AMITY SCHOOL OF BUSINESS

AMITY UNIVERSITY UTTAR PRADESH NOIDA

CONSUMER BEHAVIOUR

Indian Oil Corporation Ltd.

Name of the Student: Rahul Agrawal

Enrollment Number: A3906416191

Class Roll Number: 42

Program:

Bachelors of Business Administration (General)

B.B.A (GEN)

Batch: 2016-19

Course: NTCC Dissertation

 DECLARATION BY STUDENT

This is to certify that I, Rahul Agrawal, a student of BBA of 2016

-2019 Batch, Amity School of Business, Amity University Uttar
Pradesh, Noida have worked under the guidance and supervision of Mr.
Rajesh Ku. Yadav for NTCC Dissertation.
This report has the requisite standard for the partial fulfillment of the
Graduate Degree in Bachelor of Business Administration (BBA). To the
best of my knowledge no part of this report has been reproduced from
any other report and the contents are based on original research.
I am aware that in case of non-compliance, Amity School of Business is
entitled to cancel the report.

Signature (Student)

Name of the student

–Rahul Agrawal
Enrollment No,
– A3906416191
Batch: 2016- 19
DECLARATION BY FACULTY SUPERVISOR

This is to certify that Mr. Rahul Agrawal Enrollment No.

A39064161091 a student of BBA in, 2016 -2019 Batch, Amity School
of Business, Amity University Uttar Pradesh, Noida has worked under
my guidance and supervision for the duration of NTCC Dissertation.
The report being submitted incorporates original work and research and
is being submitted as a partial fulfillment for the Graduate Degree in
Bachelor of Business Administration (BBA).

Signature
Name of Faculty Supervisor:
Mr. Rajesh Ku. Yadav
 ACKNOWLEDGEMENT

The Text for the report and Chapter Headings should be in Times New
Roman font size 14. The chapter headings should be Bold and in
Capital Letters only. The Subtopics should be Bold and numbered
according to section as shown in Table of Contents. The Report
should have spacing of 1.5 and Justified Alignment.
 EXECUTIVE SUMMARY

The Text for the report and Chapter Headings should be in Times New Roman
font size 1. The chapter headings should be Bold and in Capital Letters only.
The Subtopics should be Bold and numbered according to section as shown in
Table of Contents. The Report should have spacing of 1.5 and Justified
Alignment.
 TABLE OF CONTENTS
S.No. Topic Page No.
Declaration by Student
Declaration by Faculty
Acknowledgment
Executive Summary

1. Introduction about the Topic

1.1 Definition and Meaning
1.2 Nature of Customer Behavior
1.3 Scope of Consumer Behavior

2 Industry Review
2.1 Industry Introduction
2.2 Industry Market Size
2.3 Competitors In Industries

3 Company Review
3.1 Company Profile
3.2 Company Logo
3.3 Countrywide and Global Reach
3.4 Vision and Mission

4 Market Analysis
4.1 Four P’s Of IOCL
4.2 SWOT Analysis
4.3 Pattern of Consumption
4.4 Factor affecting the Consumer buying behaviour
4.5 Perception on importance of attributes of
infrastructure
4.6 Perception On Importance Of Tenets Of Service

5. Research and methodology

5.1 Objectives of the Study
5.2 Significance of the study
5.3 Scope of the study

6 Conclusions, Recommendations and

Limitations
6.1 Conclusions
6.2 Future Scope of Study
6.3 Limitations of the Study

1 INTRODUCTION ABOUT THE TOPIC

1.1 Meaning :-
Consumer behavior refers to how groups , organizations or
individual customers use ,select ,buy and dispose ideas ,goods ,and
services to satisfy their wants and needs. it refers to their actions and
their underlying motives. Marketers expect that by understanding that
what causes customers to buy products , they will be able to
determine that which products are needed in market and can give best
service for the same.
1.2 Nature of Consumer Behaviour:

The various factors that influence the consumer behaviour are as

follows:
a. The factors such as product design, price, promotion, packaging,
positioning and distribution.it includes all the marketing factors.

b. The factors such as age, gender, education and income level i.e.
personal factors.

c. Psychological factors such as buying aims, attitude towards the

product and perception of the product.

d. Situational factors such as physical and social surroundings at the

time of purchase and time factor.

e. Social factors which includes social status, reference groups and

family.

f. Cultural factors, such as social class—caste, sub-castes and most

importantly religion.

