Original Radhi Report

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GAUHATI UNIVERSITY

A Training Report OnINDIAN OIL CORPORATION LIMITED

Submitted in partial fulfillment of the requirements for the award of

MASTER OF BUSINESS ADMINISTRATION

(Industry Integrated)

TO

GAUHATI UNIVERSITY

By

Ms.RADHIKA.K.P

Roll No.1001-0218

Under the Guidance of

Prof .B. VENKATESWARAN Mr. N.SELVARAJ

HEAD (ACADEMICS) BRANCH HEAD

RAI BUSINESS SCHOOL, CHENNAI STANDARD CHARTERED SECURITIES

(INDIA) Ltd.

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CERTIFICATE

This is to certify that the Training Report has been submitted in

Partial fulfillment of requirements for degree of


(Industry Integrated)

TO

GAUHATI UNIVERSITY

By

Radhika.k.p

Roll.No.10010216

Under the supervision and guidance of prof.B.venkateshwaran, and that

no part of this report has been submitted for the award of any other

degree/diploma/fellowship or similar title prizes and that the work has

not been published in any scientific and other magazines.

Prof .B. Venkateshwaran

Head (Academics)

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CERTIFICATE OF THE FACULTY GUIDE

This is to certify that the training Report on STANDARD CHARTERED

SECURITIES (INDIA) Ltd is completed under my guidance and supervision. It

is submitted in partial fulfillment of the Master Of Business Administration

(Industry Integrated) to Gauhati universityby Ms.Radhika.k.p(Roll No 1001-

0216)and this has not formed a basis for the award of any degree, diploma or

fellowship by any other institutes or universities.

Mr.B.Venk

ateshwaran

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STUDENTS DECLARATION

STUDENTS DECLARATION

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I hereby declare that the Training report conducted at

INDIAN OIL CORPORATION LIMITED

Under the guidance

Of

Prof .B. VENKATESWARAN

HEAD (ACADEMICS)

RAI BUSINESS SCHOOL, CHENNAI

Submitted in partial fulfillment of the requirements for the Degree of


TO

GAUHATI UNIVERSITY

Is my original work and the same has not been submitted for the award of any other

degree /diploma/fellowship or other similar titles or prizes.

Place: Chennai Ms.RADHIKA.K.P

Date: Roll No.1001-0218

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CERTIFICATE OF THE ORGANIZATION

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ACKNOWLEDGEMENT

ACKNOWLEDGEMENT

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I take immense pleasure in thanking Lakshminarayanan, training officer,

NIAM for having permitted me to carry out this project work.

I wish to express my deep sense of gratitude to my Internal Guide,

prof.B.Venkateshwaran for his able guidance and useful suggestions, which

helped me in completing the project work, in time.

Needless to mention that Mrs. Beatrice AntoPriya, Asst.manager,

xtrarewards programme, who had been a source of inspiration and for his timely

guidance in the conduct of our project work.

Finally, yet importantly, I would like to express my heartfelt thanks to my

beloved parents for their blessings, my friends/classmates for their help and wishes

for the successful completion of this project.

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CONTENTS

CONTENTS

TOPIC PAGE NO

CHAPTER 1 INTRODUCTION

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1.1 IOCL INTRODUCTION 12 -13

1.2 VISION &MISSION 14

1.3OBJECTIVES 15-18

1.4OFFICES 19-20

1.5ORIGIN AND DEVELOPMENT OF INDUSTRY 21

1.6IOCL PRODUCTS 22-27

1.7IOCL SERVICES 28

CHAPTER 2 ABOUT THE TRAINING PROGRAMME

2.1 OBJECTIVES OF TRAINING 29

2.2 SCOPE OF THE TRAIN 30

2.3 LOYALTY PROGRAMME 31

2.4 XTRAREWARD PROGRAMME 32-33

2.5 PROCESS OF XTRA REWARD PROGRAMME 34

2.6 BENEFITS 36

CHAPTER 3 DISCUSSION ON TRAINING

3.1RESEARCH METHODOLOGY 37-38

3.2 QUESTIONAIRE 39

3.3DATA FROM CUSTOMERS 40-43

3.4 FINDINGS 44

3.5 RESULTS AND ANALYSIS 45

3.6 RECOMMANDATIONS 46-47

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CHAPTER 4 SUMMARY AND CONCLUSION

