iocl project report on :

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 Page 1

ACKNOWLEDGEMENT

It gives me immense pleasure, to express my unfeigned and sincere
thanks and gratitude to Mr. SOVAN MANDAL ASSISTANT MANAGER
(FLEET MARKETING) for his invaluable guidance during the course of the
project.
I am thankful to MR KUMARJOYTI ROY CHAUDHURI (SR. DIVISONAL
RETAIL SALES MANAGER DGP DO) and MR KRISHNENDU CHAUDHURI,
MANAGER (RETAIL SALES) for his inputs and constant encouragement
during my internship at IOC.

Finally, I thank department of management studies national institute of
technology (Durgapur) for giving me this wonderful opportunity to pursue
my internship at IOC.

The stint at IOC was very useful in terms of gaining valuable hands on
sales experience and understanding consumer behavior .

09/MBA/28 Page 2

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
RECOMANDATIONS 57

09/MBA/28 Page 3

PROJECT SYNOPSIS

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

Introduction to the project:

In the present world where there is intense competition, it becomes very necessary to retain
loyal customers. The commercial benefits of loyal customers are well known by the brand
managers. The cost of acquiring a new customer is always more than retaining an old customer.

Loyal customers are also important because they provide the consistency of volume critical for
stocking and managing just in time inventory to maintain the consistency of customer demand
during crisis which is required to run any retail business. There are also customers, which are
strong advocates of brands and are always willing to forgive an occasional lapse. All of these are
compelling reasons that retailers are on a quest for customer loyalty and are increasingly
looking at implementing loyalty programs or loyalty cards of some form.

With increasing oil prices and competition increasing at a rapid pace, many oil-marketing
companies are finding it difficult to operate profitably in India. Indian Oil Corporation Ltd, is no
exception to this reality. Thus to retain its existing customers, many new imitative have been
adopted by the organization. One such big idea is Xtra POWER Loyalty Program.

In this project, we have been assigned IOC retail outlets, which are participating in the Xtra
POWER Loyalty program. Our task is to promote and sell the Xtra POWER FLEET Loyalty card
to the customers and at the same time obtain the customers opinions and suggestions about the
loyalty program. Tapping local alliances is another aspect of this project.

At the same time, we have to check whether the retail outlets are carrying out the
implementation of the loyalty program in the right way.

09/MBA/28 Page 4

OBJECTIVES OF THE PROJECT

The major objectives of the project are:

1. To study the iocl loyalty program in Durgapur and nearby regions.
2. To study the loyalty between the local customers and the company.
3. To study the benefits provided by iocl to the local customers.
4. To study how iocl tap local alliance partners for Xtra Power Fleet Card program.
5. To obtain customer opinions and suggestions at IOC retail outlets and give
recommendations to IOC to improve the implementation of Xtra POWER loyalty
program.
6. To study the comparative analysis between the loyalty card benefits of other marketing
company.
7. To become known to real market.
8. TO gain real experience of market that how corporate persons work. How we have to
behave, how to present yourself, how to make deals with clients etc.
9. To check our theoretical knowledge with comparison to the practical market demands.
10. It gives us an opportunity to apply our thinking, idea, knowledge in real market
11. To enhance our skill and gain experience to be a true professional.
12. To check our interpersonal skills.
13. To learn necessary managerial skills and positive attitude towards your work.
14. To get a flavor of Teamwork, Organizational culture, Team dynamics, result orientation,
organizational pressure, complexities in achieving desire result.
15. To understand the day to day functioning of an department within the organization
16. And at last but not the least fir sharpen our career goals for a bright career.

09/MBA/28 Page 5

RESEARCH METHODOLOGY

DATA COLLECTION METHOD

Types of Data and Data Collection:
Data that I have received for making the project is a combination of both primary and secondary
data.

Primary Data

The data collected through questionnaire based survey from the retailers and customers of
Durgapur and nearby region. The name of the retail outlets of Indian oil from where these data
are collected are

City fuel (city center Durgapur)
Kamala service center (city center Durgapur)
Kalpana service center (Durgapur station )
Vetron outlet (Asansol)
Jublie outlet (Asansol)
Jaiswal filling center (Raniganj)
Jaiswal auto service (Raniganj)
Sanchari fuel station(burdwan)

Secondary Data

Company‘s annual reports
Company‘s journal and magazines
Company‘s website
Company‘s leaflets
Company‘s pamphlets
Products and sales report

Sampling plan

The sample size for retailer is 8 and that of customers is 200 of Durgapur and nearby region.
The respondents are chosen through cluster sampling universe elements are chosen in group
rather than individually. Whereas convenience sampling is based on opportunism.

09/MBA/28 Page 6

IOCL-AN INTRODUCTION

VISION

―A major diversified, transnational, integrated energy company, with national leadership and a
strong environment conscience, playing a national role in oil security & public distribution‖.

MISSON

To achieve international standards of excellence in all aspects of energy and diversified
business with focus on customer delight through value of products and services, and cost
reduction.
To maximize creation of wealth, value and satisfaction for the stakeholders.
To attain leadership in developing, adopting and assimilating state-of-the-art technology
for competitive advantage.
To provide technology and services through sustained Research and Continuous
Development.
To foster a culture of participation and innovation for employee growth and
contribution.
To cultivate high standards of business ethics and Total Quality Management for a
strong corporate identity and brand equity.
To help enrich the quality of life of the community and preserve ecological balance and
heritage through a strong environment conscience.

09/MBA/28 Page 7

INDIAN OIL: INDIA’S DOWNSTREAM MAJOR

Beginning in 1959 as Indian Oil Company Ltd., Indian Oil Corporation Ltd. was formed in 1964
with the merger of Indian Refineries Ltd. (established 1958).
Indian Oil Corporation Ltd. (Indian Oil) is India's largest commercial enterprise, with a sales
turnover of Rs. 58676crore and profits of Rs. 7976.48 for the year 2008-09.
Indian Oil is also the highest ranked Indian company in the prestigious Fortune 'Global 500'
listing, having moved up 11TH places to the 105TH position in 2009. It is also the 20th largest
petroleum company in the world.

The Indian Oil Group of companies owns and operates 10 of India's 19 refineries with a
combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, .i.e. 1.2 million
barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation Ltd.
(CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRP). Indian Oil and its
subsidiaries account for a 47% share in the petroleum products market, 40% share in refining
capacity and 67% downstream sector pipelines capacity in India. The Indian Oil operates the
largest and the widest network of fuel stations in the country, numbering about 17606 (15557
regular ROs & 2049 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations
(ALDS). It supplies Indane cooking gas to over 47.5 million households through a network of
4,990 Indian distributors. In addition, Indian Oil‘s Research and Development Center (R&D) at
Faridabad supports, develops and provides the necessary technology solutions to the operating
divisions of the corporation and its customers within the country and abroad. Subsequently,
Indian Oil Technologies Limited - a wholly owned subsidiary, was set up in 2003, with a vision
to market the technologies developed at Indian Oil‘s Research and Development Center. It has
been modeled on the R&D marketing arms of Royal Dutch Shell and British Petroleum.

