Role of CRM in Oil and Gas Sector.

(A study of IOCl ROs)

UNIVERSITY OF PETROLEUM AND ENERGY STUDIES DEHRADUN Submitted to: Dr. Suresh Malodia

Submitted by: Aishwarya Verma Integrated BBA (Oil & Gas) Vth Semester

Acknowledgement

I would also like to extend sincere gratitude towards Mr. Gulshan Sethi (Deputy Manager, Retail Sales) & Mr. MK Shagel (Asstt. Manager Retail Sales Delhi 2) for their guidance and continuous support during the complete duration of the project. He consistently encouraged me during the project and provided valuable inputs to proceed with the project.

I also take this opportunity to thank, my mentor, Dr. Suresh Malodia,and my course co-ordinator Dr. Sheetal Khanka for the invaluable inputs in development of the project, and in terms of the methodology and formulating analysis.

Last but not the least I am thankful to each and every customer of Indian Oil who participated in the survey and provided me with their valuable feedback.

Aishwarya Verma Int. BBA (O&G)

Abstract
This project has been undertaken taken to do a detailed analysis of the role of CRM in the Oil and Gas sector. For this purpose I did a detailed study on the Xtracare Retail Outlets of Indian Oil. Indian Oil branded its petrol pumps in the cities by the name of Xtracare under its retail branding exercise. The company aimed that Xtracare, its branded fuel retail outlets, would stand for the highest level of Quality & Quantity and an enhanced customer experience. The report aims to do a gap analysis of the Xtracare retail outlets to find the difference between the actual and the expected performance of these outlets. This difference in their performance level is measured by observing these outlets and checking the level of services delivered to the customer. The project tries to find out the attitude of the dealers of the Xtracare outlets towards this initiative of the company. It also aims to find their motivation level and their satisfaction from the company and how this affects the sales of the retail outlet. Indian Oil customers present at the petrol pump are surveyed to see their satisfaction level and also their expectations of the services offered at a petrol pump. The customer survey also tries to understand the behavior of the customers towards a petrol pump. The findings from the study would help the company with insights into areas that need to be improved.

Table of Contents

1. Introduction ...6 1.1 Introduction..7 1.2 Indian Oil: Company Profile..8 1.3 SWOT Analysis......11 1.4 IOCL Products in the market 13 1.5 IOCL Services..17 1.6 IOCL Brands.18

2. Research Design19 2.1 Research Design 2.2 Objective 2.3 Scope 2.4 Methodology 2.5 Data Collection 2.6 Scaling Techniques 2.7 Questionnaire Development & Pre-testing 2.8 Sampling Technique 2.9 Sample Size 3. Literature Review.25 4. Data Analysis & Interpretation..26
4

4.1 Customers Survey27-34

5. Research Findings...36 6. Recommendations...39 7. Limitations....41 8. Conclusion...........43 9. References and Annexure..45 9.1 References.46 List of Figures: 1. Figure 1: Business Model of Indian Oil 2. Figure 2: Supply Chain Network of Indian Oil 3. Figure 3: Competition among Oil Marketing Companies

Introduction

Introduction
The purpose of the study is to provide qualitative inputs to the organization about strengthening their Xtracare proposition of Delhi. The project aims to do a gap analysis between the actual performance of the Xtracare Retail outlets and the expected performance by the company. Also, it aims to evaluate if the Xtracare brand has helped increase its sales figures and the custom satisfaction level. The study has been conducted to get a deep insight of consumers perceptions and expectations regarding the Indian Oil Corporation Limited and to study the preferences of consumers in case of a fuel station and majorly to review that whether the customers, dealers and the pump attendants have been able to relate to the value added services as per the provisions of the Xtracare Policy so as to support the pro-active approach of creating an edge over its competitors inspite of IOCL being the biggest player in this Oil & Petroleum Industry.

