INDEX

INTRODUCTION .................................................................................... 3

Introduction ............................................................................................. 3

Vision of IOCL ........................................................................................ 6

Mission of IOCL...................................................................................... 6

Values of IOCL ....................................................................................... 7

Business Divisions................................................................................... 7

Products And Services ............................................................................. 8

COMPANY PROFILE ............................................................................ 9

OBJECTIVES & OBLIGATIONS .......................................................13

Objectives: .............................................................................................13

Financial Objectives ..............................................................................15

Obligations.............................................................................................16

RESEARCH METHODOLOGY ..........................................................17

Data Collection Method ........................................................................17

Sampling plan ........................................................................................17

REVIEW OF LITERATURE................................................................18

DATA ANALYSIS & INTERPRETATION ........................................26

Questioners ............................................................................................26

SWOT Analysis For IOCL ....................................................................38

Loyalty Programs- An Introduction ......................................................42

1|Page
CONCLUSION: ......................................................................................44

SUGGESTION:.......................................................................................46

FINDINGS: .............................................................................................47

REFERENCES .......................................................................................48

BIBLIOGRAPHY ...................................................................................51

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INTRODUCTION

Introduction

Indian Oil Corporation Limited (IOCL), commonly known

as IndianOil is an Indian government owned oil and gas company
headquartered in New Delhi. It is the largest commercial oil company in
the country, with a net profit of INR 19,106 crore (USD 2.848 billion) for
the financial year 2016–17. It is ranked 1st in Fortune India 500 list for
year 2016 and 117th in Fortune Global 500 list of world's largest
companies in the year 2019. As of 31 March 2017 IndianOil's employee
strength is 33,135, out of which 16,545 are in the officer cadre. It is
India's largest downstream oil company, with a workforce of more than
33,000 employees, a turnover of Rs. 506,428 crore and a net profit of Rs.
21,346 crore in 2017-18.

IndianOil's business interests overlap the entire hydrocarbon value-chain,

including refining, pipeline transportation, marketing of petroleum
products, exploration and production of crude oil, natural
gas and petrochemicals.

IndianOil has ventured into alternative energy and globalisation of

downstream operations. It has subsidiaries in Sri Lanka (Lanka
IOC), Mauritius (IndianOil (Mauritius) Ltd) and the Middle East (IOC
Middle East FZE).

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In May 2018, IOCL become India's most profitable state-owned company
for the second consecutive year, with a record profit of ₹21,346 crore in
2017-18, followed by Oil and Natural Gas Corporation, whose profit
stood at ₹19,945 crore. In February 2020, the company signed a deal with
the Russian oil company Rosneft to buy 40,000 barrels per day of crude
in year 2020.

In the present world where there is intense competition, it becomes very

necessary to retain loyal customers. The commercial benefits of loyal
customers are well known by the brand managers. The cost of acquiring a
new customer is always more than retaining an old customer.

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

With increasing oil prices and competition increasing at a rapid pace,

many oil-marketing companies are finding it difficult to operate
profitably in India. Indian Oil Corporation Ltd, is no exception to this
reality. Thus to retain its existing customers, many new imitative have
been adopted by the organization. One such big idea is Xtra POWER
Loyalty Program.
4|Page
In this project, we have been assigned IOC retail outlets, which are
participating in the Xtra POWER Loyalty program. Our task is to
promote and sell the Xtra POWER FLEET Loyalty card to the customers
and at the same time obtain the customers opinions and suggestions about
the loyalty program. Tapping local alliances is another aspect of this
project.

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

IOC (Indian Oil Corporation) was formed in 1964 as the result of merger
of Indian Oil Company Ltd. (Estd. 1959) and Indian Refineries Ltd.
(Estd. 1958).

Indian Oil Corporation Ltd. is the highest ranked Indian company in the
prestigious Fortune ‘Global 500’. It was ranked at 135th position in 2007.
It is also the 20th largest petroleum company in the world.

