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Project report on:
Branding and Sales Promotion of XtraPower Loyalty Cards
PROJECT GUIDE Mr. Ashok. Ramnani.
Submitted by: Ms. Manasi. Sohani Atharva Institute of Management Studies
At the outset I would like to thank Mr. Milind. Karandikar (DGM-SHIPPING) and S. Mathias (Dy. Manager Training and Development) for providing me with an opportunity to do a project at IndianOil Corporation Limited. Doing a project at IndianOil has provided me with a lot of insights and learning. I would like to express my gratitude towards my Project guide Mr. Ashok. Ramnani (Manager- Retail Sales) who provided me all the support and guidance in spite of his busy schedule. Without his valuable inputs this project would not have been possible. I would like to thank the entire staff at IOCL for being so supportive in the 2 months training period. At last I would like to thank all the respondents who took time out of their busy schedule and helped me in carrying out the project.
The market condition today has changed from sellers market to buyers market. Customers have a lot of options to buy from so he does not have to remain loyal to one particular brand. In order to build loyalty among customers and making them part of the company loyalty programs is part and parcel of a comprehensive customer relationship strategy. Customer loyalty program offers and aims beyond customer satisfaction and loyalty. They aim to go go beyond market profits. They aim to own the customer for life. Loyalty in the Indian fuel retail sector was pioneered by BPCL in the yr 1999 which was then followed by HPCL, IOCL, and RELIANCE. With the fuel prices being market driven and not government control the edge that the government PSU’s had is soon going to be a thing of the past. Indian oil also offers two kinds of loyalty programmes xtrarewards and XtraPower loyalty programmes. Xtrarewards is basically for the general customers while XtraPower is a loyalty programme for the fleet owners as well as users. In this project report I have focused on the Branding and Sales Promotion of the XtraPower fleet card and its variant XtraPower easy fuel card. Here I focus on how the current branding of the fleet card is being done by the company, study its effectiveness. The easy fuel card is currently positioned as a card for the corporate to gift fuel to their stake holders. In this project report I try to find out through market research if its introduction for the general public as a smart card based prepaid card for fuel refills will work? Lastly I give recommendations for branding and sales promotion of the fleet card and give the segment of the target audience for the easy fuel card
VISION MISSION 1
• • •
COMPANY PROFILE OBJECTIVES AND OBLIGATIONS IOCL PRODUCTS IN THE MARKET
2 8 10
1. LOYALTY PROGRAMS• •
AN INTRODUCTION LOYALTY IN PETROLEUM RETAIL
13 15 17 20 20 21 26 28
1. COMPETITORS ANALYSIS
2. SELF ANALYSIS • • •
XTRAREWARDS PROGRAMME XTRAPOWER FLEET CARD PROGRAMME XTRAPOWER EASY FUEL PROGRAM
1. OBJECTIVE OF THE STUDY
2. SALES PROMOTION AND BRANDING CURRENTLY FOLLOWED
29-32 3. MARKET
PROGRAMME QUESTIONNAIRE AND ANALYSIS 40
1. BRANDING CAPSULE FOR XTRAPOWER FLEET CARD
TARGET CUSTOMERS MEDIUM 42-49
BRANDING CAPSULE FOR XTRAPOWER EASY FUEL CARD • • TARGET CUSTOMER MEDIUM OF MEDIA STRATEGIES FOR 56-62 56 1. COMPOSITION CUSTOMERS • • • DIFFERENT 63-64 65-66 6769- FLEET OWNERS DRIVERS CORPORTES 69 CUSTOMERS 70 • 1. QUESTIONNAIRE • • FOR FLEET CARD OWNERS FOR FUEL CARD OWNERS 84 86 .• OTHER BRANDING TECHNIQUES 53 RECOMMENDATIONS 55 4954- • 1. MARKET RESEARCH FOR EASY FUEL CARD PROGRAMME • QUESTIONNAIRE STATISTICS 74 ANALYSIS CONCLUSION RECOMMENDATIONS 83 75-80 71- • • • 81 1.
Introduction to IOCL VISION: “A major diversified. playing a national role in oil security & public distribution. • To provide technology and services through sustained Research and Development. • To attain leadership in developing. . • To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience. adopting and assimilating state-of-theart technology for competitive advantage. • To foster a culture of participation and innovation for employee growth and contribution. transnational. • To maximize creation of wealth. and cost reduction. with national leadership and a strong environment conscience. value and satisfaction for the stakeholders. • To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity.” Mission • To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services. integrated energy company.
the nation’s largest corporate and its highest ranked Fortune ‘Global 500’ company. IndianOil’s pipelines network registered the highest ever operational throughput of 65 million tons of crude oil and petroleum .4% during the year. IndianOil managed to notch up a growth of 4. (IndianOil) reported an excellent performance for the year 2009-10. The Corporation's refineries surpassed 100% capacity utilization for the third consecutive year and clocked a throughput of 50.6% registering a sales volume of 63. said. Bansal.7 million tones. While the overall petroleum products consumption in the country grew at 3. Mr. Indian Oil Corporation Ltd. B. Sharing the highlights of the year. Chairman.Company profile Strongly driven by the highest ever sales of petroleum products and boosted by an increasing contribution from its Petrochemicals and Gas businesses. “Despite the uncertain phase that the global economy went through. the Indian economy showed a resilience that was truly remarkable. M.7 million tones. IndianOil.
To realign the company’s strategy in the light of emerging challenges in the future. The total net under-recovery on account of price under–realisation on PDS Kerosene and domestic LPG in the financial year 2009-10. The Gross Refining Margin for April-March 2010 is USD 4.074 crore. 3.69 per barrel during the previous year.159 crore. The Board of Directors has recommended a dividend of Rs 13 per share. IndianOil’s ranking improved from 116th to 105th in the prestigious Fortune Global 500 listing.15 for 2008-09. Core Performance Marketing . During the year 2009-10.47 per barrel as compared to USD 3. he added. the company has been granted discount of Rs 7.100 crore has been received during the year. the company’s Earnings Per Share (EPS) stands at Rs 42.71. Financial Performance IndianOil’s gross turnover (inclusive of excise duty) for the year 2009-10 touched Rs. in which the company celebrated its Golden Jubilee. is Rs. 2. This is in comparison with a net under-realisation of Rs. 7. In addition.Nil crore in 2008-09.products”. a new Vision was adopted by the Corporation with an aspiration to emerge as the Energy of India. For the year 2009-10.10 as compared to Rs. out of which Rs. as per the under recovery sharing mechanism.548 crore received from upstream companies.221 crore. The Profit After Tax was Rs 10. For the year 2009-10. 12.172 crore. IndianOil has accounted for cash compensation of Rs 15.
9% among PSUs and several new businesses of international airlines were garnered during the year. The Rajiv Gandhi Grameen LPG Vitarak scheme. 9 marine stockists and 27 CFAs. In the highvolume.643 petrol/diesel stations (retail outlets). high-competition direct consumer business. This includes commissioning of about 414 special-format Kisan Seva Kendra (KSK) outlets in rural markets during the year. IndianOil's world class SERVO lubricants were formally launched in Qatar and exports touched nine TMTs with a growth of 34%. Refineries . IndianOil enrolled 42 lakh new LPG customers during the year 2009-10. 74 industrial stockists.IndianOil continued to maintain its dominance in the market clocking the highest ever level of sales during the year 2009-10.4%. IndianOil continued to be the leader in the aviation business with a market share of 62. During the year. BS-IV quality petrol and diesel was launched in 13 cities. raising the total number of Indane households to nearly 574 lakh. During the year. SERVO lube network was also expanded to over 200 auto stockists. Sales volume and market shares improved in almost all the segments in marketing. with the expansion of IndianOil’s countrywide network which touched 18. taking their total to 2947. IndianOil continued to be the leader with a market share of 65% and long-standing business ties with core sector customers were further strengthened. Retail sales in MS (petrol) and HSD (diesel) registered a robust growth of 14% and 9. IndianOil's market share in the finished lubes segment grew by 1. a new concept to extend the availability of LPG to the rural market was launched during the year. To cater to the growing demand of Autogas (LPG). Nondomestic packed LPG sales recorded a 29% growth while bulk LPG sales registered a 45% growth over the previous year.2% respectively. 50 Auto LPG Dispensing Stations were commissioned during the year taking their tally to 273.
capacity utilisation. Some of the major pipeline expansion projects include the Paradip- . IndianOil's refineries achieved over 100% capacity utilization for the third consecutive year. To widen the crude oil basket. value addition and enhanced gross refining margins. Haldia. Barauni and Gujarat refineries. Algeria. The 290 km.000 crore. Panipat. DHDT at Bongaigaon Refinery and Panipat Refinery Expansion. residue upgradation and MS/HSD quality improvement at Gujarat Refinery. IndianOil's network of underground highways breached the 10. Digboi.3 wt% was achieved during the period. Haldia. Continuing with the direct chartering of ships for petroleum imports. Mathura refineries commenced production of BSIV compliant petrol and diesel. As a result of sustained efforts in energy conservation. Projects IndianOil is currently implementing projects with an approved cost of over Rs 47. Also the best distillate yield of 75. several new grades were procured from Australia. Bongaigaon.45 MMTPA capacity Chennai-Bengaluru product pipeline was also commissioned during the period. Guwahati. Four projects were commissioned for flare gas recovery systems at Digboi. Nigeria and Libya. Some of the projects completed during the year are MS quality upgradation projects at Panipat and Mathura.For the year 2009-10. Kazakhstan. IndianOil refineries clocked the lowest overall specific energy consumption of 62 MBTU/BBL/NRGF (MBN) during the year as against 64 in 2008-09. The Mathura-Delhi pipeline became the first to supply BS-IV complaint petrol to the National Capital Region. MSQ upgradation projects at Barauni. crude imported for IndianOil touched 39 million tonnes in 2009-10.550 kilometre mark and registered the highest ever operational throughput of 65 million tonnes. Pipelines During the year. 1. The major ones in the refining segment are . Stream-sharing between group refineries ensured better optimisation.a 15 MMTPA refinery at Paradip.