Other Oil Marketing Companies: Competitors profile

Graph 1: Market Share of Oil Marketing Companies (OMCs) in India

INDIAN OIL: COMPANY PROFILE

Indias flagship national oil company and downstream petroleum major, Indian oil corporation Ltd.(Indian oil) celebrated its Golden jubilee during 30th June 1st September 2009. Establish as an oil marketing entity on 30th June 1959, Indian oil company Ltd. Was renamed Indian Oil Corporation limited on 1st September 1964 following the merger of Indian Refineries Ltd. (established in August 1985) with it. The integrated refinery &marketing entity has since grown into the countrys largest commercial enterprise and Indians No.1 Company in the prestigious Fortune Global 500 listing of the worlds largest corporate, currently at 98th position. It is also the 18th largest petroleum company in the world. From a fledgling company with a net worth of just Rs. 45.18 crore and sales of 1.38 million tonnes valued at Rs. 78 crore in the year 1956 ,Indian oil has since grown over 3000 times with a sales turnover of Rs. 285,337 crore, the highest-ever for an Indian company and net profit of Rs. 2,950 crore for 2008-09 Set up a mandate of achieving in self sufficiency in refining and marketing operations for a nascent nation set on the path of economic growth and prosperity ,Indian oil today accounts for nearly half of Indias petroleum consumption, reaching precious petroleum to million of people every day though a country wide network of 35,000 sales points. They are backed for supply by 167 bulk storage network and depots, 101 aviation fuel stations and 89 Indane LPG bottling plants. For the year 2008-09, Indian Oil sold 62.6 million tones of petroleum products, including 1.7 million tones of natural gas. The Indian Oil group of companies owns and operates 10 of Indias 20 refineries with a combined capacity of over 60 MMTPA, accounting for 34% of national refining capacity , after excluding EOU refineries. Project under execution will take the capacity further to 80 MMTPA by the year 2011-12. Besides setting up state of art facilities to raise product quality to global standards, IndianOil has undertaken chartering of ships of crude oil imports on its own and is expanding its basket of crude and upgrading its refineries to handle a wider of crudes, including high-sulphur types . Indian Oil and its subsidiaries account for 49% petroleum products market share, 40.4% refining capacity and 69% downstream sector pipelines capacity in India. Being the flagship oil company of India, it reaches its petroleum product through 34000 sales points. Thus, having the largest and widest network of petrol and diesel stations in India, numbering over 17900. It also produces the Indane cooking gas and reaches to millions of households in around 2700 markets through around 5000 Indane distributors. Indian Oil also has a wholly owned subsidiary Indian Oil Technologies Ltd. which is engaged in commercializing the innovation and technology developed by the R&D wing of the company.
8

BUSINESS MODEL
The major businesses of Indian Oil are in the fields of Refining Pipelines Marketing Research and Development Petrochemicals

Indian Oil is the largest refinery in India. It has a refining capacity of 60.2 million metric tonnes per annum (MMTPA). Although the Core business of Indian Oil is refineries, it is also into many other businesses related to crude oil.

CRUDE

INDIAN OIL CORPORATION

REFINING

PIPELINES

RESEARCH AND DESIGN

MARKETING

FUEL/PETROLEUM PRODUCT

PETRO CHEMICALS

GAS

Figure 1: BUSINESS MODEL OF IOCL

9

Indian Oil also caters to its large volume consumer segment by providing them complete Fuel Management Solutions. It has proper storage and dedicated facilities for its customers who have bulk requirements. The tankages of Indian Oil are strategically located across the country and are custom-designed to maintain lowcost supplies that can be rapidly transported through a sophisticated supply-chain management system. Indian Oil has a strong R&D support which continuously works on the product quality improvement, evaluation of catalysts and additives, health assessment of catalysts, material failure analysis, troubleshooting and in improving overall efficiency of operations. It has also launched initiatives in the field of exploiting alternative sources of energy like hydrogen and Biofuel. The marketing and distribution network of Indian Oil is very strong with around 34000 marketing touch points and its petrol/diesel stations spread across the country. Its marketing efforts have made its brand recognized not only nationally but also internationally. It has always come with innovative product schemes such as XTRA PREMIUM and XTRACARE.

