GAUHATI UNIVERSITY

A Training Report On INDIAN OIL CORPORATION LIMITED Submitted in partial fulfillment of the requirements for the award of MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO GAUHATI UNIVERSITY By Ms.RADHIKA.K.P Roll No.1001-0218 Under the Guidance of

Prof .B. VENKATESWARAN

HEAD (ACADEMICS) RAI BUSINESS SCHOOL, CHENNAI

Mr. N.SELVARAJ
BRANCH HEAD STANDARD CHARTERED SECURITIES (INDIA) Ltd.

CERTIFICATE

This is to certify that the Training Report has been submitted in Partial fulfillment of requirements for degree of

MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO GAUHATI UNIVERSITY By Radhika.k.p Roll.No.10010216 Under the supervision and guidance of prof.B.venkateshwaran, and that no part of this report has been submitted for the award of any other degree/diploma/fellowship or similar title prizes and that the work has not been published in any scientific and other magazines. Prof .B. Venkateshwaran Head (Academics)

CERTIFICATE OF THE FACULTY GUIDE

This is to certify that the training Report on STANDARD CHARTERED SECURITIES (INDIA) Ltd is completed under my guidance and supervision. It is submitted in partial fulfillment of the Master Of Business Administration (Industry Integrated) to Gauhati university by Ms.Radhika.k.p(Roll No 10010216)and this has not formed a basis for the award of any degree, diploma or fellowship by any other institutes or universities. Mr.B.Venk ateshwaran

STUDENTS DECLARATION

STUDENTS DECLARATION
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I hereby declare that the Training report conducted at INDIAN OIL CORPORATION LIMITED Under the guidance Of Prof .B. VENKATESWARAN
HEAD (ACADEMICS) RAI BUSINESS SCHOOL, CHENNAI

Submitted in partial fulfillment of the requirements for the Degree of

MASTER OF BUSINESS ADMINISTRATION TO GAUHATI UNIVERSITY

Is my original work and the same has not been submitted for the award of any other degree /diploma/fellowship or other similar titles or prizes.

Place: Chennai Date:

Ms.RADHIKA.K.P Roll No.1001-0218

CERTIFICATE OF THE ORGANIZATION

ACKNOWLEDGEMENT

ACKNOWLEDGEMENT

I take immense pleasure in thanking Lakshminarayanan, training officer, NIAM for having permitted me to carry out this project work.

I wish to express my deep sense of gratitude to my Internal Guide, prof.B.Venkateshwaran for his able guidance and useful suggestions, which helped me in completing the project work, in time.

Needless to mention that Mrs. Beatrice AntoPriya, Asst.manager, xtrarewards programme, who had been a source of inspiration and for his timely guidance in the conduct of our project work.

Finally, yet importantly, I would like to express my heartfelt thanks to my beloved parents for their blessings, my friends/classmates for their help and wishes for the successful completion of this project.

CONTENTS

CONTENTS

TOPIC

PAGE NO

CHAPTER 1 INTRODUCTION
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1.1

IOCL INTRODUCTION

12 -13 14 15-18 19-20 21 22-27 28

1.2 VISION &MISSION

1.3 OBJECTIVES 1.4 OFFICES

1.5ORIGIN AND DEVELOPMENT OF INDUSTRY

1.6 IOCL

PRODUCTS

1.7IOCL SERVICES

CHAPTER 2 ABOUT THE TRAINING PROGRAMME

2.1 OBJECTIVES OF TRAINING 2.2 SCOPE OF THE TRAIN 2.3 LOYALTY PROGRAMME 2.4 XTRAREWARD PROGRAMME 2.5 PROCESS OF XTRA REWARD PROGRAMME 2.6 BENEFITS 29 30 31 32-33 34 36

CHAPTER 3 DISCUSSION ON TRAINING

3.1RESEARCH METHODOLOGY 3.2 QUESTIONAIRE 3.3DATA FROM CUSTOMERS 3.4 FINDINGS 3.5 RESULTS AND ANALYSIS 3.6 RECOMMANDATIONS
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37-38 39 40-43 44 45 46-47

CHAPTER 4 SUMMARY AND CONCLUSION

4.1 SWOT ANALYSIS 4.2 LEARNING EXPERIENCE 4.3 CONCLUSION BIBILIOGRAPHY 48-51 52 53 54

1.1IOCL- INTRODUCTION

Indian Oil is India's flagship national oil company with business interests straddling the entire hydrocarbon value chain from refining, pipeline transportation and
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marketing of petroleum products to exploration & production of crude oil & gas, marketing of natural gas and petrochemicals. It is the leading Indian corporate in the Fortune 'Global 500' listing, ranked at the 125th position in the year 2010. With over 34,000-strong workforce, Indian Oil has been helping to meet Indias energy demands for over half a century. With a corporate vision to be the Energy of India, Indian Oil closed the year 2009-10 with a sales turnover of Rs. 271,074 crore and profit of Rs. 10,221 crore. At Indian Oil, operations are strategically structured along business verticals - Refineries, Pipelines, Marketing, R&D Centre and Business Development E&P, Petrochemicals and Natural Gas. To achieve the next level of growth, Indian Oil is currently forging ahead on a well laid-out road map through vertical integration upstream into oil exploration & production (E&P) and downstream into petrochemicals and diversification into natural gas marketing and alternative energy, besides globalization of its downstream operations. Having set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates (UAE), Indian Oil is simultaneously scouting for new business opportunities in the energy markets of Asia and Africa.

