35151048 a Proect Report on Indian Oil Xtra Power Fleet Card Program

Ramendra Pratap Singh

09/MBA/28 Page 1

A PROJECT REPORT

ON

“MARKETING AND PROMOTION OF XTRA POWER

FLEET CARD LOYALTY PROGRAM”

Submitted to

INDIAN OIL CORPORATION LIMITED

DURGAPUR DIVISIONAL OFFICE

BY

RAMENDRA PRATAP SINGH

(09/MBA/28)

NATIONAL INSTITUTE OF TECHNOLOGY

DEPARTMENT OF MANAGEMENT STUDIES

DURGAPUR


09/MBA/28 Page 2

ACKNOWLEDGEMENT

It gives me immense pleasure, to express my unfeigned and sincere thanks and gratitude to Mr. SOVAN MANDAL ASSISTANT MANAGER (FLEET MARKETING) for his invaluable guidance during the course of the project. I am thankful to MR KUMARJOYTI ROY CHAUDHURI (SR. DIVISONAL RETAIL SALES MANAGER DGP DO) and MR KRISHNENDU CHAUDHURI, MANAGER (RETAIL SALES) for his inputs and constant encouragement during my internship at IOC. Finally, I thank department of management studies national institute of technology (Durgapur) for giving me this wonderful opportunity to pursue my internship at IOC. The stint at IOC was very useful in terms of gaining valuable hands on sales experience and understanding consumer behavior.


09/MBA/28 Page 3

TABLE OF CONTENT

TOPIC PAGE

NUMBER

PROJECT SYNOPSIS 4

OBJECTIVES OF THE PROJECT 5

RESEARCH METHEDOLOGY 6

IOCL-AN INTRODUCTION 7-23

SWOT ANALYSIS OF IOCL 24-25

LOYALTY PROGRAM–AN INTRODUCTION 26-28

LOYALTY PROGRAM AT INDIAN OIL 29-33

COMPARISON OF LOYALTY CARD BENEFITS

WITH OTHER OMC 34-36

LISTS OF CUSTOMERS AND THEIR FEEDBACK 37-40

QUESTIONNAIRE FOR RETAILER AND DATA

FROM RETAILERS 41-47

QUESTIONNAIRE FOR CUSTOMER AND DATA

FROM CUSTOMERS 48-54

FINDINGS OF PROJECT 55

CONCLUSION 56

RECOMANDATIONS 57


09/MBA/28 Page 4

PROJECT SYNOPSIS

Project Title: ―Marketing and Promotion of Xtra POWER FLEET CARD Loyalty Program‖.

Introduction to the project:

In the present world where there is intense competition, it becomes very necessary to retain

loyal customers. The commercial benefits of loyal customers are well known by the brand

managers. The cost of acquiring a new customer is always more than retaining an old customer.

Loyal customers are also important because they provide the consistency of volume critical for

stocking and managing just in time inventory to maintain the consistency of customer demand

during crisis which is required to run any retail business. There are also customers, which are

strong advocates of brands and are always willing to forgive an occasional lapse. All of these are

compelling reasons that retailers are on a quest for customer loyalty and are increasingly

looking at implementing loyalty programs or loyalty cards of some form.

With increasing oil prices and competition increasing at a rapid pace, many oil-marketing

companies are finding it difficult to operate profitably in India. Indian Oil Corporation Ltd, is no

exception to this reality. Thus to retain its existing customers, many new imitative have been

adopted by the organization. One such big idea is Xtra POWER Loyalty Program.

In this project, we have been assigned IOC retail outlets, which are participating in the Xtra

POWER Loyalty program. Our task is to promote and sell the Xtra POWER FLEET Loyalty card

to the customers and at the same time obtain the customers opinions and suggestions about the

loyalty program. Tapping local alliances is another aspect of this project.

At the same time, we have to check whether the retail outlets are carrying out the

implementation of the loyalty program in the right way.


09/MBA/28 Page 5

OBJECTIVES OF THE PROJECT

The major objectives of the project are:

1. To study the iocl loyalty program in Durgapur and nearby regions.

2. To study the loyalty between the local customers and the company.

3. To study the benefits provided by iocl to the local customers.

4. To study how iocl tap local alliance partners for Xtra Power Fleet Card program.

5. To obtain customer opinions and suggestions at IOC retail outlets and give

recommendations to IOC to improve the implementation of Xtra POWER loyalty

program.

6. To study the comparative analysis between the loyalty card benefits of other marketing

company.

7. To become known to real market.

8. TO gain real experience of market that how corporate persons work. How we have to

behave, how to present yourself, how to make deals with clients etc.

9. To check our theoretical knowledge with comparison to the practical market demands.

10. It gives us an opportunity to apply our thinking, idea, knowledge in real market

11. To enhance our skill and gain experience to be a true professional.

12. To check our interpersonal skills.

13. To learn necessary managerial skills and positive attitude towards your work.

14. To get a flavor of Teamwork, Organizational culture, Team dynamics, result orientation,

organizational pressure, complexities in achieving desire result.

15. To understand the day to day functioning of an department within the organization

16. And at last but not the least fir sharpen our career goals for a bright career.


09/MBA/28 Page 6

RESEARCH METHODOLOGY

DATA COLLECTION METHOD

Types of Data and Data Collection:

Data that I have received for making the project is a combination of both primary and secondary

data.

Primary Data

The data collected through questionnaire based survey from the retailers and customers of

Durgapur and nearby region. The name of the retail outlets of Indian oil from where these data

are collected are

City fuel (city center Durgapur)

Kamala service center (city center Durgapur)

Kalpana service center (Durgapur station )

Vetron outlet (Asansol)

Jublie outlet (Asansol)

Jaiswal filling center (Raniganj)

Jaiswal auto service (Raniganj)

Sanchari fuel station(burdwan)

Secondary Data

Company‘s annual reports

Company‘s journal and magazines

Company‘s website

Company‘s leaflets

Company‘s pamphlets

Products and sales report

Sampling plan

The sample size for retailer is 8 and that of customers is 200 of Durgapur and nearby region.

The respondents are chosen through cluster sampling universe elements are chosen in group

rather than individually. Whereas convenience sampling is based on opportunism.


09/MBA/28 Page 7

IOCL-AN INTRODUCTION

VISION

―A major diversified, transnational, integrated energy company, with national leadership and a

strong environment conscience, playing a national role in oil security & public distribution‖.

MISSON

To achieve international standards of excellence in all aspects of energy and diversified

business with focus on customer delight through value of products and services, and cost

reduction.

To maximize creation of wealth, value and satisfaction for the stakeholders.

To attain leadership in developing, adopting and assimilating state-of-the-art technology

for competitive advantage.

To provide technology and services through sustained Research and Continuous

Development.

To foster a culture of participation and innovation for employee growth and

contribution.

To cultivate high standards of business ethics and Total Quality Management for a

strong corporate identity and brand equity.

To help enrich the quality of life of the community and preserve ecological balance and

heritage through a strong environment conscience.


09/MBA/28 Page 8

INDIAN OIL: INDIA’S DOWNSTREAM MAJOR

Beginning in 1959 as Indian Oil Company Ltd., Indian Oil Corporation Ltd. was formed in 1964

with the merger of Indian Refineries Ltd. (established 1958).

Indian Oil Corporation Ltd. (Indian Oil) is India's largest commercial enterprise, with a sales

turnover of Rs. 58676crore and profits of Rs. 7976.48 for the year 2008-09.

Indian Oil is also the highest ranked Indian company in the prestigious Fortune 'Global 500'

listing, having moved up 11TH places to the 105TH position in 2009. It is also the 20th largest

petroleum company in the world.

The Indian Oil Group of companies owns and operates 10 of India's 19 refineries with a

combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, .i.e. 1.2 million

barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation Ltd.

(CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRP). Indian Oil and its

subsidiaries account for a 47% share in the petroleum products market, 40% share in refining

capacity and 67% downstream sector pipelines capacity in India. The Indian Oil operates the

largest and the widest network of fuel stations in the country, numbering about 17606 (15557

regular ROs & 2049 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations

(ALDS). It supplies Indane cooking gas to over 47.5 million households through a network of

4,990 Indian distributors. In addition, Indian Oil‘s Research and Development Center (R&D) at

Faridabad supports, develops and provides the necessary technology solutions to the operating

divisions of the corporation and its customers within the country and abroad. Subsequently,

Indian Oil Technologies Limited - a wholly owned subsidiary, was set up in 2003, with a vision

to market the technologies developed at Indian Oil‘s Research and Development Center. It has

been modeled on the R&D marketing arms of Royal Dutch Shell and British Petroleum.

Indian Oil is investing Rs. 43,393 crore (US $10.8 billion) during the period 2007-12 in

augmentation of refining and pipeline capacities, expansion of marketing infrastructure and

product quality upgradation as well as in integration and diversification projects Indian Oil

operates the largest and the widest network of petrol & diesel stations in the country, numbering

over 17,600. It reaches Indane cooking gas to the doorsteps of over 50 million households in

nearly 2,700 markets through a network of about 5,000 Indane distributors.

Indian Oil‘s ISO-9002 certified Aviation Service commands over 62% market share in aviation

fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines

and the Indian Defense Services. The Corporation also enjoys a dominant share of the bulk

consumer business, including that of railways, state transport undertakings, and industrial,

agricultural and marine sectors. Indian Oil has set up subsidiaries in Sri Lanka, Mauritius and

the United Arab Emirates (UAE), and is simultaneously scouting for new opportunities in the

energy markets of Asia and Africa.


09/MBA/28 Page 9

INDIAN OIL FINANCIAL PERFORMANCE: 2009-2010

Indian Oil‘s gross turnover (inclusive of excise duty) for the year 2009-10 touched Rs. 2, 71,074

corers. The Profit after Tax was Rs 10,221 crore.

For the year 2009-10, the company‘s Earnings per Share (EPS) stands at Rs 42.10 as compared

to Rs. 12.15 for 2008-09. The total net under-recovery on account of price under–realisation on

PDS Kerosene and domestic LPG in the financial year 2009-10, is Rs. 3,159 crore. This is in

comparison with a net under-realisation of Rs.Nil crore in 2008-09.

For the year 2009-10, Indian Oil has accounted for cash compensation of Rs 15,172 crore, out of

which Rs. 7,100 crore has been received during the year. In addition, the company has been

granted discount of Rs 7,548 crore received from upstream companies, as per the under

recovery sharing mechanism.

The Board of Directors has recommended a dividend of Rs 13 per share.

The Gross Refining Margin for April-March 2010 is USD 4.47 per barrel as compared to USD

3.69 per barrel during the previous year.


09/MBA/28 Page 10

INDIAN OIL - A NATIONAL BRAND

Beginning in 1959 as Indian Oil Company Ltd., Indian Oil Corporation Ltd. was formed in 1964

with the merger of Indian Refineries Ltd. (established 1958).

Indian Oil Corporation Ltd. (Indian Oil) is India's largest commercial enterprise, with a sales

turnover of Rs. 58676crore and profits of Rs. 7976.48 for the year 2008-09. Indian Oil is also

the highest ranked Indian company in the prestigious Fortune 'Global 500' listing, having

moved up 11TH places to the 105TH position in 2009. It is also the 20th largest petroleum

company in the world. The Indian Oil Group of companies owns and operates 10 of India's 19

refineries with a combined refining capacity of 60.2 million metric tonnes per annum (MMTPA,

.i.e. 1.2 million barrels per day). These include two refineries of subsidiary Chennai Petroleum

Corporation Ltd. (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRP).

Indian Oil and its subsidiaries account for a 47% share in the petroleum products market, 40%

share in refining capacity and 67% downstream sector pipelines capacity in India. The Indian

Oil operates the largest and the widest network of fuel stations in the country, numbering about

17606 (15557 regular ROs & 2049 Kissan Sewa Kendra). It has also started Auto LPG Dispensing

Stations (ALDS). It supplies Indane cooking gas to over 47.5 million households through a

network of 4,990 Indian distributors. In addition, Indian Oil‘s Research and Development

Center (R&D) at Faridabad supports, develops and provides the necessary technology solutions

to the operating divisions of the corporation and its customers within the country and abroad.

Subsequently, Indian Oil Technologies Limited - a wholly owned subsidiary, was set up in 2003,

with a vision to market the technologies developed at Indian Oil‘s Research and Development

Center. It has been modeled on the R&D marketing arms of Royal Dutch Shell and British

Petroleum. Indian Oil is investing Rs. 43,393 crore (US $10.8 billion) during the period 2007-12

in augmentation of refining and pipeline capacities, expansion of marketing infrastructure and

product quality upgradation as well as in integration and diversification project.


09/MBA/28 Page 11

OVERALL MARKET SHARE

MARKET SHARE IN PIPE LINE

Source: Indian Institute of Planning and Management.

0%

10%

20%

30%

40%

50%

IOCL HPCL BPCL Others

IOCL, 50%

HPCL, 25.50%

BPCL, 23%

Others, 1.50%

0

5

10

15

20

25

30

35

40

45

50

IOCL ONGC HPCL BPCL

IOCL, 47

ONGC, 30

HPCL, 16BPCL, 7


09/MBA/28 Page 12

CUSTOMER PREFERENCE

SCORE OF COMPANIES ON A SCALE OF 10

Source: Indian Institute of Planning and Management.

0%

20%

40%

60%

80%

100%

HPCL BPCL IOCL OTHERS

26% 38% 34% 2%

02468

1012

HPCL, 3.5 HPCL, 4 HPCL, 3.2 HPCL, 4

IOCL, 3 IOCL, 3.5 IOCL, 3.2IOCL, 3.9

BPCL, 3.5 BPCL, 3.2BPCL, 3

BPCL, 4


09/MBA/28 Page 13

IOC- Products

Indian Oil is not only the largest commercial enterprise in the country it is the flagship corporate

of the Indian Nation. Besides having a dominant market share, Indian Oil is widely recognized

as India‘s dominant energy brand and customers perceive Indian Oil as a reliable symbol for

high quality products and services. Benchmarking Quality, Quantity and Service to world-class

standards is a Philosophy that Indian Oil adheres to so as to ensure that customers get a truly

global experience in India. Our continued emphasis is on providing fuel management solutions

to customers who can then benefit from our expertise in efficient sourcing and least cost

supplies keeping in mind their usage patterns and inventory management.

The Retail Brand template of IOC consists of Xtra Care (Urban),

Swagat (Highway) and Kissan Seva Kendra‘s (Rural). These brands are widely recognized as

pioneering brands in the petroleum retail segment. Indian Oil‘s leadership extends to its energy

brands - Indane LPG, SERVO Lubricants, Auto gas LPG, Xtra Premium Branded Petrol, Xtra

Mile Branded Diesel, Xtra Power Fleet Card, Indian Oil Aviation and Xtra Rewards cash

customer loyalty program me.

1. AUTOGAS: The fuel is marketed by Indian Oil under the brand name ‗Auto Gas‘ Indian

Oil has setup 272 Auto LPG Dispensing Stations (ALDS) covering 149 cities across India.

Auto Gas impacts greenhouse emissions less than any other fossil fuel when measured

through the total fuel cycle. Conversion of petrol to Auto Gas helps substantially reduce

air pollution caused by vehicular emissions. The saving on account of conversion to Auto

Gas in comparison to petrol is about 35-40%. Low filling times and the 35-40% saving is

a reason enough for a consumer to convert his vehicle to Auto Gas.


09/MBA/28 Page 14

2. INDIAN OIL AVIATION SERVICE ATF/JET FUEL: Indian Oil Aviation Service is

a leading aviation fuel solution provider in India and the most-preferred supplier of jet

fuel to major international and domestic airlines. Between one sunrise and the next,

Indian Oil Aviation Service refuels over 1500 flights – from the bustling metros to the

remote airports linking the vast Indian landscape, from the icy heights of Leh (the

highest airport in the world at 10,682 ft) to the distant islands of Andaman & Nicobar.

3. BITUMEN: Indian Oil produces bitumen from its refineries at Panipat, Mathura,

Koyali, Haldia and Chennai and markets it in bulk as well as packed in steel drums.