Indian Oil Corporation Ltd. is currently India's largest company by sales

with a turnover of Rs. 247,479 crore (US $59.22 billion), and profit of
Rs. 6963 crore (US $ 1.67 billion) for fiscal 2007.

Indian Oil and its subsidiaries today accounts for 49% petroleum
products market share in India.

Indian Oil group has sold 59.29mn tonnes of Petroleum including 1.74mn
tonnes of Natural gas in the domestic market and exported 3.33mn tonnes
in the year 2007-08.

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Vision of IOCL

A major diversified, transnational, integrated energy company, with

national leadership and a strong environment conscience, playing a
national role in oil security & public distribution.

Mission of IOCL

IOCL has the following 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 Development.
 To foster a culture of participation and innovation for employee
growth and contribution.
 To cultivate high standards of business ethics and Total Quality
Management for a strong corporate identity and brand equity.
 To help enrich the quality of life of the community and preserve
ecological balance and heritage through a strong
environment conscience.

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Values of IOCL
Values exist in all organizations and are an integral part of any it. Indian
Oil nurtures a set of core values:

 CARE
 INNOVATION
 PASSION
 TRUST

Business Divisions

There are 7 major Business Divisions in the organisation:

 Refineries Division
 Pipelines Division
 Marketing Division
 R&D Division
 Petrochemicals Division
 Exploration & Production (E&P) Division
 Explosives and Cryogenics Division

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Products And Services

Indian Oil accounts for nearly half of India's petroleum products market
share, 35% national refining capacity (together with its subsidiary
Chennai Petroleum Corporation Ltd., or CPCL), and 71% downstream
sector pipelines through capacity. The Indian Oil Group owns and
operates 11 of India's 23 refineries with a combined refining capacity of
80.7 million tonnes per year.[23] Indian Oil's cross-country pipeline
network, for transport of crude oil to refineries and finished products to
high-demand centres, spans over 13,000 km The company has a
throughput capacity of 80.49 million tonnes per year for crude oil and
petroleum products and 9.5 million cubic metre per day at standard
conditions for gas. On 19 November 2017, IOC, in collaboration
with Ola, launched India’s first electric charging station at one of its
petrol-diesel stations in Nagpur.[24] Indian governments’ National Electric
Mobility Mission Plan launched in 2013 aims at gradually ensuring a
vehicle population of 6 to 8 million electric and hybrid vehicles in India
by 2020.

8|Page
COMPANY PROFILE

India’s flagship national oil company and downstream petroleum major,

Indian Oil Corporation Ltd. (IndianOil) is celebrating its Golden Jubilee
in 2009. It is India's largest commercial enterprise, with a sales turnover
of Rs. 2, 85,337 crore – the highest-ever for an Indian company – and a
net profit of Rs. 2, 950 crore for the year 2008-09. IndianOil is also the
highest ranked Indian company in the prestigious Fortune 'Global 500'
listing, having moved up 11 places to the 105th position in 2009. India’s
Flagship National Oil Company Incorporated as Indian Oil Company Ltd.
on 30th June, 1959, it was renamed as Indian Oil Corporation Ltd. on 1st
September, 1964 following the merger of Indian Refineries Ltd.
(established 1958) with it. IndianOil and its subsidiaries account for
approximately 48% petroleum products market share, 34% national
refining capacity and 71% downstream sector pipelines capacity in India.

For the year 2008-09, the IndianOil group sold 62.6 million tonnes of
petroleum products, including 1.7 million tonnes of natural gas, and
exported 3.64 million tonnes of petroleum products.

The IndianOil Group of companies owns and operates 10 of India's 20

refineries with a combined refining capacity of 60.2 million metric tonnes
per annum (MMTPA, .i.e. 1.2 million barrels per day). These include two
refineries of subsidiary Chennai Petroleum Corporation Ltd.

The Corporation's cross-country network of crude oil and product

pipelines, spanning over 10,000 km and the largest in the country, meets
the vital energy needs of the consumers in an efficient, economical and
environment-friendly manner.

