Feasibility Analysis in Setting up a Retail Outlet
Content
University of Petroleum & Energy Studies
PROJECT TITLE : “TECHNO – ECONOMIC FACTORS CONSIDERED WHILE SETTING UP A PETRO RETAIL OUTLET”
Submitted to :
Mrs. Namita Pragya
Submitted By :
Sanchit Baijal BBA Oil & Gas Marketing Enrolement No. R170210040 SAP ID- 500011864 Batch : 2010-201
Contents
1. 2. 3. 4. 5. 6. 7. 8. 9. Introduction Overview of Petro Retail Outlets in India Overview of city Dehradun Steps involved in setting up an Retail outlet Site information Precautions taken care for site selection Technological & Economical Factors invoved in setting up an Retail outlet Three proposed location to open a new Retail Outlet Comparison of the 3-Proposed Sites according to various Parameters
10. Conclusion
Introduction
A Petro Retail Outlet is one from which Petrol & diesel is sold or is offered for sale to consumers/the public for purposes of use or consumption. These retail outlets is opened by a particular company in any place it requires like in the country . A retail outlet offers consumers engine oil also for there vehicles.
Types of Retail Outlets :
1. COCO : Retail outlet which is Company Owned Company Operated means that an RO is opened by the company in the area which company desires & all the employees are elected by the company itself. 2. CODO : Retail outlet which is Company Owned Dealer Operated means that an RO is owned by the company i.e it set up whole RO & it gives to a Dealer who will operate this Retail outlet. In Profits are shared between Company & Dealer. 3. DODO : Retail outlet which is Dealer Owned Dealer Operated means that an RO is both owned & operated by the dealer itself, he shares the profit itself.
Overview of Petro Retail Outlets in India
India has approx 25000 Petrol stations. Almost 17000 Petrol Stations belongs to IOCL, 5000 each of BPCL and HPCL. IOCL has more nos of Petrol Stations than whole of Canada or UK. The Punjab state of India has approx 700 nos of Petrol Stations or Retail Outlets as discussed in official language. The state of Haryana has more than 500 Petrol Stations alone.
Overview of City Dehradun
Dehradun is the provisional capital of Uttarakhand state. It is nestled between the Himalayan foothills to the north and the Shivaliks to the South. The town offers breathtaking scenery. City of Dehradun is major hub of tourists of india . Many People from India , comes here for there recreation activity & to enjoy the weather of Dehradun. Dehradun is situated at an altitude of 2,200 ft in the Doon Valley between two of the most important rivers in India, the Ganga and Yamuna. It offers beautiful scenery and a moderate climate in summer, and so is an ideal place to relax and escape the heat of the plains below. The town also serves as a convenient base for visiting the area's many tourist sites. Dehradun has experienced tremendous growth in recent years, and currently has a population of around 550,000. It is also famous for the Doon School, which is often referred to as the Eton of India.
Steps involved in Setting up an Retail outlet
Find out a proper location to open a Reatil outlet. Availability of land Cost of the land After seeing the cost of land we have to do a traffic count that is number of vehicles going from that location. See the Terrain of land i.e the vertical and horizontal dimension of land surface. A stretch & side of the road is selected & proposed location of the site is located on the map: Having done so a shorter stretched on the road is selected Class of the market to be identified The proposed location are short listed. Apply for a retail outlet licence We have to take NOC’s from various departments Build a proper Infrastructure Do a proper Storage facilities Applications for allied businesses Fire fighting equipments Automations Valves IT services Canopy i.e top of the our petrol Pump Design a proper drive way Air and pollution check
Site Information(Marketing Intelligence) –
Marketing intelligence is important for planning & setting up an new Retail Outlet Informaton of MI contains: a. b. c. d. e. Population Counts Spending Habbits New Development Nearby ATMs , Petrol Stations, Convinient stores Age Profile
Precautions Taken care for site selection:
No high tension wire passing through it. No big drain at the approach. Site should be free of Big trees. Should not be any proposed Flyover or road widening. No court case on the land. The land should be earmarked The site meets all requirements of explosives PWD(Public Works Department) should pass that site. Distances to major landmarks from our RO . See whether that location is on a National Highway or not.
Technological & Economic Factors Involved in setting up an Retail Outlet
Technological Factors : 1. Dispencing Units 2. Automation 3. Valves 4. Storage facility 5. Fire Fighting Equipements 6. Tanks & Pumps 7. Automatic Tank Gauging
Economic Factors : 1. NOC’s from various Departments 2. Allied Retail Business 3. Salaries & wage 4. Lobour Cost 5. Land & construction Cost 6. Tie ups with different stores
Three Proposed Locations to Open a new Petro Reail Outlet
1. Rajpur : This site is basically located in the heart of Dehradun,
all the people come here for there recreation purpose. An Retail Outlet to open this site is good because it is a densily populated area & many people pass by from the Rajpur road. This location is also very good for a new retail outlet because its surrounding area is full of shops & Cinema Hall etc so an individual stops here for there recreation & there by its sales can increase.
