Professional Documents
Culture Documents
Loyalty
Loyalty
PROJECT GUIDE
Submitted by:
I would like to thank the entire staff at IOCL for being so supportive in the 2
months training period.
At last I would like to thank all the respondents who took time out of their
busy schedule and helped me in carrying out the project.
EXECUTIVE SUMMARY
The market condition today has changed from sellers market to buyers market. Customers have a
lot of options to buy from so he does not have to remain loyal to one particular brand. In order to
build loyalty among customers and making them part of the company loyalty programs is part
and parcel of a comprehensive customer relationship strategy.
Customer loyalty program offers and aims beyond customer satisfaction and loyalty. They aim to
go go beyond market profits. They aim to own the customer for life.
Loyalty in the Indian fuel retail sector was pioneered by BPCL in the yr 1999 which was then
followed by HPCL, IOCL, and RELIANCE. With the fuel prices being market driven and not
government control the edge that the government PSU’s had is soon going to be a thing of the
past.
Indian oil also offers two kinds of loyalty programmes xtrarewards and XtraPower loyalty
programmes. Xtrarewards is basically for the general customers while XtraPower is a loyalty
programme for the fleet owners as well as users.
In this project report I have focused on the Branding and Sales Promotion of the XtraPower fleet
card and its variant XtraPower easy fuel card. Here I focus on how the current branding of the
fleet card is being done by the company, study its effectiveness.
The easy fuel card is currently positioned as a card for the corporate to gift fuel to their stake
holders. In this project report I try to find out through market research if its introduction for the
general public as a smart card based prepaid card for fuel refills will work?
Lastly I give recommendations for branding and sales promotion of the fleet card and give the
segment of the target audience for the easy fuel card
INDEX
1. INTRODUCTION
• VISION 1
• MISSION 1
• COMPANY PROFILE 2
• OBJECTIVES AND OBLIGATIONS 8
• IOCL PRODUCTS IN THE MARKET 10
1. LOYALTY PROGRAMS-
• AN INTRODUCTION 13
• LOYALTY IN PETROLEUM RETAIL 15
1. COMPETITORS ANALYSIS 17
2. SELF ANALYSIS 20
• XTRAREWARDS PROGRAMME 20
• XTRAPOWER FLEET CARD PROGRAMME 21
• XTRAPOWER EASY FUEL PROGRAM 26
1. QUESTIONNAIRE
• FOR FLEET CARD OWNERS 84
• FOR FUEL CARD OWNERS 86
Introduction to IOCL
VISION:
Mission
• To help enrich the quality of life of the community and preserve ecological
balance and heritage through a strong environment conscience.
Company profile
Strongly driven by the highest ever sales of petroleum products and boosted
by an increasing contribution from its Petrochemicals and Gas businesses,
the nation’s largest corporate and its highest ranked Fortune ‘Global 500’
company, Indian Oil Corporation Ltd. (IndianOil) reported an excellent
performance for the year 2009-10.
During the year 2009-10, in which the company celebrated its Golden
Jubilee, IndianOil’s ranking improved from 116th to 105th in the prestigious
Fortune Global 500 listing. To realign the company’s strategy in the light of
emerging challenges in the future, a new Vision was adopted by the
Corporation with an aspiration to emerge as the Energy of India.
Financial Performance
IndianOil’s gross turnover (inclusive of excise duty) for the year 2009-10
touched Rs. 2,71,074 crore. 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, IndianOil 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 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.
Core Performance
Marketing
IndianOil continued to maintain its dominance in the market clocking the
highest ever level of sales during the year 2009-10. Sales volume and
market shares improved in almost all the segments in marketing. In the high-
volume, high-competition direct consumer business, IndianOil continued to
be the leader with a market share of 65% and long-standing business ties
with core sector customers were further strengthened.
During the year, BS-IV quality petrol and diesel was launched in 13 cities.
Retail sales in MS (petrol) and HSD (diesel) registered a robust growth of
14% and 9.2% respectively, with the expansion of IndianOil’s countrywide
network which touched 18,643 petrol/diesel stations (retail outlets). This
includes commissioning of about 414 special-format Kisan Seva Kendra (KSK)
outlets in rural markets during the year, taking their total to 2947. The Rajiv
Gandhi Grameen LPG Vitarak scheme, a new concept to extend the
availability of LPG to the rural market was launched during the year.
IndianOil enrolled 42 lakh new LPG customers during the year 2009-10,
raising the total number of Indane households to nearly 574 lakh. Non-
domestic packed LPG sales recorded a 29% growth while bulk LPG sales
registered a 45% growth over the previous year. To cater to the growing
demand of Autogas (LPG), 50 Auto LPG Dispensing Stations were
commissioned during the year taking their tally to 273. During the year,
IndianOil's market share in the finished lubes segment grew by 1.4%. SERVO
lube network was also expanded to over 200 auto stockists, 74 industrial
stockists, 9 marine stockists and 27 CFAs. IndianOil's world class SERVO
lubricants were formally launched in Qatar and exports touched nine TMTs
with a growth of 34%. IndianOil continued to be the leader in the aviation
business with a market share of 62.9% among PSUs and several new
businesses of international airlines were garnered during the year.
Refineries
For the year 2009-10, IndianOil's refineries achieved over 100% capacity
utilization for the third consecutive year. As a result of sustained efforts in
energy conservation, IndianOil refineries clocked the lowest overall specific
energy consumption of 62 MBTU/BBL/NRGF (MBN) during the year as against
64 in 2008-09. Also the best distillate yield of 75.3 wt% was achieved during
the period. Panipat, Haldia, Mathura refineries commenced production of BS-
IV compliant petrol and diesel. Stream-sharing between group refineries
ensured better optimisation, capacity utilisation, value addition and
enhanced gross refining margins. Some of the projects completed during the
year are MS quality upgradation projects at Panipat and Mathura.
