ANKIT Final Dissertation

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“ A STUDY OF CUSTOMER AWARENESS

ON PETROLEUM LOYALTY CARDS IN DEHRADUN REGION. “

Dissertation submitted to College of Management & Economic Studies for the partial Fulfillment of the degree of

INTEGRATED BBA+MBA (OIL&GAS) Guided by: FACULTY: MR. PANKAJ MOHAN PRASAD Assistant Professor College of Management & Economic Studies University of Petroleum & Energy Studies DEHRADUN – 248001

Submitted by: ANKIT AGARWAL Enrollment No: R 430209029 SAP ID: 500009257

College of Management and Economic Studies University of Petroleum and Energy Studies, DEHRADUN, UTTRAKHAND INDIA

APRIL, 2012 University of Petroleum and Energy Studies , Dehradun|

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UNIVERSITY OF PETROLEUM & ENERGY STUDIES

DISSERTATION REPORT ON

AWARENESS ON PETROLEUM LOYALTY CARDS IN

“ A STUDY OF CUSTOMER

DEHRADUN REGION. “

UNDER THE GUIDANCE OF Mr. PANKAJ MOHAN PRASAD (COMES) UPES SUBMITTED BY ANKIT AGARWAL R430209029 BBA + MBA (O&G) SEM 6

University of Petroleum and Energy Studies , Dehradun|

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ACKNOWLEDGEMENT

Before I go into the details details of my study, it will not be fair on my part if I fail to acknowledge the helping hand considerably supported this report. I express my profound sense of gratitude and indebtedness especially to Mr. PANKAJ MOHAN PRASAD Assistant Professor College of Management & Economic Studies University of Petroleum & Energy Energy Studies my MENTOR for motivating me and giving me the necessary guidance for this project.

I would also like to sincerely thank my parents and Dr. SHEETAL KHANKA (COURSE COORDINATOR) and my friends who provided me support throughout this project. They have been a perennial source of inspiration for me.


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Declaration

I Ankit Agarwal , hereby declare that the proje ct work entitled “A STUDY OF CUSTOMER AWARENESS ON PETROLEUM LOYALTY CARDS IN DEHRADUN REGION” REGION” is an authenticated work carried out by me . Under the guidance of Mr.

Pankaj Mohan Prasad for the partial fulfillment of the award of the degree of Integerated BBA + MBA (Oil & Gas Marketing) and this work has not been submitted for similar purpose anywhere else except to University of Petroleum And Energy Studies, Dehradun.

Date: 19‟th April, 2012

Ankit Agarwal R430209029


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TABLE of CONTENT TITLE PAGE NO.

1. LEARNING EXPERIENCE

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2 EXECUTIVE SUMMARY

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3. INTRODUCTION:

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4. BACKGROUND

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5. Objectives

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6. Scope of Research

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7. Literature Review

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8. Loyalty Card In Petroleum Sector

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8.1 Advantages And Disadvantages Of Loyalty Card 8.2 Types of Card 8.3 Loyalty Programs An Integreal Part 8.4 Comparative Study 9. RESEARCH METHODOLOGY& DATA ANALYSIS

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9.1 Data Source 9.2 Sampling size 9.3 SAMPLING TECHINQUE 9.4 SAMPLING SIZE DETERMINATION 9.5 Research Type 10. RESULT OUTCOME

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11. FINDINGS AND LIMITATIONS

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12. SUGGESTIONS

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13. CONCLUSION

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14. RECOMMENDATION

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15. ANNEXURE

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15.1 QUESTIONNAIRE 15.2 BIBLIOGRAPHY


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LEA RNING EXPERIENCE:

This project has been a great learning experience for me. It has provided me learning opportunities about loyalty program. By handling the project under guidance of my respected mentor I have gained knowledge about market culture and environment. On the whole, I am able to understand the prospective and current trends of the market and able to understand the psychology of customers. In the beginning of the project I was bit uncomfortable as I was unfamiliar about market, but this project has made me realize that to reach heights of success and position you have to start from the begining.