4.1 SWOT ANALYSIS 48-51

4.2 LEARNING EXPERIENCE 52

4.3 CONCLUSION 53

BIBILIOGRAPHY 54

1.1IOCL- INTRODUCTION

Indian Oil is India's flagship national oil company with business interests straddling

the entire hydrocarbon value chain from refining, pipeline transportation and

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marketing of petroleum products to exploration & production of crude oil & gas,

marketing of natural gas and petrochemicals. It is the leading Indian corporate in

theFortune 'Global 500' listing, ranked at the 125th position in the year 2010.

With over 34,000-strong workforce, Indian Oil has been helping to meet Indias

energy demands for over half a century. With a corporate vision to be the Energy of

India, Indian Oil closed the year 2009-10 with a sales turnover of Rs. 271,074 crore

and profit of Rs. 10,221 crore. At Indian Oil, operations are strategically structured

along business verticals - Refineries, Pipelines, Marketing, R&D Centre and

Business Development E&P, Petrochemicals and Natural Gas. To achieve the next

level of growth, Indian Oil is currently forging ahead on a well laid-out road map

through vertical integration upstream into oil exploration & production (E&P) and

downstream into petrochemicals and diversification into natural gas marketing and

alternative energy, besides globalization of its downstream operations. Having set up

subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates (UAE), Indian Oil

is simultaneously scouting for new business opportunities in the energy markets of

Asia and Africa.

1.2OVERVIEW OF COMPANY

Indian Oil is India's flagship national oil company with business interests straddling

the entire hydrocarbon value chain from refining, pipeline transportation and

marketing of petroleum products to exploration & production of crude oil & gas,

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market share, 34.8% national refining capacity and 71% downstream sector

pipelines capacity in India.

The Indian Oil Group of companies owns and operates 10 of India's 20 refineries

with a combined refining capacity of 65.7 million metric tones per annum (MMTPA,

.i.e. 1.30 million barrels per day approx.). Indian Oil's cross-country network of

crude oil and product pipelines, spanning 10,899 km with a capacity of 75.26

MMTPA, is the largest in the country. With a throughput of 68.5 million tones, it

meets the vital energy needs of the consumers in an efficient, economical and

environment-friendly manner

It has a portfolio of powerful and much-loved energy brands that includes Indane

LPGGas, SERVOlubricantsXtraPremium petrol, XtraMile diesel, etc. Validating the

trust of 56.8 million households, Indane has earned the coveted status of 'Super

brand' in the year 2009.

1.3VISION

A major diversified, transnational, integrated energy company, with national

leadership and a strong environment conscience, playing a national role in oil

security & public distribution.

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MISSION

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.

1.4 ObjectivesTo serve the national interests in oil and related sectors in accordance and

consistent with Government policies.

To ensure maintenance of continuous and smooth supplies of petroleum

products by way of crude oil refining, transportation and marketing activities

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and to provide appropriate assistance to consumers to conserve and use

petroleum products efficiently.

To enhance the country's self-sufficiency in crude oil refining and build

expertise in lying of crude oil and petroleum product pipelines.

To further enhance marketing infrastructure and reseller network for

providing assured service to customers throughout the country.

To create a strong research & development base in refinery processes,

product formulations, pipeline transportation and alternative fuels with a

view to minimizing/eliminating imports and to have next generation

products.

To optimize utilization of refining capacity and maximize distillate yield and

gross refining margin.

To maximize utilization of the existing facilities for improving efficiency

and increasing productivity.

To minimize fuel consumption and hydrocarbon loss in refineries and stock

loss in marketing operations to effect energy conservation.

To earn a reasonable rate of return on investment.

To avail of all viable opportunities, both national and global, arising out of

the Government of Indias policy of liberalization and reforms.

