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Executive Summary:
The project title was “Analyzing the Parameters Leading to Customer Delight at Indian
In the research the main focus was what all are the factors affecting the customer satisfaction
and how much those all factors are influencing overall customer satisfaction.
In first two weeks I decided upon the principle theory for the research on the basis of which
the further research could be developed, under the intense guidance of my Industrial
Research Guide Mr. Alok Srivastava (Manager – Retail Sales, Delhi Divisional Office).
Then I made an extensive literature study about Indian Oil and its retail business nature from
internet and other study materials which had provided by my research guide Mr. Srivastava.
After understating the research needs and problem I designed a questionnaire on the basis of
It took two more weeks to collect primary data from field, where 10 IOCL retail outlets had
After the data had made to available to me 6th and 7th week had taken to consolidate and
In 8th week the draft of report had been made and scrutinized by Mr. Srivastava. After the
approval of Mr. Srivastava the draft has been script in final report form for the purpose of
The overall expenditure from the starting day of research & up to the end day of submission
1 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
2.Introduction:
2.1.Needs of Research:
A successful business always need to constant monitoring of its services that are provided to
its customer. To meet the constant monitoring one needs to develop a methodological system
As customer are the centre of the service business one need to understand their needs and
requirement properly. This is only possible by regular interaction with the customers.
So, the extensive research should have take place to measure the service quality of different
retail outlets of Indian Oil Corporation Limited by involving its customer only.
Here, I would like to introduce the SERVQUAL principle to develop the research and as well
2.2.Research Problem:
Indian Oil Corporation Limited retail outlets are basically franchise given to individual
business owner, who make sells of Indian Oil Corporation products under their roofs.
These owners solely responsible for running the business under the brand name of Indian Oil
Corporation Limited.
The service quality of a particular outlet totally lays upon them, how they are operating that
particular outlet. So, it is the foremost necessity to measure their performance to deliver the
2 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
3.Indian Oil Corporation Limited at a Glance:
A major diversified, transnational, integrated energy company, with national leadership and a
strong environment conscience, playing a national role in oil security & public distribution.
diversified business with focus on customer delight through value of products and
contribution.
• To cultivate high standards of business ethics and Total Quality Management for a
• To help enrich the quality of life of the community and preserve ecological balance
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Corporation Limited
3.3.Values of Indian Oil Corporation Limited
Values exist in all organizations and are an integral part of any it. Indian Oil nurtures a set of
core values:
• CARE
• INNOVATION
• PASSION
• TRUST
3.4.Company Profile
profit of Rs. 2, 950 crore for the year 2008-09. Indian Oil is also the highest ranked Indian
company in the prestigious Fortune 'Global 500' listing, having moved up 11 places to the
105th position in 2009. India’s Flagship National Oil Company Incorporated as Indian Oil
Company Ltd. on 30th June, 1959, it was renamed as Indian Oil Corporation Ltd. on 1st
September, 1964 following the merger of Indian Refineries Ltd. (established 1958) with it.
Indian Oil and its subsidiaries account for approximately 48% petroleum products market
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Corporation Limited
share, 34% national refining capacity and 71% downstream
For the year 2008-09, the Indian Oil group sold 62.6 million
The Indian Oil Group of companies owns and operates 10 of India's 20 refineries with a
combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, .i.e. 1.2
million barrels per day). These include two refineries of subsidiary Chennai Petroleum
Corporation Ltd.
The Corporation's cross-country network of crude oil and product pipelines, spanning over
10,000 km and the largest in the country, meets the vital energy needs of the consumers in an
Indian Oil is investing Rs. 43,400 crore (US $10.8 billion) during the period 2007-12 in
Beyond Compare As the flagship national oil company in the downstream sector, Indian Oil
network of about 35,000 sales points. They are backed for supplies by 167 bulk storage
terminals and depots, 101 aviation fuel stations and 89 Indane (LPGas) bottling plants. About
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Corporation Limited
7,335 bulk consumer pumps are also in operation for the convenience of large consumers,
Indian Oil operates the largest and the widest network of petrol & diesel stations in the
country, numbering over 18,278. It reaches Indane cooking gas to the doorsteps of over 53
million households in nearly 2,700 markets through a network of about 5,000 Indane
distributors.
