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PROECT REPORT

On

CRM AND LOYALITY PROGRAM IN IOCL

Submitted in partial fulfillment of requirements for

Bachelors of Business Administration

OIL AND GAS MARKETING

Submitted to (Mentor) : Submitted by

Dr. Anita Sengar Chetan Chauhan


BBA(Oil & Gas Marketing)
SAP ID- 500041050
Enrollment NO- R170214054
CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the dissertation report on CRM AND LOYALITY PROGRAM IN IOCL
completed and submitted to University of Petroleum and Energy Studies, Dehradun by CHETAN
CHAUHAN in partial fulfillment of the provisions and requirements for the award of degree of
BACHELORS OF BUSINESS ADMINISTRATION), 2014-2017 is a bonafide work carried by the
scholar under my supervision and guidance.

To the best of my knowledge and belief the work has been based on investigation made,
data collected and analyzed by the scholar, and this work has not been submitted anywhere else for
any other university or institution for the award of any degree/diploma.

Dr. Anita Sengar


Assistant Professor

(Lecturer CMES)

(UPES, Dehradun)
ACKNOWLEDGEMENT

First and foremost, I would like to thanks my respective mentor Dr. Anita Sengar
(AssistantProfessor - CoMES) for his valuable guidance and encouragement throughout my
research project on CRM AND LOYALTY PROGRAM IN IOCL. His expertise, enthusiasm,
and dedication for work have been constant source of motivation for me.

I would like to express my deep gratitude to University of Petroleum and Energy Studies
for extending the opportunity of undergoing the project and providing with all necessary resources
and expertise needed for completion of the project.

I also convey special thanks to Mr. Nagendra Singh (Sr. Division Retail Sales Manager)
IOCLfor his extended support throughout the project.

CHETAN CHAUHAN

Enroll no - R170214054

Sap Id - 500041050

BBA (Oil & Gas Marketing)


Introduction to the project:

In the present world where there is intense competition, it becomes very necessary to retain loyal
customers. The commercial benefits of loyal customer are well known by the brand managers the
cost of acquiring a new customer is always more than retaining an old customer. Loyal customer
are also important because they provide the consistency of volume critical for stocking and
managing just in time inventory to maintain the consistency of customer demand during crisis
which is required to run any retail business. There are also customers. Which are strong
advocates of brand and are always willing to forgive an occasional lapse all of these are
compelling reasons that retailers are on a quest for customer loyalty and are increasingly looking
at implementing loyalty programs or loyalty cards of some from? With increasing oil price and
competition increasing at a rapid pace, many oil- marketing companies are finding it difficult to
operate profitable in India. Indian oil corporation ltd, is no exception to this reality, thus to
reaction its existing customer, many new imitative have been adopted by the organization. One
such big idea is extra power loyalty program.

In this project I have been assigned IOCL, which are participating in the extra power loyalty
program, my task is to check what the customer relationship management activities strategies are
used by IOCL and at the same time obtain the customer opinions and suggestion about loyalty
program.
INTRODUCTION TO CRM
CUSTOMER RELATIONSHIP MANAGEMENT

A CRM is a collection of people, processes, software, and internet capabilities that helps an
enterprise manage customer relationship effectively and systematically. The goal of CRM is to
understand and anticipate the needs of current and potential customer to increase customer
retention and loyalty while optimizing the way product and services are sold.

CRM stands for Customer Relationship Management. It is a strategy used to learn more about
customers' needs and behaviors in order to develop stronger relationships with them. After all,
good customer relationships are at the heart of business success. There are many technological
components to CRM, but thinking about CRM in primarily technological terms is a mistake.
The more useful way to think about CRM is as a process that will help bring together lots of
pieces of information about customers, sales, marketing effectiveness, responsiveness and
market trends

The objective is to capture data about every contact a company a company has with a customer
through every channel and store it in the CRM system to enable the company to truly
understand customer action. CRM software helps an organization build a database about its
customer that management, sales people, customer service provider and even customer can
access information to access customer needs with product andoffering.

Marketing Automationis the most comprehensive campaign management solution


available. It provides everything needed to turn raw, disparate customer data into profitable
marketing campaigns all the way through inception, execution andmeasurement.

Marketing Optimizationapplies sophisticated mathematical approaches to optimize


marketing campaign ROI given limited budgets, channel capacities and other organizational
constraints.