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Indian Oil is investing Rs. 43,400 crore (US $10.8 billion) during the
period 2007-12 in augmentation of refining and pipeline capacities,
expansion of marketing infrastructure and product quality upgradation as
well as in integration and diversification projects. Network Beyond
Compare As the flagship national oil company in the downstream sector,
Indian Oil reaches precious petroleum products to millions of people
everyday through a countrywide network of about 35,000 sales points.
They are backed for supplies by 167 bulk storage terminals and depots,
101 aviation fuel stations and 89 Indane (LPGas) bottling plants. About
7,335 bulk consumer pumps are also in operation for the convenience of
large consumers, ensuring products and inventory at their doorstep.

Indian Oil operates the largest and the widest network of petrol & diesel
stations in the country, numbering over 18,278. It reaches Indane cooking
gas to the doorsteps of over 53 million households in nearly 2,700
markets through a network of about 5,000 Indane distributors.

Indian Oil's ISO-9002 certified Aviation Service commands over 63%

market share in aviation fuel business, meeting the fuel needs of domestic
and international flag carriers, private airlines and the Indian Defence
Services. The Corporation also enjoys a dominant share of the bulk
consumer business, including that of railways, state transport
undertakings, and industrial, agricultural and marine sectors. Technology
Solutions Provider Indian Oil's world-class R&D Centre is perhaps Asia's
finest.

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Besides pioneering work in lubricants formulation, refinery processes,
pipeline transportation and alternative fuels, the Centre is also the nodal
agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel
economy in the country. It has set up a commercial Hydrogen-CNG
station at an IndianOil retail outlet in New Delhi this year. The Centre
holds 214 active patents, including 113 international patents.

IndianOil has joined the league of global technology providers last year
with the selection of its in-house developed INDMAX technology (for
maximising LPGas yield) for the 4 MMTPA Fluidised Catalytic Cracking
(FCC) unit at the Corporation's upcoming 15 MMTPA grass roots
refinery at Paradip in Orissa, as well as for the FCC unit coming up at
BRPL.

A wholly-owned subsidiary, IndianOil Technologies Ltd., is engaged in

commercialising the innovations and technologies developed by
IndianOil's R&D Centre. Customer First At IndianOil, customers always
get the first priority. New initiatives are launched round-the-year for the
convenience of the various customer segments.

Exclusive XTRACARE petrol & diesel stations unveiled in select urban

and semi-urban markets offer a range of value-added services to enhance
customer delight and loyalty. Large format Swagat brand outlets cater to
highway motorists, with multiple facilities such as food courts, first aid,
rest rooms and dormitories, spare parts shops, etc.

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Specially formatted Kisan Seva Kendra outlets meet the diverse needs of
the rural populace, offering a variety of products and services such as
seeds, fertilisers, pesticides, farm equipment, medicines, spare parts for
trucks and tractors, tractor engine oils and pump set oils, besides auto
fuels and kerosene. SERVOXpress has been launched recently as a one-
stop shop for auto care services.

To safeguard the interest of the valuable customers, interventions like

retail automation, vehicle tracking and marker systems have been
introduced to ensure quality and quantity of petroleum products.
Widening Horizons To achieve the next level of growth, IndianOil 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, bio fuels, wind power projects, besides globalisation of its
downstream operations.

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OBJECTIVES & OBLIGATIONS

Objectives:

 To 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 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 laying 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 optimise utilisation of refining capacity and maximize distillate
yield and gross refining margin.
 To maximise utilisation of the existing facilities for improving
efficiency and increasing productivity.
 To minimise 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.

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  To avail of all viable opportunities, both national and global,
arising out of the Government of India’s policy of liberalisation
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 continuously engage across the hydrocarbon value
chain for the benefit of society at large.

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Financial Objectives
 To ensure adequate return on the capital employed and maintain a
reasonable annual dividend on equity capital.
 To ensure maximum economy in expenditure.
 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 Corporation’s 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.

