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 In 1976, India banned the private sector from participating in

fuel retail and nationalized the local businesses of
international oil companies pricing was control through APM.
 In 2002, however, the government made a U-turn, allowing
multinationals and other private players to re-enter the
market. The policy shift sparked a rush of service station
openings as both private and public companies positioned
themselves to sell to the nation’s growing, increasingly mobile
middle class.
 Although the government abolished formal controls on fuel
prices, it continued to dictate them indirectly through the
pricing policy of India’s national oil companies (NOCs).
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 The prices for kerosene & LPG are determined on the basis of import
parity prices
 For petrol & diesel, it is determined on the basis of trade parity
pricing model.
 Import parity prices= International price + Insurance +freight
cost +customs duty.
 Trade parity price= weighted average of import parity and export
parity prices in the ratio of 80:20.
 The prices for certain petroleum products like kerosene, LPG
(domestic) were subsidized for socio economic reasons.
 Fuels like petrol, ATF, LPG for (industrial use) were priced
above the cost of production to discourage their inessential
use.
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 Repeat Create
CreateProfitable
Profitable
Retention
Retentionof
of Repeat
Purchases Customers
Customers??
Customers ?
Customers ? Purchases??

Acquisition
Acquisitionof
of More
MoreInformation
Information
Customers ?
Customers ? on
on Customers??
Customers

LOYALTY

Just Reward
RewardLoyal
JustAnother
Another Loyal
Marketing Customers
Customers??
MarketingProgram
Program??

Reality …….….could be all of the above !!!!

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


The immense competition will make loyalty programs an integral program
of the day-to-day functioning of petro-retailing, right now many such
loyalty programs are being run by the petro-retailers like Smart Fleet
(BPCL), XtraPower (IOCL), Drive track (HPCL),
Transconnect (Reliance), Petro card (BPCL) and others.
 In recent years the sector has moved away from being government-
controlled, a move that has brought new levels of competitive threat and
customer focus. With the going having gotten tough, the smarter players
have caught on early that the best way to do business is to lock customers
into a habit they can’t break.
 The competitive threat is bigger, With private players entering the fray,
the pricing is increasingly market driven and consumers are demanding
more.
 With increasing oil prices and competition increasing at a rapid pace,
many oil marketing companies (OMC’S) like IOCL, BPCL and HPCL are
finding it difficult to operate profitably in India
 Among the government company bpcl was first to adopted the loyalty
card benefits as a petro card with a great success.
 For the other two players, IOCL and HPCL, customer loyalty programs
did not happen until mid 2002. Both of these companies focused their
initial marketing efforts on building their retail outlet brand and
services before launching arrange of card based programs.
 Both companies took the co-branded route, tying up with banks entry of
the banks into this space brought about the next wave of loyalty
programs, with a fresh set of offers for the customers. The credit and
debit card based programs offered the customers all the facilities of a
regular credit/ debit card.
 Indian Oil's loyalty programmes are designed exclusively to benefit the
large number of its customers who have been patronizing the brand for
over five decades.
 XTRAREWARDS Loyalty Program
 XTRAPOWER Fleet Card program

 XTRAREWARDS Loyalty Program: Indian Oil XTRAREWARDS is India's

first on-line rewards program that seeks to inculcate the habit of
redeeming points. 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.
 XTRAPOWER Fleet Card program
The XTRAPOWER Fleet Card program is a complete smart card-based fleet
management solution for fleet operators and Corporate for cashless
purchase of fuel & lubes from designated retail outlets of Indian Oil through
flexible pre-paid and credit facilities.
BENEFITS:
 Payment convenience-both prepaid and credit options.
 Detailed fleet management reports.
 Facility to track each vehicle
 Personal Accident Insurance Cover and Medi-claim for fleet owner, driver,
co-driver and helper.
 Attractive rewards on purchase of fuel & lubricants through the Card
 Opportunity for earning additional rewards on purchase of J.K. Tyre and
Exide Battery
The following tasks are given to me during my project at Indian oil.
1.Marketing survey of Xtra power fleet card from Durgapur and nearby
region of retailers(10) and customers(sample size 200) with the help of
close ended short questionnaire provided by iocl.

2.Comparison between loyalty card benefits with other major oil producing
company as all benefits are not disclose in company’s official website .
These information's are required to get the competitive edge over
competitors.

3.Prepare a list of customers and getting their feedback whether they are
satisfied or not and short out important problem area for both existing
customers as well as potential customer.
RESEARCH METHODOLOGY
 DATA COLLECTION METHOD
 Primary Data

The data collected through questionnaire based survey from the

retailers and customers of Durgapur and nearby region.
 Secondary Data

Company’s annual reports

Company’s journal and magazines
Company’s website
Company’s leaflets
Company’s pamphlets
Products and sales report
 SAMPALING PLAN
 Sample size:- 200 customers and 10 retailers

convenience sampling is based on opportunism.

 QUESTIONAIRE DESIGN

close ended short questionnaire which was filled by the fleet owners
through one to one interactions.(provided by iocl)
 Total percentage of fuel sold by Xtra power fleet card
 Percentage of sale through Xtra power fleet card
 Do you tell the customer/driver about the Xtra Power fleet card
 Do the staff/attendants know how to operate the machine of Xtra
Power fleet card?
 What is the usual mode of payment made by the customer?
 
