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1976, India banned the private sector from participating in fuel retail and nationalized the local businesses of international oil companies pricing was control through APM.  In 2002, however, the government made a U-turn, allowing multinationals and other private players to re-enter the market. The policy shift sparked a rush of service station openings as both private and public companies positioned themselves to sell to the nation¶s growing, increasingly mobile middle class.  Although the government abolished formal controls on fuel prices, it continued to dictate them indirectly through the pricing policy of India¶s national oil companies (NOCs).
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The prices for kerosene & LPG are determined on the basis of import parity prices  For petrol & diesel, it is determined on the basis of trade parity pricing model.  Import parity prices= International price + Insurance +freight cost +customs duty.  Trade parity price= weighted average of import parity and export parity prices in the ratio of 80:20. 

The prices for certain petroleum products like kerosene, LPG (domestic) were subsidized for socio economic reasons.  Fuels like petrol, ATF, LPG for (industrial use) were priced above the cost of production to discourage their inessential use. 

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«.could be all of the above !!!! 3 .Retention of Customers ? Repeat Purchases ? Create Profitable Customers ? Acquisition of Customers ? More Information on Customers ? LOYALTY Just Another Marketing Program ? Reward Loyal Customers ? Reality ««.

 Loyalty programs have gained in popularity immensely in the past fifteen years. Some of the first loyalty programs were instituted by airlines in the 1970s in the form of frequent flyer miles. in which consumers feel that they deserve special treatment. Reichheld  .P. Companies can boost profits by almost 100 percent by retaining just 5 percent more of their customers" F.  In the present world where there is intense competition. And not just by a little. profits rise. The cost of acquiring a new customer is always more than retaining an old customer. attracting and retaining customers who regularly purchase from you and refer new clients to you.  Loyalty cards are the most common form of loyalty programs found throughout the world today.  "As a customer's relationship with the company lengthens. due to the development of a culture of entitlement. it becomes very necessary to retain loyal customers.The practice of finding.

XtraPower (IOCL).The immense competition will make loyalty programs an integral program of the day-to-day functioning of petro-retailing. Petro card (BPCL) and others. the pricing is increasingly market driven and consumers are demanding more. With the going having gotten tough. Drive track (HPCL). a move that has brought new levels of competitive threat and customer focus. the smarter players have caught on early that the best way to do business is to lock customers into a habit they can¶t break. Transconnect (Reliance). With private players entering the fray.  .  In recent years the sector has moved away from being governmentcontrolled.  The competitive threat is bigger. right now many such loyalty programs are being run by the petro-retailers like Smart Fleet (BPCL).

The credit and debit card based programs offered the customers all the facilities of a regular credit/ debit card.  . tying up with banks entry of the banks into this space brought about the next wave of loyalty programs. IOCL and HPCL.With increasing oil prices and competition increasing at a rapid pace. Both of these companies focused their initial marketing efforts on building their retail outlet brand and services before launching arrange of card based programs. customer loyalty programs did not happen until mid 2002. many oil marketing companies (OMC¶S) like IOCL.  Both companies took the co-branded route.  For the other two players. with a fresh set of offers for the customers. BPCL and HPCL are finding it difficult to operate profitably in India  Among the government company bpcl was first to adopted the loyalty card benefits as a petro card with a great success.

Food. Entertainment. Additional points can also be earned outside the Indian Oil network. Apparel and Hospitality sectors.  XTRAREWARDS Loyalty Program  XTRAPOWER Fleet Card program   XTRAREWARDS Loyalty Program: Indian Oil XTRAREWARDS is India's first on-line rewards program that seeks to inculcate the habit of redeeming points. Automobile. 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.Indian Oil's loyalty programmes are designed exclusively to benefit the large number of its customers who have been patronizing the brand for over five decades. covering prominent FMCG. Travel. .

