Summer Internship Report

Indian Oil Corporation Limited

Akshat Dixit

University of Petroleum and Energy

Studies (27 May 2019 to 27 July 2019)

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 Acknowledgement
Any effort becomes successful when there is the effect of synergy, the concept that
two and two makes more than four. This report has also the effect of synergy, without
prejudice to my own contribution. I am appreciative to University of Petroleum &
Energy Studies, Dehradun and all those people who cooperate me to prepare this
internship report. It is my privilege that I had the opportunity to do internship in
Indian Oil Corporation Ltd Chandigarh.

During the period of my internship work, I had received generous help from many
quarters, which I like to put on record here with deep gratitude and great pleasure.

 Initially, I would like to honor Mr. Sachin Sharma (General Manager -

Retail Sales) for giving his precious time in between his busy schedules and
helped us in every facet of internship with his suggestions and feedbacks,
and thus getting most out of it.
 Mr. Mukesh Gupta who stands as a backbone in Summer Internship and
helped me to get through the field exposure through the additional project
and thus syncing it with the core project.
 Mr. Mohan Singh (Fleet Officer) who makes me understands the Business
Model of XtraPower and fortunately given me the time for the field visits
with him to get the practical knowledge of the business.
 Mr. Atul Rawat (University Faculty) without their backend suggestions
and guiding, it would be impossible to bring this report to light.

I would also like to express my gratitude towards all officers, managers, and
attendants of Indian Oil Corporation Ltd. for their excellent support, hospitality
and proper guidance in completing my internship research and formulating report.

Finally we hope that this project paper has been prepared for the fulfillment of the
course requirement. We would also like to thank our authority of UPES for preparing
this program to make us get insights of the industry.

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 Abstract
The main objective of this report is to imprint the knowledge and experiences gained
while pursuing the summer internship at Indian Oil Corporation Ltd in the form of
the report to the university and industry. Initially there are two projects for which we
have to perform our study, first is to face the customer grievances of XtraPower Fleet
Card Program of the organization for which the sample size created is around 50
comprises of both fleet owners and corporate customers.By gathering data from the
sample, the research is made on those insights of problems and thus stated.

Secondly the project assigned to us is the retention of existing customers at IOCL

COCO. For this I had understood IOCL at depth by which get to know about their
strategy of creating key accounts and thus made an implication as a management
graduate for further increase and improvement in loyalty of customers.

Keywords: XtraPower Fleet Card Program, Industrial and Corporate Customers,

Company Owned and Company Operated Outlets (COCO’s)

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 Table of Contents
Acknowledgement.............................................................................................. II
Abstract...............................................................................................................III
Table of Contents............................................................................................... IV

Chapter I................................................................................................................................... 1
Introduction..........................................................................................................................1
1.1 Background..................................................................................................................1
1.2 Market Share...............................................................................................................3
1.3 Pipelines......................................................................................................................5
1.4 Economic Performance...............................................................................................7
1.5 Marketing Strategies.................................................................................................11
Chapter II................................................................................................................................13
Literature Review...............................................................................................................13
2.1 Introduction...............................................................................................................13
2.2 XtraPower Fleet Program..........................................................................................14
2.2 Company Owned Company Operated Outlets..........................................................18
2.3 Cricket Car-Nival........................................................................................................18
Chapter III...............................................................................................................................20
Research Methodology and Hypothesis............................................................................20
3.1 Objective...................................................................................................................20
3.2 Research Methodology and Hyptothesis..................................................................20
Chapter IV...............................................................................................................................28
Conclusion...........................................................................................................................28
4.1 Conclusion................................................................................................................. 28
Abbreviations.....................................................................................................29
Bibiliography......................................................................................................30

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 CHAPTER I
INTRODUCTION

1.1 Background

Petroleum is one of the versatile energy sources available in the world. The petroleum
Industry in India is considered to be the wheel of the economy as it is inevitably linked with
all the other industrial sectors. Petroleum is important for industry, infrastructure and the
economy as a whole.
The Indian Petroleum industry is one of the largest sources of energy for the Indian
Industry and public in general .The production, availability and prices of petro-products tend
to impact many aspects of the economy.

One of the major Maharatna enterprise in PSU’s is Indian Oil Corporation Limited
(IOCL) which is the largest commercial enterprise of India and the top ranked
Indian company in Fortune ‘Global 500’ list. The corporation is ranked 137th in the
Fortune ‘Global 500’ listings for 2018. IndianOil, with its 33,125 multitalented and
dedicated
IndianOil people, strong team is taking the lead to meet India’s energydemands efficiently
and effectively, since last five decades, and an enterprise that fulfils India’s
energydemand for inclusive development.