Indian Oil also markets modified Bitumen CRMB and Emulsion. CRMB is produced at

Panipat, Mathura, Koyali, Haldia and CPCL refineries. Indian Oil markets Bitumen

Emulsion by the brand name Indemul and it is produced from emulsion plants located in

Haldia and Panipat refineries. CRMB and Emulsion are available both in bulk as well as

in packed drums.


09/MBA/28 Page 15

4. HIGH SPEED DIESEL: Indian Oil‘s XTRAMILE Super Diesel, the leader in the

branded diesel segment, is blended with world-class multi-functional fuel additives.

Commercial vehicle owners choose XTRAMILE because they see a clear value benefit in

terms of superior mileage, lower maintenance costs and improved engine protection. A

growing section of customers who own diesel automobiles, both in the ‗lifestyle‘ and

‗passenger‘ category, prefer XTRAMILE as a fuel for its added and enhanced

performance. XTRAMILE has brought in a huge savings in the high mileage commercial

vehicles segment. Transport fleets that operate a large number of trucks crisscrossing the

country are using XTRAMILE to benefit from higher mileage and reduced maintenance

costs.

5. BULK/INDUSTRIAL FUEL: Indian Oil‘s marketing operations network of storage,

distribution and supply hubs is backed by on-time logistics and round-the-clock after-

sales service. Many institutional customers like the railways, steel plants, thermal power

plants, textile mills, power plants, state transport undertakings, large corporate and fleet

& logistics companies tie-up for long-term contracts backed by Indian Oil‘s

comprehensive fuel & lubricants consultancy-a formidable expertise that Indian Oil has

built over nearly five decades of working with a cross-section of customers from a wide-

range of industrial sectors. Indian Oil‘s bulk liquid fuel supply covers the complete

gamut of fuels-Auto fuels, Light Diesel Oil, Low Sulphur Heavy Stock, Special Products

and much more.


09/MBA/28 Page 16

6. INDANE GAS: Indane is today one of the largest packed-LPG brands in the world and

has been conferred the coveted ‗Consumer Super brand‘ status by the Super brands

Council of India. Having launched LPG marketing in the mid-60s, Indian Oil has been

credited with bringing about a ‗kitchen revolution,‘ spreading warmth and cheer in

millions of households with the introduction of the clean and efficient cooking fuel. It

has led to a substantial improvement in the health of women, especially in rural areas by

replacing smoky and unhealthy chulha.

Indane is today an ideal fuel for modern kitchens, synonymous with safety, reliability

and convenience. With the status of an exclusive business vertical within the

Corporation, the Indane network delivers 1.2 million cylinders a day to the doorsteps of

over 53 million households, making Indian Oil the second largest marketer of LPG

globally, after SHV Gas of The Netherlands. Indane is available in compact 5 kg cylinders

for rural, hilly and inaccessible areas, 14.2 kg cylinders for domestic use, and 19 kg and

47.5 kg for commercial and industrial use.


09/MBA/28 Page 17

7. SERVO LUBRICANTS AND GREASES: Indian Oil‘s SERVO is the brand leader

among lubricants and greases in India and has been conferred the ―Consumer Super

brand‖ status by the Super brands Council of India.

With over 500 commercial grades and 1,500 formulations encompassing literally every

conceivable application, SERVO serves as a one-stop shop for complete lubrication

solutions in the automotive, industrial and marine segments. Recognized for cutting-

edge technology and high-quality products, SERVO is backed by Indian Oil‘s world-class

R&D and an extensive blending and distribution network. In the retailing segment,

besides Indian Oil petrol stations, SERVO range of lubricants is available through a

network of SERVOXPRESS stations, bazaar outlets and thousands of auto spare parts

shops across the country.

8. MARINE FUELS AND LUBRICANTS: Indian Oil caters to all types of bunker fuels

and lubricants required by various types of vessels operating throughout the world in the

shipping industry. Bunker supplies are made at all major ports of India; Mumbai,

Kandla, Vasco, Chennai, Tuticorin, Vizag, Cochin, New Mangalore, Kolkata, Paradeep,

JNPT, Port Blair and Haldia. Apart from Indian Navy, whose 100% bunker requirement

is met by Indian Oil, it also supplies bunker fuels to all major shipping and dredging

companies of India. Spot requirement of different vessels calling at Indian ports are met

through nominations received from local shipping agents and international bunker

traders/brokers.


09/MBA/28 Page 18

9. PETRO/GASOLINE: In view of the auto fuel policy issued by Govt of India, more &

more stringent specifications (equivalent to Euro II, Euro III, and Euro IV) are being

made applicable for the gasoline being marketed in India. This has led to reduction of

environmentally polluting factors in gasoline, Petro gasoline.

XTRA PREMIUM BRANDED PETROL

Indian Oil‘s XTRAPREMIUM is India‘s leading branded petrol boosted with new-generation

multifunctional additives known as friction busters that prevent deposition in the combustion

chamber. XTRAPREMIUM is custom-designed to deliver higher mileage, more power, better

pick-up, faster acceleration, enhanced engine cleanliness and lower emission.

XTRAPREMIUM is a sought-after fuel among discerning motorists, and owners of new-

generation, high-performance cars have endorsed its unmatched-performance.

In terms of fuel system cleanliness XTRAPREMIUM is hugely superior to any other alternative

fuel in this segment, with the additional benefit of fuel efficiency through the friction modifier.

The additive package contains proprietary components, including a detergent dispersant, a

friction modifier and a corrosion inhibitor, as a perfectly optimized formulation in synthetic

carrier oil. The detergent dispersant cleans the fuel system and the friction modifier drastically

reduces friction in the non-lubricated engine area, thereby contributing to fuel economy.


09/MBA/28 Page 19

10. PETRO CHEMICALS: India is amongst the fastest growing petrochemicals markets in

the world. Taking this into consideration and to enhance its downstream integration,

Indian Oil is focusing on increasing its presence in the domestic petrochemicals sector

besides the overseas markets through systematic expansion of customer base and

innovative supply logistics. Petrochemicals have been identified as a prime driver of

future growth by Indian Oil. The Corporation is envisaging an investment of Rs 30,000

crore in the petrochemicals business in the next few years. These projects will utilize

product streams from the existing refineries of Indian Oil, thereby achieving better

exploitation of the hydrocarbon value chain.

11. SPECIAL PRODUCTS: Other than the regular petroleum products like light

distillates, middle distillates, heavier products like Furnace Oil, Bitumen, etc., Indian Oil

refineries also manufacture petroleum products for specific applications. These specific

applications could be feed stock for chemical industry, raw material for specific

industries and solid fuels. The petroleum products, produced for specific applications are

called, 'Petrochemicals and Specialties (P&S) Products'.

Basic end uses:

Benzene: Chemical industry

Pet coke: Cement industry

CBFS: Carbon black manufacturers

Propylene: Chemical industry

JBO: Jute industry

RPC: CPC manufacturers

LABFS: LAB manufacturers

Micro Crystalline Wax (MCW): Pharmaceutical industry

MTO: Paint industry

Paraffin wax: Candle manufacturers

Toluene: Explosives manufacturers.

Sulphur: Sulphuric Acid manufacturers and sugar industry.


09/MBA/28 Page 20

12. SUPERIOR KEROSINE OIL: Kerosene‘s are distillate fractions of crude oil in the

boiling range of 150-250°C. They are treated mainly for reducing aromatic content to

increase their smoke point (height of a smokeless flame) and hydro fining to reduce

sulphur content and to improve odour, colour & burning qualities (char value. Kerosene

is used as a domestic fuel for heating / lighting and also for manufacture of

insecticides/herbicides/fungicides to control pest, weeds and fungi. Since kerosene is

less volatile than gasoline, increase in its evaporation rate in domestic burners is

achieved by increasing surface area of the oil to be burned and by increasing its

temperature. The two types of burners which achieve this fall into two categories namely

vaporisers & atomisers. The Indian Standard governing the properties of kerosene are IS

1459:1974 (2nd Rev).