XTRAPOWER Fleet Card program 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.K. co-driver and helper. Tyre and Exide Battery  . BENEFITS:  Payment convenience-both prepaid and credit options.  Attractive rewards on purchase of fuel & lubricants through the Card  Opportunity for earning additional rewards on purchase of J. driver.  Detailed fleet management reports.  Facility to track each vehicle  Personal Accident Insurance Cover and Medi-claim for fleet owner.

The following tasks are given to me during my project at Indian oil. . 1. 3.Prepare a list of customers and getting their feedback whether they are satisfied or not and short out important problem area for both existing customers as well as potential customer.Marketing survey of Xtra power fleet card from Durgapur and nearby region of retailers(10) and customers(sample size 200) with the help of close ended short questionnaire provided by iocl.Comparison between loyalty card benefits with other major oil producing company as all benefits are not disclose in company·s official website . These information's are required to get the competitive edge over competitors. 2.

 Secondary Data Company·s annual reports Company·s journal and magazines Company·s website Company·s leaflets Company·s pamphlets Products and sales report .RESEARCH METHODOLOGY  DATA COLLECTION METHOD  Primary Data The data collected through questionnaire based survey from the retailers and customers of Durgapur and nearby region.

 QUESTIONAIRE DESIGN close ended short questionnaire which was filled by the fleet owners through one to one interactions.200 customers and 10 retailers convenience sampling is based on opportunism.(provided by iocl)  .SAMPALING PLAN  Sample size:.

40000-60000 lts. 20000-40000 lts 0% 5% 10% 15% 20% 25% 30% 35% 40% . Total percentage of fuel sold by Xtra power fleet card 10% 30% 20% 40% 1000-20000 lts More than 60000 lts.

50% SALES THROUGH CARD SALES WITHOUT USING CARD 72. Percentage of sale through Xtra power fleet card 27.50% .

 Do you tell the customer/driver about the Xtra Power fleet card 80% 70% 0% 50% 40% 30% 80% 20% 20% 10% 0% 0% YES NO SO ETI ES .

 Do the staff/attendants know how to operate the machine of Xtra Power fleet card? 80% 70% 60% 50% 40% 30% 20% 10% 0% YES NO 80% 20% .

60% 0% 10% 20% 30% 40% 50% 60% 70% . What is the usual mode of payment made by the customer? Xtra power fleet card 28% redit/ ebit ard 12% a h.

 Is the outlet well equipped with machines of Xtra Power fleet card? NO 30% 70% YES 0% 10% 20% 30% 40% 50% 60% 70% 80% .

 CORRELATION VALUE: between sales and inform the customer about the loyalty card=0.526804457 between sales and staff competency= 0.375  Correlation  Correlation  Correlation between sales and well equipped Xtra power fleet card machine= 0.763762616 18 .

Some of the machines are very old and they are need replacement with the new one.  The card swiping machines are not properly maintained at some places leading to many customer complaints. which could give a brief idea about the loyalty program.  .  There are no pamphlets available at pumps.Xtra power scheme is not available at all the retail outlet of Indian oil in so at a time it creates problem.  There is Lack of internet facility at some of the outlets and also problem with poor network service.  At some places pump attendants are also not interested in providing this service.

 The card swiping machine must be carefully maintained and provide quick service for any technical difficulties.  Pamphlets must be available at pump so that customers get a brief idea about the program.  Regular visit to pump should be made and pump owner and attendants are encouraged to provide the service for their own benefit and benefit to the customers. If possible some rewards should be given to the pump with highest sale in month by card transaction.  Most of the pump attendant is not so educated hence a training program for them to provide the use of swiping machine and its various technical aspects.The facilities should be made available to more retail outlet.  .  The poor network service at retail outlet need to improve urgently. The old machines must be replaced by the new one without any delay.

 What is the usual mode of payment? CASH 65 DEBIT & CRDIT CARD 6 XTRA POWER FLEET CARD 9 0% 10% 20% 30% 40% 50% 60% 70% .

 Do you know about the Xtra Power fleet card? 12% YES NO 88% .