Indian Oil’s business interests extend across the entire hydrocarbon value chain – from
exploration & production, refining, pipeline transportation to marketing of petroleum and
petrochemical products besides foraying into alternate energy. Indian Oil is headquartered in
New Delhi and works relentlessly with its subsidiaries. Indian Oil is pursuing diverse
business interests with its 15 joint ventures with reputed business partners from India and
fulfilling global aspirations through its subsidiaries in Sri Lanka, Mauritius, the UAE,
Sweden, the USA, Singapore and the Netherlands. The corporation has also opened
new overseas offices in Yangon, Myanmar and Dhaka, Bangladesh towards expanding
marketing of finished petroleum products, Petrochemicals, Lubricants etc. in the neighboring
countries as well as development of infrastructure.

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Indian Oil Corporation Limited (IOC) is a national oil company with an 82 per cent
government holding. Its operations range from refining of crude oil and LPG distribution to
marketing of petro-products. It is also the biggest company in the oil and gas sector in terms
of revenues. IOC has 41 per cent of the national refining capacity. It has nine refineries
including two subsidiary refineries - Bongaigaon Refineries and Petrochemicals Limited and
Chennai Petroleum Corporation Limited. The IOC Group refineries achieved a record crude
oil throughput of 43.39 million metric tonnes during 2002-03.

The company's total pipeline network stands at 7,170 km accounting for 76 percent market
share with a combined capacity of 43.45 million metric tonnes per annum. It has an
extensive marketing infrastructure with over 22,000 selling points, around 8,100 retail fuel
pumps, 3,900 LPG distributors, 3,500 kerosene distributors, and 95 aviation fuel stations.

Indian Oil's activities are backed by its "Research and Development Centre", the first
such center established in India. Indian Oil also has four overseas offices in Kuwait,
Kualalumpur, Dubai and Mauritius. As the premier National Oil Company, the company's
endeavor is to serve the national economy and the people of India. IOC has a "vision beyond
tomorrow" - of becoming an integrated and diversified "Global Energy Corporation".

Figure 1.1.1

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1.2 Market Share

State-owned oil companies dominate the marketing of petroleum products in India

today. Their market share as on 31st March 2018for Indian Oil Corporation is 42 %,
Bharat Petroleum Corporation 19%, Hindustan Petroleum Corporation 19%, Reliance
Industries 14 % and Essar Oil 6% approximately on total petroleum products basis.

Figure 1.2.1: Market Share of Petro Public Sector Units as on 2018

45
40
35
30
25
4
2
20
15
10 19
19
5 14
0
6
IOCL BPCL
HPCL
RIL
Essar Oil

In percentage

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Coming to the petro retail outlets India had 58,617 petrol pumps as of January. IOCL
operates the maximum 26,752 pumps, HPCL has 14,853 and BPCL 14,293 pumps

Table 1.2.1: Retailing outlets of Petroleum companies in India as on 2018

Name of the Company No of Retail Outlets Percentage
IOCL 26,752 45.63

BPCL 14,293 24.38

HPCL 14,583 24.87

Reliance Industries 1429 2.43

Essar Oil 1391 2.37

Shell 94 0.16

Others 75 0.12

Total 58617 100.00

Figure 1.2.2: Retailing Outlets of Petroleum Companies as on 2018

Essar 2.37% Shell 0.16%

RIL 2.43%

HPCL 24.87%
IOCL 45.63%

BPCL 24.38%

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1.3 Pipelines

There are two main categories of pipelines used to transport energy products worldwide
i.e.
i. Petroleum Pipelines – They transport crude or natural gas liquids, and there are three
main types of petroleum pipelines involved in this process: gathering systems, crude
oil pipelines, and refined products pipelines systems. The gathering pipeline systems
to a refinery. Once the petroleum is refined into product such as gasoline or
kerosene, it is transported via the refined products pipeline systems to storage or
distribution stations.
ii. Natural Gas Pipelines – These Natural gas pipelines transport natural gas from
stationary facilities such as gas wells or import/export facilities, and deliver to a
variety of locations, such as homes or directly to other export facilities. This process
also involves three different types of pipelines: gathering systems, transmission
systems, and distribution systems. Similar to the petroleum gathering systems, the
natural gas gathering pipeline system gathers the raw material from production wells.
It is then transported with large lines of transmission pipelines that move natural gas
from facilities to ports, refiners, and cities across the country. Lastly, the distribution
systems consist of a network that distributes the product to homes and businesses.
The two types of distribution systems are the main distribution line, which are larger
lines that move products close to cities, and the service distribution lines, which are
smaller lines that connect main lines into homes and businesses.