SUPPLY CHAIN OF INDIAN OIL

INPUTS Transformation Local Service Provider Output

Middle East

Koyali Panipat Mathura Barauni Haldia Guwahati Digboi

Fuel Automobiles & Household

Supply network

Africa

CPCL Chennai Narimanam BRPL Bongaigaon

Indane LPG for Domestic and commercial use

Non Fuel Products

Agri Industries Pharma Industries Food Processing Industries

Suppliers

Manufacturing

Distribution

Customers

Figure 2: Supply Chain Network

10

SWOT Analysis
Strengths: Huge network of petrol pumps in the city of Delhi Excellent Brand Image Market Leader Being a PSU it enjoys Government support and also various privileges which the private players are deprived of. Weakness: Being a PSU decision making has to go through formal proceedings. Rules are generally followed for every decision, for example in the Third party Certification tender is issued and then the company quoting the lowest price is given the tender. The efficiency of the company is not much investigated. Though this is not a weakness in isolation but in the light of private players like Reliance and Essar which do not have such restrictions, this can be said to be a weakness. Gaps in the implementation of policies, like that of Xtracare, at the ground level i.e. at the level of the dealer and pump attendants.

Opportunities: Indian Oil has not exploited its full potential in the non fuel business yet. Globally non-fuel business accounts for a substantial portion of petrol pumps margin. However, Indian Oils non-fuel revenue is meager. Its total 60 petrol pumps all over India engage in non-fuel business. Considering its strong hold in Delhi the company can explore this vast territory. It can employ a research team to understand the consumer behavior and identify the needs of a customer at a petrol pump in order to design a non-fuel retail outlet.

11

Threats: Major threat remains from Hindustan Petroleum Reliance has a strong brand image in terms of quality and quantity. Once it enters in the main city of Delhi competition will be very fierce. Loyalty of customers might get changed from Indian Oil to Reliance.

12

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, SERVO backed by Indian Oil's pioneering R&D, extensive blending and distribution network, sustained brand enhancement and new generation packaging is a one-stop shop for complete lubrication solutions in the automotive, industrial and marine segments.

In the retailing segment, besides Indian Oil petrol stations, SERVO range of lubricants is available through a network of SERVOXpress stations, bazaar outlets and thousands of auto spare parts shops across the country. The SERVO range includes over 500 lubricants and 1200 formulations encompassing literally every lubricant requirement.

The SERVOXpress is a one-stop shop for quick, easy and convenient auto care, providing customers with a refreshing experience. The SERVOXpress stations have facilities for oil change, tyre/battery checkups, A/C service, vacuum cleaning, perfuming, and upholstery cleaning, polishing and lamination installation too.

INDANE LPG GAS Indane is today one of the largest packed-LPG brands in the world. 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, efficient and safe cooking fuel. LPG also led to a substantial improvement in the health of women in rural areas by replacing smoky and unhealthy chullahs with Indane. It is today a fuel synonymous with safety, reliability and convenience. Indian Oils Indane LPG gas is used in 40 million homes as cooking fuel and commands over48% market share in India.

13

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. Between one sunrise and the next, Indian Oil Aviation Service refuels over 1500 flights from the bustling metros to the remote airports linking the vast Indian landscape, from the icy heights of Leh (the highest airport in the world at 10,682 ft) to the distant islands of Andaman & Nicobar. 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.

AUTO GAS AutoGas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is obtained from natural gas through fractionation and from crude oil through refining. It is a mixture of petroleum gases like propane and butane. The higher energy content in this fuel results in a 10% reduction of CO2 emission as compared to MS.

XTRAPREMIUM PETROL XTRAPREMIUM Petrol is Indias leading branded petrol boosted with new generation multifunctional additives known as friction busters that prevents combustion chamber deposits. XTRAPREMIUM is custom designed to deliver higher mileage, more power, and better pick up, faster acceleration, enhanced engine cleanliness and lower emissions.

XTRAMILE SUPER DIESEL Indian Oils XTRAMILE Super Diesel, the leader in the branded diesel segment is blended with world-class Multi Functional Fuel Additives (MFA). Commercial vehicle owners choose XTRAMILE because they see a clear value benefit in terms of superior mileage, lower maintenance costs and improved engine protection.

14

A growing section of customers who own diesel automobiles, both in the lifestyle and passenger category, prefer XTRAMILE as a fuel for its added and enhanced performance. XTRAMILE has brought in

a huge savings in the high mileage commercial vehicle segment. Transport fleets that operate a large number of trucks crisscrossing the country are using XTRAMILE to not only obtain a higher mileage but also for low maintenance costs.

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 prepaid and credit facilities The fleet card program also offers an exciting rewards program and unique benefits like personal accident insurance cover and vehicle tracking facilities. In just under two years of its launch, Indian Oils XTRAPOWER Fleet Card has emerged as the largest fleet card in the country with the widest retail outlet coverage.