13. CRUDE OIL: Crude oil - as petroleum directly out of the ground is called - is a

remarkably varied substance, both in its use and composition. Crude oil is formed from

the preserved remains of prehistoric zooplankton and algae, which have been settled to

the sea (or lake) bottom in large quantities under anoxic conditions. It was formed over

millions of years from the remains of tiny aquatic plants and animals that lived in

ancient seas due to compression and heating of ancient organic materials over geological

time. The oldest oil-bearing rocks date back to more than 600 million years, the

youngest being as old as about 1 million years. Crude oil

from an area in which the crude oil's molecular characteristics have been determined

and the oil has been classified are used as pricing references throughout the world. These

references are known as Crude oil benchmarks .After considering availability of

indigenous crude oil, balance crude oil is required to be imported. Indian Oil sources its

crude oil requirement from Far East, Gulf region, Mediterranean, West Africa and Latin

American sources.


09/MBA/28 Page 21

IOCL SERVICES

Indian Oil provides a wide range of marketing services and consultancy in fuel handling,

distribution, storage and fuel/lube technical services. With a formidable bank of technical and

engineering talent, Indian Oil is fully equipped to handle small to large-scale infrastructural

projects in the petroleum downstream sector anywhere in the country. Our project teams have

independently or jointly as a consortium, have set up depots, terminals, pipelines, aviation fuel

stations, filling plants, LPG bottling plants, amongst others. Indian Oil‘s fuel management

system to bulk customers offer customized solutions that deliver least cost supplies keeping in

mind usage patterns and inventory levels. A wide network of lubricant and fuel testing

laboratories are available at major installations which is further backed by sector-wise expertise

in the core sectors of power, steel, fertilizer, gas plants, textile mills, etc. Cutting edge systems

and processes are designed around one simple belief-to provide valuable customers with an

unbeatable edge in their business. Indian Oil‘s supply and distribution network is strategically

located across the country linked through a customized supply chain system backed by front

offices located in conceivably every single town of consequence.

The wide network of services offered by Indian Oil, Marketing Division is illustrated in this

section, which includes; commercial/reticulated LPG; total fuel management/ consumer pumps;

Indian Oil Aviation Service; LPG Business (non-fuel alliances); loyalty programs; retail business

(non-fuel alliances) and SERVO technical services.


09/MBA/28 Page 22

1. REFINING 2.PIPELINES

3 .MARKETING 4.TRAINING

5. RESERCH AND DEVELOPMENT


09/MBA/28 Page 23

IOCL Brands


09/MBA/28 Page 24

SWOT ANALYSIS FOR IOCL

External Environment

Opportunity:

The IOCL has much opportunity in the present market conditions. This is because the petroleum

products have become a need for everyone and still Contains a lot of scope for customization.

The various opportunities are listed below.

Since the company has the maximum number of outlets and also the maximum number

of refineries in India, it can very easily go for extension at any point of time, and can

introduce any new products, which will get support from its huge market network.

The company can make the buying process easier for the customers, by implying many

more schemes in the range of XTRAPOWER Fleet Card.

The company can think over the issue to build its own pipelines, so that it will be an

independent player and it will also support its aviation fuel supply.

Company has a great scope in E&P. It is already involved in E&P but only in a very

limited scale.

Threats:

Since the company is the market leader in the field, so have maximum threats from the other

players and many other issues. The lists of threats are given below.

The foreign players with more advanced technology are the biggest threat for the

company.

The crude oil supply is also a big issue in front of the company, because the company

cannot fix its price and so, some time had operated in loss also It is the biggest problem

because the maximum part of their crude is been imported.

In future the market will welcome more private players, which will eat up its market

share.

If the Govt. Policies allow the private players to set their own price, the private player can

seriously harm the market share of IOC


09/MBA/28 Page 25

Internal Environment:

Strengths:

IOC controls 10 refineries, by virtue of which it has a total share of around40% of India‘s

overall refining capacity. IOC has also acquired equity stakes in CPCL and BRPL, and in

2001, these refineries became subsidiaries of IOC.

58% of IOC‘s refining capacity is located in the Northern and Western regions, which are

high demand and high growth area.

Although its refineries are located the interior of the country and not near the major

ports IOC has a very strong distribution network by virtue of having a share of 48% in

the country‘s product pipelines. The total capacity of these product pipelines is 49.79

MMT.

IOC also acquired management control of the marketing company IBP, thereby

strengthening its position in these activities. It also has a dominant share in all segments

in terms marketing infrastructure. Its network includes 19830 retail outlets, 8000 LPG

distributors, and 6492 kerosene/LDO dealers.

By virtue of entering into extensive joint venture agreements, and of its own initiative as

well, the company has a presence in various other related activities such as petroleum

storage, pipelines, lube additives, exploration, Petrocmicalhes, gas, training and

consultancy, etc.

The company has already entered overseas markets such as Sri Lanka, Maldives, and

Oman and is presently considering entering Turkey through a JV. The company is in

talks with Caliak of Turkey to set up a 10 million TPA grass root refinery with an

investment of $2 billion and establish retail business. IOC is also weighing the possibility

of entering Indonesia.IOC has also started exploring the overseas markets for increasing

its scope of operations. Its interests include downstream activities in Sri Lanka,

Maldives, Oman, and Nepal; interest in the lubes business in Maldives, Dubai,

Bangladesh, Sri Lanka, etc; among others

Weakness:

The company is the market leader in the industry, but still it had many Weaknesses.

The list is given below.

The major weakness for the company is the R&D. The company starts working on it.

The petrochemical product development technology is another weakness for the

company.

The technological drawback, as compared to some major foreign player is another

weakness for the company


09/MBA/28 Page 26

LOYALTY PROGRAMS- AN INTRODUCTION

Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal

buying behavior — behavior which is potentially of benefit to the firm.

Earning customer loyalty goes beyond gaining customer satisfaction. Loyal Customers

evangelize the brand by sharing their satisfactory experience with their friends and colleagues. A

great product or service is the starting point for customer loyalty. Great marketers architect

loyalty programs from day one.

Loyalty programs are initiated by businesses with two main goals. The primary goal for most

loyalty programs is the acquisition of information relating to their customers' spending habits,

while the secondary goal is to actively cultivate loyalty amongst customers to ensure they

continue patronizing the business. While some companies do reverse these priorities, the above

hierarchy holds true for most.

Loyalty programs may offer benefits in a number of different ways. Many loyalty programs offer

a sustained discount (such as 10%) for a period of time - perhaps a year, perhaps for the life of

the business. Others offer a discount once certain criteria have been met — for example, a 20%

discount on a single purchase once a customer has spent Rs 2000 at the business. Still others

offer points which may then be redeemed for products which may or may not be directly related

to the business.

Loyalty cards are the most common form of loyalty programs found throughout the world today.

Some of the first loyalty programs were instituted by airlines in the 1970s in the form of frequent

flyer miles. In these loyalty programs, one accrues points by flying on the airline and then

'cashes in' the points in exchange for tickets, upgrades, or even third-party benefits. In the past

decade, many nonairline businesses have combined their own loyalty programs with those of the

airlines, offering frequent flyer miles in exchange for everything from telephone usage to

purchasing gasoline.

Loyalty programs have gained in popularity immensely in the past fifteen years, in no small part

due to the development of a culture of entitlement, in which consumers feel that they deserve

special treatment. Businesses have capitalized on this when designing their loyalty programs,

often offering benefits that cost little, but carry with them an assumed prestige, such as access to

faster-moving lines or special parking spaces.

Ultimately, the success of loyalty programs depends on how well the business uses the data it

gathers to further refine its policies and loyalty programs. Many businesses find little profit in

the use of loyalty programs, while others, such as eBay, attribute much of their financial success

to a well-executed use of such programs.


09/MBA/28 Page 27

Loyalty Programs an Integral Part

The immense competition will make loyalty programs an integral program of the day-to-day

functioning of petro-retailing. Of course, right now many such loyalty programs are being run by

the petro-retailers like Smart Fleet (BPCL), Xtra Power (IOCL), Drive track (HPCL), and Petro

card (BPCL). However, these programs are mainly focused at the bulk consumers and the small

consumers are left unnoticed more or less. But in future, there won‘t be such differentiation and

loyalty programs will be there for every segment of consumers.

Customer Relationship Management and Loyalty program

Customer Relationship Management (CRM) can be widely defined as:

Company activities related to developing and retaining customers. It is a blend of internal

business processes: sales, marketing and customer support with technology and data capturing

techniques. Customer Relationship Management is all about building long-term business

relationships with customers.