Indian Oil spearheaded the operations of multi-product petroleum pipeline in India and
continues to be the leader in the downstream sector. The year 2017-18 has been an
eventful year for Pipelines Division with remarkable achievements in operations,
projects and overall business profitability. Indian Oil pipeline network stood at 13,391
km with a throughput capacity of 94.79 MMTPA of liquid pipeline network and 9.5
MMSCMD of gas pipeline network as on 31st march 2018. During 2017-18, pipeline
network has achieved the highest ever throughput of 85.68 Million Metric Tonne
(MMT), which is around 4% more than the previous highest achieved in 2016-17.

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Figure 1.3.1: Growth of Pipeline Network (Length in km)

13,391
2017-18
12,848
2016-17

11,746
2015-16

Figure 1.3.2 Pipelines Throughput (MMT)

85.68

82.49
79.82

2015-16 2016-17 2017-18

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1.4 Economic Performance

Indian Oil accounts for nearly half of India's petroleum products market share. Over 35%
national refining capacity and 71% downstream sector pipelines throughput capacity are
with Indian Oil.
Indian Oil reported a sales turnover of 5, 06,428 Crore and, net profit of 21,346 Crore
during 2017-18 making it the India’s most profitable Public Sector Undertaking. A
contribution of 1, 90,670 Crore was made towards the government exchequer. Indian Oil
received a grant of 6,757.73 Crore from the Government of India during the year 2017-18.

i. Net worth - Net worth is a quantitative concept that measures the value of an entity
and can be applicable to individuals, corporations, sectors and even countries. Simply
stated, net worth is the difference between assets and liabilities. Positive net worth
means that assets exceed liabilities while negative net worth describes the opposite
scenario.

Figure 1.4.1 Net Worth in INR/Cr

99,729
88,134
61,124 65,992 67,970

FY 13 FY 14 FY 15 FY 16 FY 17

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ii. Turnover - Turnover is an accounting concept that calculates how quickly a
business conducts its operations. Most often, turnover is used to understand how
quickly a
company collects cash from accounts receivable or how fast the company sells its
inventory.

Figure 1.4.2 Turnover in INR/Cr

4,57,571
4,50,756
4,45,373

4,14,919
4,06,828

FY 13 FY 14 FY 15 FY 16 FY 17

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iii. Net Profit and Dividends –
Net profit is the actual profit after working expenses not included in the calculation of
gross profit have been paid.
Dividends are a sum of money paid regularly by a company to its shareholders out of
its profits or reserves.

Figure 1.4.3 Net Profit in INR/Cr and Dividends in

percentage

19,106

11,242
7,019
5,005 5,273

FY 13 FY 14 FY 15 FY 16 FY 17

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iv. EBITDA – A company’s earnings before interest, taxes, depreciation, and
amortization is an accounting measure calculated using a company’s earnings, before
interest, expenses, taxes, depreciation, and amortization are subtracted, as a proxy
for company’s current profitability.

Figure 1.4.4 EBITDA in INR/Cr

35,990

23,371
17,284 19,023
14,291

FY 13 FY 14 FY 15 FY 16 FY 17

Figure 1.4.5 EBITDA in percentage

Others
7%

Refining
Petrochemicals 37%
21%

Pipelines
17%
Marketing
18%

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1.5 Marketing Strategies

Marketing strategy is a long-term, forward looking approach to planning with the

fundamental goal of achieving a sustainable competitive advantage.

i. Imported Dispensing units: Imported dispensing units have been installed in retail
outlets toensure accuracy in quantity.
ii. Facilities: Generators, vending machines, potable water and washrooms
were installed atretail outlets.
iii. "ConveniO" Shopping Stores: ConveniO" Shopping stores are opened at
certain retailoutlets, from where customers can purchase cold/hot drinks, snacks
and
groceries.
iv. Jubilee Retail Outlets: Jubilee Retail Outlets has also been launched to set up
petrol/dieselstations on highway with comprehensive value added facilities for
various customer segmentsnamely truckers, farmers, tourists and passenger transport.
v. IndianOil Citibank co-branded credit card: IndianOil Citibank co-branded credit
card iscurrently accepted with no transaction fee at selected Retail Outlets 22 cities
in the country.
vi. Powerplus Fleet Card: Powerplus Fleet Card was brought in association
with SundaramFinance.
vii. Q&Q outlets: Q&Q outlets ensure Quality and Quantity.
viii. ATM's: ATM's were opened at retail outlets in association with banks like ICICI
and GTB.
ix. Provision ofair towers: Air gauges and digital tyre inflators were installed at
retail outlets.
x. Public telephone booths: To help the consumers to communicate, public
telephone boothswere installed.
xi. Cyber cafe: The Company would associate with Dishnet for Internet browsing
& selling netrelated products.
xii. XTRA LOGO: The Corporation's fuel stations with the XTRA logo would
enhance the brandimage. Also proposed is the automation of 1,000 fuel stations. All
the outlets have alreadybeen certified for quality and quantity supply by the Bureau
of Veritas.
xiii. Auto Fuel: IOC's new generation auto fuels IOC Xtra Premium (Petrol) and

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Diesel Super (Xtramile) in Chennai on January 13, 2003 were launched.

