Market Study for potential of CNG use in Private Vehicles (Incl. Govt.

vehicles) in Delhi

Qualitative Phase Findings Image & Perception of CNG with Private Car Owners
Presented To:Indraprastha Gas Limited BIRD IMRB International Presented by:
Research-based Consultancy for B2B and technology Markets

Background
IGL is promoted by BPCL, GAIL, Government of Delhi and Financial Institutes IGL is the supplier for PNG (Piped Natural Gas) for Domestic use and CNG (Compressed Natural Gas) in Delhi city.

Till now, CNG was allowed only for Commercial Vehicles (Buses, Three-wheelers, Taxis), now RTO has allowed for private vehicles as well.
IGL is currently supplying approximately 7 Lac SCMD of CNG in Delhi, but has the capacity to supply up to 14 Lac SCMD approximately.
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Need for the Study

With the capability to supply more CNG to the city,IGL plans to introduce CNG for Private Vehicles and Government Vehicles in Delhi With the advent of Delhi Metro Rail Network, the use of commercial vehicles for public transport shall be affected, therefore other avenues for CNG use have to be explored

Targeting private vehicle segment thus expands the target market for CNG
To enable development of clear future strategy, IGL would like to assess the image of CNG in consumer mind, as well as gauge the potential demand in this segment.
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Study Design
Study is divided in Two Phases
Qualitative Phase I: Attitude & Perception Towards CNG in

Private Car Owners in Delhi

Quantitative Phase II: Demand Estimation for CNG in Private

Car Owners in Delhi

The current presentation covers Phase I of the Study

Objectives: Phase I
Objectives of Phase I are:
Level of Awareness of CNG as a fuel option among private car

owners
Level of Awareness of maintenance and operation of CNG run

vehicle
Attitudes & perception (including misconceptions) towards CNG as a

fuel option & comparison to other fuels

Strengths & Weaknesses of CNG as a fuel option Awareness & Attitude towards CNG kits and conversion Level of awareness & attitude towards cost economics of CNG as

a fuel vis a vis other options

Current level of satisfaction and future expectations of services

available at CNG filling stations

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Methodology: Phase I
Focus Group Discussions: Specialized Qualitative Research Technique to enable brainstorming & exchange of ideas on a concept
Executed among private car owners of different types of cars

(small car, medium cars and big cars or high end car owners) Highlight the issues related to awareness, perception and customer desires in terms of service requirements at the filling stations

Depth Interviews: Semi-structured face to face discussions to uncover issues related to CNG & its usage
Conducted with various influencer segments CNG kit

dealers/mechanics, government officials & OEMs

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Methodology: Focus Group Discussion

A focus group is a specialized qualitative research technique
8-10 persons of similar demographic profile are brought together to

discuss and express their opinions on specified issues These persons are first screened through pre-determined recruitment criteria to enable a relevant discussion

For these FGDs, the selection criteria were car segment, kilometers driven per month, age of car and employment (salaried vs. business) segment Persons of similar criteria are group together for separate (7 in our case) FGDs

Moderator(s) guide and facilitate the discussion through an

unstructured guide covering the concept & related issues being tested/exposed for opinion of the respondents Focus groups bring out spontaneous reactions, opinions and unbiased views of the target group, to get a clear picture of image & perception on the discussion concept/issue These opinions/ideas can be validated for a large universe through a quantitative approach which derives cues from the FGDs
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Methodology: Recruitment Criteria for Focus Groups

The FGDs for this study related to gauging current image of CNG as a fuel and reaction to its usage in private car segment The selection criteria, therefore, for the participants was:
Fuel Only petrol vehicle owning persons Car Segment Small Car Owners(Maruti 800 owners) Mid Segment I (Zen, Alto, Santro, Matiz, Wagon R, Indica, Uno) Mid Segment II (Esteem, Palio, Siena, Indigo, Corsa, Accent, Ikon) High End Segment (Lancer, Astra, City, Sonata etc.) Age of Car - <3 years & >3 years Kilometers driven per month <1000km (light users), 1500