1.2OVERVIEW OF COMPANY Indian Oil is India's flagship national oil company with business interests straddling the entire hydrocarbon value chain from refining, pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas,
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marketing of natural gas and petrochemicals. It is the leading Indian corporate in the Fortune 'Global 500' listing, ranked at the 125th position in the year 2010. With over 34,000-strong workforce, Indian Oil has been helping to meet Indias energy demands for over half a century. With a corporate vision to be the Energy of India, Indian Oil closed the year 2009-10 with a sales turnover of Rs. 271,074 crore and profit of Rs. 10,221 crore. At Indian Oil, operations are strategically structured along business verticals - Refineries, Pipelines, Marketing, R&D Centre and Business Development E&P, Petrochemicals and Natural Gas. To achieve the next level of growth, Indian Oil is currently forging ahead on a well laid-out road map through vertical integration upstream into oil exploration & production (E&P) and downstream into petrochemicals and diversification into natural gas marketing and alternative energy, besides globalization of its downstream operations. Having set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates (UAE), Indian Oil is simultaneously scouting for new business opportunities in the energy markets Asia and Africa. of

Reach and Network Indian Oil and its subsidiary (CPCL) account for over 48% petroleum products
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market share, 34.8% national refining capacity and 71% downstream sector pipelines capacity in India. The Indian Oil Group of companies owns and operates 10 of India's 20 refineries with a combined refining capacity of 65.7 million metric tones per annum (MMTPA, .i.e. 1.30 million barrels per day approx.). Indian Oil's cross-country network of crude oil and product pipelines, spanning 10,899 km with a capacity of 75.26 MMTPA, is the largest in the country. With a throughput of 68.5 million tones, it meets the vital energy needs of the consumers in an efficient, economical and environment-friendly manner It has a portfolio of powerful and much-loved energy brands that includes Indane LPGGas, SERVOlubricantsXtraPremium petrol, XtraMile diesel, etc. Validating the trust of 56.8 million households, Indane has earned the coveted status of 'Super brand' in the year 2009.

1.3VISION

A major diversified, transnational, integrated energy company, with national leadership and a strong environment conscience, playing a national role in oil security & public distribution.
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MISSION To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services, and cost reduction. To maximize creation of wealth, value and satisfaction for the stakeholders. To attain leadership in developing, adopting and assimilating state-of-the-art technology for competitive advantage. To provide technology and services through sustained Research and Continuous Development. To foster a culture of participation and innovation for employee growth and contribution. To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.

1.4 Objectives
To serve the national interests in oil and related sectors in accordance and consistent with Government policies.

To ensure maintenance of continuous and smooth supplies of petroleum products by way of crude oil refining, transportation and marketing activities
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and to provide appropriate assistance to consumers to conserve and use petroleum products efficiently.

To enhance the country's self-sufficiency in crude oil refining and build expertise in lying of crude oil and petroleum product pipelines. To further enhance marketing infrastructure and reseller network for providing assured service to customers throughout the country. To create a strong research & development base in refinery processes, product formulations, pipeline transportation and alternative fuels with a view to minimizing/eliminating imports and to have next generation products. To optimize utilization of refining capacity and maximize distillate yield and gross refining margin. To maximize utilization of the existing facilities for improving efficiency and increasing productivity. To minimize fuel consumption and hydrocarbon loss in refineries and stock loss in marketing operations to effect energy conservation. To earn a reasonable rate of return on investment. To avail of all viable opportunities, both national and global, arising out of the Government of Indias policy of liberalization and reforms. To achieve higher growth through mergers, acquisitions, integration and diversification by harnessing new business opportunities in oil exploration & production, petrochemicals, natural gas and downstream opportunities overseas. To inculcate strong core values among the employees and continuously update skill sets for full exploitation of the new business opportunities. To develop operational synergies with subsidiaries and joint ventures and

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continuously engage across the hydrocarbon value chain for the benefit of society at large.

Obligations
Towards customers and dealers: - To provide prompt, courteous and efficient service and quality products at competitive prices.

Towards suppliers: - To ensure prompt dealings with integrity, impartiality and courtesy and help promote ancillary industries.

Towards employees: - To develop their capabilities and facilitate their advancement through appropriate training and career planning. To have fair dealings with recognized representatives of employees in pursuance of healthy industrial relations practices and sound personnel policies.

Towards community: - To develop techno-economically viable and environment-friendly products. To maintain the highest standards in respect of safety, environment protection and occupational health at all production units.

Towards Defense Services:- To maintain adequate supplies to Defense and other Para-military services during normal as well as emergency situations.

