PROECT REPORT

On

CRM AND LOYALITY PROGRAM IN IOCL

Synopsis submitted in partial fulfillment of requirements for

Bachelors of Business Administration

Foreign Trade

Submitted to (Mentor) : Submitted by:

Dr. Rajeev Sharma GayatriTandon
Program Head BBA
BBA Foreign Trade 500035464
 CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the dissertation report on CRM AND LOYALITY PROGRAM IN IOCL
completed and submitted to University of Petroleum and Energy Studies, Dehradun by
GayatriTandon in partial fulfillment of the provisions and requirements for the award of degree of
BACHELORS OF BUSINESS ADMINISTRATION ), 2014-2017 is a bonafide work carried by
the scholar under my supervision and guidance.

To the best of my knowledge and belief the work has been based on investigation made,
data collected and analyzed by the scholar, and this work has not been submitted anywhere else for
any other university or institution for the award of any degree/diploma.

(Lecturer CMES)

(UPES, Dehradun)
 ACKNOWLEDGEMENT

First and foremost, I would like to thanks my respective mentor Dr. Rajeev Sharm (Lecturer -
CMES) for his valuable guidance and encouragement throughout my research project on Indian
Tourism and Hospitality Industry Analysis. His expertise, enthusiasm, and dedication for work
have been constant source of motivation for me.

I would like to express my deep gratitude to University of Petroleum and Energy Studies
for extending the opportunity of undergoing the project and providing with all necessary resources
and expertise needed for completion of the project.

I also convey special thanks to Mr Head of Department (International Business) for

his extended support throughout the project.

GAYATRI TANDON

Enroll no.

BBA Foreign Trade

 Introduction to the project:

In the present world where there is intense competition, it becomes very necessary to
retain loyal customers. The commercial benefits of loyal customer are well known by the
brand managers the cost of acquiring a new customer is always more than retaining an
old customer. Loyal customer 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 brand 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 from? With increasing oil price and competition
increasing at a rapid pace, many oil- marketing companies are finding it difficult to
operate profitable in India. Indian oil corporation ltd, is no exception to this reality, thus
to reaction its existing customer, many new imitative have been adopted by the
organization. One such big idea is extra power loyalty program.

In this project we have been assigned IOCL , which are participating in the extra power
loyalty program, our task is to promote and sell the extra power fleet card to the
customer and at the same time obtain the customer opinions and suggestion about
loyalty program. Trapping local alliances is another aspect of this project. At the same
time, we have to check whether the retails outlets are carrying out implementation of the
loyalty program in the right way.

INTRODUCTION TO CRM
 [CUSTOMER RELATIONSHIP
MANAGEMENT]

A CRM is a collection of people, processes, software, and internet capabilities that helps an
enterprise manage customer relationship effectively and systematically. The goal of CRM is to
understand and anticipate the needs of current and potential customer to increase customer
retention and loyalty while optimizing the way product and services are sold.

CRM stands for Customer Relationship Management. It is a strategy used to learn more about
customers' needs and behaviors in order to develop stronger relationships with them. After all,
good customer relationships are at the heart of business success. There are many technological
components to CRM, but thinking about CRM in primarily technological terms is a mistake.
The more useful way to think about CRM is as a process that will help bring together lots of
pieces of information about customers, sales, marketing effectiveness, responsiveness and
market trends

The objective is to capture data about every contact a company a company has with a customer
through every channel and store it in the CRM system to enable the company to truly
understand customer action. CRM software helps an organization build a database about its
customer that management, sales people, customer service provider and even customer can
access information to access customer needs with product and offering.

Marketing Automation is the most comprehensive campaign management solution available.

It provides everything needed to turn raw, disparate customer data into profitable marketing
campaigns all the way through inception, execution and measurement.

Marketing Optimization applies sophisticated mathematical approaches to optimize

marketing campaign ROI given limited budgets, channel capacities and other organizational
constraints.

