IndianOil Corporation

Rajagiri College of Management and Applied Sciences
DECLARATION
I hereby declare that the Dissertation entitled A study to analyze the effectiveness of XTRAPOWER Fleet Card Loyalty Program in retention of customers in IndianOil Corporation Limited, with special reference to Cochin Office submitted in partial fulfillment of the requirements for the award of the Degree of Business Administration is a record of original research work done by me under the supervision & guidance of Mr. Sajoy P.B. and the Dissertation has not formed the basis for the award of any Degree/Diploma/ Associate ship / Fellowship or other similar title to any candidate of any university.
Place: Date: Audrey Martina Alex
ACKNOWLEDGEMENT No endeavor is complete without expressing the gratitude that is due for all those who have contributed in many ways to it. There are many individuals whom I wish to thank for helping me in the various stages of this research project from the conception to completion. At the outset, I would like to thank our principal Rev. Fr. John Therezath CMI for allowing me to do this project. I wish to take this opportunity to express my gratitude to Mr.Sajoy P B, my project guide for his interest and guidance in the successful completion of this project. I also express my thanks to Mr. P.K George, Head of Department, for his valuable guidance. I am also thankful to all the teachers for helping and guiding me to do the work successfully. My heartfelt thanks to Ms. Narshia Thomas, DY. Manager (Fleet Marketing), Cochin Divisional Office, for giving me an opportunity to do the project at INDIANOIL CORPORATION LTD., and for her valuable ideas that helped me to complete this project in a successful manner. This work would not have been complete without the participation of the respondents who were patient enough to spend some time for me. Last but not the least, I express my heartfelt thanks to my parents, sisters and friends for providing me their help and support.
LIST OF TABLES S. No 1. 2. 3. Table No. 3.1 3.2 3.3 TITLE Showing if the respondent is a single user/multi user. Showing the number of vehicles owned by the respondents. Showing the number of respondents who are aware of the XTRAPOWER Fleet Card Loyalty Program. Showing the number of respondents who are members of the XTRAPOWER Fleet Card Loyalty Program. Showing how respondents came to know about the XTRAPOWER Fleet Card Loyalty Program. Showing fuelling. how respondents rate Cashless Pg No. 41 42 43
4.
3.4
44
5.
3.5
45
6.
3.6
46
7.
3.7
Showing how respondents rate the Reward points and consequent redemption of points for free diesel. Showing how respondents rate the redemption of Reward points for gift items. Showing how respondents rate the Insurance coverage provided. Showing how respondents rate the 15% discount availed on the purchase of JK Tyres. Showing how respondents rate the Prepaid options provided. Showing how respondents rate the Credit options provided.
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8. 9. 10. 11. 12.
3.8 3.9 3.10 3.11 3.12
48 49 50 51 52
13.
3.13
Showing how respondents rate the Real Time Gross Settlement mode of payment through HDFC Bank. Showing how respondents rate the facility of Cash deposit at the retail outlets. Showing how respondents rate the receipt of monthly statement of diesel consumption for the vehicles Showing how respondents CONVENIENCE provided XTRAPOWER Fleet Card. rate by the the
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14. 15.
3.14 3.15
54 55
16.
3.16
56
17.
3.17
Showing how respondents rate the SECURITY provided by the XTRAPOWER Fleet Card. Showing how respondents rate the EASE OF USAGE of XTRAPOWER Fleet Card. Showing how respondents rate the CONTROL provided by the XTRAPOWER Fleet Card. Showing how respondents rate the REWARDS provided by the XTRAPOWER Fleet Card. Showing how respondents rate the services provided at the petrol bunk. Showing how respondents rate the time taken for swiping the cards by the operators at the petrol bunk. Showing how respondents rate the XTRAPOWER Fleet Card when compared to other competitors Loyalty Programs. Showing how respondents rate the overall experience with the XTRAPOWER Fleet Card Loyalty Program.
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18. 19.
3.18 3.19
58 59
20.
3.20
60
21. 22.
3.21 3.22
61 62
23.
3.23
63
24.
3.24
64
LIST OF FIGURES S No. 1. 2. 3. Figure No. 3.1 3.2 3.3 TITLE Showing if the respondent is a single user/multi user. Showing the number of vehicles owned by the respondents. Showing the number of respondents who are aware of the XTRAPOWER Fleet Card Loyalty Program. Showing the number of respondents who are members of the XTRAPOWER Fleet Card Loyalty Program. Showing how respondents came to know about the XTRAPOWER Fleet Card Loyalty Program. Showing fuelling. how respondents rate Cashless Pg No. 41 42 43
4.
3.4
44
5.
3.5
45
6. 7.
3.6 3.7
46 47
Showing how respondents rate the Reward points and consequent redemption of points for free diesel. Showing how respondents rate the redemption of Reward points for gift items. Showing how respondents rate the Insurance coverage provided. Showing how respondents rate the 15% discount availed on the purchase of JK Tyres. Showing how respondents rate the Prepaid options provided. Showing how respondents rate the Credit options provided. Showing how respondents rate the Real Time
8. 9. 10. 11. 12.
3.8 3.9 3.10 3.11 3.12
48 49 50 51 52
13.
3.13
53 5
Rajagiri College of Management and Applied Sciences Gross Settlement mode of payment through HDFC Bank. 14. 15. 3.14 3.15 Showing how respondents rate the facility of Cash deposit at the retail outlets. Showing how respondents rate the receipt of monthly statement of diesel consumption for the vehicles Showing how respondents CONVENIENCE provided XTRAPOWER Fleet Card. rate by the the 54 55
16.
3.16
56
17.
3.17
Showing how respondents rate the SECURITY provided by the XTRAPOWER Fleet Card. Showing how respondents rate the EASE OF USAGE of XTRAPOWER Fleet Card. Showing how respondents rate the CONTROL provided by the XTRAPOWER Fleet Card. Showing how respondents rate the REWARDS provided by the XTRAPOWER Fleet Card. Showing how respondents rate the services provided at the petrol bunk. Showing how respondents rate the time taken for swiping the cards by the operators at the petrol bunk. Showing how respondents rate the XTRAPOWER Fleet Card when compared to other competitors Loyalty Programs. Showing how respondents rate the overall experience with the XTRAPOWER Fleet Card Loyalty Program.
57
18. 19.
3.18 3.19
58 59
20.
3.20
60
21. 22.
3.21 3.22
61 62
23.
3.23
63
24.
3.24
64
PART I ORGANISATIONAL STUDY
CHAPTER 1 INDUSTRIAL PROFILE
INDUSTRY PROFILE: Petroleum Industry is considered to be the backbone of an economy because this is the main source of energy till date. Any economy around the world would fail to proceed a single step in the absence of Petroleum Industry. The petroleum industry involves the refining of crude petroleum and the processing of natural gas into a multitude of products, as well as the distribution and marketing of petroleum derived products. The price of petroleum is determined by the demand-supply mechanism around the globe. Petroleum is not a domestic product and any kind of shortage in the same has serious ramifications on all possible industries along with the economies all over the world. Petroleum Industry always need to perform exploration research all over the world for finding more petroleum sites which also become instrumental in the setting up of Petroleum Industry. The petroleum industry includes the global processes of exploration, extraction, refining, transporting (often by oil tankers and pipelines) and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides and plastics. The industry is divided into three major components: upstream, midstream, downstream. Midstream operations are usually included in the downstream category. Petroleum is vital to many industries and is of importance to the maintenance of industrial civilization itself, and thus is a critical concern for many nations. Oil accounts for a large percentage of the worlds energy consumption, ranging from a low of 32% for Europe and Asia and up to a high of 53% for Middle East. HISTORY OF PETROLEUM INDUSTRY: Various theories have been advanced over the years as to the origin of petroleum proposing an animal, vegetable, mineral and even meteoric origin. Today however, most scientists believe that oil and gas originated in plant and animal matter that accumulated in fine grained sediments at the bottom of ancient seas many millions of years ago. This theory suggests that oil originated as the remains of countless organisms that either lived