Indian Oil's ISO-9002 certified Aviation Service commands over 63% market share in
aviation fuel business, meeting the fuel needs of domestic and international flag carriers,
private airlines and the Indian Defence Services. The Corporation also enjoys a dominant
share of the bulk consumer business, including that of railways, state transport undertakings,
and industrial, agricultural and marine sectors. Technology Solutions Provider Indian Oil's
world-class R&D Centre is perhaps Asia's finest. Besides pioneering work in lubricants
formulation, refinery processes, pipeline transportation and alternative fuels, the Centre is
also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel
economy in the country. It has set up a commercial Hydrogen-CNG station at an Indian Oil
retail outlet in New Delhi this year. The Centre holds 214 active patents, including 113
international patents.
Indian Oil has joined the league of global technology providers last year with the selection of
its in-house developed INDMAX technology (for maximising LPGas yield) for the 4
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Corporation Limited
MMTPA grass roots refinery at Paradip in Orissa, as well as for
developed by Indian Oil's R&D Centre. Customer First At Indian Oil, customers always get
the first priority. New initiatives are launched round-the-year for the convenience of the
Exclusive XTRACARE petrol & diesel stations unveiled in select urban and semi-urban
markets offer a range of value-added services to enhance customer delight and loyalty. Large
format Swagat brand outlets cater to highway motorists, with multiple facilities such as food
courts, first aid, rest rooms and dormitories, spare parts shops, etc. Specially formatted Kisan
Seva Kendra outlets meet the diverse needs of the rural populace, offering a variety of
products and services such as seeds, fertilisers, pesticides, farm equipment, medicines, spare
parts for trucks and tractors, tractor engine oils and pump set oils, besides auto fuels and
kerosene. SERVOXpress has been launched recently as a one-stop shop for auto care
services.
To safeguard the interest of the valuable customers, interventions like retail automation,
vehicle tracking and marker systems have been introduced to ensure quality and quantity of
petroleum products. Widening Horizons To achieve the next level of growth, Indian Oil is
currently forging ahead on a well laid-out road map through vertical integration— upstream
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Corporation Limited
into oil exploration & production (E&P) and downstream into petrochemicals – and
diversification into natural gas marketing, bio fuels, wind power projects, besides
3.4.1.Petrochemicals
In petrochemicals, Indian Oil is envisaging an investment of Rs. 20,000 crore (US$ 4 billion)
by the year 2011-12. Through the world’s largest single-train Linear Alkyl Benzene (LAB)
plant with an annual capacity of 1,20,000 tonnes set up at its Gujarat Refinery, the
Corporation has already captured a significant market share of LAB in India, besides
exporting the product to Indonesia, Turkey, Thailand, Vietnam, Norway and Oman.
tonnes, PTA – 5,53,000 tonnes) for polyester intermediates is already in operation at Panipat,
while a Naphtha Cracker with a capacity of 800,000 tonnes of ethylene per annum, 6,00,000
TPA of Propylene, besides an annual production of 3,25,000 TPA of Mono Ethylene Glycol,
2009 at Panipat.
estimated investment of Rs 12,000 crore (US$ 2.5 billion) which will further strengthen the
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Corporation Limited
3.4.2.Oil Exploration & Production
In E&P, Indian Oil has non-operator participating interest in seven oil & gas blocks awarded
under various NELP (New Exploration Licensing Policy) rounds and two Coal Bed Methane
blocks in India, in consortium with other companies. In addition, Indian Oil has two onshore
type ‘S’ NELP blocks, with 100% participating interest (PI) and sole operatorship. It also has
participating interest in an onshore block in Assam and Arunachal Pradesh through a farm-in.
Overseas ventures of the Corporation includes two blocks (86 and 102/4) in Sirte Basin and
Areas 95/96 in Ghadames basin of Libya, Farsi Exploration Block in Iran, onshore farm-in
arrangements in one block in Gabon, one on land block in Nigeria, one deepwater offshore
block in Timor-Leste and two onshore blocks in Yemen. In all, Indian Oil has 12 domestic
exploration blocks, including 2 blocks where gas discoveries have been made and 9 overseas
exploration blocks, & the Farsi block in Iran where commerciality of gas discovery has been
established. Indian Oil has incorporated Ind-OIL Overseas Ltd. – a special purpose vehicle
for acquisition of overseas E&P assets – in Port Louis, Mauritius, in consortium with Oil
3.4.3.Gas
In natural gas business, Indian Oil sold 1.849 million tonnes of the product in 2008-09. A
technology innovation has been initiated to reach LNG (Liquefied Natural Gas) directly to
the doorstep of bulk consumers in cryogenic containers for industrial as well as captive
power applications.