Indian Oil is investing Rs. 43,393 crore (US $10.8 billion) during the period 2007-12 in
augmentation of refining and pipeline capacities, expansion of marketing infrastructure and
product quality upgradation as well as in integration and diversification projects Indian Oil
operates the largest and the widest network of petrol & diesel stations in the country, numbering
over 17,600. It reaches Indane cooking gas to the doorsteps of over 50 million households in
nearly 2,700 markets through a network of about 5,000 Indane distributors.

Indian Oil‘s ISO-9002 certified Aviation Service commands over 62% market share in aviation
fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines
and the Indian Defense Services. The Corporation also enjoys a dominant share of the bulk
consumer business, including that of railways, state transport undertakings, and industrial,
agricultural and marine sectors. Indian Oil has set up subsidiaries in Sri Lanka, Mauritius and
the United Arab Emirates (UAE), and is simultaneously scouting for new opportunities in the
energy markets of Asia and Africa.

09/MBA/28 Page 8

INDIAN OIL FINANCIAL PERFORMANCE: 2009-2010

Indian Oil‘s gross turnover (inclusive of excise duty) for the year 2009-10 touched Rs. 2, 71,074
corers. The Profit after Tax was Rs 10,221 crore.

For the year 2009-10, the company‘s Earnings per Share (EPS) stands at Rs 42.10 as compared
to Rs. 12.15 for 2008-09. The total net under-recovery on account of price under–realisation on
PDS Kerosene and domestic LPG in the financial year 2009-10, is Rs. 3,159 crore. This is in
comparison with a net under-realisation of Rs.Nil crore in 2008-09.

For the year 2009-10, Indian Oil has accounted for cash compensation of Rs 15,172 crore, out of
which Rs. 7,100 crore has been received during the year. In addition, the company has been
granted discount of Rs 7,548 crore received from upstream companies, as per the under
recovery sharing mechanism.

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

The Gross Refining Margin for April-March 2010 is USD 4.47 per barrel as compared to USD
3.69 per barrel during the previous year.

09/MBA/28 Page 9

INDIAN OIL - A NATIONAL BRAND

Beginning in 1959 as Indian Oil Company Ltd., Indian Oil Corporation Ltd. was formed in 1964
with the merger of Indian Refineries Ltd. (established 1958).

Indian Oil Corporation Ltd. (Indian Oil) is India's largest commercial enterprise, with a sales
turnover of Rs. 58676crore and profits of Rs. 7976.48 for the year 2008-09. Indian Oil is also
the highest ranked Indian company in the prestigious Fortune 'Global 500' listing, having
moved up 11TH places to the 105TH position in 2009. It is also the 20th largest petroleum
company in the world. The Indian Oil Group of companies owns and operates 10 of India's 19
refineries with a combined refining capacity of 60.2 million metric tonnes per annum (MMTPA,
.i.e. 1.2 million barrels per day). These include two refineries of subsidiary Chennai Petroleum
Corporation Ltd. (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRP).
Indian Oil and its subsidiaries account for a 47% share in the petroleum products market, 40%
share in refining capacity and 67% downstream sector pipelines capacity in India. The Indian
Oil operates the largest and the widest network of fuel stations in the country, numbering about
17606 (15557 regular ROs & 2049 Kissan Sewa Kendra). It has also started Auto LPG Dispensing
Stations (ALDS). It supplies Indane cooking gas to over 47.5 million households through a
network of 4,990 Indian distributors. In addition, Indian Oil‘s Research and Development
Center (R&D) at Faridabad supports, develops and provides the necessary technology solutions
to the operating divisions of the corporation and its customers within the country and abroad.
Subsequently, Indian Oil Technologies Limited - a wholly owned subsidiary, was set up in 2003,
with a vision to market the technologies developed at Indian Oil‘s Research and Development
Center. It has been modeled on the R&D marketing arms of Royal Dutch Shell and British
Petroleum. Indian Oil is investing Rs. 43,393 crore (US $10.8 billion) during the period 2007-12
in augmentation of refining and pipeline capacities, expansion of marketing infrastructure and
product quality upgradation as well as in integration and diversification project.

09/MBA/28 Page 10

OVERALL MARKET SHARE

50% IOCL, 50%

40%
HPCL,
30% 25.50%
BPCL, 23%
20%

10% Others,
1.50%
0%
IOCL HPCL BPCL Others

MARKET SHARE IN PIPE LINE

50
45
40
35
30
25
IOCL, 47
20
15 ONGC, 30
10
HPCL, 16
5
BPCL, 7
0
IOCL ONGC HPCL BPCL

Source: Indian Institute of Planning and Management.

09/MBA/28 Page 11

CUSTOMER PREFERENCE

100%

80%

60%
26% 38% 34% 2%
40%

20%

0%
HPCL BPCL IOCL OTHERS

SCORE OF COMPANIES ON A SCALE OF 10

12
10 BPCL, 3.2 BPCL, 4
8 BPCL, 3.5 BPCL, 3
6 IOCL, 3 IOCL, 3.5 IOCL, 3.2 IOCL, 3.9
4
2 HPCL, 3.5 HPCL, 4 HPCL, 3.2 HPCL, 4
0

Source: Indian Institute of Planning and Management.

09/MBA/28 Page 12

IOC- Products
Indian Oil is not only the largest commercial enterprise in the country it is the flagship corporate
of the Indian Nation. Besides having a dominant market share, Indian Oil is widely recognized
as India‘s dominant energy brand and customers perceive Indian Oil as a reliable symbol for
high quality products and services. Benchmarking Quality, Quantity and Service to world-class
standards is a Philosophy that Indian Oil adheres to so as to ensure that customers get a truly
global experience in India. Our continued emphasis is on providing fuel management solutions
to customers who can then benefit from our expertise in efficient sourcing and least cost
supplies keeping in mind their usage patterns and inventory management.

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

Swagat (Highway) and Kissan Seva Kendra‘s (Rural). These brands are widely recognized as
pioneering brands in the petroleum retail segment. Indian Oil‘s leadership extends to its energy
brands - Indane LPG, SERVO Lubricants, Auto gas LPG, Xtra Premium Branded Petrol, Xtra
Mile Branded Diesel, Xtra Power Fleet Card, Indian Oil Aviation and Xtra Rewards cash
customer loyalty program me.

1. AUTOGAS: The fuel is marketed by Indian Oil under the brand name ‗Auto Gas‘ Indian
Oil has setup 272 Auto LPG Dispensing Stations (ALDS) covering 149 cities across India.
Auto Gas impacts greenhouse emissions less than any other fossil fuel when measured
through the total fuel cycle. Conversion of petrol to Auto Gas helps substantially reduce
air pollution caused by vehicular emissions. The saving on account of conversion to Auto
Gas in comparison to petrol is about 35-40%. Low filling times and the 35-40% saving is
a reason enough for a consumer to convert his vehicle to Auto Gas.

09/MBA/28 Page 13

2. INDIAN OIL AVIATION SERVICE ATF/JET FUEL: Indian Oil Aviation Service is
a leading aviation fuel solution provider in India and the most-preferred supplier of jet
fuel to major international and domestic airlines. Between one sunrise and the next,
Indian Oil Aviation Service refuels over 1500 flights – from the bustling metros to the
remote airports linking the vast Indian landscape, from the icy heights of Leh (the
highest airport in the world at 10,682 ft) to the distant islands of Andaman & Nicobar.

