A Proect report on indian oil xtra power fleet card program

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

Ramendra Pratap Singh 09/MBA/28

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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 .


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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 34-36 WITH OTHER OMC LISTS OF CUSTOMERS AND THEIR FEEDBACK

37-40

QUESTIONNAIRE FOR RETAILER AND DATA 41-47 FROM RETAILERS QUESTIONNAIRE FOR CUSTOMER AND DATA 48-54 FROM CUSTOMERS FINDINGS OF PROJECT

55

CONCLUSION

56 57

RECOMANDATIONS


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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.


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OBJECTIVES OF THE PROJECT The major objectives of the project are: 1. 2. 3. 4. 5.

6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

To study the iocl loyalty program in Durgapur and nearby regions. To study the loyalty between the local customers and the company. To study the benefits provided by iocl to the local customers. To study how iocl tap local alliance partners for Xtra Power Fleet Card program. To obtain customer opinions and suggestions at IOC retail outlets and give recommendations to IOC to improve the implementation of Xtra POWER loyalty program. To study the comparative analysis between the loyalty card benefits of other marketing company. To become known to real market. 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. To check our theoretical knowledge with comparison to the practical market demands. It gives us an opportunity to apply our thinking, idea, knowledge in real market To enhance our skill and gain experience to be a true professional. To check our interpersonal skills. To learn necessary managerial skills and positive attitude towards your work. To get a flavor of Teamwork, Organizational culture, Team dynamics, result orientation, organizational pressure, complexities in achieving desire result. To understand the day to day functioning of an department within the organization And at last but not the least fir sharpen our career goals for a bright career.


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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.


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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.


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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.


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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.


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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.


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OVERALL MARKET SHARE

50%

IOCL, 50%

40% HPCL, 25.50%

30%

BPCL, 23%

20% Others, 1.50%

10% 0% IOCL

HPCL

BPCL

Others

MARKET SHARE IN PIPE LINE

50 45

40 35 30 25 20

IOCL, 47 ONGC, 30

15 10

HPCL, 16

5

BPCL, 7

0 IOCL

ONGC

HPCL

BPCL

Source: Indian Institute of Planning and Management.


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CUSTOMER PREFERENCE

100% 80% 60% 26%

38%

34%

HPCL

BPCL

IOCL

2%

40%

20% 0% OTHERS

SCORE OF COMPANIES ON A SCALE OF 10

12 10 8 6 4 2 0

BPCL, 4 BPCL, 3.2 BPCL, 3.5 BPCL, 3 IOCL, 3 IOCL, 3.5 IOCL, 3.2 IOCL, 3.9 HPCL, 3.5 HPCL, 4 HPCL, 3.2 HPCL, 4

Source: Indian Institute of Planning and Management.


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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.


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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.


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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 aftersales 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 widerange 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.


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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.


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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 cuttingedge 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.


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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 newgeneration, 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.


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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.


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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.


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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.


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1. REFINING

3 .MARKETING

2.PIPELINES

4.TRAINING

5. RESERCH AND DEVELOPMENT


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IOCL Brands


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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


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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


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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.


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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.


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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 forQuality & 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.


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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).


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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 webbased 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 tailormade 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.


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BENEFITS Better credit proposition. Higher value of reward points. Attractive rewards program. Personal accident insurance and medi-claim cover for the card member, drivers, codrivers & 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. 0446551498. 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/-)


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


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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 tollfree helpline (1800 4255599) caters to customer queries.