SUPERIOR KEROSENE OIL Kerosene is distillate fractions of crude oil in the boiling range of 150- 250C. 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, colour & burning qualities (char value). Kerosene is used as a domestic fuel for heating / lighting and also for manufacture of insecticides/herbicides/fungicides to control pest, weeds and fungi. Since kerosene is less volatile than gasoline, 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. The two types of burners which achieve this fall into two categories namely vaporisers & atomisers.

15

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 non- fuel. Non-fueling offering through Best-in-class alliance on exclusive basis wherever possible communication, food, rest, healthcare, parking vehicle care etc.

XTRA CARE The launch of Xtra Care was the culmination of a series of plans in retail design, product and service up gradation, capability training, automation, loyalty programme, retail site management techniques all benchmark to global standards. While the industry standard is to take samples on a quarterly basis, Indian Oil has moved several steps ahead by introducing fortnightly random sampling with specific importance given to Research Octane Number (RON) sampling which is truly the definitive test for quality and quantity. So far over 400 Xtra care retail outlets have been set up, around 1500 Xtra Care retail outlets will be ready soon.

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 customers paying by cash, credit and debit cards.

Each transaction is confirmed on-line through a charge slip and customers can earn points on fuel/lube purchases at participating Indian Oil Retail Outlets. Additional points can also be earned outside the Indian Oil network, covering prominent FMCG, Food, Automobile, Travel, Entertainment, Apparel and Hospitality sectors.

16

2.5: IOC: SERVICES Consultancy

For over two decades now, Indian Oil has been providing technical and manpower secondment services to overseas companies. Such services have been extended to Emirates National Oil Company (ENOC), Kenya Pipeline Company and Aden Refinery, Yemen. For the first time, SAP implementation / IT consultancy was provided in Sri Lanka. Consultancy on pipelines was provided to Greater Nile Petroleum Operating Company (GNPOC), Sudan .The 2nd India-Africa Hydrocarbons Conference at New Delhi was jointly organized by Mop & NG, FICCI and Indian Oil. Kuwait Petroleum Corporation (KPC) selected Indian Oil as a training provider.

17

2.6: IOCL BRANDS

18

Research Design

19

Research design
The research is exploratory in nature with the following characteristics: To provide insights and understandings on an aspect. Sample is small Research method is flexible Followed by conclusive research

Objective
The purpose of the study is to give the company a detailed report on the customer satisfaction level at the Xtracare retail outlets and the to understand the gap between the actual and the expected performance of these outlets.

Scope
The report would : Find the gap between the actual performance and the performance expected by the company in the functioning of the Xtracare retail outlets in the city of Lucknow. It will help to cope the gap between the company the companies offerings and what customer wants. Analyze the sales figures of the Xtracare retail outlets before and after the implementation of the Xtracare concept and compare these figures with that of the normal (non-Xtracare) retail outlets to see if there is any significant difference between the two figures.

Summarize the findings and give recommendations to the company to improve the proposition of Xtracare retail outlets.

Following is the formatted questionnaire which used is in surveying the customers :20

Customer Detail:-

Name:_________________________

Phone No.: ____________________

Sex: ___________________

Age: ______________ ________________________________________________________________________

1.

How do you identify a fuel retail outlet ? a)Is it by companys name , b)ROs name c) by location

2.What are the top two services that you look for at a retail outlet? a) anytime availability of the fuel b) better and accurate machine to measure the fuel c) customer care services 3. What makes you a repeat customer at a fuel outlet? a) location of the RO b) services c) anytime availability of the fuel 4. Have you heard about XTRA CARE brand from Indian Oil? a) yes b) no 5. What are the various propositions of XTRACARE ?

6. Does a well done up clean RO with a bright visual appeal impact your decision to visit the RO? a) yes b) no

7 .Do you feel that electronic modern Dispensers gives you a better sense of satisfaction while receiving the product? a) yes b) no 8. Do you expect add on services like wind shield wiping, water check at fore court?