The idea of CRM is that it helps businesses use technology and human resources to gain insight
 into the behavior of customers and the value of those customers. If it works as hoped, a
business can:

Provide better customer service

Make call centers more efficient
Cross sell products more effectively
Help sales staff close deals faster
Simplify marketing and sales processes
Discover new customers
Increase customer revenues

ARCHITECTURE OF CRM

There are three parts of application architecture of CRM:

1. Operational - automation to the basic business processes (marketing, sales, service)

2. Analytical - support to analyze customer behavior, implements business intelligence
alike technology
3. Collaborative - ensures the contact with customers (phone, email, fax, web, sms, post,
in person)

Operational CRM

Operational CRM means supporting the so-called "front office" business processes, which
include customer contact (sales, marketing and service). Tasks resulting from these processes
are forwarded to employees responsible for them, as well as the information necessary for
carrying out the tasks and interfaces to back-end applications are being provided and activities
with customers are being documented for further reference.

According to Gartner Group, the operational part of CRM typically involves three general areas
of business:
 Sales Force Automation ( SFA): SFA automates some of the company's critical
sales and sales force management functions, for example, lead/account management,
contact management, quote management, forecasting, sales administration, keeping
track of customer preferences, buying habits, and demographics, as well as sales staff
performance. SFA tools are designed to improve field sales productivity. Key
infrastructure requirements of SFA are mobile synchronization and integrated product
configuration.

Customer Service and Support ( CSS ): CSS automates some service requests,
complaints, product returns, and information requests. Traditional internal help desk and
traditional inbound call-center support for customer inquiries are now evolved into the
"customer interaction center" (CIC), using multiple channels (Web, phone/fax, face- to-
face, kiosk, etc). Key infrastructure requirements of CSS include computer telephony
integration (CTI) which provides high volume processing capability, and reliability.

Enterprise Marketing Automation (EMA): EMA provides information about

the business environment, including competitors, industry trends, and
macroenviromental variables. It is the execution side of campaign and lead
management. The intent of EMA applications is to improve marketing
campaignefficiencies. Functions include demographic analysis, variable segmentation,
and predictive modeling occur on the analytical (Business Intelligence) side.

Analytical CRM

In analytical CRM, data gathered within operational CRM and/or other sources are analyzed to
segment customers or to identify potential to enhance client relationship.

Analysis of Customer data may relate to one or more of the following analyses:

1. Contact channel optimization

2. Contact Optimization
3. Customer Segmentation
4. Customer Satisfaction Measurement / Increase
 5. Sales Coverage Optimization

6. Pricing Optimization
7. Product Development
8. Program Evaluation

Data collection and analysis is viewed as a continuing and iterative process. Ideally, business
decisions are refined over time, based on feedback from earlier analysis and decisions.
Therefore, most successful analytical CRM projects take advantage of a data warehouse to
provide suitable data.

Collaborative CRM

Collaborative CRM facilitates interactions with customers through all channels (personal, letter,
fax, phone, web, e-mail) and supports co-ordination of employee teams and channels. It is a
solution that brings people; processes and data together so companies can better serve and
retain their customers.

Collaborative CRM provides the following benefits:

Enables efficient productive customer interactions across all communications channels

Enables web collaboration to reduce customer service costs
Integrates call centers enabling multi-channel personal customer interaction
Integrates view of the customer while interaction at the transaction level

BENEFITS OF CRM SYSTEM

Give customer-facing employees the best tools available

Give your sales and service professionals the chance to deliver stellar customer service every
time they are in a call or at a customer site. With optimally configured software solutions from
Microsoft Business Solutions, they can find information quickly, answer customer questions
satisfactorily, and ensure that your business fulfills or exceeds customer commitments.

The major objectives of the project are:-

 To study the IOCLL loyalty program .

To study the loyalty between the local customers and the company.
To study the benefits provided by IOCLL to the local customers.
To study how IOCLL tap local alliance partners for xtra Power Fleet Card.
To obtain customer opinions and suggestions at IOCL retail outlets and give recommendations to
IOCL to improve the implementation.

To study the comparative analysis between the loyalty card benefits of other marketing
company.
To become known to real market.
TO gain real experience of market that how corporate persons work.
To check our theoretical knowledge with comparison to the practical market demands.
It gives us an opportunity to apply our thinking, idea, knowledge in real market.
To enhance our skill and gain experience to be a true professional.
To check our interpersonal skills.
To learn necessary managerial skills and positive attitude towards your work.
 REVIEW OF LITERATURE

CRM

CRM has been one of the most talked subjects recently in

corporate circles. It is a strategy used to learn more about
customers needs and behaviors in order to develop stronger
relationships with them. Over all good customer relationships are
at the heart of business success. The concept of CRM has been a
core concept which has attracted all facets of business. CRM has
relevant and demanding applications in service marketing. Retail
banking and financial services have also not been an exception to
this phenomenon.