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xiv. IOCL Xtra Premium: IOC premium is the first petrol in India to have 91 Octane
rating asagainst 88 Octane rating, which is presently available at the other retail
outlets. IOC Premiumis also reinforced with world-class multi-functional additives.
Mr. P.K. Agarwal, Director (Marketing) IndianOil, said IOC Premium not only
deliversextra mileage but also greater acceleration, faster pick-up, extra
smoothness and peak enginepower. It also eliminates engine knocking in the car.
The multi- functional additives infusenew life into the engine by cleaning the
carbon deposits and ensuring cleaner engines andlower maintenance costs. As a
result, the engine’s performance is at its peak.
xv. Xtramile Diesel Super: Diesel super is a new generation diesel reinforced with
world-classmulti-functional additives. It cleans the engine, minimizes exhaust
emissions and preventsgum formation. It also helps to restore peak engine power
and acceleration and ensuresreduced maintenance costs.

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 Chapter II
Literature Review

2.1 Introduction

There were two core projects assigned within the boundaries of Chandigarh and Mohali, first
of which is regarding the grievances of the XtraPower fleet customers of Indian Oil
Corporation Ltd and the implication to improve the concept to further, Second project given
is to retain the existing customers at India Oil Corporation Company Owned Company
Operated Outlets in short also known as COCO outlets.

Figure 2.1.1

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2.2 XtraPower Fleet Program - For knowing the customer grievances of XtraPower
concept, firstly we have to understand the XtraPower business model to its core by which
one could handle and create a basic insights on the objections that could be made by
customer and thus tackling it properly.

XtraPower is the card concept of getting cash back for the fuel purchased, is a smart chip
based fleet card program where customers get a smart chip fleet card for each of their
vehicle. This smart chip based fleet card comes as Pre Paid or Credit depending on
customer’s choice. It is only for the large customers for which minimum fuel to be
purchased areup to 2 lakh for which they will be getting .75% return. XtraPower has made a
slab for its customers on monthly sales of the fuel and thus segmented their customers
according to their consumption –

Table 2.2.1 Xtra Power Business Concept

Incentives Banking Govt. 0.75% Total Applicable
Details Monthly Sales
Customers Scheme Incentives

Club Up to 2 lakh 50 25 75

Silver >2 to 10 lakh 50 25 75

Gold >10 to 25 lakh 70 25 95

>25 to 50 lakh 85 25 110

Titanium >50 to 75 lakh 100 25 125

>75 to 1 crore 115 25 140

>1 to 2 crore 130 25 155

Platinum
>2 to 5 crore 145 25 170

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By the above depicted figure, it is shown that Indian Oil Corporation Ltd has segmented its
XtraPower customers in five categories i.e.

1. Club Customers – These are the customers whose monthly sales is up to 2

lakhsfrom Indian Oil Corporation Ltd and on the purchase of 2 lakh of fuel they will
be getting .75% incentives that will be cost up to INR 1,500.
2. Silver Customers – These customers are having a monthly sales ranging between
2 lakh to 10 lakh and for which they will be getting incentives worth .75% of the
net amount purchased.
3. Gold Customers – Gold customers are having purchasing capacity from 10 lakh to
25 lakh for which they will be getting .75% incentives respectively.
4. Titanium Customers – Titanium customers are segmented in 3 different categories
i.e. 25 lakh to 50 lakh; 50 lakh to 75 lakh; and 75 lakh to 1 crore for which they can
redeem their incentives on .75% basis.
5. Platinum Customers – These are the last segment of fleet customers whose
monthly sales to company is divided into two categories i.e. 1 crore to 2 crore, 2
crore to 5
crore and for which they are incentivized .75% respectively.