2. Ballupur: This site is in central location of Dehradun i.e.
it connects to every place in Dehradun like from here we can reach ISBT bus stand, Rajpur road, ONGC bhavan etc. This site is very busy daily most of the vehicles from light to heavy vehicles passes from here . For an Retail Outlet to open this site is good because it is an area where there is no competitors in the circle of 3 Km. So it enjoys the the benefit of more sales .
3. Sela qui: This site is near industrial area & pharma city. Various
Schools & Colleges are also near to it. Cost of land is very low in this area . For a retail outlet to open in this could be beneficial.
Comparison of the 3-Proposed Sites according to various Parameters
Parameters
Land Availability Land Cost Location In & Around proposed sights Visibility Of the Location Class of people Population Density Legal Issues Environmental Factors Traffic Density Fire & Police Facility Other Competitors Availability of Technology Automobile Frequency Manpower Availability Presence of High Tension Wires Dividers Flyovers Parking Facility Any Proposed Flyover or Divider in near Future
Rajpur
Less Maximum Posh Area Less visible High class High No Low High Yes Many Yes Medium Yes No Yes No No Not yet
Ballupur
High Reasonable Trade ,Education & Transportation Hub Highly Visible Medium Class High No High Maximum Yes Few Yes High Yes No No No Yes Not yet
Sela qui
Very High Minimum Industrial Area Visible Lower Class Low No Very High Low No Yes Yes Average Yes No No No Very less Not yet
Conclusion
I have conducted my survey on all the three sites in dehradun& finally I came to conclusion that Ballupur is the best suitable site for my retail outlet to be set up.
I finalized Ballupur Because of the Following Reasons: It is in the Central location of Dehradun Traffic Density is Maximum on the road It has three major factors of this location : It is a trade hub It is a education Hub It is a transport Hub
Connects to the national haighway 72 Easily approachable Roads are wide Few competitors are there Class of people residing Major availability of institutions like fri, ima , branded showrooms like automobile showrooms , garments showrooms , sports showrooms etc.
Thank You
PROJECT TITLE : “TECHNO – ECONOMIC FACTORS CONSIDERED WHILE SETTING UP A PETRO RETAIL OUTLET”
Submitted to :
Mrs. Namita Pragya
Submitted By :
Sanchit Baijal BBA Oil & Gas Marketing Enrolement No. R170210040 SAP ID- 500011864 Batch : 2010-201
Contents
1. 2. 3. 4. 5. 6. 7. 8. 9. Introduction Overview of Petro Retail Outlets in India Overview of city Dehradun Steps involved in setting up an Retail outlet Site information Precautions taken care for site selection Technological & Economical Factors invoved in setting up an Retail outlet Three proposed location to open a new Retail Outlet Comparison of the 3-Proposed Sites according to various Parameters
10. Conclusion
Introduction
A Petro Retail Outlet is one from which Petrol & diesel is sold or is offered for sale to consumers/the public for purposes of use or consumption. These retail outlets is opened by a particular company in any place it requires like in the country . A retail outlet offers consumers engine oil also for there vehicles.
Types of Retail Outlets :
1. COCO : Retail outlet which is Company Owned Company Operated means that an RO is opened by the company in the area which company desires & all the employees are elected by the company itself. 2. CODO : Retail outlet which is Company Owned Dealer Operated means that an RO is owned by the company i.e it set up whole RO & it gives to a Dealer who will operate this Retail outlet. In Profits are shared between Company & Dealer. 3. DODO : Retail outlet which is Dealer Owned Dealer Operated means that an RO is both owned & operated by the dealer itself, he shares the profit itself.
Overview of Petro Retail Outlets in India
India has approx 25000 Petrol stations. Almost 17000 Petrol Stations belongs to IOCL, 5000 each of BPCL and HPCL. IOCL has more nos of Petrol Stations than whole of Canada or UK. The Punjab state of India has approx 700 nos of Petrol Stations or Retail Outlets as discussed in official language. The state of Haryana has more than 500 Petrol Stations alone.