21

a) yes b) no 9. Does presence of electronic air gauges on both entry and exit gives you the extra convenience? a) yes b) no

10 .Have you ever used a restroom/toilet at the outlet? a) yes b)no 11.Are you aware that XTRACARE outlets are audited by an independent pendent agency regularly on quarterly basis? a) yes b ) no 12.Do you have requirement or preference for other non fuel needs like ATM, conv store, quick service restaurant? a) yes b) no

13.Do you ever notice the hoardings placed at the outlets? A) YES B) NO 14.Have you heard of other oil companies and any of their service brands? A)yes b) no 15.Do you travel extra distance for your fuel or it is the nearest RO that matters to you? a) nearest RO matter b) travel extra distance 16.Have you ever spoken about an XTRACARE RO of IOC to anyone? a)yes b) no 17.What in your opinion is the best way to create awareness about XTRACARE brand among customers like you and others? a) better advertisement at Retail outlet c)through special schemes Please also incorporate following: b )advertisement through media channel

1. 2.

Are you a part of any loyalty programme at an IndianOil Xtracare Retail Outlet: Yes/No. Do you share the experience of Xtracare RO with any one: Yes/No.

22

Methodology

The project was completed in three phases: The first phase involved literature review. The oil industry was studied in general. Later it involved getting acquainted with the company literature. The source of data about IOCL was its website, internet, articles and companys unpublished resources. Competitors study was also done using the internet and articles etc. Second phase involved the survey and observation study. The Xtracare Retail Outlets (ROs) in the city were visited. Survey was conducted over the customers of the RO. Also, observations were made to give ratings on the customer service level, infrastructure etc. in order to do the gap analysis.

Finally the third phase involved analyzing the results and coming up with the findings and recommendations. The report is thereafter concluded.

Data collection
The research involved both primary and secondary data collection. Primary Data is collected through survey of dealers and customers. The dealers of the Xtracare RO is visited to fill the questionnaire. Customers are surveyed from 1 Xtracare RO visited to do the survey. : Xtracare Retail Outlet:
Vinamra Khand-III, Gomti Nagar, Opposite Amity University Lucknow, Uttar Pradesh.

Secondary Data is collected through internet, magazines, newspaper and unpublished sources at the company.

23

Questionnaire development and pre-testing

The questioner was properly designed keeping in mind the requirement of the company and customer mind set so that each and every customer no matter what his/her qualification is could easily understand it. In this questioner special care is taken to ensure that the question are designed in such a way that the can draw proper information required from the respondent without taking much of his valuable time. There were both open end and close end questions in the questioner which made respondent to think for their questions and answer in a proper sprit. The questions were mostly objective base and some of them were subjective too, this arranger is done to reduce the time for the respondent so that he could answer correctly and without any irritation.

.Sampling Technique

Sampling is done to select a target audience for the purpose of determining the characteristic of the whole population. There are two basic approaches to sampling, i.e. - probability and non-probability. In my research i have used non-probability sampling which involves the selection of units based on factors other than random chances. Cluster sampling, Convenience sampling, quota sampling, judgment sampling and snowball sampling are few examples of non-probability sampling.

Sample Size Customers Surveyed : 50 The sample size taken for each RO constituted of 50 customers of varied age groups who came to the RO for taking petrol/diesel. The customers of an RO were surveyed twice a day i.e. once in the morning & on the same day in the evening on working days on the basis of two factors The type of vehicle o Small Cars o SUVs o Taxi o Bike o Scooter The category of customers
24

o The office going class o Labor class o Lady drivers o Truck drivers o Others

25

LITERATURE REVIEW
Indian Oils Xtracare Retail Outlets Indian Oil launched its Xtracare Retail Initiative in the year 2004 under a countrywide Retail transformation project named as Operation Everest. The concept of Xtracare was a result of a series of planning in retail design, product and service up gradation, capability training, automation, loyalty program and retail site management techniques, all benchmarked to global standards. These outlets are set against international standards of Quality & Quantity, housekeeping, maintenance and customer service certified by the globally renowned agency - M/s Bureau Veritas (BV). The transformation to Xtracare ROs was planned in two phases. In the Phase I 1028 ROs were taken and in Phase II the target was about 1800 ROs. Policies to be followed by an Xtracare RO dealer have been laid down by the company. Additional compensation is allocated for Xtracare Dealers considering that they have to make additional efforts and employ more manpower to deliver the benchmarked service. Incentives and disincentives have also been set for them in order to encourage them to maintain their Xtracare status and attract others to be part of the team. Following benefits are supposed to be provided to the customers at an Xtracare outlet: Highest level of Quality and Quantity assurance Benchmarked maintenance, housekeeping & customer service Fuel dispensing through Electronic Dispensing Units/MPDs Choice of regular and premium fuels Customer friendly ambience Loyalty rewards through corporations own program or joint program with banks/other alliance partners Non-fuel services
RO and TT Automation