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Obligations
 Towards customers and dealers:- To provide prompt, courteous
and efficient service and quality products at competitive prices.
 Towards suppliers:- To ensure prompt dealings with integrity,
impartiality and courtesy and help promote ancillary industries.
 Towards employees:- To develop their capabilities and facilitate
their advancement through appropriate training and career
planning. To have fair dealings with recognised representatives of
employees in pursuance of healthy industrial relations practices
and sound personnel policies.
 Towards community:- To develop techno-economically viable and
environment-friendly products. To maintain the highest standards
in respect of safety, environment protection and occupational
health at all production units.
 Towards Defence Services:- To maintain adequate supplies to
Defence and other para-military services during normal as well as
emergency situations.

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RESEARCH METHODOLOGY

Data Collection Method

Types of Data and Data Collection:

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

Primary Data

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

 City fuel (city center Durgapur)

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

Sampling plan

The sample size for retailer is 8 and that of customers is 200 of

Durgapur and nearby region. The respondents are chosen through
cluster sampling universe elements are chosen in group rather than
individually. Whereas convenience sampling is based on opportunism.

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REVIEW OF LITERATURE

The review of literature guides the researchers for getting better

understanding of methodology used, limitation of various available
estimation procedures and database, and lucid interpretation and
reconciliation of the conflicting results. Besides this, the review of
empirical studies explores the avenues for future and present research
efforts related to the subject matter. In case of conflicting and
unexpected results, the research can take the advantage of knowledge of
their researchers simply through the medium of their published works. A
number of research studies have been carried out on different aspects of
performance appraisal by the researchers, economists and academicians
in India and abroad. Different authors have analyzed performance in
different perspectives. A review of these analyses is important in order to
develop an approach that can be employed in the context of the study of
Indian automobile industry. Therefore, the present chapter reviews the
empirical studies related with different aspects of Financial Efficiency.

Pany (1991) has sought to identify factors which influence corporate

economic performance. Important industrial characteristics which have
been used by industrial organization researchers as the determinants of
financial performance are concentration, market share, industry growth,
research and development expenditure, advertisement intensity, and size
of firms in the industry. These characteristics may allow firms to be in a
better position to implement their strategies successfully and
profitability. Consequently, firms may reflect better performance on
account of favorable industrial characteristics.

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 Jagan Mohan Rao (1993) in ‘Financial appraisal of Indian Automotive
Tyre Industry’ studied the financial appraisal of Indian automotive tyre
industry. The study was intended to probe into the financial condition-
financial strength and weakness-of the Indian tyre industry. To this end a
modest attempt has been made to measure and evaluate the financial
performance through inter-company and inter-sectoral analysis over a
given period of time (1981-1988). The main findings are that fixed
assets utilization in many of the tyre undertakings was not as productive
as expected and inventory was managed fairly well. The tyre industry’s
overall profit performance was subjected to inconsistency and
ineffective.

Kallu Rao (1993) has made a study inter company financial analysis of
tea industry-retrospect and prospect. An attempt has been made in this
study to analyze the important variables of tea industry and projected
future trends regarding sales and profit for the next 10 year periods, with
a view to help the policy makers to take appropriate decisions. Various
financial ratios have been calculated for analyzing the financial health of
the industry. The forecast of sales and profits of tea manufacturing
companies shows that the Indian tea industry has bright prospects. The
recent changes in the Indian economic policies will boost up the foreign
exchange earnings, which will benefit those companies, which are
exporting to hard currency areas.

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 Vijayakumar and Venkatachalam (1995) in ‘Working Capital and
Profitability - An Empirical Analysis’ studied the impact of working
capital on profitability in sugar industry of Tamil Nadu by selecting a
sample of 13 companies; 6 companies in co-operative sector and 7
companies in private sector over the period 1982-83 to 1991-92. They
applied simple correlation and multiple regression analysis on working
capital and profitability rations. They concluded through correlation and
regression analysis that liquid ratio, inventory turnover ratio,
receivables turnover ratio and cash turnover ratio had influenced the
profitability of sugar industry in Tamil Nadu.