To achieve higher growth through mergers, acquisitions, integration and

diversification by harnessing new business opportunities in oil exploration &

production, petrochemicals, natural gas and downstream opportunities

overseas.

To inculcate strong core values among the employees and continuously

update skill sets for full exploitation of the new business opportunities.

To develop operational synergies with subsidiaries and joint ventures and

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To manage and operate all facilities in an efficient manner so as to generate

adequate internal resources to meet revenue cost and requirements for project

investment, without budgetary support.

To develop long-term corporate plans to provide for adequate growth of the

Corporations business.

To reduce the cost of production of petroleum products by means of systematic

cost control measures and thereby sustain market leadership through cost

competitiveness.

To complete all planned projects within the scheduled time and approved cost.

1.5 Registered Office

Registered Office IndianOilBhavan,G-9,AliYavarJungMarg,Bandra (East), Mumbai -400 051

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Refineries Division

Head Office SCOPEComplex,Core-27,InstitutionalArea,

LodhiRoad,New Delhi -110003

Barauni Refinery P.O.BarauniRefinery,Dist. Begusarai -861 114 (Bihar)

Gujarat Refinery P.O.JawaharNagar,Dist. Vadodara -391 320(Gujarat)

Guwahati Refinery P.O.Noonmati,Guwahati-781020 (Assam)

Haldia Refinery P.O.HaldiaRefineryDist.Midnapur-721606(West Bengal)

Mathura Refinery P.O.MathuraRefinery,Mathura-281005(Uttar Pradesh)

Panipat Refinery P.O.PanipatRefinery,Panipat-132140(Haryana)

Bongaigaon Refinery P.O.Dhaligaon,Dist. Chirang, Assam - 783 385

Pipelines Division

Head Office A-1UdyogMarg,Sector-1, Noida-201301(Uttar Pradesh)

Northern Region P.O.PanipatRefineryPanipat -132 140 (Haryana)

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Assam Oil Division

Assam Oil Division P.O.Digboi-768171(Assam)

IBP Division

IBP Division 34-A,NirmalChandraStreet,Kolkata - 700 013

Group Companies

ChennaiPetroleumCorporation Ltd.

536,AnnaSalai,Teynampet, Chennai - 600 018

IndianOil (Mauritius) Ltd. MerRougePortLouisMaruritius

Lanka IOC PLC LankaIOCHeadOfficeLevel20,WestTower,WorldTradeCenter,EchelonSquare,Colombo-01,Sri Lanka.

IOC Middle East FZE LOB-12114,JebelAliFreeZoneP.O.Box: 261338

1.6 Origin and development of the industry

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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. 70823 crore and profits

of Rs. 7976.48 for the year 2010-11. Indian Oil is also the highest ranked Indian

company in the prestigious Fortune 'Global 500' listing, having moved up

11TH places to the105TH 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 tones 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 Pe t rochemica ls L imi ted (BRP) . Ind ian Oi l and i t s

su b s i d i a r i e s a cco u n t f o r a 4 7 % sh a r e i n t h e p e t r o l eu m p r o d u c t s

m ar ke t, 4 0% s ha re i n r ef in in g c ap ac it y a nd 6 7% d ow ns tr ea m

sec t o r p i p e l i n e s cap ac i t y i n I n d i a . Th e I n d i an O i l o p e r a t e s t h e

l a rg est an d t h e w i des t n e two rk o f f u el s t at i on s i n t h e 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 Oils 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.

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Subsequent ly , Indian Oi l Technologies Limi ted - a whol ly owned

s ub si di ar y, w as s et u p i n 2 00 3, w it h a v is io n t o m ar ke t t he

technologies developed a t Indian Oi l s Research and Development

Center . I t has been modeled on the R&D market ing arms of Royal

Du tch S h el l an d Br it i sh P e tr o leu m. I n di an O i l i s investing Rs.

43,393 crore (US $10.8 bil lion) during the per iod 2007-12 in

augmentation of refining and pipeline capacities, expansion of marketing

infrastructure and product quality up gradation as well as in integration and

diversification project.