CRM in the field of retail banking has attracted much of

researchers and practitioners. There has been continuous research
in the field of CRM and its applications in banking and financial
services. But in India, research in the field of relationship
marketing has not taken off to the expectation and is still in the
infant stage when compared to other countries in the west.
However, the available contribution from the following authors
and researchers in India and other parts of the world in the area of
CRM in retail banking is worth mentioning. Hence, the empirical
works relating to relationship management of the review is
presented in this chapter.

Jagan Mohan Rao (1993)2 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 industrys overall profit
performance was subjected to inconsistency and
ineffective.

Kallu Rao (1993)3 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.

Vijayakumar and Venkatachalam (1995)4 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
andcash turnover ratio had influenced the profitability
of sugar industry in Tamil Nadu.

Pai, Vadivel and Kamal (1995) 5 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.

Vijayakumar (1996)6 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.

Sidhu and Gurpreet Bhatia (1998)8 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)9 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.

Govinda Rao and Mohana Rao (1999) 11 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-Pearsons 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 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)12 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
 Sudarsana Reddy (2003)21 studied the Financial
Performance of Paper industry in AP. The main objectives
set for the study are to evaluate the financing methods and
practices to analyze the investment pattern and utilization
of fixed assets, to ascertain the working capital condition,
to review the profitability performance and to suggest
measures to improve the profitability. The data collected
have been examined through ratios, trend, common size,
comparative financial statement analysis and statistical
tests have been applied in appropriate context. The main
findings of the study are that A.P. paper industry needs the
introduction of additional funds along with restructuring of
finances and modernization of technology for better
operating performance.

Ram kumar Kakani, Biswatosh Saha and Reddy

(2003)22 attempts to provide an empirical validation of the
widely held existing theories on the determinants of firm
performance in the Indian context. The study uses financial
statements and capital market data of 566 large Indian firms
over a time from of eight years divided into two sub-periods
(1992-96 and 1996- 2000) and to study Indian firms financial
performance across various dimensions viz., shareholder value,
accounting profitability and its components, growth and risk of
the sample firms. The study found that size, marketing
expenditure and international diversification had a positive
relation with a firms market valuation. The study also found
that a firms ownership compositions, particularly the level of
equity ownership by domestic financial institution and
dispersed public shareholders, and the leverage of the firm
were important factors affecting its financial performance.

RESEARCH METHODOLOGY

Sources of Data for Marketing Strategies:

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.
Asansol and nearby region. The name of the retail outlets of Indian oil from where these data are
collected are.
)

Secondary data:

Companys annual reports

Companys journal and magazines
Companys website
Companys leaflets
Companys pamphlets
Products and sales report

Sampling plan:-

The sample size for retailer is 7 and that of customers is 200 Durgapur region. The respondents are
chosen through cluster sampling universe elements are chosen in group rather than individually. Where as
convenience sampling is based on opportunism.
VISION OF INDIAN OIL CORPORATION LTD

Vision:

A major, diversified, trans-national, integrated energy company, with national leadership and a
strong environment conscience, playing a national role in oil security & public distribution

Global Compact Principles addressed in our MISSION statement:

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 quality of life of the community and preserve ecological balance and
heritage through a strong environment conscience.
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.
OVERVIEW OF INDIAN OIL COROPORATION LTD .

Indian Oil Corporation (IOCL), established in 1959, is engaged in exploration and production
and marketing of oil. It is Indias largest company sales wise with a turnover of Rs 2,47,479
crore ($ 59.22 billion).IOCL has sub diaries namely Indian oil Technologies, Chennai Petroleum
Corporation, Bongaigaon Refinery & Petrochemicals, Indian Oil (Mauritius) and Lanka IOCL.