Financial Objectives
To ensure adequate return on the capital employed and maintain a reasonable annual dividend on equity capital. To ensure maximum economy in expenditure.
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To manage and operate all facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment, without budgetary support. To develop long-term corporate plans to provide for adequate growth of the Corporations business. To reduce the cost of production of petroleum products by means of systematic cost control measures and thereby sustain market leadership through cost competitiveness. To complete all planned projects within the scheduled time and approved cost.

1.5 Registered Office Registered Office IndianOilBhavan, G-9,AliYavarJungMarg, Bandra (East), Mumbai -400 051
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Refineries Division Head Office Barauni Refinery Gujarat Refinery Guwahati Refinery Haldia Refinery Mathura Refinery Panipat Refinery Bongaigaon Refinery SCOPEComplex,Core-27,InstitutionalArea, LodhiRoad,New Delhi -110003 P.O.BarauniRefinery, Dist. Begusarai -861 114 (Bihar) P.O.JawaharNagar, Dist. Vadodara -391 320(Gujarat) P.O.Noonmati, Guwahati-781020 (Assam) P.O.HaldiaRefineryDist.Midnapur-721606 (West Bengal) P.O.MathuraRefinery,Mathura-281005 (Uttar Pradesh) P.O.PanipatRefinery, Panipat-132140(Haryana) P.O.Dhaligaon, Dist. Chirang, Assam - 783 385

Pipelines Division Head Office Northern Region A-1UdyogMarg, Sector-1, Noida-201301(Uttar Pradesh) P.O.PanipatRefinery Panipat -132 140 (Haryana)
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Western Region

P.O.Box1007,Bedipara, MorviRoad,Gauridad, Rajkot-360 003 (Gujarat) 139,NungambakkamHighRoad Chennai 600034 14,LeeRoad, Kolkata-700020

Southern Region Eastern Region

Marketing Division Head Office IndianOilBhavan, G-9,AliYavarJungMarg, Bandra (East), Mumbai -400 051 IndianOilBhavan, 1,AurobindoMarg,YusufSarai New Delhi -110016 IndianOilBhavan,2, Gariahat Road, South (Dhakuria) Kolkata -700 068 254-C,Dr.AnnieBesantRoad, Worli Colony, Mumbai -400 030 IndianOilBhavan 139,NungambakkamHighRoad Chennai -600034

Northern Region

Eastern Region Western Region Southern Region

R&D Centre R&D Centre Sector13Faridabad-121007 (Haryana)

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Assam Oil Division Assam Oil Division P.O.Digboi-768171 (Assam)

IBP Division IBP Division 34-A,NirmalChandraStreet, Kolkata - 700 013

Group Companies ChennaiPetroleum Corporation Ltd. 536,AnnaSalai, Teynampet, Chennai - 600 018

IndianOil (Mauritius) Ltd. MerRougePortLouis Maruritius Lanka IOC PLC LankaIOCHeadOffice Level20,WestTower, WorldTradeCenter, EchelonSquare,Colombo-01, Sri Lanka. LOB-12114,JebelAliFreeZoneP.O.Box: 261338

IOC Middle East FZE

1.6 Origin and development of the industry

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Beginning in 1959 as Indian Oil Company Ltd., Indian Oil Corporation Ltd. was formed in 1964 with the merger of Indian Refineries Ltd. (established 1958).Indian Oil Corporation Ltd. (Indian Oil) is India's largest commercial enterprise, with a sales turnover of Rs. 70823 crore and profits of Rs. 7976.48 for the year 2010-11. Indian Oil is also the highest ranked Indian company in the prestigious Fortune 'Global 500' listing, having moved up 11TH places to the105TH position in 2009. It is also the 20th largest petroleum company in the world. The Indian Oil Group of companies owns and operates 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tones per annum (MMTPA, .i.e. 1.2 million barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation Ltd. (CPCL) and one of Bongaigaon Refinery a n d P e t r o c h e m i c a l s L i m i t e d ( B R P ) . I n d i a n O i l a n d i t s s u b s i d i a r i e s a c c o u n t f o r a 4 7 % s h a r e i n t h e p e t r o l e u m pr o d u c t s m a r k e t , 4 0 % s h a r e i n r ef i n i n g c a p a c i t y a n d 6 7 % d o w n s t r e a m s e c t o r p i p e l i n e s c a p a c i t y i n I n d i a . T h e I n di a n O i l o p er a t e s t h e l a r g e s t a n d t h e w i d e s t n e t w o r k of f u e l s t a t i o n s i n t h e country, numbering about 17606 (15557 regular ROs & 2049 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over 47.5 million households through a network of 4,990 Indian distributors. In addition, Indian Oils 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.