To widen the crude oil basket, several new grades were procured from
Australia, Kazakhstan, Algeria, Nigeria and Libya. Continuing with the direct
chartering of ships for petroleum imports, crude imported for IndianOil
touched 39 million tonnes in 2009-10. Four projects were commissioned for
flare gas recovery systems at Digboi, Haldia, Barauni and Gujarat refineries.
Pipelines
During the year, IndianOil's network of underground highways breached the
10,550 kilometre mark and registered the highest ever operational
throughput of 65 million tonnes. The Mathura-Delhi pipeline became the first
to supply BS-IV complaint petrol to the National Capital Region. The 290 km,
1.45 MMTPA capacity Chennai-Bengaluru product pipeline was also
commissioned during the period.
Projects
IndianOil is currently implementing projects with an approved cost of over Rs
47,000 crore. The major ones in the refining segment are - a 15 MMTPA
refinery at Paradip; residue upgradation and MS/HSD quality improvement at
Gujarat Refinery; MSQ upgradation projects at Barauni, Guwahati, Digboi,
Bongaigaon; DHDT at Bongaigaon Refinery and Panipat Refinery Expansion.
Some of the major pipeline expansion projects include the Paradip-
Sambalpur-Raipur-Ranchi pipeline (1,108 km) and the Dadri-Panipat R-LNG
line. The project related to the integrated crude oil handling facilities at
Paradip is also under way.
New Businesses
Besides consolidation in core areas, IndianOil took big strides in new
businesses during the year 2009-10.
Integration Initiatives
Exploration & Production (E&P)
During the year, IndianOil was awarded the Petroleum Exploration Licence
for one operatorship block by the Government of Gujarat under NELP VII
while two blocks have been provisionally awarded under NELP VIII.
IndianOil’s E&P portfolio comprises eight blocks in the NELP rounds and two
blocks in the CBM rounds with one farm-in block in the domestic sector. In
addition, the company had earlier bagged blocks in Yemen(Two),
Libya(Three), Iran(One) and Venezuela(One) with Farm-in blocks at
Gabon(One), Nigeria(One) and Timor-Leste(One).
Petrochemicals
During the year, IndianOil’s LAB (Linear Alkyl Benzene) sales touched 124
TMT and over 19 TMT was exported to six countries including Yemen,
Bangladesh, Korea, UAE and Australia. The PTA (Purified Terephthalic Acid)
business expanded to cater to all major domestic customers and clocked a
sales volume of 5,28,000 tonnes with a growth of over 30% from the
previous year. IndianOil's largest petrochemicals investment, at a cost of Rs
14,400 crore - the Naphtha Cracker and downstream polymer units at
Panipat - has been completed and the first batch of polymers dispatched.
Diversification Initiatives
Gas
IndianOil sold 1.89 million tonnes of R-LNG during 2009-10 and turnover
grew by 3.9% over the previous year. IndianOil’s JV – Green Gas has been
granted authorisation for City Gas Distribution(CGD) at Agra and has also
emerged the lowest bidder for CGD at Allahabad, Chandigarh and Ghaziabad.
A long term gas supply agreement has been signed with NTPC.
Bio-fuels
IndianOil has the largest captive plantation for bio-fuel production in India –
1012 hectares – which is underway in Chattisgarh and Madhya Pradesh,
generating rural employment of over 1.4 lakh mandays. IndianOil has also
entered into a partnership with Ruchi Soya Industries Ltd., a leading
manufacturer of high quality edible oils, to establish a model value chain for
the production of bio-diesel in the State of Uttar Pradesh.
• To avail of all viable opportunities, both national and global, arising out
of the Government of India’s policy of liberalization and reforms.
Financial Objectives
Obligations
SERVO
The SERVOXpress is a one-stop shop for quick, easy and convenient auto
care, providing customers with a refreshing experience. The SERVOXpress
stations have facilities for oil change, tyre/battery checkups, A/C service,
vacuum cleaning, perfuming, and upholstery cleaning, polishing and
lamination installation too.
Indane is today one of the largest packed-LPG brands in the world. Indian
Oil pioneered the launch of LPG in India in the 1970s and transformed the
lives of millions of people with the introduction of the clean, efficient and
safe cooking fuel. LPG also led to a substantial improvement in the health of
women in rural areas by replacing smoky and unhealthy chullahs with
Indane. It is today a fuel synonymous with safety, reliability and
convenience. Indian Oil’s Indane LPG gas is used in 40 million homes as
cooking fuel and commands over48% market share in India.
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.
Indian Oil Aviation services have a market share of 65% with a network of
101 Aviation Fuel Stations (AFS) meets complete aviation fuel requirement of
the Defense services.
AUTO GAS
XTRAPREMIUM PETROL
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.
There are number of such retail outlets planned across the country out of
which many have been commissioned with a complement if fuel and non-
fuel. Non-fueling offering through ‘Best-in-class’ alliance on exclusive
basis wherever possible communication, food, rest, healthcare, parking
vehicle care etc.
XTRA CARE
The launch of Xtra Care was the culmination of a series of plans in retail
design, product and service up gradation, capability training, automation,
loyalty programme, retail site management techniques all benchmark to
global standards. While the industry standard is to take samples on a
quarterly basis, Indian Oil has moved several steps ahead by introducing
fortnightly random sampling with specific importance given to Research
Octane Number (RON) sampling which is truly the definitive test for
quality and quantity. So far over 400 Xtra care retail outlets have been
set up, around 1500 Xtra Care retail outlets will be ready soon.
Loyalty programs are structured marketing efforts that reward, and therefore
encourage, loyal buying behavior — behavior which is potentially of benefit
to the firm.
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 non-airline 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.
For the petroleum retail sector in India, recent years have seen fundamental
changes in the way business is being done. The sector has moved away from
being government-controlled, a move that has brought new levels of
competitive threat and customer focus. With the going having gotten tough,
the smarter players have caught on early that the best way to do business is
to lock customers into a habit they can’t break. Loyalty programs are ‘in’
with each of the big players wooing wallet shares with loyalty card programs.