During the year. for the successful development and commercialisation of multifunctional additives for Premium Grade Diesel and Lubricity additives for Ultra low sulphur Diesel. IndianOil took big strides in new businesses during the year 2009-10. IndianOil won the prestigious Technology Day Award 2010 from the Government of India.108 km) and the Dadri-Panipat R-LNG line. In addition. Iran(One) and Venezuela(One) with Farm-in blocks at Gabon(One). Nigeria(One) and Timor-Leste(One). IndianOil was awarded the Petroleum Exploration Licence for one operatorship block by the Government of Gujarat under NELP VII while two blocks have been provisionally awarded under NELP VIII.Sambalpur-Raipur-Ranchi pipeline (1. DHDS catalyst. Integration Initiatives Exploration & Production (E&P) During the year. The project related to the integrated crude oil handling facilities at Paradip is also under way. the company had earlier bagged blocks in Yemen(Two). . IndianOil’s E&P portfolio comprises eight blocks in the NELP rounds and two blocks in the CBM rounds with one farm-in block in the domestic sector. Over 351 patents were filed and some of the new inhouse technologies and catalysts developed are the Olivorus-S bioremediation technology. Research & Development IndianOil’s R&D continued to add value to different facets of the companies’ activities. 181 lube formulations were developed and 75% were commercialized. New Businesses Besides consolidation in core areas. IndVi catalyst for improved distillate yield and FCC throughput. Libya(Three). a special Indicat catalyst for BS-IV compliant Diesel.
has been completed and the first batch of polymers dispatched. at a cost of Rs 14. A long term gas supply agreement has been signed with NTPC. Korea. a leading manufacturer of high quality edible oils. Other Diversification Initiatives IndianOiI has forayed into wind energy business with the commissioning of a 21 MW wind power project in the Kutch district of Gujarat and the cumulative power generation from the 14 wind turbine generators has crossed 6 crore .28. IndianOil’s JV – Green Gas has been granted authorisation for City Gas Distribution(CGD) at Agra and has also emerged the lowest bidder for CGD at Allahabad. generating rural employment of over 1.the Naphtha Cracker and downstream polymer units at Panipat . Bio-fuels IndianOil has the largest captive plantation for bio-fuel production in India – 1012 hectares – which is underway in Chattisgarh and Madhya Pradesh. Diversification Initiatives Gas IndianOil sold 1.4 lakh mandays. Bangladesh.000 tonnes with a growth of over 30% from the previous year. IndianOil's largest petrochemicals investment.Petrochemicals During the year. Chandigarh and Ghaziabad. UAE and Australia.89 million tonnes of R-LNG during 2009-10 and turnover grew by 3.. IndianOil’s LAB (Linear Alkyl Benzene) sales touched 124 TMT and over 19 TMT was exported to six countries including Yemen. The PTA (Purified Terephthalic Acid) business expanded to cater to all major domestic customers and clocked a sales volume of 5.400 crore . IndianOil has also entered into a partnership with Ruchi Soya Industries Ltd. to establish a model value chain for the production of bio-diesel in the State of Uttar Pradesh.9% over the previous year.
1 among Sri Lanka's leading listed companies for the third consecutive year. IOML's sales grew by 11% while the industry grew by (-)1.5% in the highly competitive bunker market.9% and recorded its highest ever throughput of 262 TKL. Lanka IOC Plc (LIOC) LIOC has been ranked No.9%. IndianOil Middle-East FZE IOME FZE is IndianOil's subsidiary in the Middle East and is mainly into blending and marketing of SERVO lubricants and marketing of petroleum products in the Middle East.4% to 12.Overseas Subsidiaries IndianOil (Mauritius) Ltd. Globalisation Initiatives . Five new lube distributors and 14 SERVOXpress outlets were commissioned during the year.units(KWHR) since commissioning in January 2009. making it the only petroleum installation in the country to obtain the prestigious recognition. During 2009-10. During the year. lubes . besides the introduction of Nitrogen filling facilities for automotive tyres – the first of its kind in Sri Lanka. The company emerged as the third largest player in the Mauritian petroleum industry. Karnataka and North East states and an all-India phased roll out is being planned. IndianOil has signed a MoU with the Nuclear Power Corporation of India Ltd. the overall market share of the company went up from 9. for investing in the nuclear energy sector in the country. IOML also emerged as a leader in the aviation fuelling business with a market share of 41.(NPCIL). Africa and CIS countries. catering to all types of bunker fuels and lubricants at all ports of Sri Lanka. IndianOil has also launched Solar Lanterns in Orissa. It also achieved a market share of about 43. (IOML) In the year 2009-10. The company’s terminal at Mer Rouge received the ISO 9001-2008 accreditation.4%.
Bahrain. UAE and Nepal. . Oman. Objectives & Obligations Objectives • To serve the national interests in oil and related sectors in accordance and consistent with Government policies.sales grew by 120% over the previous year and finished lubes were exported to Qatar. Yemen.
• To enhance the country's self-sufficiency in crude oil refining and build expertise in laying of crude oil and petroleum product pipelines. • • To earn a reasonable rate of return on investment. petrochemicals. • To ensure maximum economy in expenditure. • To minimize fuel consumption and hydrocarbon loss in refineries and stock loss in marketing operations to effect energy conservation. natural gas and downstream opportunities overseas. • To optimize utilization of refining capacity and maximize distillate yield and gross refining margin. Financial Objectives • To ensure adequate return on the capital employed and maintain a reasonable annual dividend on equity capital. To avail of all viable opportunities. integration and diversification by harnessing new business opportunities in oil exploration production. arising out of the Government of India’s policy of liberalization and reforms. • To maximize utilization of the existing facilities for improving efficiency and increasing productivity. • To achieve higher growth through mergers. • To further enhance marketing infrastructure and reseller network for providing assured service to customers throughout the country. • To inculcate strong ‘core values’ among the employees and continuously update skill sets for full exploitation of the new business opportunities. . acquisitions. • To develop operational synergies with subsidiaries and joint ventures and continuously engage across the hydrocarbon value chain for the benefit of society at large. both national and global.
To ensure prompt dealings with integrity.To develop techno-economically viable and environment-friendly products. • To reduce the cost of production of petroleum products by means of systematic cost control measures and thereby sustain market leadership through cost competitiveness. • Towards community: . . environment protection and occupational health at all production units. To have fair dealings with recognised representatives of employees in pursuance of healthy industrial relations practices and sound personnel policies.To develop their capabilities and facilitate their advancement through appropriate training and career planning. • To develop long-term corporate plans to provide for adequate growth of the Corporation’s business.• To manage and operate all facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment. To maintain the highest standards in respect of safety. • To complete all planned projects within the scheduled time and approved cost. courteous and efficient service and quality products at competitive prices. • Towards suppliers: . • Towards Defense Services: . • Towards employees: . Obligations • Towards customers and dealers: .To provide prompt. without budgetary support. impartiality and courtesy and help promote ancillary industries.To maintain adequate supplies to Defense and other Para-military services during normal as well as emergency situations.
and upholstery cleaning. polishing and lamination installation too. In the retailing segment. perfuming. tyre/battery checkups. SERVO range of lubricants is available through a network of SERVOXpress stations. reliability and . The SERVOXpress is a one-stop shop for quick. A/C service. It is today a fuel synonymous with safety. bazaar outlets and thousands of auto spare parts shops across the country. The SERVOXpress stations have facilities for oil change. sustained brand enhancement and new generation packaging is a one-stop shop for complete lubrication solutions in the automotive. efficient and safe cooking fuel. Indian Oil pioneered the launch of LPG in India in the 1970s and transformed the lives of millions of people with the introduction of the clean.IOCL PRODUCTS IN THE MARKET SERVO Indian Oil's SERVO range of lubricants reigns as the undisputed market leader in the Indian lubricants market Known for its cutting-edge technology and high-quality products. The SERVO range includes over 500 lubricants and 1200 formulations encompassing literally every lubricant requirement. SERVO backed by Indian Oil's pioneering R&D. providing customers with a refreshing experience. easy and convenient auto care. vacuum cleaning. INDANE LPG GAS Indane is today one of the largest packed-LPG brands in the world. LPG also led to a substantial improvement in the health of women in rural areas by replacing smoky and unhealthy chullahs with Indane. extensive blending and distribution network. besides Indian Oil petrol stations. industrial and marine segments.
faster acceleration. XTRAMILE SUPER DIESEL . Indian Oil’s Indane LPG gas is used in 40 million homes as cooking fuel and commands over48% market share in India. Indian Oil Aviation Service refuels over 1500 flights – from the bustling metros to the remote airports linking the vast Indian landscape. high octane. It is obtained from natural gas through fractionation and from crude oil through refining. abundant and eco-friendly fuel. enhanced engine cleanliness and lower emissions. more power. Indian Oil Aviation services have a market share of 65% with a network of 101 Aviation Fuel Stations (AFS) meets complete aviation fuel requirement of the Defense services. from the icy heights of Leh (the highest airport in the world at 10. XTRAPREMIUM is custom designed to deliver higher mileage. AUTO GAS AutoGas (LPG) is a clean. It is a mixture of petroleum gases like propane and butane. INDIAN OIL AVIATION SERVICES Indian Oil Aviation Service is a leading aviation fuel solution provider in India and the most-preferred supplier of jet fuel to major international and domestic airlines. and better pick up.convenience. XTRAPREMIUM PETROL XTRAPREMIUM Petrol is India’s leading branded petrol boosted with new generation multifunctional additives known as friction busters that prevents combustion chamber deposits.682 ft) to the distant islands of Andaman & Nicobar. The higher energy content in this fuel results in a 10% reduction of CO2 emission as compared to MS. Between one sunrise and the next.
lower maintenance costs and improved engine protection. rest. Transport fleets that operate a large number of trucks crisscrossing the country are using XTRAMILE to not only obtain a higher mileage but also for low maintenance costs. “SWAGAT” HIGHWAYS FLAGSHIP RETAIL OITLETS There are number of such retail outlets planned across the country out of which many have been commissioned with a complement if fuel and nonfuel. Kerosene is used as a domestic fuel for heating / lighting and also for manufacture of insecticides/herbicides/fungicides to control pest. Commercial vehicle owners choose XTRAMILE because they see a clear value benefit in terms of superior mileage. weeds and fungi.Indian Oil’s XTRAMILE Super Diesel. food. Since kerosene is less volatile than gasoline. both in the ‘lifestyle’ and ‘passenger’ category. XTRAMILE has brought in a huge savings in the high mileage commercial vehicle segment. Non-fueling offering through ‘Best-in-class’ alliance on exclusive basis wherever possible communication. colour & burning qualities (char value). the leader in the branded diesel segment is blended with world-class ‘Multi Functional Fuel Additives (MFA). SUPERIOR KEROSENE OIL Kerosene is distillate fractions of crude oil in the boiling range of 150250°C. prefer XTRAMILE as a fuel for its added and enhanced performance. increase in its evaporation rate in domestic burners is achieved by increasing surface area of the oil to be burned and by increasing its temperature. They are treated mainly for reducing aromatic content to increase their smoke point (height of a smokeless flame) and hydro fining to reduce sulphur content and to improve odour. A growing section of customers who own diesel automobiles. parking . healthcare. The two types of burners which achieve this fall into two categories namely vaporisers & atomisers.
The primary goal for most loyalty programs is the acquisition of information relating to their customers' spending habits. A great product or service is the starting point for customer loyalty. loyalty programme. retail site management techniques all benchmark to global standards.AN INTRODUCTION Loyalty programs are structured marketing efforts that reward. around 1500 Xtra Care retail outlets will be ready soon. capability training. Indian Oil has moved several steps ahead by introducing fortnightly random sampling with specific importance given to Research Octane Number (RON) sampling which is truly the definitive test for quality and quantity. automation. loyal buying behavior — behavior which is potentially of benefit to the firm. Loyal customers evangelize the brand by sharing their satisfactory experience with their friends and colleagues. LOYALTY PROGRAMS. XTRA CARE The launch of Xtra Care was the culmination of a series of plans in retail design. Great marketers architect loyalty programs from day one. While some companies do reverse these priorities. Earning customer loyalty goes beyond gaining customer satisfaction. Loyalty programs are initiated by businesses with two main goals. the above hierarchy holds true for most. product and service up gradation.vehicle care etc. While the industry standard is to take samples on a quarterly basis. . while the secondary goal is to actively cultivate loyalty amongst customers to ensure they continue patronizing the business. and therefore encourage. So far over 400 Xtra care retail outlets have been set up.