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Subsequently, I n d i a n O i l T e c h n o l o g i e s L i m i t e d - a w h o l l y o w n e d subsidiary, was set up in 2003, with a vision to market the technologies developed at Indian Oils Research and Development C e n t e r . I t h a s b e e n m o d e l e d o n t h e R & D m ar k e t i n g a r m s of R o y a l D u t c h S h e l l a n d B r i t i s h P e t r o l e u m . I n d i a n O i l i s investing Rs. 43,393 crore (US $10.8 billion) during the period 2007-12 in augmentation of refining and pipeline capacities, expansion of marketing infrastructure and product quality up gradation as well as in integration and diversification project.

1.7 IOC- Products

Indian Oil is not only the largest commercial enterprise in the country it is the flagship corporate of the Indian Nation. Besides having a dominant market share, Indian Oil is widely recognized as Indias dominant energy brand and customers perceive Indian Oil as a reliable symbol for high quality products and services. Benchmarking Quality, Quantity and Service to world-class standards is a Philosophy that Indian Oil adheres to so as to ensure that customers get a truly global experience in India. Our continued emphasis is on providing fuel management solutions to customers who can then benefit from our expertise in efficient sourcing and least cost supplies keeping in mind their usage patterns and inventory management. The Retail Brand template of IOC consists of Xtra Care (Urban), Swagat (Highway) and Kissan Seva Kendras (Rural). These brands are widely recognized as pioneering brands in the petroleum retail segment. Indian Oils leadership extends to its energy brands - Indane LPG, SERVO Lubricants, Auto gas LPG, Xtra Premium Branded Petrol, Xtra Mile Branded Diesel, Xtra Power Fleet Card, Indian Oil Aviation and Xtra Rewards cash customer loyalty program.
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1.AUTOGAS: The fuel is marketed by Indian Oil under the brand name Auto Gas Indian Oil has setup 272 Auto LPG Dispensing Stations (ALDS) covering 149 cities across India. Auto Gas impacts greenhouse emissions less than any other fossil fuel when measured through the total fuel cycle. Conversion of petrol to Auto Gas helps substantially reduce air pollution caused by vehicular emissions. The saving on account of conversion to Auto Gas in comparison to petrol is about 35-40%. Low filling times and the 35-40% saving is a reason enough for a consumer to convert his vehicle to Auto Gas.

2.BITUMEN: Indian Oil produces bitumen from its refineries at Panipat, Mathura, Koyali, Haldia and Chennai and markets it in bulk as well as packed in steel drums. Indian Oil also markets modified Bitumen CRMB and Emulsion. CRMB is produced at Panipat, Mathura, Koyali, Haldia and CPCL refineries. Indian Oil markets Bitumen Emulsion by the brand name Indemul and it is produced from emulsion plants located in Haldia and Panipat refineries. CRMB and Emulsion are available both in bulk as well as in packed drums.

3.INDANE GAS: Indane is today one of the largest packed-LPG brands in the world and has been conferred the coveted Consumer Super brandstatus by the Super brands Council of India. Having launched LPG marketing in the mid-60s, Indian Oil has been credited with bringing about a kitchen revolution, spreading warmth and cheer in millions of households with the introduction of the clean and efficient cooking fuel. It has led to a substantial improvement in the health of women, especially in rural areas by replacing smoky and unhealthy chulha.
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Indane is today an ideal fuel for modern kitchens, synonymous with safety, reliability and convenience. With the status of an exclusive business vertical within the Corporation, the Indane network delivers 1.2 million cylinders a day to the doorsteps of over 53 million households, making Indian Oil the second largest marketer of LPG globally, after SHV Gas of The Netherlands. Indane is available in compact 5 kg cylinders for rural, hilly and inaccessible areas, 14.2 kg cylinders for domestic use, and 19 kg and47.5 kg for commercial and industrial use

4. SERVO LUBRICANTS AND GREASES: Indian Oils SERVO is the brand leader among lubricants and greases in India and has been conferred the Consumer Super brand status by the Super brands Council of India. With over 500 commercial grades and 1,500 formulations encompassing literally every conceivable application, SERVO serves as a one-stop shop for complete lubrication solutions in the automotive, industrial and marine segments. Recognized for cutting-edge technology and high-quality products, SERVO is backed by Indian Oils world-class R&D and an extensive blending and distribution network. 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.

5.MARINE FUELS AND LUBRICANTS: Indian Oil caters to all types of bunker fuels and lubricants required by various types of vessels operating throughout the world in the shipping industry. Bunker supplies are made at all major ports of India;
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Mumbai,Kandla, Vasco, Chennai, Tuticorin, Vizag, Cochin, New Mangalore, Kolkata, Paradeep,JNPT, Port Blair and Haldia. Apart from Indian Navy, whose 100% bunker requirements met by Indian Oil, it also supplies bunker fuels to all major shipping and dredging companies of India. Spot requirement of different vessels calling at Indian ports are met through nominations received from local shipping agents and international bunker traders/brokers. 6.SUPERIOR KEROSINE OIL: Kerosenes are 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.Keroseneis 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 vaporizers & atomisers.The Indian Standard governing the properties of kerosene are IS1459:1974 (2nd Rev).