Pai, Vadivel and Kamal (1995) studied the diversified companies and
financial performance: A study. An effort was made to study the
relationship between diversified firms and their financial performance.
Seven large firms having different products-both related and otherwise-
in their portfolio and operating in diverse industries were analyzed. A set
of performance measures
/ rations and employed to determine the level of financial performance.
The results reveal that the diversified firms studied have been healthy
financial performance. However, variation in performance from one firm
to another has been observed and statistically established.

20 | P a g e
 Vijayakumar (1996) in ‘Assessment of Corporate Liquidity – a
discriminate analysis approach’ has revealed that the growth rate of
sales, leverage, current ratio, operating expenses to sales and vertical
integration are the important variables which determine the profitability
of companies in the sugar industry. Further, the author has studied the
short-term liquidity position in twenty-eight selected sugar factories in
co-operative and private sectors. A discriminate analysis has been
undertaken to distinguish the good risk companies from poor risk
companies based on current and liquidity rations. Discriminating ‘Z’
scores have been calculated with the help of discriminate function and
according to the ‘Z’ scores the companies are ranked in the order of
liquidity.

Key Sengupta (1998) studied the performance of the fertilizers industry

in India. Analysis of cost functions and cobb-douglas production
function have beenmade to study the performance of the industry, the
results of which reveal that the industry is subject to the law of
increasing costs.The findings get further support from the examination
of the production function,
which reveals that the average productivity of labor exceeds its marginal
productivity. Analysis of shifting cost functions further highlight that the
firms belonging to this industry expand capacities, even before fully
exploiting the existing capacity conforming to the oligopolistic
behavioral tendency of the firms belonging to the fertilizers industry.

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 Sidhu and Gurpreet Bhatia (1998) studied the factors affecting
profitability in Indian textile industry. In this study an attempt was made
to identify the major determinants of profitability in Indian textile
industry with the help of empirical data taken from Bombay Stock
Exchange Directory for the year 1983. To find out the factors affecting
profitability, regression analysis had been applied. From the analysis,
there was no clear-cut relationship between current profitability and
capital intensity. The age of the firm was having generally negative but
statistically insignificant relationship with current profitability which
points towards the fact firms in Indian textile industry are absolute and
need modernization.

Vijayakumar (1998) has examined the determinants of corporate size,

growth and profitability - the Indian experience. To meet the objectives
of the study, Indian public sector industries were selected. The date
relating to size, growth and profitability were collected from their annual
reports published by the Bureau of Public Enterprises (BPE),
Government of India. The study covers the period from 1980-81 to
1995-96. The technique of average, correlation and linear and linear and
multiple regression analysis has been used in this study. Inter - industry
analysis reveals that the growth is positively and significantly
associated with the size in all the industry groups except textiles.

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 VishnuKanta Purohit (1998) in ‘Profitability in Indian Industries: An
analysis of firm size and profitability’ examined the relation between
size and profitability in Indian industries. The study highlights the
following two common conclusions. Firstly, though the average
profitability of firms does
not seem to vary significantly with their size and the variability of profit
rates declines with size. Secondly, the average growth rates of firms do
not seem to vary significantly with their size but the variability of
growth rates only. The study further explores the factors that determine
profitability. Besides the size, the model also tests for the impact of age
of the firm and growth in sales on profitability at both micro and macro
levels. The study concludes that the selected industries and firms have
made efforts to increase profitability through various means including
increase in size through diversification and moving into higher
technology.

Govinda Rao and Mohana Rao (1999) in ‘Impact of working capital

on profitability in cement industry – A correlation analysis’, analyze the
impact of profitability on working capital in cement industrial units in
India. Ten variables on working capital rations have a close interaction
with profitability measures viz., current ratio, debt equity ratio, cash
position ratio, working capital turnover ratio, inventory turnover ratio,
debtors turnover ratio, cash turnover ratio, current assets turnover ratio
and average collection period are selected for analysis. The inter-
relationship are to be studied with the help of Karl-Pearson’s co-efficient
of correlation technique, by arranging the correlation of one variable
with each other variable in the form of matrices which are a triangular
and symmetrical about the principal diagonal. On overall basis out of 10

23 | P a g e
 variables with PBDIT, 3 variables showed a significant co-efficient and
seven exhibited insignificant relationships. Out of the 10 variables, 5
variables showed negative association which the others showed positive
relationships.