2000km (moderate users), >2000km (heavy users) Employment Self employed vs. Salaried

Permutations & combinations of the above criteria (explained in sample spread) were taken to see variation in ideas, opinions & perception
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Sample Spread
Focus Group Discussions:
Car Segment Classification Variables
Businessman/Trader with <3 years old vehicle (heavy user >2000km/month) Salaried person with >3 year old vehicle (light user <1000 km/month) Businessman/Trader with >3 year old car (moderate user 1000 2000 km/month) Mid Segment - I

FGDs
1 1 1 1 1 1 1 7 9

Small Car

Salaried person with <3 year old car (moderate user 1000 2000 km/month)
Businessman/Trader with <3 year old car (heavy user >2000km/month) Salaried person with <3 year old car (moderate user 1000-2000km/month) Businessman/Trader <3 year old car (heavy user >2000km/month) Total

Mid Segment - II

High End Segment

Sample Spread

Overall Sample Spread

Segment
Focus Group Discussions Depth Interviews OEMs/Manufacturers Mechanics/Kit Manufacturers/Dealers Government Officials

Sample Size
7 11 3 4-5 4-5

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Findings among Private Car Owners

This Section covers:

Awareness of CNG as Fuel Option Imagery & Perception of CNG

Petrol is top of mind and acceptable fuel for car owners across most segments
For car owners, petrol is synonymous with fuel for their cars
It qualifies as the best option in terms of availability,

performance and quality Various brands of petrol occupy the mind space of consumers as fuel options
SpeedPremium93 Octane
Small Car Owner

Petrol is the best fuelquality is good and it is available

everywhere
Mid Segment I Car Owner

All other fuels are a secondary option and benchmarked in terms of performance with petrol
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Diesel comes a poor second to petrol, while others fall well below in the order of preference
Diesel is viewed as a poor mans fuel taxi & bus drivers
An option for those who cannot bear the expenses of petrol An option for those clocking high number of kilometers However, the fuel cost advantage is offset by a number of

operational problems that the fuel creates for the car owner
Diesels advantage is that it saves cost
Mid Segment II Car Owner

Diesel cars are not goodproduce a lot smell and vibrations Mid Segment I Car Owner Diesel cars require good maintenanceits engine opens in 2

yearsrunning cost may be lowbut maintenance cost is high

Small Car Owner

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LPG & CNG come to the consumer mind most of the time when prompted
Consumers are aware of the existence of CNG & LPG as fuel options However, the awareness does not extend much beyond this level
Yesheard of CNGbut never used itcylinderskits are

therenot meant for private cars

Mid Segment II Owner

CNG is therefor commercial vehicles

Small Car Owner

Yestoday there are people having LPG kits fitted as well.. Mid Segment I Car Owner

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Since awareness of CNG as a fuel & its usage is low, the awareness about kits and approvals is also minimal
Almost all respondents were unaware of the brands of kits existing in the market except their Italian origin.
Italian kitslocal like HovellToyota (local) Italian? Lambda kits I think
Mid Segment I Car Owner
Small Car Owner

None were aware that approvals were required for fitting CNG kits in a car However, many were aware of the price range for both CNG & LPG kits
Cost between 32,000 to 35,000 Rs.30,000 40,000
Mid Segment II Car Owner High End Segment Car Owner

LPG is even cheaperI can get you for Rs. 1500 2000 Mid I Segment Car Owner

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Except for being environment friendly, CNG does not have a positive image among most car owners
Top of mind recall for CNG exposes an association with more negatives than positives: Long queues
Not safedo not know what will happen to your car
Meant for public transport CNG does not start in wintersin an accident the cylinder also

bursts.. CNG available in Delhi only Environment friendlythanks to Sheila Dixitbut dangerouscatches flames Eco friendlyit has reduced pollution in Delhi IGLs focus on Environment Friendliness of CNG as a key attribute in its communication has been successful so far and needs to continue!
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And where does CNG stand vis a vis other fuels?