This report gives the growth of loyalty programs in the petroleum retail
sector in India, focusing on the evolution of the pioneering ‘PetroBonus’
program, the first and largest in India, which virtually created the market for
loyalty programs in the sector.
In the Indian Petroleum Sector Three companies – Indian Oil Corp. Ltd.
(IOCL), Bharat Petroleum Corp. Ltd. (BPCL), and Hindustan Petroleum Corp.
Ltd. (HPCL) dominate the petroleum retail sector in India with about 93%
market share between them. These players cater to a market of about 40
million vehicles (approx. 77% two wheelers, 13% cars in 2002) on Indian
roads with a retail network of over 15,000 outlets across the country. With
the deregulation of the sector in 1999, and the ongoing process of
divestment of the government stake in the business, the sector has seen
itself exposed to new market forces. The competitive threat is bigger. With
private players entering the fray, the pricing is increasingly market driven
and consumers are demanding more. Significantly, the existing players have
recognized the need for them to quickly evolve to be marketing driven,
service driven and, ultimately, relationship driven and have condensed
decades of evolution into a three- to four-year time frame. It has been a leap
from the Neolithic to Neo and many of the intervening stages have been
neatly bypassed.
Until 1999, the Indian oil and gas sector was state controlled under an
Administered Pricing Mechanism (APM) that controlled the production
pattern, capital expenditure, and pricing of petroleum products. All the
companies were state owned and private investment in the sector was not
allowed. Reacting to the growing need for boosting domestic production
levels, the Indian government has been steadily deregulating the sector.
COMPETITORS ANALYSIS
This was relationship marketing paying off in the best way possible, as
the economics of going direct started to become attractive in addition to the
immense marketing benefits. For instance, when BPCL launched its high
performance fuel ‘Speed’ in mid 2002, it could immediately make an offer to
specific segments of PetroBonus members who fit the Speed target audience
profile, offering them bonus PetroMiles for fueling up with Speed. The luxury
of having a database of members, an open channel to communicate with
them and an accepted and widely used program currency mechanism to
reward them proved an enormous advantage to BPCL in marketing many
products and services.
The situation today is that PetroBonus has reached a critical mass that
gives it immense power, with the road ahead seeing technology and
analytics playing an ever-greater role in increasing operational efficiencies
and deepening the relationship with the customers through interactivity and
flexibility. There are problems to be sorted out for sure and the competition
nipping BPCLs feet could well have an advantage in being leaner. This
competition, as it turns out, is not just from similar loyalty programs by other
petroleum companies, but equally from the emergence of co-branded
programs with banks, which are shaping this quickly-maturing market.
SELF ANALYSIS
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.
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.
The fleet card also offers an exciting rewards programme and unique
benefits like personal accident insurance cover and vehicle tracking facilities.
In just under two years of its launch, it 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 programme 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 programme. For enhanced
security, the fleet card transactions are authorized through a 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 IndianOil's vast
infrastructure network and web-based support services.
Program Details
Fleet Card Each one of your Fleet Cards is a smart card, which can be used
by the card holder (driver of the vehicle) to make purchases of fuel/
lubricants at designated retail outlets of IndianOil.
Activation Before using the feet card (s) to make any purchases, you need to
activate your card(s). To activate your card, please visit the nearest
designated retail outlet of IndianOil and present your card for changing the
default PIN (0000) to a new PIN (any 4-digit number).
Fleet Control Card This is a card to which all your fleet cards are linked. This
card is not meant to be inserted in the smart card terminal for any
transaction. However, the Fleet Control Card Number can be used for the
following transactions:
CCMS Recharge Use your Fleet Control Card Number & Control PIN to
recharge your CCMS Account by making lump sum cash deposit at any
designated retail outlet. Thereafter money available in the CCMS A/c can be
used for reloading multiple fleet cards through CCMS Reload, at any of the
designated retail entries Accumulate XTRA Points: All transactions on your
vehicle-specific fleet cards are linked to the Fleet Control Card; therefore, all
XTRA Points earned by each of your fleet cards accumulate against this card.
XTRA Points' Redemption at a Retail Outlet Use your Control Card Number
& Control PIN on a smart card terminal at a designated Retail Outlet of
IndianOil for instant redemption of XTRA Points for fuel and lubes. You can
also submit your request for redemption of any other reward item from the
rewards Catalogue on the smart card terminal.
Web User ID and Password The web User ID and Password will allow you to
access web-based services of XTRAPOWER such as viewing transactions on
your fleet cards, vehicle tracking, CCMS & card wise balance, XTRA Points'
balance, redemption of XTRA Points etc.
Note In case of credit variant of XTRAPOWER card, the prepaid pouch of the
card must have the required amount so as to avail of online tracking facility.
XTRAPOWER FLEET CARD PROGRAM
With XTRAPOWER Fleet Card you now have an easy, convenient and
rewarding way to drive, monitor and control your entire fleet. It facilitates
cashless fuel purchase and gives you systematic record of transactions
through the card. It is a powerful and unique fleet management tool for an
efficient and cost-conscious fleet owner like you.
Once enrolled, the fleet owner is assigned a Fleet Control Card with
Control PIN and "XTRAPOWER" smart card for every vehicle enrolled under
the program. The XTRAPOWER smart card is personalized with details like
Card Number, Card Member's Name, Customer ID, Vehicle Number and
Expiry Date printed on the card.
Convenience
There are two variants of XTRAPOWER fleet card Prepaid & Credit. On
prepaid cards, pre-load as much money as you require. Within prescribed
limit the pre-loading facility has been made available at designated Retail
Outlets of Indian Oil. You can also deposit the desired amount in Central
Cash Management System (CCMS) through designated of HDFC bank.*
On the credit variant, cards are sent with credit limit as approved by the
credit partner Sundaram Finance Limited (Shortly to be made available
through other banks).
Freedom
Control
XTRAPOWER gives you full control on the amount you load on your prepaid
cards from wherever you are. For example, you can make payments in
Mumbai and reload your Fleet Cards in Chennai. In case of credit variant,
there is a pre-approved daily limit on the card.