Loyalty programs have gained in popularity immensely in the past fifteen years. Many loyalty programs offer a sustained discount (such as 10%) for a period of time . such as eBay. Still others offer points which may then be redeemed for products which may or may not be directly related to the business. Ultimately. Businesses have capitalized on this when designing their loyalty programs. many non-airline businesses have combined their own loyalty programs with those of the airlines. such as access to faster-moving lines or special parking spaces. Many businesses find little profit in the use of loyalty programs. In these loyalty programs. often offering benefits that cost little. in which consumers feel that they deserve special treatment. the success of loyalty programs depends on how well the business uses the data it gathers to further refine its policies and loyalty programs. upgrades. one accrues points by flying on the airline and then 'cashes in' the points in exchange for tickets. attribute much of their financial success to a well-executed use of such programs. Some of the first loyalty programs were instituted by airlines in the 1970s in the form of frequent flyer miles.perhaps a year. a 20% discount on a single purchase once a customer has spent Rs 2000 at the business. or even third-party benefits. but carry with them an assumed prestige. offering frequent flyer miles in exchange for everything from telephone usage to purchasing gasoline. .Loyalty programs may offer benefits in a number of different ways. in no small part due to the development of a culture of entitlement. In the past decade. while others. Others offer a discount once certain criteria have been met — for example. Loyalty cards are the most common form of loyalty programs found throughout the world today. perhaps for the life of the business.
there won’t be such differentiation and loyalty programs will be there for every segment of consumers. right now many such loyalty programs are being run by the petro-retailers like Smart Fleet (BPCL). But in future. Of course. XtraPower (IOCL). 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. The sector has moved away from being government-controlled. With the going having gotten tough. This report gives the growth of loyalty programs in the petroleum retail . recent years have seen fundamental changes in the way business is being done. However.Loyalty programs an integral part The immense competition will make loyalty programs an integral program of the day-to-day functioning of petro-retailing. a move that has brought new levels of competitive threat and customer focus. Loyalty programs are ‘in’ with each of the big players wooing wallet shares with loyalty card programs. these programs are mainly focused at the bulk consumers and the small consumers are left unnoticed more or less. Petrocard (BPCL) and others. Loyalty In Petroleum Retail For the petroleum retail sector in India. Drivetrack (HPCL). Transconnect (Reliance).
000 outlets across the country. Bharat Petroleum Corp. In the Indian Petroleum Sector Three companies – Indian Oil Corp. focusing on the evolution of the pioneering ‘PetroBonus’ program. These players cater to a market of about 40 million vehicles (approx. (HPCL) dominate the petroleum retail sector in India with about 93% market share between them. capital expenditure. Significantly. the Indian oil and gas sector was state controlled under an Administered Pricing Mechanism (APM) that controlled the production pattern. (BPCL). It has been a leap from the Neolithic to Neo and many of the intervening stages have been neatly bypassed. The competitive threat is bigger. service driven and. Ltd. and the ongoing process of divestment of the government stake in the business. The retail experience. relationship driven and have condensed decades of evolution into a three.Prelude to Loyalty the changing retail experience and the rise of loyalty programs have seen parallel development in the Indian context. the first and largest in India. All the companies were state owned and private investment in the sector was not allowed. Until 1999. Ltd. the Indian government has been steadily deregulating the sector. the sector has seen itself exposed to new market forces. which virtually created the market for loyalty programs in the sector. With private players entering the fray. Ltd. 77% two wheelers. the existing players have recognized the need for them to quickly evolve to be marketing driven. until recently. the pricing is increasingly market driven and consumers are demanding more. ultimately. and pricing of petroleum products. Reacting to the growing need for boosting domestic production levels. With the deregulation of the sector in 1999.sector in India. and Hindustan Petroleum Corp. was bare bones. (IOCL). The Changing Retail Experience. .to four-year time frame. 13% cars in 2002) on Indian roads with a retail network of over 15.
As consumers have begun to express their preferences. with any multi-fuel dispensers. cafes. launched in September 1999. lubes. including loyalty programs. The outcome of these changes is that the urban consumer is getting used to a radically different experience at the petrol pump that is translating into higher service expectation.. Credit cards. branded fuels. In recent times. Consumers are being given reasons to build preference among the three companies (IOCL. internet kiosks. bank ATMs. BPCL and HPCL) and their brands. groceries and more. When developing the program. giving the customer more reasons to spend time and money at a location that offers more than just fuel. the outlets have seen a complete facelift. and cash the preferred payment mode. better trained attendants. the companies have entered an inevitable battle for business through relationship building initiatives. and service elements. debit cards and loyalty cards are also widely accepted.with the gas station being nothing more than a place to tank up. COMPETITORS ANALYSIS The pioneer was BPCL with its ‘smartcard’-based PetroBonus program. The product offering has widened to include blended fuels. however. etc. BPCL had no . high-octane fuels. The outlet itself is expanding to include grocery stores.
but also built up every aspect of loyalty program management that continues to give it immense returns. except the frequent flyer programs being run by the airlines. This was relationship marketing paying off in the best way possible. a shift that opened up many doors over time. BPCL could launch a new product. a new facility at its outlets. and reach out to its best customers in a targeted. intelligent fashion. Capture and use of data is the fundamental driver of loyalty success. A year into the program. driving up revenues within the existing member base. a principle that BPCL caught on to early. a new partnership. when BPCL launched its high performance fuel ‘Speed’ in mid 2002. Data capture of the profile and transactions of each member converted an anonymous customer base to an increasingly ‘known’ member base. A profiling exercise and a customer satisfaction survey led to invaluable insights on the members and the wrinkles in the service that could be ironed out. leading to campaigns that increased fueling on Sundays and during non-peak hours of the day. it could immediately make an offer to . For instance. as the economics of going direct started to become attractive in addition to the immense marketing benefits. The PetroBonus Story the very fact that the fundamental proposition and working of PetroBonus has required so little change is a testament to the meticulous planning that went into it in the initial stages of program development.significant local examples to go by. a new fuel blend. BPCL started segmenting members by activity level and created targeted communication and offers to activate members. BPCL didn’t just get a head start in launching the program early. BPCL initiated a monthly analytics publication for monitoring program health and identifying specific campaign opportunities that could be mined from the member database. Data analytics also identified opportunities to change fueling patterns. In addition to the analytics driven campaigns was the luxury of the volume of member database.
an open channel to communicate with them and an accepted and widely used program currency mechanism to reward them proved an enormous advantage to BPCL in marketing many products and services. PetroBonus also offered a co branded card for Amway members. The situation today is that PetroBonus has reached a critical mass that gives it immense power.” the card brand “PetroCard” and the program currency “PetroMiles. offering them bonus PetroMiles for fueling up with Speed.” This gave BPCL the flexibility to extend the program. The luxury of having a database of members. BPCL also focused on using new interactive media to improve the PetroBonus experience while improving efficiencies. points statements.specific segments of PetroBonus members who fit the Speed target audience profile. BPCL created a dedicated website for PetroBonus and used the web and e-mail for surveys. but equally from the emergence of co-branded programs with banks. online campaigns. the card and the currency to strategic and tactical partnerships or promotional activities as required. in a two-pronged strategy of e-mail database building and widening of the online and e-mail offering. is not just from similar loyalty programs by other petroleum companies. With the mobile boom. SMS-based services are on the rise. The Second Wave . etc. the strength was in three well-defined brands that were built: the program brand “PetroBonus. This competition. rewards catalogues. with the road ahead seeing technology and analytics playing an ever-greater role in increasing operational efficiencies and deepening the relationship with the customers through interactivity and flexibility. There are problems to be sorted out for sure and the competition nipping BPCLs feet could well have an advantage in being leaner. as it turns out. On the branding front. which are shaping this quickly-maturing market..
launching SmartFleet in February 2001. Also. discounts. These programs gave fleet owners the option of giving drivers pre-loaded cards which allowed better MIS. customer loyalty programs did not happen until mid 2002. Network loyalty also came into the picture when IOC launched a co-branded card with MyShoppe. BPCL was again the pioneer. tying up with banks that were also looking to launch their petrol loyalty programs. Both of these companies focused their initial marketing efforts on building their retail outlet brand and services before launching arrange of card based programs. BPCL designed and launched the SmartFleet program in early 2001 a smartcard format found relatively few takers. followed by IOCLs PowerPlus in January 2002. Two other developments in basic program formats were the introduction of Fleet card and Network loyalty programs. increased point earnings opportunities. with most new launches preferring to ride on the existing card reader network of the magnetic strip-based credit/debit cards. The Fleet Card phenomenon: A classic case demonstrating the power of data analytics to drive strategic initiatives is the launch of India’s first fleet card program. fuel for points. The credit and debit card based programs offered the customers all the facilities of a regular credit/ debit card in addition to a host of specific services including transaction fee waivers. and points earnings. with a fresh set of offers for the customers. The entry of the banks into this space brought about the next wave of loyalty programs. Analysis of PetroBonus data showed a segment of members with abnormally high usage. etc. SmartFleet. a network loyalty . surcharge waivers.For the other two players. These programs leveraged the wide acceptance of the credit/debit card as a payment device and an established reader network. IOCL and HPCL. After understanding their distinct needs of fleet owners. both companies took the co-branded route. On the Fleet card front. transaction tracking. insurance coverage. It turned out that this segment was that of fleet owners who were giving PetroBonus cards to their truck drivers for fuelling up.
XTRAREWARDS LOYALTY PROGRAM Indian Oil XTRAREWARDS is India's first on-line rewards program that seeks to inculcate the habit of redeeming points. The loyalty program rewards . Indian Oil’s XTRAPOWER Fleet Card has emerged as the largest fleet card in the country with the widest retail outlet coverage. • • XTRAPOWER XTRA REWARDS XTRAPOWER FLEET CARD 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. SELF ANALYSIS Loyalty Programs at Indian oil IndianOil’s loyalty programmes are designed exclusively to benefit the large number of its customers who have been patronizing the brand for over five decades. The second wave gave the arena vitality as companies launched programs with fundamentally different formats. In just under two years of its launch. giving the consumer an array of options to choose from.program with a number of retail chain affiliates.