Rajagiri College of Management and Applied Sciences in the sea or were deposited there with mud and silt from prehistoric rivers and streams. The remains of these ancient plants and animals were transformed into oil and gas by bacterial action with heat and pressure resulting from deep burial beneath other sediments. THE FIRST OIL WELLS: For thousands of years, the only sources of petroleum had been surface seeps or tar pits. These sources were not very productive, so certain individuals decided to look for oil underground by drilling. In 1858, one such individual, a 39 year old carriage maker from Hamilton, Ontario, named James Miller Williams made the first major commercial oil discovery in North America at Oil Springs, Ontario. Drilling in gum beds in Lambton County, 25km southeast of Sarnia, he struck oil at a depth of only 18 meters. William refined the oil he produced and sold the product as lamp oil. In the following year, Colonel Edwin L. Drake discovered oil in Titusville, Pennsylvania by drilling to 21 meters. This discovery signalled the birth of the modern petroleum industry in the United States. The Oil Boom begins As a result of the oil discoveries of the 1850s, numerous refineries were built to turn crude oil into kerosene for lamps and into lubricating oils for the machines of the industrial revolution. Oil began to replace coal as the fuel for steam engines. INDIAN PETROLEUM INDUSTRY: Indian Petroleum Industry started its journey during the fiscal year 1890 in the north eastern provinces of India especially in the place called Digboi. The production of petroleum along with the exploration of new sites was primarily restricted to northeastern India up to the 1970s. But the scenario changed drastically with the discovery of Bombay High. Indian Petroleum Industry was entirely state sponsored and was under the management control of all the industries involved in it were entirely with the government. After the inception of the Liberalization-Privatization-Globalization (L-P-G) policy in the month of July, 1991, the government had started allowing the Indian Petroleum Industry to go into private as well as government-private joint ventures. The deregulation
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Rajagiri College of Management and Applied Sciences process in the Indian Petroleum Industry got a boost in the year 1997 when it was decided that the process of liberalization and deregulation would be accelerated in this industry and all the regulations would go away from the month of April in the year 2002. Along with globalization, the rate of growth of the economy along with the rate of growth of energy consumption increased at the rate of six percent on an yearly basis especially between the period 1991 and 2001. The demand for petroleum products increased at an annual rate of 5.5% during 1990-91and 2000-01 which is more than that of the production rate of crude oil processing. But the Indian petroleum industry stumbled a bit in the year 2001 when the Indian economy observed a slowdown in its economic rate along with the overall industrial output. Impediments related to infrastructure all came up as serious problems in the path of Indian petroleum industry. MINISTRY OF PETROLEUM AND NATURAL GAS (INDIA) The Ministry of Petroleum and Natural Gas (MOP & NG) is a ministry of the Government of India. It is responsible for the exploration, production, refining, distribution, marketing, import, export and conservation of petroleum, natural gas, petroleum products and liquefied natural gas in India. The ministry is headed by the cabinet minister Jaipal Reddy. Ratanjit Pratap Narain Singh, the MP from Padrauna assembly segment of Kushi Nagar in Uttar Pradesh is the Minister of State in the Ministry of Petroleum and Natural Gas. FUNCTIONS OF THE MINISTRY 1. Exploration and exploitation of petroleum resources, including natural gas. 2. Production, supply distribution, marketing and pricing of petroleum including natural gas and petroleum products. 3. Oil refineries, including Lube plants. 4. Additives for petroleum and petroleum products. 5. Lube blending and greases. 6. Planning, development and control of, and assistance to all industries dealt with by the Ministry. 7. All attached or subordinate offices or other organisations concerned with any of the subject specified in this list. 8. Planning, development and regulation of oilfield services.
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Rajagiri College of Management and Applied Sciences 9. Public sector projects failing under the subjects included in this list. 10. Engineers India limited and IBP Company together with its subsidiaries, except such projects as are specifically allotted to any other Ministry/Dept. 11. Administration of various Central laws relating to Petroleum and Natural Gas. PRICING POLICY IN INDIA The crude oil prices have finally touched $100 per barrel a psychological barrier and a statistical insanity. The composition of Indian crude basket represents average of Oman & Dubai for sour grades and Brent (dated) for sweet grade in the ratio of 59.8:40.2 since April 2006. The Indian crude basket has touched a high of over $92 in the new year, but is yet to hit the three-figure mark. India imports about 76 per cent of its crude oil requirements which amounts to an oil import bill of around $50 billion every year. Indias crude oil import bill rose by 3.48% in rupee terms and 16.67% in dollar terms during the first half of the current fiscal year. The appreciation in rupee value by 12.3% this year, the most since at least 1974, has helped partially offset the sharp rise in global oil prices. As per the Government, every one rupee appreciation in the exchange rate of Indian rupee against US dollar will help reduction in the net oil import bill by around Rs 3950 crore. It should help that the rupee is forecast to advance 3.4 percent next year to 38 per dollar by the end of December. At current rates, petroleum has an under recovery of nearly Rs 9.5 per litre, diesel Rs 11.3 per litre, LPG Rs 380 per cylinder, and kerosene Rs 21 per litre. However, Indian Express estimates the loss to marketing companies for petrol at Rs 8.74 a litre, diesel at Rs 9.92 per litre, kerosene Rs 20.53 a litre and LPG at Rs 256.35 per cylinder.As per the government policy of 2003, the subsidy component by the government has remained constant since 2004-05 at Rs 22.58 per per LPG cylinder and Rs 0.82 per litre of kerosene. The balance subsid provided by the marketing companies from their own pockets 2007 have been Rs13814 crores on kerosene and LPG, and Rs 12549 crore on petrol and diesel. If current price trends hold, the under-recoveries to the marketing companies are estimated to be around Rs 70,000 crore this financial year around o.75% of Indias GDP. This has to be shared between the three marketing companies, the upstream companies ONGC, Oil India and GAIL and the government. Domestic pricing continues to be a politically sensitive topic, with a broad consensus across the political spectrum to stall any upward revision of prices. There is a Group of 12
Rajagiri College of Management and Applied Sciences ministers, to suggest an alternative model for pricing of domestic products. As with the Indo-US nuclear deal, the left and the right are both opposed to any hike in prices of domestic petroleum products. The government is also worried about the inflationary impact of higher domestic prices of petroleum products. A cut in the customs duty on the crude oil and in the excise duty in petrol and diesel by the government is likely to keep the prices suppressed for some more time. The subsidies, whether direct and transparent by the government or indirect as in tax cuts, oil bonds and compensation by government owned upstream companies, are a drain on the resources of the government. The losses to the exchequer can only be reduced when the consumer pays the right price for the product.
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CHAPTER 2 ORGANISATIONAL PROFILE
COMPANY PROFILE: 14
INTRODUCTION: IndianOil Corporation Limited: IndianOil Corporation Limited, or Indian Oil , ( BSE : 530965, NSE : IOC ) is an Indian state-owned oil and gas corporation with its headquarters in Mumbai , India. It is Indias largest commercial enterprise, ranked 98th on the Fortune Global 500 list for 2011. IndianOil and its subsidiaries account for a 47% share in the petroleum products market, 34% share in refining capacity and 67% downstream sector pipelines capacity in India. The Indian Oil Group of Companies owns and operates 10 of India's 21 refineries with a combined refining capacity of 65.7 million metric tons per year. President of India owns 78.92% (191.62 crore shares) in the company. In FY'11 IOCL sold 64.1 million tonnes of petroleum products and reported a PBT of Rs.9096 crores, & Government of India earned an excise duty of Rs.25789.90 crores and tax of Rs.1650 crores. IndianOil operates the largest and the widest network of fuel stations in the country, numbering about 19,463 (15,946 regular ROs & 3,517 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over 62.4 million households through a network of 5,456 Indian distributors. In addition, IndianOil's Research and Development Center (R&D) at Faridabad supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad.
HISTORY OF INDIANOIL CORPORATION LIMITED: IndianOil owes its origins to the Indian government's conflicts with foreign-owned oil companies in the period immediately following India's independence in 1947. The leaders of the newly independent state found that much of the country's oil industry was effectively in the hands of a private monopoly led by a combination of British-owned oil companies Burmah and Shell and U.S. companies Standard-Vacuum and Caltex. In September 1964, two companies namely Indian Refineries Ltd. and the IndianOil Company which were formed in the late 1950s were merged to form the IndianOil Corporation. The government announced that all future refinery partnerships would be 15