Out 19 refineries, IOCL owns and operates 10 with a combined capacity of capacity of 60.2
million metric tones per annum (MMTPA), i.e. 1.2 million barrels per day. It has 166 bulk
storage terminals and depots, 101 aviation fuel station and 89 Indane bottling plants.

The refining major has a countrywide network of petrol and disel stations with 17,600 retail
outlets. Its Indane cooking gas network has apresence in 50 million households through its
distribution network of 5,000 distributorsIt provides spectrum of petroleum products through its
retail outlets like Xtra Care (Urban), Swagat (Highway) and Kisan Seva Kendras (Rural).

IOCL provides auto gas, aviation turbine fuel, bitumen-a binder used for road construction, high
speed diesel, bulk industrial fuels like furnance oil, Indane gas, Servo Lubricants and greases and
special products like benzene and surplur.

It has created brands like Indane LPG, Servo Lubricants, Auto gas LPG, Xtra Premium Branded
Petrol, Xtra Mile Branded Diesel, and Xtra Power Fleet Card.

IOCL and GAIL have signed a memorandum of understanding for cooperation in setting up a Rs
10,000 crore petroleum plant at Barauni in Bihar.Indian Oil launched its lubricant brand Servo in
Oman. Servo has 500 different grades and 1200 varied formulations.IOCL is the highest ranked
Indian company In Fortune Global 500 list. It is 18th largest petroleum company in the world.
It is Indias most trusted fuel pump brand as per the survey conducted by ET brand equity and
AC Nielsen. It has received National Award for Innovation in Implementing Business
Continuity for SAPR/3 Environment from the Government of India.
INDIAN OIL CORPORATION LTD PRODUCT

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

The Retail Brand template of IOCL consists of Xtra Care (Urban),Swagat (Highway) and Kissan Seva
Kendras (Rural). These brands are widely recognized aspioneering brands in the petroleum retail segment.
Indian Oils leadership extends to its energy brands - Indane LPG, SERVO Lubricants, Auto gas LPG, Xtra
Premium Branded Petrol, XtraMile Branded Diesel, Xtra Power Fleet Card, Indian Oil Aviation and Xtra
Rewards cash customer loyalty program me.

1) INDANE GAS:-

Indane is today one of the largest packed-LPG brands in the world and has been conferred the
coveted consumer super brand; status by the super brands council of India.

bringing about a kitchen revolution spreading warmth and cheer in millions of households with
the introduction of the clean and efficient cooking fuel. It has led to a substantial improvement in
the health of women, especially in rural areas by replacing smoky and unhealthy chulha, indane
is today an ideal fuel for modern kitchens.

With the status of an exclusive business vertical within the corporation the indane network
delivers 1.2 million cylinders a day of the doorsteps of the over 53 million households, making
Indian oil the second largest markets of LPG globally, after SHV gas of the Netherlands, indane
is available in compact 5kg cylinders for rural, hilly and inaccessible areas, 14.2kg cylinders for
domestic use, and 19 kg and47.5kg for commercial and industrial use.
 1) AUTO GAS:

Auto Gas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is obtained from
natural gas through fractionation and from crude oil through refining. It is a mixture of petroleum
gases like propane and butane. The higher energy content in this fuel results in a 10% reduction
of CO2 emission as compared to MS.

Auto Gas is a gas at atmospheric pressure and normal temperatures, but it can be liquefied when
moderate pressure is applied or when the temperature is sufficiently reduced. This property
makes the fuel an ideal energy source for a

wide range of applications, as it can be easily condensed, packaged, stored and utilized. When
the pressure is released, the liquid makes up about 250 times its volume as gas, so large amounts
of energy can be stored and transported compactly. The use of LPG as an automotive fuel has
become legal in India with effect from April 24, 2000, albeit within the prescribed safety terms
and conditions. Hitherto, the thousands of LPG vehicles running in various cities have been
doing so illegally by using domestic LPG cylinders, a very unsafe practice. Using domestic LPG
cylinders in automobiles is still illegal. The fuel is marketed by Indian Oil
under the brand name Auto Gas "Indian Oil
has setup 350 Auto LPG Dispensing Stations (ALDS) covering 192 cities across India

1) Natural gas:

Drawing on its vast experience and carefully nurtured skill sets, Indian Oil has made successful
forays in diverse areas such as Natural Gas, Petrochemicals, Exploration & Production,
Renewable Energy, etc.
Over the years, Natural Gas has emerged as the 'fuel of choice' across the world. It is steadily
replacing traditional fossil fuels due to its environment friendly characteristics which help in
meeting the stipulated automobile emission norms. Natural Gas has significant cost advantages
over fuels such as Naphtha and commercial LPG. Demand for Natural Gas in India is primarily
driven by the fertilizer and power sectors, which account for almost two-third of the countrys
gas consumption.
Automotive gasoline and gasoline-oxygenate blends are used in internal combustion spark-
ignition engines. These spark ignition engine fuels are primarily used for passenger cars. They
are also used in off-highway utility vans, farm machinery and in other spark ignition engines
employed in a variety of service applications

Gasoline is a complex mixture of relatively volatile hydrocarbons that vary widely in chemical &
physical properties and are derived from fractional distillation of crude petroleum with a further
treatment mainly in terms of improvement of its octane rating. The hundreds of individual
hydrocarbons in gasoline range from c4 to c11.

1) DIESEL/GAS OIL:

Diesel is used in diesel engines, a type of internal combustion engine. Rudolf Diesel originally
designed the diesel engine to use coal dust as a fuel, but oil proved more effective. Diesel
engines are used in cars, motorcycles, boats and locomotives. Automotive diesel fuel serves to
power trains, buses, trucks, and automobiles, to run construction, petroleum drilling and other
off-road equipment and to be the prime mover in a wide range of power generation & pumping
applications. The diesel engine is high compression, self-ignition engine. Fuel is ignited by the
heat of high compression and no spark plug is used.

2) ATF/JET FUEL:

Indian Oil Aviation Service is a leading aviation fuel solution provider in India and the most-
preferred supplier of jet fuel to major international and domestic airlines. Between one sunrise
and the next, Indian Oil Aviation Service refuels over 1500 flights from the bustling metros to
the remote airports linking the vast Indian landscape, from the icy heights of Led (the highest
airport in the world at 10,682 ft) to the distant islands of Andaman & Nicobar. Jet fuel is a
colorless, combustible, straight-run petroleum distillate liquid. Its principal uses are as jet engine
fuel. The most common jet fuel worldwide is a kerosene-based fuel
IOCL SERVICES

Indian Oil has wide-ranging expertise in setting up and operating Greenfield refineries and
Brownfield expansions. It has pioneered pipeline transportation know how in India, and has over
four decades of experience in putting up marketing infrastructure across the sub-continent, to
reach petroleum products to millions of people every day. Backed by cutting edge R&D that
offers innovative products, technologies and services covering the entire gamut of downstream
operations. Indian Oil has been lending its expertise for nearly two decades to various countries
in several areas of refining, marketing, transportation, training and R&D. These include Sri
Lanka, Kuwait, Bahrain, Iraq, Abu Dhabi, Tanzania, Ethiopia, Algeria, Nigeria, Nepal, Bhutan,
Maldives, Malaysia and Zambia. Indian Oils capabilities in the downstream sector of operations
in the oil sector include; Technical and Consultancy Services, Operation & Maintenance,
Techno-Economic feasibility/special studies, Turnaround Maintenance planning, monitoring &
execution, Inspection, Quality Control: benchmarking, Shipping and Commercial, Logistics,
Research & Development, Safety and Industrial hygiene, Quality Auditing/ Management,
Materials Management, Training.

Indian Oil's Retail Brand template of Xtra Care (Urban), Swagat (Highway) and Kisan Seva
Kendras(Rural) are widely recognized as pioneering brands in the petroleum retail segment.
Indian Oil's leadership extends to its energy brands - Indane LPG, SERVO Lubricants, Autogas
LPG, XtraPremium Branded Petrol, Xtra Mile Branded Diesel, Xtra Power Fleet Card, Indian
Oil Aviation and Xtra Rewards cash customer loyalty programme.
Strengths:-

IOCL controls 10 refineries, by virtue of which it has total share of around 47% of
India overall refining capacity.
Has around 50% petroleum products
Huge distribution network through retailing
Accounts for a 47% share in the petroleum products market, 34.8% share in refining
capacity and 67% downstream sector pipelines capacity in India.
Has over 35,000 employees
Loyalty programs like XTRAPOWER Fleet Card Program is aimed at Large Fleet
Operators.