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Corporation Limited
To consolidate its city gas distribution (CGD) business, Indian Oil has tied up with several
players such as Adani Energy, Reliance Gas Corporation, OIL and ONGC, etc., to set up
joint ventures in various cities of India. The Corporation has also entered into franchise
agreements with CGD players such as Indraprastha Gas Ltd., Mahanagar Gas Ltd., Adani
Energy Limited, GEECL, SITI Energy and GSPC Gas Ltd. to market CNG through its retail
outlets
3.4.4.Bio-fuels
To straddle the complete bio-fuel value chain, Indian Oil formed a joint venture with the
and 26% respectively. Indian Oil CREDA Biofuels Ltd. has been formed for carrying out
farming, cultivating, manufacturing, production and sale of biomass, bio-fuels and allied
commercial biodiesel units and to develop benchmarks for plantation costs and output.
Indian Oil has also signed an MoU with M/s Ruchi Soya Industries Ltd. to take up contract
farming on one lakh hectare of private and panchayat wasteland in the state of Uttar Pradesh.
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Corporation Limited
Indian OiI has forayed into wind energy business with the commissioning of a Rs. 130 crore,
21 MW wind power project in the Kutch district of Gujarat. The cumulative power
generation from the 14 wind turbine generators has crossed 159 lakh KW since
It has also commissioned two pilot solar lantern charging stations at its Kisan Seva Kendra at
3.4.6.Consultancy
For over two decades now, Indian Oil has been providing technical and manpower
secondment services to overseas companies. Such services have been extended to Emirates
National Oil Company (ENOC), Kenya Pipeline Company and Aden Refinery, Yemen . For
the first time, SAP implementation / IT consultancy was provided in Sri Lanka. Consultancy
on pipelines was provided to Greater Nile Petroleum Operating Company (GNPOC), Sudan.
3.4.7.Globalization Initiatives
Indian Oil has set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates
(UAE), and is simultaneously scouting for new business opportunities in the energy markets
Lanka IOC Ltd. operates about 150 petrol & diesel stations in Sri Lanka, and has a very
efficient lube marketing network. Its major facilities include an oil terminal at Trincomalee,
Sri Lanka's largest petroleum storage facility and an 18,000 tonnes per annum capacity
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Corporation Limited
lubricants blending plant and state-of-the-art fuels and lubricants testing laboratory at
Trincomalee. Presently, it holds a market share of about 40%. In a highly competitive bunker
market, catering to all types of bunker fuels and lubricants at all ports of Sri Lanka, viz.,
Colombo, Trincomalee and Galle. It is the major supplier of lubricants and greases to the
three arms of the Defence services of Sri Lanka. LIOC's market share in petrol increased
Indian Oil (Mauritius) Ltd. has an overall market share of nearly 22% and commands a 35%
market share in aviation fuelling business, apart from its bunkering business. It operates a
modern petroleum bulk storage terminal at Mer Rouge port, besides 17 filling stations. In
addition to the ongoing expansion of retail network, IOML has to its credit the first ISO-9001
The Corporation's UAE subsidiary, IOC Middle East FZE, which oversees business
expansion in the Middle East, is mainly into blending and marketing of SERVO lubricants
and marketing of petroleum products in the Middle East, Africa and CIS countries. Finished
lubes were exported to Oman , Qatar , Yemen , Bahrain , UAE and Nepal .
3.5.1.Objectives:
• To serve the national interests in oil and related sectors in accordance and consistent
way of crude oil refining, transportation and marketing activities and to provide
efficiently.
• To enhance the country's self-sufficiency in crude oil refining and build expertise in
• To optimise utilisation of refining capacity and maximize distillate yield and gross
refining margin.
increasing productivity.
• To minimise fuel consumption and hydrocarbon loss in refineries and stock loss in
• To avail of all viable opportunities, both national and global, arising out of the
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Corporation Limited
• To achieve higher growth through mergers, acquisitions, integration and
• To inculcate strong ‘core values’ among the employees and continuously update skill
continuously engage across the hydrocarbon value chain for the benefit of society at
large.
3.5.2.Financial Objectives
• To ensure adequate return on the capital employed and maintain a reasonable annual
internal resources to meet revenue cost and requirements for project investment,
Corporation’s business.
control measures and thereby sustain market leadership through cost competitiveness.
• To complete all planned projects within the scheduled time and approved cost.
