indianoil corporation
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DECLARATION
I hereby declare that the Dissertation entitled A study to analyze the effectiveness of
XTRAPOWER Fleet Card Loyalty Program in retention of customers in IndianOil
Corporation Limited, with special reference to Cochin Office submitted in partial
fulfillment of the requirements for the award of the Degree of Business Administration is
a record of original research work done by me under the supervision & guidance of Mr.
Sajoy P.B. and the Dissertation has not formed the basis for the award of any
Degree/Diploma/ Associate ship / Fellowship or other similar title to any candidate of
any university.
Place:Date: Audrey Martina Alex
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ACKNOWLEDGEMENT
No endeavor is complete without expressing the gratitude that is due for all those who
have contributed in many ways to it. There are many individuals whom I wish to thank
for helping me in the various stages of this research project from the conception to
completion.
At the outset, I would like to thank our principal Rev. Fr. John Therezath CMI for
allowing me to do this project.
I wish to take this opportunity to express my gratitude to Mr.Sajoy P B, my project guide
for his interest and guidance in the successful completion of this project.
I also express my thanks to Mr. P.K George, Head of Department, for his valuable
guidance. I am also thankful to all the teachers for helping and guiding me to do the work
successfully.
My heartfelt thanks to Ms. Narshia Thomas, DY. Manager (Fleet Marketing), Cochin
Divisional Office, for giving me an opportunity to do the project at INDIANOIL
CORPORATION LTD., and for her valuable ideas that helped me to complete this
project in a successful manner.
This work would not have been complete without the participation of the respondents
who were patient enough to spend some time for me.
Last but not the least, I express my heartfelt thanks to my parents, sisters and friends forproviding me their help and support.
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LIST OF TABLES
S. No Table No. TITLE Pg No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
3.12
Showing if the respondent is a single user/multi
user.
Showing the number of vehicles owned by the
respondents.
Showing the number of respondents who are
aware of the XTRAPOWER Fleet Card
Loyalty Program.
Showing the number of respondents who are
members of the XTRAPOWER Fleet Card
Loyalty Program.
Showing how respondents came to know about
the XTRAPOWER Fleet Card Loyalty
Program.
Showing how respondents rate Cashless
fuelling.
Showing how respondents rate the Reward
points and consequent redemption of points for
free diesel.
Showing how respondents rate the redemption
of Reward points for gift items.
Showing how respondents rate the Insurance
coverage provided.
Showing how respondents rate the 15%
discount availed on the purchase of JK Tyres.
Showing how respondents rate the Prepaid
options provided.
Showing how respondents rate the Credit
options provided.
41
42
43
44
45
46
47
48
49
50
51
52
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13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
3.13
3.14
3.15
3.16
3.17
3.18
3.19
3.20
3.21
3.22
3.23
3.24
Showing how respondents rate the Real Time
Gross Settlement mode of payment through
HDFC Bank.
Showing how respondents rate the facility ofCash deposit at the retail outlets.
Showing how respondents rate the receipt of
monthly statement of diesel consumption for
the vehicles
Showing how respondents rate the
CONVENIENCE provided by the
XTRAPOWER Fleet Card.
Showing how respondents rate the
SECURITY provided by the XTRAPOWER
Fleet Card.
Showing how respondents rate the EASE OF
USAGE of XTRAPOWER Fleet Card.
Showing how respondents rate the
CONTROL provided by the XTRAPOWER
Fleet Card.
Showing how respondents rate the
REWARDS provided by the XTRAPOWER
Fleet Card.
Showing how respondents rate the services
provided at the petrol bunk.
Showing how respondents rate the time taken
for swiping the cards by the operators at the
petrol bunk.
Showing how respondents rate the
XTRAPOWER Fleet Card when compared to
other competitors Loyalty Programs.
Showing how respondents rate the overall
experience with the XTRAPOWER Fleet Card
Loyalty Program.
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54
55
56
57
58
59
60
61
62
63
64
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LIST OF FIGURES
S No. FigureNo.
TITLE Pg No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13
Showing if the respondent is a single user/multi
user.
Showing the number of vehicles owned by the
respondents.
Showing the number of respondents who are
aware of the XTRAPOWER Fleet Card
Loyalty Program.
Showing the number of respondents who are
members of the XTRAPOWER Fleet Card
Loyalty Program.
Showing how respondents came to know about
the XTRAPOWER Fleet Card Loyalty
Program.
Showing how respondents rate Cashlessfuelling.
Showing how respondents rate the Reward
points and consequent redemption of points for
free diesel.
Showing how respondents rate the redemption
of Reward points for gift items.
Showing how respondents rate the Insurance
coverage provided.
Showing how respondents rate the 15%
discount availed on the purchase of JK Tyres.
Showing how respondents rate the Prepaid
options provided.
Showing how respondents rate the Credit
options provided.
Showing how respondents rate the Real Time
41
42
43
44
45
46
47
48
49
50
51
52
53
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14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
3.14
3.15
3.16
3.17
3.18
3.19
3.20
3.21
3.22
3.23
3.24
Gross Settlement mode of payment through
HDFC Bank.
Showing how respondents rate the facility of
Cash deposit at the retail outlets.
Showing how respondents rate the receipt of
monthly statement of diesel consumption for
the vehicles
Showing how respondents rate the
CONVENIENCE provided by the
XTRAPOWER Fleet Card.
Showing how respondents rate the
SECURITY provided by the XTRAPOWER
Fleet Card.
Showing how respondents rate the EASE OF
USAGE of XTRAPOWER Fleet Card.
Showing how respondents rate the
CONTROL provided by the XTRAPOWER
Fleet Card.
Showing how respondents rate the
REWARDS provided by the XTRAPOWER
Fleet Card.
Showing how respondents rate the services
provided at the petrol bunk.
Showing how respondents rate the time taken
for swiping the cards by the operators at the
petrol bunk.
Showing how respondents rate the
XTRAPOWER Fleet Card when compared toother competitors Loyalty Programs.
Showing how respondents rate the overall
experience with the XTRAPOWER Fleet Card
Loyalty Program.
54
55
56
57
58
59
60
61
62
63
64
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PART I
ORGANISATIONAL STUDY
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CHAPTER 1
INDUSTRIAL PROFILE
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INDUSTRY PROFILE:
Petroleum Industry is considered to be the backbone of an economy because this is the
main source of energy till date. Any economy around the world would fail to proceed a
single step in the absence of Petroleum Industry. The petroleum industry involves the
refining of crude petroleum and the processing of natural gas into a multitude of
products, as well as the distribution and marketing of petroleum derived products. The
price of petroleum is determined by the demand-supply mechanism around the globe.
Petroleum is not a domestic product and any kind of shortage in the same has serious
ramifications on all possible industries along with the economies all over the world.
Petroleum Industry always need to perform exploration research all over the world for
finding more petroleum sites which also become instrumental in the setting up of
Petroleum Industry.
The petroleum industry includes the global processes of exploration, extraction, refining,
transporting (often by oil tankers and pipelines) and marketing petroleum products. The
largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum is
also the raw material for many chemical products, including pharmaceuticals, solvents,
fertilizers, pesticides and plastics. The industry is divided into three major components:
upstream, midstream, downstream. Midstream operations are usually included in the
downstream category.
