1. Gap Analysis for HP Gas
Debashish Joel
Divyanshi Gupta
Iris Charu Gomes
Murali Krishnan S
Nagappan Krishnan

2. HPCL
• Second largest LPG manufacturer in India
• Over 21 million customers, network of over 2200 distributors
• Removal of subsidies - Seller’s market to buyer’s market
• Need to improve service delivery and build a strong positive brand image
• Untapped rural market and saturating urban market

3. HPCL
• Existing customer(mainly urban) satisfaction depends on –
Safety, convenience, quick delivery, right weight etc.
• VAS – Delivery within 24 hours, 8 am to 8 pm delivery, new connection in 24
hours, 4-digit IVRS for booking and inquiries, refill booking through internet
• Millennium distributors
• Guaranteeing the right weight through “promise yahi, weight sahi” campaign
• Strong positive service and greater satisfaction among the customers through “Ji
Haan” campaign resulting in “HPCL, a well behaved, responsible, high profile, kind
at heart person”

4. Customer Gap
Customer expectation of service quality
Rural customer: Safety, value for money, accessibility, right weight
Urban customer: Safety, convenience, timing of delivery, right weight,
quickness of delivery
Customer perception of service
“Well-behaved, responsible, high profile, kind hearted person”
Reliable and quick service
Service quality – Bingo!
Product quality – No evidence to suggest anything wrong
Price – “High Profile” suggests that it is perceived as premium.
Customer Gap – value for money, timing of delivery
How the company is filling the gap – smaller 5 KG LPG for rural areas, Rasoi Ghar initiative. No action on “timing
of delivery”
•

5. Listening Gap
Market Research Orientation
Adequate research has not been done.
The rural markets and the urban non-users should have been researched separately.
The results of the customer satisfaction survey are not generalizable to non-users and rural customer.
Upward communication
No evidence of any issues
Relationship focus
Expectations of different segments differ between urban and rural market.
Company is focusing on relationships rather than transactions. This is evident the customer loyalty programme
Service Recovery
Emergency call center and Medical insurance are examples of good service recovery mechanism
Provider Gap 1: Research not generalizable, rural segments and non-users should be studied separately.
How the company is filling the gap – No mention about this in the case

6. Standards and Service Design
Gap
Proper Service Design
Phased rollout of incentive programs shows existence of service development infrastructure.
No evidence to suggest any loopholes in the service development infrastructure.
Customer-Driven Standards
The weighing initiative came from the customer apprehension of ensuring right weights. This means HPCL’s
standards are customer driven.
Appropriate physical evidence
2 exclusive filling plants for rural areas
The distributor network expansion from 1000 to 1900 distributors
Provider Gap 2: No Gap

7. Service Performance Gap
Effective HR Policies
No mention in the case though overall service quality excellence
suggests HR policies are effective
Effective Role fulfilment by customers
No data given to evaluate the role fulfilment by the customers. Perhaps, if % of people adopting loyalty
programs is known, we can comment.
Effective alignment with service Intermediaries
“Millennium Distributors” is a good training initiative that suggests HPCL aligns its service intermediaries with
its own image
Alignment of Demand and Supply
No data available

8. Service Performance Gap
(Contd)
Urban customers
Attributes Degree of importance Performance
Correct weight Very important Good
Safety Very important Good
Timing of delivery Very Important Average. Working women
may want the cylinder to be
delivered at a particular
time.
Quick Delivery Important Good
Environment friendly Not important Good

9. Service Performance Gap
(Contd)
Rural customers
Attributes Degree of Performance
importance
Value for money Very Important Good
Accessibility Very Important Average. 60% of India is rural. Only
2 rural plants?
Right weight Important Good
Awareness Important Poor. No mass awareness drive by
HPCL yet.
Environment-friendly Not important Good
Provider Gap 3: Less rural plants, Very little rural awareness programs, Urban timing of delivery
How the company is filling the gap – Expanding the distributor network is a good sign but much more required

10. Communication Gap
Integrated Service Marketing Communications
Partnership with JWT
“Ji Haan” message consistent with the brand image of well-behaved, responsible and
kind-hearted person
“Promise Yahi, Weight Sahi” campaign
Pricing
Perceived to be a premium product. HPCL should create, communicate and deliver more value for the price
being charged.
Provider Gap 4: Not communicating value for the price charged
How the company is filling the gap – By providing services like distinct value-added services like Internet
booking etc., the company is on the right track