The idea of CRM is that it helps businesses use technology and human resources to gain insight
into the behavior of customers and the value of those customers. If it works as hoped, a business
can:
Provide better customerservice
Make call centers moreefficient
Cross sell products moreeffectively
Help sales staff close dealsfaster
Simplify marketing and salesprocesses
Discover newcustomers
Increase customerrevenues

ARCHITECTURE OFCRM

There are three parts of application architecture of CRM:

1. Operational-automationtothebasicbusinessprocesses(marketing,sales,service)
2. Analytical - support to analyze customer behavior, implements business intelligence
aliketechnology
3. Collaborative - ensures the contact with customers (phone, email, fax, web, sms, post,
inperson)

Operational CRM

Operational CRM means supporting the so-called business processes, which include customer
contact (sales, marketing and service). Tasks resulting from these processes are forwarded to
employees responsible for them, as well as the information necessary for carrying out the tasks
and interfaces to back-end applications are being provided and activities with customers are
being documented for further reference.

According to Gartner Group, the operational part of CRM typically involves three general areas
of business:

Sales Force Automation ( SFA): SFA automates some of the company's


critical sales and sales force management functions, for example, lead/account
management, contact management, quote management, forecasting, sales administration,
keeping track of customer preferences, buying habits, and demographics, as well as sales
staff performance. SFA tools are designed to improve field sales productivity. Key
infrastructure requirements of SFA are mobile synchronization and integrated product
configuration.

Customer Service and Support (CSS ): CSS automates some service


requests, complaints, product returns, and information requests. Traditional internal help
desk and traditional inbound call-center support for customer inquiries are now evolved
into the "customer interaction center" (CIC), using multiple channels (Web, phone/fax,
face- to-face, kiosk, etc). Key infrastructure requirements of CSS include computer
telephony integration(CTI)whichprovideshighvolumeprocessingcapability,andreliability.

Enterprise Marketing Automation (EMA): EMA provides information


about the business environment, including competitors, industry trends, and macro
environmental variables. It is the execution side of campaign and lead management. The
intent of EMA applications is to improve marketing campaignefficiencies. Functions
include demographic analysis, variable segmentation, and predictive modeling occurs on
the analytical (Business Intelligence)side.

Analytical CRM

In analytical CRM, data gathered within operational CRM and/or other sources are analyzed to
segment customers or to identify potential to enhance client relationship.

Analysis of Customer data may relate to one or more of the following analyses:

1. Contact channeloptimization
2. ContactOptimization
3. CustomerSegmentation
4. Customer Satisfaction Measurement /Increase
5. Sales CoverageOptimization

6. PricingOptimization
7. ProductDevelopment
8. ProgramEvaluation

Data collection and analysis is viewed as a continuing and iterative process. Ideally, business
decisions are refined over time, based on feedback from earlier analysis and decisions.
Therefore, most successful analytical CRM projects take advantage of a data warehouse to
provide suitable data.
Collaborative CRM

Collaborative CRM facilitates interactions with customers through all channels (personal, letter,
fax, phone, web, e-mail) and supports co-ordination of employee teams and channels. It is a
solution that brings people; processes and data together so companies can better serve and retain
their customers.

Collaborative CRM provides the following benefits:

Enablesefficientproductivecustomerinteractionsacrossallcommunicationschannels
Enables web collaboration to reduce customer servicecosts
Integrates call centers enabling multi-channel personalcustomer interaction
Integrates view ofthe customer while interaction at the transaction level

BENEFITS OF CRM SYSTEM

Give customer-facing employees the best tools available

Give your sales and service professionals the chance to deliver stellar customer service every
time they are in a call or at a customer site. With optimally configured software solutions from
Microsoft Business Solutions, they can find information quickly, answer customer questions
satisfactorily, and ensure that your business fulfills or exceeds customer commitments.

MAJOR OBJECTIVE OF THE PROJECT ARE -


To provide the effectiveness of loyalty program adopted by IOCL retail outlet.
To understand and identify the CRM practices followed by the IOCL retail outlet.
To study the loyalty between the local customer and the company.
To study the benefit provided by IOCL to the local or loyal customers.
To obtain customer opinions and suggestions at IOCL retail outlet and give
recommendation to IOCL to improve the implementation.
INTRODUCTION TO IOCL

INDIAN OIL CORPORATION LTD PRODUCT

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 Servicetoworld-
classstandardsisaPhilosophythatIndianOiladherestosoastoensurethat 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 inventorymanagement.