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Corporation Limited
3.5.3.Obligations
through appropriate training and career planning. To have fair dealings with
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Corporation Limited
4.Retail Business Brands of Indian Oil Corporation Limited:
4.1.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
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 utilised. 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.
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Corporation Limited
The fuel is marketed by Indian Oil under the brand name ‘Auto Gas’
Indian Oil has setup 232 Auto LPG Dispensing Stations (ALDS) covering 124 cities across
India.
Auto Gas impacts greenhouse emissions less than any other fossil fuel when measured
through the total fuel cycle. Conversion of petrol to Auto Gas helps substantially reduce air
The saving on account of conversion to Auto Gas in comparison to petrol is about 35-40%.
Low filling times and the 35-40% saving is a reason enough for a consumer to convert his
4.2.XTRAPREMIUM
XTRAPREMIUM Petrol is India’s leading branded petrol boosted with new generation
deposits. XTRAPREMIUM is custom designed to deliver higher mileage, more power, better
pick up, faster acceleration, enhanced engine cleanliness and lower emissions.
XTRAPREMIUM is a sought after fuel among discerning customers who own new
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Corporation Limited
In terms of fuel system cleanliness XTRAPREMIUM is hugely superior to any other
alternative fuel in this segment, with the additional benefit of fuel efficiency through the
formulation in synthetic carrier oil. The detergent dispersant cleans the fuel system and the
friction modifier drastically reduces friction in the non-lubricated engine area contributing to
fuel economy.
4.3.XTRAMILE
Indian Oil’s XTRAMILE Super Diesel, the leader in the branded diesel segment is blended
with world-class ‘Multi Functional Fuel Additives (MFA). Commercial vehicle owners
choose XTRAMILE because they see a clear value benefit in terms of superior mileage,
lower maintenance costs and improved engine protection. A growing section of customers
who own diesel automobiles, both in the ‘lifestyle’ and ‘passenger’ category, prefer
XTRAMILE as a fuel for its added and enhanced performance. XTRAMILE has brought in a
huge savings in the high mileage commercial vehicle segment. Transport fleets that operate a
large number of trucks crisscrossing the country are using XTRAMILE to not only obtain a
4.4.Petrol/Diesel Stations
IndianOil was the pioneer in launching state-of-the-art petrol stations with digital dispensers,
modern canopies, standardized signage and efficient lighting systems way back in the mid-
1990s. The new retail-branding template introduced by Indian Oil set in motion a revolution
in the petroleum retail business in the country. Indian Oil pioneered differentiated offerings
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Corporation Limited
to meet the diverse needs of its customers, be it through large format Swagat outlets for the
highway traffic, Kisan Seva Kendras for the rural consumer, or even the XTRAcare outlets
4.4.1.XTRAcare
Indian Oil's XTRAcare E branded full service petrol stations is a result of a series of
processes in retail design, product and service upgradation, capability training, automation,
loyalty programs, retail site management techniques all benchmarked to global standards.
Today XTRAcare petrol stations are synonymous in India with world-class petroleum
retailing.
Complete vehicle care begins at an Indian Oil XTRAcare petrol pump. From branded auto
fuels, to speedy windshield wipers to quick oil checks and snappy air service, you will
experience the superior services that will leave your vehicle feeling special.
combines the best bouquet of quality, quantity and warm service, with a guarantee to make
of quality & quantity, housekeeping, maintenance and customer service certified to globally
renowned benchmarks certified by the globally renowned agency - M/s Bureau Veritas (BV),
amongst others.
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Corporation Limited
Equipment Manufacturers under a unique 'Equipment Quality Outsourcing' system.
While the industry standard is to take samples on a quarterly basis, Indian Oil has moved
several steps ahead by introducing fortnightly random sampling with specific importance
given to RON (Research Octane Number) sampling which is truly the definitive test for
quality and quantity. The surveillance audits by BV are being done on a more comprehensive
basis. The scale and spread of XTRAcare pumps is also an industry record.