Figure 2.2.1

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2.1.1 Advantages

Various advantages of XtraPower Fleet Program for customers are:-

1. Convenient Option – XtraPower is a convenient option for the customers due

to different fruitful properties :-
i. As fleet customers purchase fuel in large quantities so to pay for the fuel,
cash becomes a difficult mode of payment so to alternate this situation; a
customer can fill loads of money to XtraPower Fleet Card and thus could
purchase fuel on cashless terms.
ii. Moreover as far as the topic of recharging the account is there, it could be
done easily through multiple modes like cheque, RTGS/NEFT,
Credit/Debit Cards, or through Internet Banking.
iii. For the surety of the transaction, SMS alert is also there to avoid any threat
or faulty transactions.
iv. For altering the daily transaction and sales, generic card is also there for
large fleet owners to changing the daily limit of sales transaction as per their
convenience from the generic cards.
v. For availing the reports and monthly statements of the fuel transaction
made, instant online option could be used
vi. Some customers want their reports on specific facets only, so for them an
option of customized report is there by which they could get report on
their own customized terms.
2. Option of Easy Fleet Management –
i. Easy fleet management incorporates certain limits that helps customer
gain total control over the fuel spend such as sales transaction which is
INR
40,000; Daily Limit of INR 60,000 and monthly limit of INR 3,00,000 which
ensures total trust towards company’s program.
ii. Also if the fleet card loses by some means, it could be instantly blocked
for the further transactions giving customer a total security.

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3. Insurance Benefits -Insurance Benefits along with mediclaim benefits of the fleet
program is unique in the industry given by Indian Oil Corporation Ltd, even the
large corporate logistics companies consider this as a value proposition for their
transporters. Some of the Insurance benefits are
i. Road Personal Accident Insurance of INR 50,000 per card to fleet owner
up to a maximum of INR 20,00,000; For Drivers INR 1,00,000; Helper INR
50,000
ii. Road Accident related Medical Insurance during the period of Insurance
coverage -
(a) Owner: INR 10,000 per card subject to maximum of INR 1,00,000
(b) Driver: INR10,000
(c) Co-Driver: INR 10,000
(d) Helper-cum-cleaner: INR 10,000
This benefit is available only for hospital expenses incurred for injuries
arising from road accidents only where terms and conditions are also applied
by the organization.
iii. The unique and unmatched kind of claim settlement is also given in
which INR 2,00,00,000 of benefits have been settled for rendering
financial and social security to the kin of truck crew against the insurance
benefit for XtraPower Fleet Program.

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2.2 Company Owned Company Operated Outlets

The second project is for the retention of the customers at Indian Oil Corporation Company
Owned and Company Operated outlets. Before coming to the project, firstly there are two
types of petro retail stations i.e.

1. DODO (Dealer Owned Dealer Operated) Outlets – Also termed as retail outlets,
these are the outlets which are operated by a sole proprietor and get a margin on per
litre of the fuel sold. These are also divided in two types
i. A site – This is the one in which land is owned by an individual but
developed by the company and then handed over to the individual,
where the individual runs the outlet and gets a lesser commission/litre as
compared to B site.
ii. B site – It is simple the outlet which is developed and operated by
individual itself and get higher commission/litre as compared to A
site.

2. COCO (Company Owned Company Operated) Outlets –These are the outlets
whose land and operations both are to be done by the company itself, generally
termed as
exclusive retail outlet of a company. Here whole of the investment is done by
company itself and no involvement of private party is there.

2.3 Cricket Car-Nival

Apart from these two projects an additional project is also assigned which a mega sales
promotion strategy of Indian Oil for the cricket season and to be more explicit due to
world cup tournament of cricket that is why termed as Cricket Carnival.

The scheme has been for a period of six weeks from 1st June 2019 to 15th July 2019
across the country. At end of every fortnight, customers will get a chance to win
attractive gifts. After the end of campaign on 15th July 2019, a lucky draw for bumper
prize will be conducted and eligible customers stand a chance to win cars or motorbikes.

A customer could participate as prescribed - All 2-wheeler customers, taking fuel worth
a minimum of Rs. 300/- and 4-wheeler customers, taking fuel worth a minimum of
Rs.1000/- can participate in the campaign. To participate, eligible customers need to send
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SMS as per format to 7710540400. The format of sending the SMS - 'Dealer Code' Bill
Number Bill Amount

The prizes for Bumper Lucky Draw at the end of Cricket Car-Nival are:

Table 2.3.1 Cricket Car-Nival Festival

Prize Gift Number of Gifts

Premium Sedan Car/ SUV
1st 1
worth 12 lakh

2nd Car worth 5 lakh 4

3rd Motor Bikes 16

4th Smart Phones 200

5th Autographed Cricket Bats 100

Speaking at the campaign launch, Mr. Subodh Dakwale (ED of CC & Branding) said,
"This is a very nice opportunity for our valued patrons and cricket enthusiasts to
participate in this scheme and win attractive prizes such cars, motor bikes, smart phones,
etc. In addition to bumper lucky draw after the end of campaign on 15th July 2019, 2000
Fuel Vouchers worth Rs. 500/- each shall be declared every fortnight during the offer
period."
Added Mr. Vigyan Kumar, ED (Retail Sales), IndianOil, "In India, cricket is like a
religion. We have launched this campaign across all our fuel stations to coincide with
the Cricket World Cup 2019. We would encourage all cricket enthusiasts to participate in
the Cricket CarNival at IndianOil fuel stations and win big. "

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 Chapter III
Research Methodology and Hypothesis

3.1 Objective

Without any goal in mind any effort made is blur that is why an objective is set before
accomplishing any goal so that it creates clarity in mind and body to function like wisely.