Fuel Petrol
Availability
Easily Available

Performance
Benchmark for smooth performance

Safety
Safest fuel tried & tested

Maintenance
Regular check ups per 5000 km give car engine a long life High maintenance Car opens in l lac kilometers

Cost Economics
Most expensive fuel among options available especially high octane variants Cheaper than petrol, but maintenance cost is high Cheaper than both diesel & petrol, but poor performance & high maintenance makes it a weak replacement option Cheapest fuel But perception of unsafe fuel renders it a weak competition.

Diesel

Easily Available

Freezes in winter, causes knocking, vibrations in vehicle Freezes in winter, knocking, Smell of Gas loss in pick up, cannot take AC load

Equally safe as Petrol

LPG

Easily Available (especially Domestic Cylinder) Available only in Delhi. What about out of city travels?

Unsafe unless properly maintained

High maintenance, life of car reduced

CNG

Similar to LPG, Heating pads required in winters

Similar to LPG, but less flammable

Maintenance cost higher than petrol car.

Positive

Negative

Mid Way Can be overcome

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Safetyor the lack of it, is the primary area of concern for most car owners
Primary Areas of Concern / Disadvantages
Lack of faith in technology Fear of leakage & cylinder burst Concern about availability in Delhi No supply outside Delhi Deterioration in pick up Inability to carry load of AC Loss of Boot space Engine Life reduces
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Not safe for my familyI saw car burst If Safety it was a fool proof technologythen the car would not be bi-fuelonly There are always long queues CNG

There used to be queues, now decreased Availability Slow pick go out CNG If I have to up withof stationwhat do I doCNG Cannot work with AC is not available Cylinder takes up boot space Performance Engine opens very soon

Cost Effectiveness & Eco Friendliness are Secondary to Primary Concern Areas
All types of car owners were aware that CNG was more cost effective (running cost) However, stemming from the lack of trust on the technology itself, many felt that like diesel vehicles, maintenance & operation of a CNG vehicle would equalize the cost

Cost Effective
Cheapersaves money
Mid Segment I Car Owner

Eco Friendly
Pollution Controlbut its difficult to run
Mid Segment II Car Owner

But what about maintenanceI feel eventually it is the same

Small Car Owner

But it is only good for commercial vehicles

Small Car Owner

IGL primary action must be to dispel the current beliefs prevailing about CNG & educate the customers!

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The CNG User

Perception of a CNG User versus a Petrol User

(By Projective Technique)

CNG Car

Petrol Car

The petrol user is a more cosmopolitan person, who prefers quality to saving money
Executiveliving in metro
At good posttension free person Performance & reliability conscious Energetickeeps his car maintainedcares Bottom line: There is no substitute for petrol Petrol is THE FUEL it connotes status & reliability. Other fuels are looked down upon & only for those who cannot afford to maintain a petrol car. IGL needs to develop a similar association with CNG!
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The CNG user is the Lala type, more concerned with saving money than his vehicle
Lala typetaxi walamoney minded

Semi urbanfrom village with agricultural money

Government servantclerk with less pay.. Not having high income No concern for traveling comfort or family safety

CNG car owner will always be under tensionwhat happens if it finishes?