3. BITUMEN: Indian Oil produces bitumen from its refineries at Panipat, Mathura,
Koyali, Haldia and Chennai and markets it in bulk as well as packed in steel drums.
Indian Oil also markets modified Bitumen CRMB and Emulsion. CRMB is produced at
Panipat, Mathura, Koyali, Haldia and CPCL refineries. Indian Oil markets Bitumen
Emulsion by the brand name Indemul and it is produced from emulsion plants located in
Haldia and Panipat refineries. CRMB and Emulsion are available both in bulk as well as
in packed drums.

09/MBA/28 Page 14

4. HIGH SPEED DIESEL: Indian Oil‘s XTRAMILE Super Diesel, the leader in the
branded diesel segment, is blended with world-class multi-functional fuel additives.
Commercial vehicle owners choose XTRAMILE because they see a clear value benefit in
terms of superior mileage, lower maintenance costs and improved engine protection. A
growing section of customers who own diesel automobiles, both in the ‗lifestyle‘ and
‗passenger‘ category, prefer XTRAMILE as a fuel for its added and enhanced
performance. XTRAMILE has brought in a huge savings in the high mileage commercial
vehicles segment. Transport fleets that operate a large number of trucks crisscrossing the
country are using XTRAMILE to benefit from higher mileage and reduced maintenance
costs.

5. BULK/INDUSTRIAL FUEL: Indian Oil‘s marketing operations network of storage,
distribution and supply hubs is backed by on-time logistics and round-the-clock after-
sales service. Many institutional customers like the railways, steel plants, thermal power
plants, textile mills, power plants, state transport undertakings, large corporate and fleet
& logistics companies tie-up for long-term contracts backed by Indian Oil‘s
comprehensive fuel & lubricants consultancy-a formidable expertise that Indian Oil has
built over nearly five decades of working with a cross-section of customers from a wide-
range of industrial sectors. Indian Oil‘s bulk liquid fuel supply covers the complete
gamut of fuels-Auto fuels, Light Diesel Oil, Low Sulphur Heavy Stock, Special Products
and much more.

09/MBA/28 Page 15

6. INDANE GAS: Indane is today one of the largest packed-LPG brands in the world and
has been conferred the coveted ‗Consumer Super brand‘ status by the Super brands
Council of India. Having launched LPG marketing in the mid-60s, Indian Oil has been
credited with bringing about a ‗kitchen revolution,‘ spreading warmth and cheer in
millions of households with the introduction of the clean and efficient cooking fuel. It
has led to a substantial improvement in the health of women, especially in rural areas by
replacing smoky and unhealthy chulha.

Indane is today an ideal fuel for modern kitchens, synonymous with safety, reliability
and convenience. With the status of an exclusive business vertical within the
Corporation, the Indane network delivers 1.2 million cylinders a day to the doorsteps of
over 53 million households, making Indian Oil the second largest marketer of LPG
globally, after SHV Gas of The Netherlands. Indane is available in compact 5 kg cylinders
for rural, hilly and inaccessible areas, 14.2 kg cylinders for domestic use, and 19 kg and
47.5 kg for commercial and industrial use.

09/MBA/28 Page 16

7. SERVO LUBRICANTS AND GREASES: Indian Oil‘s SERVO is the brand leader
among lubricants and greases in India and has been conferred the ―Consumer Super
brand‖ status by the Super brands Council of India.

With over 500 commercial grades and 1,500 formulations encompassing literally every
conceivable application, SERVO serves as a one-stop shop for complete lubrication
solutions in the automotive, industrial and marine segments. Recognized for cutting-
edge technology and high-quality products, SERVO is backed by Indian Oil‘s world-class
R&D and an extensive blending and distribution network. In the retailing segment,
besides Indian Oil petrol stations, SERVO range of lubricants is available through a
network of SERVOXPRESS stations, bazaar outlets and thousands of auto spare parts
shops across the country.

8. MARINE FUELS AND LUBRICANTS: Indian Oil caters to all types of bunker fuels
and lubricants required by various types of vessels operating throughout the world in the
shipping industry. Bunker supplies are made at all major ports of India; Mumbai,
Kandla, Vasco, Chennai, Tuticorin, Vizag, Cochin, New Mangalore, Kolkata, Paradeep,
JNPT, Port Blair and Haldia. Apart from Indian Navy, whose 100% bunker requirement
is met by Indian Oil, it also supplies bunker fuels to all major shipping and dredging
companies of India. Spot requirement of different vessels calling at Indian ports are met
through nominations received from local shipping agents and international bunker
traders/brokers.

09/MBA/28 Page 17

9. PETRO/GASOLINE: In view of the auto fuel policy issued by Govt of India, more &
more stringent specifications (equivalent to Euro II, Euro III, and Euro IV) are being
made applicable for the gasoline being marketed in India. This has led to reduction of
environmentally polluting factors in gasoline, Petro gasoline.

XTRA PREMIUM BRANDED PETROL

Indian Oil‘s XTRAPREMIUM is India‘s leading branded petrol boosted with new-generation
multifunctional additives known as friction busters that prevent deposition in the combustion
chamber. XTRAPREMIUM is custom-designed to deliver higher mileage, more power, better
pick-up, faster acceleration, enhanced engine cleanliness and lower emission.
XTRAPREMIUM is a sought-after fuel among discerning motorists, and owners of new-
generation, high-performance cars have endorsed its unmatched-performance.
In terms of fuel system cleanliness XTRAPREMIUM is hugely superior to any other alternative
fuel in this segment, with the additional benefit of fuel efficiency through the friction modifier.
The additive package contains proprietary components, including a detergent dispersant, a
friction modifier and a corrosion inhibitor, as a perfectly optimized formulation in synthetic
carrier oil. The detergent dispersant cleans the fuel system and the friction modifier drastically
reduces friction in the non-lubricated engine area, thereby contributing to fuel economy.

09/MBA/28 Page 18

10. PETRO CHEMICALS: India is amongst the fastest growing petrochemicals markets in
the world. Taking this into consideration and to enhance its downstream integration,
Indian Oil is focusing on increasing its presence in the domestic petrochemicals sector
besides the overseas markets through systematic expansion of customer base and
innovative supply logistics. Petrochemicals have been identified as a prime driver of
future growth by Indian Oil. The Corporation is envisaging an investment of Rs 30,000
crore in the petrochemicals business in the next few years. These projects will utilize
product streams from the existing refineries of Indian Oil, thereby achieving better
exploitation of the hydrocarbon value chain.

11. SPECIAL PRODUCTS: Other than the regular petroleum products like light
distillates, middle distillates, heavier products like Furnace Oil, Bitumen, etc., Indian Oil
refineries also manufacture petroleum products for specific applications. These specific
applications could be feed stock for chemical industry, raw material for specific
industries and solid fuels. The petroleum products, produced for specific applications are
called, 'Petrochemicals and Specialties (P&S) Products'.

Basic end uses:

Benzene: Chemical industry
Pet coke: Cement industry
CBFS: Carbon black manufacturers
Propylene: Chemical industry
JBO: Jute industry
RPC: CPC manufacturers
LABFS: LAB manufacturers
Micro Crystalline Wax (MCW): Pharmaceutical industry
MTO: Paint industry
Paraffin wax: Candle manufacturers
Toluene: Explosives manufacturers.
Sulphur: Sulphuric Acid manufacturers and sugar industry.