Most CRM initiatives begin with a strategic need to manage the process of handling customer

related information more effectively. For beginners it could simply mean better lead

management capabilities or sales pipeline visibility. However, as organizations mature in their

CRM initiatives, they begin to look at CRM as tool to acquire strategic differentiators. Despite

the immense benefits that the CRM solutions can deliver, they are not entirely without their

share of problems.

Loyal customers are more profitable. Any company will like its mindshare status to improve

from being a suspect to being an advocate. Company has to invest in terms of its product and

service offerings to its customers. It has to innovate and meet the very needs of its clients/

customers so that they remain as advocates on the loyalty curve.

An important facet of CRM is ―customer selectivity‖. As several research studies have shown not

all customers are equally profitable (In fact in some cases 80% of the sales come through 20% of

the customers). The company must therefore be selective and tailor its program and marketing

efforts by segmenting and selecting appropriate customers for individual marketing programs.

In some cases, it could even lead to ―outsourcing of some customers‖ so that a company better

utilize its resources on those customers it can serve better and create mutual value.


09/MBA/28 Page 28

With growing competition in the petro-retailing sector, today‘s consumer is becoming more and

more demanding. The emergence of new psychographic segments in petro retail market bears

the testimony to this fact. A closer look at these segments tells us what exactly a consumer is

looking for whenever he goes to a fuel station to purchase fuel. He looks for-

Quality & Quantity assurance

Quick filling and efficient forecourt service

Rewarding loyalty

Premium fuels

Cashless transactions

Non - fuel services.

The immense competition will make loyalty programs an integral program of the day-to-day

functioning of petro-retailing. Of course, right now many such loyalty programs are being run by

the petro-retailers like:

Smart Fleet (BPCL) Petro card (BPCL)

Xtra reward (IOCL) Xtra Power (IOCL)

Drive track (HPCL)

However, these programs are mainly focused at the bulk consumers and the small consumers

are left unnoticed more or less. But in future, there won‘t be such differentiation and loyalty

programs will be there for every segment of consumers.


09/MBA/28 Page 29

LOYALTY PROGRAM AT INDIAN OIL

Indian Oil‘s loyalty programs are designed exclusively to benefit customers who have been

patronizing the brand for over four decades.

XTRAREWARDS Loyalty Program: Indian Oil XTRAREWARDS is India's first on-line

rewards program that seeks to inculcate the habit of redeeming points. The loyalty program

rewards customers paying by cash, credit and debit cards.

Each transaction is confirmed on-line through a charge slip and customers can earn points on

fuel/lube purchases at participating Indian Oil Retail Outlets. Additional points can also be

earned outside the Indian Oil network, covering prominent FMCG, Food, Automobile, Travel,

Entertainment, Apparel and Hospitality sectors.

XTRAREWARDS is currently active in Mumbai, Ahmadabad, Bangalore, Mysore, Coimbatore

and Chennai. It will be shortly available in other markets like Delhi. Apart from redeeming the

accumulated points instantly on fuel / SERVO Lubes at participating Retail Outlets, the card

holder can also redeem the points to get some exciting gift items from a catalogue.

The redemption on gifts can be registered either from the participating Retail Outlets or from

the comfortable confines of one's home through the 24x7 IVRS Help Line (022-2880 9030).


09/MBA/28 Page 30

XTRAPOWER Fleet Card program

The XTRAPOWER Fleet Card program is a complete smart card-based fleet management

solution for fleet operators and Corporate for cashless purchase of fuel & lubes from designated

retail outlets of Indian Oil through flexible pre-paid and credit facilities.

The fleet card program also offers an exciting rewards program and unique benefits like

personal accident insurance cover and vehicle tracking facilities. In just under two years of its

launch, Indian Oil‘s XTRAPOWER Fleet Card has emerged as the largest fleet card in the

country with the widest retail outlet coverage.

Any business entity owning or operating a vehicle fleet can become a member of the

XTRAPOWER fleet card program at a nominal annual charge. Each fleet owner is issued a Fleet

Control Card and vehicle-specific Fleet Cards for every vehicle enrolled under the program.

For enhanced security, the fleet card transactions are authorized through unique Personal

Identification Number (PIN). Moreover, the card can help track each vehicle's movement across

remote corners of the country leading to an improvement in vehicle utilization and route

compliance. XTRAPOWER is also backed by Indian Oil‘s vast infrastructure network and web-

based support services.

XTRAPOWER is one-of-a-kind fleet card program of Indian Oil, which gives you XTRA

convenience, XTRA security and XTRA opportunity to earn Truckload of rewards. It is a tailor-

made program for Fleet Owners, Operators & Corporate as well. Xtra Power Fleet Card program

is a step of IOC towards building loyalty among the existing customers. Loyalty program works

only when the customer is emotionally attached to the brand.

Positioning of the loyalty program is very critical so that these benefits do not appear to be a just

discount under the garb of loyalty this greatly affects the customer retailer relationship and

greatly reducing the program to a pure commercial transaction where the customer constantly

looks for deals.

We need to enroll the right customers. We can recognize the highest value Customers to

recognize and reward their value to our organization, we can Cultivate high potential customers

who currently split their purchases between us and our competitors or reach out to those most

at risk of churning. Knowing which customer groups are most important to us allows crafting

recognition and rewarding strategy that piques their interest.

Customers should be involved in the program by constant communication to make them

understand what is in for them. Comprehensive surveys should be conducted to find out what

should be the ideal way to reward the loyal customers and retain them for the life time. Activities

like checking point balances online, responding to targeted offers, using kiosks, bidding on

auction items, entering sweepstakes and so on. Such participation is a sure sign of increasing

value to the customers.


09/MBA/28 Page 31

BENEFITS

Better credit proposition.

Higher value of reward points.

Attractive rewards program.

Personal accident insurance and medi-claim cover for the card member, drivers, co-

drivers & helpers.

Lost card liability cover.

Online PIN unblocking.

Flexible cash loading options - Manual Reload & CCMS Reload (Remote loading of cards

by depositing lump sum cash at one place) or CCMS reload thru' cheque payment at

select HDFC branch.

Card-insert based vehicle-tracking facility thru' website (Offline tracking free, Online

tracking at a nominal charge of Rs.2/-).The online tracking details are immediately made

available to the card members on XTRAPOWER website.

Special discounts from our alliance partners (currently available on JK Tyres only)

Round the clock Customer Helpline Number 1800 425 55 99 (Toll Free) or STD no. 044-

6551498.

XTRA Features:

INSURANCE SCHEME - XTRAPOWER FLEET CARD PROGRAM

BACKGROUND

Insurance scheme for XTRAPOWER FLEET CARD PROGRAM has been modified which will

remain effective till 5th Apr '10 (23:59Hrs).

Insurance Service Provider : The Oriental Insurance Co.Ltd. as an added feature you can avail

MEDICAL INSURANCE under our fleet card program.

INSURANCE SCHEME

Insurance features of XTRAPOWER FLEET CARD include following : (Sum insured for Fleet

Owner, Driver, Co-Driver and Helper-cum-cleaner)

Personal Accident Insurance Death (100% sum insured for all - (a) Owner :

Rs.1,00,000/- per card, max upto Rs.20,00,000/-, (b) Driver : 50,000/-, (c) Co-Driver :

25,000/-, (d) Helper-cum-cleaner : Rs.25,000/-)

Total Permanent Disability(TPD) (100% sum insured) (TPD is defined as per IRDA

guideline) - (a) Owner : Rs.1,00,000/- per card, max upto Rs.20,00,000/-, (b) Driver :

50,000/-, (c) Co-Driver : 25,000/-, (d) Helper-cum-cleaner : Rs.25,000/-)


09/MBA/28 Page 32

Partial Permanent Disability(PPD) (PPD is defined as per IRDA guideline) - (a) Owner :

Sum insured multiplied by the percentage of PPD as certified by the Doctor (e.g.

Rs.1,00,000/- per card upto max 20 cards (e.g.Rs.20,00,000/-) x % of PPD), (b) Driver :


Rs.50,000/- x % of PPD), (c) Co-Driver : Sum insured multiplied by the percentage of

PPD as certified by the Doctor (e.g. Rs.25,000/- x % of PPD), (d) Helper-cum-cleaner :


Rs.25,000/- x % of PPD).