The objective and main goal of the thesis is to obtain an exposure in petrochemical industry
while drawing and gathering data with supportive suggestions so that it would be beneficial
interdependently to industry as well as to us. It gives me an insight about the market of
petroleum companies and how they operate in order to get the desired results which would
be helpful for me in rest of my life as a learning and experience and thus could operate in
any petroleum organization smoothly and effectively.

3.2 Research Methodology and Hypothesis

3.2.1 XtraPower Fleet Program

For XtraPower Fleet program I have met a lot of fleet owners in order to get the aggregate
data so that it is consolidated and result could be interpreted. For this, there are several types
of customer present in market like fleet owners, transporters, corporate customers and
industrial ones. The total sample size is around 70 including corporate customers and fleet
ownerssegmented according to theirmonthly and annual sales.

Initially for enrolling the customer into XtraPower following things are required:

 For Corporate Customers

i. Application Form - Aform that should becompleted in order to apply
for card
ii. Balance Sheet – A balance sheet is a financial statement that reports a
company's assets, liabilities and shareholders' equity at a specific point in
time, and provides a basis for computing rates of return and evaluating
its capital structure. It is a financial statement that provides a snapshot of

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 what a company owns and owes, as well as the amount invested
by shareholders.
iii. GST Number - GST Identification Number (GSTIN) is a unique 15-
digit PAN based number required by all eligible service providers and
traders in India to operate their business smoothly under GST.
iv. PAN Card - It is a ten-digit alphanumeric number, issued in the form of a
laminated card, by the Indian Income Tax Department, to any "person"
who applies for it or to whom the department allots the number without an
application.
v. Corporate Declaration - It is a written statement submitted to a court
in which the writer swears 'under penalty of perjury' that the contents
are true. That is, the writer acknowledges that if he is lying, he may be
prosecuted for perjury. Declarations are normally used in place of live
testimony when the court is asked to rule on a motion.

 For Fleet Owners

i. PAN Card – It is the same requirement as mentioned for
Corporate Owners.
ii. Copy of RC - It is a copy of an official document that acts as a proof
of registration of a motor vehicle. It is very important to have your
vehicle registered in order for it to be driven in a public space.
iii. Address Proof – It a document showing the proof of the
customer’s livelihood through his home address.

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Also for the convenience of the customer various forms of fleet cards are made by Indian
Oil. Few of them are:-

i. Driver Card – These are the basic concept of normal fleet card for
whose transactional limit is set default by the organization.

Table 3.2.1.1 Driver Card Transactional Limits

Type Amount (INR)

Sales Transaction 40,000
Daily Limit 60,000
Monthly Limit 3,00,000

ii. Rural Card – These cards are especially made for rural fleet owners who are
generally having a low purchasing as compared with urban customers.

Table 3.2.1.2 Rural Card Transactional Limits

Type Amount(INR)

Sales Transaction 25,000

Daily Limit 50,000

Monthly Limit 2,00,000

iii. Generic Card – These are the cards made for the customers of high purchasing
by which they get a service of altering limits as per their requirements and
could avail its benefits.

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 Table 3.2.1.3 Sample of the customers for drawing data

Types of Customers

Industrial Customers Commercial Customers

I Bharti Airtel Apni Cabs

Ii BK Trading Co. Benchmark Motors
Iii Yes Bank Ranveer Rana
Iv SIS Karan Taxi
V BBT SIPL
Vi Bijli Board Raj Taxi
Vii Indus Tower Shivraj
viii GIL Shishu Niketan
ix AIPL Jughar Bus Service
x Checkmate Services Gurunanak Travels
xi Hightech Dashmesh Travels
xii Amazon Courier Surjit Singh
xiii Writer Security Paramjit Singh
xiv Renault Rajesh Maggu
xv RMCL Jagdeep Taxi Stand

Although there are more customers from which the final interpretation is made but these
are the majority of customers availing at one or more outlets so their data has a huge
proportion for getting results.