09/MBA/28 Page 19

12. SUPERIOR KEROSINE OIL: Kerosene‘s are distillate fractions of crude oil in the
boiling range of 150-250°C. They are treated mainly for reducing aromatic content to
increase their smoke point (height of a smokeless flame) and hydro fining to reduce
sulphur content and to improve odour, colour & burning qualities (char value. Kerosene
is used as a domestic fuel for heating / lighting and also for manufacture of
insecticides/herbicides/fungicides to control pest, weeds and fungi. Since kerosene is
less volatile than gasoline, increase in its evaporation rate in domestic burners is
achieved by increasing surface area of the oil to be burned and by increasing its
temperature. The two types of burners which achieve this fall into two categories namely
vaporisers & atomisers. The Indian Standard governing the properties of kerosene are IS
1459:1974 (2nd Rev).

13. CRUDE OIL: Crude oil - as petroleum directly out of the ground is called - is a
remarkably varied substance, both in its use and composition. Crude oil is formed from
the preserved remains of prehistoric zooplankton and algae, which have been settled to
the sea (or lake) bottom in large quantities under anoxic conditions. It was formed over
millions of years from the remains of tiny aquatic plants and animals that lived in
ancient seas due to compression and heating of ancient organic materials over geological
time. The oldest oil-bearing rocks date back to more than 600 million years, the
youngest being as old as about 1 million years. Crude oil
from an area in which the crude oil's molecular characteristics have been determined
and the oil has been classified are used as pricing references throughout the world. These
references are known as Crude oil benchmarks .After considering availability of
indigenous crude oil, balance crude oil is required to be imported. Indian Oil sources its
crude oil requirement from Far East, Gulf region, Mediterranean, West Africa and Latin
American sources.

09/MBA/28 Page 20

IOCL SERVICES
Indian Oil provides a wide range of marketing services and consultancy in fuel handling,
distribution, storage and fuel/lube technical services. With a formidable bank of technical and
engineering talent, Indian Oil is fully equipped to handle small to large-scale infrastructural
projects in the petroleum downstream sector anywhere in the country. Our project teams have
independently or jointly as a consortium, have set up depots, terminals, pipelines, aviation fuel
stations, filling plants, LPG bottling plants, amongst others. Indian Oil‘s fuel management
system to bulk customers offer customized solutions that deliver least cost supplies keeping in
mind usage patterns and inventory levels. A wide network of lubricant and fuel testing
laboratories are available at major installations which is further backed by sector-wise expertise
in the core sectors of power, steel, fertilizer, gas plants, textile mills, etc. Cutting edge systems
and processes are designed around one simple belief-to provide valuable customers with an
unbeatable edge in their business. Indian Oil‘s supply and distribution network is strategically
located across the country linked through a customized supply chain system backed by front
offices located in conceivably every single town of consequence.

The wide network of services offered by Indian Oil, Marketing Division is illustrated in this
section, which includes; commercial/reticulated LPG; total fuel management/ consumer pumps;
Indian Oil Aviation Service; LPG Business (non-fuel alliances); loyalty programs; retail business
(non-fuel alliances) and SERVO technical services.

09/MBA/28 Page 21

1. REFINING 2.PIPELINES

3 .MARKETING 4.TRAINING

5. RESERCH AND DEVELOPMENT

09/MBA/28 Page 22

IOCL Brands

09/MBA/28 Page 23

SWOT ANALYSIS FOR IOCL

External Environment

Opportunity:
The IOCL has much opportunity in the present market conditions. This is because the petroleum
products have become a need for everyone and still Contains a lot of scope for customization.
The various opportunities are listed below.

Since the company has the maximum number of outlets and also the maximum number
of refineries in India, it can very easily go for extension at any point of time, and can
introduce any new products, which will get support from its huge market network.
The company can make the buying process easier for the customers, by implying many
more schemes in the range of XTRAPOWER Fleet Card.
The company can think over the issue to build its own pipelines, so that it will be an
independent player and it will also support its aviation fuel supply.
Company has a great scope in E&P. It is already involved in E&P but only in a very
limited scale.

Threats:
Since the company is the market leader in the field, so have maximum threats from the other
players and many other issues. The lists of threats are given below.

The foreign players with more advanced technology are the biggest threat for the
company.
The crude oil supply is also a big issue in front of the company, because the company
cannot fix its price and so, some time had operated in loss also It is the biggest problem
because the maximum part of their crude is been imported.
In future the market will welcome more private players, which will eat up its market
share.
If the Govt. Policies allow the private players to set their own price, the private player can
seriously harm the market share of IOC

09/MBA/28 Page 24

Internal Environment:

Strengths:
IOC controls 10 refineries, by virtue of which it has a total share of around40% of India‘s
overall refining capacity. IOC has also acquired equity stakes in CPCL and BRPL, and in
2001, these refineries became subsidiaries of IOC.
58% of IOC‘s refining capacity is located in the Northern and Western regions, which are
high demand and high growth area.
Although its refineries are located the interior of the country and not near the major
ports IOC has a very strong distribution network by virtue of having a share of 48% in
the country‘s product pipelines. The total capacity of these product pipelines is 49.79
MMT.
IOC also acquired management control of the marketing company IBP, thereby
strengthening its position in these activities. It also has a dominant share in all segments
in terms marketing infrastructure. Its network includes 19830 retail outlets, 8000 LPG
distributors, and 6492 kerosene/LDO dealers.
By virtue of entering into extensive joint venture agreements, and of its own initiative as
well, the company has a presence in various other related activities such as petroleum
storage, pipelines, lube additives, exploration, Petrocmicalhes, gas, training and
consultancy, etc.
The company has already entered overseas markets such as Sri Lanka, Maldives, and
Oman and is presently considering entering Turkey through a JV. The company is in
talks with Caliak of Turkey to set up a 10 million TPA grass root refinery with an
investment of $2 billion and establish retail business. IOC is also weighing the possibility
of entering Indonesia.IOC has also started exploring the overseas markets for increasing
its scope of operations. Its interests include downstream activities in Sri Lanka,
Maldives, Oman, and Nepal; interest in the lubes business in Maldives, Dubai,
Bangladesh, Sri Lanka, etc; among others

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

The list is given below.

The major weakness for the company is the R&D. The company starts working on it.
The petrochemical product development technology is another weakness for the
company.
The technological drawback, as compared to some major foreign player is another
weakness for the company

09/MBA/28 Page 25

LOYALTY PROGRAMS- AN INTRODUCTION
Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal
buying behavior — behavior which is potentially of benefit to the firm.

Earning customer loyalty goes beyond gaining customer satisfaction. Loyal Customers
evangelize the brand by sharing their satisfactory experience with their friends and colleagues. A
great product or service is the starting point for customer loyalty. Great marketers architect
loyalty programs from day one.

Loyalty programs are initiated by businesses with two main goals. The primary goal for most
loyalty programs is the acquisition of information relating to their customers' spending habits,
while the secondary goal is to actively cultivate loyalty amongst customers to ensure they
continue patronizing the business. While some companies do reverse these priorities, the above
hierarchy holds true for most.