For every transaction, charge slip would be printed (shown alongside) for
your records. This slip will indicate the date, time and location of the
transaction, card number, product purchased, value of purchase, card
balance after transaction and odometer reading of the vehicle (if provided by
the driver) etc. One copy of the transaction slip is given to the driver of the
vehicle. With the help of these slips you can keep track of your auto fuel/
lubes expenses and routes traveled by each of your fleet vehicles.
Keep Track
Xtra Points
You earn XTRA Points every time you use your XTRAPOWER fleet card(s) for
making purchases of auto fuels & lubricants, which on accumulation, can be
redeemed for fuel, lubricants and many more exciting gifts.
Xtra Protection
Xtra Benefits
Wherever You Go
Consolidated Reports
The XTRAPOWER Easy Fuel gift card facilitates corporates in paperless gifting
of fuels and lubricants to their employees, customers and other
stakeholders, that too from select IndianOil 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 caters to customer queries.
A complete fuel gifting solution for employees, customers and other
stakeholders of Corporates XTRAPOWER Easy Fuel is a Smart Card based
program, which facilitates paperless gifting of fuel & lubricants from
designated retail outlets of IndianOil.
Fuel drives the economy. Without it the nation will come to a standstill.
What better gift to receive than one that meets your everyday requirement?
Placed in the 106th position in the Fortune's Global 500 Listing, IndianOil
brings to you its rich experience in the Oil and Gas Industry acquired over 50
years of its worldwide presence. IndianOil, the Energy of India is present at
every nook and corner of the country and you will find opportunity to use the
XtraPower Easy Fuel Card at select petrol pumps across India covering major
cities and highways which are 6000 in number at present.
XtraPower Easy Fuel comes with a user-defined 4-digit PIN for ensuring
security of your card. We also have a 24x7 dedicated toll-free helpline to
assist you. In short, the XTRAPOWER Easy Fuel Card Program offers you,
amazing convenience & security in terms of gifting options.
Programme Details
Features XtraPower Easy Fuel is India's first smart card based fuel voucher.
This enhances the security of the cards and in this respect is different from
the Gift Cards that the banks have introduced in the recent past which
operates on a magnetic stripe card.
The gift cards introduced by banks are for single recharge only meaning the
card becomes useless once the amount pre-loaded in the cards is used.
However, XtraPower Easy Fuel Card comes with an option of multiple
recharging or topping-up. Upon exhausting the amount once loaded you can
recharge the card which is ideally suited for reimbursement.
These smart cards come with the added security feature of a user defined 4-
digit PIN which needs to be punched in for undertaking transactions on the
card. This PIN can be changed by the card holder at any point through our
Point Of Sale Terminals. Forget worries of your voucher being misused due to
loss or misplacement.
We have a dedicated web-site, the access to which will be given to each card
member. The card member (Corporate) can logon to the website with his
dedicated login id and password and keep a control on the cards by
allocating requisite funds. Further all transaction details of the cards can also
be viewed through our website thereby eliminating the need for maintaining
separate MIS for reimbursements etc.
The power to decide on the exact amount of gift is with you. You (Corporate)
decide the amount of gift you want to give and then allocate the same to the
particular card through our website.
Indian Oil has a 24x7 dedicated toll free helpline (18004255599) which can
cater to the queries and help out in case of any difficulty.
Sales promotion campaigns taken up by the company for the XtraPower fleet
cards
IOCL Citibank credit card is second only to ICICI – HPCL credit card that
has an estimated card base of 25 lakhs as on 04/07/2008. However the
activation rates of HPCL – ICICI cards is estimated to be about 25-30% as
compared to 70% for the IOC – Citibank cards
➢ The Super Value Credit Card is the first Titanium card from Standard
Chartered Bank with 5% Cash back on Petrol transactions, 5% Cash
back on telephone bill payments and 1% Cash back on all other
purchases. The Super Value Titanium Credit Card gives 5% Cash back
on Fuel get great savings on fuel at ALL fuel pumps be it BPCL,HPCL,
IOCL, RELIANCE
Provision to improve branding and visibility:
1. Provision of XtraPower Lollipop Signage
2. Provision of XtraPower Hoardings at ROs
3. Provision of Wall Paintings along the Highways
4. Provision of Bus Panels
5. Provision of Outdoor Hoardings in transport centers / along highways
6. Transporters Meets
7. Road Shows
Sample size:-
We took a sample of 30 transporters both owners and non owners to
understand the need of the customers as well as the target audience in
general.
Sample frame:-
The sampling frame consists of transporters of Mumbai division.
Sources of information:-
Facts in this research are obtained from two sources
• Primary data: - primary data was collected from the customers.
Regular interactions with our guide Mr. Ashok. Ramnani helped us
obtain the primary information
• Secondary data:-secondary data was obtained from magazines, reports
and books which we went through at the IOCL’s library. We also found
vital information on the Internet.
Questionnaire design:-
We designed close ended short questionnaire which was filled by the fleet
owners through one to one interactions. These questions helped us to know
the customer preferences.
Open ended questions were only for asking suggestions as far as the fleet
card is concerned.
The sample space consist of fleet owners specifically those fleet owners who
have the XtraPower fleet card.
Out of the 30 fleet owners in consideration 21 owned the fleet card while 9
were those who didn’t owe a fleet card.
2. What is the usual mode of payment?
Of these 21 who owned the fleet card 18 of them used it as the usual mode
of payment. While the other 12 members of the sample preferred to pay by
cash or with credit card.
We asked these non users the reason why they choose cash or credit card
over fleet card. The reasons given were-
• Pumps not equipped with the machinery required to read the card.
• The drivers find it difficult to use the card.
• The point’s redemption is not very lucrative.
• The pump attendants in their area of work do not know how to use the
card.
• If internet is unavailable it is difficult to use the site for the
transactions.