With automated facilities, highly trained attendants and forecourt managers attuned to the
needs of your car an XTRAcare pumps offers the full range of branded fuels-
The non-fuel activities get a major fillip at the Indian Oil XTRAcare and a wide range of
customers added benefits (available at present at select petrol pumps). The cutting edge
temperature sensors, density measurement sensors, back-office server with dispensing unit
Another vital differentiator in the Indian Oil XTRAcare is the importance given to the
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Corporation Limited
also undergo extensive training on 'Retail Site Business Management' a unique training
Kisan Seva Kendra is a unique award-winning retail outlet model pioneered by Indian Oil to
cater to the needs of the customers' in the rural segment. Today Indian Oil's KSKs have
emerged as a dominant player in the rural markets, riding on the rapid growth of upcoming
second and third tier roads in the rural areas. The KSKs come with a fresh perspective
enabling dealers to tap the huge demand driven in by consumers there. In addition, non-fuel
retail facilities like convention stores have been added to the KSKs selling pesticides,
vegetables, banking products and stationery items. Indian Oil has also tied up with Indo Gulf
for fertilizers, National Seeds Corporation for marketing seeds and agricultural inputs as well
as alliances with Nabard, Oriental Bank of Commerce and Bank of Baroda for banking
products. At some KSKs even internet kiosks, communication facilities, etc. have been
installed. Business alliances have been signed to market products from Dabur, Airtel, Tata
Agrovet. Other alliance partners are Emami for personal care products, Money Gram for
money transfer, MILMA and OMFED for milk products and Supplyco for convenience
stores.
4.4.3.Swagat
The Swagat retail network are large format sites designed exclusively to cater to travellers on
the highways. With spacious parking lots, dhabas, eateries, retail stores and restroom, the
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Corporation Limited
Swagat outlets provide customized services to owners of both light motor vehicles as well as
5.1.XTRAPOWER
The XTRAPOWER Fleet Card program is a complete smart card-based fleet management
solution for fleet operators and Corporate for cashless purchase of fuel & lubes from
designated retail outlets of Indian Oil through flexible pre-paid and credit facilities. The fleet
card program also offers an exciting rewards program and unique benefits like personal
accident insurance cover and vehicle tracking facilities. In just under two years of its launch,
Indian Oil's XTRAPOWER Fleet Card has emerged as the largest fleet card in the country
with the widest retail outlet coverage. Any business entity owning or operating a vehicle fleet
can become a member of the XTRAPOWER fleet card program at a nominal annual charge.
Each fleet owner is issued a Fleet Control Card and vehicle-specific Fleet Cards for every
vehicle enrolled under the program. For enhanced security, the fleet card transactions are
authorized through unique Personal Identification Number (PIN). Moreover, the card can
help track each vehicle's movement across remote corners of the country leading to an
5.2.XTRAREWARDS
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Corporation Limited
Indian Oil XTRAREWARDS is India's first on-line rewards program that seeks to inculcate
the habit of redeeming points. The loyalty program rewards customers paying by cash, credit
and debit cards. Each transaction is confirmed on-line 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,
will be shortly available in other markets like Delhi. Apart from redeeming the accumulated
points instantly on fuel / SERVO Lubes at participating Retail Outlets, the card holder can
also redeem the points to get some 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 (022-2880 9030). The program
continuously provides the cardholder with privileges, benefits and offers from alliance
partners like Domino's Pizza, Subhiksha, Rediff Shopping, Kumaran Silks, Dhabba Express,
Indian Oil Corporation's marketing has cashed in by raising its overall market share to 48.9%
through an impressive 8.7% year-on-year growth in sales volume till March 31. Ironically
though, with daily losses on fuel sales estimated at Rs 238 crore, a good marketing
performance means higher losses because the company has to retail fuels at an artificially
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Corporation Limited
Indications are that Indian Oil could end 2008-09 by taking a hit of Rs 10,000 crore on its
books if the government keeps pump prices suppressed and international crude keeps rising.
"Indian Oil's market leadership has come from its expanded reach, innovations and
consumers' increased awareness of quality and quest for better products. XtraPremium petrol
is available in 38% of our outlets and XtraMile diesel in 58%. We are selling auto-LPG
through 157 outlets across 75 cities and will be adding 100 more stations this year. We have
also benefited from successful amalgamation of IBP's business," IOC director (marketing) G
C Daga said.
IOC had acquired IBP, a standalone retailer, during the NDA regime's disinvestment drive.
On the ground, Indian Oil's marketing performance was top-notch in the industry in all fuel
segments. Overall domestic sales stood at 58.3 million tonnes, while exports stood at 3.3
million tonnes. This marks a growth rate of 8.7% and 8.5%, respectively. Similarly in
branded motor fuels, which are costlier than normal fuels, Indian Oil's market share grew to
48.2% in petrol and 58.6% in diesel. In volume terms, growth stood at 89% for petrol and
65% for diesel. In auto-LPG too volumes grew 53%, with an average monthly sale of 8,000
tonnes.