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E x ec u t i v e S u m m a r y :

To retain the customers in this highly competitive world companies come out with their loyalty programme and show how they could be beneficial to the customers if they remain with them for a long term. A specific methodology was adapted to work on the project which included literature review, data collection through retail outlets, Internet, survey, study of different loyalty programmes. This data was then analyzed and was implemented as per the methodology. Activities were performed with the customers at the retail outlet and other parties reveal that there are few problems and issues, which are both operational and structural, related with the cards. In fact as I approached customers for cards, it gave us firsthand knowledge of why acceptance is low. The major reason for low acceptance amongst customers is lack of proper communication, around 70% of the customers who are using the card are not aware about all the benefits of the cards. We tried to train RO attendants, to make them understand all the aspects related with the programme. We also took some suggestions from them to improve the programme. We approached many corporate customers but Cost of the cards was main factor according to the consumer response. To improve the existing programs feedback was taken from customers; pump attendants, Dealers and Alliance partners. Their valuable suggestions were taken in consideration and have been mentioned in report for further development of the programmes.


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INTRODUCTION:

Project Title: ― “ A STUDY OF CUSTOMER AWARENESS ON PETROLEUM LOYLTY CARDS IN DEHRADUN REGION. “

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 oilmarketing companies are finding it difficult to operate profitably in India. Thus to retain its existing customers, many new imitative have been adopted by the organizations.


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BACKGROUND 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 customers is always more than retaining an old customer. Loyalty programs are structured marketing efforts that reward, and

therefore encourage, loyal buying behavior (behavior which is potentially of benefit to the firm). Loyalty cards are a system of the loyalty business card. Loyalty cards are promotional marketing tools used by many businesses across several industries. In marketing generally and in retailing more specifically, a loyalty card, rewards card, points card, advantage card , or club card is a plastic or

paper card, visually similar to a credit card or debit card, that identifies the card holder as a member in a loyalty program. Businesses usually distribute them in stores, online or through the mail. The main purpose of loyalty cards is to encourage repeat purchases from new or existing customers. Cards typically have a barcode or magstripe that can be easily scanned and some are even chip cards. Small keyring cards (also known as keytags) which serve as key fobs are often used for convenience in carrying and ease of access. It enhances customer loyalty directly by offering rewards as an incentive to shop regularly at a particular supermarket group. Most loyalty cards also generate considerable information for supermarkets, including a custo mer‟s name, address and purchase preferences. Multiples can use this information to tailor product offerings, promotions, investment and advertising to the needs of their customers, thereby indirectly enhancing loyalty. Loyalty programes 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 day continued patronizing the businesses.


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OBJ ECTIVES OF THE LOYAL TY PROGRAMME:

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To study the loyalty program.

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

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To study the benefits provided by cards to the customers.

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To study how organizations tap local alliance partners for loyalty Card program. To obtain customer opinions and suggestions. To study the comparative analysis between the loyalty card benefits of all Indian marketing company.

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To become known to real market.

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To get the customers feedback on the program and know the reason for less than expected use cards.

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To increase awareness about the loyalty programme.

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To aware the RO attendants about the cards.


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S c o p e f o r R es e a r c h

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For any product to survive in the market, if consumer is not aware with its characteristics no matter what amount of companies spend on it, will not result in customer centric approach.

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It is necessary to study the pattern of consumer purchasing behavior based on their product awareness.

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Brand preferences will surely play a dominant role for consumer purchasing power depending upon their awareness, marketing styles of companies and factors affecting their buying behavior related to their types of automobile and their requirements.


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Literature Review:

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1. Title: The Impact of Brand Awareness on Consumer Purchase Intention

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Author : Dr. Hsin Kuang Chi, Nanhua University, Taiwan Year: February, 2009 Objective: The purposes of the study are to explore the effects among

brand awareness, perceived quality, brand loyalty and customer purchase intention and mediating effects of perceived quality and brand loyalty on brand awareness and purchase intention. 

Research Methodology: Brand awareness is the independent variable,

purchase intention is the dependent variable, and perceived quality and brand loyalty are the mediating variables. 

The measurement constructs include brand awareness, perceived quality, brand loyalty, and purchase intention with a Likert 7-point scale from 7 to 1 to present extremely agree, agree, a little agree, no opinion, a little disagree, disagree and very disagree.