1. From where did you come to know about the fleet card programme?
Majority of them said that the awareness about the card is due to the IOCL
retail outlets. Some of them also said that they got to know about the card
and its benefits through a colleague.
30 % fleet card owners said it is difficult to make the drivers use these cards
the technology makes them apprehensive.
4. Rank according to order of preference the following media.
Here people were asked to rank the media source according to their order of
preference. The graph shows what % of people preferred which media is the
best source.
27% people think that TV is the best media to be targeted next to which 23
% people prefer radio
The above graph indicates that the customers are expecting better services
and better offers from the company as far as the fleet card is concerned
6. Do you use the internet site for your loyalty card transactions?
Out of 30, 18 people use the easy fuel card website and 12 people do not
use it. When we asked them if they face any problem with the site they said
when the server is slow the site doesn’t not upload easily.
Those people who said they do not redeem the points regularly is because
their usage doesn’t allow them to gain enough points so that they can
redeem regularly.
What people suggested here is that they should have a option while
redeeming the points whether they want to take a gift home or do they
prefer extra fuel instead. They even suggested that lubricants should also be
included as a gifting option.
Out of 30, 11 people are of the opinion that cashless transaction is the best
characteristic for the easy fuel card. Whereas 9 said that the vehicle tracing
property is the key characteristic.
Thus people prefer cashless transactions and vehicle tracing property over
fuel surcharge and points redemption, but these characteristics do come in
handy for the promotions of the card
Conclusion:-
From the above research we conclude that majority of the customers were
aware about the programme through the IOCL retail outlets. This shows that
other media such as the television, radio etc. are not targeted enough so
that.
Though the programme is so beneficial the drivers are still apprehensive
about using the technology. IOCL should consider explaining to these drivers
the benefits that accompany these cards such as the insurance policy
associated with it, the ease of cashless transactions, and security in use.
Most of the transporters said that they were happy with the fleet card as far
as the utility is concerned but at the same time they expect better services
to them as well as more attractive point’s redemption system especially for
the small transporters.
Some of the active card users complained that the fleet card transaction site
did not work well under weak internet services. It takes a lot of time to
upload. It can be sorted out by making a conduit tool bar available for use. A
conduit toolbar is a 1 time download and it gives easy access to the website.
Also we should consider constructing a website which is friendly over weaker
net connections.
BRANDING CAPSULE FOR XTRAPOWER FLEET CARD
➢ Target customers
Corporate who use diesel for running the generators are given a variant of
the fleet cards known as corporate cards.
Schools offering pickup and drop services for the students could be targeted
➢ Medium
Print Media
• Different rates and sizes. Look at the various sizes of ads in the
newspapers you are considering running ads in. Newspapers normally
have several standard sizes. Some standard sizes include quarter-
page, half-page and full-page. Ads also run horizontally or vertically.
The bigger the ad, the more it will cost. Determine which size might
work for your message.
• Poor printed image quality. This can be a problem if you sell high-end
clothing or your services as a portrait artist. In such instances, try to
drive readers to your Web site -- where you should have hi-resolution
images -- or play up discounted pricing.
• More bang for your buck. Readers don't discard magazines as quickly
as they do newspapers, so your ad will be relevant for a longer period
of time.
• Help brand your business. Magazine printing methods allow for higher
resolution images and better color options, which allow you to build
your brand image in a positive way. Just the fact that you are
advertising in a magazine gives your company a certain professional
cachet.
HOARDINGS of varied sizes explaining the gist of the card with the toll
free no for further enquiry details to be strategically put up at places near
the transports hubs, commercial vehicle dealer would help generate the
new consumer base. Whenever any new person about to start their own
fleet business comes to look for the vehicles at the dealer will see the
hoarding and will enquire about the card on the toll free no.
Advantages
• Exposure to the target customer
• Large space available gives creative freedom
• Reach a large segment of audience
• Geographically pinpointed. You know in advance exactly where your sign
will sit, so you can make your message directional
Disadvantages
• It can be quite expensive
• Message might not be properly understood by the target consumers
• brief message to permit reading from passing vehicles
• rely on the memory of consumer for locations and phone numbers, better
for brand awareness than direct call to action
Advantages
Radio advertising: this is the most preferred medium if the target is the
drivers as while on the go they often listen to the radio. Stations can be
categorically selected to play the ad jingles. The ad needs to be repeated
again and again so that the listener takes notice of the ad.
Advantages
• During the past ten years, radio rates have seen less inflation than
those for other media
Disadvantages
• Because radio listeners are spread over many stations, you may have
to advertise simultaneously on several stations to reach your target
audience
Advantages
• Your ad campaign is hidden from your competitors until it's too late for
them to react
• Active involvement - the act of opening the mail and reading it -- can
be elicited from the target market.
Disadvantages
• Some people do not like receiving offers in their mail, and throw them
immediately without even opening the mail.
• Resources need to be allocated in the maintenance of lists, as the
success of this kind of promotional campaign depends on the quality of
your mailing list.
• Long lead times are required for creative printing and mailing
Advantages
• Provides a venue where you can easily interact with the prospect,
answering any questions or concerns they may have about the fleet
card.
• It's easy to prospect and find the right person to talk to.
• Makes it easy to expand sales territory as the phone allows you to call
local, national and even global prospects.
Disadvantages
Advantages
• Flexibility of use
• If done well, target audience may decide to keep the items, hence
promoting long retention and constant exposure
• Availability of wide range of inexpensive items that can be purchased
at a low price.
Disadvantages
Field officers- it is very difficult to train all the attendants at the RO’s so
instead the company can plant field officers at the outlets whose
responsibility is to cater the existing customers and also to acquire new
customers.
Retail outlets- Occasionally the retail outlets where maximum cards are
swiped could be given the best dealer award. This way dealer would also
be motivated in promoting the card to the customers.
These RO’s can be used as hubs to understand the needs of the customers
the owner as well as the driver and the cleaner and the promotional
campaigns that would be designed would be designed with their needs in
mind.