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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 HIGHEST VALUE REWARD POINT ON DISEL AND PETROL CASH LOADING

HP

.3%

.3%

MANUAL AND BY CENTAL CASH MANAGEMENT(FREE) YES(FREE OF COST)


YES

YES

YES

Rs.1,00,000/- per card, max up to Rs.20,00,000/FOR Driver : 50,000/AND Co-Driver : 25,000/-,Helpercum-cleaner : Rs.25,000/-

NO ANY INSURANCE FOR OWNER

NO ANY INSURANCE FOR OWNER

NO ANY INSURANCE BENEFITS

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

(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 Helpercum-cleaner: Rs.2500/. *(Minimum claim under medical insurance MUST be over Rs.500/-

NO ANY MEDICAL INSURANCE

NO ANY MEDICAL INSURANCE

MEDICAL INSURANCE

LOST LIABILITY INSURANCE

.4%

BPCL


ONLINE PIN UNLOCKING INSTANT FUEL REDEMPTION INSURANCE FOR OWNER INSURANCE DRIVER CLEANER

IOCL

CARD


Up to Rs 16000/per NO SUCH BENEFIT car subjected to misuse 24 hrs after lodging loss complain to Xtra power 24hrs help line.

NO SUCH BENEFIT

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NAME OF THE COMPANIES

BENEFITS LOST LIABILITY

CARD

VEHICLE TRACKING

SMART CARD PREPAID CREDIT MULTIPLE CREDIT PARTNER

IOCL

BPCL

HP

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

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.

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).

YES

YES

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. YES

SundaramFinanceLtd ICICI BANK (Currently, Sundaram Finance Citicorp Finance Ltd.) IndusInd Bank

RELOADING FACILITY ENORLMENT FEE AND RENWAL FEE LOYALTY VALUE

YES

YES

YES

YES , RS 100 PRE YES ,RS 250 PER NA CARD CARD POINT NA PER POINT 1 NA


PAISA

Page 35

NAME OF THE COMPANIES

IOCL

BPCL

HP

YES

YES

BENEFITS REWARD FUEL AND LUBE

YES

MINIMUM POINT REQUIRED FOR REDEMPTION

80,000-1 year 9, 00, 000 - once in 25,000-at any from the date of year (for blue and point of time valid silver) quarterly for up to 3 years. transaction. gold and on demand for platinum card holder.

REDEMPTION OPTION THROUGH CRT MACHINE 24 HRS HEELPLINE

YES

YES

YES

YES

YES

YES

TYRE AND BATTERY BENEFIT

On JK tyre per tyre NO SUCH BENEFIT NO SUCH BENEFIT Rs 100 less and 5 % off on Exide battery NO SUCH BENIFIT Free sms alerts for all NO SUCH balance check and BENEFIT vehicle tracking (fee only for blue card holder).

SMS BENIFIT

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.


Page 36

LIST OF SOME CUSTOMERS AND THEIR FEEDBACK NAME OF CUSTOMERS/ TRANSPORTING AGENCY

SHYAM TRANSPORT(SHY

LOCATIN OF TOTAL NO BUSINESS AND OF MOBILE NO VEHICLES /NUMBER OF CARDS DURGAPUR 89/73 9434062255

BUSINESS TYPE AND FEEDBACK BUSINESS ROUTE

TRANSPORT/ SOUTH BENGAL

POSITIVE

TRANSPORT/ BHERUMPUR, ASANSOL,RAJBAND H TRANSPORT/ JHARKHAND WEST BENGAL TRANSPORT/ SOUTH BENGAL

POSITIVE

EARTH WORK

POSITIVE

AM ISHRA)

MAA USHA MURSHIDABAD TRAVLES(GAUTAM 9475679543

8/4

DHAR)

ASHUTOSH GOURAI

RAJBANDH O343-2520389

36/34

SUSHANT PODDAR(PODDAR

DURGAPUR 9434754952

38/38

DURGAPUR 0343-2544855

40/10

POSITIVE

POSITIVE

TRAVELES)

UNITED TRANSPORT

MALDA TRUCK MALDA S AND O3512-266187 TANKERS OWNER(SOUMITRO

(CORPORATE CARD)

650/290

TRANSPORT/ POSITIVE ALL OVER WEST BENGAL TRANSPORT/ POSITIVE NORTH BENGAL TRANSPORT/ NEGATIVE (BETTER TO JHARKAHAND,ALL GIVE CASH THAN OVER WEST USING CARD) BENGAL TRANSPORT/ POSITIVE ALL OVER BENGAL

KUNDU)