I would look down upon him Its ok for those traveling long distances1500km/month

Bottom line: CNG is not for mebut for some other poor guy
CNG means a headache in terms of operation & maintenance. It is considered a risky proposition. It is a viable proposition only for those clocking high kilometers and is a compulsion to save cost. IGL needs to create a space in the mind of consumers that CNG is safe and for everyone to use, not just a cost saver!
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Pre-Concept Exposure Conclusions

This Section covers:

Image & Perception of CNG User Likelihood of Shifting

Pre-Concept Exposure: Perception of CNG Based on Customer Segment

Salaried Segment
Overall: CNG is more Suited for Business Segment Petrol is a hassle free option for the basic driving needs of salaried people CNG Serves as a replacement for diesel car owners predominantly in business segment
they use it for rough use travel long distancesfor business purposessaves money

Small Car

Slightly Positive towards the concept, since running cost lower than petrol especially those traveling long distances. View Petrol as the only option for convenient driving Unlikely to shift as they can absorb petrol cost

Mid Segment I

Mid Segment II

Definitely not shift- look down upon fuel options besides petrol
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Pre-Concept Exposure: Perception of CNG Based on Customer Segment

Business Segment
Overall: Agree on cost savings if used, however primary concerns of safety & availability still need to be addressed Boot space: Another issue, as many in this segment use vehicle for loading & unloading of goods Small Car
Open to the option for business use if safety & availability fears allayed Open to the concept if safety issues addressed Boot space issue addressed as larger cars in this segment Vehicle: Lifestyle product

Mid Segment I Mid Segment II

High End

View CNG option for lower strata Only

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Likelihood of shifting: Overview (Pre-concept Exposure)

High
Basic

Attitude Towards Vehicle

Status Symbol Convenience + Pleasure

Kilometers Traveled

High End, Mid Segment II

Mid Segment I Salaried

Small Car Business

It is for lower income group Make kit for Rs. 1 lac & then we will buypenetrate in upper strata of society

Mid Segment I Business

Small Car Salaried

Low Low

Likelihood of Shifting

High

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However, most consumers willing to shift Prefer purchasing a CNG variant to getting the kit fitted
Assurance for safety and trust in the technology primarily stems from manufacturer (OEM) of vehicles Since primary concern of consumers with CNG technology is safety they are more inclined towards OEM fitted variants of current car models
Government cannot provide assurancethey are corruptwhereas a

manufacturers whole reputation is at stake when he comes out with such technology
Small car owner

OEMs will have tried & tested the technology before launching itthey

will aim to provide complete safety..servicesame features/performance as a petrol car

Mid Segment I car owner

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Post Concept Exposure Reactions & Conclusions

This Section covers: Reaction to Concept of CNG as a Fuel Option

&
Reaction to Cost Effectiveness

The Concept
IMRB exposed the following concept to the respondents for their reaction
CNG is easily available for private cars CNG is Safe to use in the vehicles There are 112 CNG filling Stations in Delhi and they shall grow to 127 by this year end. This will also allow private cars to use CNG stations at short distances within the city. CNG cylinder is made of Carbon steel that is lighter and stronger than normal LPG cylinder. CNG is lighter than air, thus it evaporates in the air in case of leakage. Transport Authorities have approved specific kits for each specific model of cars through thorough testing procedures & research organizations.

CNG is environment friendly

CNG is economical to use

The emissions of CNG vehicle have very less polluting substances. The pollution level of Delhi has gone down significantly since CNG is introduced in the commercial vehicles.
1 kg of CNG is equal to 1.4 litre of petrol. 1 Kg of CNG is available for Rs. 16.8. Thus, On every litre of petrol you use, you save Rs. 18 if the vehicle is run on CNG. 29

Concept: Cost Economics

Details on cost effectiveness of to the respondents
CNG Authorised Kit Price (Rs.) Kms run per month 250 500 750 1000 1500 2000 2500 3000 32,000 38,000 Avg. Rs. 35,000 Petrol Mileage Petrol Mileage 12 Km 10 Km / ltr / ltr 6 Years & 4 7 years & 7 months 3 years & 3 3 years & 10 months 2 2 months 2 years & 7 months 1 year & 7 2 years 1 year & 1 1 year & 4 months 10 month 1 8 months 10 months 7 months 8 months

Petrol Mileage 15 Km / ltr 9 years & 6 months 4 years & 9 months 3 years & 3 months 2 years & 5 months 1 year & 7 months 1 year & 3 months 1 10 months

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Most respondents were aware that CNG is less expensivebut were still surprised as to what extent!
Pre Concept Yes CNG is cheaper than other fuelsbut it will still
cost me 30,000 to fit the kitI will only break even in 3 years or more

Post Concept
Most respondents were slightly surprised that at the current

average of their car (12 15km/L) it would not take them more than 1.5 years! A positive attitude towards the fuel developed as soon as they were made aware of this Post concept exposure heated discussions & queries related to CNG were raised Again emphasizing need for communication & a tremendous potential of petrol users to shift if awareness is created!