For enhanced security. Moreover. Entertainment. it has emerged as the largest fleet card in the country with the widest retail outlet coverage. 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. leading to an improvement in vehicle utilization and route compliance. XTRAPOWER is also backed by IndianOil's vast infrastructure network and web-based support services. credit and debit cards. Food. Automobile. Apparel and Hospitality sectors XTRAPOWER FLEET CARD PROGRAMME The XTRAPOWER Fleet Card programme is a complete smart cardbased fleet management solution for fleet operators and corporate for cashless purchase of fuel & lubricants from designated retail outlets (petrol pumps) of IndianOil through flexible pre-paid and credit facilities. Travel. Each fleet owner is issued a Fleet Control Card and vehicle-specific Fleet Cards for every vehicle enrolled under the programme. Additional points can also be earned outside the Indian Oil network. covering prominent FMCG.customers paying by cash. the fleet card transactions are authorized through a unique Personal Identification Number (PIN). The fleet card also offers an exciting rewards programme and unique benefits like personal accident insurance cover and vehicle tracking facilities. . In just under two years of its launch. the card can help track each vehicle's movement across remote corners of the country. Any business entity owning or operating a vehicle fleet can become a member of the XTRAPOWER fleet card programme at a nominal annual charge.
the Fleet Control Card Number can be used for the following transactions: CCMS Recharge Use your Fleet Control Card Number & Control PIN to recharge your CCMS Account by making lump sum cash deposit at any designated retail outlet.B. Fleet Control Card This is a card to which all your fleet cards are linked. To activate your card. you need to activate your card(s). Thereafter money available in the CCMS A/c can be used for reloading multiple fleet cards through CCMS Reload. Web User ID and Password The web User ID and Password will allow you to access web-based services of XTRAPOWER such as viewing transactions on . However. Activation Before using the feet card (s) to make any purchases. You can also submit your request for redemption of any other reward item from the rewards Catalogue on the smart card terminal. therefore. This card is not meant to be inserted in the smart card terminal for any transaction. at any of the designated retail entries Accumulate XTRA Points: All transactions on your vehicle-specific fleet cards are linked to the Fleet Control Card.Program Details Fleet Card Each one of your Fleet Cards is a smart card. which can be used by the card holder (driver of the vehicle) to make purchases of fuel/ lubricants at designated retail outlets of IndianOil. N. please visit the nearest designated retail outlet of IndianOil and present your card for changing the default PIN (0000) to a new PIN (any 4-digit number). XTRA Points' Redemption at a Retail Outlet Use your Control Card Number & Control PIN on a smart card terminal at a designated Retail Outlet of IndianOil for instant redemption of XTRA Points for fuel and lubes. Redemption requests can also be submitted by filling a redemption form or there an online request on XTAPOWER website. all XTRA Points earned by each of your fleet cards accumulate against this card.
It is a tailor-made program for Fleet Owners. Based on the smart card technology. co-driver and helper.your fleet cards. Note In case of credit variant of XTRAPOWER card. Facility to track each vehicle Personal Accident Insurance Cover and Medi-claim for fleet owner. Card Member's Name. Detailed fleet management reports. XTRAPOWER FLEET CARD PROGRAM XTRAPOWER is one-of-a-kind fleet card program of IndianOil.K. Convenience . Tyre and Exide Battery • • Once enrolled. It is a powerful and unique fleet management tool for an efficient and cost-conscious fleet owner like you. Vehicle Number and Expiry Date printed on the card. XTRA Points' balance. It facilitates cashless fuel purchase and gives you systematic record of transactions through the card. The XTRAPOWER smart card is personalized with details like Card Number. With XTRAPOWER Fleet Card you now have an easy. vehicle tracking. driver. the XTRAPOWER card gives: • • • • Payment convenience-both prepaid and credit options. CCMS & card wise balance. which gives you XTRA convenience. Operators & Corporates as well. the prepaid pouch of the card must have the required amount so as to avail of online tracking facility. XTRA security and XTRA opportunity to earn truckloads of rewards. Customer ID. redemption of XTRA Points etc. monitor and control your entire fleet. the fleet owner is assigned a Fleet Control Card with Control PIN and "XTRAPOWER" smart card for every vehicle enrolled under the program. convenient and rewarding way to drive. Attractive rewards on purchase of fuel & lubricants through the Card Opportunity for earning additional rewards on purchase of J.
Control XTRAPOWER gives you full control on the amount you load on your prepaid cards from wherever you are. there is a pre-approved daily limit on the card. With the help of these slips you can keep track of your auto fuel/ lubes expenses and routes traveled by each of your fleet vehicles. card balance after transaction and odometer reading of the vehicle (if provided by the driver) etc. you can make payments in Mumbai and reload your Fleet Cards in Chennai. You can also deposit the desired amount in Central Cash Management System (CCMS) through designated of HDFC bank. For every transaction. pre-load as much money as you require. product purchased.* On the credit variant. where "Quality & Quantity" of fuels is assured. time and location of the transaction. This slip will indicate the date. In case of credit variant.There are two variants of XTRAPOWER fleet card Prepaid & Credit. drive into one of these IndianOil Retail Outlets and use the fleet card to purchase Auto fuel and lubricants. On prepaid cards. For example. cards are sent with credit limit as approved by the credit partner Sundaram Finance Limited (Shortly to be made available through other banks). Every time you need to tank up fuel. Freedom The XTRAPOWER fleet cards are accepted at designated Retail Outlets of IndianOil. charge slip would be printed (shown alongside) for your records. Within prescribed limit the pre-loading facility has been made available at designated Retail Outlets of Indian Oil. value of purchase. . One copy of the transaction slip is given to the driver of the vehicle. card number.
g. It also offers "Online Tracking" facility (at nominal cost). Xtra Points You earn XTRA Points every time you use your XTRAPOWER fleet card(s) for making purchases of auto fuels & lubricants.iocxtrapower. can be redeemed for fuel. (Currently available on JK Tyres only) Wherever You Go XTRAPOWER program offers card-insert based basic truck tracking at no extra cost. Xtra Benefits In addition to the key benefits.Keep Track You can keep track of your fleet by logging on to our website www. The lost card liability insurance protects you from any liability as a result of card loss or card theft. through alliance partnerships developed with various manufacturers. As XTRAPOWER member you can view the tracking report for your vehicles as well as transactions made on each of your fleet cards for any period. Medi-claim and lost card liability. XTRAPOWER provides you with value-added benefit of discounts on fleet-related products e. which would vastly improve fleet utilization. . services etc. which on accumulation. Tyres. The Insurance Cover is provided to the Card member as well as to the vehicle crew. lubricants and many more exciting gifts.com. Xtra Protection Now enjoy XTRA Protection through XTRAPOWER insurance cover for Personal Accident. spares.
which facilitates paperless gifting of fuel & lubricants from designated retail outlets of IndianOil. A 24x7 dedicated toll-free helpline caters to customer queries. that too from select IndianOil retail outlets numbering over 6. and comes with the option of multiple recharging. Corporate members can log into the dedicate website for allocating requisite funds and for topping up. thereby eliminating the need for maintaining separate MIS for reimbursements. Without it the nation will come to a standstill. A complete fuel gifting solution for employees. repeat incentivisation. All transaction details can be viewed on the website.000. XTRA Points earned etc. Consolidated Reports The members would receive consolidated monthly statement detailing fuel/lubes purchases by each vehicle. XTRAPOWER EASY FUEL PROGRAM The XTRAPOWER Easy Fuel gift card facilitates corporates in paperless gifting of fuels and lubricants to their employees. customers and other stakeholders. What better gift to receive than one that meets your everyday requirement? . If the driver has provided the odometer reading of the vehicle at the time of transaction.XTRAPOWER card members will enjoy the power of IndianOil's nation-wide network of retail sales points. the Card member can also ascertain the mileage performance of the vehicle. As India's first smart card-based fuel voucher. and hence ideally suited for reimbursement. etc. or topping-up. it offers amazing convenience and security among the gifting options available today. Fuel drives the economy. supported by IndianOil's team of Sales Officers and Fleet Managers. customers and other stakeholders of Corporates XTRAPOWER Easy Fuel is a Smart Card based program.
Forget worries of your voucher being misused due to loss or misplacement. This enhances the security of the cards and in this respect is different from the Gift Cards that the banks have introduced in the recent past which operates on a magnetic stripe card. amazing convenience & security in terms of gifting options. Upon exhausting the amount once loaded you can recharge the card which is ideally suited for reimbursement. . IndianOil brings to you its rich experience in the Oil and Gas Industry acquired over 50 years of its worldwide presence. However. This PIN can be changed by the card holder at any point through our Point Of Sale Terminals. Programme Details Features XtraPower Easy Fuel is India's first smart card based fuel voucher. These smart cards come with the added security feature of a user defined 4digit PIN which needs to be punched in for undertaking transactions on the card. XtraPower Easy Fuel Card comes with an option of multiple recharging or topping-up. XtraPower Easy Fuel comes with a user-defined 4-digit PIN for ensuring security of your card. the Energy of India is present at every nook and corner of the country and you will find opportunity to use the XtraPower Easy Fuel Card at select petrol pumps across India covering major cities and highways which are 6000 in number at present.Placed in the 106th position in the Fortune's Global 500 Listing. We also have a 24x7 dedicated toll-free helpline to assist you. The gift cards introduced by banks are for single recharge only meaning the card becomes useless once the amount pre-loaded in the cards is used. IndianOil. the XTRAPOWER Easy Fuel Card Program offers you. In short.
Further all transaction details of the cards can also be viewed through our website thereby eliminating the need for maintaining separate MIS for reimbursements etc. Conduct a market research to find out the effectiveness of existing strategies 3. To make a Branding Capsule for the XtraPower Fleet card and Easy fuel card 4. the access to which will be given to each card member.We have a dedicated web-site. . The card member (Corporate) can logon to the website with his dedicated login id and password and keep a control on the cards by allocating requisite funds. To give recommendations to IOC to improve the implementation of XtraPower Fleet and Easy fuel Card loyalty program. The power to decide on the exact amount of gift is with you. Indian Oil has a 24x7 dedicated toll free helpline (18004255599) which can cater to the queries and help out in case of any difficulty. OBJECTIVE OF THE STUDY 1. You (Corporate) decide the amount of gift you want to give and then allocate the same to the particular card through our website. Study of current sales promotion and branding strategies followed by IndianOil 2.
SALES PROMOTION AND BRANDING OF THE LOYALTY CARDS CURRENTLY FOLLOWED Sales promotion is different promotion, Sales promotion refers to those marketing activities other than personal selling, advertisement and publicity, which stimulate consumer purchasing and dealer effectiveness, such as displays, shows and expositions, demonstrations and various non-recurrent selling efforts not in the ordinary routine. Its purpose is to increase the desire of salesman, distributors and dealers to sell a certain brand and to make consumers more eager to buy that brand. This includes sales activities which supplement both personal selling and advertising. Sales promotion is only a part of promotion. Promotion includes sales promotion, advertising, personal selling etc. Promotion helps to make all
other marketing activities more effective and efficient, but sales promotion helps only to sales activity. Sales promotion may be done with the help of tools like displays, exhibitions, free sample coupons, premium etc. Sales promotion acts as a link between advertisement and personal selling. Sales promotion campaigns taken up by the company for the XtraPower fleet cards ➢ Joint venture with Mahaventures Fleet Management Solution which is fast growing venture backed marketing & service providing company, engaged in providing Fleet Management Solutions. ➢ The drivers are often given free gifts to enhance their retention with the company
➢ Some offers are made available for certain period of time. For e.g. :
double the reward points gained on the purchase of a particular amount of fuel ➢ Co-branding with Citibank credit card
Citibank shares 0.075% of all valid charges on co branded cards. 40% of initial fees and 20% of renewal fees are also shared with IOCL when sourced through IOCL dealers. – Gold and silver.