7.CRUDE OIL: Crude oil - as petroleum directly out of the ground is called - is are markably varied substance, both in its use and composition. Crude oil is formed from the preserved remains of prehistoric zooplankton and algae, which have been settled to the sea (or lake) bottom in large quantities under
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anoxic conditions. It was formed over millions of years from the remains of tiny aquatic plants and animals that lived in ancient seas due to compression and heating of ancient organic materials over geological time. The oldest oilbearing rocks date back to more than 600 million years, the youngest being as old as about 1 million years. Crude oil from an area in which the crude oil's molecular characteristics have been determined and the oil has been classified are used as pricing references throughout the world. These references are known as Crude oil benchmarks .After considering availability of indigenous crude oil, balance crude oil is required to be imported. Indian Oil sources its crude oil requirement from Far East, Gulf region, Mediterranean, West Africa and Latin American source.

8.PETRO

CHEMICALS: India

is

amongst

the

fastest

growing

petrochemicals markets in the world. Taking this into consideration and to enhance its downstream integration, Indian Oil is focusing on increasing its presence in the domestic petrochemicals sector besides the overseas markets through systematic expansion of customer base and innovative supply logistics. Petrochemicals have been identified as a prime driver of future growth by Indian Oil. The Corporation is envisaging an investment of Rs 30,000crore in the petrochemicals business in the next few years. These projects will utilize product streams from the existing refineries of Indian Oil, thereby achieving better exploitation of the hydrocarbon value chain 9.SPECIAL PRODUCTS: Other than the regular petroleum products like light distillates, middle distillates, heavier products like Furnace Oil, Bitumen, etc., Indian Oil
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refineries also manufacture petroleum products for specific applications. These specific applications could be feed stock for chemical industry, raw material for specific industries and solid fuels. The petroleum products, produced for specific applications are called, 'Petrochemicals and Specialties (P&S) Products'. Basic end uses: Benzene: Chemical industry Pet coke: Cement industry CBFS: Carbon black manufacturers Propylene: Chemical industry JBO: Jute industry RPC: CPC manufacturers LABFS: LAB manufacturers Micro Crystalline Wax (MCW): Pharmaceutical industry MTO: Paint industry Paraffin wax: Candle manufacturers Toluene: Explosives manufacturers. Sulphur: Sulphuric Acid manufacturers and sugar industry

1.8 INDIAN OIL SERVICES

Indian Oil provides a wide range of marketing services and consultancy in fuel handling, distribution, storage and fuel/lube technical services. With a
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formidable bank of technical and engineering talent, Indian Oil is fully equipped to handle small to large-scale infrastructural projects in the petroleum downstream sector anywhere in the country. Our project teams have independently or jointly as a consortium, have set up depots, terminals, pipelines, aviation fuel stations, filling plants, LPG bottling plants, amongst others. Indian Oils fuel management system to bulk customers offer customized solutions that deliver least cost supplies keeping in mind usage patterns and inventory levels. A wide network of lubricant and fuel testing laboratories are available at major installations which is further backed by sector-wise expertise in the core sectors of power, steel, fertilizer, gas plants, textile mills, etc. Cutting edge systems and processes are designed around one simple belief-to provide valuable customers with an unbeatable edge in their business. Indian Oils supply and distribution network is strategically located across the country linked through a customized supply chain system backed by front offices located in conceivably every single town of consequence. The wide network of services offered byIndianOil, Marketing Division is illustrated in this section, which includes; commercial/reticulated LPG; total fuel management/ consumer pumps; Indian Oil Aviation Service; LPG Business (non-fuel alliances); loyalty programs; retail business(non-fuel alliances) and SERVO technical services.

2.1 OBJECTIVES OF THE PROJECT

The major objectives of the project are: 1. To study the IOCL loyalty program in CHENNAI.
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2. To study the loyalty between the local customers and the company. 3. To study the benefits provided by IOCL to the local customers. 4. To study how IOCL tap local alliance partners for XTRA REWARD Card program. 5. To obtain customer opinions and suggestions at IOC retail outlets and give recommendations to IOC to improve the implementation of XTRA REWARD CARD loyalty program. 6. To analyze the loyalty card benefits of other marketing company. 7. To gain real experience of market that how corporate persons work. How we have to behave, how to present you, how to make deals with clients etc. 8. To check our theoretical knowledge with comparison to the practical market demands. 9. It gives us an opportunity to apply our thinking, idea, knowledge in real market 10. To enhance our skill and gain experience to be a true professional. 11. To check our interpersonal skills. 12. To learn necessary managerial skills and positive attitude towards your work. 13. To get a flavor of Teamwork, Organizational culture, Team dynamics, result orientation, organizational pressure, complexities in achieving desire result 14. To understand the day to day functioning of a department within the organization 15. And at last but not the least for sharpen our career goals for a bright career

2.2 SCOPE O F T H E PR O J E C T : Approach customers.

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 Reactivate the existing inactive customers. Enroll non-existing customers to increase activation rate. Interaction with existing customers for feedback.

