There are three types of necessities of every person:

  1. Daily: People have to use necessities like wheat, sugar, food grains etc.; they cannot dispense with their use, or they will use more of the article, if the supply and prices are more favorable.
  2. Conventional They have also become indispensable and a necessity on account of habit and custom. Examples such as Tea/coffee drinking, tobacco, wine etc. The demand for these items are not related to price.
  3. Luxury goods like television, fridge, dish washer etc. are sold on the basis of the price range and income level of the consumer.

LPG  is an article  of  daily  use   and is   a  necessity.   Today, domestic cooking in India is synonymous with use of LPG. Some of its key benefits include lesser time spent on cooking chores, a clean and smoke free kitchen, easy to light and extinguish. These benefits endeared the fuel usage among Indian housewives and the bulk caterers including canteens, hotels and restaurants. Now a days most of the indurstires  are also using LPG who were using furnace oil, LDO, coke, pet coke, diesel etc. for use in heating process. This created a huge demand of LPG.  Even, those presently  not  using LPG  can  be  brought into  the habit of using LPG.

LPG is a standardized product and all refineries producing LPG conform to international standards. The cylinder is also manufactured under strict ISI specifications, as per the standards prescribed under BIS guidelines. Product wise there is nothing to differentiate between the LPG, sold by any Dealer, whether government or private. It is the service, that make difference. It is through this angle that we could impress the customer. All our selling strategies are based on this criteria.

In addition to the ease and convenience of getting supplies from the dealer, customer values punctuality of delivery schedule. Delivery commitment made to the customer should be honored and there should be no delay in the supply even at odd hours.


The manufacturer is located at one end of the country, while the users are spread throughout the country. The path through which the manufacturer reaches the customers is as under:-

Appoint stockists, distributor and retail selling units for the products at every part of the country.  Consumer  products  with  Brand-names like Horlicks, Lipton tea etc. are marketed in this fashion,  the company appoints distributors for a territory or area, but they do not directly sell to the consumer. The consumer has to simply walk to the nearest retail shop and purchase with ease and convenience, without any formalities. This is in recognition of the Consumer’s needs. The Consumer must procure his article on day to day necessity from the nearest point.

This kind of facility we have provided to our consumer but our product is being sold under “Essential Commodity Act” and explosive items require certain formalities for selling etc. The marketing organization of the company is a decentralized multi-tier structure, i.e. a single tier at the Apex.

Representing the marketing division of the company, it will be run by business associates & further distributors, dealers, retailer & mini retailers.  At the apex level, the company may have customers, numbering in the millions, but at the base level, the mini retailer will have 1000 customers, retailer will have 1500 customers,  Dealers will deal with 10,000 customer, while the Distributors will look after 20,000 customers.  There will be no limit of commercial/industrial connections. The business or functional objective of our marketing structure is common at all the levels viz.

  1. Sales promotion by extending our service to newer customers every day;
  2. After sales Customer service is a key for keeping customers satisfied with our firm.
  3.  To gain popularity & goodwill for our Brand Name “PREMIER GAS” in the market.

Detail responsibilities of the associates, i.e. business associates, distributors, dealer, retailers & mini-retailers, to effect the supply upto consumer level will be as under:-

Will work as franchise to operate at zonal offices of the company.

Will conduct survey of the area and identify potential center for appointing distributors/ dealers/retailers etc & their appointment.

Will provide training to associates. Help his associates & convey them instructions issued by the company from time to time & their problem to the Company.

Collect orders from associates payment and submit to bottling plant.

Will place order at the company’s office along with D.D. or transfer of amount by RTGS in the company’s account, after deducting his margin.

Will make arrangements for delivery of cylinders to the retailers/ mini retailers & consumers at their places.

Must always hold a minimum stock of 3 days’ supply & 20 new connections subject to condition that the stock may not exceed the approved quantity of godown.

Will place order at the company’s office along with D.D. or transfer of amount by RTGS in the company’s account,after deducting his margin.

Will make arrangements for delivery of cylinders to the retailers/ mini retailers & consumers at their places.

Must always hold a minimum stock of 3 days’ supply & 10 new connections subject to condition that the stock may not exceed the approved quantity of godown.

Will place order to distributor along with D.D. or transfer of amount by RTGS in his account, after deducting his margin.

Will make arrangements for delivery of cylinders to the mini retailers / consumers at their places.

Must always hold a minimum stock of 3 days’ supply & 5 new connections subject to condition that the stock may not exceed the approved quantity of godown.

Will place 1st order for one Domestic connection (sample) + 5 mini connections to company.