On IOC Citibank Credit cards: • • • • 2.5% fuel surcharge waiver Accelerated reward points for fuel purchases – 2.67 % for IOCL gold and 1.5% for IOCL silver Citibank charges IOCL 0.35 % of the fuel spend at IOCL ROs as a Branding and Marketing fees. Marketing expenses are shared between Citibank and IOC in the ratio 60-40 Cost of production of co branded cards, operation of the program and cost of reward points are borne by Citibank.
Citibank pays IOCL a minimum sum of Rs 5 lakh irrespective of the revenues earned through advertisements made on billing statements sent to co branded card members. In case revenue is higher than that, it is shared 50-50.
Citibank pays 40% of initial fee and 20% of renewal fee of those members sourced through IOC dealers. IOCL Citibank credit card is second only to ICICI – HPCL credit card that
has an estimated card base of 25 lakhs as on 04/07/2008. However the activation rates of HPCL – ICICI cards is estimated to be about 25-30% as compared to 70% for the IOC – Citibank cards
➢ The Super Value Credit Card is the first Titanium card from Standard
Chartered Bank with 5% Cash back on Petrol transactions, 5% Cash back on telephone bill payments and 1% Cash back on all other purchases. The Super Value Titanium Credit Card gives 5% Cash back on Fuel get great savings on fuel at ALL fuel pumps be it BPCL,HPCL, IOCL, RELIANCE Provision to improve branding and visibility: 1. 2. 3. 4. 5. 6. 7. • Provision of XtraPower Lollipop Signage Provision of XtraPower Hoardings at ROs Provision of Wall Paintings along the Highways Provision of Bus Panels Provision of Outdoor Hoardings in transport centers / along highways Transporters Meets Road Shows It is suggested that, wall paintings being the cheap media, at least 2 Lakh sqft of wall paintings per DO The banners and hoarding are made according to the region in which they are to be displayed. The hoardings in the north shows a man wearing a turban because the transports their associate with the person in the
hoarding. The hoarding in the south is shown wearing clothes that people wear in south India so that the target audience in the south can relate with the man in the poster. As a part of road shows following is done by the company –
On the previous day, a van clad with attractive brand-banners and with pre-recorded slogans made rounds in the city covering all the fuel outlets as well as trucking points and distributed handbills giving important features of XtraPower programme and an invitation to free health check up camp.
Public in the market used to gather near the vehicle to collect pamphlet and cards of car-in-a-tank offer. The largest trucking area has displayed the programme details on their notice board in the interest of truckers who park their vehicles
The transporters were informed about various benefits /facilities provided by Indian Oil at the retail outlets, more so for the transport customers.
They informed about various sales promotion schemes launched by IOCL for the benefits of the customers. Further, during the program, power point presentations are made on various benefits of XtraPower Fleet card scheme.
• • •
The Film on XP card program is also shown. All the customers are presented with a Gift Hamper. Free Eye check up and free diabetes check up camp for the Truck Drivers and transporters as a part of Fleet Card promotional activity in association with the doctors.
Sample size:- . • The news article appeared in the local News Paper. snacks /Tea/coffee are served to all people who participated in the program. M/s JK Tyre & SERVO SSA are put up for the benefit of the transporters. In the end. Market Research For Xtrapower Fleet Card Programme We conducted a market research for understanding the intricacies of the fleet card market in a systematic way. In the evening a small music program is organized.• • Stalls by M/s Birla Tyre. The type of research is exploratory and descriptive research.
Regular interactions with our guide Mr. . Sources of information:Facts in this research are obtained from two sources • Primary data: . Out of the 30 fleet owners in consideration 21 owned the fleet card while 9 were those who didn’t owe a fleet card.primary data was collected from the customers. The sample size consists of 30 fleet owners in and around Mumbai.We took a sample of 30 transporters both owners and non owners to understand the need of the customers as well as the target audience in general. Ramnani helped us obtain the primary information • Secondary data:-secondary data was obtained from magazines. Open ended questions were only for asking suggestions as far as the fleet card is concerned. Ashok. We also found vital information on the Internet. The questions and the analysis of the same are as follows: 1. Questionnaire design:We designed close ended short questionnaire which was filled by the fleet owners through one to one interactions. Do you owe a fleet card? The sample space consist of fleet owners specifically those fleet owners who have the XtraPower fleet card. Sample frame:The sampling frame consists of transporters of Mumbai division. These questions helped us to know the customer preferences. reports and books which we went through at the IOCL’s library.
. The point’s redemption is not very lucrative. The drivers find it difficult to use the card. The pump attendants in their area of work do not know how to use the card. While the other 12 members of the sample preferred to pay by cash or with credit card. If internet is unavailable it is difficult to use the site for the transactions.2. We asked these non users the reason why they choose cash or credit card over fleet card. What is the usual mode of payment? Of these 21 who owned the fleet card 18 of them used it as the usual mode of payment. The reasons given were• • • • • Pumps not equipped with the machinery required to read the card.
2.1. . Do you use the card frequently? 3. From where did you come to know about the fleet card programme? Majority of them said that the awareness about the card is due to the IOCL retail outlets. Some of them also said that they got to know about the card and its benefits through a colleague. Did your driver have a problem using fleet card? 30 % fleet card owners said it is difficult to make the drivers use these cards the technology makes them apprehensive.
7. Do you redeem the points regularly? . 18 people use the easy fuel card website and 12 people do not use it. Do you use the internet site for your loyalty card transactions? Out of 30.4. What improvement do you want in the fleet card loyalty programme? The above graph indicates that the customers are expecting better services and better offers from the company as far as the fleet card is concerned 6. When we asked them if they face any problem with the site they said when the server is slow the site doesn’t not upload easily. The graph shows what % of people preferred which media is the best source. Rank according to order of preference the following media. Here people were asked to rank the media source according to their order of preference. 27% people think that TV is the best media to be targeted next to which 23 % people prefer radio 5.
They even suggested that lubricants should also be included as a gifting option. While 4 said that they like both fuel as well as gifts. 8. Thus people prefer cashless transactions and vehicle tracing property over fuel surcharge and points redemption. 11 people are of the opinion that cashless transaction is the best characteristic for the easy fuel card. Those people who said they do not redeem the points regularly is because their usage doesn’t allow them to gain enough points so that they can redeem regularly. but these characteristics do come in handy for the promotions of the card . What is the preferred reward in exchange of xtrapoints? 16 on 30 people prefer gifts as the point’s redemption. 9. What is your key requirement from the loyalty programme? Out of 30. What people suggested here is that they should have a option while redeeming the points whether they want to take a gift home or do they prefer extra fuel instead. While 10 on 30 say they prefer fuel as a better option.Out of the 21 people who owe the card 16 people said that they redeem the points regularly this is because they lie in the large customer bracket. Whereas 9 said that the vehicle tracing property is the key characteristic.
Conclusion:From the above research we conclude that majority of the customers were aware about the programme through the IOCL retail outlets. Some of the active card users complained that the fleet card transaction site did not work well under weak internet services. radio etc. IOCL should consider explaining to these drivers the benefits that accompany these cards such as the insurance policy associated with it. Also we should consider constructing a website which is friendly over weaker net connections. Though the programme is so beneficial the drivers are still apprehensive about using the technology. . It can be sorted out by making a conduit tool bar available for use. are not targeted enough so that. A conduit toolbar is a 1 time download and it gives easy access to the website. the ease of cashless transactions. It takes a lot of time to upload. Most of the transporters said that they were happy with the fleet card as far as the utility is concerned but at the same time they expect better services to them as well as more attractive point’s redemption system especially for the small transporters. and security in use. This shows that other media such as the television.
Advantages and disadvantages Advantages to newspaper advertising include the following • Inexpensive to produce: A little research and know-how are often all that's needed to create a targeted.all the promotional campaigns must be reported into the print media so that it would help in creating and maintaining awareness. medium weight. heavy weight commercial vehicle Corporate who use diesel for running the generators are given a variant of the fleet cards known as corporate cards. successful ad . Schools offering pickup and drop services for the students could be targeted ➢ Medium Print Media NEWSPAPER.BRANDING CAPSULE FOR XTRAPOWER FLEET CARD ➢ Target customers Fleet owners of light weight.
If you have a regular ad in your local paper and want to change it to reflect a seasonal sale. This is especially true nowadays when more and more people are eschewing print publications for online electronic versions.where you should have hi-resolution images -. In such instances. Ads also run horizontally or vertically. the goal of magazine ads is usually more about enhancing and sustaining brand image. • Poor printed image quality. Some standard sizes include quarterpage.or play up discounted pricing. Where the goal of newspaper advertising is to communicate a specific offer. Oftentimes newspapers won't guarantee premium placement on any given page. This can be a problem if you sell high-end clothing or your services as a portrait artist. The advertisements can be strategically placed in the magazine issues which have articles related to petrol/diesel price hikes. • Different rates and sizes. the more it will cost. Advantages and disadvantages . a new coupon. you can usually do so rather easily. try to drive readers to your Web site -. • No control over ad placement. half-page and full-page. Disadvantages to newspaper advertising include the following: • Limited readership. MAGZINES printing small self explanatory advertisements in the business magazines would be very effective in attracting the corporate branches who procure diesel from the retail outlets to fuel their generators. Look at the various sizes of ads in the newspapers you are considering running ads in. Determine which size might work for your message. The bigger the ad. or a new product.• Easy to switch out. Newspapers normally have several standard sizes. That can be a problem if your competitor advertises in the same space.
Magazine ads allow you to better reach your target audience. Advantages • • Exposure to the target customer Large space available gives creative freedom . Magazine advertising is usually pricier than newspaper advertising. commercial vehicle dealer would help generate the new consumer base. • Tricky to schedule. Magazine printing methods allow for higher resolution images and better color options. Many magazines come out just once a month. Whenever any new person about to start their own fleet business comes to look for the vehicles at the dealer will see the hoarding and will enquire about the card on the toll free no. and to meet their deadlines it's often necessary to have ads completed six months before they'll actually appear.Advantages to magazine advertising include the following: • Access to a specific customer base. so your ad will be relevant for a longer period of time. Readers don't discard magazines as quickly as they do newspapers. Just the fact that you are advertising in a magazine gives your company a certain professional cachet. While anyone might subscribe to a local newspaper. • Help brand your business. only car enthusiasts subscribe to Car and Driver. HOARDINGS of varied sizes explaining the gist of the card with the toll free no for further enquiry details to be strategically put up at places near the transports hubs. • More bang for your buck. Disadvantages to magazine advertising include the following: • Ads can be expensive. or even every three months. which allow you to build your brand image in a positive way.
which can be particularly effective for small businesses that rely on repeat customers . better for brand awareness than direct call to action Television advertisement: The product advertisements on the television can have subscripts running at the bottom to tell people to enroll with the card programme. and it does so during a short period of time. In addition the loyalty cards and the reward system can be aired not on prime time but at times when out target customer and the consumer is expected to watch television may be during lunch hours or dinner times. and motion. Advantages and disadvantages Advantages • • • • TV reaches a much larger audience than local newspapers and radio stations. product. It allows you to convey your message with sight. so you can make your message directional Disadvantages • • • • It can be quite expensive Message might not be properly understood by the target consumers brief message to permit reading from passing vehicles rely on the memory of consumer for locations and phone numbers. sound. It gives you an opportunity to be creative and attach a personality to your business.• • Reach a large segment of audience Geographically pinpointed. or service instant credibility. It reaches viewers when they're the most attentive. which can give your business. You know in advance exactly where your sign will sit.
you may have to advertise simultaneously on several stations to reach your target audience • • Listeners cannot go back to your ads to go over important points Ads are an interruption in the entertainment. Stations can be categorically selected to play the ad jingles. a radio ad may require multiple exposure to break through the listener's "tune-out" factor and ensure message retention . The ad needs to be repeated again and again so that the listener takes notice of the ad. and even in the car. Because of this. at home. changing will require more expenses Radio advertising: this is the most preferred medium if the target is the drivers as while on the go they often listen to the radio. Advantages • Radio is a universal medium enjoyed by people at one time or another during the day.Disadvantages • • • TV Ad is very expensive to make Have to screen the ads repetitively so that it reaches the target customers Changes cannot be made easily. at work. • • • • Gives your business personality through the creation of campaigns using sounds and voices Creative help is often available Rates can generally be negotiated During the past ten years. radio rates have seen less inflation than those for other media Disadvantages • Because radio listeners are spread over many stations.