Weakness:-

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

Legal issues

Employee management

Bureaucracy

Volatility in the crude market & subsidy burden

Opportunity:-

The IOCLL has much opportunity in the present market condition. This is because the petroleum products
have become a need for everyone and still contains a lot of scope for customization.
Thevariousopportunitiesarelistedbelow.

Increasing fuel/oil prices

Increasing natural gas market
More oil well discoveries
Expand export market

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 IOCL.
 LOYALITY PROGRAM 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 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
beenmet.
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 onthe airline
andthen 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 purchasinggasoline.

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.

An Integral part:-

The immense competition is making the loyalty programs an integral program of business of day
to day functioning of petro-retailing. Right now many such loyalty programs are run by the
petro-retailers like XTRAPOWER (IOCLL), EXTRAREWARDS (IOCLL), SMART
FLEET (BPCL),PETRO CARD (BPCL), and DRIVE TRACK (HPCL).

However, these programs are mainly focused at the bulk consumers. But the small consumers
are being also provided these types of facilities.
 CUSTOMER RELATIONSHIP MANAGEMENT AND LOYALTY PROGRAM

Customer relationship management (CRM) can be widely defined as:

Company activates related to developing and retaining customers. It is a blend of internal

business process: sales ,marketing and customer support with technology and data capturing
techniques, customer relationship management is all about building long term business
relationship with customer loyal customer more profitable ,any company will like its mindshare
status to improve from being a support to being an advocate, company has to invest in term of its
product and service offering to its customers, it has to innovate and meet the very needs of its
clients/customers so that they remain as advocates on loyalty curve.

With growing competition in the petro-retailing sector, todays consumer is becoming more and more
demanding. The emergence of new psychographic segments in petro retail market bears the testimony to
this fact. A closer look at these segments tells us what exactly a consumer is looking for whenever
he goes to a fuel station to purchase fuel. He looks for-Quality & Quantity assurance Quick filling and
efficient forecourt service Rewarding loyalty Premium fuels Cashless transactions Non - fuel services. The
immense competition will make loyalty programs an integral program of the day-to-day functioning of
petro-retailing. Of course, right now many such loyalty programs are being run by the petro-retailers like
Secunderabad, with plans to reach other cities soon. The loyalty programme rewards customers
paying by cash, credit and debit cards. Each transaction is confirmed online through a charge slip
and customers can earn points on fuel/lube purchases at participating Indian Oil retail outlets.
Additional points can also be earned outside the Indian Oil network, covering prominent FMCG,
Food, Automobile, Travel, Entertainment, Apparel and Hospitality sectors. Apart from redeeming
the accumulated points instantly on fuel / SERVO lubricants at participating retail outlets, card-
holders can also redeem the points to get exciting gift items from a catalogue. The redemption on
gifts can be registered either from the participating retail outlets or from the comfortable confines
of one's home through the 24x7 IVRS Help Line (1800 22 4111). The programme continuously
provides the cardholder with privileges, benefits and offers from a large number of alliance
partners, including restaurants, pizza companies, automobile service stations, jewellers, and
online shopping companies.

Indian Oil's XTRAPOWER Fleet Card Program is a complete Fleet Management Solution for the
Logistics Industry. With more than 23 lakh vehicles covered so far by the fleet card program,
XTRAPOWER is the ideal choice for large logistics service providers, small fleet operators
and corporate customers who need complete control over their fleet. XTRAPOWER is a
smart chip based fleet card program, where you get a smart chip fleet card for each of your
vehicle. This smart chip based fleet card comes as Pre Paid or Credit depending on your choice.
Purchase fuel through cashless transaction from the largest fuel retail network in India. Exercise
complete control of your fleet through XTRAPOWER Fleet Card.