26

DATA ANALYSIS
Q1 How do you identify a retail outlet?
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% a)Is it by companys name b)RO's name C)by location 1% 21% 78%

ANALYSIS: As per the survey, the customer recognizes the petrol pump as per the location, ,then comes the brand name which is important too and the last is the location of the pump because for the sake of satisfaction customer can travel anywhere irrespective to its location . During my interaction I came across customers saying location which is on our daily route is more important.

Q2 What are the top two services that you look for in a retail outlet?
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% A)Anytime Availability of B)better and Accurate C)Customercare Servies the fuel machine to Measure the fuel 21% 44% 35%

27

Analysis: Customers only comes for the sake of petrol for them all other facilities are not that important but among these air
filling is most liked by the people specially because of electronic air gauging because of that the find a sense of satisfaction. ATMs, Departmental stores are another least likely facilities people asked for because they dont have time and also space in an Extracare RO according to them they come for fuel (Q&Q and Services).Anytime availability of fuel is important but least considered by the customers.

Q3What make you a repeat customer at an retail outlet?

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% A)location of the RO 8%

83%

9%

B)Services

C)anytime availability of the fuel

ANALYSIS: Add-on service is the biggest factor to boost sale and to make customer repeat , anytime availibility is
the second then comes location factors customer is ready to travel extra distance for services. Some customer fill fuel from the pumps far away from their home even there are pumps near there hose just because the find quality in them.

Q4 Have you heard about the XTRACARE outlet of Indian oil?

28

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

84%

16%

A)yes

B)no

ANALYSIS: Customer have not heard about the XTRACARE brand of Indian oil and those who say they know they only
knows about XTRA PREMIUM and XTRA MILE and have no idea about what XTRA stands for

Q6 Do you have requirement or preference for other non fuel needs like ATM, conv store, quick service restaurant?
120% 100% 80% 60% 40% 20% 2% 0% A)yes B)no 98%

ANALYSIS: Customers have a great preference for the non fuel facilities.

Q6 Does a well done up clean RO with a bright visual appeal impact your decision to visit the RO?

29

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

92%

8%

A)yes

B)no

ANALYSIS: Everyone likes a clean RO with a bright visual appeal but difference is that some people care enough to
pay attention and some not.

Q8 Do you feel modern electronic dispenser gives you a better sense of satisfaction?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

95%

5% A)yes B)no

ANALYSIS: Customer gave positive response when it comes to electronic dispensers because it really gives them a
sense of satisfaction , dispensers make them feel that they are getting correct value of their money ,dealer or the attendant cannot cheat them. More safety features more people rely on it.

Q9.Does presence of electronic air gauges on both entry and exist gives you the extra convenience?
30

60% 50% 40% 30% 20% 10% 0% A)yes

56%

44%

B)no

ANALYSIS: Customer does not require two dispensers their only demand was that the dispensers should be
working consistently. Dispensers should be provided a regular attendant.

Q10.Have you ever used toilet/restroom at an outlet?

80% 70% 60% 50% 40% 30% 20% 10% 0%

75%

25%

A)yes

B)no

ANALYSIS: Most of the customers have used restroom specially 4 wheeler had found it cleaner then other retail
outlet.

Q11.Are you aware that XTRACARE outlets are audited by an independent patent agency regularly on quarterly basis?
31

70% 60% 50% 40% 30% 20% 10% 0%

63%

37%

A)yes

B)no

ANALYSIS: Majority of customers know about XRACARE brand of Indian oil therefore they know about audits, 37% people still unaware.

Q13.Do you ever noticed the hording placed at the outlet?

120% 100% 80% 60% 40% 20% 3% 0% A)yes B)no 97%

ANALYSIS: Nearly every customer had notice the hording when they enter into the retail outlet. Visually they also find it attractive.

Q14.Do you heard of any other oil companies and any other service brand?