The Retail Brand template of IOCLconsists of Xtra Care (Urban),Swagat (Highway) and Kissan Seva
Kendras (Rural). These brands are widely recognized aspioneering brands in the petroleum retail segment.
Indian Oils leadership extends to its energy brands - Indane LPG,
SERVOLubricants,AutogasLPG,XtraPremiumBrandedPetrol,XtraMileBrandedDiesel,Xtra Power Fleet Card,
Indian Oil Aviation and Xtra Rewards cash customer loyalty program me.

OVERVIEW OF INDIAN OIL COROPORATION LTD .

Indian Oil Corporation (IOCL), established in 1959, is engaged in exploration and production
and marketing of oil. It is Indias largest company sales wise with a turnover of Rs 2,47,479
crore ($ 59.22 billion).IOCL has sub diaries namely Indian oil Technologies, Chennai Petroleum
Corporation, Bongaigaon Refinery & Petrochemicals, Indian Oil (Mauritius) and LankaIOCL.

Out 19 refineries, IOCL owns and operates 10 with a combined capacity of capacity of 60.2
million metric tones per annum (MMTPA), i.e. 1.2 million barrels per day. It has 166 bulk
storage terminals and depots, 101 aviation fuel station and 89 Indane bottlingplants.
The refining major has a countrywide network of petrol and disel stations with 17,600 retail
outlets. Its Indane cooking gas network has apresence in 50 million households through its
distribution network of 5,000 distributorsIt provides spectrum of petroleum products through its
retail outlets like Xtra Care (Urban), Swagat (Highway) and Kisan Seva Kendras (Rural).

IOCL provides auto gas, aviation turbine fuel, bitumen-a binder used for road construction, high
speed diesel, bulk industrial fuels like furnance oil, Indane gas, Servo Lubricants and greases and
special products like benzene and surplur.

It has created brands like Indane LPG, Servo Lubricants, Auto gas LPG, Xtra Premium Branded
Petrol, Xtra Mile Branded Diesel, and Xtra Power Fleet Card.

IOCL and GAIL have signed a memorandum of understanding for cooperation in setting up a Rs
10,000 crore petroleum plant at Barauni in Bihar.Indian Oil launched its lubricant brand Servo in
Oman. Servo has 500 different grades and 1200 varied formulations.IOCL is the highest ranked
Indian company In Fortune Global 500 list. It is 18th largest petroleum company in the world.
It is Indias most trusted fuel pump brand as per the survey conducted by ET brand equity and
AC Nielsen. It has received National Award for Innovation in Implementing Business
Continuity for SAPR/3 Environment from the Government ofIndia.

VISION AND MISSION OF INDIAN OIL CORPORATION LTD

Vision:

A major, diversified, trans-national, integrated energy company, with national leadership and a
strong environment conscience, playing a national role in oil security & public distribution

Global Compact Principles addressed in our MISSION statement:

To foster a culture of participation and innovation for employee growth andcontribution.

To cultivate high standards of business ethics and Total Quality Management for a strong
corporate identity and brandequity.

To help enrich quality of life of the community and preserve ecological balance and
heritage through a strong environmentconscience.

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
costreduction.

To maximize creation of wealth, value and satisfaction for thestakeholders.

To attain leadership in developing, adopting and assimilating state-of- the- art technology
for competitiveadvantage.

To provide technology and services through sustained Research and 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 brandequity.

To help enrich the quality of life of the community and preserve ecological balance and
heritage through a strong environmentconscience.

1) INDANEGAS:-

Indane is today one of the largest packed-LPG brands in the world and has been conferred the
coveted consumer super brand; status by the super brands council of India.

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, indane
is today an ideal fuel for modern kitchens.

With the status of an exclusive business vertical within the corporation the indane network
delivers 1.2 million cylinders a day of the doorsteps of the over 53 million households, making
Indian oil the second largest markets of LPG globally, after SHV gas of the Netherlands, indane
is available in compact 5kg cylinders for rural, hilly and inaccessible areas, 14.2kg cylinders for
domestic use, and 19 kg and47.5kg for commercial and industrial use.