Petroleum is vital to many industries and is of importance to the maintenance of
industrial civilization itself, and thus is a critical concern for many nations. Oil accounts
for a large percentage of the worlds energy consumption, ranging from a low of 32% for
Europe and Asia and up to a high of 53% for Middle East.
HISTORY OF PETROLEUM INDUSTRY:
Various theories have been advanced over the years as to the origin of petroleum
proposing an animal, vegetable, mineral and even meteoric origin. Today however, most
scientists believe that oil and gas originated in plant and animal matter that accumulated
in fine grained sediments at the bottom of ancient seas many millions of years ago. This
theory suggests that oil originated as the remains of countless organisms that either lived
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in the sea or were deposited there with mud and silt from prehistoric rivers and streams.
The remains of these ancient plants and animals were transformed into oil and gas by
bacterial action with heat and pressure resulting from deep burial beneath other
sediments.
THE FIRST OIL WELLS:
For thousands of years, the only sources of petroleum had been surface seeps or tar pits.
These sources were not very productive, so certain individuals decided to look for oil
underground by drilling. In 1858, one such individual, a 39 year old carriage maker from
Hamilton, Ontario, named James Miller Williams made the first major commercial oil
discovery in North America at Oil Springs, Ontario. Drilling in gum beds in Lambton
County, 25km southeast of Sarnia, he struck oil at a depth of only 18 meters. William
refined the oil he produced and sold the product as lamp oil. In the following year,
Colonel Edwin L. Drake discovered oil in Titusville, Pennsylvania by drilling to 21
meters. This discovery signalled the birth of the modern petroleum industry in the United
States.
The Oil Boom begins
As a result of the oil discoveries of the 1850s, numerous refineries were built to turn
crude oil into kerosene for lamps and into lubricating oils for the machines of the
industrial revolution. Oil began to replace coal as the fuel for steam engines.
INDIAN PETROLEUM INDUSTRY:
Indian Petroleum Industry started its journey during the fiscal year 1890 in the north
eastern provinces of India especially in the place called Digboi. The production of
petroleum along with the exploration of new sites was primarily restricted to north-
eastern India up to the 1970s. But the scenario changed drastically with the discovery of
Bombay High. Indian Petroleum Industry was entirely state sponsored and was under the
management control of all the industries involved in it were entirely with the
government.
After the inception of the Liberalization-Privatization-Globalization (L-P-G) policy in
the month of July, 1991, the government had started allowing the Indian Petroleum
Industry to go into private as well as government-private joint ventures. The deregulation
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process in the Indian Petroleum Industry got a boost in the year 1997 when it was
decided that the process of liberalization and deregulation would be accelerated in this
industry and all the regulations would go away from the month of April in the year 2002.
Along with globalization, the rate of growth of the economy along with the rate of
growth of energy consumption increased at the rate of six percent on an yearly basis
especially between the period 1991 and 2001. The demand for petroleum products
increased at an annual rate of 5.5% during 1990-91and 2000-01 which is more than that
of the production rate of crude oil processing. But the Indian petroleum industry
stumbled a bit in the year 2001 when the Indian economy observed a slowdown in its
economic rate along with the overall industrial output. Impediments related to
infrastructure all came up as serious problems in the path of Indian petroleum industry.
MINISTRY OF PETROLEUM AND NATURAL GAS (INDIA)
The Ministry of Petroleum and Natural Gas (MOP & NG) is a ministry of the
Government of India. It is responsible for the exploration, production, refining,
distribution, marketing, import, export and conservation of petroleum, natural gas,
petroleum products and liquefied natural gas in India.
The ministry is headed by the cabinet minister Jaipal Reddy. Ratanjit Pratap Narain
Singh, the MP from Padrauna assembly segment of Kushi Nagar in Uttar Pradesh is the
Minister of State in the Ministry of Petroleum and Natural Gas.
FUNCTIONS OF THE MINISTRY
1. Exploration and exploitation of petroleum resources, including natural gas.
2. Production, supply distribution, marketing and pricing of petroleum including natural
gas and petroleum products.
3. Oil refineries, including Lube plants.
4. Additives for petroleum and petroleum products.
5. Lube blending and greases.
6. Planning, development and control of, and assistance to all industries dealt with by the
Ministry.
7. All attached or subordinate offices or other organisations concerned with any of the
subject specified in this list.
8. Planning, development and regulation of oilfield services.
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9. Public sector projects failing under the subjects included in this list.
10. Engineers India limited and IBP Company together with its subsidiaries, except such
projects as are specifically allotted to any other Ministry/Dept.
11. Administration of various Central laws relating to Petroleum and Natural Gas.
PRICING POLICY IN INDIA
The crude oil prices have finally touched $100 per barrel a psychological barrier and a
statistical insanity. The composition of Indian crude basket represents average of Oman
& Dubai for sour grades and Brent (dated) for sweet grade in the ratio of 59.8:40.2 since
April 2006. The Indian crude basket has touched a high of over $92 in the new year, but
is yet to hit the three-figure mark.
India imports about 76 per cent of its crude oil requirements which amounts to an oil
import bill of around $50 billion every year. Indias crude oil import bill rose by 3.48%
in rupee terms and 16.67% in dollar terms during the first half of the current fiscal year.
The appreciation in rupee value by 12.3% this year, the most since at least 1974, has
helped partially offset the sharp rise in global oil prices. As per the Government, every
one rupee appreciation in the exchange rate of Indian rupee against US dollar will help
reduction in the net oil import bill by around Rs 3950 crore. It should help that the rupeeis forecast to advance 3.4 percent next year to 38 per dollar by the end of December.
At current rates, petroleum has an under recovery of nearly Rs 9.5 per litre, diesel Rs
11.3 per litre, LPG Rs 380 per cylinder, and kerosene Rs 21 per litre. However, Indian
Express estimates the loss to marketing companies for petrol at Rs 8.74 a litre, diesel at
Rs 9.92 per litre, kerosene Rs 20.53 a litre and LPG at Rs 256.35 per cylinder.As per the
government policy of 2003, the subsidy component by the government has remained
constant since 2004-05 at Rs 22.58 per per LPG cylinder and Rs 0.82 per litre of
kerosene. The balance subsid provided by the marketing companies from their own
pockets 2007 have been Rs13814 crores on kerosene and LPG, and Rs 12549 crore on
petrol and diesel. If current price trends hold, the under-recoveries to the marketing
companies are estimated to be around Rs 70,000 crore this financial year around
o.75% of Indias GDP. This has to be shared between the three marketing companies, the
upstream companies ONGC, Oil India and GAIL and the government.
Domestic pricing continues to be a politically sensitive topic, with a broad consensus
across the political spectrum to stall any upward revision of prices. There is a Group of
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ministers, to suggest an alternative model for pricing of domestic products. As with the
Indo-US nuclear deal, the left and the right are both opposed to any hike in prices of
domestic petroleum products. The government is also worried about the inflationary
impact of higher domestic prices of petroleum products. A cut in the customs duty on the
crude oil and in the excise duty in petrol and diesel by the government is likely to keep
the prices suppressed for some more time.