GAGAN MONDAL VIVEK KUMAR SHUKLA

DURGAPUR 9434009331 DURGAPUR 9332132763

3/3

CARGO MOVERS(AMAL

DURGAPUR 9433640385

40/12

HOWRAH 9434106365

14/6

DEY)

MD ZAKHULA

BALWANT KOLKATA SINGH GREWAL 9433174935

7/7

60/10


NEGATIVE (NO CLEAR IDEA ABOUT THE BENEFITS AND NOT INTERESTD)

TRANSPORT/ POSITIVE KNOW ALL OVER BENGAL (DON’T HOW TO USE ,PUNJAB,UP etc WANT HELP AND VERY MUCH INTERSTED)


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LOCATIN OF TOTAL NO BUSINESS AND OF MOBILE NO VEHICLES /NUMBER OF CARDS DURGAPUR 4/4 9748679867

BUSINESS TYPE AND FEEDBACK BUSINESS ROUTE

TARNSPORT/ SOUTH BENGAL

POSITIVE

KOLATA 9339872010

20/4


NEGATIVE

DURGAPUR 9830073640

8/8

POSITIVE

TAPAN KUMAR NANDAN SUKHENDU DAWN BADAL SAHANI

DURGAPUR 9434663019 DURGAPUR 943436359 BANKURA/ 9434360359

5/3

UNIT TRANSPORT

KOLKATA 9830345678

80/(NOT

FRESH FRUIT SUPPLIER/KASHMI R, HIMACHAL PRADESH TRANSPORT/MALDA , SILIGURI. TRASPORT/ BANKURA, MALDA. TRANSPORT/ PURULIA, BURDWAN. TRANSPORT/ ALL OVER WEST BENGAL,NORTH INDIA. TRANSPORT/ ORRISA, CHATTISGARH.

NAME OF CUSTOMERS/ TRANSPORTING AGENCY

BIRENDER ROY

MEENA TRADING COMPANY(PANKA J SINGH)

EMARS ENTERPRISES (SUBRATO DASGUPTA)

4/4 3/3

SPECIFIED)

(PARGAT SINGH)

BINOY KOLKATA TRADING AND 9337919319 TRANSPOR (BINOY AGRWAL)

15/0

KUMAR

SGM TRANSWAYS

DURGAPUR 9434006156

15/15

ASANSOL 9434035999 MURSHIDABAD 9434000371

4/4

(ASHOK AGRWAL)

KRISHNA SAHA DEBABRATA BHAGAT


22/6

(DON’T KNOW HOW TO OPERATE AND WANT DEMONSTRATIO N) (VEHICLE OPERATES IN LOCAL AREAS AND LESS NUMBER OF OUTLET)

POSITIVE POSITIVE POSITIVE POSITIVE (DON’T KNOW HOW TO USE)

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

TRANSPORT/ POSITIVE ORRISA, CHATTISGARH TRANSPORT/ POSITIVE SOUTH BENGAL TRANSPORT/ POSITIVE ASANSOL, SILIGURI, KOLAKATA.

Page 38

NAME OF CUSTOMERS/ TRANSPORTING AGENCY

JAFAR ALI

LOCATIN OF TOTAL NO BUSINESS TYPE AND FEEDBACK BUSINESS AND OF BUSINESS ROUTE MOBILE NO VEHICLES /NUMBER OF CARDS MURSHIDABAD 9732978565

2/1

WODDWN WORKS/ GUWAHATI.

POSITIVE

ABDUL BARI

MURSHIDABAD 9732954469

17/10

POSITIVE

ALOKENDU ADHIKARI


30/30

TRANSPORT/ BENGAL,BIHAR,UP, HARYANA. TRANSPORT/ ALL OVER BENGAL

SUBRATO BHOWMIK

ASANSOL 9332212987

3/3

MINI BUS POSITIVE OWNER/ASANSOLHARIPUR-JAMURIA

HAIDER ALI


4/4

TRANSPORT/ ASANSOL, GUWAHATI, KOLKATA

SIDHANSU PRAMANIK

MURSHIDABAD

2/2

TRANSPORT/ POSITIVE KOLKATA, ANDHRA PRADESH, ORRISA.