The points that the customer gets in the initial 3 months should double than
what they normally receive so that they can accumulate more points in short
period and redeem the same for availing the rewards. This will attract the
potential consumers.
Road shows- Road shows are done to take all the campaigns directly to
the end users. Here the truckers are our end users. These shows are
conducted to basically make them aware of the fleet card loyalty
programme. Interesting games are conducted at these road shows.
Medical camps for the drivers and the cleaners are set up these include
eye checkups and diabetes checkups. Road shows can be very fruitful if
done in a proper planned manner and done regularly. This is because at
these road shows we will be in constant touch with the end customer and
with proper assessment we can know what all are the expectations of the
customers from the loyalty programmes.
Membership club- All the card holders can be enrolled into a club
membership and regular convene can be conducted for all the members.
Interactive sessions can be conducted in this and regular feeds where the
customer can be asked about their experience about the card.
Large customers can be asked to write testimony for the card and the same
can be put on the internet site to add on to the credibility of the company.
Internet
Website owners can significantly increase the loyalty of their customers and
site visitors by publishing a Conduit toolbar, and offering it as a free
download. Conduit toolbars allow businesses to remain in constant, positive
contact with their clientele, and to present continuously updated "perks" that
make them feel valued.
Website owners can show their customers how much they understand and
care about their needs, by using the toolbar to announce new products and
deals, or to offer original or syndicated digital content in the form of news
feeds, blogs, video channels and radio stations.
Sitting in the top of the browser window whenever subscribers are online,
Conduit toolbars help you build up a solid relationship – one that transforms
"satisfied" customers into the kind of customers you can count on, no matter
what new competition comes along.
Tie up: The Company should consider tie up with various other brands
for co-branding the card. Other companies offering similar loyalty
programmes have very lucrative rewards benefits for their customer.
Survey your customers
If you want to know how to grow your base of loyal customers, ask your
current ones.
Respond to complaints
Increase communications
Constant communication with customers is necessary in building loyal
relationships. Send regular mailings and e-mails announcing new
merchandise, special discounts and exclusive sales.
Point-of-sale (POS) equipment can quickly and efficiently help you gather this
data. Making the most of customer loyalty programs means tracking
customer information so you can improve your business relationship and
continue to build customer loyalty it doesn't mean sharing this information
with other businesses or using the information in an unethical manner
One-to-One Marketing
RECOMMENDATIONS
• The company should consider tie-ups with leading brands like Pepsi,
café coffee day to add more value to the customers points redeemed.
• In exchange for the points redeemed the fleet owners can also be
offered discount coupons for the theme parks or water parks like the
water kingdom, essel world.
• Hoardings of the fleet cards can be put up at places close to the retail
outlets instead of just the retail outlets. So that the consumer base can
be increased.
• The road shows have shown to be very effective in many cases but
their remains some inconsistency in its implementations. Such road
shows must be conducted every quarter at least so that it will help the
company to be in constant touch with the clients and construct the
offering accordingly.
• IOCL should target corporate giants like Pepsi, HLL, DHL etc who use
flee in their business. They can be potential target customers for the
fleet card. Direct B2B marketing of these programmes should be done
to attract a customer base which will remain loyal to the company.
• Many new cellular service providers like MTS and UNINOR are coming
up in the market. These can be targeted for the corporate version of
the fleet card. Their cell sites also need diesel which they can procure
from a near retail outlet and fleet card programme can be beneficial o
these companies.
• The television and radio advertising should be considered if sales of
the card have to be increased. It’s still an untapped area where the
company has not yet invested much. The product advertisements on
the television can have subscripts running at the bottom to tell people
to enroll with the card programme. In addition the loyalty cards and
the reward system can be aired not on prime time but at times when
our target customer and the consumer is expected to watch television
may be during lunch hours or dinner times.
• The retail outlets can be utilized as hubs to trigger sales. There could
be field officers who target the new customers keep contact with the
old ones and sort out their problems in person this will in turn increase
the credibility of the programme.
• A record of the card swipes per retail outlet shall be kept and “Best
Dealer” award can be granted for the maximum no of transactions.
This will motivate the dealers to swipe the card.
• To make sure that the machines at all the outlets are working in their
best condition a check by the company officials is in order. This will
help in maintaining the machines and avoid its break down due to
wear and tear.
➢ Target customer
• Corporate bodies
• Business enterprise who wants to gift their stakeholders
• Suppliers
• Dealers
• General consumers
➢ Medium
The medium used depends on the target customers that we decide t cater.
The easy fuel card is a extension of the XtraPower fleet card and its caters to
the corporate bodies who are interested to give out free gifts to all their
stake holders like their customers, suppliers, retailer.
Print medium
Newspaper: The daily national newspapers are also the most read
papers of the corporate hence a print advertisement in the same will be
fruitful. The printed ads should not be very flashy and should have a color
combination which would look classy.
Cons: Most magazines are issued monthly so it can involve a long lead in
time to getting into print and getting responses. Smaller advertisers don’t
get the best positioning in magazines and are usually crowded together in
the back. And be careful to verify the stated circulation figure of the
magazine.
They are of varied sizes explaining the gist of the card with the toll free no
for further enquiry
Pros
• Exposure to the target customer
• Large space available gives creative freedom
• Reach a large segment of audience
• Geographically pinpointed. You know in advance exactly where your sign
will sit, so you can make your message directional
Cons
• It can be quite expensive
• Message might not be properly understood by the target consumers
• Brief message to permit reading from passing vehicles
• Rely on the memory of consumer for locations and phone numbers, better
for brand awareness than direct call to action
Pros
• Radio advertising costs less than television advertising and may reach
a broader audience.
• Radio advertisements are informal and tell a story that engages and
captivates the listener. Most do this by taking advantage of popular
radio personalities or by including a catchy and creative jingle.
• Radio advertisements are effective because they’re run several times
over the course of a day, week, etc. This means your market is likely to
hear the ad multiple times as opposed to a print ad which they may
only see one time.