1.3 Scope of Consumer Behaviour:-

Demand Forecasting – Estimating the demand for the customer wants

for Product and Services.
Marketing – By this we can easily understand the expectation , need,
Problem of consumer, formulating Marketing mix Strategies.
Advertising – Understanding the behaviour of human toward the
different Advertising Appeals and messages, and can easily and select
the type of advertising media.

Human Behaviour – Understanding the various motives that presence in

customer behaviour.

Operations:- Formulation production. Pricing and distribution policies.

2 INDUSTRIAL REVIEW:-
2.1 Industry Profile:-

 Indian oil corporation Ltd. Comes under the Petroleum

Industry .”A fuel dealer”.

 The products of these industries are Fuel Oil and Gasoline

(Petrol).

 This Industry is among the six core Industries of India and plays
the most important role for the decision making of all the other
sector of Industries.

 The Indian Government allow 100% investment for the forgien

Direct Investment in this sector of Industries as it concern the
development of the country.
2.2 Market Size:-

India is one of the largest contributor to Non- OECD petroleum

consumption growth globally. Fuel consumption in India increased by
almost 10.8% to a 16 year high of 196.48 million tonnes.

India is the t fourth largest importer of the liquid Natural Gas (LPG)
after Japan, South Korea, China and account for more than 6% of
global trade. The domestic LPG demand is expected to grow at a
CAGR of 16.89% to 306.54 MMSCMD by 2021 from 64 MMSCMD

2.3 Competitors in Industry:-

1. Bharat Petroleum Limited

2. Hindustan Petroleum Limited
3. Realiance Petroleum Pvt. Ltd.
4. Essar Petroleum Pvt. Ltd.

3 COMPANY REVIEW

3.1 Company Profile:-

 Indian Oil Corporation is the Top leader of this Industry in term of

their sale and Investment to Indian Market.

 Indian Oil corporation has a sales turnover of Rs 4,38,700 crore

(USD 65,381) and a profit of Rs 19,106 crore (USD 2848 million)
for the year 2016 which hold a position of the India’s Largest
Commercial Enterprise.
  Indian oil corporation ranked 161st among the world’s largest
cooperates in the Prestigious Fortune ‘Global 500’ in the year 2016

 IndianOil 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.

 Earlier Indian Oil corporation was not not being included in the
Nifty50 index but after keep on rising share price and market
capitalization it is included in that.

3.2 Company LOGO:-

3.3 Countrywide and Global Reach:-

Indianoil’s Network almost entertain more than 46000 customer

touch point reaches petroleum to the every nooks and corner of the
India.

This company have more that 30,000 Petrol and diesel station (Filling
station) which include 6555 KSK’s (Kisan Seva kendra) in the rural
market.

The company had the largest customer Data in this Industrial filed of
Petroleum.

The company operates there subsidiaries in Srilanka, Mauritius and

UAE and also finding new opportunity to expand in Asia and Africa.

The company also formed about 20 joint ventures with reputed

business partners from India and abroad to pursue diverse business
interests. 

3.4 VISION AND MISSION

Indian oils vision is to expand across new world, to broaden its

horizon and to include new age dynamisms among its employees.

Most importantly, their Vision is infused with the core values of’”
Care, Innovation, Passion and Trust”’.
 Its vision is to become a globally admired company.  It is a matrix of
six cornerstones that would together facilitate the Corporation’s
endeavours to be ‘The Energy of India’.

4 MARKET ANALYSIS
4.1 Four P’s of Iocl:-

4.1.1 Product: -

Indian oil Corp. ltd. is one of the largest oil and gas companies across
the world based out of India. Indian oil accounts for the India’s half
Petroleum product market and presently they are across the
hydrocarbon value chain.  Indian Oil Corporation’s product portfolio
in its marketing mix includes: Indane gas, petrol, diesel, jet fuel, Auto
gas, Natural gas, lubricants & greases, kerosene, industrial fuels,
Bitumen, petrochemicals, crude oil and some other special products.
The Indian Oil offer various Petroleum and LPG product with their
famous brand name such as: -

1. Indane LPG

2. SERVO Lubricants

3. Autogas LPG

4. XtraPremium Petrol
 5. XtraMile Diesel

6. PROPEL petrochemicals

All these brands have a good brand image and customer awareness
and also considered as a super brand.

4.1.2 Price:-

As Indian Oil is a Public Company the price decision are taken by the
central Government of india after taking into consideration of all the
taxes and subsidies made available in its initiatives and other price are
decided by the company with market survey. The Indian Oil
corporation use geographical location Pricing strategies as there price
differ from the place to place.