2.3 LOYALTY PROGRAMME In the present world where there is intense competition, it becomes very necessary to retain loyal customers. The commercial benefits of loyal customers are well-known by the brand
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managers. The cost of acquiring new customers is always more than retaining an old customer. Loyalty programmes are structured marketing efforts that reward, and therefore encourage, loyal buying behavior (behavior which is potentially of benefit to the firm). Loyalty cards are a system of the loyalty business card. Loyalty cards are promotional marketing tools used by many businesses across several industries. 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 cardholder as a member in a loyalty program. Businesses usually distribute them in stores, online or through the mail. The main purpose of loyalty cards is to encourage repeat purchases from new or existing customers. Cards typically have 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 asked fobs are often used for convenience in carrying and ease of access. It enhances customer loyalty directly by offering rewards as an incentive to shop regularly at a particular supermarket group. Most loyalty cards also generate considerable information for supermarkets, including a customers name, address and purchase preferences. Multiples can use this information to tailor product offerings, promotions, investment and advertising to the needs of their customers, thereby indirectly enhancing loyalty.

Loyalty programs are initiated by businesses with two main goals. The primary goal for most loyalty programs is the acquisition of information relating to their customers, spending habits, while the secondary goal is to actively cultivate loyalty amongst customers to ensure day continued patronizing the businesses. While some companies do reserves the priorities,the above hierarchy holds true for most.
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2.4 XTRAREWARD CARD PROGRAMME

T h e X T R A R E W A R D C A R D pr o g r a m i s a c o m p l e t e s m a r t c a r d b a s e d f l e e t m a n a g e m e n t 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. In just under two years of its launch, Indian Oils XTRA REWARD CARD has emerged as the largest fleet card in the country with the widest retail outlet coverage. Any business entity owning or operating a vehicle fleet can become a member of the XTRA REWARD C A R D p r o gr a m a t a n o m i n a l a n n u a l c h a r g e . E a c h c a r d o w n e r i s i s s u e d a F l e e t C o n t r o l C a r d a n d vehicle-specific Fleet Cards for every vehicle enrolled under the program. For enhanced security, the fleet card transactions are authorized through unique Personal Identification Number (PIN). Moreover, the card can help track each vehicle's movement across remote corners of the country leading to an improvement in vehicle utilization and route compliance. L o y a l t y p r o g r a m w o r k s o n l y w h e n t h e c u s t o m e r i s emotionally attached to the brand. P o s i t i o n i n g o f t h e l o y a l t y p r o g r a m i s v e r y c r i t i c a l s o t h a t these benefits do not appear to be a just discount under the garb o f l o y a l t y t h i s g r e a t l y a f f e c t s t h e c u s t o m e r r et a i l e r r e l a t i o n s h i p a n d g r e a t l y reducing the program to a pure commercial transaction where the customer constantly looks for deals. We need to enroll the right customers. We can recognize the highest value Customers to recognize and reward their value to our organization, we can cultivate high potential customers
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who currently split their purchases between us and our competitors or reach out to those most at risk of churning. Knowing which customer groups are most important to us allows crafting recognition and rewarding strategy that piques their interest. Customers should be involved in the program by constant communication to make them understand what is in for them. Comprehensive surveys should be conducted to find out what should be the ideal w a y t o r e w a r d t h e l o y a l c u s t o m e r s a n d r e t a i n t h e m f or t h e life time. Activities like checking point balances online, responding to targeted offers, using kiosks, bidding on auction i t e m s e n t e r i n g sweepstakes and so on. Such participation is a sure sign of increasing value to the customers.

2.5 STUDY OF THE EXISTING SYSTEM: PROCESS of XTRAREWARDS PROGRAMME:

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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. These points can be redeeming for Fuel/lube or some exciting gifts. The customer earns 1 point for the purchase of Rs. 75 fuel . The points are added in cumulative nature that is if a customer fills his tank with Rs. 50 petrol the charge slip would show Zero points but the next time when the customer fills his tank with Rs. 25the charge slip would show 1 point earned. On 334 point customer get Rs 100 worth of fuel. One of the unique features of this card is that the company has ties ups with different alliance partners. Once the customer swaps his card he receives a charge slip which states his points earned and his total accumulated points. With this charge slip he also receives discount at one of the alliance partners outlet.

2.6 BENEFITS Better credit proposition. Higher value of reward points.

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 Attractive rewards program. Lost card liability cover. Special discounts from our alliance partners Round the clock Customer Helpline Number 1800 22 8888 (Toll Free) or STD no. 022-28449733.Lost Card Liability subjected to misuse of the card within 24 hours from lodging the loss complaint with XTRA REWARD ( 24 HOUR CUSTOMER HELPLINE) CLAIM ENTITLEMENT Only ACTIVE CARDS as on date of lost/stolen/damaged you should notify us for blocking the card through web site www.xtrarewards.com or IVRS Help line or SMS to 9223052305 . You should convey the card number, your unique identifier and PIN. The SMS format is <BCARD> <Card Number> <Date Of Birth DD/MM/YYYY> <PIN>. Corporate should replace the date of birth with <date of formation of company/MM/YYYY> in the said SMS format. All the three option will generate and convey a reference note to you.