Raghunathan and Prabina Das (1999) have made a study of the

corporate performance of post-Liberalization. In this study, they
analyzed the performance of Indian manufacturing sector in the last 8
years since liberalization on the parameters of profitability, liquidity,
leverage and solvency. While the solvency and profitability ratios were
encouraging till 1996 they have been gradually diminishing after that.
This problem gets more pronounced when the EVA is calculated which
shows that the Indian Manufacturing sector has destroyed wealth, while
the MNCs have generated wealth for their shareholders. The study
points that poor corporate performance has led to an economic
slowdown and not the other way round. Corporate raised funds during
the blacken days of equity markets and ended up investing these funds at
below their cost of capital. The outcome has been a prolonged economic
slowdown.

Rajeswari (2000) studied the Liquidity Management of Tamil Nadu

Cement Corporation Ltd.Alangulam-A Case Study.It can be concluded
from the analysis; the liquidity position of TANCEM is not stable.
Regarding liquidity rations, there was too much of liquidity in the first
two years of the study period. A very high degree of liquidity is also bad
as idle assets earn nothing and affects profitability. It can be concluded
that the liquidity management of TANCEM is poor and is not
satisfactory.

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 Aggarwal and Single (2001) in their study developed a single index of
financial performance through the technique of Multiple Discriminate
Analysis (MDA), They attempt to identity from among the 11 ratios,
used as inputs, those ratios, which are relevant in distinguish between
profit making units and loss making units in Indian paper industry. The
study indicates that model has correctly classified 82.14 percent of units
selected as profit making and loss marking. The study also shows that
inventory turnover ratio, interest coverage ratio, net profit to total assets
and earning per share are the most important indicators of financial
performance. The study also suggests that the results of MDA can be
used as predictor of future profitability / sickness.

25 | P a g e
DATA ANALYSIS & INTERPRETATION

Questioners
1. Do you visit the IOCL fuel station regularly?

a) YES.

b) NO.

Answerer No. of Respondents

Yes 65

No 35

Total 100

Responses

35%

Yes No

65%

Interpretation:

In this study 65% Respondents are visiting IOCL fuel station

regularly, and remaining 35% are not visiting regularly.

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2. What is the usual mode of payment?

a) Cash.

b) Credit/Debit Card.

c) XTRAPOWER fleet card.

Answerer No. of Respondents

Cash 65

Credit / Debit Card 25

XTRAPOWER fleet card 10

Total 100

No. of responses

10

Cash
25
Credit / Debit Card
XTRAPOWER fleet card
65

Interpretation:

In this study 65% Respondents are using cash, 25% Respondents

are using Credit / Debit Card and only 10% Respondents are using
XTRAPOWER fleet card.
27 | P a g e
3. Do you know about the XtraPower fleet card?

a) YES

b) NO.

Answerer No. of Respondents

Yes 25

No 75

Total 100

Responses

25%

Yes No

75%

Interpretation:

In this study 25% Respondents knowing about XtraPower fleet

Card, and remaining 75% are not knowing about same.

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

Answerer No. of Respondents

Advertisement 23

Newspapers 17

Journal / Magazins 21

IOCL Retail Outlets. 29

Others 10

Total 100

No. of responses

10
23 Advertisement

Newspapers
29
Journal / Magazins
17
Others

21

Interpretation:

In this study 23% Respondents are knowing from advertisement,

17% are knowing from Newspapers, 21 are knowing from Journal /
Magazine, 29 % are knowing from IOCL Retail Outlets and
remaining 10% are knowing through other mode.

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5. How many vehicles/trucks do you have?

Answerer No. of Respondents

1-5 80

6-10 15

More then 10 5

Total 100

No. of responses

15

1-5
6-10
More then 10

80

Interpretation:

In this study 80% Respondents are having 1-5 Vehicles, 15%

people have 6-10 vehicles and only 5% people has more then 10
vehicles.