Loyalty programs may offer benefits in a number of different ways. Many loyalty programs offer
a sustained discount (such as 10%) for a period of time - perhaps a year, perhaps for the life of
the business. Others offer a discount once certain criteria have been met — for example, a 20%
discount on a single purchase once a customer has spent Rs 2000 at the business. Still others
offer points which may then be redeemed for products which may or may not be directly related
to the business.

Loyalty cards are the most common form of loyalty programs found throughout the world today.
Some of the first loyalty programs were instituted by airlines in the 1970s in the form of frequent
flyer miles. In these loyalty programs, one accrues points by flying on the airline and then
'cashes in' the points in exchange for tickets, upgrades, or even third-party benefits. In the past
decade, many nonairline businesses have combined their own loyalty programs with those of the
airlines, offering frequent flyer miles in exchange for everything from telephone usage to
purchasing gasoline.

Loyalty programs have gained in popularity immensely in the past fifteen years, in no small part
due to the development of a culture of entitlement, in which consumers feel that they deserve
special treatment. Businesses have capitalized on this when designing their loyalty programs,
often offering benefits that cost little, but carry with them an assumed prestige, such as access to
faster-moving lines or special parking spaces.

Ultimately, the success of loyalty programs depends on how well the business uses the data it
gathers to further refine its policies and loyalty programs. Many businesses find little profit in
the use of loyalty programs, while others, such as eBay, attribute much of their financial success
to a well-executed use of such programs.

09/MBA/28 Page 26

Loyalty Programs an Integral Part

The immense competition will make loyalty programs an integral program of the day-to-day
functioning of petro-retailing. Of course, right now many such loyalty programs are being run by
the petro-retailers like Smart Fleet (BPCL), Xtra Power (IOCL), Drive track (HPCL), and Petro
card (BPCL). However, these programs are mainly focused at the bulk consumers and the small
consumers are left unnoticed more or less. But in future, there won‘t be such differentiation and
loyalty programs will be there for every segment of consumers.

Customer Relationship Management and Loyalty program

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

Company activities related to developing and retaining customers. It is a blend of internal
business processes: sales, marketing and customer support with technology and data capturing
techniques. Customer Relationship Management is all about building long-term business
relationships with customers.

Most CRM initiatives begin with a strategic need to manage the process of handling customer
related information more effectively. For beginners it could simply mean better lead
management capabilities or sales pipeline visibility. However, as organizations mature in their
CRM initiatives, they begin to look at CRM as tool to acquire strategic differentiators. Despite
the immense benefits that the CRM solutions can deliver, they are not entirely without their
share of problems.

Loyal customers are more profitable. Any company will like its mindshare status to improve
from being a suspect to being an advocate. Company has to invest in terms of its product and
service offerings to its customers. It has to innovate and meet the very needs of its clients/
customers so that they remain as advocates on the loyalty curve.

An important facet of CRM is ―customer selectivity‖. As several research studies have shown not
all customers are equally profitable (In fact in some cases 80% of the sales come through 20% of
the customers). The company must therefore be selective and tailor its program and marketing
efforts by segmenting and selecting appropriate customers for individual marketing programs.
In some cases, it could even lead to ―outsourcing of some customers‖ so that a company better
utilize its resources on those customers it can serve better and create mutual value.

09/MBA/28 Page 27

With growing competition in the petro-retailing sector, today‘s consumer is becoming more and
more demanding. The emergence of new psychographic segments in petro retail market bears
the testimony to this fact. A closer look at these segments tells us what exactly a consumer is
looking for whenever he goes to a fuel station to purchase fuel. He looks for-

Quality & Quantity assurance
Quick filling and efficient forecourt service
Rewarding loyalty
Premium fuels
Cashless transactions
Non - fuel services.

The immense competition will make loyalty programs an integral program of the day-to-day
functioning of petro-retailing. Of course, right now many such loyalty programs are being run by
the petro-retailers like:

Smart Fleet (BPCL) Petro card (BPCL)

Xtra reward (IOCL) Xtra Power (IOCL)

Drive track (HPCL)

However, these programs are mainly focused at the bulk consumers and the small consumers
are left unnoticed more or less. But in future, there won‘t be such differentiation and loyalty
programs will be there for every segment of consumers.

09/MBA/28 Page 28

LOYALTY PROGRAM AT INDIAN OIL
Indian Oil‘s loyalty programs are designed exclusively to benefit customers who have been
patronizing the brand for over four decades.

XTRAREWARDS Loyalty Program: Indian Oil XTRAREWARDS is India's first on-line
rewards program that seeks to inculcate the habit of redeeming points. The loyalty program
rewards customers paying by cash, credit and debit cards.

Each transaction is confirmed on-line through a charge slip and customers can earn points on
fuel/lube purchases at participating Indian Oil Retail Outlets. Additional points can also be
earned outside the Indian Oil network, covering prominent FMCG, Food, Automobile, Travel,
Entertainment, Apparel and Hospitality sectors.

XTRAREWARDS is currently active in Mumbai, Ahmadabad, Bangalore, Mysore, Coimbatore
and Chennai. It will be shortly available in other markets like Delhi. Apart from redeeming the
accumulated points instantly on fuel / SERVO Lubes at participating Retail Outlets, the card
holder can also redeem the points to get some exciting gift items from a catalogue.

The redemption on gifts can be registered either from the participating Retail Outlets or from
the comfortable confines of one's home through the 24x7 IVRS Help Line (022-2880 9030).

09/MBA/28 Page 29

XTRAPOWER Fleet Card program

The XTRAPOWER Fleet Card program is a complete smart card-based fleet management
solution for fleet operators and Corporate for cashless purchase of fuel & lubes from designated
retail outlets of Indian Oil through flexible pre-paid and credit facilities.

The fleet card program also offers an exciting rewards program and unique benefits like
personal accident insurance cover and vehicle tracking facilities. In just under two years of its
launch, Indian Oil‘s XTRAPOWER Fleet Card has emerged as the largest fleet card in the
country with the widest retail outlet coverage.

Any business entity owning or operating a vehicle fleet can become a member of the
XTRAPOWER fleet card program at a nominal annual charge. Each fleet owner is issued a Fleet
Control Card and vehicle-specific Fleet Cards for every vehicle enrolled under the program.

For enhanced security, the fleet card transactions are authorized through unique Personal
Identification Number (PIN). Moreover, the card can help track each vehicle's movement across
remote corners of the country leading to an improvement in vehicle utilization and route
compliance. XTRAPOWER is also backed by Indian Oil‘s vast infrastructure network and web-
based support services.

XTRAPOWER is one-of-a-kind fleet card program of Indian Oil, which gives you XTRA
convenience, XTRA security and XTRA opportunity to earn Truckload of rewards. It is a tailor-
made program for Fleet Owners, Operators & Corporate as well. Xtra Power Fleet Card program
is a step of IOC towards building loyalty among the existing customers. Loyalty program works
only when the customer is emotionally attached to the brand.

Positioning of the loyalty program is very critical so that these benefits do not appear to be a just
discount under the garb of loyalty this greatly affects the customer retailer relationship and
greatly reducing the program to a pure commercial transaction where the customer constantly
looks for deals.

We need to enroll the right customers. We can recognize the highest value Customers to
recognize and reward their value to our organization, we can Cultivate high potential customers
who currently split their purchases between us and our competitors or reach out to those most
at risk of churning. Knowing which customer groups are most important to us allows crafting
recognition and rewarding strategy that piques their interest.