32

80% 70% 60% 50% 40% 30% 20% 10% 0% A)yes 27%

73%

B)no

ANALYSIS: No most of the people have not heard about the service brand if they have heard dont know about them.

Q15.Do you travel extra distance or it is the nearest RO thats matters?

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% A)Nearest B)Extra 23% 77%

ANALYSIS: Yes for Q&Q customers are ready to travel extra distance and there are some who prefer convenience over quality. But over all customers are ready to travel extra distance for a good quality fuel.

33

Q17.Have you ever talked about an XTRACARE RO of IOCL to any one?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% A)yes B)no 14% 86%

ANALYSIS: No customers do not talk about their experiences with their friends and relatives, but it hardly impacts their decision making to visit a particular RO because any image formed in our mined is normally formed by the opinions of others and their experiences.

Q18.Are you a part of any loyalty program at an Indian oil XTRACARE outlet?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% A)yes 10%

90%

B)no

ANALYSIS: Loyalty program customers are mostly long distance truckers but they prefer to carry appropriate fuel for the journey in which they can return back so they dont required a fleet card.

34

Q19.Do you expect add on services like wind shield wiping, water check at fore court?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% A)yes B)no 14% 86%

ANALYSIS: Every expects little more, what he had paid for but this is more expected by car drivers not by bikers for obvious reasons, but customers expects for these services.

Q20. What in your opinion is the best way to create awareness about XTRACARE brand among customers like you and others?
80% 70% 60% 50% 40% 30% 20% 10% 10% 0% A)better advertisement B)advertisement through at retail outlet media Channel C)through special schemes 22% 68%

ANALYSIS:Customers feels that media channels had a greater impacts in their minds would create awareness about the Xtracare RO.

35

Q20. Do you share the experience of Xtracare RO with any one?

80% 70% 60% 50% 40% 30% 20% 10% 0% A)yes 28%

72%

B)no

Majority of dont talk about extra care therefore are not likely to share their experiences. I feel this would affect brand image because any image formed in our mind is normally formed by the opinions of others and their experiences.

36

Research Findings

37

Findings from Phase 1 Customers Survey

Quality and Quantity (Q&Q) remain to be the most valued thing at any retail outlet most of customers going for it. Customers patronize any petrol pump primarily on their perception of the Q&Q of that petrol pump.

The behavior of the pump attendants is also a deciding factor for customers. If the pump attendants are rude or are not courteous enough customers prefer not to visit that petrol pump. A large majority of customers said that behavior of the pump attendants was an important criterion for them to visit a petrol pump.

Generally customers have preference for one or two petrol pumps only. They seldom visit other petrol pumps. As convenience is an important factor for customers they mainly visit petrol pumps which are close to their home or are on way to their work or college. However Q&Q is also an important factor.

These findings can further be substantiated by the fact that the location and the reputation of the petrol pump in delivering accurate quantity and superior quality of fuel remain the most important factors for petrol pumps to generate their sales.

Thus company should specially focus on the ROs which are present on strategic locations. It should take utmost care of Q&Q and customer service level of these ROs as they are exposed to large amount of customers and thus will play a crucial role in the brand building of Indian Oil.

Indian Oil should also come up with other services at its ROs like that of convenience stores, pollution checking, auto spare parts, beverage shop etc.

38

Recommendations
The study shows that there exists a gap in the actual performance of the Xtracare ROs and the expected performance of the company. In order to reduce this gap and enhance its service level Indian Oil, primarily, needs to work upon its Human Resources. Firstly, appropriate training should be given to the pump attendants at the retail outlet. Training the pump attendants is most important as they act as an interface between the public and the company. They are the face of the company to its customers. The pump attendants generally are required to perform mundane jobs which lower their motivation level. Also the work pressure gets high as they have to stand all day long to serve the customers. In such circumstances it cannot be expected that the behavior of the pump attendants can be pleasant and courteous throughout the day. Specialized training programs should be designed by the company for the pump attendants teaching them how to deal with customers. They should be made to understand that in companys benefit lays their benefit. Giving customers an enhanced service experience would increase the loyalty of customers towards their petrol pump thus benefitting both them and company. The company should try to align their goals with that of the companys. Though the company does offer training to pump attendants, it is not regular. In Delhi the training given to the pump attendants was few years back. Thus these programs need to be held on a more regular basis. To increase the motivation level of the pump attendants they should be given incentives also. These can be both monetary and non monetary in nature.