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Conclusion: The study finds that brand identity and brand recall are

positively related to purchase intention. It signifies that consumers will buy a familiar and well know product (Keller, 1993; Jacoby & Olson, 1997; Macdonald & Sharp, 2000) . In other words, the higher the brand awareness,

the higher the purchase intention. In addition, the study reveals that action loyalty and affective loyalty are positively related to purchase intention.


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2. Title: Advertising and Consumer Awareness of a New Product.

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Author: Alicia Barroso

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Year: March 2008

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Objective: The goal of this paper is to evaluate the role of advertising in the

information diffusion of a new product. To address it I develop and estimate a structural discrete-choice model, in which the consumer is aware of only a subset of all products (her choice set), and her purchase decisions are only among the products in her choice set. The choice set evolves according to the information diffusion process, which is affected by the advertising expenditure. 

I also model the optimal price and advertising decisions of the firm, taking into account the dynamic effect of advertising on future sales (via an increase in the proportion of consumers aware of the product).

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Research Methodology: The model is estimated for Spanish car market

data. It is an unbalanced panel data on a monthly basis from January 1990 to December 2000 (132 months), with model as the elementary unit of analysis. The original sources of the data set are ANFAC (AsociaciÛn Nacional de Fabricantes de AutomÛviles y Camiones), ìGuÌa del comprador de ochesîmagazine and ìInfoadexî. Infoadex is a Örm that computes advertising expenditure, by monitoring communication markets and their prices on a daily basis.

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Conclusion: This paper evaluates the role of advertising in the information

diffusion of a new product. Using a structural model in which consumer purchase decision is specified with a discrete choice model with variation in the choice set and a dynamic model of advertising taking into account the dynamic e§ect of advertising on future consumer awareness (future sales), mypaper finds for the Spanish automobile market that advertising significantly enhances the Information diffusion of new products and reduces the loss of consumer welfare that comes from the lack of information. University of Petroleum and Energy Studies , Dehradun|

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3. Title: Effects of Brand Preference, Product Attributes, and Marketing Mix Variables in Technology Product Markets.

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Author : S. Sriram Year: First Version: June 2004

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Revised: September 2005

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Objective: The proposed model accounts for the effects of brand

preferences, model attributes and marketing mix variables on consumer choice. 

Research Methodology: Given our objectives of evaluating the effects

of product attributes as well as capturing the dynamics in the brand preferences on consumer choice , our paper is related to three streams of research. 

The first stream pertains to studies that have modeled the effect of product attributes on consumer choice.

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The second stream studies the effect of a firm or a brand‟s product line on its

demand. 

The third stream corresponds to those that model dynamic or time varying parameters.

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Conclusion: We find that intrinsic brand preferences have a much bigger

effect on the performance of the brand than the inclusive value which reflects model level prices, product attributes, and the length of the brand‟s product

line. Further, we find that some brands can increase their advertising expenditures and still increase their profitability.


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4. Title: The Influence of Advertising on Consumer Brand Preference

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Author : Adeolu B. Ayanwale

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Year: 9-16 (2005) Objective: The purpose of this study is to: (i) Examine the influence of

advertising on consumer buying behaviors. (ii) Determine the influence of age on advertising. 

Research Methodology: The data used for this study were obtained from

basically two sources: Primary and Secondary. However, the major data for the work were collected by means of structured questionnaire. Both descriptive and inferential statistics were used in analyzing the data collected. 

Conclusion: Brand preference does exist in the food drink industry. Many

consumers do not buy whatever is available or affordable if a product is good value for its price, it will command brand loyalty. However, advertising helps in projecting product quality and value before the consumers. This i s what is applicable to Bourn vita presently.


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5. Title: Management Perceptions of the Importance of Brand Awareness as an Indication of Advertising Effectiveness.

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Author : Emma Macdonald and Byron Sharp Year: 1996, 1, 1-15 Objective: This paper discusses recent theoretical developments which

attempt to explain the role which brand awareness plays and then presents empirical findings concerning how Australian managers utilize brand awareness as a measure of marketing and advertising effectiveness. 