Rajagiri College of Management and Applied Sciences required to sell their products through IndianOil. It was widely expected that IndianOil and India's Oil and Natural Gas Commission (ONGC) would eventually be merged into a single state monopoly company. Both companies grew vastly in size and sales volume but, despite close links, they remained separate. ONGC retained control of most of the country's exploration and production capacity. IndianOil remained responsible for refining and marketing. During this same decade, India found that rapid industrialization meant a large fuel bill, which was a steady drain on foreign exchange. To meet the crisis, the government prohibited imported petroleum and petroleum product imports by private companies. In effect, IndianOil was given a monopoly on oil imports. The government decided to nationalize the country's refineries. The Burmah-Shell refinery at Bombay and the Caltex refinery at Vizagapatnam were taken over in 1976. The Burmah-Shell refinery became the main asset of a new state company, Bharat Petroleum Ltd. Caltex Oil Refining (India) Ltd. was amalgamated with another state company, Hindustan Petroleum Corporation Ltd., in March 1978. Hindustan had become fully Indian-owned on October 1, 1976, when Esso's 26 percent share was bought out. On October 14, 1981, Burmah Oil's remaining interests in the Assam Oil Company were nationalized, and IndianOil took over its refining and marketing activities. Half of India's 12 refineries belonged to IndianOil. The other half belonged to other state-owned companies. By the end of the 1980s, India's oil consumption continued to grow at eight percent per year, and IndianOil expanded its capacity to about 150 million barrels of crude per annum. In 1989, IndianOil announced plans to build a new refinery at Pradip and modernize the Digboi refinery, India's oldest. However, the government's Public Investment Board refused to approve a 120,000 barrels-per-day refinery at Daitari in Orissa because it feared future over-capacity. By the early 1990s, IndianOil refined, produced, and transported petroleum products throughout India. IndianOil produced crude oil, base oil, formula products, lubricants, greases, and other petroleum products. It was organized into three divisions. The refineries and pipelines division had six refineries, located at Guwahati, Barauni, Gujarat, Haldia, Mathura, and Digboi. That changed in April 2002, however, when the Indian government deregulated its petroleum industry and ended IndianOil's monopoly
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Rajagiri College of Management and Applied Sciences on crude oil imports. The firm owns and operates seven of the 17 refineries in India, controlling nearly 40 percent of the country's refining capacity.
VALUES: IndianOil nurtures the core values of Care, Innovation, Passion and Trust across the organisation in order to deliver value to its stakeholders. Care stands for Concern Empathy Understanding Co- operation Empowerment Innovation stands for Creativity Ability to learn Flexibility Change Passion stands for Commitment Dedication Pride Inspiration Ownership Zeal & Zest Trust stands for Delivered promises Reliability Dependability
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Rajagiri College of Management and Applied Sciences Integrity Truthfulness Transparency
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OBJECTIVES: 1. To serve the national interests in oil and related sectors in accordance and consistent with Government policies. 2. To ensure maintenance of continous and smooth supply of petroleum products by way of crude oil refining, transportation and marketing activities and to provide appropriate assistance to customers to conserve and use petroleum products efficiently. 3. To enhance the Companys self sufficiency in crude oil refining and build expertise in laying of crude oil and petroleum product pipelines. 4. To create a strong research & development base in refinery processes, product formulations, pipeline transportation and alternative fuels with a view to minimizing/eliminating and to have next generation products. 5. To optimize utilization of refining capacityand maximize distillate yield and gross refining margin. 6. To minimize fuel consumption and hydrocarbon loss in refineries and stock loss in marketing operations to effect energy conservation. 7. To earn a reasonable rate of return on investment. 8. To avail of all viable opportunities, both national and global arising out of the Government of Indias policy of liberalisation and reforms. 9. To achieve higher growth through mergers, acquistions, integrations and diversification by harnessing new business opportunities in oil exploration & production, petrochemicals, natural gas and downstream opportunities overseas. 10. To inculcate strong core values among the employees and continously update skill sets for full exploitation of the new business opportunities. 11. To develop operational synergies with subsidiaries and joint ventures and continuously engage across the society at large. hydrocarbon value chain for the benefit of the
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ORGANISATION CHART: IndianOil Corporation
Cochin Divisional Office Senior Divisional Retail Sales Manager
Manager Retail Sales
Dy. Manager Finance
Dy. Manager Fleet Marketing
Manager (Engg)
Two field Officers
Two field Officers
Two field Officers
Assistant
Assistant
Dy. Manager (Engg)
Secretary
Assistant
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GROUP COMPANIES: IndianOil is currently metamorphosing from a pure sectoral company with dominance in downstream in India to a vertically integrated, transactional energy behemoth. The Corporation is already on the way to becoming a major player in petrochemicals by integrating its core refining business with petrochemical activities, besides making large investments in E&P and import/marketing ventures for oil & gas in India and abroad. Lanka IOC PLC IndianOil (Mauritius) Ltd. IOC iddleEastFZE
Chennai Petroleum Corporation Ltd. (CPCL)
IndianOil CREDA Biofuels Limited
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PRODUCT PROFILE: Petrol/Gasoline: Automated gasoline and gasoline-oxygenate blends are used in internal combustion spark ignition engines. These spark ignition engine fuels are primarily used in passenger cars, off-highway utility vans, farm machinery and in other spark ignition engines. Crude Oil: It is a remarkably varied substance, both in its use and composition .It is formed from the preserved remains of prehistoric zooplankton and algae, which have been settled to the sea bottom in large quantities under anoxic conditions. Diesel/Gas oil: It is used in cars, motorcycles, boats, and locomotives. Automotive diesel fuel serves to power trains, buses, trucks and automobiles, to run construction, petroleum drilling and other off-road equipment and to be the prime mover in a wide range of power generation and pumping applications. Indane Gas: Indane is today one of the largest packed LPG brands in the world and has been conferred the coveted Consumer Superbrand status by the Superbrands Council of India. Indane is today an ideal fuel for modern kitchens, synonymous with safety, reliability and convenience. Natural Gas: Natural Gas has emerged as the fuel of choice across the world. It is steadily replacing traditional fossil fuels due to its environment friendly characteristics which help in meeting the stipulated automobile emission norms. SERVO Lubricants and Greases: IndianOils SERVO is the brand leader among lubricants and greases in India. With over 500 commercial grades and 1500 formulations encompassing literally every conceivable application, SERVO serves as a one-stop shop for complete lubrication solutions in the automotive, industrial and marine segments.
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Rajagiri College of Management and Applied Sciences Bitumen: It is a common binder used in road construction. It is principally obtained as a residual product in petroleum refineries after higher fractions like gas, petrol, kerosene and diesel etc. are removed.
LOYALTY PROGRAM:
XTRAPOWER Fleet Card Program
INTRODUCTION: Presenting the IndianOil XTRAPOWER Fleet Card Program A complete fleet management solution for Fleet Owners/Operators and Corporates. XTRAPOWER is a Smart Card based Fleet Card Program, which facilitates cashless purchase of fuel and lubes from designated retail outlets of IndianOil through flexible prepaid and credit facilities. Benefits of XTRAPOWER Fleet Card Program: Payment convenience - Both prepaid and credit options. Detailed fleet management reports (Monthly statements) Facility to track each vehicle. Personal Accident Insurance coverage and Medi-claim for fleet owner, driver, co-driver and helper. 24
Rajagiri College of Management and Applied Sciences Attractive rewards on purchase of fuel & lubricants through the card. Opportunity for earning additional rewards on purchase of JK Tyres and Exide Batteries.
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PART II RESEARCH PROJECT
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CHAPTER 1 THEORETICAL FRAMEWORK