3.1 DATA COLLECTION METHOD Types of Data and Data Collection:

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Data that I have received for making the project is a combination of both primary and secondary data. Primary Data The data collected through questionnaire based survey from the retailers and customers of Chennai. The name of the retail outlets of Indian oil from where these data are collected are: 1. Kamadhenu Agencies,Alwarpet 2. Amman Agencies,Medavakkam 3. Sivagami Agencies,Egmore 4. Muneeswar Agencies,Velachery 5. Sri Balaji Agencies,Mylapore 6. Rajesh Agency,Santhome 7. Divine Enterprises,T-nagar 8. Thanya Enterprises,Annanagar 9. Vasanth Enterprises,Kottivakam 10.Alfa Gasoline,poonamalle 11.Raj Enterprises,Kilpauk 12.Sri Hanisha Service Station,Kottivakam

Secondary Data Companys annual reports Companys journal and magazines

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Companys website Companys leaflets Companys pamphlets Products and sales report Sampling plan The sample size for retailer is 12 and that of customers is 200 of Chennai and nearby region.The respondents are chosen through cluster sampling universe elements are chosen in group rather than individually. Where as convenience sampling is based on opportunism.

3.2 QUESTIONNAIRE FOR CUSTOMERS

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1. Name of the Customer; 2. Age; Mob;

3. Do you visit the IOCL fuel station regularly? a) YES. b) NO. c) Sometimes 4. Do You Have XR Card? 5. If No, Reason?
____________________________________________________________________________________

Card no;

6. If Yes, Complaints And Suggestions?

________________________________________________________________________________

7. From where did you come to know about the Xtra Reward card program? a) Advertisement. b) Newspapers. c) Journal/Magazines. d) IOCL Retail Outlets 8. From Where You Bought The Card? 9. Do you use your Xtra Reward Card regularly? a) YES b) NO C) SOMETIMES 10. How would you rate the overall quality of the program? Excellent Good Fair Poor

11. How would you rate the knowledge of the staff? Excellent Good Fair Poor

12. How willing are you to recommend this card to others? Willing unwilling

13. What improvements do you want in the Xtra Reward card loyalty program? a) Better services to the card holders. b) More attractive offers. c) Others

3.3DATA FROM CUSTOMERS

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40

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7. How willing are you to recommend this card to others?

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3.4 FINDINGS
1. Most of the customers were very supporting and welcoming .They had Good will for IOC.
2.

Customers who showed interest appreciated the offer provided and were eager to continue talks with IOC. They were also wanted to know more about the program. Some of the prospective customers were not aware of Indian Oil XTRAREWARDCARDLoyaltyP r o g r a m . H e n c e t h e y w e r e n o t interested.Also due to the increase in the oil prices they w e r e apprehensive a little bit.

3.

4. Some of the customers facing technical difficulties while using the card since they are not able to understand its operations clearly. 5. Some customers have no clear idea about its benefit and they are happy to use their old traditional way of purchasing oil and lubricant.

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6. Some of the customer considers it as very complex and the benefit is not so high. 7. 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. 8. Xtra reward card scheme is not available at all the retail outlet of Indian oil in so at a time it creates problem. 9. 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. 10. At some places pump attendants are also not interested in providing this service. 11. There are no pamphlets available at pumps, which could give a brief idea about the loyalty program. 12. There is no dedicated person for collecting the forms. So, there is a large backlog of forms. 13. There is Lack of internet facility at some of the outlets and also problem with poor network service. 14. There is no any benefit for customers with small vehicle. 15. Corporate customers are not very interested as there is no any special benefit for them.

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3.5RESULTS AND ANALYSIS ISSUES AND PROBLEMS During the peek hours the server works slowly which makes customer Waiting at the pump. Normally customers dont get time to swipe the card. Forms were not filled appropriately due to this card may not work properly. The cost of the card is high and the returns is not that much attractive. There are no any other benefits for RO attendees. Magnetic strip gets damaged while swiping the card.

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3.6 RECOMANDATIONS 1. Most of the people are not aware regarding the XTRAREWARDS, IOC should try to create awareness regarding the program by means of more aggressive advertising. 2. The customers facing any kind of difficulties must be assisted promptly and their problem must be considered with due care. 3. XTRAREWARD card banners should be put at proper location with easy visibility. 4. 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. 5. The facilities should be made available to more retail outlet. 6. 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. 7. 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. 8. 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. 9. Pamphlets must be available at pump so that customers get a brief idea about the program.

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10. All the pamphlets and booklets are in English, hence most of the customer not able to understand. It should be in regional language (Tamil) for easy understanding. 11. The website for XTRAREWARD needs regular update with more user friendly access and details of news as well as upcoming offers. 12. The poor network service at retail outlet need to improve urgently. 13. 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 other reason. 14. XTRAREWARD program should be started at all other locations as early as possible. 15. Facility for vehicle tracking and to know the detail of existing balance by customer should also made available through sms service 16. Need for more credit partner to provide wide credit service to the customers.