The subsidies, whether direct and transparent by the government or indirect as in tax
cuts, oil bonds and compensation by government owned upstream companies, are a drain
on the resources of the government. The losses to the exchequer can only be reduced
when the consumer pays the right price for the product.
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CHAPTER 2
ORGANISATIONAL PROFILE
COMPANY PROFILE:
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INTRODUCTION:
IndianOil Corporation Limited:
IndianOil Corporation Limited, orIndian Oil , ( BSE : 530965,NSE : IOC ) is an
Indian state-owned oil and gascorporation with its headquarters inMumbai , India. It is
Indias largest commercial enterprise, ranked 98th on the Fortune Global 500 list for
2011. IndianOil and its subsidiaries account for a 47% share in the petroleum products
market, 34% share in refining capacity and 67% downstream sector pipelines capacity in
India. The Indian Oil Group of Companies owns and operates 10 of India's 21 refineries
with a combined refining capacity of 65.7 million metric tons per year. President of India
owns 78.92% (191.62 crore shares) in the company. In FY'11 IOCL sold 64.1 million
tonnes of petroleum products and reported a PBT of Rs.9096 crores, & Government of
India earned an excise duty of Rs.25789.90 crores and tax of Rs.1650 crores.
IndianOil operates the largest and the widest network of fuel stations in the country,
numbering about 19,463 (15,946 regular ROs & 3,517 Kissan Sewa Kendra). It has also
started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over
62.4 million households through a network of 5,456 Indian distributors. In addition,
IndianOil's Research and Development Center (R&D) at Faridabadsupports, develops
and provides the necessary technology solutions to the operating divisions of the
corporation and its customers within the country and abroad.
HISTORY OF INDIANOIL CORPORATION LIMITED:
IndianOil owes its origins to the Indian government's conflicts with foreign-owned oil
companies in the period immediately following India's independence in 1947. The
leaders of the newly independent state found that much of the country's oil industry was
effectively in the hands of a private monopoly led by a combination of British-owned oil
companies Burmah and Shell and U.S. companies Standard-Vacuum and Caltex.
In September 1964, two companies namely Indian Refineries Ltd. and the IndianOil
Company which were formed in the late 1950s were merged to form the IndianOil
Corporation. The government announced that all future refinery partnerships would be
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http://exchange/http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=530965http://india/http://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=IOC§ion=7http://petroleum/http://gas/http://gas/http://india/http://india/http://indane/http://faridabad/http://faridabad/http://exchange/http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=530965http://india/http://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=IOC§ion=7http://petroleum/http://gas/http://india/http://india/http://india/http://indane/http://faridabad/ -
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required to sell their products through IndianOil. It was widely expected that IndianOil
and India's Oil and Natural Gas Commission (ONGC) would eventually be merged into a
single state monopoly company. Both companies grew vastly in size and sales volume
but, despite close links, they remained separate. ONGC retained control of most of the
country's exploration and production capacity. IndianOil remained responsible for
refining and marketing. During this same decade, India found that rapid industrialization
meant a large fuel bill, which was a steady drain on foreign exchange. To meet the crisis,
the government prohibited imported petroleum and petroleum product imports by private
companies. In effect, IndianOil was given a monopoly on oil imports.
The government decided to nationalize the country's refineries. The Burmah-Shell
refinery at Bombay and the Caltex refinery at Vizagapatnam were taken over in 1976.
The Burmah-Shell refinery became the main asset of a new state company, Bharat
Petroleum Ltd. Caltex Oil Refining (India) Ltd. was amalgamated with another state
company, Hindustan Petroleum Corporation Ltd., in March 1978. Hindustan had become
fully Indian-owned on October 1, 1976, when Esso's 26 percent share was bought out.
On October 14, 1981, Burmah Oil's remaining interests in the Assam Oil Company were
nationalized, and IndianOil took over its refining and marketing activities. Half of India's
12 refineries belonged to IndianOil. The other half belonged to other state-owned
companies.
By the end of the 1980s, India's oil consumption continued to grow at eight percent per
year, and IndianOil expanded its capacity to about 150 million barrels of crude per
annum. In 1989, IndianOil announced plans to build a new refinery at Pradip and
modernize the Digboi refinery, India's oldest. However, the government's Public
Investment Board refused to approve a 120,000 barrels-per-day refinery at Daitari in
Orissa because it feared future over-capacity.
By the early 1990s, IndianOil refined, produced, and transported petroleum products
throughout India. IndianOil produced crude oil, base oil, formula products, lubricants,
greases, and other petroleum products. It was organized into three divisions. The
refineries and pipelines division had six refineries, located at Guwahati, Barauni,
Gujarat, Haldia, Mathura, and Digboi. That changed in April 2002, however, when the
Indian government deregulated its petroleum industry and ended IndianOil's monopoly
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on crude oil imports. The firm owns and operates seven of the 17 refineries in India,
controlling nearly 40 percent of the country's refining capacity.
VALUES:
IndianOil nurtures the core values of Care, Innovation, Passion and Trust across the
organisation in order to deliver value to its stakeholders.
Care stands for
Concern
Empathy
Understanding
Co- operation
Empowerment
Innovation stands for
Creativity
Ability to learn
Flexibility
Change
Passion stands for
Commitment
Dedication
Pride
Inspiration
Ownership
Zeal & Zest
Trust stands for
Delivered promises
Reliability
Dependability
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Integrity
Truthfulness
Transparency
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OBJECTIVES:
1. To serve the national interests in oil and related sectors in accordance and consistent
with Government policies.
2. To ensure maintenance of continous and smooth supply of petroleum products by
way of crude oil refining, transportation and marketing activities and to provide
appropriate assistance to customers to conserve and use petroleum products
efficiently.
3. To enhance the Companys self sufficiency in crude oil refining and build expertise in
laying of crude oil and petroleum product pipelines.
4. To create a strong research & development base in refinery processes, product
formulations, pipeline transportation and alternative fuels with a view to
minimizing/eliminating and to have next generation products.
5. To optimize utilization of refining capacityand maximize distillate yield and gross
refining margin.
6. To minimize fuel consumption and hydrocarbon loss in refineries and stock loss in
marketing operations to effect energy conservation.
7. To earn a reasonable rate of return on investment.
8. To avail of all viable opportunities, both national and global arising out of the
Government of Indias policy of liberalisation and reforms.
9. To achieve higher growth through mergers, acquistions, integrations and
diversification by harnessing new business opportunities in oil exploration &
production, petrochemicals, natural gas and downstream opportunities overseas.
10. To inculcate strong core values among the employees and continously update skill
sets for full exploitation of the new business opportunities.
11. To develop operational synergies with subsidiaries and joint ventures and
continuously engage across the hydrocarbon value chain for the benefit of the
society at large.
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ORGANISATION CHART:
21
IndianOilCorporation
CochinDivisional
Office
Senior
Divisional RetailSales Manager
ManagerRetailSales
ManagerRetailSales
ManagerRetailSales
Dy.ManagerFinance
Dy. ManagerFleet
Marketing
Manager(Engg)
Twofield
Officers
Twofield
Officers
Twofield
OfficersAssistant Assistant
Dy.Manager(Engg)
AssistantSecretary
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GROUP COMPANIES:
IndianOil is currently metamorphosing from a pure sectoral company with dominance in
downstream in India to a vertically integrated, transactional energy behemoth. The
Corporation is already on the way to becoming a major player in petrochemicals by
integrating its core refining business with petrochemical activities, besides making large
investments in E&P and import/marketing ventures for oil & gas in India and abroad.