 Is the outlet well equipped with machines of Xtra Power fleet card?
 CORRELATION VALUE:

 Correlation between sales and inform the customer about the loyalty
card=0.526804457

 Correlation between sales and staff competency= 0.375

 Correlation between sales and well equipped Xtra power fleet card
machine= 0.763762616

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 Xtra power scheme is not available at all the retail outlet of Indian oil
in so at a time it creates problem.
 The card swiping machines are not properly maintained at some
places leading to many customer complaints. Some of the machines
are very old and they are need replacement with the new one.
 At some places pump attendants are also not interested in providing
this service.
 There are no pamphlets available at pumps, which could give a brief
idea about the loyalty program.
 There is Lack of internet facility at some of the outlets and also
problem with poor network service.
 The facilities should be made available to more retail outlet.
 The card swiping machine must be carefully maintained and provide quick
service for any technical difficulties. The old machines must be replaced
by the new one without any delay.
 Most of the pump attendant is not so educated hence a training program
for them to provide the use of swiping machine and its various technical
aspects.
 Regular visit to pump should be made and pump owner and attendants
are encouraged to provide the service for their own benefit and benefit to
the customers. If possible some rewards should be given to the pump with
highest sale in month by card transaction.
 Pamphlets must be available at pump so that customers get a brief idea
about the program.
 The poor network service at retail outlet need to improve urgently.
 What is the usual mode of payment?
 Do you know about the Xtra Power fleet card?
 From where did you come to know about the fleet card program?
 Are you satisfied with the service of fleet card?
 Do you use your fleet card regularly?
 What improvements do you want in the fleet card loyalty program?
 CORRELATION VALUE

 Sales through card and information about its all benefit=0.262530366

 Sales through card and source of information=0.332791985

 Sales through card and customer satisfaction=0.794310329

 Sales through card and use it regularly = 0.794310329


 Sales through card with more improvement=0.745896789

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 Most of the customers were very supportive and welcoming. Customers who
showed interest appreciated the offer provided and wanted to know more
about the program.
 Some of the prospective customers were not aware of India Oil Xtra Power
Fleet Card Loyalty Program. Hence they were not interested.
 Some of the customers facing technical difficulties while using the card
since they are not able to understand its operations clearly.
 Some customers have no clear idea about its benefit and they are happy to
use their old traditional way of purchasing oil and lubricant.
 Some of the customer considers it as very complex and the benefit is not so
high.
 Customers most of them are small transporter are not very keen for this
program some of them have purchase the card but the card remains as idle
as they have very less transaction and lack of information about the
benefits.
 Pamphlet and booklets are in English; hence most of the people are not
able to understand.
 There is no dedicated person for collecting the forms. So, there is a
large backlog of forms.
 This program is only for LCV 4 vehicles smaller and medium size vehicle
are not included in this program.
 There are no any special benefits for customers having larger
transaction.
 Corporate customers are not very interested as there is no any special
benefit for them.
 Website of Xtra power (www.iocxtrapower.com) is not regularly updated
 Most of the people are not aware regarding the Xtra power scheme, IOC
should try to create awareness regarding the program by means of more
aggressive advertising.
 Xtra power fleet card banners should be put at proper location with easy
visibility.
 The customers facing any kind of difficulties must be assisted promptly
and their problem must be considered with due care.
 Information centers especially in remote areas must be setup so that
people have access to this program and they can have detail information
about its benefits.
 All the pamphlets and booklets are in English, hence most of the
customer not able to understand. It should be in regional language
(Bengali) and Hindi for easy understanding.

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 There must be a fixed person for collecting forms and application for
the card.
 Target new vehicle/fleet owner by tie up with the vehicles companies
and give XTRAPOWER FLEET CARD with every new vehicle/truck.
 If a card is not used for a specified period then a message should be
given as a reminder and if possible to contact the person as there may
be some problem for not using the card.
 Special benefit must be provided to customers with larger transaction
and it is better to divide the customers in groups as per their total
transaction.
 Need for Local alliance partners.
 The website for Xtra power needs regular update with more user
friendly access and details of new as well as upcoming offers.
 In process of preparing customer data base I personally talk over
telephone with number of fleet card owner and also the potential
customers(transporter/agency)of west Bengal. Most of them are
satisfied but the major problem they are facing are following-
They don’t get the card in proper time.
Technical problem regarding operation of card want demonstration.
Less number of retail outlet with such facility.
Transporter having small amount of transaction and local transporter
are not interested as the benefit is very less.
Most of them is not fully aware about the benefit provided by the
fleet card.
Most of the machines are old dated and not properly work which
creates a problem.
 Benefitsprovided by iocl is better than its competitor in number of
aspects especially in case of insurance benefits, lost card liability tyre
and battery benefits but inspite of this to get more customer base the
company can consider for benefits these are,

Free sms alert as provided by bpcl for balance check and vehicle
tracking
Extra benefit scheme for customer with more transaction.
Multiple credit partner for customers
Redemption at any point of time with increased point validity from 1
year.
Fleet card benefit for smaller vehicle.