Secondly the dealers also need to be given training and IOCL should work upon dealers perceptions upon developing a feeling of belongingness & loyalty towards the company. Their motivation level plays a key role in the sales of their RO. Maintaining highest level of Q&Q and customer service is very important in retaining the customers. These factors are directly controllable by the dealer. Hence the dealers should be motivated enough to keep a tight check on these activities. The company should also tightly monitor this by performing random checks and also penalizing the dealers for any sort of slack in the services.
39

Despite the Third Party Certification system being in place the ratings given by it often does not present a true picture of the actual performance. Hence the efficiency of the agency doing the certification should be properly looked into. In addition, random checks, to give the ratings, should be performed by the company officials also in order to cross verify the ratings given by the third party.

Indian Oil has not exploited its full potential in the non fuel business yet. Globally non-fuel business accounts for a substantial portion of petrol pumps margin. However, Indian Oils non-fuel revenue is meagre. Its total 60 petrol pumps all over India engage in non-fuel business. Considering its strong hold in Delhi, the company can explore this vast territory. During the customer survey also it was found that customers do demand many sorts of stores in a petrol pump. The insights gained by the customer survey can offer to be a preliminary research. The company can employ a research team to understand the consumer behaviour and identify the needs of a customer at a petrol pump in order to venture in the non-fuel retail segment in Delhi.

The company is planning to soon convert its remaining ROs to Xtracare. Once this is done and the service level improves, Indian Oil should go for increasing customer awareness (which is almost nil currently) about the Xtracare brand. This could be done by advertisements through television and print media. The awareness among the customers regarding Xtracare would give a further boost to Indian Oils brand image.

40

Limitations
The project had some obvious limitations: It was difficult to make customers at the petrol pump understand the questionnaire and fill it. They generally used to be in a hurry and hence did not like to stop to fill the questionnaire.

In checking their satisfaction level the customers often gave biased responses. It can be attributed to various factors. The psyche of the customers and his mood at that time could influence his responses. Also many a times customers did not give honest responses thinking that it might involve some action against the dealer.

Survey is conducted during the day time therefore heavy vehicle and loyal program(Fleet Card) customers are not been covered

Many services like that of the toilets and drinking water are not much availed by the customers in the urban area therefore rating on these parameters was difficult to get.

In measuring the customer service level by observation method it often so happened that the customer service level would improve in the presence of the observer than it was on routine days.

Lucknow is a big city and it is difficult to survey all the customers from every petrol pump of the city. The sample size for this research was small owing to limitations of time and cost.

41

Conclusion
The study shows that Indian Oil fairs considerably well in the implementation of its CRM policies. However certain gaps between the actual and expected performance do exist. Some of these gaps can be attributed to practical constraints where as some occur simply due to lack of interest of the dealer. For instance, in the area of behavior of the pump attendants, company expects them to greet the customers when they enter and be courteous to them. the Q&Q of the fuel. The mindset of the Indian consumers is not yet accustomed to trust or appreciate such behavior. Motivation is low therefore attendant behavior are not adequate .Cost would be incurred in terms of training the pump attendants to match the level of companys expectation. A training program can be devised for the dealers as well to raise their motivation level. The company can convey its expectation sin a manner in which it should try to align its goals with that of the dealer. Customers are able to associate factors like cleanliness, behavior of pump attendants, Q&Q etc. with the Indian Oil petrol pumps. In such cases their satisfaction level remains high irrespective of the housekeeping and service level of the RO.

42

References
Data Analysis, Factor Analysis, , chapter 20, p 584- 604 Annual Reports of IOCL Magazines Articles/Journals www.IOCL.com www.iocltech.com www.BP.com www.shell-me.com/english/apr2001/views.htm http://www.researchandmarkets.com/reportinfo.asp?report_id=3668 http://www.researchandmarkets.com/reportinfo.asp?report_id=35067 http://www.marketresearch.com/product/display.asp?productid=1378147&g=1 http://www.energy-business-review.com/research.asp?guid=rben0188&startpoint http://www.bharatpetroleum.com/images/corporate/BPCLAnnRep_06.pdf
www.petroleum.nic.in

43

44