Lanka IOC PLC IndianOil (Mauritius) Ltd. IOC iddleEastFZE
Chennai Petroleum IndianOil CREDA
Corporation Ltd. (CPCL) Biofuels Limited
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PRODUCT PROFILE:
Petrol/Gasoline: Automated gasoline and gasoline-oxygenate blends are used in internal
combustion spark ignition engines. These spark ignition engine fuels are primarily used
in passenger cars, off-highway utility vans, farm machinery and in other spark ignition
engines.
Crude Oil: It is a remarkably varied substance, both in its use and composition .It is
formed from the preserved remains of prehistoric zooplankton and algae, which have
been settled to the sea bottom in large quantities under anoxic conditions.
Diesel/Gas oil: It is 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 and pumping applications.
Indane Gas: Indane is today one of the largest packed LPG brands in the world and has
been conferred the coveted Consumer Superbrand status by the Superbrands Council of
India. Indane is today an ideal fuel for modern kitchens, synonymous with safety,
reliability and convenience.
Natural Gas: 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.
SERVO Lubricants and Greases: IndianOils SERVO is the brand leader among
lubricants and greases in India. With over 500 commercial grades and 1500 formulations
encompassing literally every conceivable application, SERVO serves as a one-stop shop
for complete lubrication solutions in the automotive, industrial and marine segments.
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Bitumen: It is a common binder used in road construction. It is principally obtained as a
residual product in petroleum refineries after higher fractions like gas, petrol, kerosene
and diesel etc. are removed.
LOYALTY PROGRAM:
XTRAPOWER Fleet Card Program
INTRODUCTION:
Presenting the IndianOil XTRAPOWER Fleet Card Program A complete fleet
management solution for Fleet Owners/Operators and Corporates. XTRAPOWER is a
Smart Card based Fleet Card Program, which facilitates cashless purchase of fuel and
lubes from designated retail outlets of IndianOil through flexible prepaid and credit
facilities.
Benefits of XTRAPOWER Fleet Card Program:
Payment convenience - Both prepaid and credit options.
Detailed fleet management reports (Monthly statements)
Facility to track each vehicle.
Personal Accident Insurance coverage and Medi-claim for fleet owner, driver,
co-driver and helper.
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Attractive rewards on purchase of fuel & lubricants through the card.
Opportunity for earning additional rewards on purchase of JK Tyres and Exide
Batteries.
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PART II
RESEARCH PROJECT
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CHAPTER 1
THEORETICAL FRAMEWORK
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REVIEW OF LITERATURE
THE ROLE OF SERVICE AND SALES SKILLS IN CUSTOMER RETENTION
Prepared by: Joan B. Krawitz
Improving Customer Retention Rates through Direct Intervention
The significance of customer retention was first quantified by Reichheld and Sasser
(1990). They found that profits in service industries, including credit card companies,
increased in direct proportion to the length of a customers relationship. They noted the
experience of MBNA American, citing its customer defection swat team staffed by
some of the companys best telemarketers, which achieved a 50% success rate in
persuading customers to retain their credit cards. At MBNA, a 5% improvement in
customer retention increased average customer value by 125%. Reichheld and Sasser
(1990) concluded that cutting defections in half could more than double the growth rate
of the average company.
Everett (1993) noted that a dedicated customer retention unit developed by Patrick J.
Swanick at the Society National Bank in Cleveland , achieved a 57% success rate in
persuading callers to remain with the bank. According to Everett (1993), these
representatives first probed for causes, then tried to resolve the problem. He added that
they followed up on each call with a letter to the customer.
THE LINK BETWEEN CUSTOMER SATISFACTION AND CUSTOMER
RETENTION
Many authors (Reichheld and Kenny, 1990; Zeithaml, et.al., 1990; Bowen and Lawler,
1990; Schlesinger and Heskett, 1991) have cited the relationship between customer
retention and the quality of service experienced by the customer.
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Reichheld and Kenny (1990) specified six factors as imperative to improving retention:
senior management commitment; a customer-focussed culture in which all employees
and managers focused their full attention customer satisfaction; retention information
systems that tracked and analyzed the root causes of defections; empowerment of front
line employees to take actions that provided immediate customer satisfaction; continuous
training and development; and incentive systems based on customer retention.
Parasuraman, et.al (1984) studied quality in four service businesses, including credit card
services, and developed a model of service quality. The noted that:
A variety of factors, including resource constraints, management perceptions of
consumer expectations and the firms service quality specifications will affect service
quality from the consumers viewpoint.
(Parasuraman, et.al., 1984)
Parasuraman, et.al (1984) identified a set of discrepancies or gaps between how
executives perceive the quality of the service they provide and the tasks associated with
delivering those services to customers. They found that the customers perception of
service quality depends upon the size and direction of the gap between the service the
customer expects to receive and what he or she perceives to have been received.
FACTORS INFLUENCING CUSTOMER RETENTION
Looking in more detail at the major factors that influence customer retention - not only to
retailers but also to suppliers in all sectors, including business to business (B2B) - the six
key areas of focus can be summarised as follows:
1. Core offeringThe companies that boast the highest levels of fiercely loyal customers have built that
loyalty not on card programmes or gimmicks, but on a solid, dependable, core offering
that appeals to their customers. These companies have focused intently on what they
know appeals to the type of customers they want to attract, and have determinedly
concentrated on delivering what is expected every time. North American retailer,
Nordstrom, is well known for the loyalty of its customers. It built this loyalty by
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understanding what its customers wanted and then empowering its employees to deliver
those needs consistently.
Elements of the core offering that have a large role in building customer loyalty include:
Location and premises
Location and premises clearly play a part in engendering loyalty. The Three L's
of retail - "location, location and location" - are undoubtedly important, and attractive
and functional premises are equally so.
Service
Whether selling services or products, the level of service perceived by the
customer is generally key to generating loyalty. It can be argued that some customers
buy only on price, so all that is necessary to retain their loyalty is consistently low prices.
To certain extent that is true. But in most cases, any loyalty shown will be only to the
prices instead of the business. Should a competitor offer even lower prices, those
customers are likely to defect. Companies that have adopted a policy of everyday low
prices (EDLP) can be more vulnerable to competition than those who have built their
customers' loyalty on superior products or service.
The Product or Service
The products or services offered must be what customers want. The days when
businesses could decide what they wanted to sell or supply, and customers would buy it,
are long past. The customers' needs and wants are now paramount. If you don't meet
them, someone else will.
2. Satisfaction
Clearly, satisfaction is important; indeed essential. But, taken in isolation, the level of
satisfaction is not a good measure of retention. Many auto manufacturers claim
satisfaction levels higher than 90%, yet few have repurchase levels of even half that. The
situation is stacked against the business: if customer satisfaction levels are low, there will
be very little retention. However, customer satisfaction levels can be quite high without a
corresponding level of retention. Customers have come to expect satisfaction as part and
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parcel of the general deal, and the fact that they are satisfied doesn't prevent them from
defecting in droves to a competitor who offers something extra.