The Price are segmented into three major segment which are Metro
Cities, State Capital, National Capital Region(NCR).

The IOCL Price fluctuate and moderate by the Change in the price of
Crude Price in the World

The Price of different categories :-

1. Petrol – Rs 66 to 78 per litre

2. Diesel – Rs 56 – 66 per litre

 3. AutoGas- Rs 33 – 42 per litre

4. ATF-

a. Rs 54000 – 58000 per KL for domestic

b. $557 - $602 per KL for international Airlines

5. Indane Gas -Rs 434-467 per 14.2kg Cylinder.

6. Servo Lubricants – Can not classifies as whole.

4.1.3 Place:-

Indian oil corporation has a wide Geographical Presence. The Indian

Oil corporation presence is much higher in number as if we compare
to the near competitor of their field. The Indian oil Corporation is
much concern with their Customer reach and availability. Indian oil
control over 10 refineries across the country more than 11000KM of
pipeline connecting to high demand places, 132 gas Pipelines and
more than 35000 customer touch point. The company have 21,000
Retail Outlets and have registered there name as the world’s highest
Outlets point. IOCL also mark their footprint with their subsidiaries
in SRI LANKA and MAUITIUS and UAE.
4.1.4 Promotion:-

Indian oil Corporation is an Maharatna Company and particularly

involved in the Market Advertising Activity. As this Company is a
Public Company they need not to much concert about the advertising
as also because there is not much heavy Competitive Environment.
The IOCL generally did not do a direct marketing. The Company
used to Collaborate with the Various Company like the Company
Collaborate with the Honda Motors to promote the Servo 4T Oil. The
company also introduce some Loyalty Programme like Fleet card in
which the customer earns points when every time they Refuel their
Vehicle. And also some Lucky Draw Offer for the customers. Now a
days the other competitor used to slashes their price like 1Rs per litre
to attract the customer which give a positive response to them and
effecting the IOCL.

4.2 SWOT ANALYSIS:-

It is an analysis of company strength, weakness, Opportunity and Treats

of the Company.
Strength:-

1. It is a largest Commercial Enterprise with Strong Brand Image.

2. It has an all type of range of Petroleum Products like Fuel,
lubricants and petrochemical etc.
3. The Company have Large no. of refineries.
4. Have a Best Distribution network across the country.
5. Have a Large No. of Retail Outlets across the company.
 6. The Company have a Good Back support of Employees over
35,000.
7. The Company have a Nice Brand Image.
8. Have their subsidiaries across the world.

Weakness: -

1. There is an High competitive Environment so because of that the

company have a limited share.
2. Because of the Public Company the enterprise can not freely
perform their Work.
Opportunities:-

1. IOCL can meet a increase of demand of the Market because of

their large infrastructure and big Stocking Capacity.
2. Company Can Increase their Market by tie-ups with the other
International Companies.
3. Company can use advantage of their Network for the other other
works.

Threats:-

1. High Degree of Control to the Government hand.

2. Highly Competitive environment leads to Limited market share of
the company.
3. Company cannot decide the price of their Products.
4.3 PATTERN OF CONSUMPTION:
a)Most of the consumers have their fixed outlet for the refuelling. The
selected petrol bunks vary from one to five. Majority (60%) of the
selective people chose 2 petrol bunks,26% of the people chose 1 petrol
bunk and 13% chose 3 petrol bunks to refuel.

b) Among the vehicle users, auto rickshaw drivers were highly selective
with 89.5%.Two wheeler riders and four wheeler riders had 69.8% and
62.5% selectivity respectively. c) Majority of the motorists ( 43%) prefer
IOCL, followed by BPCL with 32% and HPCL with 24.5% respectively.

c) Majority(71%) of the motorists prefer ordinary fuel compared to the

new concept of branded fuels like Xtramile, Xtrapremium

4.4 Factors Affecting Pattern Of Consumption:

a)The critical factor involved in attracting consumers is the Quality &
Quantity of fuel. 1t is the major driver of consumer behavior in the case
of fuel retailing. New concepts like loyalty programmes, non fuel outlets
are considered at the last.
b) Two wheeler riders ranked the most considered factor as the
proximity of petrol bunks to visited places. Quantity & Quality occupies
the second position followed by Driveway service.

c)In the four wheeler segment, Driveway service occupies the most
valued factor .The second position is occupied by brand image followed
by advice of friends.

d) Most of the motorists (65%) in the city are of the view that the
Quality & Quantity of the fuel is not the same at all fuel stations.

e) Majority of the people (70%) have above average trust on quality at

the selected petrol bunks

f) Age does influence the preference of the company, perception of

importance of Quality & Quantity of fuel as a factor for choosing a fuel
station, Education does not influence the ranking of the factors for
choosing a fuel station. Company loyalty does influence the preference
of non fuel outlets and loyalty programmes as a factor for choosing fuel
station.
g) In the case of two wheeler category, smooth running is the most
preferred attribute of function followed by mileage. In the four wheeler
category ,maintenance gains importance with the above factors.