Daga said the increased thrust on rural markets through the string of Kisan Seva Kendras' too
had yielded results. The number of these low-cost retail outlets have crossed 2,500 and cover
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Corporation Limited
After conducting a thorough study on Indian Oil Corporation Limited, some innovative ideas
could be generated to sustain the market stake in the competitive market and may could also
able to help in increase the business to position IOCL as a Market Leader in Petro Chemical
Retail Business.
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Corporation Limited
7.Research Methodology:
Objectives:
• To study and analyze the current customer satisfaction level at Indian Oil Retail
outlets.
• To understand the customer needs for service excellence at Indian Oil Retail outlets.
• To generate new ideas to exceed the customer expectation of service at Indian Oil
Retail outlets.
• To prepare a successful work plan for Initiation and Implementation of those ideas at
Setting:
Research had conducted by filling up the survey forms in Different Indian Oil retail outlets at
Delhi.
Sample Selection:
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Corporation Limited
Exclusion criteria: Below 18 years of age and Public vehicles.
Private Vehicle’s owners was asked to fill the questionnaire designed for survey which had
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Corporation Limited
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Corporation Limited
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Corporation Limited
9.Principles Theory of the Research:
Devised by Berry, Zeithaml and Parasuraman, the model is premised upon disconfirmation
theory, the idea that consumers evaluate services by comparing their expectations of what
will happen during a service encounter with their perceptions of the actual service received.
Where service encounter experiences are better than expected there is positive
disconfirmation and customers are satisfied but where the experience is worse than expected
there is negative disconfirmation and customers are dissatisfied. The difference between
“In a broad sense, the process of closing the customer gap ….. can be
subdivided into four company gaps within the organisation that inhibit service
• Not knowing what customers expect – the gap between customer expectations of a
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Corporation Limited
• Not selecting appropriate service designs/standards – the gap between the company
designs.
• Not delivering to service standards – the gap between developing of customer focussed
• Not matching performance to promises – the gap between service delivery and external
communications to customers.
The four provider gaps are summed in gap five, that between customer expectations of
“The key to closing the customer gap is to close gaps 1 through 4 and keep
them closed. To the extent that one or more gaps 1 through 4 exist, customers
The Gaps model should prompt organisations seeking to improve the quality of their service
Again, this model is applied to Indian Oil Corporation Limited (to evaluate the performance
of its retail outlets in New Delhi) in tabular form on the next page.
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Corporation Limited
The Model Question Prompts Registry
Gap 2 To what extent are our Some “Tell-Tale” signs exist that
procedures customer procedures are company and resource
driven? To what extent are driven:
procedures driven by • opening hours designed to meet
financial requirements and organisational needs rather than
resource constraints? To customer needs
what extent do we have a • procedures designed to fit logistical
philosophy and requirements rather than meet
commitment to raise customer needs
service standards. • staffing levels set on a basis of
financial constraint rather than
service needs
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Corporation Limited
To what extent do Recruitment activities emphasise need
Gap 3 employees understand their for staff to demonstrate good
role/perform services well interpersonal skills. Commitment to
and to standard? To what staff development and training. Human
extent is performance resources and technical resources
measured? To what extent subject to financial constraint.
are declared standards Service provision statement identifies
backed by appropriate requirements from customers to allow
human and technical service standards to be met, but not
resources? To what extent fully understood.
are customers made aware
of the role they are
required to play in meeting
service standards?
Gap 4 To what extent does the Service provision measured but not yet
service delivered match the tested against Service Provision
“promised” service – both Statement.
explicit and implicit? To
what extent are customers Customers made aware of invisible
made aware of the invisible organisation and system or “backstage”
organisation and systems service environment only as a means to
that underpin service explain events more fully in the context
provision? of complaint.
position of IOCL Retail Outlets suggests certain actions which could be undertaken to either
achieve a more balanced triangle or close gaps and, consequently, improve overall service
The expectancy construct is a key aspect of the Services Marketing Triangle and underpins
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Corporation Limited
the Gaps model, as shown earlier. It is instructive to explore the expectancy construct
further.
Individual service encounters comprise moments of truth for customers that can be
aggregated over time, allowing them to develop an overall picture (Bitner & Hubbert 1994).