3. Elasticity level
Elasticity expresses the weight of a purchasing decision- effectively the level of
involvement or indifference. This applies to the customer and the business.
Involvement
The customer's involvement in the category is important: the more important
your product or service is to the customer, the more trouble they have probably taken in
their decision to do business with you, and the more likely they are to stick with what
they have decided. Most customers would be highly involved in the category when
choosing a new car, a new jacket, or a bottle of wine. However, when choosing a new
pair of shoelaces, involvement is not usually high. Businesses dealing in commoditised
products and services cannot expect high involvement and need to earn loyalty in other
ways.
Ambivalence
The customer's level of ambivalence is also important. Few decisions are clear
cut. There are usually advantages and disadvantages to be balanced, and vacillation is
unstable. Again, we see that the more commoditised a product or service, the more
difficult it is to cultivate loyalty. It is only when points of differentiation are introduced
that the customer has a valid reason for consistently preferring one particular supplier.
4. The Marketplace
The marketplace is a key factor in the development of loyalty. The elements closely
involved are:
Opportunity to switch
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If the number of competing suppliers is high and little effort is required to
switch, switching is clearly more likely. Conversely, the more time and effort invested in
the relationship, the more unlikely switching becomes. The level and quality of
competition has a significant effect on how easy it is for a customer to switch from any
one particular supplier. When competitors are offering very similar products at similar
prices, with similar levels of service, some means of useful differentiation has to be
found in order to give customers a reason to be loyal.
Inertia Loyalty
This is the opposite of ease of switching. Most banks enjoy a high level of inertia
loyalty simply because it's often so difficult and time-consuming to change to a new bank
and transfer direct debits and standing orders.
5. Demographics
According to Jan Hofmeyr and Butch Rice, developers of The Conversion Model (which
enables users to segment customers not only by their commitment to staying with a brand
but also to segment non-users by their openness to switching to the brand), more affluent
and better educated customers are less likely to be committed to a specific brand. They
say that the commitment of less affluent consumers to the brands they use is often
unusually strong - possibly because they cannot afford to take the risk of trying a brand
that might not suit them as well. They also suggest that younger consumers are less
committed to brands than older consumers.
Interestingly, these differences carry over into cultural groups as well: they find that
French-speaking Canadians are more likely to be committed to a brand than English-
speaking Canadians, and Afrikaans-speaking South Africans are more likely to be
committed than English-speaking South Africans. In their excellent book, Commitment-
Led Marketing, they show how commitment norms for the most frequently used brand of
beer vary from country to country. At the two extremes we see both Australia and the
UK (58%) and South Africa at 83% - a considerable difference.
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CUSTOMER RETENTION STRATEGIES
1. Welcome the complaints received: The starting point for customer retention
techniques is understand why existing customers are lost. Most lost customers do not
actually complain, and just simply walk away. Analyze those complaints received for
trends in why customer loyalty is lost and then make appropriate changes. Use
appropriately customer satisfaction survey questions to prompt customers for product
& improved service ideas.
2. Instigate loyalty programs: Provide frequent customers with money-off coupons or
other loyalty programs as part of a simple customer retention strategy. The company
will benefit from plenty of repeat purchases and the customers will spread the good
word about the benefits of purchasing from the company. Use online business
systemsto track and monitor the conversion rates of these individual loyalty schemes.
3. Sending out questionnaires and surveys to existing customers: All the best
customer retention strategies require constant feedback from the customer to establish
what is working and what is not working. Surveys, questionnaires and customer
loyalty research are the perfect way of doing this. Incorporate special offers or gifts to
encourage responses.
4. Check for repeat sales often to instil your companys brand: Existing customer
base will be more loyal as they make more purchases.Improve sales performance by
providing newsletters and regular communications to make sure they are informed
ofnew product lines, offers, related products, etc.
5. Reactivate dormant customers:Customers that purchased from a company
previously are more likely to come back and purchase more (just so long as they were
not displeased by the service). Try contacting customers who have not come back in a
while to see if any of the current offers would interest them. Basic customer service
training tips always state that holding onto existing customers is much easier than
gaining new ones.
6. Schedule a frequent communication plan to the customer base: The Companys
communications are fundamental to any customer retention techniques. However, it
has to be planned out. Create a strategy for how often you want to contact existing
customers and decide upon what communication type should be used (e.g. e-mail,
newsletters, etc.).
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7. Provide exceptionalcustomer service: This one is easy! The better the service
provided, the more customers are going to be retained, and the more loyal they will
be. For online systems make sure there are enough customer service operatives
andserver performance monitoring tools to ensure customers have rapid access to the
companys website and customersupport teams.
8. Make a good first impression: The simplest customer retention strategy that can be
implemented straightaway is to make sure that the first contact made with customers
is positive, easy and courteous. This applies whether you are selling online, face-to-
face or door-to-door.
9. Make courtesy top priority with all customer-facing staff:Customers will be lost
rapidly if the staff are not courteous. Instigate training programs for all customer
service staff in good communications, active listening and attentiveness to customer
satisfaction. Make it part of their annualperformance reviewtoo by using different
types ofperformance appraisal methods. These customer retention strategies do cost
money but pay off big-time with the amount of repeat purchases received. A side
benefit is that more staff is likely to enjoy their roles and be more professional and
polite even with their own colleagues.
10. Do regular reviews: Regular reviews are to be done on a scheduled basis to establish
if complaint rates are dropping, what the nature of complaints are, customer
satisfaction levels (i.e. from questionnaires) etc. Always be looking to improve the
level of satisfaction the customer is receiving.
LOYALTY PROGRAMS:
Loyalty programs are structured marketing efforts that reward, and therefore encourage,
loyal buying behaviour which is potentially beneficial to the firm. In marketing generally
and in retailing more specifically, a loyalty card, rewards card, points card, advantage
card, or club card is a plastic or paper card, visually similar to a credit card or debit card,
that identifies the card holder as a member in a loyalty program. Loyalty cards are a
system of the loyalty business model. In the United Kingdom it is typically called a
loyalty card, in Canada a rewards card or a points card, and in the United States either a
discount card, a club card or a rewards card. Cards typically have
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http://product-ivity.com/customer-service-skills/http://product-ivity.com/customer-service-skills/http://product-ivity.com/server-performance-monitoringhttp://product-ivity.com/server-performance-monitoringhttp://product-ivity.com/online-customer-service-software/http://product-ivity.com/performance-review-phrases/http://product-ivity.com/performance-review-phrases/http://product-ivity.com/types-of-performance-appraisal-methodshttp://en.wikipedia.org/wiki/Loyalty_marketinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Loyalty_business_modelhttp://product-ivity.com/customer-service-skills/http://product-ivity.com/server-performance-monitoringhttp://product-ivity.com/online-customer-service-software/http://product-ivity.com/performance-review-phrases/http://product-ivity.com/types-of-performance-appraisal-methodshttp://en.wikipedia.org/wiki/Loyalty_marketinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Loyalty_business_model -
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abarcode ormagstripe that can be easily scanned, and some are even chip cards.