Lost Card Liability Insurance (Maximum upto Rs.16,000/- per card subjected to misuse

of the card within 24 hours from lodging the loss complain with XTRAPOWER 24 HOUR

CUSTOMER HELPLINE)

Medical Insurance* (Rs.10, 000/- per card) : (a) Owner : Rs.2500/- per card subjected to

maximum of Rs.50,000/-, (b) Driver : Rs.2500/-, (c) Co-Driver : Rs.2500/- and (d)

Helper-cum-cleaner : Rs.2500/-. *(Minimum claim under medical insurance MUST be

over Rs.500/-)

CLAIM ENTITLEMENT

Only ACTIVE CARDS as on date of accident would be entitled for availing insurance benefits.

Cards with sales transaction of Rs.10000/-in last 365 days would be treated as Active Card.

Prevailing IRDA guidelines would be applicable for all insurance claims.

Insurance claims under XTRAPOWER FLEET CARD PROGRAM are admissible for vehicular

road accident only.

While claims are admissible for Driver, Co-driver and Helper-cum-cleaner towards card

enrolled against respective vehicle involved in the accident, the same for Owner would be

admissible for other accidents as well.

Claimant must send the claim to M/s. Oriental Insurance for claim settlement.

Above Insurance benefits are offered to the members of XTRAPOWER FLEET CARD

PROGRAM at FREE of cost.


09/MBA/28 Page 33

Easy Fuel gift card

The XTRAPOWER Easy Fuel gift card facilitates corporate in paperless gifting of fuels and

lubricants to their employees, customers and other stakeholders, that too from select Indian Oil

retail outlets numbering over 6,000. As India's first smart card-based fuel voucher, it offers

amazing convenience and security among the gifting options available today, and comes with

the option of multiple recharging, or topping-up, and hence ideally suited for reimbursement,

repeat incentivisation, etc. Corporate members can log into the dedicate website for allocating

requisite funds and for topping up. All transaction details can be viewed on the website, thereby

eliminating the need for maintaining separate MIS for reimbursements. A 24x7 dedicated toll-

free helpline (1800 4255599) caters to customer queries.


09/MBA/28 Page 34

COMPARISON BETWEEN LOYALTY CARD BENEFITS WITH OTHER OMC

To complete this comparison I have visited the retail outlet of bpcl and hp and talk with their

customers as all benefits are not disclose in company‘s official website . These informations are

required to get a competitive edge over competitors.

NAME OF THE COMPANIES BENEFITS

IOCL

BPCL

HP

HIGHEST VALUE REWARD POINT ON DISEL AND PETROL

.4% .3% .3%

CASH LOADING MANUAL AND BY CENTAL CASH MANAGEMENT(FREE)

MANUAL AND BY CENTAL CASH MANAGEMENT(FREE)

MANUAL AND BY CENTAL CASH MANAGEMENT(FREE)

ONLINE PIN UNLOCKING

YES(FREE OF COST) YES(FREE OF COST) YES(FREE OF COST)

INSTANT FUEL REDEMPTION

YES YES YES

INSURANCE FOR OWNER

Rs.1,00,000/- per card, max up to Rs.20,00,000/-

NO ANY INSURANCE FOR OWNER

NO ANY INSURANCE FOR OWNER

INSURANCE FOR DRIVER AND CLEANER

Driver : 50,000/- Co-Driver : 25,000/-,Helper-cum-cleaner : Rs.25,000/-

NO ANY INSURANCE BENEFITS

Free accidental death Insurance cover of Rs. 1 Lakh for drivers and 1 Lakh for cleaners.

MEDICAL INSURANCE

(Rs.10, 000/- per card): Owner: Rs.2500/- per card subjected to maximum of Rs.50, 000/-, Driver: Rs.2500/-, Co-Driver: Rs.2500/- and Helper-cum-cleaner: Rs.2500/-. *(Minimum claim under medical insurance MUST be over Rs.500/-

NO ANY MEDICAL INSURANCE

NO ANY MEDICAL INSURANCE

LOST CARD LIABILITY INSURANCE

Up to Rs 16000/per car subjected to misuse 24 hrs after lodging loss complain to Xtra power 24hrs help line.

NO SUCH BENEFIT NO SUCH BENEFIT


09/MBA/28 Page 35


IOCL

BPCL

HP

LOST CARD LIABILITY

A replacement card is issue to the card holder after due verification the pre paid amount balance of the lost card is transferred with a fee of Rs 100 per card.

A replacement card is issue to the card holder after due verification the pre paid amount balance of the lost card is transferred after verification.

A replacement card is issue to the card holder after due verification the pre paid amount balance of the lost card is transferred after verification.

VEHICLE TRACKING Card-insert based offline tracking at no extra cost. Card insert based online tracking at a nominal cost of Rs.2/-

Card-insert based offline tracking at no extra cost. Card insert based online tracking at a nominal cost. Vehicle tracking through sms (fee only for blue card holder).

Card-insert based offline tracking at no extra cost. At any HP Fleet card outlet, the driver has to place the card on the reader and enter his PIN Number. This is regardless of whether or not your Driver fuels the vehicle at the outlet. Card insert based online tracking at a nominal cost.

SMART CARD PREPAID CREDIT

YES YES YES

MULTIPLE CREDIT PARTNER

(Currently, Sundaram Finance Ltd.)

SundaramFinanceLtd

Citicorp Finance

IndusInd Bank

ICICI BANK

RELOADING FACILITY

YES YES YES

ENORLMENT FEE AND RENWAL FEE

YES , RS 100 PRE CARD

YES ,RS 250 PER CARD

NA

LOYALTY POINT VALUE PER POINT 1

PAISA

NA NA


09/MBA/28 Page 36


IOCL

BPCL

HP

REWARD FUEL AND LUBE

YES YES YES

MINIMUM POINT REQUIRED FOR REDEMPTION

80,000-1 year from the date of transaction.

9, 00, 000 - once in year (for blue and silver) quarterly for gold and on demand for platinum card holder.

25,000-at any point of time valid up to 3 years.

REDEMPTION OPTION THROUGH CRT MACHINE

YES YES YES

24 HRS HEELPLINE YES YES YES

TYRE AND BATTERY BENEFIT

On JK tyre per tyre Rs 100 less and 5 % off on Exide battery

NO SUCH BENEFIT NO SUCH BENEFIT

SMS BENIFIT

NO SUCH BENIFIT

Free sms alerts for all balance check and vehicle tracking (fee only for blue card holder).

NO SUCH BENEFIT

From this comparison it is clear that benefits provided by iocl is better than its competitor

inspite of this to get more customer the company can consider for benefits such as,

Free sms alert as provided by bpcl for balance check and vehicle tracking

Extra benefit scheme for customer with more transaction.

Multiple credit partner for customers

Redemption at any point of time with increased point validity from 1 year.

Fleet card vehicle for smaller vehicle.