34 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Over time, multiple positive or negative encounters will lead to overall high or low levels of
satisfaction. Each service encounter therefore provides opportunities for service providers to
may be dissatisfied with a discrete encounter but perceive overall satisfaction, due to other
experiences. For these reasons, overall feelings, obtained for example from annual
It should be noted that customers do not all have the same expectations. Each customer
approaches each service encounter with expectations based on their own understandings of
past experiences and beliefs of what is likely to be and what ought to be. This is a facet of
Service encounters suggest that there are a number of generic satisfiers and Non-Satisfiers in
the context of service provision. The dimensions presented below are derived from the
aggregated service encounter journals of the presenters and are not exhaustive.
Satisfiers Non-Satisfiers
35 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Perceived good quality systems
Perceived poor quality
The length of waiting time is a feature of almost all service encounters. In the case of one
encounter the length of time a customer waited for a service to be completed led to complaint
other encounters prompt service was noted and appreciated by the customers. Prompt service
in one example involved compromise on quality in order to meet deadlines but was
According to the Oxford English Dictionary, the act of evaluation is to “assess or appraise
Zeithaml et al have identified dimensions of service quality, initially ten but subsequently
adjusted and condensed to five. These form the basis of the SERVQUAL scale for
36 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
• Empathy - caring, individual attention;
In assessing service quality under the SERVQUAL model, each dimension is measured
The SERVQUAL schema has been the subject of various critiques. Although complex, it
remains a popular and prominent model for evaluating service quality, especially when used
in a modified form (Gabbot & Hogg 1998). A more simple and general framework for
evaluation can be employed, again linked to the notion of gaps. The framework comprises
the fifth and final key function of planning model that can be applied in the context of
This framework for evaluation is not wholly customer based and simply allows comparison
of performance against targets. Nevertheless, customers could play a key role in identifying
whether targets have been met. Where performance indicators and measurements show
37 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
negative gaps against targets, remedial action can be taken or contingency plans implemented
For the registry the benefits of correcting performance problems and costs of not doing so
appear stark:
customer dissatisfaction
10.Research Findings:
38 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Courtesy Q5 58
Credibility Q6 67
Security Q7 67
247 6.175
Assurance
Access Q8 52
Communication Q9 51
Understanding Q 10 48
151 5.03
Overall SERVQUAL
Rating 5.601
SERVQUAL Rating 100 %
Table 5
Justifies that:
• The appearance and outlook of the outlet is satisfactory with company’s perceived
Service quality.
• Though this outlet is not able to achieve the perceived level of reliability among its
customer.
• But this outlet is good enough to response with the customer queries.
• This outlet is able to meet the perceived level of individual attention to its customer.
• The most noticeable quality of this outlet is able to communicate and understand its
customer needs.
• As well as its reliability about quality of the products and transactions are highly
appreciable.
• Though it is not a good sign for a service outlet when the responses to its customer
• But this outlet is good to take care of its customer’s individual needs.
40 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Raj Super Service Centre, Motibagh Gurudwara, New Delhi:
• Tough the outlooks and appearances of the outlet is not very appreciable.
41 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
• It highly reliable among the customer about its quality of the products and
transactional clarity.
• Whereas, same time it is unable to meet the perceived level of customer individual
attention requirements.
• But they are effective in communication with its customer, which exemplary.
Jai Garur Service Station, Block B1 Community Centre Jankpuri, New Delhi:
• But the same time this outlet highly reliable among its customer.
43 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Access Q8 49
Communication Q9 49
Understanding Q 10 43
141 4.7
Overall SERVQUAL
Rating 5.34
SERVQUAL Rating of Kapoor Auto Service Station
Table 9
From the above data one can understand the following points:
• Reliability among its customer about quality of products and transactional clarity of
• This outlet is not very good in attending individual customer needs too.
45 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Grand SRVQUAL
Sub Total Total Rating
SERVQUAL
Dimensions Question No.
Tangibles Q1 57 57 5.7
Reliability Q2 63 63 6.3
Responsiveness Q3 59 59 5.9
Empathy
Competence Q4 55
Courtesy Q5 58
Credibility Q6 67
Security Q7 68
248 6.2
Assurance
Access Q8 58
Communication Q9 47
Understanding Q 10 53
158 5.27
Overall SERVQUAL
Rating 5.874
SERVQUAL Rating of Kyber Service Station
Table 11
• Though the appearance of the outlet is not able to perceived quality of IOCL but
could be excused.
• The reliability of this outlet is very high, which is highly commendable job.
• On their individual effort they are able to communicate with customers about IOCL’s
46 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Kutub Service Station, Mehroli Road, New Delhi:
With the help of above data the following conclusion could be arrived:
• It is also able to meet the reliability among its customer according to perceived scale.
attention.