Resolve their doubts if any. But for the loyalty programmes it is important that the customers and the potential customers know about the programmes. . Direct marketing will help the company to make a 1 to 1 contact with the customers and to explain to them the benefits of the loyalty programme.• Radio is a background medium.the act of opening the mail and reading it -. thus helping increase positive response. Effectiveness of response to the campaign can be easily measured. • Your ad campaign is hidden from your competitors until it's too late for them to react • Active involvement . Advantages • Your advertising message is targeted to those most likely to buy your product or service. And sign them in for the programme directly. which means that your ad has to work hard to get their attention Indian Oil is a brand name in itself so it does not need to do large amounts of advertising about its products.can be elicited from the target market. • • • Your message can be as long as is necessary to fully tell your story. Most listeners are doing something else while listening. and throw them immediately without even opening the mail. Disadvantages • Some people do not like receiving offers in their mail. You have total control over the presentation of your advertising message. • Marketing message can be personalized.
set-up cost is minimal Increased efficiency since you can reach many more prospects by phone than you can with in-person sales calls. You can get a lot of information across if your script is properly structured. quality of your list and size of the campaign. as well as to introduce new products to them • Makes it easy to expand sales territory as the phone allows you to call local. It's cost-effective compared to direct sales. or telemarketing. Results are highly measurable. national and even global prospects. Telemarketing: Telephone sales. • • If outsourcing. .copywriter. • Great tool to improve relationship and maintain contact with existing customers. depending on your target market. printers.• Resources need to be allocated in the maintenance of lists. • Can be expensive. etc. is an effective system for introducing a company to a prospect and setting up appointments. Advantages • Provides a venue where you can easily interact with the prospect. photographers. answering any questions or concerns they may have about the fleet card. artists. as the success of this kind of promotional campaign depends on the quality of your mailing list. • • • • It's easy to prospect and find the right person to talk to. • • Long lead times are required for creative printing and mailing Producing direct mail materials entail the expense of using various professionals .
mugs. Advantages • • Flexibility of use High selectivity factor as these items can be distributed only to the target market. target audience may decide to keep the items. Specialty Advertising: This kind of advertising entails the use of imprinted. hence promoting long retention and constant exposure . or decorative products called advertising specialties. • If done well. such as key chains. computer mouse. These articles are distributed for free. • More people are using technology to screen out unwanted callers. recipients need not purchase or make a contribution to receive these items. particularly if the telemarketing is outsourced to an outside firm • It is most appropriate for high-ticket retail items or professional services. particularly telemarketers • Government is implementing tougher measures to curb unscrupulous telemarketers • • Lots of businesses use telemarketing.Disadvantages • An increasing number of people have become averse to telemarketing. useful. etc. there is lesser control in the process given that the people doing the calls are not your employees • May need to hire a professional to prepare a well-crafted and effective script • It can be extremely expensive. If hiring an outside firm to do telemarketing.
it is very difficult to train all the attendants at the RO’s so instead the company can plant field officers at the outlets whose . This could encourage the potential customers to enroll for the programme. It is difficult to find items that are appropriate for certain businesses Longer lead time in developing the message and promotional product Possibility of saturation in some items and audiences Wrong choice of product or poor creative may cheapen the image of advertiser OTHER BRANDING TECHNIQUES: Promotional campaigns can be planned talking into account all the card users to reward them for being associated with the card. Disadvantages • • • • • • Targeting your market is difficult.• Availability of wide range of inexpensive items that can be purchased at a low price. This can be an inappropriate medium for some businesses.g. The entire campaign was planned in five distinct phases: 1) Branding and communication 2) Back-end operations 3) Lucky draw participation 4) Selection process 5) Distribution of prizes Field officers. distributed during trade shows). They can generate goodwill in receiver The items can be used to supplement other promotional efforts and media (e. • • • They can create instant awareness.
Interesting games are conducted at these road shows. . The points that the customer gets in the initial 3 months should double than what they normally receive so that they can accumulate more points in short period and redeem the same for availing the rewards.Occasionally the retail outlets where maximum cards are swiped could be given the best dealer award. Medical camps for the drivers and the cleaners are set up these include eye checkups and diabetes checkups.responsibility is to cater the existing customers and also to acquire new customers.Road shows are done to take all the campaigns directly to the end users. This will attract the potential consumers. Reward programme. Here the truckers are our end users. This is because at these road shows we will be in constant touch with the end customer and with proper assessment we can know what all are the expectations of the customers from the loyalty programmes. These shows are conducted to basically make them aware of the fleet card loyalty programme. Road shows. These RO’s can be used as hubs to understand the needs of the customers the owner as well as the driver and the cleaner and the promotional campaigns that would be designed would be designed with their needs in mind. Road shows can be very fruitful if done in a proper planned manner and done regularly.The company should associate itself with some leading brands like cinema halls and beverages brand so try and bring to their clients the best of gifts when the redeem their points. This way dealer would also be motivated in promoting the card to the customers. Retail outlets.
Membership club. Website owners can show their customers how much they understand and care about their needs. blogs. Conduit toolbars help you build up a solid relationship – one that transforms "satisfied" customers into the kind of customers you can count on.All the card holders can be enrolled into a club membership and regular convene can be conducted for all the members. Sitting in the top of the browser window whenever subscribers are online. and to present continuously updated "perks" that make them feel valued. Large customers can be asked to write testimony for the card and the same can be put on the internet site to add on to the credibility of the company. or to offer original or syndicated digital content in the form of news feeds. Blog and interact with your visitors • Purchasing Advertising • Participating in Forums • Search Engine Short term marketing strategies include: Long term marketing strategies are those that bring you a steady stream of targeted traffic over time. by using the toolbar to announce new products and deals. video channels and radio stations. Facilitate and run contests and giveaways via your web site. no matter what new competition comes along. These strategies will continue to produce . Conduit toolbars allow businesses to remain in constant. and offering it as a free download. Interactive sessions can be conducted in this and regular feeds where the customer can be asked about their experience about the card. positive contact with their clientele. • • • Write and publish online press releases. Internet Website owners can significantly increase the loyalty of their customers and site visitors by publishing a Conduit toolbar.
Other companies offering similar loyalty programmes have very lucrative rewards benefits for their customer. you will drive a steady stream of targeted traffic to your web site. Survey your customers If you want to know how to grow your base of loyal customers. If you address and resolve conflicts promptly. Ask for email addresses of those who visit your site. they're business opportunities. you can continually market product information to them. Tie up: The Company should consider tie up with various other brands for co-branding the card. Respond to complaints Customer complaints aren't business failures. Always include a link with the option to unsubscribe. the appreciative customer is in many cases more likely to be loyal than a customer who never had a complaint. Long term marketing strategies include: • Opt-in Lists • Blogging • Social Networking Sites • Social Bookmarking Sites • Giving Away Freebies • Article Marketing By creating and implementing a balanced marketing strategy. Increase communications . using both short-term and long-term strategies. This way. ask your current ones.results even years down the road. instead.
One-to-One Marketing It is an approach that concentrates on providing services or products to one customer at a time by identifying and then meeting their individual needs. special discounts and exclusive sales. As such it differentiates customers rather than just products. With customer's names in the database of the loyalty program. Make sure your customer loyalty programs are easily accessible to customers Set up displays showcasing your loyalty rewards programs near your checkout counter. . Also have staff available to help customers with the sign up process and to explain the benefits. It then aims to repeat this many times with each customer. it's a simple matter to personalize the newsletter to each customer. as well as throughout the store. Send regular mailings and e-mails announcing new merchandise.Constant communication with customers is necessary in building loyal relationships. such that powerful lifelong relationships are forged. be sure to emphasize the importance of using your customer loyalty program. . Making the most of customer loyalty programs means tracking customer information so you can improve your business relationship and continue to build customer loyalty it doesn't mean sharing this information with other businesses or using the information in an unethical manner Create a newsletter designed for your customers. As you write the newsletter. Electronically track data from your customer base in customer loyalty programs Point-of-sale (POS) equipment can quickly and efficiently help you gather this data.
• • The company should consider tie-ups with leading brands like Pepsi. They can be potential target customers for the . In exchange for the points redeemed the fleet owners can also be offered discount coupons for the theme parks or water parks like the water kingdom. blogs or another emerging form of communication. Whether it's through telephone service. RECOMMENDATIONS For the XtraPower fleet cards. HLL. So that the consumer base can be increased. • Hoardings of the fleet cards can be put up at places close to the retail outlets instead of just the retail outlets. essel world. newsletters. Such road shows must be conducted every quarter at least so that it will help the company to be in constant touch with the clients and construct the offering accordingly. • IOCL should target corporate giants like Pepsi. • The road shows have shown to be very effective in many cases but their remains some inconsistency in its implementations. café coffee day to add more value to the customers points redeemed. also known as a call center. Your business can set up many ways to communicate with your customers. Contact center or call center Often the customer's connection to your business is through your contact center. the contact center should strive to maintain a positive image of the company. DHL etc who use flee in their business. email.
Their cell sites also need diesel which they can procure from a near retail outlet and fleet card programme can be beneficial o these companies. The product advertisements on the television can have subscripts running at the bottom to tell people to enroll with the card programme. These can be targeted for the corporate version of the fleet card. It’s still an untapped area where the company has not yet invested much. Direct B2B marketing of these programmes should be done to attract a customer base which will remain loyal to the company. • The retail outlets can be utilized as hubs to trigger sales. • A record of the card swipes per retail outlet shall be kept and “Best Dealer” award can be granted for the maximum no of transactions. In addition the loyalty cards and the reward system can be aired not on prime time but at times when our target customer and the consumer is expected to watch television may be during lunch hours or dinner times. The customers should have a option as to what they want to redeem their points as gift of as fuel this option should be available for the people. • Many new cellular service providers like MTS and UNINOR are coming up in the market.fleet card. • The television and radio advertising should be considered if sales of the card have to be increased. • Distinguish between small and big operators and design a gifting programme accordingly. This will motivate the dealers to swipe the card. There could be field officers who target the new customers keep contact with the old ones and sort out their problems in person this will in turn increase the credibility of the programme. .