Research Methodology: Personal in-depth interviews were carried out

with ten marketing managers initially. The final questionnaire was administered over the phone to 100 marketing managers in South Australia. 

Conclusion: This study helps to explain the attitude of many managers to the concept of brand awareness. Despite marketing theory which proposes that high brand awareness can be a very valuable asset to a firm, our finding is that the concept is frequently dismissed by managers as unimportant and certainly not worthy of monitoring. The authors' interpretation is that amongst a great many managers, gaining brand awareness is regarded as a once-off battle which must be fought, and once it is won, it can be forgotten. Managers give little consideration to the idea of maintaining and monitoring brand awareness on continuous basis. While brand awareness offers a great deal of potential value to the marketing manager, the difficulty lies in its measurement.


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L o y a l t y c a r d i n P et r o l e u m S e c t o r : Now loyalty card in petroleum sector is gaining momentum as all major companies are focusing on Customer Relationship Management (CRM) so that they could develop and retain customers. The immense competition is making loyalty programs an integral program for 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), XtraPower (IOCL), Drivetrack (HPCL), Transconnect (Reliance), Petrocard (BPCL) and others. However, these programs are mainly focused at the bulk consumers and the small consumers are left unnoticed more or less. But in present, such differentiation is minimized and loyalty program is made available for every segment of consumers. IndianOil's loyalty programmes are designed exclusively to benefit the l arge number of its customers who have been patronising the brand for over five decades. In order to do that IndianOil launched XTRAPOWER fleet card for fleet operators and corporate for cashless purchase of fuel & lubricants from designated retail outlets (petrol pumps) of IndianOil through flexible pre-paid and credit facilities, XTRAREWARDS card is India's first online rewards programme that seeks to inculcate the habit of redeeming points to develop and retain customer and XTRAPOWER easy fuel gift card facilitates corporate in paperless gifting of fuels and lubricants to their employees, customers and other stakeholders, that too f rom select IndianOil retail outlets numbering over 6,000.


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Bharat Petroleum Corporation Limited introduced "PetroBonus"

Programme to

meet the changing needs and desires of the customer. The Programme offers its members the convenience and rewards while purchasing the fuel using the “Petro Card”. The proposition of “Earn while you spend” articulates BPCL‟s desire to deliver more value

to its customers. For customers the key benefits of the Petro Card are: cashless convenience, acceptance at over 4300 outlets across the country, Quality assurance at Pure for Sure outlets, managing and tracking of fuel spends. HPCL also introduce many program to maintain loyal customer Drivesmart fleet Card offers cashless secure payments for fuel purchases across highways at select HPCL dealer outlets, Drive Track plus fleet card is a pre-paid (debit) card with expurse cum loyality applications for fleet operators (mainly highway segments). HPCL has introduced e-purse cum loyalty card CLUB HP Smart1 for the benefit of our prestigious customers at select Retail Outlets in Metros and Major cities. This Card gets you Convenience in addition to Rewards which are unmatched to any similar card scheme.


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A D V A N T A G E & D IS A D V A N T A G E O F L O Y A L T Y CARDS:

Advantages:

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Customer Relationship: Loyalty card programs can help retain customers, increase traffic and improve sales. Exclusive deals, discounts and incentives attract customers. Loyalty card incentives improve customer service and relationships with customers.

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Marketing Campaigns: If a company requires registration to distribute a loyalty card, it can collect data that will help drive effective marketing strategies. Keeping records of past purchases can help design better promotions and advertising campaigns. For example, offering an instant discount to loyalty card holders can encourage customers to register or make frequent purchases. In return, the contact information can be used to advertise directly with customers who are more likely to buy

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Business Growth:

Reduced advertising costs and increased return on

investment (ROI) on marketing campaigns are two main business growth advantages. Loyalty cards can attract customers to a business and away from the competition. They also can improve customer lifetime value--the amount a customer spends during the lifetime of their relationship with the business-toward consistent business growth


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Disadvantage:

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Customer Stalking: Loyalty cards potentially endanger business growth if a company does not develop the correct strategy. Excessive advertisements can be a turn-off and may be disregarded as junk advertisements. Furthermore, customers may feel offended if they are uncomfortable sharing sensitive information in order to get the incentives of the program.