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REVIEW OF LITERATURE THE ROLE OF SERVICE AND SALES SKILLS IN CUSTOMER RETENTION Prepared by: Joan B. Krawitz Improving Customer Retention Rates through Direct Intervention The significance of customer retention was first quantified by Reichheld and Sasser (1990). They found that profits in service industries, including credit card companies, increased in direct proportion to the length of a customers relationship. They noted the experience of MBNA American, citing its customer defection swat team staffed by some of the companys best telemarketers, which achieved a 50% success rate in persuading customers to retain their credit cards. At MBNA, a 5% improvement in customer retention increased average customer value by 125%. Reichheld and Sasser (1990) concluded that cutting defections in half could more than double the growth rate of the average company. Everett (1993) noted that a dedicated customer retention unit developed by Patrick J. Swanick at the Society National Bank in Cleveland , achieved a 57% success rate in persuading callers to remain with the bank. According to Everett (1993), these representatives first probed for causes, then tried to resolve the problem. He added that they followed up on each call with a letter to the customer. THE LINK BETWEEN CUSTOMER SATISFACTION AND CUSTOMER RETENTION Many authors (Reichheld and Kenny, 1990; Zeithaml, et.al., 1990; Bowen and Lawler, 1990; Schlesinger and Heskett, 1991) have cited the relationship between customer retention and the quality of service experienced by the customer.
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Rajagiri College of Management and Applied Sciences Reichheld and Kenny (1990) specified six factors as imperative to improving retention: senior management commitment; a customer-focussed culture in which all employees and managers focused their full attention customer satisfaction; retention information systems that tracked and analyzed the root causes of defections; empowerment of front line employees to take actions that provided immediate customer satisfaction; continuous training and development; and incentive systems based on customer retention. Parasuraman, et.al (1984) studied quality in four service businesses, including credit card services, and developed a model of service quality. The noted that: A variety of factors, including resource constraints, management perceptions of consumer expectations and the firms service quality specifications will affect service quality from the consumers viewpoint. (Parasuraman, et.al., 1984) Parasuraman, et.al (1984) identified a set of discrepancies or gaps between how executives perceive the quality of the service they provide and the tasks associated with delivering those services to customers. They found that the customers perception of service quality depends upon the size and direction of the gap between the service the customer expects to receive and what he or she perceives to have been received. FACTORS INFLUENCING CUSTOMER RETENTION Looking in more detail at the major factors that influence customer retention - not only to retailers but also to suppliers in all sectors, including business to business (B2B) - the six key areas of focus can be summarised as follows: 1. Core offering The companies that boast the highest levels of fiercely loyal customers have built that loyalty not on card programmes or gimmicks, but on a solid, dependable, core offering that appeals to their customers. These companies have focused intently on what they know appeals to the type of customers they want to attract, and have determinedly concentrated on delivering what is expected every time. North American retailer, Nordstrom, is well known for the loyalty of its customers. It built this loyalty by 29
Rajagiri College of Management and Applied Sciences understanding what its customers wanted and then empowering its employees to deliver those needs consistently. Elements of the core offering that have a large role in building customer loyalty include: Location and premises Location and premises clearly play a part in engendering loyalty. The Three L's of retail - "location, location and location" - are undoubtedly important, and attractive and functional premises are equally so. Service Whether selling services or products, the level of service perceived by the customer is generally key to generating loyalty. It can be argued that some customers buy only on price, so all that is necessary to retain their loyalty is consistently low prices. To certain extent that is true. But in most cases, any loyalty shown will be only to the prices instead of the business. Should a competitor offer even lower prices, those customers are likely to defect. Companies that have adopted a policy of everyday low prices (EDLP) can be more vulnerable to competition than those who have built their customers' loyalty on superior products or service. The Product or Service The products or services offered must be what customers want. The days when businesses could decide what they wanted to sell or supply, and customers would buy it, are long past. The customers' needs and wants are now paramount. If you don't meet them, someone else will. 2. Satisfaction Clearly, satisfaction is important; indeed essential. But, taken in isolation, the level of satisfaction is not a good measure of retention. Many auto manufacturers claim satisfaction levels higher than 90%, yet few have repurchase levels of even half that. The situation is stacked against the business: if customer satisfaction levels are low, there will be very little retention. However, customer satisfaction levels can be quite high without a corresponding level of retention. Customers have come to expect satisfaction as part and 30
Rajagiri College of Management and Applied Sciences parcel of the general deal, and the fact that they are satisfied doesn't prevent them from defecting in droves to a competitor who offers something extra. 3. Elasticity level Elasticity expresses the weight of a purchasing decision- effectively the level of involvement or indifference. This applies to the customer and the business. Involvement The customer's involvement in the category is important: the more important your product or service is to the customer, the more trouble they have probably taken in their decision to do business with you, and the more likely they are to stick with what they have decided. Most customers would be highly involved in the category when choosing a new car, a new jacket, or a bottle of wine. However, when choosing a new pair of shoelaces, involvement is not usually high. Businesses dealing in commoditised products and services cannot expect high involvement and need to earn loyalty in other ways. Ambivalence The customer's level of ambivalence is also important. Few decisions are clear cut. There are usually advantages and disadvantages to be balanced, and vacillation is unstable. Again, we see that the more commoditised a product or service, the more difficult it is to cultivate loyalty. It is only when points of differentiation are introduced that the customer has a valid reason for consistently preferring one particular supplier. 4. The Marketplace The marketplace is a key factor in the development of loyalty. The elements closely involved are:
Opportunity to switch
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Rajagiri College of Management and Applied Sciences If the number of competing suppliers is high and little effort is required to switch, switching is clearly more likely. Conversely, the more time and effort invested in the relationship, the more unlikely switching becomes. The level and quality of competition has a significant effect on how easy it is for a customer to switch from any one particular supplier. When competitors are offering very similar products at similar prices, with similar levels of service, some means of useful differentiation has to be found in order to give customers a reason to be loyal. Inertia Loyalty This is the opposite of ease of switching. Most banks enjoy a high level of inertia loyalty simply because it's often so difficult and time-consuming to change to a new bank and transfer direct debits and standing orders. 5. Demographics According to Jan Hofmeyr and Butch Rice, developers of The Conversion Model (which enables users to segment customers not only by their commitment to staying with a brand but also to segment non-users by their openness to switching to the brand), more affluent and better educated customers are less likely to be committed to a specific brand. They say that the commitment of less affluent consumers to the brands they use is often unusually strong - possibly because they cannot afford to take the risk of trying a brand that might not suit them as well. They also suggest that younger consumers are less committed to brands than older consumers. Interestingly, these differences carry over into cultural groups as well: they find that French-speaking Canadians are more likely to be committed to a brand than Englishspeaking Canadians, and Afrikaans-speaking South Africans are more likely to be committed than English-speaking South Africans. In their excellent book, CommitmentLed Marketing, they show how commitment norms for the most frequently used brand of beer vary from country to country. At the two extremes we see both Australia and the UK (58%) and South Africa at 83% - a considerable difference.