47 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
• At the same time, it is able to communicate its customer about IOPCL product lines
48 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
The above data are implies that:
• This outlet is able to meet the perceived quality of IOCL about the appearance and
outlook of an outlet.
• It is not able to meet the perceived standards of customer interaction about the IOCL
49 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
SERVQUAL Comparison of S. Vidhya with IOCL
Chart 10
standard.
• Though it is not able to meet the perceived quality of responding a customer queries
• And it is also not able to make communication with its customer about IOCL
IOCL
Grand SRVQUAL
Sub Total Total Rating
SERVQUAL
Dimensions Question No.
Tangibles Q1 575 575 5.75
Reliability Q2 563 563 5.63
Responsiveness Q3 563 563 5.63
Empathy
Competence Q4 527
Courtesy Q5 589
50 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Credibility Q6 675
Security Q7 676
2467 6.17
Assurance
Access Q8 534
Communication Q9 477
Understanding Q 10 469
1480 4.93
Overall SERVQUAL 5.62
Rating
SERVQUAL Rating of Indian Oil Corporation Limited
Table 15
The above data has been accumulated by compiling the all 10 different retail outlets data,
which has been done by taking Mean Average of all the 10 retail outlets SERVQUAL
Rating.
11.Recommendations
After analysing the 10 Samples of Retail outlets of Indian Oil Corporation limited from
above research findings those outlets could be categorised three of following headings. This
three types of outlets could be performed better when the appropriate measures are taken.
Service Station
Recommended Categorisation of IOCL Retail Outlets
Table16
The recommendation goes like:
Acceptable:
1. Identification of the reasons for their weaknesses. (Italic points of each outlets of this
4. Regular discussion of day to day operational problems with the owner, to find out
5. Encourage them to perform better each time better than previous. Rewards and
Moderately Acceptable:
3. Design a Performance Improvement Plan with the consultation of the concerned retail
outlets owners.
4. Make them understand their part of benefit for implementation of those plans.
52 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
5. Regular Monitoring on their operation as well as Supervision on the implementation
Non Acceptable:
1. The outlets should be asked for the reasons of their poor performances in written
form.
2. Visit of IOCL experts at those outlets to identify the reasons for their poor
performances and checking against their concerned written show – causes submitted
to the officials.
3. A thorough Root Cause Analysis should take place after a discussion with those
outlets owners.
5. Those outlets must take under Direct Supervision of IOCL authority for effective
implementation of above plan. For that an Expert panel are highly recommended for
6. Rewards and Recognition are appreciable for those outlets who all will able to
time strict measures are highly recommended for those outlet who all will not able to
do so.
53 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
The recommendations given in tabular format on the next page were made with reference to
recommendations focussed upon practical actions, which did not require massive
commitment of additional resources. A time frame for achievement was not given in this
instance but all were to be achieved within one year. Provision of milestones for
achievement is to be recommended.
Develop procedures and Develop practice for positive Practice written and included
processes which are customer logging and management of in current “Registry Facts”
focussed complaints guidelines and procedures
handbook.
54 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
long-term basis
After conducting this extensive study one can understand from the research findings that
Indian oil must give importance to close the Gap 4 as from research it has been seen that
communication between company and its customer score lowest among any other dimension
of SERVQUAL.
55 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
12.Conclusion:
As a business grow larger and as management becomes more remote from the market place,
marketing management has to rely more heavily on marketing research as a managerial tool
in solving any problem in the field of marketing. Beginning and end of marketing is
marketing research.
Marketing research may be defined as the scientific and controlled process of gathering of
marketing research concentrates on the study of product, planning and development, pricing
After the evaluation and findings some important suggestion are revealed to the company.
• Indian Oil Corporation Limited must make particular guideline for the construction of
• Indian Oil Corporation Limited must take into serious consideration to train retail
• Indian Oil Corporation must improve its advertisement to the products and features in
detail.
• Indian Oil Corporation Limited should develop a regular uniform monitoring system
After the evaluation, the information is revealed that the most of the users are unaware of the
56 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
It is to be noted that, the people who are aware of the product and its feature are mostly
57 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Bibliography
1. Philip Kotler and Kevin Lane Keller 2008 Marketing Management. Delhi: Pearson
education.
Editions.
5. About Indian Oil Corporation Limited, www.iocl.com as accessed on July 14th , 2010.
58 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited