ONGC Marketing Mix

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Marketing Mix of ONGC analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the ONGC marketing strategy. The article elaborates the pricing, advertising & distribution strategies used by the company.

Let us start the ONGC Marketing Mix:

Product:

ONGC is one of the largest companies in India. Being the second largest oil generation and exploration company in India, ONGC provides a plethora of petroleum products. The product mix in the marketing mix of the company includes crude oil, Natural gas, Liquefied Petroleum Gas, Naphtha, Methane Propane rich gas, Kerosene and other by products. These crude oils are sold by ONGC to the refineries which further uses them to produce gasoline, diesel, kerosene, cooking gas and primarily for domestic consumption. Natural gas excavated are further processed to process hydrocarbons like methane, butane, propane, ethane, pentane etc. Approximately 50% of the crude oil excavated by Oil and Natural Gas Corporation are processed to make Gasoline, primarily because of its great demand, 40% is used to produce jet fuel and heating fuel. Naphtha is a by-product of the distillation process of crude oil and although it is a residual product; it is widely used in industrial applications to produce other products.


Image: company website


Price:

ONGC is a government owned enterprise and is one of the largest one. Though ONGC faces competition from other oil companies like Bharat Petroleum, Hindustan Petroleum, Reliance Industries Limited and Indian Oil Corporation Limited; yet it prices it products in controlled levels making a fixed amount of profits from them. The price of the crude oil also depends on the international price of the crude oil which India depends upon and imports heavily. The price of crude oil currently hovers around $50 per barrel. In lieu with governments policies towards making households run on eco-friendly fuels, ONGC prices natural gas at very cheap prices. These are primarily purchased by household suppliers and gas stations. LPG which is extensively used in household for cooking is priced at ₹600 per cylinder. Price of kerosene oil is highly subsidised by the central government as it is widely used as cooking oil in rural areas. In such a case price of Kerosene oil typically hovers around ₹15 per litre. This gives an overview on the pricing policies in its marketing mix.


Place:

ONGC do not directly sell the petrochemicals to the final consumers. There is a step by step approach by which the products finally reach to its end users. Oil and Natural Gas Corporation sells the natural gas via bulk marketing channels through Gas Authority of India Limited under strict regulations and policies of the central government. The pipelines setup by ONGC which in collaboration with the regional gas line pipes caters natural gas to the states of Tripura, Tamil Nadu, Maharashtra, Gujarat, Assam and Andhra Pradesh. Also in few of the states like Tripura, Andhra Pradesh and Pondicherry ONGC sells Natural Gas directly to its end users. ONGC in collaboration with MRPL, IOCL and GAIL sells the gasoline, diesel and jet fuel. ONGC has an extensive distribution and pipeline network in its marketing mix strategy. At first the crude oil extracted is sent to refineries maintained by these oil companies; then they sell these to the end customers. Naphtha which is a by-product has got wide industrial application is sold to the prospective buyers in bulk business to business sales.


Promotion:

ONGC promotional activities primarily include print media. ONGC’s advertisements are always featured in all national and regional dailies across India. It also advertises on Television but less frequently. Advertisements by billboards is done on rare occasions. ONGC concentrate most of their energy and money on sustainability and Corporate Social Responsibility activities. Carbon Neutral mission particularly targets in achieving and minimising the carbon footprint and also reduce the emission of greenhouse gases. National Gas Star Program strives in reduction of methane emission due to its daily operations, as Methane is a very poisonous gas for the environment. Sustainable Water management techniques targets in reduction of fresh water usage and reduces the wastage of fresh water. This completes the (Oil and Natural Gas Corporation) ONGC marketing mix.


About ONGC (Oil and Natural Gas Corporation):

Oil and Natural Gas Corporation or ONGC is an oil and gas company. It is a PSU, it is undertaken by Government of India. It is one of the fortune 500 companies in the world. It is also the largest oil exploration company in India. The roots of ONGC had started from pre-independence era, but it got better growth after the liberalization of the Indian economy in the year 1991. Its subsidiaries include ONGC Videsh and ONGC Sports. ONGC Videsh looks after oil exploration and extraction in the foreign sector. ONGC Sports owns and sponsors many sports teams in various sports. It has got joint ventures with Tripura Power Company and Petro Additions Ltd. Its headquarters is at Dehradun in Uttarakhand. Headed by its chairman Dinesh Kumar Sarraf, having annual revenues of ₹77993 crores ONGC is the 2nd largest Public Sector Unit in India.

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The names and other brand information used in the Marketing Mix section are properties of their respective companies. The companies are not associated with MBASkool in any way. The brand names are used purely for educational/academic purpose only.

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