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Rajagiri College of Management and Applied Sciences CUSTOMER RETENTION STRATEGIES 1. Welcome the complaints received: The starting point for customer retention techniques is understand why existing customers are lost. Most lost customers do not actually complain, and just simply walk away. Analyze those complaints received for trends in why customer loyalty is lost and then make appropriate changes. Use appropriately customer satisfaction survey questions to prompt customers for product & improved service ideas. 2. Instigate loyalty programs: Provide frequent customers with money-off coupons or other loyalty programs as part of a simple customer retention strategy. The company will benefit from plenty of repeat purchases and the customers will spread the good word about the benefits of purchasing from the company. Use online business systems to track and monitor the conversion rates of these individual loyalty schemes. 3. Sending out questionnaires and surveys to existing customers: All the best customer retention strategies require constant feedback from the customer to establish what is working and what is not working. Surveys, questionnaires and customer loyalty research are the perfect way of doing this. Incorporate special offers or gifts to encourage responses. 4. Check for repeat sales often to instil your companys brand: Existing customer base will be more loyal as they make more purchases. Improve sales performance by providing newsletters and regular communications to make sure they are informed of new product lines, offers, related products, etc. 5. Reactivate dormant customers: Customers that purchased from a company previously are more likely to come back and purchase more (just so long as they were not displeased by the service). Try contacting customers who have not come back in a while to see if any of the current offers would interest them. Basic customer service training tips always state that holding onto existing customers is much easier than gaining new ones. 6. Schedule a frequent communication plan to the customer base: The Companys communications are fundamental to any customer retention techniques. However, it has to be planned out. Create a strategy for how often you want to contact existing customers and decide upon what communication type should be used (e.g. e-mail, newsletters, etc.). 33
7. Provide exceptional customer service: This one is easy! The better the service provided, the more customers are going to be retained, and the more loyal they will be. For online systems make sure there are enough customer service operatives and server performance monitoring tools to ensure customers have rapid access to the companys website and customer support teams. 8. Make a good first impression: The simplest customer retention strategy that can be implemented straightaway is to make sure that the first contact made with customers is positive, easy and courteous. This applies whether you are selling online, face-toface or door-to-door. 9. Make courtesy top priority with all customer-facing staff: Customers will be lost rapidly if the staff are not courteous. Instigate training programs for all customer service staff in good communications, active listening and attentiveness to customer satisfaction. Make it part of their annual performance review too by using different types of performance appraisal methods. These customer retention strategies do cost money but pay off big-time with the amount of repeat purchases received. A side benefit is that more staff is likely to enjoy their roles and be more professional and polite even with their own colleagues. 10. Do regular reviews: Regular reviews are to be done on a scheduled basis to establish if complaint rates are dropping, what the nature of complaints are, customer satisfaction levels (i.e. from questionnaires) etc. Always be looking to improve the level of satisfaction the customer is receiving.
LOYALTY PROGRAMS: Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behaviour which is potentially beneficial to the firm. In marketing generally and in retailing more specifically, a loyalty card, rewards card, points card, advantage card, or club card is a plastic or paper card, visually similar to a credit card or debit card, that identifies the card holder as a member in a loyalty program. Loyalty cards are a system of the loyalty business model. In the United Kingdom it is typically called a loyalty card, in Canada a rewards card or a points card, and in the United States either a discount card, a club card or a rewards card. Cards typically have
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Rajagiri College of Management and Applied Sciences a barcode or magstripe that can be easily scanned, and some are even chip cards. Small key ring cards (also known as key tags) which serve as key fobs are often used for convenience in carrying and ease of access. By presenting the card, the purchaser is typically entitled to either a discount on the current purchase, or an allotment of points that can be used for future purchases. Hence, the card is the visible means of implementing a type of what economists call a two-part tariff. BENEFITS OF LOYALTY PROGRAMS 1. Identification of customers (enabling deeper relationship marketing) 2. Reason for more contact with customer. 3. Identification of Customer Behaviour who buys what, when, where how much, how etc. plus identification of trends. 4. Customer Tie-In 5. Increased sales volume / turnover. 6. Cross Marketing Opportunities (e.g. Financial Services). 7. Customer Satisfaction. 8. Word of Mouth if it is a good deal. 9. Differentiation more appropriate to those who want it. 10. May hide real prices & therefore enable higher prices. 11. Perhaps new customers. 12. Possibility to sell customer data (in certain circumstances).
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CHAPTER 2 RESEARCH METHODOLOGY AND RESEARCH DESIGN
TITLE OF THE STUDY:
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Rajagiri College of Management and Applied Sciences A study to analyse the effectiveness of XTRAPOWER Fleet Card Loyalty Program in retention of customers of IndianOil Corporation Ltd., with special reference to Cochin Office. INTRODUCTION: IndianOil Corporation Ltd., (IOCL) was formed in 1964 as the result of merger of IndianOil Corporation Ltd. and Indian Refineries Ltd. IOCL is the 21st largest petroleum company in the world and the ace petroleum trading company among the national oil companies in the Asia- Pacific region. IndianOil Corporation is a group of companies and includes Lanka IOC Ltd., IndianOil (Mauritius) Ltd., IBP Co. Ltd., CPCL, BRPL and IndianOil Technologies Ltd. The study focuses on the retention of the customers of IOC. Customer Retention is the activity that a selling organisation undertakes in order to reduce customer defections. Successful retention starts with the first contact an organisation has with a customer and continues throughout the lifetime of the relationship. Thus it is necessary to maintain good customer relations for the effective retention of customers. STATEMENT OF THE PROBLEM: IndianOil XTRAPOWER Fleet Card Loyalty Program is a Smart Card based Fleet Card Program, which facilitates cashless purchase of fuel and lubes from designated outlets of IndianOil through flexible prepaid and credit facilities. The study focuses on analysing the effectiveness of this XTRAPOWER Fleet Card Loyalty Program in retaining its customers in the company. SIGNIFICANCE OF THE STUDY: 1. To study the variety of benefits offered by the program. 2. To study if the customers are satisfied over the various features and benefits offered by the XTRAPOWER Fleet Card Loyalty Program. 3. The study would help the company to modify or create new benefits for its existing and new customers.
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Rajagiri College of Management and Applied Sciences 4. The study will help in identifying the effectiveness of the program. 5. The study helps to identify the needs and aspirations of the customers over the program. OBJECTIVES: GENERAL OBJECTIVE: To analyse the effectiveness of the XTRAPOWER Fleet Card Loyalty Program in the retention of its customers in IndianOil Corporation Ltd., Cochin. SPECIFIC OBJECTIVES: a) To study about the features of XTRAPOWER Fleet Card Loyalty Program. b) To analyse the quality of service offered to customers. c) To analyse the effectiveness of the banking facilities available to customers. d) To study about the benefits available to customers. e) To analyse the further improvements suggested by the customers. RESEARCH DESIGN: The study follows Descriptive research design. TYPE OF RESEARCH: The study follows explanatory research. DATA COLLECTION: Primary data: Questionnaires Secondary data: Internet and Company Reports
POPULATION: 38
Rajagiri College of Management and Applied Sciences The floating population of Fleet Operators in Ernakulam. SAMPLE SIZE: 100 respondents (Fleet Operators) TOOLS FOR DATA COLLECTION: The primary data has been collected using questionnaires. Convenience sampling has been made use of for the distribution of questionnaires. Internet and Company Reports have been made use of for the collection of Secondary data. STATISTICAL TOOLS USED FOR DATA ANALYSIS: The statistical tools used for analysing the data are Percentages, Averages and Bar Diagrams. LIMITATIONS: 1. Some of the respondents were not co-operative. 2. Another limitation is that the geographical area was confined only to Ernakulam.
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CHAPTER 3 DATA ANALYSIS
Table 3.1 Showing if the respondent is a single user/multi user. No. of respondents Percentage (%) 40
Rajagiri College of Management and Applied Sciences Single user Multi user Total 35 65 100 35 65 100
Figure 3.1 - Showing if the respondent is a single user/multi user.
Inference - From the above figure we conclude that 35% of the respondents are single users and 65% of the respondents are multi users.
Table 3.2 - Showing the number of vehicles owned by the respondents. No. of vehicles 15 5 10 10 15 No. of people 50 19 16 Percentage (%) 50 19 16
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Rajagiri College of Management and Applied Sciences 15 20 Total 15 100 15 100
Figure 3.2 Showing the number of vehicles owned by the respondents.
Inference From the above figure we can conclude that 50% of the respondents have 1-5 vehicles, 19% have 5 10 vehicles, 16% have 10 15 vehicles and 15% have 15 20 vehicles.
Table 3.3 Showing the number of respondents who are aware of the XTRAPOWER Loyalty Program.
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Yes No Total
No. of people 74 26 100
Percentage (%) 74 26 100
Figure 3.3 Showing
the number of respondents who are aware of the XTRAPOWER Loyalty Program
Inference From the above figure we can conclude that 74% of the respondents are aware of the XTRAPOWER Loyalty Program and 26% of respondents are not aware.
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Rajagiri College of Management and Applied Sciences Table 3.4 Showing the number of respondents who are members of the XTRAPOWER Fleet Card Loyalty Program. No. of respondents 71 3 74 Percentage (%) 96 4 100
Yes No Total
Figure 3.4 - Showing the number of respondents who are members of the XTRAPOWER Fleet Card Loyalty Program.
Inference From the above figure we can conclude that 96% of the respondents are members of the XTRAPOWER Fleet Card Loyalty Program and 4% of the respondents are not members.
Table 3.5 Showing how the respondents came to know about the XTRAPOWER Fleet Card Program. 44
Media Retail Outlets Hoardings Advertisements Total
No. of respondents 19 31 8 13 71
Percentage (%) 27 44 11 18 100
Figure 3.5 Showing how the respondents came to know about the XTRAPOWER Fleet Card Program.
Inference - From the above figure we can conclude that 27% of respondents came to know about the Fleet Card through Media, 44% through Retail Outlets, 11% through Hoardings and the remaining 18% through Advertisements.
Table 3.6 Showing how the respondents rate the benefit of Cashless fuelling. No. of respondents 29 31 Percentage (%) 41 44 45
Excellent Very Good
Rajagiri College of Management and Applied Sciences Satisfactory Fair Poor Total 11 0 0 71 15 0 0 100
Figure 3.6 Showing how the respondents rate the benefit of Cashless fuelling.
Inference From the above figure we can conclude that 41% of respondents rate it as Excellent, 44% rate it as Very good, 15% rate it as Satisfactory and none of the respondents have rated it as Fair and Poor.
Table 3.7 Showing how respondents rate the Reward points and consequent redemption of points for free diesel. No. of respondents Excellent Very Good Satisfactory Fair 35 27 8 1 Percentage (%) 49 38 11 2 46
Rajagiri College of Management and Applied Sciences Poor Total 0 71 0 100
Figure 3.7 Showing how respondents rate the Reward points and consequent redemption of points for free diesel.
Inference From the above figure we can conclude that 49% of respondents rate it as Excellent, 38% rate it as Very good, 11% rate it as Satisfactory, 2% rate it as Fair and none have rate it as Poor.
Table 3.8 Showing the respondents rating for redemption of Reward points for gift items. No. of respondents 25 33 12 0 1 71 Percentage (%) 35 46 17 0 2 100
Excellent Very Good Satisfactory Fair Poor Total
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Figure 3.8 Showing the respondents rating for redemption of Reward points for gift items.
Inference From the above figure we can conclude that 35% of respondents rate it as Excellent, 46% rate it as Very good, 17% rate it as Satisfactory, none have rate it as Fair and 2% have rated it as Poor.
Table 3.9 Showing how respondents rate the Insurance coverage provided. No. of respondents 19 28 19 5 0 71 Percentage (%) 27 39 27 7 0 100
Figure 3.9 Showing how respondents rate the Insurance coverage provided.
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Inference From the above figure we can conclude that 27% of respondents rate it as Excellent, 39% rate it as Very good, 27% rate it as Satisfactory, 7% rate it as Fair and none have rated it as Poor.
Table 3.10 Showing how respondents rate the discount availed on the purchase of JK Tyres. No. of respondents 22 25 18 6 0 71 Percentage (%) 31 35 25 9 0 100
Figure 3.10 Showing how respondents rate the discount availed on the purchase of JK Tyres.
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Table 3.11 Showing how respondents rate the Prepaid options provided. No. of respondents 17 30 19 5 0 71 Percentage (%) 24 42 27 7 0 100
Figure 3.11 Showing how respondents rate the Prepaid options provided.
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Table 3.12 Showing how respondents rate the Credit options provided. No. of respondents 20 27 19 5 0 71 Percentage (%) 28 38 27 7 0 100
Table 3.12 Showing how respondents rate the Credit options provided.
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Table 3.13 Showing how respondents rate the Real Time Gross Settlement mode of payment through HDFC Bank. No. of respondents 12 29 25 5 0 71 Percentage (%) 17 41 35 7 0 100
Figure 3.13 Showing how respondents rate the Real Time Gross Settlement mode of payment through HDFC Bank.
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Table 3.14 Showing how respondents rate the facility of Cash deposit at Retail Outlets. No. of respondents 19 28 20 4 0 71 Percentage (%) 27 39 28 6 0 100
Figure 3.14 Showing how respondents rate the facility of Cash deposit at Retail Outlets.
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Table 3.15 Showing how respondents rate the receipt of monthly statement of diesel consumption for the vehicles. No. of respondents 25 26 16 4 0 71 Percentage (%) 35 37 22 6 0 100
Figure 3.15 Showing how respondents rate the receipt of monthly statement of diesel consumption for the vehicles.
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Table 3.16 Showing how respondents rate the CONVENIENCE provided by the XTRAPOWER Fleet Card. No. of respondents 21 31 16 3 0 71 Percentage (%) 30 43 23 4 0 100
Figure 3.16 Showing how respondents rate the CONVENIENCE provided by the XTRAPOWER Fleet Card.
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Table 3.17 Showing how respondents rate the SECURITY provided by the XTRAPOWER Fleet Card. No. of respondents 24 29 14 4 0 71 Percentage (%) 33 40 20 7 0 100
Figure 3.17 Showing how respondents rate the SECURITY provided by the XTRAPOWER Fleet Card.
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Table 3.18 Showing how respondents rate the EASE OF USAGE of XTRAPOWER Fleet Card. No. of respondents 11 25 29 4 2 71 Percentage (%) 15 35 41 6 3 100
Figure 3.18 Showing how respondents rate the EASE OF USAGE of XTRAPOWER Fleet Card.
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Inference From the above figure we can conclude that 15% of respondents rate it as Excellent, 35% rate it as Very good, 41% rate it as Satisfactory, 6% rate it as Fair and 3% rate it as Poor.
Table 3.19 Showing how respondents rate the CONTROL provided by the XTRAPOWER Fleet Card. No. of respondents 11 22 33 3 2 71 Percentage (%) 15 31 47 4 3 100
Figure 3.19 Showing how respondents rate the CONTROL provided by the XTRAPOWER Fleet Card.
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Table 3.20 Showing how respondents rate the REWARDS provided by the XTRAPOWER Fleet Card. No. of respondents 30 19 16 5 1 71 Percentage (%) 42 27 23 7 1 100
Figure 3.20 Showing how respondents rate the REWARDS provided by the XTRAPOWER Fleet Card.
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Table 3.21 Showing how respondents rate the services provided at the petrol bunk. No. of respondents 19 28 19 5 0 71 Percentage (%) 27 39 27 7 0 100
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Figure 3.21 Showing how respondents rate the services provided at the petrol bunk.
Table 3.22 Showing how respondents rate the time taken for swiping the cards by the operators at the petrol bunk. No. of respondents 13 25 26 7 0 71 Percentage (%) 18 35 37 10 0 100
Figure 3.22 Showing how respondents rate the time taken for swiping the cards by the operators at the petrol bunk. 61
Table 3.23 Showing how respondents rate the XTRAPOWER Fleet Card when compared to other competitors Loyalty Programs. No. of respondents 22 32 13 4 0 71 Percentage (%) 31 45 18 6 0 100
Table 3.23 Showing how respondents rate the XTRAPOWER Fleet Card when compared to other competitors Loyalty Programs.
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Table 3.24 Showing how respondents rate the overall experience with XTRAPOWER Fleet Card Loyalty Program. No. of respondents 13 34 21 3 0 71 Percentage (%) 18 48 30 4 0 100
Figure 3.24 Showing how respondents rate the overall experience with XTRAPOWER Fleet Card Loyalty Program.
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CHAPTER 4 FINDINGS, SUGGESTIONS AND CONCLUSIONS

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FINDINGS 1. It was found that a majority of the respondents are multi users. 2. Majority of respondents own about 1 5 vehicles. 3. It was found that at least most of the respondents are aware of the XTRAPOWER Fleet Card Program. 4. Similarly most of the respondents who are aware of the XTRAPOWER Loyalty Program are also members of the program. 5. Most of the members of the program came to know about the program from various Retail outlets. 6. A majority of the fleet card users completely support the idea of Cashless fuelling as it is very much convenient. 7. It was also found that the respondents are happy and satisfied with the Reward points they receive on swiping their cards and also the subsequent redemption of gift items with these Reward points. 8. On an average the respondents find the Insurance Coverage only satisfactory. 9. It was found that the respondents are mostly satisfied with the Prepaid and Credit options provided. 65
Rajagiri College of Management and Applied Sciences 10. On the whole the respondents are very satisfied with the banking facilities provided to Fleet Card holders. 11. The ease of usage and control over the XTRAPOWER Fleet Card seems to be only satisfactory. 12. The convenience provided by the Fleet Card seems to be very good as per the respondents views. 13. The Reward System provided by the XTRAPOWER Fleet Card has been commented excellent.
SUGGESTIONS 1. The fleet cards can be utilized to the maximum only when there are more retail outlets having fleet card facilities. 2. Additional banks can be included for carrying out RTGS mode of payment as there are instances when the HDFC Bank portal is shut down. 3. There should be more promotional activities to make the fleet operators aware of the XTRAPOWER Fleet Card Loyalty Program. 4. The network problem which is beyond the control of anyone is affecting the XTRAPOWER Loyalty Program. However the dealers of retail outlets are officials of IOCL are helping the customers by giving diesel without swiping the cards under such critical situations and thereafter the cards will be supplied.
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QUESTIONNAIRE
1. Name: 2. Age: 3. Location: 4. Educational Qualification: 5. Are you a single user / multi user? 6. How many vehicles do you own? 1-5 5-10 10-15 15-20
7. Are you aware of the XTRAPOWER Loyalty Program? Yes No
8. If yes, are you a member of the XTRAPOWER Fleet Card Program? Yes No
9. How did you come to know about the XTRAPOWER Fleet Card?
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Rajagiri College of Management and Applied Sciences Media Retail outlets Hoardings Advertisements
10. How do you rate the various benefits of the XTRAPOWER Fleet Card? I) Cashless fueling i.e. carry only the card with you by loading money on the card. Excellent Very good Satisfactory Fair Poor
II) Reward points and consequent redemption of points for free diesel at the petrol bunk. Excellent Very good Satisfactory Fair Poor
III) Redemption of Reward points for gift items. Excellent Very good Satisfactory Fair Poor
IV) Insurance coverage. Excellent Very good Satisfactory Fair Poor
V) 15% discount on purchase of JK Tyres. Excellent Very good Satisfactory Fair Poor
11. How do you rate the banking facilities offered by this Fleet card? I) Prepaid options Excellent II) Credit options Excellent Very good Satisfactory Fair Poor Very good Satisfactory Fair Poor
III) Real Time Gross Settlement mode of payment through HDFC Bank. Excellent Very good Satisfactory Fair Poor
IV) Cash deposit at the Retail outlet. Excellent Very good Satisfactory Fair Poor
V) Receipt of monthly statement for diesel consumption for the vehicles. Excellent Very good Satisfactory Fair Poor
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Rajagiri College of Management and Applied Sciences 12. How would you rate the features of XTRAPOWER Fleet card? I) Convenience Excellent II) Security Excellent III) Ease of usage Excellent IV) Control Excellent Very good Satisfactory Fair Poor Very good Satisfactory Fair Poor Very good Satisfactory Fair Poor Very good Satisfactory Fair Poor
V) Rewards Excellent Very good Satisfactory Fair Poor
13. How do you feel the services at the petrol bunk? Excellent Very good Satisfactory Fair Poor
14. The time taken for swiping the cards by the operators at the Petrol Bunk for fuelling. Excellent Very good Satisfactory Fair Poor
15. How do you feel about the IOCL XTRAPOWER Fleet Card Program compared to other competitors Loyalty Programs? Excellent Very good Satisfactory Fair Poor
16. How would you rate the overall experience with XTRAPOWER Fleet Card Program? Excellent Very good Satisfactory Fair Poor
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Rajagiri College of Management and Applied Sciences

Place: Date: Audrey Martina Alex

Rajagiri College of Management and Applied Sciences

Rajagiri College of Management and Applied Sciences

8. 9. 10. 11. 12.

3.8 3.9 3.10 3.11 3.12

Rajagiri College of Management and Applied Sciences

Rajagiri College of Management and Applied Sciences

8. 9. 10. 11. 12.

3.8 3.9 3.10 3.11 3.12

Rajagiri College of Management and Applied Sciences

PART I ORGANISATIONAL STUDY

Rajagiri College of Management and Applied Sciences

CHAPTER 1 INDUSTRIAL PROFILE

Rajagiri College of Management and Applied Sciences

Rajagiri College of Management and Applied Sciences

CHAPTER 2 ORGANISATIONAL PROFILE

Rajagiri College of Management and Applied Sciences

Rajagiri College of Management and Applied Sciences Integrity Truthfulness Transparency

Rajagiri College of Management and Applied Sciences

Rajagiri College of Management and Applied Sciences

Rajagiri College of Management and Applied Sciences

ORGANISATION CHART: IndianOil Corporation

Cochin Divisional Office Senior Divisional Retail Sales Manager

Manager Retail Sales

Manager Retail Sales

Manager Retail Sales

Dy. Manager Finance

Dy. Manager Fleet Marketing

Two field Officers

Two field Officers

Two field Officers

Dy. Manager (Engg)

Rajagiri College of Management and Applied Sciences

Chennai Petroleum Corporation Ltd. (CPCL)

IndianOil CREDA Biofuels Limited

Rajagiri College of Management and Applied Sciences

XTRAPOWER Fleet Card Program

Rajagiri College of Management and Applied Sciences

PART II RESEARCH PROJECT

Rajagiri College of Management and Applied Sciences

CHAPTER 1 THEORETICAL FRAMEWORK

Rajagiri College of Management and Applied Sciences

Rajagiri College of Management and Applied Sciences

Rajagiri College of Management and Applied Sciences

CHAPTER 2 RESEARCH METHODOLOGY AND RESEARCH DESIGN

TITLE OF THE STUDY:

Rajagiri College of Management and Applied Sciences

CHAPTER 3 DATA ANALYSIS

Figure 3.1 - Showing if the respondent is a single user/multi user.

Rajagiri College of Management and Applied Sciences 15 20 Total 15 100 15 100

Figure 3.2 Showing the number of vehicles owned by the respondents.

Rajagiri College of Management and Applied Sciences

No. of people 74 26 100

Percentage (%) 74 26 100

Figure 3.3 Showing

Rajagiri College of Management and Applied Sciences

Media Retail Outlets Hoardings Advertisements Total

Percentage (%) 27 44 11 18 100

Excellent Very Good

Rajagiri College of Management and Applied Sciences Poor Total 0 71 0 100

Excellent Very Good Satisfactory Fair Poor Total

Rajagiri College of Management and Applied Sciences