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Reduced Profit:

Overuse of the loyalty card program causes other

marketing campaigns to lose effect. Difficulties arise in attracting more customers willing to purchase at regular prices. As a result, customers may refuse make purchases unless there is a reduced price or other incentive. If the average customer chooses this behavior, the business can suffer a reduction in long-term and short-term profits. 

Decreased Brand Value: When used ineffectively, loyalty card programs actually can reduce the value of the product or service offered because customers can make assumptions about the value of brands based on the price.

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Customer Resistance: Some savvy consumers may resist signing up for customer loyalty cards because they don't want companies collecting information about their purchases. They view this as an invasion of their privacy as a consumer. Inc.com reports that more and more customers are aware of the fact that using their customer loyalty cards help businesses collect information on their buying behavior that they may use to create future promotional offers.


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Types of Cards: Basically there are three types of cards that are used in loyalty program. These are as follows: 

Barcode card

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Magnetic stripe card

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Chip card

1. Barcode Card: It is a card having a barcode which is an optical machine-

readable representation of data, which shows certain data on certain products. Originally, barcodes represented data in the widt hs (lines) and the spacing of parallel lines, and may be referred to as linear or 1D (1 dimensional) barcodes or symbologies. Barcodes can be read by optical scanner called barcode readers, or scanned from an image by special software. Barcodes are widely used in shop floor control applications software where employees can scan work orders and enter the time spent on a job.


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2. Magnetic stripe Card: A magnetic stripe card is a type of card capable of storing data by modifying the magnetism of tiny iron-based magnetic particles on a band of magnetic material on the card. The magnetic stripe, sometimes called a m a g s t r i p e , is read by physical contact and swiping past a reading head. This card is also commonly used in petroleum sector for their loyalty program.

3. Chip Cards: A smart card, chip card, or integrated circuits card (ICC), is any pocket-sized card with embedded integrated circuits. There are two broad categories of ICCs. Memory cards contain only non-volatile memory storage components, and perhaps dedicated security logic. Microprocessor cards contain volatile memory and microprocessor components. Smart cards may also provide strong security authentication for single sign-on within large organizations. It also can provide identification, authentication, data storage and application processing.


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L o y a l t y P r o g r a m s a n In t e g r a l P ar t The immense competition will make loyalty programs an integral program of the dayto-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. 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 dayto-day functioning of petro-retailing. Of course, right now many such loyalty programs are being run by the petro-retailers like:


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C o m p a r at i v e St u d y :

Market share

1.50% 24% 47%

IOCL HPCL BPCL

26.50%

Others

Sources: Indian Oil and Gas and CRISIL Research- July 2010.

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It is clear from the chart that IOC is the biggest player in the petroleum retailing business in India, followed by HPCL, BPCL and other private players. The statistics available upto 2007-08 suggest that IOC has a market share of 50%. While the share of other PSU‟s has also shown an increasing trend,

share of the private player has decreased. This is because of the fact that they aren‟t given the kind of subsidies and oil bonds issued as in case of

public sector oil companies. 

It is clear that IOC is still the biggest player in the market. It is trying hard to regain its lost share.

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As explained above the major player in the petroleum retailing business are IOC, BPCL, HPCL, IBP, RIL, ESSAR, SHELL.


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R E SE A R C H M E T HO D O L O G Y & D A T A A N A L Y S IS To evaluate the level of awareness and its impact on consumer buying decision

following research methodology is utilized in this study.

Data Source:

The data used for this study were obtained from basically two sources Primary Data

The data collected through questionnaire based survey from the retailers and customers. Secondary Data 

Company„s annual reports

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Company„s journal and magazines

Company„s website

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Company„s leaflets

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Company„s pamphlets

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Products and sales report


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Sampling size:

In total, I will take feedback from 200 people who drive 2-wheeler and 4- wheeler in DEHRADUN Region. The questionnaire will have open ended questions related to l oyalty cards that the individuals are aware of. Will have close ended questions to know the level of awareness among them according to their ranking. Total Population:-Unknown Population mean: - Unknown Population Standard Deviation: - Unknown SAMPLING TECHINQUE: The sample size is based on Simple Random Sampling.