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Despite reassurance & effort to allay fears related to CNG & its usagedoubts persisted
There is no doubt that CNG is cost effectivebut I would still have reservations unless I got it from an OEM
Small Car Owner

It still does not address performance issues like pick up, boot space and after sales
Mid Segment I Car Owner

It does not seem viable to get a kit fitted in my 3 year old carI would be changing it anyways by the time my cost is recovered
Mid Segment I Car Owner

I would prefer a company fitted carif I go for a new car

Small Car Owner

Depending on safety, maintenance cost, after sales service issues I might consider going for it
Mid Segment II Car Owner

Need to launch massive awareness & education campaign for CNG OEM variants have higher probability of success than getting kit fitted
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Cost Effectiveness will be the major driver for shiftingagain more inclination towards OEM variants..
Small Car & Mid Segment I respondents grew more inclined towards CNG as a fuel option post exposure of the cost economics concept Other segment respondents also of opinion that it would serve as a viable option for the lower car segments, especially business class However, again several issues were raised:
Resale value? It will go down if I get a kit fitted Mid Segment I Car Owner Insurance premium will also increase and current insurance will be

void if I get kit fitted investment

Mid Segment I Car Owner

Company fitted (OEM variant) will make more sense if Im making the
Small Car Owner

Tax exemption or price less than LPG will bring more smaller segment

users in this
Mid Segment II Car Owner
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Possibility of high demand in lower car segment largest selling car segment!!

However, reiterating again: Customer education & collaboration with OEMs will be key determinants for establishing demand

LIKELIHOOD OF SHIFTING FUEL

Likelihood of Shifting

High

1 5 77 5

3
3 6 4

Low

High
1 2 3

Moderate

Low
7

Kilometers Traveled
Small Car business Small Car Salaried Mid - I business
4 5 6

MID I Salaried MID II business MID II Salaried

High End
Post Concept Pre Concept
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Services Expected from a CNG Filling Station (Projective Technique II NLP)

This Section covers: Experience at a regular Petrol Pump Ideal Filling Station Branding/Communication at a CNG Station

Current gamut of services offered at petrol pumps has raised the level of expectations from a CNG station
Todays petrol pumps are very goodthey offer so much However, most consumers look for basic services at a pump
Most not willing to spend too much time there except for filling petrol

and getting the tyre pressure checked Other services offered like car washes, convenience stores, ATMs, workshops etc are used once in a while.
Basic
Air Check, Pollution Check, Drinking Water, Clean Toilets, Space for parking, Polite attendants, Bright ambience Workshops, Credit Card Payment Facility, quick food items, ATMs Schemes (gifts/offers), Convenience Stores

Used Sometimes

Value Adds

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Most consumers do not see the same level of services at a CNG pumpbut expect the same
Most of those pumps are emptyonly have cylinders lying aroundnot even basic facilities there.. Green and brightly litlots of spacebut they should not make the passenger get out of the car while fillingmust be because CNG is dangerous Ideal Filling Station
Must Have Space for parking, Polite attendants, Bright ambience Possible Additions
Air Check, Pollution Check, Drinking Water, Clean Toilets, Workshops, Credit Card Payment Facility, CNG Card, Basic Tuck shop (water, snacks), ATMs Full fledged Convenience Store

Not So Necessary

Concentrate in providing large spacious pumps with basic facilities with focus on branding & awareness through hoardings!
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Brandingwhat kind of communication cues are customers suggesting?