1.7 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 Indias 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 Kendras (Rural). These brands are

widely recognized as pioneering brands in the petroleum retail segment. Indian

Oils 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.

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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.

2.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 areavailable both in bulk as well as in packed drums.

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

world and has been conferred the coveted Consumer Super brandstatus 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.

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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 and47.5 kg for commercial and industrial use

4. SERVO LUBRICANTS AND GREASES:

Indian Oils SERVO is the brand leader among lubricants and greases inIndia 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 Oils

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.

5.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;

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

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

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.

6.SUPERIOR KEROSINE OIL: Kerosenes are distillate fractions of

crude oil in the boiling range of 150-250C. 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.Keroseneis 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 vaporizers & atomisers.The

Indian Standard governing the properties of kerosene are IS1459:1974 (2nd

Rev).

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

- is are markably 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

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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 source.

8.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

30,000crore 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

9.SPECIAL PRODUCTS:

Other than the regular petroleum products like light distillates, middle

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

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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

1.8 INDIAN OIL SERVICES

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

fuel handling, distribution, storage and fuel/lube technical services. With a

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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 Oils 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 Oils 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 byIndianOil, 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.

2.1 OBJECTIVES OF THE PROJECT

The major objectives of the project are: -

1. To study the IOCL loyalty program in CHENNAI.

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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 REWARD Card

program.

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

recommendations to IOC to improve the implementation of XTRA REWARD

CARD loyalty program.

6. To analyze the loyalty card benefits of other marketing company.

7. To gain real experience of market that how corporate persons work. How we

have to behave, how to present you, how to make deals with clients etc.

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

demands.

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

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

11. To check our interpersonal skills.

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

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

orientation, organizational pressure, complexities in achieving desire result

14. To understand the day to day functioning of a department within the

organization

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

2.2 SCOPE O F T H E PR O J E C T :

Approach customers.

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Reactivate the existing inactive customers.

Enroll non-existing customers to increase activation rate.

Interaction with existing customers for feedback.

2.3 LOYALTY PROGRAMME

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

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

Loyalty programmes 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 cardholder 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 key ring cards (also known as key tags)

which serve asked 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 customers 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 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 day

continued patronizing the businesses. While some companies do reserves the

priorities,the above hierarchy holds true for most.

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2.4 XTRAREWARD CARD PROGRAMME

Th e XTRA REWARD CARD p r o g r am i s a co m p l e t e sm ar t c a r d -

bas ed fle et man ag eme nt 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. In just under two years of its

launch, Indian Oils XTRA REWARD 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

XTRA REWARD CARD program at a nominal annual charge.

Each card 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. Lo ya lt y

program works only when the customer is emotionally attached to the

brand. Posi t ioning of the loyal ty program is very cr i t ica l so that

these benef i t s do no t appear to be a jus t d i scoun t under the garb

of loya l ty th i s g rea t ly a f f ec t s the cus tomer r e ta i l e r r e l a t ionsh ipand great ly 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

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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 unders tand what is in for them.

Comprehensive surveys should be conducted to find out what should be

the ideal way to reward the lo yal cu stomers and re tain t hem for the

l ife t im e. Ac ti vi ti es l ik e c hec ki ng p oi nt b al an ce s o nl i ne ,

r espond ing to t a rge ted o f fe r s , us ing k iosks , b idd ing on auc t ion

i tems enter ing sweepstakes and so on. Such participation is a sure sign of

increasing value to the customers.

2.5 STUDY OF THE EXISTING SYSTEM:

PROCESS of XTRAREWARDS PROGRAMME:

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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. These points can be redeeming for

Fuel/lube or some exciting gifts. The customer earns 1 point for the purchase of Rs. 75 fuel .

The points are added in cumulative nature that is if a customer fills his tank with Rs. 50 petrol

the charge slip would show Zero points but the next time when the customer fills his tank with

Rs. 25the charge slip would show 1 point earned. On 334 point customer get Rs 100 worth of

fuel. One of the unique features of this card is that the company has ties ups with different

alliance partners. Once the customer swaps his card he receives a charge slip which states his

points earned and his total accumulated points. With this charge slip he also receives discount at

one of the alliance partners outlet.