Extra power fleet card

Largest Network of Retail Outlets pan India (Including very remote and rural
locations)
Cashless transactions
Instant MIS
Easy Online Fleet Management
Easy Cash Flow Management CCMS Recharge
RTGS / NEFT / Online funds transfer or Pay at Pump
SMS Alerts for transactions
Manage fleet account by SMS
24 X 7 Toll free Helpline
24 X 7 XTRAPOWER Service Centers to assist your crew
Generic Card Option
No need to wait Ready to use - OTC Cards available for instant fleet
management.
 Fleet card other features

Easy Fleet Management:-

Limits available in XTRAPOWER Fleet Program like Transaction, Daily and Monthly
and One Time limits on Fleet Cards help you gain total control over the fuel spend of
your fleet thereby ensuring total peace of mind.
You can also exercise more control on Products that can be purchased through your fleet
card or Retail Outlets where your fleet should purchase.
Should you lose your fleet card, you can instantly block the card for further transactions
giving you total security

Rewards - Free Fuel & Gifts:-

Every time you buy fuel / lubes through fleet card from select retail outlets of Indian Oil, you
earn incentives in the form of XTRA points. You can accumulate these reward points and
redeem for free fuel instantly at our retail outlets or for other gift items. Only the customer can
redeem the rewards through a special Control Card Number and PIN.

Tracking:-

You can keep track of your fleet by logging on to our website www.IOCLxtrapower.com. As
XTRAPOWER member you can view the tracking report for your vehicles as well as
transactions made on each of your fleet cards for any period.
Easy Cash Flow Management:-

XTRAPOWER offers you an excellent tool for enhancing your cash flow utilization.

Through CCMS recharge, cash deposited at our retail outlet by your representative in any
location will be available for use for any of your vehicles instantly. For example, your
driver can deposit the cash collected at Delhi in nearest Indian Oil Retail Outlet with
Fleet Card facility, you can utilize the same funds instantly for any of your vehicle
anywhere.

Insurance Benefits:-

XTRAPOWER Fleet Program offers Insurance benefits like -

Road Personal Accident Insurance of Rs. 50,000 per card to fleet owner up to a maximum
of Rs. 20,00,000/-; For Drivers - Rs 1,00,000; Helper - Rs. 50,000/-
Road Accident related Medical Insurance during the period of Insurance coverage* (a)
Owner: Rs.10000/- per card subject to maximum of Rs.1, 00,000/-, (b) Driver:
Rs.10000/-
, (c) Co-Driver: Rs.10000/- and (d) Helper-cum-cleaner: Rs.10000/-. This benefit is
available only for hospital expenses incurred for injuries arising from road accidents only.
(*Terms and conditions apply.)

DRIVER CARDS: DRIVERS are insured against enrolled Driver cards. Drivers must
have a Valid Driving License and should be driving at least an LMV involved in a road
accident to be eligible for the claim.
So far, about Rs. 2, 00, 00,000 of benefits have been settled rendering financial and social
security to the kin of truck crew. This kind of claim settlement is unique and unmatched
in the industry.
Care for your Truck Crew:-

The Program's Driver specific initiatives like Doctor at Door step offers free health
checkup to driving members during special occasions when they come for refueling their
vehicles .
With tie up from reputed hospitals, the program offers free health checkups at our retail
outlets for your driving members.

During such health checkup programs, General Health Check Ups like free
identification of blood group, blood pressure, blood sugar levels, General counseling
by expert doctors with provision of free medicines are administered.
Eye Check Ups are also conducted in association with reputed Eye Hospitals and
provide free spectacles and also free cataract operations wherever required.
 QUESTIONNAIRE

1) Do you visit the IOCLL fuel station regularly?

o Yes
o No
o Sometimes

2) What is the usual mode of payment?

o Cash
o Xtra power fleet card
o Credit/debit card

3) Do you know about the Xtra Power fleet card?

o Yes
o No

4) From where did you come to know about the fleet card program?
o Advertisement
o Newspaper
o IOCLL retail outlet
o Magazine
o Others..

5) How manyvehicles/trucksdo youhave?

.

6) Are yousatisfiedwith the service of fleet card?

o Yes
o No
o Partly satisfied

7) Do youuse yourfleet card regularly?

o Yes
o No
o Sometimes
 P a g e | 45

8) Whatimprovements doyouwant in thefleet cardloyaltyprogram?

o Better services to the cardholders
o More attractive offers
o Others.