Try to address the problems of inactive customers. It will increase the overall impact of the fleet card programme. • To make sure that the machines at all the outlets are working in their best condition a check by the company officials is in order. BRANDING CAPSULE FOR XTRAPOWER EASY FUEL CARD ➢ Target customer • • • • • Corporate bodies Business enterprise who wants to gift their stakeholders Suppliers Dealers General consumers ➢ Medium .• Keep a track of active and inactive users of the card. This will help in building a brand as not only the one which is market leader in this category of loyalty programme but also one having maximum active customers. This will help in maintaining the machines and avoid its break down due to wear and tear.
retailer. Smaller advertisers don’t . section and day are essential .The medium used depends on the target customers that we decide t cater. suppliers. Print medium Newspaper: The daily national newspapers are also the most read papers of the corporate hence a print advertisement in the same will be fruitful. Cons: You’re likely to be upstaged by bigger advertisers whose ad can be placed right next to yours. Production costs can be low but you need the smarts to design an ad that grabs and holds attention. Cons: Most magazines are issued monthly so it can involve a long lead in time to getting into print and getting responses. Magazines: The corporate read a variety of business magazines. Pros: Magazines are highly targeted so it’s possible to purchase ad space in a magazine that will be read by your target audience no matter how specialized it may be. The printed ads should not be very flashy and should have a color combination which would look classy. Careful selection of the newspaper. in the right section an ad can work very well. Pros: You can look at a newspaper’s audience figures and demographics to choose the right paper and the right feature or section for your product.even the same newspaper can have different readerships on different days. These should be targeted for publicizing the fuel card. Regular exposure in these magazines will attract the customers. The easy fuel card is a extension of the XtraPower fleet card and its caters to the corporate bodies who are interested to give out free gifts to all their stake holders like their customers.
and even in the car.get the best positioning in magazines and are usually crowded together in the back. You know in advance exactly where your sign will sit. They are of varied sizes explaining the gist of the card with the toll free no for further enquiry Pros • • • • Exposure to the target customer Large space available gives creative freedom Reach a large segment of audience Geographically pinpointed. Hoardings: This will serve as a medium to attract the general consumers for subscribing for the loyalty programmes. Pros • Radio advertising costs less than television advertising and may reach a broader audience. And be careful to verify the stated circulation figure of the magazine. so you can make your message directional Cons • • • • It can be quite expensive Message might not be properly understood by the target consumers Brief message to permit reading from passing vehicles Rely on the memory of consumer for locations and phone numbers. better for brand awareness than direct call to action Radio: Radio is a universal medium enjoyed by people at one time or another during the day. at home. . at work.
Tips: Get to know the journalists who write about your area. This means your market is likely to hear the ad multiple times as opposed to a print ad which they may only see one time. Cons: Unpredictable value. mail pieces. perhaps resulting in brief quotes and interviews.articles can be used as reprints. Turn press coverage into handouts and mail pieces. It can require time and commitment. but if you want prime-time slots early and late in the day the costs can be very high. Examples: writing feature articles and columns for trade and local newspapers. Cons • Because radio ads are so short. Can be done as individual actions Has reusable value . Most do this by taking advantage of popular radio personalities or by including a catchy and creative jingle. etc. and being quoted or interviewed. someone who is listening to your ad while driving may not catch all of the pertinent contact information and may not necessarily hear the ad again. Pros: Can be very inexpensive. • The cost of radio advertising may be inexpensive compared to other advertising methods. • Radio advertisements are effective because they’re run several times over the course of a day. and handouts and in newsletters. week. • Radio advertising is only effective if you know large parts of your target audience regularly listen to the radio Public relations: Getting someone to pass along your message without paying them. may even generate money. . come up with helpful or controversial topics. Kick off your PR campaign with letters to the editor or phone calls. issuing press releases. No guarantee that what you do will be used by publications.• Radio advertisements are informal and tell a story that engages and captivates the listener.
mobiles are much more a popular concept than computers. It's true that the concept of online marketing is on rise. and interactivity of mobile ads encourage response by consumers on the go. enabling locationspecific and behavioral targeting for local businesses. making it easy for marketers to develop a relationship with customers through this medium. • New tool for brands and advertisers to reach new customers and target specific audiences. Those who’ve been advertising longer than you will be at the front of the section. These devices offer many facilities than letting people make calls. immediacy. But it is also true that mobile marketing via text Pros: • • High penetration of devices with twice as many cell phones as PCs. Cons: Most Yellow Pages advertising is expensive. and have I chosen the right channel for reaching my target audience Mobile marketing Mobile phones are a great device for communication. It has become very popular throughout the world. . • Personalization. keep two questions in mind: is my ad going to capture interest. You get what you pay for here. According to the business experts. There are very few bargains in advertising spending. • A cell phone is a very personal device that people take with them wherever they go. Mobile phones can receive input anywhere-anytime. Yellow Pages: this is a medium that will be referred by the corporate team who are incharge Pros: Your advertisement lasts for an entire year and is placed in such a way that your prospects can find you at the time they want to buy. But to maximize the return on what you are paying for.
Examples: phone calls.e. Direct marketing Targeting prospects personally. . different types of functionality and different preloaded apps (i. • Messages sent to a mobile phone are more likely to be read than email sent to a PC. Often generates best leads relative to cost and effort. Mobile marketing is fragmented and complex because of many different handsets and carriers. • Current carrier-imposed “walled garden” approach prevents unfettered mobile web access. • Mobile marketing campaigns are highly targeted and are opt-in. requires a lot of time and effort.• Smartphones and iPhone to enhance mobile surfing. Pros: Can reach prospects in most focused form. you can use the information for loyalty marketing and customer retention. • Establishment of reliable measurement and metrics for advertisers to measure mobile ad effectiveness is needed. Cons: Can be expensive. Cons: General intolerance of advertising messages on a personal device. Google Maps on iPhone). Once customers opt in to receive an ad. making them more effective than other forms of advertising. direct mail. Not right for some people or businesses. • Mobile marketing can help build a customer database. • Adaptation of content and messages to the mobile web results in poor user experience. promoting mobile marketing success. which can get caught in the spam filter. . and door-to-door canvassing. • • Advertisers are wary of consumer privacy issues.
look for things that don't readily go out of date . useful items . Tips: Prepare. reprints. participating in. Examples: brochures. Pros: Can help attract attention. gives you an easy way to leave your name and address with prospects. key rings. coupons. pamphlets. Collateral: Materials you print up and hand out. until you get the hang of it.Tips: Learn to qualify prospects quickly. consider using a contact-management program.pens. Meet as many people as possible to cultivate contacts. conferences. or exhibiting. Pick a few shows in your field to attend regularly. and business cards. Cons: May not be a good way to spend money. letters. Often highly affordable Cons: Very unpredictable results. surveys. Keep good records. coffee mugs. Other various advertising specialties: Examples: bumper stickers. As with collateral. skywriting and blimps. Can take time. especially if the pieces can serve many purposes and you create them using desktop publishing. Look for pieces that can be their own mailer. inexpensive. contests. with costly travel expenses. samples. not appropriate for all businesses. Events: Attending. can be time-consuming and draining. Follow up promptly with mailings. Pros: Very good for exposure. Pros: Can be inexpensive. and letter openers. coffee cups. and seminars. Examples: trade shows. particularly in response to specific requests. and joint marketing efforts. Cons: Can be expensive putting together a desktop-publishing system. and other gewgaws. fliers. Can take up valuable storage room Tips: Look for small. Tips: Think carefully before over committing to an expensive item that will go out of date. inventory needs to be managed carefully. newsletters. Needs periodic updating. calendars.
Don't badmouth competition. Tips: Set a good example. and satisfied customers. from friends. Word of mouth is inexpensive. yet it's often the most powerful marketing tool Pros: Inexpensive. Consider some form of thanks to customers who refer new ones . Talk: One other vehicle is word of mouth. 15 % of the ads should be targeted through news papers Television: Ads given on the regional TV channels would be an effective way of communicating information about the card to the fleet owners.even if it's just a signed note. Since in a television advertisement there are audio-visuals used it would add to the overall effect of advertising . often effective. Cons: Can spread negative opinions even faster than positive ones. contacts. but pass on opinions of other (noncompeting) businesses you like. Composition Of Media Strategies For Different Customers FLEET OWNERS For fleet owners the following media would be used News papers are read by all the fleet owners so they would contribute substantially in promoting the fleet card the ad should be printed properly and should be easy to understand.
And it’s the only medium which people use while they are working. Telemarketing: Telemarketing can be used a little because its move apparent disadvantage is that people do not like to get disturbed during their work hrs. This feature can be an advantage or a disadvantage. 5% of the budget should be spent on buying specialty items like key chains or some memento which has the Indian Oil logo and the loyalty card picture on it. But advantage is that we could be in constant touch with the consumer.Since TV is an expensive way of promoting about 20 % of the total advertising budget should be used to create an ad Radio: this is one of the mediums which if exploited properly will give the best of results since it is less expensive than a television as well as newspaper. It cannot be ignored completely so a 10% of total budget could be used to create the conduit toolbar so that the company can maintain a constant positive contact with the customers. This will allow greater exposure of the fleet card. The disadvantage of the same could be reduced if we play the same set of ad more no of times. and telemarketing does that often. They could be distributed during the road shows conducted. Disadvantage because we would not get full attention of the consumer. . Radio should be given 20 % of the total budget. Specialty advertising: this could be a very effective method of reaching to the customers. Only a part say 10 % should be utilized for telemarketing. They create awareness and goodwill for the company. Internet: it will serve the purpose only if the fleet owners use the internet frequently.
Hence maximum budgetary expenses should be allocated to this medium. Such questions could be best answered by road shows. Media owners Composition for fleet % Of Budget News papers Television Radio Telemarketing Internet Specialty advertising Road shows 15 20 20 10 10 5 20 DRIVERS For the drivers the following media strategies should be used. To know what the customer expects are the expectations fulfilled. Hence they become an important medium for the company. .Road shows: This is the only way by which the company could maintain direct contact with the customer. Almost 20-25% of the total budget should be focused n creating a good jingle and airing it on all the variety of channels targeting the drivers. Radio: most of the drivers listen to radio while they are on the go. Since this would be a seasonal activity 20 % of the budget could be focused for the same.
Word of mouth: it could be a great way of promoting the loyalty programmes. The message should be short as well as self explanatory.Hoarding: The message displayed has to be easy to read while 1 is driving. Hoardings can be categorically placed near the eating hubs of these drivers so that they would get enough time for the same. Instead of having specific field officers working for the company the company could do sum networking with the help of the drivers and the fleet owners. and diabetes camps. All these activities will require a lot of budget to be allocated say about 25% of the budget should go in all these activities. 20 % of the budget would be allocated to carry to the campaign and to gift the participants with specialty items Road shows: they will create goodwill for the company. This medium would reach the drivers very effectively hence about 15-20% of the total budget should be given for the same. Arranging eye camps. Local promotional campaigns: Promotional campaigns should be carried out at the local levels and specialty advertising should be employed for the same by which people will be constantly reminded of the programmes. Only those who become the customers are eligible for getting the freebees. Media composition for drivers % of Budget . or medical checkups for the driver and the cleaner will surely create a lot of goodwill for the company. Whereby they get sum points or some other freebees for the references they make.