Overview of City Dehradun
Dehradun is the provisional capital of Uttarakhand state. It is nestled between the Himalayan foothills to the north and the Shivaliks to the South. The town offers breathtaking scenery. City of Dehradun is major hub of tourists of india . Many People from India , comes here for there recreation activity & to enjoy the weather of Dehradun. Dehradun is situated at an altitude of 2,200 ft in the Doon Valley between two of the most important rivers in India, the Ganga and Yamuna. It offers beautiful scenery and a moderate climate in summer, and so is an ideal place to relax and escape the heat of the plains below. The town also serves as a convenient base for visiting the area's many tourist sites. Dehradun has experienced tremendous growth in recent years, and currently has a population of around 550,000. It is also famous for the Doon School, which is often referred to as the Eton of India.
Steps involved in Setting up an Retail outlet
Find out a proper location to open a Reatil outlet. Availability of land Cost of the land After seeing the cost of land we have to do a traffic count that is number of vehicles going from that location. See the Terrain of land i.e the vertical and horizontal dimension of land surface. A stretch & side of the road is selected & proposed location of the site is located on the map: Having done so a shorter stretched on the road is selected Class of the market to be identified The proposed location are short listed. Apply for a retail outlet licence We have to take NOC’s from various departments Build a proper Infrastructure Do a proper Storage facilities Applications for allied businesses Fire fighting equipments Automations Valves IT services Canopy i.e top of the our petrol Pump Design a proper drive way Air and pollution check
Site Information(Marketing Intelligence) –
Marketing intelligence is important for planning & setting up an new Retail Outlet Informaton of MI contains: a. b. c. d. e. Population Counts Spending Habbits New Development Nearby ATMs , Petrol Stations, Convinient stores Age Profile
Precautions Taken care for site selection:
No high tension wire passing through it. No big drain at the approach. Site should be free of Big trees. Should not be any proposed Flyover or road widening. No court case on the land. The land should be earmarked The site meets all requirements of explosives PWD(Public Works Department) should pass that site. Distances to major landmarks from our RO . See whether that location is on a National Highway or not.
Technological & Economic Factors Involved in setting up an Retail Outlet
Technological Factors : 1. Dispencing Units 2. Automation 3. Valves 4. Storage facility 5. Fire Fighting Equipements 6. Tanks & Pumps 7. Automatic Tank Gauging
Economic Factors : 1. NOC’s from various Departments 2. Allied Retail Business 3. Salaries & wage 4. Lobour Cost 5. Land & construction Cost 6. Tie ups with different stores
Three Proposed Locations to Open a new Petro Reail Outlet
1. Rajpur : This site is basically located in the heart of Dehradun,
all the people come here for there recreation purpose. An Retail Outlet to open this site is good because it is a densily populated area & many people pass by from the Rajpur road. This location is also very good for a new retail outlet because its surrounding area is full of shops & Cinema Hall etc so an individual stops here for there recreation & there by its sales can increase.
2. Ballupur: This site is in central location of Dehradun i.e.
it connects to every place in Dehradun like from here we can reach ISBT bus stand, Rajpur road, ONGC bhavan etc. This site is very busy daily most of the vehicles from light to heavy vehicles passes from here . For an Retail Outlet to open this site is good because it is an area where there is no competitors in the circle of 3 Km. So it enjoys the the benefit of more sales .
3. Sela qui: This site is near industrial area & pharma city. Various
Schools & Colleges are also near to it. Cost of land is very low in this area . For a retail outlet to open in this could be beneficial.
Comparison of the 3-Proposed Sites according to various Parameters
Parameters
Land Availability Land Cost Location In & Around proposed sights Visibility Of the Location Class of people Population Density Legal Issues Environmental Factors Traffic Density Fire & Police Facility Other Competitors Availability of Technology Automobile Frequency Manpower Availability Presence of High Tension Wires Dividers Flyovers Parking Facility Any Proposed Flyover or Divider in near Future
Rajpur
Less Maximum Posh Area Less visible High class High No Low High Yes Many Yes Medium Yes No Yes No No Not yet
Ballupur
High Reasonable Trade ,Education & Transportation Hub Highly Visible Medium Class High No High Maximum Yes Few Yes High Yes No No No Yes Not yet
Sela qui
Very High Minimum Industrial Area Visible Lower Class Low No Very High Low No Yes Yes Average Yes No No No Very less Not yet
Conclusion
I have conducted my survey on all the three sites in dehradun& finally I came to conclusion that Ballupur is the best suitable site for my retail outlet to be set up.
I finalized Ballupur Because of the Following Reasons: It is in the Central location of Dehradun Traffic Density is Maximum on the road It has three major factors of this location : It is a trade hub It is a education Hub It is a transport Hub
Connects to the national haighway 72 Easily approachable Roads are wide Few competitors are there Class of people residing Major availability of institutions like fri, ima , branded showrooms like automobile showrooms , garments showrooms , sports showrooms etc.
Thank You