Population Proportion: - Number of elements in the population belonging to the category of interest Total number of elements in the population

Population Proportion: - Number of customer who are aware of loyalty cards/ not aware of layalty cards Total Population


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SA MPL ING SIZE DETERMINA TION: To calculate the sample size we should answer the following question: Q.1. How close do I want my sample estimate to be, to unknown parameters? Answer is denoted by “B” (BOUND)

Q.2. What do I want the confidence level to be, so that distance between the estimate and parameters is less than or equal to B. Answers is denoted by “α”

Q.3. what is my estimate of the variance (Standard deviation) of the population Answer is denoted by”σ^2” Minimum required sample size in estimating the population proportion (P) is: n= z^2α/2 (p q) B^2 Where q= 1-p Applying z- test as sample size is more than 30. CASES in which z test is use are: 

σ is known & the population is normal. σ is known & sample size is at least 30.(The population need not be normal)

Now, pilot survey in estimation of population proportion from 10 samples. Aware and Using Card(A1) Aware but not using card(A2) Not aware about the card(A3)

AWARE out of 10

2 Consumer

AWARE out of 10

4 Consumer

AWARE out of 10

4 Consumer

TOTAL

10 CONSUMERS

10 Consumers


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Series 1

10 9 8 7 6 5 4 3 2 1 0 A1

A2

A3

TOTAL

PILOT SURVEY of 10 CUSTOMERS

Assuming B=10%, B= 0.10 Assuming Confidence level= 95% Assuming z α/2 = 1.96(From z table)

P= Population proportion For, A1 2 consumers are aware from pilot survey P= 20%, p= 0.20 Putting the value in n= z^2α/2 (p q)

B^2 = (1.96) ^2 *0.20*0.20/ (0.10) ^2 = 96.04(Minimum required sample size in estimating population

proportion) = 96


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Now, why n=200 According to “Central Limit Theorem”:

1. When the sample size is large enough. The sampling distribution of sample mean is normal. 2. The expected value of sample mean is µ. 3. The standard deviation of sample mean is σ/square root of n. Standard Deviation = Distance between sample estimate & po pulation estimate. And as we know that Standard deviation = σ/square root of n. As, the value of n increases σ decreases. As, the standard deviation decreases,

uncertainty decreases and hence accuracy of the estimation increases. So, n= 200.


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Now on the basis of feedback from 200 samples we have derived that: Aware and Using Card(A1) Aware but not using card(A2) Not aware about the card(A3)

AWARE out of 200

40 Consumer

AWARE out of 200

80 Consumer

AWARE out of 200

80 Consumer

TOTAL

200 CONSUMERS

200 Consumers

Series 2 200 180 160 140 120 100 80 60 40 20 0 A1

A2

A3 TOTAL

SURVEY OF 200 CUSTOMERS


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Z= ^P (+-) z α/2* Square root of ^p*^q/n 1. For A1: - 40/ 200=20% Consumers 2. For A2: - 80/ 200= 40% Consumers 3. For A3: - 80/200=40% Consumers

Assuming 95% Confidence level 1. Z test for A1 p = 20%, q= 80 %, z α/2=1.96 z= 0.20(+-) 1.96* Square root of 0.20*0.80/200 = 0.20(+-) 0.069 z= 0.481(-), z= 0.619(+) z= 48.1% & 61.9% for A1.

2. Z test for A2 p=40%, q= 60%, z α/2=1.96 z=0.40(+-) 1.96* Square root of 0.40*0.60/200 = 0.40(+-)*0.060 = 0.19(-), 0.31(+) Z= 19%& 31% for A2

3. Z test for A3 p=40%, q= 60%, z α/2=1.96

z=0.40(+-) 1.96* Square root of 0.40*0.60/200 = 0.40(+-)*0.060 = 0.19(-), 0.31(+) Z= 19%& 31% for A3


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R e s ea r c h T y p e : The research method used is DESCRIPTIVE RESEARCH. 

Descriptive research includes surveys and fact finding enquires of different kinds. With the help of questionnaire.