With the prices of the petro products .Radio Hoardings Promotional campaigns Road shows Word of mouth 20-25 15-20 20 25 10 For the XtraPower easy fuel card CORPORATES Media strategy for corporate Newspaper and magazines: While targeting the corporate we are targeting the HR personnel of the companies so newspaper advertising is of utmost importance. Especially in the editions which have articles relating to the petro sector. Business magazines could be targeted for connecting with the corporate HR personnel.
10% of the advertising budget should be focused on mobile marketing. 15 % of the expenses should be focused on television advertisements. Yellow pages: Advertisement in the yellow pages lasts for an entire year and is placed in such a way that your prospects can find you at the time they want to buy. The sales personnel should be having . It could be again an expensive medium but it gives exposure like no other medium hence should be targeted. Television: Though an expensive way of advertising this is a very effective medium. About 15 % of the total budgetary expenses will be directed to newspaper and magazines. Mobile marketing: Mobile marketing campaigns are highly targeted and are opt-in. It can convey the message with ease as it uses both audio and visuals. making them more effective than other forms of advertising.rising every given month the loyalty cards do give some relief to the consumers. This important thing to be kept in mind is it is very important to keep giving the ads on a regular basis and the ad should be self explanatory. Messages sent to a mobile phone are more likely to be read than email sent to a PC. which can get caught in the spam filter. Direct marketing: It is the most focused form of advertising and if done effectively has an impact on sales. Not only should the tradional yellow pages the local variants of the same also be targeted 10 % of the budget should be directed for all these purposes.
Also sponsoring events will give exposure to the loyalty program like no other medium. reprints. and business cards. and other gewgaws. calendars. surveys.thorough knowledge about the card and should be able to address the queries of the potential consumers. Advertising specialties: Bumper stickers.20% of the expenses should be focused on doing events and related activities Collateral: Materials you print up and hand out. coupons. or exhibiting. coffee mugs. contests. Events: Attending. Examples: brochures. 5% of the budgetary expenses should be allocated for building such inventories and it is important to keep a track of the same. 10 % of the budget would be directed for the same. skywriting and blimps. fliers. conferences. and seminars. Examples: trade shows. 15% expenses should be directed towards direct marketing. newsletters. key rings. Media for corporate customers Newspaper & magazines Television Yellow pages Mobile marketing % of budget allotted 15% 15% 10% 10% . These would include the training and salaries of the concerned sales personnel. pamphlets. participating in. and joint marketing efforts will come under specialty advertising.
at work. MARKET RESEARCH FOR EASY FUEL CARD PROGRAMME We conducted a market research for determining the potential target customer for the XtraPower easy fuel card which is currently being used as a corporate gifting option only. Radio: Radio is a universal medium enjoyed by people at one time or another during the day. 15% of the budget would be required for the same. So no separate allocation of budget would be required. and even in the car. Apart from the corporate media strategies the consumer would require the following: Hoarding: This will act as a major factor for the consumers to know about the card. . 15 % of the budget should be targeted for the same. Collateral and specialty advertising is also the same as that of corporate media strategies. at home.Direct marketing Events Collateral Specialty advertising 15% 20% 5% 10% Consumers The consumer’s media strategies like the corporate media strategies would include the news paper and magazines ads yellow pages and television.
The questions and the analysis of the same are as follows:- . Sample size:We took a sample of 60 people from varying fields and varying age groups. Questionnaire design:We designed close ended short questionnaire which was filled by the sampled audience through one to one interactions. Regular interactions with our guide Mr. reports and books which we went through at the IOCL’s library. Open ended questions were only for asking suggestions as far as the fleet card is concerned. We also found vital information on the Internet.In this research we try to segment the general consumer base into a potential consumer base which needs to be targeted in particular. Sample frame:The sampling frame consists of Mumbai and suburbs. Ashok. Sources of information:Facts in this research are obtained from two sources • Primary data: . Ramnani helped us obtain the primary information • Secondary data:-secondary data was obtained from magazines.primary data was collected from the customers. These questions helped us to know the customer preferences.
How loyal are you in your fuel buying behavior? 6.1. WHICH AGE GROUP DO YOU LIE IN? 3. WHICH VEHICLE DOES YOUR FAMILY OWE? 4. Would you buy a smart card based fuel card? . WHAT AMOUNT OF FUEL DO YOU BUY EVERY MONTH? 5. DO YOU KNOW ABOUT THE LOYALTY PROGRAMMES? 2. DO YOU OWE ANY PETROL OR DIESEL RELATED CREDIT CARD? 7.
8. Total 38 out of 22 people seemed interested in buying the smart card programme. And 10 said they may buy the card. . What is the most beneficial property of easy fuel card? ANALYSIS Awareness about loyalty programmes and buying decision The blue color in the above graph indicates those subjects who were aware about the loyalty programmes carried out by companies while the red color indicated those who lack the awareness.e. 73% people were aware about the loyalty programmes In these 44 people 28 said they would be interested in buying the easy fuel card which is a smart card based prepaid fuel card. Out of 60 people who were sampled 44 people knew about the loyalty programmes i.
AGE VS BUYING DECISION In this graph the blue bars indicate a positive response for buying the XtraPower fuel card. red indicates a negative response meaning people who are not interested in buying the fuel card while green indicated those respondents who said may be for buying the easy fuel card. The reason was attributed to a credit based programme which they are very much accustomed to. The age group 40 and above majority of the people have said no to the smart card based programme. The above graph indicates that in the age group 18-25 out of the 10 people sampled none said NO. This indicates that this age group is the target audience for the easy fuel card. 6 of them said YES and 4 of them said MAY BE. In the age group 30-40 we see a 2nd peak which indicates people in this segment will also be interested to buy the easy fuel card.The graph indicates that subjects who were aware about loyalty programmes are more interested in buying the XtraPower easy fuel card. DOES VEHICLE OWNED HAVE ANY INFLUENCE ON THE BUYING DECISION? .
Out of 24 respondents who owned only a 2 wheeler 16 i. If the easy fuel card programme actually makes billing at the retail outlet easy it would be a major success in both the category of customers. Those who said may be in all the 3 categories complained that the credit card transactions take a lot of time as the pump attendants have to go to their cabin for printing a bill. As against people who buy more than 100 lts of petrol where majority are saying MAY BE and NO and a very few are saying YES to buying the easy fuel card. Again the subjects in the more than 100 lts category said they had a credit card which gave them good amount on savings while buying the fuel from the current petrol pump. While the rest 8 have said may be for buying the easy fuel card.e. No two wheeler owner has said NO to buy the card making them our target audience So with the right amount of publicity we can target the 2-wheeler audience to buy the smart card based programme In the 4 wheeler category again 50% have responded positively to the easy fuel card programme. almost 66% people have responded positively for buying a easy fuel card. DOES AMOUT OF FUEL BOUGHT HAS ANY EFFECT ON THE BUYING DECISION The graph indicates that people who buy 25-50 liters of petrol each have either said YES to buy an easy fuel card or said MAY BE to buy an easy fuel card. . While the rest 50% is divided into those who do not want to go for the programme and the ones who said may be for such a programme.
Whereas those who are loyal have majorly said may be for buying the easy fuel card.Thus the people who fill in their tanks with smaller amount of petrol are our primary target audience because these people do not go for the credit card programmes as they do not have the opportunity to save on their fuel expenses to a great extent as the refill their vehicles for less volume of fuel. The people who are not at all loyal towards buying fuel can be targeted by showing them the benefits of using the XtraPower easy fuel card. . This shows that our target customer group is the one who is not so strict in their fuel buying behavior. LOYAL CUSTOMERS VS CARD BUYING BEHAVIOUR All those who are somewhat loyal towards buying fuel have opted for the easy fuel card.
Here we try to find out if it will be viable when presented for the general public. . We conducted market research to find out if it will be accepted by the people In the general public who all will be our target audience that we need to focus on is what we try to find out. From the above graph it is clear that those people who do not owe a credit card opt for the easy fuel card over those who do owe such a card. DOES OWING A FUEL BASED CREDIT CARD ALTER THE BUYING DECISION? In the above graph red color indicates those people who do not owe a credit card whereas blue indicates those people who owe a credit card. Thus the target audience will be those who do not already owe a credit card based programme. CONCLUSION XtraPower easy fuel card is a loyalty programme which offers a fuel gifting option for the corporate.
We also found out that the 2-wheelers and consumers who use less amount of petrol every month should be targeted as audience for the easy fuel card because these people are usually not targeted by the credit card based loyalty programmes as they give very little points to be redeemed by these consumers. . Last but not the least are the consumers who are not so loyal in their fuel buying behavior these consumers can be targeted to be the customers of the easy fuel card programme by convincing them how beneficial this card is because of the cashless transactions that the card offers. From the answers that were given we try to evaluate how the target group composition would be that we need to focus on while launching the card for general use. This is because in this age group the target audience is more receptive to innovative ideas.To find out answers for the same we conducted a market research in which our sample size was of 60 individuals from varying fields and varying age groups. These are the consumers who have to save a lot of money as far as fuel expenses are concerned. We found out that for our target audience age is no bar but initially we could focus on the age group of 18-25. The consumers of age group above 50 would be interested in giving out this easy fuel card to their children so that they can curb on the expenses these kids do on their vehicles. We asked them a set of questions and also provided space for any suggestions that they would like to provide us. So instead these consumers can be targeted by the easy fuel card so that they so that it’s easy for their transactions. XtraPower easy fuel card will help them serve the purpose.
The consumers can be explained how they can limit their expenses on fuel by predefining their fuel budget for the month. This way they can save on the unnecessary expenses that are associated with the fuel purchase. .
Advertisement is the key for successful introduction of the programme. . 30 per card purchased. With such intense competition and also the fuel prices being market controlled it will be necessary for the even the market leaders to build on to the current customer base and not lose any of it to keep its market share intact. This restricts the consumer from buying the cards. So it must be implemented regularly on the grass root level so that it keeps bringing the customer base back to the company.XtraPower Easy Fuel Card • The fuel card charges a fee of Rs. In conclusion I would just like to say that the fleet card programme was implemented for retaining the current customer base and build on to the already existing loyalty among the customers. This is because once the customer is satisfied with the services offered by the card they will not mind paying the minimal amount. In order to attract more customers the company should consider waving off the registration charges or if that is not feasible then the company should consider waving off the charges in the 1st yr of purchase and any subsequent refills after the 1st yr will be accounted at a minimal amount. With the fuel prices on the rise and overall fuel prices to follow the market rate the company can have an assured customer base in the form of easy fuel card users. However if they are charged a fee right in the beginning then it will restrict their buying decisions • We need to focus on the media strategy for successful implementation of the card. This programme is one of a kind in this category so it would be well accepted by a major section of the target audience. Good amount of publicity and public relations should be carried out for the same.