 From where did you come to know about the fleet card program? 60% 50% 40% 30% 20% 10% 0% ADVERTISE ENT 55% 17% 5% 3% JOURNALS& AGAZINES IOCL RETAIL OUTLET 20%     NEWSPAPER OTHERS .

 Are you satisfied with the service of fleet card? NO 15% PARTLY SATISFIED 20% YES 65% 0% 10% 20% 30% 40% 50% 60% 70% .

 Do you use your fleet card regularly? 30% YES 58% 12% NO SO ETI ES .

 What improvements do you want in the fleet card loyalty program? 60% 50% 40% 30% 20% 10% 0% BETTER SERVICE 58% 30% 12% ORE OFFERS OTHERS .

794310329 through card and use it regularly = 0.332791985 through card and customer satisfaction=0.745896789  Sales  Sales  Sales  Sales   Sales 27 . CORRELATION VALUE through card and information about its all benefit=0.794310329 through card with more improvement=0.262530366 through card and source of information=0.

 Some customers have no clear idea about its benefit and they are happy to use their old traditional way of purchasing oil and lubricant. Hence they were not interested.  Some of the prospective customers were not aware of India Oil Xtra Power Fleet Card Loyalty Program.  .  Some of the customer considers it as very complex and the benefit is not so high. Customers who showed interest appreciated the offer provided and wanted to know more about the program.  Some of the customers facing technical difficulties while using the card since they are not able to understand its operations clearly.Most of the customers were very supportive and welcoming.  Customers most of them are small transporter are not very keen for this program some of them have purchase the card but the card remains as idle as they have very less transaction and lack of information about the benefits.

 Corporate customers are not very interested as there is no any special benefit for them.  Website of Xtra power (www. hence most of the people are not able to understand.iocxtrapower.  There are no any special benefits for customers having larger transaction. So.com) is not regularly updated  . there is a large backlog of forms.Pamphlet and booklets are in English.  There is no dedicated person for collecting the forms.  This program is only for LCV 4 vehicles smaller and medium size vehicle are not included in this program.

Most of the people are not aware regarding the Xtra power scheme. hence most of the customer not able to understand.  Information centers especially in remote areas must be setup so that people have access to this program and they can have detail information about its benefits.  The customers facing any kind of difficulties must be assisted promptly and their problem must be considered with due care. IOC should try to create awareness regarding the program by means of more aggressive advertising.  All the pamphlets and booklets are in English.  Xtra power fleet card banners should be put at proper location with easy visibility.  30 . It should be in regional language (Bengali) and Hindi for easy understanding.

 Need for Local alliance partners.  .  Special benefit must be provided to customers with larger transaction and it is better to divide the customers in groups as per their total transaction.There must be a fixed person for collecting forms and application for the card.  Target new vehicle/fleet owner by tie up with the vehicles companies and give XTRAPOWER FLEET CARD with every new vehicle/truck.  If a card is not used for a specified period then a message should be given as a reminder and if possible to contact the person as there may be some problem for not using the card.  The website for Xtra power needs regular update with more user friendly access and details of new as well as upcoming offers.

Most of the machines are old dated and not properly work which creates a problem. Most of them are satisfied but the major problem they are facing are followingThey don·t get the card in proper time. . In process of preparing customer data base I personally talk over telephone with number of fleet card owner and also the potential customers(transporter/agency)of west Bengal. Most of them is not fully aware about the benefit provided by the fleet card. Transporter having small amount of transaction and local transporter are not interested as the benefit is very less. Less number of retail outlet with such facility. Technical problem regarding operation of card want demonstration.

Multiple credit partner for customers Redemption at any point of time with increased point validity from 1 year. . Benefits provided by iocl is better than its competitor in number of aspects especially in case of insurance benefits. Free sms alert as provided by bpcl for balance check and vehicle tracking Extra benefit scheme for customer with more transaction. lost card liability tyre and battery benefits but inspite of this to get more customer base the company can consider for benefits these are. Fleet card benefit for smaller vehicle.

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