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Describes characteristics of a population or a phenomenon.

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Some understanding of the nature of the problem.

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Aware of problem. (“What features do buyers prefer in our product?”) (“What kind of people is buying our product.”?)

Qualitative Research:-In my research I need comparison between several

human beings and their awareness behavior. So this based on all qualitative data. In short, Qualitative research is especially important in the behavioral sciences where the aim is to discover the underline motives of human behavior. 

Through such research we can analyses various factors which motivate to people to behave in a particular manner or which make people like or dislike using a loyalty card.


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RESULT OUTCOME

To achieve my objectives: To know the level of awareness among consumer for different loyalty cards in DEHRADUN region. 

With the feedback from customers I got to know that 60% are aware of loyalty cards and 40% are not aware.

Awareness

No 40% Yes 60%

From the feed back to know the level of awareness of loyalty cards present in DEHRADUN region, With the confidence level of 95% I say that 48.1% to 61.9% of the total population is aware of layalty cards and using it on the basis of the calculations. With the confidence level of 95% I say that 19% to 31% of the total population is aware of loyalty cards but not using loyalty cards on the basis of calculations. With the confidence level of 95% I say that 19% to 31 % of the total population is not aware of loyalty cards on the basis of calculations.


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FINDINGS A ND L IMITATIONS  

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Most of the customers were very supporting and welcoming . Customers who showed interest appreciated the offer provided and were eager to continue talks. They were also wanted to know more about the program. Some of the prospective customers were not aware of Loyalty Program. Hence they were not interested. Also due to the increase in the oil prices they were apprehensive a little bit. Some of the customers facing technical difficulties while using the card since they are not able to understand its operations clearly. Some customers have no clear idea about its benefit and they are happy to use their old traditional way of purchasing oil and lubricant. Some of the customer considers it as very complex and the benefit is not so high. 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. Loyalty scheme is not available at all the retail outlet so at a time it creates problem. 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. At some places pump attendants are also not interested in providing this service. There are no pamphlets available at pumps, which could give a brief idea about the loyalty program. Pamphlet and booklets are in English; hence most of the people are not able to understand. There is no dedicated person for collecting the forms. So, there is a large backlog of forms. There is Lack of internet facility at some of the outlets and also problem with poor network service. . 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. There are no any special benefits for customers having larger transaction. There is no any benefit for customers with small vehicle. Corporate customers are not very interested as there is no any special benefit for them.


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SUGGESTIONS:

What customer suggest? 

The point system is not useful for the two-wheelers or they want a card free or in low cost.

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The alliance partners are not that much attractive and moreover the particular shops don‟t provide discounts on all their items, the discounts are available

only on selective items . 

Offers printed on the charge slip at the time of transaction are not noticeable at first sight.

What pump attendant suggests? 

They should be given some benefits in terms of incentives for selling cards.

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When customer comes back to them with some problem they don‟t have

anyone to talk directly.

What dealer suggests? 

Program the usage of the card should be limited to a particular respective retail outlet.

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Machine should be checked at regular intervals so that the functioning of the machines can be properly maintained.

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Cards should be issued to individual customers also.

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Minimum required number of cards should be reduced.

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Cost of Single Recharge card should be revised.


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CONCLUSION It was a great opportunity for me to work for LOYALTY PROGRAM and learn about loyalty programmes and other organizational operations under the observation and guidance of my officers. This report gives a brief review about the loyalty programme and its operational process. As per my experience, existing programmes have a good customer base, service and infrastructure, and loyalty programmes have proved a major factor in increasing the sales as well as brand loyalty and preference. To generate more turnovers from loyalty programmes, some modifications are required in terms and conditions and operational structure of existing programmes. I concluded that level of awareness play a dominant role in consumer buying decision.The impact of awareness will be positive and negative depending on promotional activities result in more or less sales. If consumer is more aware he has more product knowledge which helps him to choose his favorable brand. If he has low awareness he will depend upon factors like: recommendation, peer pressure, social circle, convinience, Personal Factors That Affect People‟s Buying Behavior, Psychological Factors That Affect People‟s

Buying Behavior and Societal Factors That Affect People‟s Buying Behavior. When a product enters the market, a certain proportion of consumers are not aware of the new product, but this proportion decreases over time with the diffusion of information resulting in more sales.