Cons
Pros: Can be very inexpensive, may even generate money. Can be done as
individual actions Has reusable value - articles can be used as reprints, mail
pieces, and handouts and in newsletters.
Tips: Get to know the journalists who write about your area; come up with
helpful or controversial topics. Kick off your PR campaign with letters to the
editor or phone calls, perhaps resulting in brief quotes and interviews. Turn
press coverage into handouts and mail pieces.
Yellow Pages: this is a medium that will be referred by the corporate
team who are incharge
Pros: Your advertisement lasts for an entire year and is placed in such a way
that your prospects can find you at the time they want to buy.
There are very few bargains in advertising spending. You get what you pay
for here. But to maximize the return on what you are paying for, keep two
questions in mind: is my ad going to capture interest; and have I chosen the
right channel for reaching my target audience
Mobile marketing
Mobile phones are a great device for communication. It has become very
popular throughout the world. According to the business experts, mobiles are
much more a popular concept than computers. These devices offer many
facilities than letting people make calls. It's true that the concept of online
marketing is on rise. But it is also true that mobile marketing via text
Pros:
• A cell phone is a very personal device that people take with them
wherever they go, making it easy for marketers to develop a
relationship with customers through this medium.
• New tool for brands and advertisers to reach new customers and target
specific audiences.
• Smartphones and iPhone to enhance mobile surfing, promoting mobile
marketing success.
• Messages sent to a mobile phone are more likely to be read than email
sent to a PC, which can get caught in the spam filter.
Pros: Can reach prospects in most focused form. Often generates best leads
relative to cost and effort.
Cons: Can be expensive; requires a lot of time and effort. Not right for some
people or businesses.
Tips: Learn to qualify prospects quickly. Follow up promptly with mailings,
letters, samples, particularly in response to specific requests. Keep good
records; consider using a contact-management program.
Tips: Prepare. Pick a few shows in your field to attend regularly. Meet as
many people as possible to cultivate contacts.
Pros: Can be inexpensive, especially if the pieces can serve many purposes
and you create them using desktop publishing.
Tips: Think carefully before over committing to an expensive item that will go
out of date. Look for pieces that can be their own mailer.
Pros: Can help attract attention; gives you an easy way to leave your name
and address with prospects.
Cons: May not be a good way to spend money; not appropriate for all
businesses. Can take up valuable storage room
Tips: Look for small, inexpensive, useful items - pens, coffee cups, and letter
openers. As with collateral, look for things that don't readily go out of date
Talk: One other vehicle is word of mouth, from friends, contacts, and
satisfied customers. Word of mouth is inexpensive, yet it's often the most
powerful marketing tool
Cons: Can spread negative opinions even faster than positive ones.
Tips: Set a good example. Don't badmouth competition, but pass on opinions
of other (noncompeting) businesses you like. Consider some form of thanks
to customers who refer new ones - even if it's just a signed note.
FLEET OWNERS
News papers are read by all the fleet owners so they would contribute
substantially in promoting the fleet card the ad should be printed properly
and should be easy to understand.
Radio: this is one of the mediums which if exploited properly will give the
best of results since it is less expensive than a television as well as
newspaper. And it’s the only medium which people use while they are
working. This feature can be an advantage or a disadvantage. Disadvantage
because we would not get full attention of the consumer. But advantage is
that we could be in constant touch with the consumer. The disadvantage of
the same could be reduced if we play the same set of ad more no of times.
This will allow greater exposure of the fleet card.
Internet: it will serve the purpose only if the fleet owners use the internet
frequently. It cannot be ignored completely so a 10% of total budget could
be used to create the conduit toolbar so that the company can maintain a
constant positive contact with the customers.
5% of the budget should be spent on buying specialty items like key chains
or some memento which has the Indian Oil logo and the loyalty card picture
on it. They could be distributed during the road shows conducted.
Road shows: This is the only way by which the company could maintain
direct contact with the customer. Hence they become an important medium
for the company. To know what the customer expects are the expectations
fulfilled. Such questions could be best answered by road shows.
News papers 15
Television 20
Radio 20
Telemarketing 10
Internet 10
Specialty advertising 5
Road shows 20
DRIVERS
Radio: most of the drivers listen to radio while they are on the go. Hence
maximum budgetary expenses should be allocated to this medium.
Almost 20-25% of the total budget should be focused n creating a good jingle
and airing it on all the variety of channels targeting the drivers.
Hoarding: The message displayed has to be easy to read while 1 is driving.
The message should be short as well as self explanatory. Hoardings can be
categorically placed near the eating hubs of these drivers so that they would
get enough time for the same.
This medium would reach the drivers very effectively hence about 15-20% of
the total budget should be given for the same.
Road shows: they will create goodwill for the company. Arranging eye
camps, and diabetes camps, or medical checkups for the driver and the
cleaner will surely create a lot of goodwill for the company.
All these activities will require a lot of budget to be allocated say about 25%
of the budget should go in all these activities.
CORPORATES
Yellow pages: Advertisement in the yellow pages lasts for an entire year
and is placed in such a way that your prospects can find you at the time they
want to buy.
Consumers
The consumer’s media strategies like the corporate media strategies would
include the news paper and magazines ads yellow pages and television. So
no separate allocation of budget would be required.
Apart from the corporate media strategies the consumer would require the
following:
Hoarding: This will act as a major factor for the consumers to know about
the card.
Sample size:-
We took a sample of 60 people from varying fields and varying age groups.
Sample frame:-
The sampling frame consists of Mumbai and suburbs.
Sources of information:-
Facts in this research are obtained from two sources
• Primary data: - primary data was collected from the customers.
Regular interactions with our guide Mr. Ashok. Ramnani helped us
obtain the primary information
• Secondary data:-secondary data was obtained from magazines, reports
and books which we went through at the IOCL’s library. We also found
vital information on the Internet.
Questionnaire design:-
We designed close ended short questionnaire which was filled by the
sampled audience through one to one interactions. These questions helped
us to know the customer preferences.