Customers should be involved in the program by constant communication to make them
understand what is in for them. Comprehensive surveys should be conducted to find out what
should be the ideal way to reward the loyal customers and retain them for the life time. Activities
like checking point balances online, responding to targeted offers, using kiosks, bidding on
auction items, entering sweepstakes and so on. Such participation is a sure sign of increasing
value to the customers.

09/MBA/28 Page 30

BENEFITS
Better credit proposition.
Higher value of reward points.
Attractive rewards program.
Personal accident insurance and medi-claim cover for the card member, drivers, co-
drivers & helpers.
Lost card liability cover.
Online PIN unblocking.
Flexible cash loading options - Manual Reload & CCMS Reload (Remote loading of cards
by depositing lump sum cash at one place) or CCMS reload thru' cheque payment at
select HDFC branch.
Card-insert based vehicle-tracking facility thru' website (Offline tracking free, Online
tracking at a nominal charge of Rs.2/-).The online tracking details are immediately made
available to the card members on XTRAPOWER website.
Special discounts from our alliance partners (currently available on JK Tyres only)
Round the clock Customer Helpline Number 1800 425 55 99 (Toll Free) or STD no. 044-
6551498.

XTRA Features:

INSURANCE SCHEME - XTRAPOWER FLEET CARD PROGRAM

BACKGROUND

Insurance scheme for XTRAPOWER FLEET CARD PROGRAM has been modified which will
remain effective till 5th Apr '10 (23:59Hrs).

Insurance Service Provider : The Oriental Insurance Co.Ltd. as an added feature you can avail
MEDICAL INSURANCE under our fleet card program.

INSURANCE SCHEME

Insurance features of XTRAPOWER FLEET CARD include following : (Sum insured for Fleet
Owner, Driver, Co-Driver and Helper-cum-cleaner)

Personal Accident Insurance Death (100% sum insured for all - (a) Owner :
Rs.1,00,000/- per card, max upto Rs.20,00,000/-, (b) Driver : 50,000/-, (c) Co-Driver :
25,000/-, (d) Helper-cum-cleaner : Rs.25,000/-)

Total Permanent Disability(TPD) (100% sum insured) (TPD is defined as per IRDA
guideline) - (a) Owner : Rs.1,00,000/- per card, max upto Rs.20,00,000/-, (b) Driver :
50,000/-, (c) Co-Driver : 25,000/-, (d) Helper-cum-cleaner : Rs.25,000/-)

09/MBA/28 Page 31

Partial Permanent Disability(PPD) (PPD is defined as per IRDA guideline) - (a) Owner :
Sum insured multiplied by the percentage of PPD as certified by the Doctor (e.g.
Rs.1,00,000/- per card upto max 20 cards (e.g.Rs.20,00,000/-) x % of PPD), (b) Driver :
Rs.50,000/- x % of PPD), (c) Co-Driver : Sum insured multiplied by the percentage of
PPD as certified by the Doctor (e.g. Rs.25,000/- x % of PPD), (d) Helper-cum-cleaner :
Rs.25,000/- x % of PPD).

Lost Card Liability Insurance (Maximum upto Rs.16,000/- per card subjected to misuse
of the card within 24 hours from lodging the loss complain with XTRAPOWER 24 HOUR
CUSTOMER HELPLINE)

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

CLAIM ENTITLEMENT

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

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

Prevailing IRDA guidelines would be applicable for all insurance claims.

Insurance claims under XTRAPOWER FLEET CARD PROGRAM are admissible for vehicular
road accident only.

While claims are admissible for Driver, Co-driver and Helper-cum-cleaner towards card
enrolled against respective vehicle involved in the accident, the same for Owner would be
admissible for other accidents as well.

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

Above Insurance benefits are offered to the members of XTRAPOWER FLEET CARD
PROGRAM at FREE of cost.

09/MBA/28 Page 32

Easy Fuel gift card

The XTRAPOWER Easy Fuel gift card facilitates corporate in paperless gifting of fuels and
lubricants to their employees, customers and other stakeholders, that too from select Indian Oil
retail outlets numbering over 6,000. As India's first smart card-based fuel voucher, it offers
amazing convenience and security among the gifting options available today, and comes with
the option of multiple recharging, or topping-up, and hence ideally suited for reimbursement,
repeat incentivisation, etc. Corporate members can log into the dedicate website for allocating
requisite funds and for topping up. All transaction details can be viewed on the website, thereby
eliminating the need for maintaining separate MIS for reimbursements. A 24x7 dedicated toll-
free helpline (1800 4255599) caters to customer queries.

09/MBA/28 Page 33

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 IOCL BPCL HP
COMPANIES

BENEFITS
HIGHEST VALUE .4% .3% .3%
REWARD POINT ON
DISEL AND PETROL
CASH LOADING MANUAL AND BY MANUAL AND BY MANUAL AND BY
CENTAL CASH CENTAL CASH CENTAL CASH
MANAGEMENT(FREE) MANAGEMENT(FREE) MANAGEMENT(FREE)
ONLINE PIN YES(FREE OF COST) YES(FREE OF COST) YES(FREE OF COST)
UNLOCKING
INSTANT FUEL YES YES YES
REDEMPTION
INSURANCE FOR Rs.1,00,000/- per NO ANY INSURANCE NO ANY INSURANCE
OWNER card, max up to FOR OWNER FOR OWNER
Rs.20,00,000/-
INSURANCE FOR Driver : 50,000/- NO ANY INSURANCE Free accidental death
DRIVER AND Co-Driver : BENEFITS Insurance cover of Rs. 1
CLEANER Lakh for drivers and 1
25,000/-,Helper- Lakh for cleaners.
cum-cleaner :
Rs.25,000/-
MEDICAL (Rs.10, 000/- per card): NO ANY MEDICAL NO ANY MEDICAL
INSURANCE Owner: Rs.2500/- per INSURANCE INSURANCE
card subjected to
maximum of Rs.50,
000/-, Driver:
Rs.2500/-, Co-Driver:
Rs.2500/- and Helper-
cum-cleaner: Rs.2500/-
. *(Minimum claim
under medical
insurance MUST be
over Rs.500/-
LOST CARD Up to Rs 16000/per NO SUCH BENEFIT NO SUCH BENEFIT
LIABILITY car subjected to
INSURANCE
misuse 24 hrs after
lodging loss
complain to Xtra
power 24hrs help
line.