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Although partly of the customers are not having problem with the XtraPower Concept but
some of the customers are concerned with several grievances such as –

i. Elderly or Older people, unaware of the new technology are having their belief of
filling or recharging the fleet card via visiting the petro retail outlet thus making
it a time consuming task. They believe firmly on offline modes as compared to
online modes of payment
ii. Although people are having trust with Indian Oil but then also a suggestion is
given that while giving payment for fleet card, company should provide a
receipt of payment as a mode of trust and surety for customers.
iii. Customers should be given a receipt apart from online mode service of
what incentives he/she is getting on behalf of the card used which thus
shows a transparency between customer and organization as stated by a
customer.
iv. Majority of the customers states that the machine is having some problem by
which it shows faulty transaction, server problem, invalid pin irrespective of
the correctly one, this problem is on regular basis as defined by customers.
v. While conducting research it is also found that some leads that could
become customers to the organization shows repel affect as showing details
like PAN card to the government.
vi. It should be an easy concept like Xtra Reward by which customers could be
made on the spot if present and could be a faster like debit and credit card and
thus have a transaction within seconds, while in practicality it is a time
consuming
task due to machine and its processing.

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3.2.2 Customer Retention in IOCL COCO

For creating a strategy for IOCL COCO, firstly I have to visit all the present COCO facility
of IOCL within Chandigarh. For making a strategy following research five COCO’s are
visited namely –

i. COCO 35 – It is the biggest COCO of IOCL in Chandigarh and situated

in epicenter of the city.
ii. COCO 56 – It is situated in the brink of Chandigarh and Mohali of Punjab region.
iii. COCO 79 – This COCO is placed in Mohali, a border of Punjab and Chandigarh.
iv. COCO 65 – This outlet is also situated in Mohali.
v. COCO IT Park – It is a WIP (working in progress) COCO of IOCL situated at the
verge of the city.

These five outlets are covered for making strategy, also in Chandigarh there are only five
COCO’s of IOCL. By researching these facilities strategies within the organization is
found but to create a long lasting sustainable relationship with customers, a company
should knew about their competitors too. So for this I have visited the main facilities of
competitors of IOCL which is majorly BPCL as they are also having their COCO’s too
and another competitor which plays a small role due to absence of COCO in region is
HPCL. They assure that their services are getting an edge over IOCL like –

i. Double Sided Entry – It means getting customers from the outlet’s

left and right side too due to the presence of double side entry.
ii. Accommodation – Larger accommodation facility treats and satisfy
more customers.
iii. Pollution Checking Machine – This machine is to be kept in outlet
for checking the pollution and thus could retain more customer.

In general if seen, the services that every retail outlet is providing is somewhat similar to
another so to create retention is somewhat difficult but here comes the role of CRM which is
an approach to manage a company's interaction with current and potential customers. It uses
data analysis about customers' history with a company to improve business relationships
with customers, specifically focusing on customer retention and ultimately driving sales
growth.

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Customer satisfaction and Service quality and are inarguably the two core concepts that
are at the crux of the marketing theory and practice (Spreng and Mackoy, 1996). In today's
world of intense competition, the key to sustainable competitive advantage lies in delivering
high quality service that will in turn result in satisfied customers (Shemwell et al., 1998).
In today's competitive environment one of the most important goals of corporate culture
is retaining and satisfying customers. Experience shows that only "consumer oriented"
Corporations can achieve this goal. These companies focus on the needs and want of specific
target groups and then work hard to maximize satisfaction with the product or service being
offered (Vavra, 1997).
Customer satisfaction measurement (CSM) serves two roles, providing information and
enabling communication with customers. Perhaps the primary reason for taking the time to
measure customer satisfaction is to collect information, either regarding what customers say
that needs to be done differently or to assess how well an organization is currently meeting
its customer needs (Vavra, 1997). A secondary, but no less important function of CSM in
Enterprises is that by surveying customers, an organization is demonstrating its interest in
communicating with its customer - finding out their needs, pleasures, displeasures and
overall well-being. In India, it is vital for oil companies to devise strategies to maintain their
current market leadership. Petro Public Sector Units must adopt a proactive approach for
the future.
But then also Research shows that consumers today have little loyalty to gasoline brands;
instead, convenience and pricing are a gas station’s main attractions. This has remained true
despite loyalty programs and gasoline brand credit cards. Few of the strategies that I thought
would provide IOCL COCO an edge over its competitors are:-

i. Excellent customer service – The reputation of station’s staff is key

to success. Make sure that staff members are always respectful, ready
to
attend customers, and friendly as they depict the image of the company
they are working for. Remember, when they have a bad experience,
people talk about it to their friends and family and if staff is rude, risk is
losing much more than just one customer.
ii. Store and station appearance – Make sure the station looks good, inside
and outside. The landscape, dispensers, driveway, trash bins, and exterior
of the buildings are the first things customers, and all other passing
traffic, see. If your station looks appealing, more people will stop by.
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iii. Cleanliness – Maintain the outlet and store up to par by always
keeping windows, floors, and restrooms clean. Spotless bathrooms are
very
important to customers, especially those travelling long distances. Paying
special effort to maintaining and modernizing facilities is a good way to
attract a multitude of customers. Their cleanliness, along with overall
store appearance, will help increase sales and retain more customers.