30 | P a g e
6. Are you satisfied with the service of fleet card?

a) YES.

b) NO.

Answerer No. of Respondents

Yes 63

No 37

Total 100

Responses

37%

Yes No

63%

Interpretation:

In this study 63% Respondents are satisfied with service of Fleet

card and remaining 37% are not satisfy.

31 | P a g e
7. Do you use your fleet card regularly?

a) YES.

b) NO.

Answerer No. of Respondents

Yes 71

No 29

Total 100

Responses

29%

Yes No

71%

Interpretation:

In this study 71% Respondents are using fleet card regularly and
remaining 29% are use occasionally.

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8. What improvements do you want IOCL Outlet?

a) Better services to the card holders.

b) More attractive offers.

Answerer No. of Respondents

Better services to the card

holders 72

More attractive offers 28

Total 100

Responses

28 Better services to the

card holders

More attractive offers

72

Interpretation:

In this study 72% Respondents are thinking better service from

IOCL outlet and remaining 28% go for attractive offers.

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9. Do you redeem your Xtra points regularly?

a) YES.

b) NO.

Answerer No. of Respondents

Yes 88

No 12

Total 100

Responses
12%

Yes No

88%

Interpretation:

In this study 88% Respondents are redeem reward point regularly

and remaining are not redeem.

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10. Do you tell the customer/fleet owner/driver about the IOCL outlet?

a) YES.

b) NO.

Answerer No. of Respondents

Yes 64

No 36

Total 100

Responses

36%

Yes No

64%

Interpretation:

In this study 65% Respondents are share service of IOCL outlets

and remaining 36% are not sharing same.

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11. Do the staff/attendants know how to operate the machine?

a) YES

b) NO

Answerer No. of Respondents

Yes 46

No 54

Total 100

Responses

46% Yes No

54%

Interpretation:

In this study 46% Respondents are know how to operate fuel

machine and 54% are not knowing same.

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12. Is the outlet well equipped with machine?

a) YES.

b) NO.

Answerer No. of Respondents

Yes 74

No 26

Total 100

Responses

26%

Yes No

74%

Interpretation:

In this study 74% Respondents are think outlet is well equipped

with machinery and 26% are not thinking same.

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SWOT Analysis For IOCL

External Environment

Opportunity:

The IOCL has much opportunity in the present market conditions. This
is because the petroleum products have become a need for everyone and
still Contains a lot of scope for customization. The various opportunities
are listed below.
Since the company has the maximum number of outlets and also
the maximum number of refineries in India, it can very easily go
for extension at any point of time, and can introduce any new
products, which will get support from its huge market network.

The company can make the buying process easier for the
customers, by implying many more schemes in the range of
XTRAPOWER Fleet Card.

The company can think over the issue to build its own pipelines, so
that it will be an independent player and it will also support its
aviation fuel supply.

Company has a great scope in E&P. It is already involved in E&P

but only in a very limited scale.

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 Threats:

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

The foreign players with more advanced technology are the biggest
threat for the company.

The crude oil supply is also a big issue in front of the company,
because the company cannot fix its price and so, some time had
operated in loss also It is the biggest problem because the
maximum part of their crude is been imported.

In future the market will welcome more private players, which will
eat up its market share.

If the Govt. Policies allow the private players to set their own
price, the private player can seriously harm the market share of
IOC

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Internal Environment:

Strengths:

IOC also acquired management control of the marketing

company IBP, thereby strengthening its position in these
activities. It also has a dominant share in all segments in terms
marketing infrastructure. Its network includes 19830 retail outlets,
8000 LPG distributors, and 6492 kerosene/LDO dealers.

By virtue of entering into extensive joint venture agreements, and

of its own initiative as well, the company has a presence in various
other related activities such as petroleum storage, pipelines, lube
additives, exploration, Petrocmicalhes, gas, training and
consultancy, etc.