Open ended questions were only for asking suggestions as far as the fleet
card is concerned.
ANALYSIS
The blue color in the above graph indicates those subjects who were aware
about the loyalty programmes carried out by companies while the red color
indicated those who lack the awareness.
Out of 60 people who were sampled 44 people knew about the loyalty
programmes i.e. 73% people were aware about the loyalty programmes
In these 44 people 28 said they would be interested in buying the easy fuel
card which is a smart card based prepaid fuel card. And 10 said they may
buy the card. Total 38 out of 22 people seemed interested in buying the
smart card programme.
The graph indicates that subjects who were aware about loyalty programmes
are more interested in buying the XtraPower easy fuel card.
In this graph the blue bars indicate a positive response for buying the
XtraPower fuel card, red indicates a negative response meaning people
who are not interested in buying the fuel card while green indicated
those respondents who said may be for buying the easy fuel card.
The above graph indicates that in the age group 18-25 out of the 10
people sampled none said NO, 6 of them said YES and 4 of them said
MAY BE. This indicates that this age group is the target audience for the
easy fuel card.
In the age group 30-40 we see a 2nd peak which indicates people in this
segment will also be interested to buy the easy fuel card.
The age group 40 and above majority of the people have said no to the
smart card based programme. The reason was attributed to a credit
based programme which they are very much accustomed to.
So with the right amount of publicity we can target the 2-wheeler audience
to buy the smart card based programme
In the 4 wheeler category again 50% have responded positively to the easy
fuel card programme. While the rest 50% is divided into those who do not
want to go for the programme and the ones who said may be for such a
programme.
Those who said may be in all the 3 categories complained that the credit
card transactions take a lot of time as the pump attendants have to go to
their cabin for printing a bill. If the easy fuel card programme actually makes
billing at the retail outlet easy it would be a major success in both the
category of customers.
The graph indicates that people who buy 25-50 liters of petrol each have
either said YES to buy an easy fuel card or said MAY BE to buy an easy fuel
card. As against people who buy more than 100 lts of petrol where majority
are saying MAY BE and NO and a very few are saying YES to buying the easy
fuel card. Again the subjects in the more than 100 lts category said they had
a credit card which gave them good amount on savings while buying the fuel
from the current petrol pump.
Thus the people who fill in their tanks with smaller amount of petrol are our
primary target audience because these people do not go for the credit card
programmes as they do not have the opportunity to save on their fuel
expenses to a great extent as the refill their vehicles for less volume of fuel.
All those who are somewhat loyal towards buying fuel have opted for
the easy fuel card.
Whereas those who are loyal have majorly said may be for buying the
easy fuel card. This shows that our target customer group is the one
who is not so strict in their fuel buying behavior.
The people who are not at all loyal towards buying fuel can be targeted
by showing them the benefits of using the XtraPower easy fuel card.
DOES OWING A FUEL BASED CREDIT CARD ALTER THE BUYING
DECISION?
In the above graph red color indicates those people who do not owe a
credit card whereas blue indicates those people who owe a credit card.
From the above graph it is clear that those people who do not owe a
credit card opt for the easy fuel card over those who do owe such a
card.
Thus the target audience will be those who do not already owe a credit
card based programme.
CONCLUSION
XtraPower easy fuel card is a loyalty programme which offers a fuel
gifting option for the corporate. Here we try to find out if it will be viable
when presented for the general public. We conducted market research
to find out if it will be accepted by the people
In the general public who all will be our target audience that we need to
focus on is what we try to find out.
To find out answers for the same we conducted a market research in
which our sample size was of 60 individuals from varying fields and
varying age groups. We asked them a set of questions and also
provided space for any suggestions that they would like to provide us.
From the answers that were given we try to evaluate how the target
group composition would be that we need to focus on while launching
the card for general use.
We found out that for our target audience age is no bar but initially we
could focus on the age group of 18-25. This is because in this age group
the target audience is more receptive to innovative ideas. These are
the consumers who have to save a lot of money as far as fuel expenses
are concerned. XtraPower easy fuel card will help them serve the
purpose. The consumers of age group above 50 would be interested in
giving out this easy fuel card to their children so that they can curb on
the expenses these kids do on their vehicles.
We also found out that the 2-wheelers and consumers who use less
amount of petrol every month should be targeted as audience for the
easy fuel card because these people are usually not targeted by the
credit card based loyalty programmes as they give very little points to
be redeemed by these consumers. So instead these consumers can be
targeted by the easy fuel card so that they so that it’s easy for their
transactions.
Last but not the least are the consumers who are not so loyal in their
fuel buying behavior these consumers can be targeted to be the
customers of the easy fuel card programme by convincing them how
beneficial this card is because of the cashless transactions that the card
offers.
The consumers can be explained how they can limit their expenses on
fuel by predefining their fuel budget for the month. This way they can
save on the unnecessary expenses that are associated with the fuel
purchase.
XtraPower Easy Fuel Card
• The fuel card charges a fee of Rs. 30 per card purchased. This restricts
the consumer from buying the cards. In order to attract more
customers the company should consider waving off the registration
charges or if that is not feasible then the company should consider
waving off the charges in the 1st yr of purchase and any subsequent
refills after the 1st yr will be accounted at a minimal amount.
This is because once the customer is satisfied with the services offered
by the card they will not mind paying the minimal amount. However if
they are charged a fee right in the beginning then it will restrict their
buying decisions
With the fuel prices on the rise and overall fuel prices to follow the market
rate the company can have an assured customer base in the form of easy
fuel card users.
In conclusion I would just like to say that the fleet card programme was
implemented for retaining the current customer base and build on to the
already existing loyalty among the customers. So it must be implemented
regularly on the grass root level so that it keeps bringing the customer base
back to the company. With such intense competition and also the fuel prices
being market controlled it will be necessary for the even the market leaders
to build on to the current customer base and not lose any of it to keep its
market share intact.