4.5 Perception On Importance Of Attributes Of Infrastructure

Among the attributes of infrastructure, Paved driveway is comparatively

considered important. Size of the petrol bunk, Canopy/shelter,
Illumination are considered more or less equally important. Multiproduct
dispensers receive above average but relatively less importance than all
the other attributes. Age does influence the perception of importance of
the illumination. Education does not influence the perception of
importance of all the attributes of infrastructure.

4.6 Perception On Importance Of Tenets Of Service:

a)Among the tenets of service, courteous behavior of the forecourt

attendants is the most important .Uniform for attendants and presence of
forecourt supervisors acquire above average importance. presence of
dealers is preferred on an average scale.
b) Among the additional services rendered, air pressure check is
considered as a very high need of the petrol bunk. Wind shield cleaning
is considered as highly important.
c) Majority of the motorists preferred self service stations in the city. A
relatively large proportion are not in favour of such bunks.

4.7 The Various other facility that effect the consumer Buying
behaviour:-

5 RESEARCH AND DESIGN METHODOLOGY

This chapter describes the methodology of the study. This project is

based on information collected from the primary and secondary sources.
After the detailed study, an attempt has been made to present
comprehensive analysis of consumption of Petroleum Bunks consumed
and for the customer Buying Behaviour for the analysis of market
share of IOCL. The data had been used to cover various aspects like
consumption, consumer's preference and customer's satisfaction
regarding Petroleum Bunks.

5.1 Objectives of the Study:

• To study the Consumption pattern of Consumer in Our country.
• To study the factors playing major rule in the fuel Consumption
• To study the Various expectations and perceptions of the consumers
with respect to fuel stations
• To study the major hitch backs faced by the fuel consumers.

5.2 Significance of the study:

The research carried out is based on the concept of consumer behavior.
It is valuable to a marketer in retaining the market and increasing the
market share. Petroleum marketing in India is characterized by severe
competition. In such a case, it is important to look beyond the Regular
product quality and Quantity. The oil marketing companies are in to
focusing of non fuel services to withstand the competition. It is very
important to know about the perception of such ventures by the average
consumers. In other words, this study tries to strike a balance between
the perception of consumers and the companies.
5.3 Scope of the study:
The study can be used by the marketers of the IOCL to focus on the
most valued factor of the consumer.
The companies can improvise on the data and increase market share.

6 CONCLUSIONS, RECOMMENDATIONS AND

LIMITATIONS

6.1 Conclusion
The survey showed that the primary consideration was quality and
quantity of the fuel. The IOCL should start considering their service,
mileage etc to increase their market share. An equally important criteria
was the distribution network of the retail outlets. Two wheelers
primarily consider the mileage and smooth running and Four wheelers
tend to consider the maintenance than quality &quantity, So by keeping
that factor in mind the should take a proper step to capture the market.
The customer show major interest in brand image and the company have
to maintain their Brand Image. The consumers perceive that there is a
relationship between maintenance and quality of the product. The
funding to such infrastructural elements shall not be constrained by
economics. The new concepts such as branded fuel ,non retail outlets at
fuel stations are not popular with the people. This may be attributed to
causes like lack of time and conservatism (i.e resistance to change). The
benefits shall be familiarized by promotions in the local media
.Techniques like penetrative pricing, discounts etc. may help in the
gaining of marketshare. The concept of facilitated petrol bunks is young
in the minds of the people: constant advertising, effective maintenance
of the retail outlets may position these innovations in their mind
comfortably.

6.2 Future Scope of Study:-

 The company can use the study for their marketing strategy.
 The company get to know about the consumer’s Perception for
the product.
 It can also be used to analyze the growth or decline rate.
 The better and close view of consumer need can be examine.

6.3 Limitation Of the study:-

 The company can not use the study to change their whole market
strategy on bases of this study.
 May be the respond of the customer is have some biases.
 Only the limited area Customer behavior has been.