09/MBA/28 Page 37

LIST OF SOME CUSTOMERS AND THEIR FEEDBACK

NAME OF CUSTOMERS/ TRANSPORTING AGENCY

LOCATIN OF BUSINESS AND MOBILE NO

TOTAL NO OF VEHICLES /NUMBER OF CARDS

BUSINESS TYPE AND BUSINESS ROUTE

FEEDBACK

SHYAM TRANSPORT(SHY

AM ISHRA)

DURGAPUR 9434062255

89/73 TRANSPORT/ SOUTH BENGAL

POSITIVE

MAA USHA TRAVLES(GAUTAM

DHAR)

MURSHIDABAD 9475679543

8/4 TRANSPORT/ BHERUMPUR, ASANSOL,RAJBANDH

POSITIVE

ASHUTOSH GOURAI

RAJBANDH O343-2520389

36/34 TRANSPORT/ JHARKHAND WEST BENGAL

POSITIVE

SUSHANT PODDAR(PODDAR

TRAVELES)

DURGAPUR 9434754952


POSITIVE

UNITED TRANSPORT

DURGAPUR 0343-2544855

40/10 (CORPORATE CARD)

EARTH WORK POSITIVE

MALDA TRUCK S AND TANKERS OWNER(SOUMITRO

KUNDU)

MALDA O3512-266187

650/290 TRANSPORT/ ALL OVER WEST BENGAL

POSITIVE

GAGAN MONDAL

DURGAPUR 9434009331

3/3 TRANSPORT/ NORTH BENGAL

POSITIVE

VIVEK KUMAR SHUKLA

DURGAPUR 9332132763

7/7 TRANSPORT/ JHARKAHAND,ALL OVER WEST BENGAL

NEGATIVE (BETTER TO GIVE CASH THAN USING CARD)

CARGO MOVERS(AMAL

DEY)

DURGAPUR 9433640385

40/12 TRANSPORT/ ALL OVER BENGAL

POSITIVE

MD ZAKHULA HOWRAH 9434106365


NEGATIVE

(NO CLEAR IDEA ABOUT THE BENEFITS AND NOT INTERESTD)

BALWANT SINGH GREWAL

KOLKATA 9433174935

60/10 TRANSPORT/ ALL OVER BENGAL ,PUNJAB,UP etc

POSITIVE

(DON’T KNOW HOW TO USE WANT HELP AND VERY MUCH INTERSTED)


09/MBA/28 Page 38


LOCATIN OF BUSINESS AND MOBILE NO

TOTAL NO OF VEHICLES /NUMBER OF CARDS

BUSINESS TYPE AND BUSINESS ROUTE

FEEDBACK

BIRENDER ROY DURGAPUR 9748679867

4/4 TARNSPORT/ SOUTH BENGAL

POSITIVE (DON’T KNOW HOW TO OPERATE AND WANT DEMONSTRATION)

MEENA TRADING COMPANY(PANKA

J SINGH)

KOLATA 9339872010


NEGATIVE (VEHICLE OPERATES IN LOCAL AREAS AND LESS NUMBER OF OUTLET)

EMARS ENTERPRISES (SUBRATO DASGUPTA)

DURGAPUR 9830073640

8/8 FRESH FRUIT SUPPLIER/KASHMIR, HIMACHAL PRADESH

POSITIVE

TAPAN KUMAR NANDAN

DURGAPUR 9434663019

5/3 TRANSPORT/MALDA, SILIGURI.

POSITIVE

SUKHENDU DAWN

DURGAPUR 943436359

4/4 TRASPORT/ BANKURA, MALDA.

POSITIVE

BADAL SAHANI BANKURA/ 9434360359

3/3 TRANSPORT/ PURULIA, BURDWAN.

POSITIVE

UNIT TRANSPORT (PARGAT SINGH)

KOLKATA 9830345678

80/(NOT

SPECIFIED)

TRANSPORT/ ALL OVER WEST BENGAL,NORTH INDIA.

POSITIVE (DON’T KNOW HOW TO USE)

BINOY TRADING AND TRANSPOR (BINOY KUMAR AGRWAL)

KOLKATA 9337919319

15/0

TRANSPORT/ ORRISA, CHATTISGARH.

POSITIVE (INTERSTED AND WANT TO USE CARD AND ALSO WANT TO KNOW ITS OPERATION)

SGM TRANSWAYS (ASHOK AGRWAL)

DURGAPUR 9434006156

15/15 TRANSPORT/ ORRISA, CHATTISGARH

POSITIVE

KRISHNA SAHA ASANSOL 9434035999


POSITIVE

DEBABRATA BHAGAT


22/6 TRANSPORT/ ASANSOL, SILIGURI, KOLAKATA.

POSITIVE


09/MBA/28 Page 39


LOCATIN OF BUSINESS AND MOBILE NO MURSHIDABAD 9732978565

TOTAL NO OF VEHICLES /NUMBER OF CARDS 2/1

BUSINESS TYPE AND BUSINESS ROUTE WODDWN WORKS/ GUWAHATI.

FEEDBACK POSITIVE

JAFAR ALI

ABDUL BARI MURSHIDABAD 9732954469

17/10 TRANSPORT/ BENGAL,BIHAR,UP, HARYANA.

POSITIVE

ALOKENDU ADHIKARI


30/30 TRANSPORT/ ALL OVER BENGAL

POSITIVE

SUBRATO BHOWMIK

ASANSOL 9332212987

3/3 MINI BUS OWNER/ASANSOL-HARIPUR-JAMURIA

POSITIVE

HAIDER ALI MURSHIDABAD973262725

4/4 TRANSPORT/ ASANSOL, GUWAHATI, KOLKATA

POSITIVE

SIDHANSU PRAMANIK

MURSHIDABAD

2/2

TRANSPORT/ KOLKATA, ANDHRA PRADESH, ORRISA.

POSITIVE

SUKHVINDER SINGH


2/2

TRANSPORT/ GUWAHATI, SILIGURI

POSITIVE (DON’T KNOW HOW TO USE THE CARD INTERSTED IN USING)

ASANSOL DURGAPUR DEVELOPMENT AUTORITY

DURGAPUR *CONTACT PERSON MR

B DAS(ASSITAT EXECUTIVE OFFICER) CONTACT NO-9434473178

6/6 *CORPORATE

CARD

ASANSOL-DURGAPUR

POSITIVE


09/MBA/28 Page 40

These are the list of customers to whom I talk and also meet with some of them their responses

are very encouraging and most of them are interested and satisfied with this program. Some of

the customer does not show interest the main reason behind this is

Problem with operation of card.

Small amount of transaction.

Unaware of the benefit provided by the Xtra power fleet card.

Less number of outlet with such facility.

Prefers to give cash instead of transaction through card.


09/MBA/28 Page 41

Questionnaire for Retailers

Personal details

Name……………………………………………

Organization……………………………………

Address…………………………………………

Date of visit…………………………………….

Instructions: Take your time to fill this questionnaire. Please read carefully,

before answering questions.

1. How many liters of fuel do you sell in a week through Xtra Power fleet card in a month?

(a) 1000-20000 lts

(b) 20000-40000 lts.

(c) 40000-60000 lts.

(d) More than 60000 lts.

2. What is the average sale of following brands at your outlet in a week?

Brands XtraMile Super diesel

XtraPremium Petrol

Servo lubricants

Unleaded petrol

Unleaded diesel

Maximum

Minimum


09/MBA/28 Page 42

3. What price do you get the following brands at?


XtraPremium Petrol

Servo lubricants

Unleaded petrol

Unleaded diesel

Price

4. What is your margin for the following brands?


XtraPremium Petrol

Servo lubricants

Unleaded petrol

Unleaded diesel

Price

5. What is the average sale of fuel/lubricants through Xtra Power Fleet card from your outlet?

………………………………………………………………………

6. Do you tell the customer/fleet owner/driver about the Xtra Power fleet card loyalty program

of IOCL?

a) YES.

b) NO.

C) SOMETIMES.

7. Do the staff/attendants know how to operate the machine of Xtra Power fleet card?

a) YES

b) NO


09/MBA/28 Page 43

8. What is the usual mode of payment made by the customer?

a) Cash.

b) Credit/Debit Cards.

c) Xtra power fleet card

9. Is the outlet well equipped with machines of Xtra Power fleet card?

a) YES.

b) NO.


09/MBA/28 Page 44

DATA FROM RETAILERS:

Total percentage of fuel sold by Xtra power fleet card

Percentage of sale of different products in a week

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

1000-20000 lts 20000-40000 lts. 40000-60000 lts. More than 60000 lts.

30%

20%

28%

32%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Xtra mile super disel

Xtra premium petrol

servo lubricant Uleaded petrol Unleaded disel

40%

10%

6%

14%

30%


09/MBA/28 Page 45

Percentage of price collected by different brands

Percentage of sale through Xtra power fleet card

0%

5%

10%

15%

20%

25%

30%

35%

40%

Xtra mile super disel

Xtra premium petrol

servo lubricant Uleaded petrol Unleaded disel

40%

10%

6%

14%

30%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

sale through xtra power fleet card

sale without using card

27.50%

72.50%


09/MBA/28 Page 46

Do you tell the customer/fleet owner/driver about the Xtra Power fleet card

Do the staff/attendants know how to operate the machine of Xtra Power fleet card?