IMRB also asked the respondents of a symbol for IGL that would act as a mascot for CNG to increase recall & establish a brand identity
Smiling face Innocent child or faceholding a tree.. Open skyflying bird.. Dove above trees

Obvious point made was that the colour green should always be part of the symbol or communication strategy
Already, the top of mind recall about IGL are its green colored

banners and logo This instant recall emphasizes that to create a connection with the target audience, a strong communication strategy will go a long way to create awareness
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The other side: Supply Side View

IMRB also met major automobile manufacturers & mechanics to get their view on CNG as an option for private cars

OEMs are open to launching CNG variantsif demand is established

IMRB met Maruti Udyog Ltd, Hyundai Motors & Ford India for their views
All three were open to the concept, however were skeptical

about the demand Their foreign partners/parents had already explored alternative fuel vehicles in parent countries, therefore technology was not an option Expressed the need for collaboration with IGL to establish demand in this segment

All three agreed

CNG is safe, easily available and environment friendly

CNG run vehicles were at par with petrol vehicles on

performance & operation

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Maruti already caters to commercial (taxi) segment with its CNG variant for OMNI
Maruti produces 50 CNG Omnis every month.
Transenergy CNG kits are fitted in OMNIs CNG kits are fitted after the normal production of vehicles

main production line is not tampered with The cost difference between petrol and CNG variant is Rs. 12000 15000 more economical than fitting Rs. 30,000 kit!

Maruti has not looked into private car segment for CNG variant lack of awareness about demand Maruti plans to launch CNG variant of another existing car model but no further information was shared
Maruti, the largest automobile manufacturer, could induce tremendous demand if it sees potential Need for IGL to collaborate!
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Hyundai & Ford do not produce any CNG variant in Indiabut are open if they see potential
Hyundai views CNG as heavy vehicle fuel like Buses and LPG for lighter vehicles like cars, etc.
Hyundai produces CNG buses in Korea It produces LPG Santros (I Litre engine) in Korea

No plans are disclosed for introduction of CNG vehicle in India Ford also has technical expertise available Internationally FORD is open to hybrid cars (petrol + CNG) for India.

Again technology is not a problem for these OEMs, just collaboration and potential has to be established by IGL!
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Then what kind of support are these OEMs looking for from IGL?
OEMs require specific information related to CNG from IGL
Availability of CNG in India (present and future scenario) Details of CNG available in Delhi Technical details of kits compatible with engines (here government
agencies like RTOs, IIP, CRRI need to be involved as well)

Other information support

OEMs are not a part of kit approval procedure for a model and need IGL support for inclusion in that process OEMs are ready for kit retro fitment at authorized dealers after consultation with IGL and government authorities.
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Some important issues raised by OEMs

OEMs would prefer models that do not cannibalize with their present models.
Thus, no change in production design & process is desired Only an addition at the end of the line is possible.

Thus, IGL will have to hard sell R&D for CNG variants proposition if alteration in production process required
A/C problem and Boot space constraints can be taken care of

by a few modifications in the basic design, However, this increases the R&D and investment cost for OEMs Thus, the potential has to be large enough to justify this Otherwise retrofitting at the end of the production line has to be the option without taking away boot space constraint
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Mechanics are however not very positive about the potential of CNG vehicles
In 2000 01, a popular CNG mechanic has fitted between 2500 3000 kits a year. Now the incidence of retro fitment of CNG kit in private car is very low.
Largely commercial (non-taxi segment and government vehicles) are

the customers

According to Mechanics
The initial craze is over. The cost conscious customers still go for CNG variant but the numbers

are finger countable Usually businessmen get the retro fitment done in second hand and old cars. Government ministries use CNG in a few official cars For re-sale, approx. 90% vehicles take out the CNG kit

They need IGL support for education and awareness campaigns

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Mechanics have however failed to assess the big picture