The company has already entered overseas markets such as Sri

Lanka, Maldives, and Oman and is presently considering
entering Turkey through a JV. The company is in talks with
Caliak of Turkey to set up a 10 million TPA grass root
refinery with an investment of $2 billion and establish retail
business. IOC is also weighing the possibility of entering
Indonesia.IOC has also started exploring the overseas markets for
increasing its scope of operations. Its interests include
downstream activities in Sri Lanka, Maldives, Oman, and
Nepal; interest in the lubes business in Maldives, Dubai,
Bangladesh, Sri Lanka, etc; among others

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Weakness:

The company is the market leader in the industry, but still it had many
Weaknesses. The list is given below.

The major weakness for the company is the R&D. The company
starts working on it.

The petrochemical product development technology is another

weakness for the company.

The technological drawback, as compared to some major foreign

player is another weakness for the company

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Loyalty Programs- An Introduction

Loyalty programs are structured marketing efforts that reward, and

therefore encourage, loyal buying behavior —behavior which is
potentially of benefit to the firm.

Earning customer loyalty goes beyond gaining customer satisfaction.

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

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

Loyalty programs may offer benefits in a number of different ways.

Many loyalty programs offer a sustained discount (such as 10%) for a
period of time - perhaps a year, perhaps for the life of the business.
Others offer a discount once certain criteria have been met — for
example, a 20% discount on a single purchase once a customer has
spent Rs 2000 at the business. Still others offer points which may then
be redeemed for products which may or may not be directly related to
the business.
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 Loyalty cards are the most common form of loyalty programs found
throughout the world today. Some of the first loyalty programs were
instituted by airlines in the 1970s in the form of frequent flyer miles. In
these loyalty programs, one accrues points by flying on the airline
and then 'cashes in' the points in exchange for tickets, upgrades, or
even third-party benefits. In the past decade, many nonairline businesses
have combined their own loyalty programs with those of the airlines,
offering frequent flyer miles in exchange for everything from
telephone usage to purchasing gasoline.

Loyalty programs have gained in popularity immensely in the past

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

Ultimately, the success of loyalty programs depends on how well the

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

43 | P a g e
CONCLUSION:

As a business grow larger and as management becomes more remote

from the market place, marketing management has to rely more heavily
on marketing research as a managerial tool in solving any problem in the
field of marketing. Beginning and end of marketing is marketing
research.

Marketing research may be defined as the scientific and controlled

process of gathering of non-routine marketing information helping
management to solve marketing problems marketing research
concentrates on the study of product, planning and development, pricing
policies, effectiveness of personal selling, advertising and sales
promotion, distribution structure, market competition, buyer behaviour
etc.

IndianOil's business interests overlap the entire hydrocarbon value-chain,

including refining, pipeline transportation, marketing of petroleum
products, exploration and production of crude oil, natural
gas and petrochemicals.

IndianOil has ventured into alternative energy and globalisation of

downstream operations. It has subsidiaries in Sri Lanka (Lanka
IOC), Mauritius (IndianOil (Mauritius) Ltd) and the Middle East (IOC
Middle East FZE).

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

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

45 | P a g e
SUGGESTION:

 After the evaluation and findings some important suggestion are

revealed to the company.

 People are bothering about the day to day increament in petrol

prices which should be control.

 IOC must improve its advertisement to the xtrapremium and its

features in detail.

 IOC must advertise by products to the illiterate people by attractive

facilities and offers given to illiterate people.

46 | P a g e
FINDINGS:

After the evaluation, the information is revealed that the most of the users
are un aware of the product and its feature. Mostly un aware people are
from uneducated or low educated.

The people who are aware of the product and its feature are mostly
students and educated people. It is to be noted that, the people who are
aware of the product and its feature are mostly satisfied with the
performance of the products.

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50 | P a g e
BIBLIOGRAPHY

WEBSITE:

 WWW.IOCL.COM
 WWW.GOOGLE.COM

BOOKS

 ANNUAL REPORT OF IOCL.

 S.P.GUPTA, STATISTICAL METHODS
 C.R.KOTHARI, RESEARCH METHODOLOGY.
 MARKETING MANAGEMENT. KOTLER.

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