09/MBA/28 Page 34

NAME OF THE BPCL HP
COMPANIES
IOCL

BENEFITS
LOST CARD A replacement card A replacement card is A replacement card
LIABILITY is issue to the card issue to the card is issue to the card
holder after due holder after due holder after due
verification the pre verification the pre verification the pre
paid amount paid amount balance paid amount
balance of the lost of the lost card is balance of the lost
card is transferred transferred after card is transferred
with a fee of Rs 100 verification. after verification.
per card.
VEHICLE TRACKING Card-insert based Card-insert based Card-insert based
offline tracking at offline tracking at no offline tracking at
no extra cost. Card extra cost. Card no extra cost. At any
insert based online insert based online HP Fleet card outlet,
tracking at a tracking at a nominal the driver has to
nominal cost of cost. Vehicle tracking place the card on
Rs.2/- through sms (fee only the reader and enter
for blue card holder). his PIN Number.
This is regardless of
whether or not your
Driver fuels the
vehicle at the outlet.
Card insert based
online tracking at a
nominal cost.
SMART CARD YES YES YES
PREPAID CREDIT
MULTIPLE CREDIT (Currently, SundaramFinanceLtd ICICI BANK
PARTNER
Sundaram Finance
Ltd.) Citicorp Finance

IndusInd Bank

RELOADING YES YES YES
FACILITY
ENORLMENT FEE YES , RS 100 PRE YES ,RS 250 PER NA
AND RENWAL FEE CARD CARD
LOYALTY
VALUE
POINT
PER POINT 1 NA NA
PAISA

09/MBA/28 Page 35

NAME OF THE IOCL BPCL HP
COMPANIES

BENEFITS

REWARD FUEL AND YES YES YES
LUBE

MINIMUM POINT 80,000-1 year 9, 00, 000 - once in 25,000-at any
REQUIRED FOR
REDEMPTION from the date of year (for blue and point of time valid
transaction. silver) quarterly for up to 3 years.
gold and on demand
for platinum card
holder.
REDEMPTION YES YES YES
OPTION THROUGH
CRT MACHINE
24 HRS HEELPLINE YES YES YES
TYRE AND BATTERY On JK tyre per tyre NO SUCH BENEFIT NO SUCH BENEFIT
BENEFIT Rs 100 less and 5 %
off on Exide battery
SMS BENIFIT NO SUCH BENIFIT Free sms alerts for all NO SUCH
balance check and BENEFIT
vehicle tracking (fee
only for blue card
holder).

From this comparison it is clear that benefits provided by iocl is better than its competitor
inspite of this to get more customer the company can consider for benefits such as,

Free sms alert as provided by bpcl for balance check and vehicle tracking
Extra benefit scheme for customer with more transaction.
Multiple credit partner for customers
Redemption at any point of time with increased point validity from 1 year.
Fleet card vehicle for smaller vehicle.

09/MBA/28 Page 36

LIST OF SOME CUSTOMERS AND THEIR FEEDBACK
NAME OF LOCATIN OF TOTAL NO BUSINESS TYPE AND FEEDBACK
CUSTOMERS/ BUSINESS AND OF BUSINESS ROUTE
TRANSPORTING
AGENCY
MOBILE NO VEHICLES
/NUMBER
OF CARDS
SHYAM DURGAPUR 89/73 TRANSPORT/ POSITIVE
TRANSPORT(SHY 9434062255 SOUTH BENGAL
AM ISHRA)
MAA USHA MURSHIDABAD 8/4 TRANSPORT/ POSITIVE
TRAVLES(GAUTAM 9475679543 BHERUMPUR,
DHAR) ASANSOL,RAJBAND
H
ASHUTOSH RAJBANDH 36/34 TRANSPORT/ POSITIVE
GOURAI O343-2520389 JHARKHAND
WEST BENGAL
SUSHANT DURGAPUR 38/38 TRANSPORT/ POSITIVE
PODDAR(PODDAR 9434754952 SOUTH BENGAL
TRAVELES)

UNITED DURGAPUR 40/10 EARTH WORK POSITIVE
TRANSPORT 0343-2544855 (CORPORATE
CARD)

MALDA TRUCK MALDA 650/290 TRANSPORT/ POSITIVE
S AND O3512-266187 ALL OVER WEST
TANKERS BENGAL
OWNER(SOUMITRO
KUNDU)
GAGAN DURGAPUR 3/3 TRANSPORT/ POSITIVE
MONDAL 9434009331 NORTH BENGAL
VIVEK KUMAR DURGAPUR 7/7 TRANSPORT/ NEGATIVE
SHUKLA 9332132763 JHARKAHAND,ALL (BETTER TO
GIVE CASH THAN
OVER WEST USING CARD)
BENGAL
CARGO DURGAPUR 40/12 TRANSPORT/ POSITIVE
MOVERS(AMAL 9433640385 ALL OVER BENGAL
DEY)
MD ZAKHULA HOWRAH 14/6 TRANSPORT/ NEGATIVE
9434106365 SOUTH BENGAL (NO CLEAR IDEA
ABOUT THE
BENEFITS AND
NOT INTERESTD)
BALWANT KOLKATA 60/10 TRANSPORT/ POSITIVE
SINGH GREWAL 9433174935 ALL OVER BENGAL (DON’T TO KNOW
HOW USE
,PUNJAB,UP etc WANT HELP AND
VERY MUCH
INTERSTED)

09/MBA/28 Page 37

TRANSPORTING
AGENCY
MOBILE NO VEHICLES
/NUMBER
OF CARDS
BIRENDER ROY DURGAPUR 4/4 TARNSPORT/ POSITIVE
9748679867 SOUTH BENGAL (DON’T
HOW
KNOW
TO
OPERATE AND
WANT
DEMONSTRATIO
N)
MEENA KOLATA 20/4 TRANSPORT/ NEGATIVE
TRADING 9339872010 SOUTH BENGAL (VEHICLE
OPERATES IN
COMPANY(PANKA LOCAL AREAS
J SINGH) AND LESS
NUMBER OF
OUTLET)
EMARS DURGAPUR 8/8 FRESH FRUIT POSITIVE
ENTERPRISES 9830073640 SUPPLIER/KASHMI
(SUBRATO DASGUPTA) R,
HIMACHAL
PRADESH
TAPAN KUMAR DURGAPUR 5/3 TRANSPORT/MALDA POSITIVE
NANDAN 9434663019 , SILIGURI.
SUKHENDU DURGAPUR 4/4 TRASPORT/ POSITIVE
DAWN 943436359 BANKURA, MALDA.
BADAL SAHANI BANKURA/ 3/3 TRANSPORT/ POSITIVE
9434360359 PURULIA,
BURDWAN.
UNIT KOLKATA 80/(NOT TRANSPORT/ POSITIVE
TRANSPORT 9830345678 SPECIFIED) ALL OVER WEST (DON’T KNOW
HOW TO USE)
(PARGAT SINGH) BENGAL,NORTH
INDIA.
BINOY KOLKATA 15/0 TRANSPORT/ POSITIVE
TRADING AND 9337919319 ORRISA, (INTERSTED AND
WANT TO USE
TRANSPOR CHATTISGARH. CARD AND ALSO
(BINOY KUMAR WANT TO KNOW
AGRWAL) ITS OPERATION)
SGM DURGAPUR 15/15 TRANSPORT/ POSITIVE
TRANSWAYS 9434006156 ORRISA,
(ASHOK AGRWAL) CHATTISGARH
KRISHNA SAHA ASANSOL 4/4 TRANSPORT/ POSITIVE
9434035999 SOUTH BENGAL
DEBABRATA MURSHIDABAD 22/6 TRANSPORT/ POSITIVE
BHAGAT 9434000371 ASANSOL, SILIGURI,
KOLAKATA.

09/MBA/28 Page 38

TRANSPORTING
AGENCY
MOBILE NO VEHICLES
/NUMBER
OF CARDS
JAFAR ALI
MURSHIDABAD 2/1 WODDWN WORKS/ POSITIVE
9732978565 GUWAHATI.