Small key ring cards (also known as key tags) which serve as key fobs are often used for
convenience in carrying and ease of access.
By presenting the card, the purchaser is typically entitled to either a discount on the
current purchase, or an allotment of points that can be used for future purchases. Hence,
the card is the visible means of implementing a type of what economists call a two-part
tariff.
BENEFITS OF LOYALTY PROGRAMS
1. Identification of customers (enabling deeper relationship marketing)
2. Reason for more contact with customer.
3. Identification of Customer Behaviour who buys what, when, where how much,
how etc. plus identification of trends.
4. Customer Tie-In
5. Increased sales volume / turnover.
6. Cross Marketing Opportunities (e.g. Financial Services).
7. Customer Satisfaction.
8. Word of Mouth if it is a good deal.
9. Differentiation more appropriate to those who want it.
10. May hide real prices & therefore enable higher prices.
11. Perhaps new customers.
12. Possibility to sell customer data (in certain circumstances).
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CHAPTER 2
RESEARCH METHODOLOGY AND
RESEARCH DESIGN
TITLE OF THE STUDY:
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A study to analyse the effectiveness of XTRAPOWER Fleet Card Loyalty Program in
retention of customers of IndianOil Corporation Ltd., with special reference to Cochin
Office.
INTRODUCTION:
IndianOil Corporation Ltd., (IOCL) was formed in 1964 as the result of merger of
IndianOil Corporation Ltd. and Indian Refineries Ltd. IOCL is the 21st largest petroleum
company in the world and the ace petroleum trading company among the national oil
companies in the Asia- Pacific region. IndianOil Corporation is a group of companies
and includes Lanka IOC Ltd., IndianOil (Mauritius) Ltd., IBP Co. Ltd., CPCL, BRPL
and IndianOil Technologies Ltd. The study focuses on the retention of the customers ofIOC. Customer Retention is the activity that a selling organisation undertakes in order
to reduce customer defections. Successful retention starts with the first contact an
organisation has with a customer and continues throughout the lifetime of the
relationship. Thus it is necessary to maintain good customer relations for the effective
retention of customers.
STATEMENT OF THE PROBLEM:
IndianOil XTRAPOWER Fleet Card Loyalty Program is a Smart Card based Fleet Card
Program, which facilitates cashless purchase of fuel and lubes from designated outlets of
IndianOil through flexible prepaid and credit facilities. The study focuses on analysing
the effectiveness of this XTRAPOWER Fleet Card Loyalty Program in retaining its
customers in the company.
SIGNIFICANCE OF THE STUDY:
1. To study the variety of benefits offered by the program.
2. To study if the customers are satisfied over the various features and benefits offered by
the XTRAPOWER Fleet Card Loyalty Program.
3. The study would help the company to modify or create new benefits for its existing
and new customers.
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4. The study will help in identifying the effectiveness of the program.
5. The study helps to identify the needs and aspirations of the customers over the
program.
OBJECTIVES:
GENERAL OBJECTIVE:
To analyse the effectiveness of the XTRAPOWER Fleet Card Loyalty Program in the
retention of its customers in IndianOil Corporation Ltd., Cochin.
SPECIFIC OBJECTIVES:
a) To study about the features of XTRAPOWER Fleet Card Loyalty Program.
b) To analyse the quality of service offered to customers.
c) To analyse the effectiveness of the banking facilities available to customers.
d) To study about the benefits available to customers.
e) To analyse the further improvements suggested by the customers.
RESEARCH DESIGN:
The study follows Descriptive research design.
TYPE OF RESEARCH:
The study follows explanatory research.
DATA COLLECTION:
Primary data: Questionnaires
Secondary data: Internet and Company Reports
POPULATION:
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The floating population of Fleet Operators in Ernakulam.
SAMPLE SIZE:
100 respondents (Fleet Operators)
TOOLS FOR DATA COLLECTION:
The primary data has been collected using questionnaires. Convenience sampling has
been made use of for the distribution of questionnaires. Internet and Company Reports
have been made use of for the collection of Secondary data.
STATISTICAL TOOLS USED FOR DATA ANALYSIS:
The statistical tools used for analysing the data are Percentages, Averages and Bar
Diagrams.
LIMITATIONS:
1. Some of the respondents were not co-operative.
2. Another limitation is that the geographical area was confined only to Ernakulam.
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CHAPTER 3
DATA ANALYSIS
Table 3.1 Showing if the respondent is a single user/multi user.
No. of respondents Percentage (%)
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Single user 35 35
Multi user 65 65
Total 100 100
Figure 3.1 - Showing if the respondent is a single user/multi user.
Inference - From the above figure we conclude that 35% of the respondents are
single users and 65% of the respondents are multi users.
Table 3.2 - Showing the number of vehicles owned by the respondents.
No. of vehicles No. of people Percentage (%)
1 5 50 50
5 10 19 19
10 15 16 16
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15 20 15 15
Total 100 100
Figure 3.2 Showing the number of vehicles owned by the respondents.
Inference From the above figure we can conclude that 50% of the respondents
have 1-5 vehicles, 19% have 5 10 vehicles, 16% have 10 15 vehicles and 15%
have 15 20 vehicles.
Table 3.3 Showing the number of respondents who are aware of the
XTRAPOWER Loyalty Program.
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Figure 3.3 -
Showing
the number of respondents who are aware of the
XTRAPOWER Loyalty Program
Inference From the above figure we can conclude that 74% of the respondents
are aware of the XTRAPOWER Loyalty Program and 26% of respondents are not
aware.
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No. of people Percentage (%)
Yes 74 74
No 26 26
Total 100 100
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Table 3.4 Showing the number of respondents who are members of the
XTRAPOWER Fleet Card Loyalty Program.
No. of respondents Percentage (%)Yes 71 96
No 3 4
Total 74 100
Figure 3.4 - Showing the number of respondents who are members of the
XTRAPOWER Fleet Card Loyalty Program.
Inference From the above figure we can conclude that 96% of the respondents aremembers of the XTRAPOWER Fleet Card Loyalty Program and 4% of the
respondents are not members.
Table 3.5 Showing how the respondents came to know about the
XTRAPOWER Fleet Card Program.
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No. of respondents Percentage (%)
Media 19 27
Retail Outlets 31 44
Hoardings 8 11Advertisements 13 18
Total 71 100
Figure 3.5 Showing how the respondents came to know about the
XTRAPOWER Fleet Card Program.
Inference - From the above figure we can conclude that 27% of respondents came
to know about the Fleet Card through Media, 44% through Retail Outlets, 11%
through Hoardings and the remaining 18% through Advertisements.
Table 3.6 Showing how the respondents rate the benefit of Cashless fuelling.
No. of respondents Percentage (%)
Excellent 29 41
Very Good 31 44
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Satisfactory 11 15
Fair 0 0
Poor 0 0
Total 71 100
Figure 3.6 Showing how the respondents rate the benefit of Cashless fuelling.
Inference From the above figure we can conclude that 41% of respondents rate it
as Excellent, 44% rate it as Very good, 15% rate it as Satisfactory and none of the
respondents have rated it as Fair and Poor.
Table 3.7 Showing how respondents rate the Reward points and
consequent redemption of points for free diesel.