0%

10%

20%

30%

40%

50%

60%

70%

yes no sometimes

65%

8%

27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

yes no

yes, 95%

no, 5%


09/MBA/28 Page 47

What is the usual mode of payment made by the customer?

Is the outlet well equipped with machines of Xtra Power fleet card?

0%

10%

20%

30%

40%

50%

60%

70%

Cash. Credit/Debit Cards Xtra power fleet card

60%

12%

28%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

yes no

87%

13%


09/MBA/28 Page 48

Questionnaire for the Customers

Personal details

Name……………………………………………

Address…………………………………………

Date of visit……………………………

Customer I.D. ………………………………………..

1. Do you visit the IOCL fuel station regularly?

a) YES.

b) NO.

c) Sometimes.

2. What is the usual mode of payment?

a) Cash.

b) Credit/Debit Card.

c) XTRAPOWER fleet card.

3. Do you know about the Xtra Power fleet card?

a) YES

b) NO.


09/MBA/28 Page 49

4. From where did you come to know about the fleet card program?

a) Advertisement.

b) Newspapers.

c) Journal/Magazines.

d) IOCL Retail Outlets.

e) Others……………….

5. How many vehicles/trucks do you have?

…………………….

6. Are you satisfied with the service of fleet card?

a) YES.

b) NO.

c) Partly satisfied.

7. Do you use your fleet card regularly?

a) YES.

b) NO.

c) Sometimes.

8. What improvements do you want in the fleet card loyalty program?

a) Better services to the card holders.

b) More attractive offers.

c) Others……………………………


09/MBA/28 Page 50

9. Do you redeem your Xtra points regularly?

a) YES.

b) NO.

c) Sometimes.

10. Any suggestions about the Xtra Power Fleet Card program?

……………………………………………………………..


09/MBA/28 Page 51

DATA FROM CUSTOMERS:

Do you visit the IOCL fuel station regularly?

What is the usual mode of payment?

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

yes no sometime

45%

15%

40%

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

cash debit/credit card xtra poewer fleet card

65%

6%

29%


09/MBA/28 Page 52

Do you know about the Xtra Power fleet card?

From where did you come to know about the fleet card program?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

yes no

88%

12%

0

0.1

0.2

0.3

0.4

0.5

0.6

17%

5%3%

55%

20%


09/MBA/28 Page 53

Are you satisfied with the service of fleet card?

Do you use your fleet card regularly?

0%

10%

20%

30%

40%

50%

60%

70%

yes no partly satisfied

65%

15%20%

0%

10%

20%

30%

40%

50%

60%

yes no sometimes

58%

12%

30%


09/MBA/28 Page 54

What improvements do you want in the fleet card loyalty program?

Do you redeem your Xtra points regularly?

0

0.1

0.2

0.3

0.4

0.5

0.6

better service more offers others

55%

15%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

yes no sometimes

80%

3%

17%


09/MBA/28 Page 55

FINDINGS

1. Most of the customers were very supporting and welcoming .They had Good will for IOC.

2. Customers who showed interest appreciated the offer provided and were eager to

continue talks with IOC. They were also wanted to know more about the program.

3. Some of the prospective customers were not aware of India Oil Xtra Power Fleet Card

Loyalty Program. Hence they were not interested. Also due to the increase in the oil

prices they were apprehensive a little bit.

4. Some of the customers facing technical difficulties while using the card since they are not

able to understand its operations clearly.

5. Some customers have no clear idea about its benefit and they are happy to use their old

traditional way of purchasing oil and lubricant.

6. Some of the customer considers it as very complex and the benefit is not so high.

7. Customers most of them are small transporter are not very keen for this program some

of them have purchase the card but the card remains as idle as they have very less

transaction and lack of information about the benefits.

8. Xtra power scheme is not available at all the retail outlet of Indian oil in so at a time it

creates problem.

9. The card swiping machines are not properly maintained at some places leading to many

customer complaints. Some of the machines are very old and they are need replacement

with the new one.

10. At some places pump attendants are also not interested in providing this service.

11. There are no pamphlets available at pumps, which could give a brief idea about the

loyalty program.

12. Pamphlet and booklets are in English; hence most of the people are not able to

understand.

13. There is no dedicated person for collecting the forms. So, there is a large backlog of

forms.

14. There is Lack of internet facility at some of the outlets and also problem with poor

network service.

15. Website of Xtra power (www.iocxtrapower.com) is not regularly updated.

16. There is no facility of sms for vehicle tracking and to know detail about existing balance

where other major oil producing company (BPCL) provides this service to their

customers.

17. Sundaram finance is the only partner for providing credit to the card owner.

18. There are no any special benefits for customers having larger transaction.

19. There is no any benefit for customers with small vehicle. 20. Corporate

customers are not very interested as there is no any special benefit for them.


09/MBA/28 Page 56

CONCLUSION

―...Customer loyalty comes in three phases. The first derives from location. The next phase is

meeting the needs of your customer profile. The third phase down is retailer's loyalty

programmes. Most consumers are multi-loyal...‖

The key to a successful business is a steady customer base. After all, successful businesses

typically see 80 percent of their business come from 20 percent of their customers.(PARETO

ANALYSIS).

Xtra power is a step of IOC towards building loyalty among the existing customers. Loyalty

program works only when the customer is emotionally attached to the brand.

The best way to keep customers loyal is to provide a good product or service that provides good

value for money. Branding alone will not make customers loyal, but back up a good product and

customer service with branding and loyalty will develop quicker.

Offers and loyalty schemes can increase loyalty, but they are no substitute for (and will not work

without) a good product, good customer service, and friendly customer relationships.

We need to enroll the right customers. We can recognize the highest value customers to

recognize and reward their value to our organization, we can cultivate high potential customers

who currently split their purchases between us and our competitors or reach out to those most

at risk of churning. Knowing which customer groups are most important to us allows crafting

recognition and rewarding strategy that piques their interest.

Customers should be involved in the program by constant communication to make them

understand what is in for them. Comprehensive surveys should be conducted to find out what

should be the ideal way to reward the loyal customers and retain them for the lifetime. Activities

like checking point balances online, responding to targeted offers, using kiosks, bidding on

auction items, entering sweepstakes and so on. Such participation is a sure sign of increasing

value to the customers


09/MBA/28 Page 57

RECOMANDATIONS

1. Most of the people are not aware regarding the Xtra power scheme, IOC should try to create

awareness regarding the program by means of more aggressive advertising.

2. The customers facing any kind of difficulties must be assisted promptly and their problem

must be considered with due care.

3. Xtra power fleet card banners should be put at proper location with easy visibility.

4. Information centers especially in remote areas must be setup so that people have access to

this program and they can have detail information about its benefits.

5. The facilities should be made available to more retail outlet.

6. The card swiping machine must be carefully maintained and provide quick service for any

technical difficulties. The old machines must be replaced by the new one without any delay.

7. Most of the pump attendant is not so educated hence a training program for them to provide

the use of swiping machine and its various technical aspects.

8. Regular visit to pump should be made and pump owner and attendants are encouraged to

provide the service for their own benefit and benefit to the customers. If possible some

rewards should be given to the pump with highest sale in month by card transaction.

9. Pamphlets must be available at pump so that customers get a brief idea about the program.

10. All the pamphlets and booklets are in English, hence most of the customer not able to

understand. It should be in regional language (Bengali) and Hindi for easy understanding.

11. There must be a fixed person for collecting forms and application for the card.

12. The website for Xtra power needs regular update with more user friendly access and details

of new as well as upcoming offers.

13. The poor network service at retail outlet need to improve urgently.

14. Target new vehicle/fleet owner by tie up with the vehicles companies and give

XTRAPOWER FLEET CARD with every new vehicle/truck.

15. If a card is not used for a specified period then a message should be given as a reminder and

if possible to contact the person as there may be some other reason.

16. Xtra reward program should be started at all other locations as early as possible.

17. Facility for vehicle tracking and to know the detail of existing balance by customer should

also made available through sms service.

18. Need for more credit partner to provide wide credit service to the customers.

19. Special benefit must be provided to customers with larger transaction and it is better to

divide the customers in groups as per their total transaction.

20. Need for Local alliance partners.

Documents

35151048 a Proect Report on Indian Oil Xtra Power Fleet Card Program