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 a 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

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)

Sales Trend (in TKL)
1200
1088

1000
852

800
629

600
400
200
0

863

486
339

503

Sales (TKL)
350
254
134
33

32

Exhibit 2: Speed Network Trend (2003-2015)

Network Trend (Nos.)

4500
4000
3500
3000
2500
2000
1500
1000
500
0

3452

3795 3996

3491
2773

2634

2386

1812

1599

No of ROs

1108

615 500

Exhibit 3: Conversion (%) (2003-2015)

Conversion %
30
26.53

25

23.18

20

18.05

15
10
5
0

18.97

14.04

9.84

Conversion %

9.98
6.36

4.35

2.16

0.49 0.52

Exhibit 4: Speeds Performance in FY 2015-16

Volume (in KL)

Network (in Nos.)

2610
2372

35300

2058
1738
1260
811

400

452

520

4800

4200

4600 6100

42200

26600

20300

11700

APRIL MAY JUNE JULY AUG SEPT OCT

NOV

DEC

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 17th March 1955. The Burmah Shell Group of Companies was taken over by the
Government of India to form Bharat Refineries Limited. On 1st August 1977 the company was
rechristened Bharat Petroleum Corporation Limited.
Bharat Petroleum Corporation Limited (BPCL) is a Navratna Public Sector Undertaking and a 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.