2.6 BENEFITS

Better credit proposition.

Higher value of reward points.

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Attractive rewards program.

Lost card liability cover.

Special discounts from our alliance partners Round the clock Customer Helpline

Number 1800 22 8888 (Toll Free) or STD no. 022-28449733.Lost Card Liability

subjected to misuse of the card within 24 hours from lodging the loss complaint

with XTRA REWARD ( 24 HOUR CUSTOMER HELPLINE)

CLAIM ENTITLEMENT

Only ACTIVE CARDS as on date of lost/stolen/damaged you should notify us for

blocking the card through web site www.xtrarewards.com or IVRS Help line orSMS to 9223052305 . You should convey the card number, your unique identifier

and PIN. The SMS format is

.

Corporate should replace the date of birth with in the said SMS format. All the three

option will generate and convey a reference note to you.

3.1 DATA COLLECTION METHOD

Types of Data and Data Collection:

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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 Chennai. The name of the retail outlets of Indian oil from where these

data are collected are:

1. Kamadhenu Agencies,Alwarpet

2. Amman Agencies,Medavakkam

3. Sivagami Agencies,Egmore

4. Muneeswar Agencies,Velachery

5. Sri Balaji Agencies,Mylapore

6. Rajesh Agency,Santhome

7. Divine Enterprises,T-nagar

8. Thanya Enterprises,Annanagar

9. Vasanth Enterprises,Kottivakam

10.Alfa Gasoline,poonamalle

11.Raj Enterprises,Kilpauk

12.Sri Hanisha Service Station,Kottivakam

Secondary Data

Companys annual reports

Companys journal and magazines

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Companys website

Companys leaflets

Companys pamphlets

Products and sales report

Sampling plan

The sample size for retailer is 12 and that of customers is 200 of Chennai and

nearby region.The respondents are chosen through cluster sampling universe

elements are chosen in group rather than individually. Where as convenience

sampling is based on opportunism.

3.2 QUESTIONNAIRE FOR CUSTOMERS

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1. Name of the Customer;

2. Age; Mob;

3. Do you visit the IOCL fuel station regularly?

a) YES. b) NO. c) Sometimes

4. Do You Have XR Card? Card no;

5. If No, Reason?

____________________________________________________________________________________

6. If Yes, Complaints And Suggestions?

________________________________________________________________________________

7. From where did you come to know about the Xtra Reward card program?

a) Advertisement. b) Newspapers. c) Journal/Magazines. d) IOCL Retail Outlets

8. From Where You Bought The Card?

9. Do you use your Xtra Reward Card regularly? a) YES b) NO C) SOMETIMES

10. How would you rate the overall quality of the program?

Excellent Good Fair Poor

11. How would you rate the knowledge of the staff?

Excellent Good Fair Poor

12. How willing are you to recommend this card to others?

Willing unwilling

13. What improvements do you want in the Xtra Reward card loyalty program?

a) Better services to the card holders. b) More attractive offers. c) Others

3.3DATA FROM CUSTOMERS

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7. How willing are you to recommend this card to others?

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3.4 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 toknow more about the program.

3. Some of the prospective customers were not aware of Indian Oil

XTRAREWARDCARDLoyal tyProgram. Hence they were not

i n t e r e s t e d . A l s o d u e t o t h e i n c r e a s e i n t h e o i l p r i c e s t h e y

w e r e 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.

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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 reward card 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. There is no dedicated person for collecting the forms. So, there is a large

backlog of forms.

13. There is Lack of internet facility at some of the outlets and also problem

with poor network service.

14. There is no any benefit for customers with small vehicle.

15. Corporate customers are not very interested as there is no any special

benefit for them.

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3.5RESULTS AND ANALYSIS

ISSUES AND PROBLEMS

During the peek hours the server works slowly which makes customer

Waiting at the pump.