No. of respondents Percentage (%)
Excellent 35 49
Very Good 27 38
Satisfactory 8 11Fair 1 2
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Poor 0 0
Total 71 100
Figure 3.7 Showing how respondents rate the Reward points and
consequent redemption of points for free diesel.
Inference From the above figure we can conclude that 49% of respondents rate it
as Excellent, 38% rate it as Very good, 11% rate it as Satisfactory, 2% rate it as
Fair and none have rate it as Poor.
Table 3.8 Showing the respondents rating for redemption of
Reward points for gift items.
No. of respondents Percentage (%)
Excellent 25 35
Very Good 33 46
Satisfactory 12 17
Fair 0 0
Poor 1 2
Total 71 100
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Figure 3.8 Showing the respondents rating for redemption of
Reward points for gift items.
Inference From the above figure we can conclude that 35% of respondents rate it
as Excellent, 46% rate it as Very good, 17% rate it as Satisfactory, none have rate it
as Fair and 2% have rated it as Poor.
Table 3.9 Showing how respondents rate the Insurance coverage provided.
No. of respondents Percentage (%)Excellent 19 27
Very Good 28 39
Satisfactory 19 27
Fair 5 7
Poor 0 0
Total 71 100
Figure 3.9 Showing how respondents rate the Insurance coverage provided.
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Inference From the above figure we can conclude that 27% of respondents rate it
as Excellent, 39% rate it as Very good, 27% rate it as Satisfactory, 7% rate it as
Fair and none have rated it as Poor.
Table 3.10 Showing how respondents rate the discount availed
on the purchase of JK Tyres.
No. of respondents Percentage (%)
Excellent 22 31
Very Good 25 35
Satisfactory 18 25
Fair 6 9
Poor 0 0Total 71 100
Figure 3.10 Showing how respondents rate the discount availed
on the purchase of JK Tyres.
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Inference From the above figure we can conclude that 31% of respondents rate it
as Excellent, 35% rate it as Very good, 25% rate it as Satisfactory, 9% rate it as
Fair and none have rated it as Poor.
Table 3.11 Showing how respondents rate the Prepaid options provided.
No. of respondents Percentage (%)
Excellent 17 24
Very Good 30 42
Satisfactory 19 27
Fair 5 7
Poor 0 0
Total 71 100
Figure 3.11 Showing how respondents rate the Prepaid options provided.
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Inference From the above figure we can conclude that 24% of respondents rate it
as Excellent, 42% rate it as Very good, 27% rate it as Satisfactory, 7% rate it as
Fair and none have rated it as Poor.
Table 3.12 Showing how respondents rate the Credit options provided.
No. of respondents Percentage (%)
Excellent 20 28
Very Good 27 38
Satisfactory 19 27
Fair 5 7
Poor 0 0
Total 71 100
Table 3.12 Showing how respondents rate the Credit options provided.
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Inference From the above figure we can conclude that 28% of respondents rate it
as Excellent, 38% rate it as Very good, 27% rate it as Satisfactory, 7% rate it as
Fair and none have rated it as Poor.
Table 3.13 Showing how respondents rate the Real Time Gross Settlement
mode of payment through HDFC Bank.
No. of respondents Percentage (%)
Excellent 12 17
Very Good 29 41
Satisfactory 25 35
Fair 5 7Poor 0 0
Total 71 100
Figure 3.13 Showing how respondents rate the Real Time Gross Settlement
mode of payment through HDFC Bank.
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Inference From the above figure we can conclude that 17% of respondents rate it
as Excellent, 41% rate it as Very good, 35% rate it as Satisfactory, 7% rate it as
Fair and none have rated it as Poor.
Table 3.14 Showing how respondents rate the facility of
Cash deposit at Retail Outlets.
No. of respondents Percentage (%)
Excellent 19 27
Very Good 28 39
Satisfactory 20 28
Fair 4 6
Poor 0 0
Total 71 100
Figure 3.14 Showing how respondents rate the facility of
Cash deposit at Retail Outlets.
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Inference From the above figure we can conclude that 27% of respondents rate it
as Excellent, 39% rate it as Very good, 28% rate it as Satisfactory, 6% rate it as
Fair and none have rated it as Poor.
Table 3.15 Showing how respondents rate the receipt of monthly statement
of diesel consumption for the vehicles.
No. of respondents Percentage (%)
Excellent 25 35
Very Good 26 37
Satisfactory 16 22
Fair 4 6
Poor 0 0
Total 71 100
Figure 3.15 Showing how respondents rate the receipt of monthly statement
of diesel consumption for the vehicles.
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Inference From the above figure we can conclude that 35% of respondents rate it
as Excellent, 37% rate it as Very good, 22% rate it as Satisfactory, 6% rate it as
Fair and none have rated it as Poor.
Table 3.16 Showing how respondents rate the CONVENIENCE
provided by the XTRAPOWER Fleet Card.
No. of respondents Percentage (%)
Excellent 21 30
Very Good 31 43
Satisfactory 16 23
Fair 3 4
Poor 0 0
Total 71 100
Figure 3.16 Showing how respondents rate the CONVENIENCE
provided by the XTRAPOWER Fleet Card.
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Inference From the above figure we can conclude that 30% of respondents rate it
as Excellent, 43% rate it as Very good, 23% rate it as Satisfactory, 4% rate it as
Fair and none have rated it as Poor.
Table 3.17 Showing how respondents rate the SECURITY provided by the
XTRAPOWER Fleet Card.
No. of respondents Percentage (%)
Excellent 24 33
Very Good 29 40
Satisfactory 14 20Fair 4 7
Poor 0 0
Total 71 100
Figure 3.17 Showing how respondents rate the SECURITY provided by the
XTRAPOWER Fleet Card.
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Inference From the above figure we can conclude that 33% of respondents rate itas Excellent, 40% rate it as Very good, 20% rate it as Satisfactory, 7% rate it as
Fair and none have rated it as Poor.
Table 3.18 Showing how respondents rate the EASE OF USAGE
of XTRAPOWER Fleet Card.
No. of respondents Percentage (%)
Excellent 11 15
Very Good 25 35
Satisfactory 29 41
Fair 4 6
Poor 2 3
Total 71 100
Figure 3.18 Showing how respondents rate the EASE OF USAGE
of XTRAPOWER Fleet Card.
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Inference From the above figure we can conclude that 15% of respondents rate it
as Excellent, 35% rate it as Very good, 41% rate it as Satisfactory, 6% rate it as
Fair and 3% rate it as Poor.
Table 3.19 Showing how respondents rate the CONTROL provided
by the XTRAPOWER Fleet Card.
No. of respondents Percentage (%)
Excellent 11 15
Very Good 22 31
Satisfactory 33 47
Fair 3 4
Poor 2 3
Total 71 100
Figure 3.19 Showing how respondents rate the CONTROL provided
by the XTRAPOWER Fleet Card.
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Inference From the above figure we can conclude that 15% of respondents rate it
as Excellent, 31% rate it as Very good, 47% rate it as Satisfactory, 4% rate it as
Fair and 3% rate it as Poor.
Table 3.20 Showing how respondents rate the REWARDS
provided by the XTRAPOWER Fleet Card.
