used only for site security purposes,

was also made a brand element in NRL with colour railings matching the NRL theme. The street

lamp posts are coloured in the same theme and placed to match the other elements, therebylending uniformity to the ambience.

Office Signages

The office roof structures have been designed to match the aerofoil design of the canopy. Their

modularity gives the increased advantage of extension in future business propositions while stillmaintaining uniformity, thus making the formal language of the outlet more pronounced andattractive through the use of brand colours.

Parallel display unit

A major attraction among the customers, as the vehicle operator observes the fuel dispensing athis front through TV screens along with enlarged LED-displayed parallel indication of fuelling

quantity and rates. This also is an entertainment source for co-passengers with revenue earning

resource through advertisements.

Bay Status IndicatorUnseen in any petro-retailing station, the Red & Green lights for Wait & Go indications on the

canopy pillar facilitates the customer to choose among the free bays for fuelling as he enters.

ScrollersThese display the safety, quality and quantity awareness promotion among consumers in an

innovative and educative way, instead of the normal practice of pasting the statutory signs. Thisunique feature captures the mind of the customer as he is able to appreciate the reasons. It also

works towards advertising and entertainment for co-passengers, while being a revenue earning

resource.


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Add on Unit

The transparent top three shelves of this multi-purpose facility provides an excellent opportunityfor displaying co-branded products and attracts a customer's attention.

Automatic Bill Print Out

This system for every sales transaction assures quantity delivery. Illumination Importedluminaries of Philips with up-lighters and down-lighters provide highest colour rendering index

for customers to appreciate the creativity, beauty and also provide adequate visibility at thefuelling bay. The concept of symmetric and asymmetric luminaires have been introduced for the

first time in India through NRL stations.

Monolith with Auto price change unitA dynamic, computerised system to remotely change prices from the sales room. This futuristic

thought of adjusting prices can provide a better competitive edge in price wars in a free market

scenario.

MaterialsNew technology materials such as aluminum composite materials, PET G, Zinc alum sheets and

3M Vinyls were used for developing these Designer Outlets. 3M materials were used formonoliths, spreaders, logos and fascia signages.

Mini 300 luminaires designed exclusively for petrol station applications were introduced toachieve symmetric and asymmetric lighting requirements. Depending upon space availability inthe supporting structural members, Compact Fluorescent Lamps (CFLs) were used. Life cycle

costing of the elements were taking into consideration while selecting the materials and

components.

To achieve harmonisation in branding, colours of NRL and the curve ndicating rising Energy ofthe East were used in every possible element of the outlet for powerful brand recall.

Quick Questions

When was the blueprint for NRL devised?The blueprint for NRL was devised way back in April 2004. The main challenge was to create a


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distinct identity in petrol retailing through innovation, world class infrastructure and services,

that were different from the present established market players. Another challenge was toexecute a different canopy design that would replicate the look of a space station! NRL says it

took utmost care in selecting the brands for its requirements. The aim was to have a low life-

cycle cost for all the material that was used.

Are NRL energy stations an integral part of BPCL stations or stand-alone and

independent?NRL is a subsidiary company of BPCL, however permission from Ministry Of Petroleum and

Natural Gas was taken to develop retail outlets on stand-alone and independent basis.

How many NRL stations are there in existence and where?There are at present about 59 retail outlets of NRL that are located in north, south east and north

east states. The first retail outlet of NRL was commissioned at Kaziranga, about 240 km from

Guwahati (Assam), which is a world heritage centre for the Rhino.

What is the average size of an NRL station?Average size of an NRL retail outlet is about 150 feet (front) x 120 feet. The size of the retail

outlet depends upon various customer-oriented facilities like a dhaba, if required.

What is the average investment?Average investment on a retail outlet/ Energy Station is about Rs.1.2 crore. Investment on theoutlet depends on how many customer oriented facilities like a dhaba are to be included,throughput, and location of the station.

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