RTO officials however gave reasons why CNG retrofittment died down after initial craze
Due to paucity in supply initially (as IGL was still establishing its

infrastructure) RTO stopped registering CNG fitted cars Initially many vehicles met with accidents as technology was nascent and technically experienced retrofitters were unavailable Over the years, only those mechanics or dealers have remained that had the capability & expertise to fit competently (Transenergy, Green Fuel Engineering etc)

Therefore, it is extremely important for IGL to collaborate with government agencies (RTOs, IIP, CRRI etc.) and kit manufacturers/dealers to induce demand & establish stringent norms for CNG vehicles
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The Road Ahead for IGL

Recap: Issues raised by target audience

Primary Concern: Need to dispel myths about CNG being unsafe Comparison with Petrol: Need to establish parity with petrol on performance & availability parameters Cost Economics: Need to create awareness on exactly how economical CNG is vis a vis other fuels OEM Variants vs. Retrofitting: Need to establish potential demand & target audience for both Services at Filling Stations: Need to provide similar services as that at petrol filling stations Branding: Need for establishing connect and space in consumer mind
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How do we address each of the mentioned issues?

Dispelling fears about safety of CNGMass Customer Education!

Customer education campaign, Marketing Blitz has to be launched in the local mass media
PR articles in newspapers Editorials, articles detailing reasons for past accidents being poor maintenance and nascent technology We have come a long way
from then

Print advertising Ads in newspaper stressing CNG is a safe

fuel

Lighter than air less flammable Testimonials from existing users

Private Car owners Commercial fleet owners Mechanics & CNG kit dealers/fitters

Road shows/Workshops in commercial & residential areas

highlighting benefits of CNG and dealing with their queries

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Comparisons with petrol & cost economics: Again mass customer education required
Print Advertising & PR has to reiterate that CNG run vehicle performs similar to a petrol run vehicle
Exact savings by using CNG have to be highlighted and will go

a long way in shifting consumer perception Maintenance costs are not increased drastically, except for air filter change AC can run effectively in a CNG run vehicle Engine life far from being reduced is increased in a CNG run vehicle Switch from CNG to petrol in a bi-fuel vehicle does not lead to excessive petrol consumption than normal

Road shows/Workshops can also serve to certify these facts and create an interactive platform with target audience
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OEM Variants vs. Retrofitting: Collaboration with Auto majors & CNG kit manufacturers
Phase II of this study shall establish the exact demand potential & target audience for IGL These findings need to be leveraged and communication with major automobile manufacturers has to be set in place to launch CNG variants Joint promotion exercise has to then be undertaken to induce demand
Joint awareness advertising & PR articles Road shows & workshops Authorised/certified fitting stations can be established

53

To provide a complete customer experience filling stations need to be state of the art
Current level of services provided at petrol stations have to be matched (Ideal service station presented earlier) To emphasize safety of CNG, the practice of making passengers disembark from the vehicle while filling has to be stopped Further promotion and visibility can be created by increasing presence on hoardings at filling stations and major roads

54

With oil majors launching massive branding drives, IGL also needs to move into similar direction
Most petrol users can instantly recall petrol brands now premium, speed 91 Octane Similarly Pure for Sure type punch lines also go a long way in creating a space in consumer mind & establishing credibility Instant recall for CNG can also be created by developing similar branding initiatives
Respondents had also presented suggestions on this during the

discussions These cues can be used for developing a logo & punch line for IGL Compressed natural greenery! Save the environment while
saving your money!
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Important Caveat: All these promotional activities need to be undertaken simultaneously for inducing demand!

Simultaneous promotional activities will create awareness rapidly & keep reiterating the benefits of CNG in the consumer mind repeatedly to be firmly embedded!

Demand Estimation Exercise: Phase II

The Quantitative Phase of the study (Demand estimation) will determine the exact target group and size of the market for these initiatives Once the target segment & market size is clear, IGL needs to launch these promotional initiatives immediately!