SUKHVINDER SINGH


2/2

ASANSOL DURGAPUR DEVELOPMENT AUTORITY

DURGAPUR *CONTACT PERSON

MR B DAS(ASSITAT EXECUTIVE OFFICER) CONTACT NO9434473178


TRANSPORT/ GUWAHATI, SILIGURI

6/6 *CORPORATE

ASANSOLDURGAPUR

POSITIVE

POSITIVE

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

POSITIVE

CARD

Page 39

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.


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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 Servo Unleaded Petrol lubricants petrol

Unleaded diesel

Maximum Minimum


Page 41

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

Brands


XtraPremium Servo Petrol lubricants

Unleaded Unleaded petrol diesel

Price

4. What is your margin for the following brands?

Brands


XtraPremium Servo Petrol 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


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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.


Page 43

DATA FROM RETAILERS:

Total percentage of fuel sold by Xtra power fleet card 0.35

32%

30%

28%

0.3 0.25

20%

0.2 0.15 0.1 0.05 0 1000-20000 lts

20000-40000 lts.

40000-60000 lts.

More than 60000 lts.

Percentage of sale of different products in a week 40%

40%

35%

30%

30% 25% 20%

14%

15%

10%

10%

6%

5% 0% Xtra mile super disel


Xtra premium petrol

servo lubricant

Uleaded petrol

Unleaded disel

Page 44

Percentage of price collected by different brands 40%

40%

35%

30%

30% 25% 20%

14%

15%

10%

10%

6%

5% 0% Xtra mile super disel

Xtra premium petrol

servo lubricant

Uleaded petrol

Unleaded disel

Percentage of sale through Xtra power fleet card 80.00% 72.50% 70.00% 60.00% 50.00% 40.00% 27.50%

30.00% 20.00% 10.00%

0.00% sale through xtra power fleet card


sale without using card

Page 45

Do you tell the customer/fleet owner/driver about the Xtra Power fleet card 70%

65%

60% 50% 40% 27%

30% 20% 8%

10% 0% yes

no

sometimes

Do the staff/attendants know how to operate the machine of Xtra Power fleet card? 100%

yes, 95%

90% 80% 70% 60% 50% 40% 30% 20% no, 5%

10% 0% yes


no

Page 46

What is the usual mode of payment made by the customer? 70% 60% 60%

50%

40% 28%

30%

20% 12% 10%

0% Cash.

Credit/Debit Cards

Xtra power fleet card

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

87% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

13%

yes


no

Page 47

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.


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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……………………………


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9. Do you redeem your Xtra points regularly? a) YES. b) NO. c) Sometimes.

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


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DATA FROM CUSTOMERS: Do you visit the IOCL fuel station regularly? 45%

45%

40% 40% 35% 30% 25% 20% 15% 15% 10% 5% 0% yes

no

sometime

What is the usual mode of payment? 0.7

65%

0.6 0.5 0.4 29%

0.3 0.2 6%

0.1 0 cash


debit/credit card

xtra poewer fleet card

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Do you know about the Xtra Power fleet card?

88%

90% 80% 70% 60% 50% 40% 30% 20%

12%

10% 0%

yes

no

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

0.6

55%

0.5 0.4 0.3 0.2

20%

17%

0.1

5%

3%

0


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Are you satisfied with the service of fleet card?

70%

65%

60% 50% 40% 30% 20% 20%

15%

10% 0% yes

no

partly satisfied

Do you use your fleet card regularly? 60%

58%

50% 40% 30% 30% 20% 12% 10% 0% yes


no

sometimes

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What improvements do you want in the fleet card loyalty program? 0.6

55%

0.5 0.4 0.3 20% 0.2

15%

0.1 0 better service

more offers

others

Do you redeem your Xtra points regularly?

80% 80% 70% 60% 50% 40% 30%

17%

20% 3%

10% 0%

yes


no

sometimes

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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.


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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


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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.


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A Proect report on indian oil xtra power fleet card program

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