No. of respondents Percentage (%)
Excellent 30 42
Very Good 19 27
Satisfactory 16 23
Fair 5 7
Poor 1 1
Total 71 100
Figure 3.20 Showing how respondents rate the REWARDS
provided by the XTRAPOWER Fleet Card.
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Inference From the above figure we can conclude that 42% of respondents rate it
as Excellent, 27% rate it as Very good, 23% rate it as Satisfactory, 7% rate it as
Fair and 1% rate it as Poor.
Table 3.21 Showing how respondents rate the services
provided at the petrol bunk.
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No. of respondents Percentage (%)
Excellent 19 27
Very Good 28 39
Satisfactory 19 27
Fair 5 7
Poor 0 0
Total 71 100
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Figure 3.21 Showing how respondents rate the services
provided at the petrol bunk.
Inference From the above figure we can conclude that 17% of respondents rate it
as Excellent, 41% rate it as Very good, 35% rate it as Satisfactory, 7% rate it as
Fair and none have rated it as Poor.
Table 3.22 Showing how respondents rate the time taken for
swiping the cards by the operators at the petrol bunk.
No. of respondents Percentage (%)Excellent 13 18
Very Good 25 35
Satisfactory 26 37
Fair 7 10
Poor 0 0
Total 71 100
Figure 3.22 Showing how respondents rate the time taken for
swiping the cards by the operators at the petrol bunk.
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Inference From the above figure we can conclude that 18% of respondents rate it
as Excellent, 35% rate it as Very good, 37% rate it as Satisfactory, 10% rate it as
Fair and none have rated it as Poor.
Table 3.23 Showing how respondents rate the XTRAPOWER Fleet Card when
compared to other competitors Loyalty Programs.
No. of respondents Percentage (%)
Excellent 22 31
Very Good 32 45
Satisfactory 13 18
Fair 4 6
Poor 0 0
Total 71 100
Table 3.23 Showing how respondents rate the XTRAPOWER Fleet Card when
compared to other competitors Loyalty Programs.
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Inference From the above figure we can conclude that 31% of respondents rate it
as Excellent, 45% rate it as Very good, 18% rate it as Satisfactory, 6% rate it as
Fair and none have rated it as Poor.
Table 3.24 Showing how respondents rate the overall experience with
XTRAPOWER Fleet Card Loyalty Program.
No. of respondents Percentage (%)
Excellent 13 18
Very Good 34 48
Satisfactory 21 30
Fair 3 4
Poor 0 0
Total 71 100
Figure 3.24 Showing how respondents rate the overall experience with
XTRAPOWER Fleet Card Loyalty Program.
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Inference From the above figure we can conclude that 18% of respondents rate it
as Excellent, 48% rate it as Very good, 30% rate it as Satisfactory, 4% rate it asFair and none have rated it as Poor.
CHAPTER 4
FINDINGS, SUGGESTIONS AND
CONCLUSIONS
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FINDINGS
1. It was found that a majority of the respondents are multi users.
2. Majority of respondents own about 1 5 vehicles.
3. It was found that at least most of the respondents are aware of the XTRAPOWER
Fleet Card Program.
4. Similarly most of the respondents who are aware of the XTRAPOWER Loyalty
Program are also members of the program.
5. Most of the members of the program came to know about the program from various
Retail outlets.
6. A majority of the fleet card users completely support the idea of Cashless fuelling as
it is very much convenient.
7. It was also found that the respondents are happy and satisfied with the Reward points
they receive on swiping their cards and also the subsequent redemption of gift items
with these Reward points.
8. On an average the respondents find the Insurance Coverage only satisfactory.
9. It was found that the respondents are mostly satisfied with the Prepaid and Credit
options provided.
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10. On the whole the respondents are very satisfied with the banking facilities provided
to Fleet Card holders.
11. The ease of usage and control over the XTRAPOWER Fleet Card seems to be only
satisfactory.
12. The convenience provided by the Fleet Card seems to be very good as per the
respondents views.
13. The Reward System provided by the XTRAPOWER Fleet Card has been commented
excellent.
SUGGESTIONS
1. The fleet cards can be utilized to the maximum only when there are more retail outlets
having fleet card facilities.
2. Additional banks can be included for carrying out RTGS mode of payment as there are
instances when the HDFC Bank portal is shut down.
3. There should be more promotional activities to make the fleet operators aware of the
XTRAPOWER Fleet Card Loyalty Program.
4. The network problem which is beyond the control of anyone is affecting the
XTRAPOWER Loyalty Program. However the dealers of retail outlets are officials of
IOCL are helping the customers by giving diesel without swiping the cards under such
critical situations and thereafter the cards will be supplied.
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QUESTIONNAIRE
1. Name:
2. Age:
3. Location:
4. Educational Qualification:
5. Are you a single user / multi user?
6. How many vehicles do you own?
1-5 5-10 10-15 15-20
7. Are you aware of the XTRAPOWER Loyalty Program?
Yes No
8. If yes, are you a member of the XTRAPOWER Fleet Card Program?
Yes No
9. How did you come to know about the XTRAPOWER Fleet Card?
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Media Retail outlets Hoardings Advertisements
10. How do you rate the various benefits of the XTRAPOWER Fleet Card?
I) Cashless fueling i.e. carry only the card with you by loading money
on the card.
Excellent Very good Satisfactory Fair Poor
II) Reward points and consequent redemption of points for free diesel
at the petrol bunk.
Excellent Very good Satisfactory Fair Poor
III) Redemption of Reward points for gift items.
Excellent Very good Satisfactory Fair PoorIV) Insurance coverage.
Excellent Very good Satisfactory Fair Poor
V) 15% discount on purchase of JK Tyres.
Excellent Very good Satisfactory Fair Poor
11. How do you rate the banking facilities offered by this Fleet card?
I) Prepaid options
Excellent Very good Satisfactory Fair Poor
II) Credit options
Excellent Very good Satisfactory Fair Poor
III) Real Time Gross Settlement mode of payment through HDFC Bank.
Excellent Very good Satisfactory Fair Poor
IV) Cash deposit at the Retail outlet.
Excellent Very good Satisfactory Fair Poor
V) Receipt of monthly statement for diesel consumption for the vehicles.
Excellent Very good Satisfactory Fair Poor
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12. How would you rate the features of XTRAPOWER Fleet card?
I) Convenience
Excellent Very good Satisfactory Fair Poor
II) Security
Excellent Very good Satisfactory Fair Poor
III) Ease of usage
Excellent Very good Satisfactory Fair Poor
IV) Control
Excellent Very good Satisfactory Fair Poor
V) Rewards
Excellent Very good Satisfactory Fair Poor
13. How do you feel the services at the petrol bunk?
Excellent Very good Satisfactory Fair Poor
14. The time taken for swiping the cards by the operators at the Petrol
Bunk for fuelling.
Excellent Very good Satisfactory Fair Poor
15. How do you feel about the IOCL XTRAPOWER Fleet Card Program
compared to other competitors Loyalty Programs?
Excellent Very good Satisfactory Fair Poor
16. How would you rate the overall experience with XTRAPOWER Fleet Card
Program?
Excellent Very good Satisfactory Fair Poor
***************
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