WHAT CUSTOMERS SUGGEST? The point system is not useful for the two wheelers or they want card free or in low cost. WHAT PUMP ATTENDERS SUGGEST?

They should be given some benefits in terms of incentives for selling the cards.

When customer comes back to them with some problems, they dont have any one to talk directly.

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4.1SWOT ANALYSIS OF IOCL External environment Opportunity IOCL has much opportunity in the present market conditions. This i s b e c a u s e t h e p e t r o l e u m pr o d u c t s h a v e b e c o m e a n e e d f o r everyone and still contains a lot of scope for customization. The various opportunities are listed below. Since the company has the maximum number of outlets and also the maximum number of refineries in I n d i a , i t can very easily go for extension at any point of time, and can i n t r o d u c e a n y n e w p r o d u c t s , which will get support from its huge market network. The company can make the buying process easier for the customers, by implying many more schemes in the range of XTRAPOWER Fleet Card. The company can think over the issue to build its own pipelines, so that
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it will be an independent player and it will also support its aviation fuel supply. Company has a great scope in E&P. It is already involved in E&P but only in a very limited scale. Threats: Since the company is the market leader in the field, so have maximum threats from the other players and many other issues. The lists of threats are given below. The foreign players with more advanced technology are the biggest threat for the company. The crude oil supply is also a big issue in front of the company, because the company cannot fix its price and so, some time had operated in loss also It is the biggest problem because the maximum part of their crude is been imported. In future the market will welcome more private players, which will eat up its market share. If the Govt. Policies allow the private players to set their own price, the private player can seriously harm the market share of IOC Internal Environment: Strengths I O C c o n t r o l s 1 0 r e f i n e r i e s , b y v i r t u e of w h i c h i t h a s a t o t a l s h a r e o f a r o u n d 4 0 % o f I n d i a s o v er a l l refining capacity. IOC has also acquired equity stakes in CPCL and BRPL, and in 2001, these refineries became subsidiaries of IOC.58% of IOCs refining capacity is located in the Northern and Western regions, which are high demand and high growth area. Although its refineries are located the interior of the country and not near the major ports IOC has Avery strong distribution network by virtue of having a share of 48% in the countrys product pipelines. The total capacity of these product pipelines is 49.79 MMT.I O C a l s o a c q u i r e d m a n a g e m e n t c o n t r o l of the marketing company IBP, thereby strengthening its position in these activities. It also has a dominant sha
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re in all segments in terms marketing network includes 19830 retail outlets, 8000

infrastructure. LPG distributors,

Its and

6492kerosene/LDO dealers. B y v i r t u e of e n t e r i n g i n t o e x t e n s i v e j o i n t v e n t u r e a g r e e m e n t s , a n d o f i t s o w n i n i t i a t i v e a s w e l l , t h e company has a presence in various other related activities such as petroleum storage, pipelines, lube additives, exploration, Petrochemicals, gas, training and consultancy, etc. T h e c o m p a n y h a s a l r e a d y e n t e r e d o v e r s e a s m a r k e t s s u c h a s S r i L a n k a , M a l d i v e s , a n d O m a n a n d i s presently considering entering Turkey through a JV. The company is in talks with Caliak of Turkey tos e t u p a 1 0 m i l l i o n T P A g r a s s r o o t r e f i n er y w i t h a n i n v e s t m e n t o f $ 2 b i l l i o n a n d e s t a b l i s h e s r e t a i l business. IOC is also weighing the possibility of entering Indonesia.IOC has also started exploring the overseas markets for increasing its scope of operations. Its interests include downstream activities in Sri Lanka, Maldives, Oman, and Nepal; interest in the lubes business in Maldives, Dubai, Bangladesh, SriLanka, etc; among others Weakness: The company is the market leader in the industry, but still it had many Weaknesses. The list is given below. The major weakness for the company is the R&D. The company starts working on it. The petrochemical product development technology is another weakness for the company.

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 The technological drawback, as compared to some major foreign player is another weakness for the company

4.2 LEARNING EXPERIENCE: This project has been a great learning experience for me. It has provided me learning opportunities about loyalty program. By handling the project under guidance of my respected officers I have gained knowledge about organizational culture and environment. On the whole, I am able to understand the prospective and current trends of the market and able to understand the psychology of customers. In the beginning of the project I was bit uncomfortable as I was unfamiliar about marketing, but this project has made me realize that to reach heights of success and position you have to start from the beginning.

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4.3 CONCLUSIONS: It was a great opportunity for us to work with Indian Oil Corporation limited and learn about loyalty programmes and other organizational operations under the observation and guidance of our officers. This report gives a brief review about the Indian oil loyalty programme and its operational process. As per our experience, existing programmes have a good customer base, service and infrastructure, and loyalty programmes have proved a major factor in increasing the sales as well as brand loyalty and preference. To generate more turnovers from loyalty programmes, some modifications are required in terms and conditions and operational structure of existing programmes.

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BIBILOGRAPHY

www.iocl.com www.xtrarewards.com www.wikipedia.com

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