Normally customers dont get time to swipe the card.

Forms were not filled appropriately due to this card may not work properly.

The cost of the card is high and the returns is not that much attractive.

There are no any other benefits for RO attendees.

Magnetic strip gets damaged while swiping the card.

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3.6 RECOMANDATIONS

1. Most of the people are not aware regarding the XTRAREWARDS, 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. XTRAREWARD 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.

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10. All the pamphlets and booklets are in English, hence most of the customer

not able to understand. It should be in regional language (Tamil) for easy

understanding.

11. The website for XTRAREWARD needs regular update with more user friendly

access and details of news as well as upcoming offers.

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

13. 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.

14. XTRAREWARD program should be started at all other locations as early as

possible.

15. Facility for vehicle tracking and to know the detail of existing balance by

customer should also made available through sms service

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

WHAT CUSTOMERS SUGGEST?

The point system is not useful for the two wheelers or they want card

free or in low cost.

WHAT PUMP ATTENDERS SUGGEST?

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

cards.

When customer comes back to them with some problems, they dont

have any one to talk directly.

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4.1SWOT ANALYSIS OF IOCL

External envi ronment

Oppor tuni ty

IOCL has much oppor tuni ty in the present market condi t ions . This

i s be ca us e t he pe tro le um pro duc ts h av e b ec ome a n ee d fo r

everyone and s t i l l con tains a lo t o f scope fo r cus tomiza t ion . The

various opportunities are listed below. Since the company has the maximum

number of outlets and also the maximum number of refineries in Ind ia , it

c an v e r y ea s i l y g o f o r ex t en s i o n a t an y p o i n t o f t i m e , an d canint rod uce any new prod uc ts , 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

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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

Internal Environment: -

Strengths

IOC contro ls 10 ref iner ies , by v i r tue of which i t has a to ta l share

of aro und 40 % of In dia s ove ra l l refining capacity. IOC has also acquired

equity stakes in CPCL and BRPL, and in 2001, these refineries became

subsidiaries of IOC.58% of IOCs 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 Avery strong distribution network by virtue of having

a share of 48% in the countrys product pipelines. The total capacity of these

product pipelines is 49.79 MMT.IOC also acquired management control

o f t he ma rke ti ng co mp any I BP, t he reb y s tr en gth eni ng i ts

p o s i t i o n i n t h e s e a c t i v i t i e s . I t a l s o h a s a d o m i n a n t s h a

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r e i n a l l s e g m e n t s i n t e r m s m a r k e t i n g infrastructure. Its

network includes 19830 retail outlets, 8000 LPG distributors, and

6492kerosene/LDO dealers. By virtue of entering into extensive joint

venture agreements, and of i ts own ini t iat ive as well , the company

has a presence in various other related activities such as petroleum

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

consultancy, etc. The comp any has alre ady ent ered over sea s mark ets

such as Sri Lank a, Mald ives , a nd O man and is presently considering

entering Turkey through a JV. The company is in talks with Caliak of

Turkey tose t u p a 1 0 m i ll i on TP A g r as s r o ot r e fi n er y w i th an

investme nt of $2 bi l l ion and establ is hes retai l 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, SriLanka,

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.

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The technological drawback, as compared to some major foreign

player is another weakness for the company

4.2 LEARNING 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

officers I have gained knowledge about organizational 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 marketing, but this project has made me realize that to reach heights of success

and position you have to start from the beginning.

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4.3 CONCLUSIONS:

It was a great opportunity for us to work with Indian Oil Corporation limited and learn about

loyalty programmes and other organizational operations under the observation and guidance of

our officers. This report gives a brief review about the Indian oil loyalty programme and its

operational process. As per our 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.

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BIBILOGRAPHY

www.iocl.com

www.xtrarewards.com

www.wikipedia.com
http://www.iocl.com/http://www.xtrarewards.com/http://www.wikipedia.com/http://www.iocl.com/http://www.xtrarewards.com/http://www.wikipedia.com/

Documents

Original Radhi Report