iv. Competitive pricing – Keeping gasoline pricing comparable, or

below, other neighboring sites is a great way to maintain loyalty and
get repeat customers, who might then decide to also drop by at petro
retail outlet.

v. Various types of services – Recognize what goods and services

consumers want provided to them quickly, and making sure that IOCL
offer them. These might include, for example, ATMs, drugstores, coffee
islands, car washes and liquor sale.

vi. Stock up – Make sure convenience store is fully stocked with all the
merchandise our customers wish to buy. Keep track of expiration
dates, and check that all products are fresh.

vii. Gas station lighting – It is very important to keep site well lit and
safe, especially during dawn and evening hours. This will prevent
customers from getting injured or harmed in any way.

viii. Promotional signage – Representing brand properly is important as

customers look at promotional signage on a daily basis.

ix. Marketing – Promoting products and current offers is a great way to add
brand awareness. Marketing materials do not just promote the items in
them, but also your brand - the imagery of who you are as a convenience
store. Making sure marketing materials are tasteful and fun like that of
Cricket Car-Nival is very lucrative way to approach customers in the

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season of world cup.

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 Chapter IV
Conclusion

4.1 Conclusion

The thesis concludes with the findings that although Indian Oil is having a huge market
share and is known as a major in Petroleum sector but due to advancement in technology;
entrance of new competitors; maturity of the stagnant business, but then also a company
should keep eyes on market and its competitors which IOCL is generally doing but as per the
research it is to be suggested that the alliance which IOCL is forming should not affect their
image in market as like in XtraPower Fleet program the customers are well satisfied with
the scheme but what hinders is that the machine is not working properly i.e. the alliance
formed with HDFC is lowering the image of IOCL in the eyes of customers as in here
HDFC due to its backend processing with IOCL through the fleet program machinesis not
seen and thus the whole impact of this goes to Indian Oil. As the major grievances of
customers for
XtraPower is due to the machine which should be rectified as soon as possible as it does not
create a good image in the eyes of the customer although they are satisfied with the program.

As far as customer retention is concerned, COCO’s should train their attendants properly
as they are the backbone of the organization when customer fills the fuel. Greetings like
Good Morning, Welcome to COCO, etc. could be done effectively to show the difference
among IOCL COCO and DODO. Once in a month a program of awareness of COCO
should be done as while researching it is found that 75% of customers do not knew about
COCO and the difference they are having as compared with DODO.

Lastly, I am very thankful for getting my internship in IOCL Chandigarh as they have given
me the experience which I could never forget and is helpful for me in my career in
upcoming future. The exposure which I gained while researching in market is unforgettable
as there are different types of customers with whom you cannot talk the way you do with
anybody, this
exercise of talking with various sentiments of customers have improved my soft skills thus
enabling improved communication. I could say that we whole as a UPES are very honorable
to get an opportunity of internship in IOCL.

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 Abbreviations

IOCL/IOC – Indian Oil Corporation CR – Crore

Limited
RTGS – Real Time Gross Settlement
COCO – Company Owned Company
Operated Outlets NEFT – National Electronic Funds
Transfer
DODO – Dealer Owned Dealer Operated
CRM – Customer Relationship
Outlets
Management
UPES – University of Petroleum and
CSM – Customer Satisfaction
Energy Studies
Measurement
HDFC – Housing Development Finance
Corporation PAN - Permanent Account Number

ATM – Automated Teller Machine RC – Registration Certificate

PSU – Public Sector Undertaking GST – Goods and Services Tax

LPG – Liquefied Petroleum Gas GSTIN – Good and Services Tax

Identification Number
HPCL – Hindustan Petroleum Corporation
Limited ED – Enforcement Directorate

BPCL – Bharat Petroleum Corporation SUV – Sport Utility Vehicle

Limited EBITDA – Earnings before Interest,

RIL – Reliance Industries Limited Taxes, Depreciation, and Amortization

MMT – Million Metric Tonne PAT- Profit after Tax

MMTPA – Million Metric Tonne per PBT – Profit before Tax

Annum USA – United States of America

MMSCMD – Million Standard Cubic Feet UAE – United Arab Emirates

per Day

INR – Indian Rupee

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 Bibliography

 www.wikipedia.org

 iocxtrapower.com

 iocl.com

 www.iocl.com/Aboutus/sustainability.aspx

 sustainability report

 Indian Oil Investor Presentation