ABDUL BARI MURSHIDABAD 17/10 TRANSPORT/ POSITIVE
9732954469 BENGAL,BIHAR,UP,
HARYANA.
ALOKENDU MURSHIDABAD 30/30 TRANSPORT/ POSITIVE
ADHIKARI 9434315104 ALL OVER BENGAL
SUBRATO ASANSOL 3/3 MINI BUS POSITIVE
BHOWMIK 9332212987 OWNER/ASANSOL-
HARIPUR-JAMURIA

HAIDER ALI MURSHIDABAD 4/4 TRANSPORT/ POSITIVE
973262725 ASANSOL,
GUWAHATI,
KOLKATA
SIDHANSU
PRAMANIK MURSHIDABAD 2/2 TRANSPORT/ POSITIVE
KOLKATA, ANDHRA
PRADESH, ORRISA.

SUKHVINDER MURSHIDABAD 2/2
SINGH 9932255015 TRANSPORT/ POSITIVE
GUWAHATI, (DON’T KNOW
HOW TO USE
SILIGURI THE CARD
INTERSTED IN
USING)

ASANSOL 6/6 ASANSOL-
DURGAPUR DURGAPUR *CORPORATE DURGAPUR POSITIVE
DEVELOPMENT *CONTACT PERSON MR CARD

AUTORITY B DAS(ASSITAT
EXECUTIVE OFFICER)
CONTACT NO-
9434473178

09/MBA/28 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.

09/MBA/28 Page 40

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 XtraPremium Servo Unleaded Unleaded
Super Petrol lubricants petrol diesel
diesel

Maximum
Minimum

09/MBA/28 Page 41

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

diesel

Price

4. What is your margin for the following brands?

diesel

Price

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

………………………………………………………………………

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

a) YES.

b) NO.

C) SOMETIMES.

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

a) YES

b) NO

09/MBA/28 Page 42

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

a) Cash.

b) Credit/Debit Cards.

c) Xtra power fleet card

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

a) YES.

b) NO.

09/MBA/28 Page 43

DATA FROM RETAILERS:

Total percentage of fuel sold by Xtra power fleet card

0.35 32%
30%
0.3 28%

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 Xtra premium servo lubricant Uleaded petrol Unleaded disel
disel petrol

09/MBA/28 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 Xtra premium servo lubricant Uleaded petrol Unleaded disel
disel petrol

Percentage of sale through Xtra power fleet card

80.00%
72.50%
70.00%

60.00%

50.00%

40.00%

30.00% 27.50%

20.00%

10.00%

0.00%
sale through xtra power fleet sale without using card
card

09/MBA/28 Page 45

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

70%
65%

60%

50%

40%

30% 27%

20%

10% 8%

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%
10% no, 5%

0%
yes no

09/MBA/28 Page 46

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

70%

60%
60%

50%

40%

30% 28%

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% 13%
20%
10%
0%
yes no

09/MBA/28 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.

09/MBA/28 Page 48

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

a) Advertisement.

b) Newspapers.

c) Journal/Magazines.

d) IOCL Retail Outlets.

e) Others……………….

5. How many vehicles/trucks do you have?

…………………….

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

a) YES.

b) NO.

c) Partly satisfied.

7. Do you use your fleet card regularly?

a) YES.

b) NO.

c) Sometimes.

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

a) Better services to the card holders.

b) More attractive offers.

c) Others……………………………

09/MBA/28 Page 49

9. Do you redeem your Xtra points regularly?

a) YES.

b) NO.

c) Sometimes.

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

……………………………………………………………..

09/MBA/28 Page 50

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

0.1 6%

0
cash debit/credit card xtra poewer fleet card

09/MBA/28 Page 51

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
20%
0.2 17%

0.1 5%
3%
0

09/MBA/28 Page 52

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

09/MBA/28 Page 53

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%

10% 3%

0%
yes no sometimes

09/MBA/28 Page 54

FINDINGS

1. Most of the customers were very supporting and welcoming .They had Good will for IOC.
2. Customers who showed interest appreciated the offer provided and were eager to
continue talks with IOC. They were also wanted to know more about the program.
3. Some of the prospective customers were not aware of India Oil Xtra Power Fleet Card
Loyalty Program. Hence they were not interested. Also due to the increase in the oil
prices they were apprehensive a little bit.
4. Some of the customers facing technical difficulties while using the card since they are not
able to understand its operations clearly.
5. Some customers have no clear idea about its benefit and they are happy to use their old
traditional way of purchasing oil and lubricant.
6. Some of the customer considers it as very complex and the benefit is not so high.
7. Customers most of them are small transporter are not very keen for this program some
of them have purchase the card but the card remains as idle as they have very less
transaction and lack of information about the benefits.
8. Xtra power scheme is not available at all the retail outlet of Indian oil in so at a time it
creates problem.
9. The card swiping machines are not properly maintained at some places leading to many
customer complaints. Some of the machines are very old and they are need replacement
with the new one.
10. At some places pump attendants are also not interested in providing this service.
11. There are no pamphlets available at pumps, which could give a brief idea about the
loyalty program.
12. Pamphlet and booklets are in English; hence most of the people are not able to
understand.
13. There is no dedicated person for collecting the forms. So, there is a large backlog of
forms.
14. There is Lack of internet facility at some of the outlets and also problem with poor
network service.
15. Website of Xtra power (www.iocxtrapower.com) is not regularly updated.
16. There is no facility of sms for vehicle tracking and to know detail about existing balance
where other major oil producing company (BPCL) provides this service to their
customers.
17. Sundaram finance is the only partner for providing credit to the card owner.
18. There are no any special benefits for customers having larger transaction.
19. There is no any benefit for customers with small vehicle. 20. Corporate
customers are not very interested as there is no any special benefit for them.

09/MBA/28 Page 55

CONCLUSION
―...Customer loyalty comes in three phases. The first derives from location. The next phase is
meeting the needs of your customer profile. The third phase down is retailer's loyalty
programmes. Most consumers are multi-loyal...‖

The key to a successful business is a steady customer base. After all, successful businesses
typically see 80 percent of their business come from 20 percent of their customers.(PARETO
ANALYSIS).

Xtra power is a step of IOC towards building loyalty among the existing customers. Loyalty
program works only when the customer is emotionally attached to the brand.

The best way to keep customers loyal is to provide a good product or service that provides good
value for money. Branding alone will not make customers loyal, but back up a good product and
customer service with branding and loyalty will develop quicker.

Offers and loyalty schemes can increase loyalty, but they are no substitute for (and will not work
without) a good product, good customer service, and friendly customer relationships.

We need to enroll the right customers. We can recognize the highest value customers to
recognize and reward their value to our organization, we can cultivate high potential customers
who currently split their purchases between us and our competitors or reach out to those most
at risk of churning. Knowing which customer groups are most important to us allows crafting
recognition and rewarding strategy that piques their interest.

Customers should be involved in the program by constant communication to make them
understand what is in for them. Comprehensive surveys should be conducted to find out what
should be the ideal way to reward the loyal customers and retain them for the lifetime. Activities
like checking point balances online, responding to targeted offers, using kiosks, bidding on
auction items, entering sweepstakes and so on. Such participation is a sure sign of increasing
value to the customers

09/MBA/28 Page 56

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.

09/MBA/28 Page 57

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