He has to maintain stock for refill of mini cylinders as per requirement with minimum 5 filled 4 kg cylinders keeping in mind that he can store only 100 kg. at one place.

Book order for domestic /commercial/  industrial customers and convey to        Distributor/ Dealer/ Retailer/ company as the case may be in the evening and supply to the concerned
Customer at his convenient time on receipt of payment.

All associates must submit periodical statements/reports required by the company from time to time.

The company has also planned to appoint some representatives persons in different category mentioned below to support the associates to boost their business immediately:-

Customer Representative Business Consultant Free Lancer Surveyors Liaisoning Consultant
Become self employed with minimal investment and no infrastructure such as godown. Only need a three wheeler which an be operated from their respective residential place. To support the company/B.A in appointment of associates, completion of formalities & getting NOC etc. & thereafter develop the network of assoiates through Free lancer/surveyor/liaisoning consultant against fixed charges/ commission on assignment basis. To help the Business Consultant/B.A/ distributor/company as the case may be against the charges settled by him with them on assignment basis. Make new customers by different techniques such as door to door selling, visiting very small retail shops in the area etc. against the remuneration fixed by the company or associates. To support the business consultant/B.A/ company as the case may be required
in organizing publicity in the area & to stop illegal activities by reporting to the relevant authorities & get published such type of article in the newspaper and conduct the publicity programme/ campaign in the area of associate. Charges on assigmment basis.

The detail role of Associate has been defined in foregoing paras.

Role of the Business Associate:-

  1. Will arrange zonal level publicity and spread the message of Premier Gas in the whole state. It will plan associating the Distributors and Dealers for conducting successful field publicity, distinctively in each Distributor/Dealer, Area/ Sub- Area.
  2. Besides training to Associates & his staff for day to-day, they will also maintain a technical cadre, who will impart training to the employees of the Distributors/Dealers in the maintenance and servicing of our products and ensuring the safety of the households using our products, by circulating information widely on safety guidelines to be adopted by every individual, who may use our products.
  3. Will  also hear customer’s grievance & complaints not resolved at previous levels and attend towards their quick  redressal. The company will also receive suggestions for improvement in service to customers from distributors & dealers and study their feasibility and utility for implementation.


If   the players in the field are the dealers/retailers/mini retailers, the distributors are the umpires. The distributor is at the middle level. They are a valuable interface between the large number of retailers/mini retailers and the business associate. It  is  the function of  the distributor first  to select the dealers/retailers/mini retailers and next to make them customer oriented and operate successfully in the market. Our aim is to make the distributors responsible for the area and business development.     The duties/ functions of the distributors in this set-up are as under:-

  1. Organization & Development of retailer network.
  2. Mentoring and guiding the successful functioning of the network in their
  3. Maintaining the supply-line and feeding the retailers with timely deliveries of the products.
  4. Acting as an interface between the company and the dealers, collecting informative data business from the retailers and submitting the same to the company.
  5. Attending to field-publicity campaigns in the area to make ‘Premier’ products popular.


Dealer/Retailer/Mini Retailer is at the edge-of direct and day-to day contact with the consumer. The success of our marketing operations primarily lies with these associates. Marketing responsibilities of the Dealer/Retailer/Mini Retailer are as under:-

  1. Be watchful and always look out for new customers. Have a recurring programme to contact the customers of every category on daily basis.
  2. When the consumer comes, attend him promptly and courteously to leave a permanent positive impact on him.
  3. Attendand resolve his refill orders and technical problems promptly & quickly.
  4. Through the goodwill of existing customers, try to secure new customers with their introduction.
  5. Keep adequate stocks of all our products to meet customer needs.
  6. Understand the level of competition and analyse the strength and weakness of our competition.
  7. Feedback of the customers, i.e. level of our customer service.

Role of Customer Representative

This category of associate has been created to work in the market with minimum investment to earn handsome income & support the distributor to cover his area on franchise basis without any infrastructure i.e. office or godown etc.

Role of Business Consultant/ Free Lancer/ Surveyors/ Liaisoning Consultant

To develop the business upto the mark, we require support and spending lots of money. The company has created these four type of categories as associates to survey the market to search for fruitful customers & it will be the responsibility of the Business Consultant to convert the prospective customers as our consumers by appointing Free Lancer in each area. The Business Consultant will also search for genuine parties for working as associates &  keep the company free from completion of formalities for appointment & help them in taking step by step action as required by the company. The Business Consultant will also develop the network of the company with the help of Liaisoning Consultant by organizing publicity in an efficient manner & take proper measures to stop the illegal activities in the area i.e. use of domestic cylinder for commercial purpose & refilling of Mini Cylinders in illegal manner.