The Loyaty Cards in India is one of the few sub-sectors of the petroleum industry in which we have loyalty cards ofeerings. In the market, whenever a customer goes to the top up his tank, he is facing many brands of oils, and then customer gets confused. Sometimes he did not even bother about the brand and buy oil from any of the outlet. So company has to spend more on promotional schemes, advertisement campaign and awareness programs to promote there brand image so hat comsumer become loyal to their brand.


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RECOMMENDATION

From the study, it is recommended that the company increase their marketing to create a better brand awareness for their brand. As such targeted advertising and promot ions is important to increase the awareness thus increase

the purchase of oil

of

their

brand. Since marketing play an important therefore emphasis should also be given by encouraging the marketing people. Perhaps incentive should be given to marketing people to promote the brand.


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ANNEXURE QUESTIONNAIRE

1. NAME –

2. GENDER – MALE

3. AGE – a) 20-25 d) 35-40

FEMALE

b) e)

25-30 40 and above

4. DO YOU KNOW ABOUT THE LOYALTY CARD ?

5. DO YOU HAVE A LOYALTY CARD ?

c)30-35

YES

YES

6. ARE YOU INTERESTED IN LOYALTY CARD SCHEME

NO

NO

? YES

NO

7. IF NOT, THEN WHY ? a) COST OF THE CARD IS HIGH b) OFFERS ARE NOT INTERESTING c) THESE SCHEMES ARE JUST WASTE OF TIME d) OTHERS SPECIFY


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FOR LOYALTY CARD OWNERS ONLY 1. DO YOU USE THE CARD EVERY TIME WHEN YOU FILL ANY PRODUCT IN YOUR VEHICLE? YES NO

2. DO YOU FACE ANY TROUBLE IN USING THE CARD ?

3. WHAT i. ii. iii. iv. v.

YES

NO

KIND OF PROBLEM DO YOU GENERALLY ENCOUNTER ? CARD RELATED MASHINE RELATED ATTENDANT RELATED ALL OF THE ABOVE OTHERS SPECIFY

4. DO YOU REGISTER YOUR PROBLEM AT RETAIL OUTLET ? YES NO

5. ARE YOU SATISFIED WITH THE SERVICES AT THE RETAIL AOULET REGADIND LOYALTY CARD? YES NO

SUGESSTIONS :


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BIBLIOGRAPHY:

1. Personal Factors That Affect People‟s Buying Behavior.htm (Article) http://www.flatworldknowledge.com/pub/1.0/principles-marketing/104967#web104968

2. Psychological Factors That Affect People‟s Buying Behavior.htm (Article) http://www.flatworldknowledge.com/pub/1.0/principles-marketing/104967#web104969

3. Societal Factors That Affect People‟s Buying Behavior.htm (Article) http://www.flatworldknowledge.com/pub/1.0/principles-marketing/104967#web104970

4. Situational Factors That Affect People‟s Buying Behavior Flat World Knowledge.htm (Article) http://www.flatworldknowledge.com/pub/1.0/principles-marketing/104967#

5. Scriptie _Chedi.pdf (The influence of brand preference on brand image transfer:

A research on brand event congruity in sponsorships Charlene R. Chedi) http://essay.utwente.nl/856/1/scriptie_Chedi.pdf

6. February, 2009 Dr. Hsin Kuang Chi 17 Ya Ting Yang.pdf (The Impact of Brand

Awareness on Consumer Purchase Intention: The Mediating Effect of Perceived Quality and Brand Loyalty) http://www.jimsjournal.org/17%20Ya%20Ting%20Yang.pdf

7. 1, 1-15 Emma Macdonald and Byron Sharp MB_V14_A2_Macdonald.pdf

(Management Perceptions of the Importance of Brand Awareness as an Indication of Advertising Effectiveness Emma Macdonald and Byron Sharp) http://marketing-bulletin.massey.ac.nz/V14/MB_V14_A2_Macdonald.pdf University of Petroleum and Energy Studies , Dehradun|

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ANKIT Final Dissertation

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