1) AUTOGAS:

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

Auto Gas is a gas at atmospheric pressure and normal temperatures, but it can be liquefied when
moderate pressure is applied or when the temperature is sufficiently reduced. This property
makes the fuel an ideal energy source for a

wide range of applications, as it can be easily condensed, packaged, stored and utilized. When
the pressure is released, the liquid makes up about 250 times its volume as gas, so large amounts
of energy can be stored and transported compactly. The use of LPG as an automotive fuel has
become legal in India with effect from April 24, 2000, albeit within the prescribed safety terms
and conditions. Hitherto, the thousands of LPG vehicles running in various cities have been
doing so illegally by using domestic LPG cylinders, a very unsafe practice. Using domestic LPG
cylinders in automobiles is still illegal. The fuel is marketed by Indian Oil
under the brand name Auto Gas "Indian Oil
has setup 350 Auto LPG Dispensing Stations (ALDS) covering 192 cities acrossIndia

1) Naturalgas:

Drawing on its vast experience and carefully nurtured skill sets, Indian Oil has made successful
forays in diverse areas such as Natural Gas, Petrochemicals, Exploration & Production,
Renewable Energy, etc.
Over the years, 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. Natural Gas has significant cost advantages
over fuels such as Naphtha and commercial LPG. Demand for Natural Gas in India is primarily
driven by the fertilizer and power sectors, which account for almost two-third of the countrys
gasconsumption.

Automotive gasoline and gasoline-oxygenate blends are used in internal combustion spark-
ignition engines. These spark ignition engine fuels are primarily used for passenger cars. They
are also used in off-highway utility vans, farm machinery and in other spark ignition engines
employed in a variety of service applications

Gasoline is a complex mixture of relatively volatile hydrocarbons that vary widely in chemical &
physical properties and are derived from fractional distillation of crude petroleum with a further
treatment mainly in terms of improvement of its octane rating. The hundreds of individual
hydrocarbons in gasoline range from c4 to c11.

1) DIESEL/GASOIL:

Diesel is used in diesel engines, a type of internal combustion engine. Rudolf Diesel originally
designed the diesel engine to use coal dust as a fuel, but oil proved more effective. Diesel
engines are 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 & pumping
applications. The diesel engine is high compression, self-ignition engine. Fuel is ignited by the
heat of high compression and no spark plug isused.

2) ATF/JETFUEL:

Indian Oil Aviation Service is a leading aviation fuel solution provider in India and the most-
preferred supplier of jet fuel to major international and domestic airlines. Between one sunrise
and the next, Indian Oil Aviation Service refuels over 1500 flights from the bustling metros to
the remote airports linking the vast Indian landscape, from the icy heights of Led (the highest
airport in the world at 10,682 ft) to the distant islands of Andaman & Nicobar. Jet fuel is a
colorless, combustible, straight-run petroleum distillate liquid. Its principal uses are as jet engine
fuel. The most common jet fuel worldwide is a kerosene-based fuel

IOCL SERVICES

Indian Oil has wide-ranging expertise in setting up and operating Greenfield refineries and
Brownfield expansions. It has pioneered pipeline transportation know how in India, and has over
four decades of experience in putting up marketing infrastructure across the sub-continent, to
reach petroleum products to millions of people every day. Backed by cutting edge R&D that
offers innovative products, technologies and services covering the entire gamut of downstream
operations. Indian Oil has been lending its expertise for nearly two decades to various countries
in several areas of refining, marketing, transportation, training and R&D. These include Sri
Lanka, Kuwait, Bahrain, Iraq, Abu Dhabi, Tanzania, Ethiopia, Algeria, Nigeria, Nepal, Bhutan,
Maldives, Malaysia and Zambia. Indian Oils capabilities in the downstream sector of operations
in the oil sector include; Technical and Consultancy Services, Operation & Maintenance,
Techno-Economic feasibility/special studies, Turnaround Maintenance planning, monitoring &
execution, Inspection, Quality Control: benchmarking, Shipping and Commercial, Logistics,
Research & Development, Safety and Industrial hygiene, Quality Auditing/ Management,
Materials Management,Training.

Indian Oil's Retail Brand template of Xtra Care (Urban), Swagat (Highway) and Kisan Seva
Kendras(Rural) are widely recognized as pioneering brands in the petroleum retail segment.
Indian Oil's leadership extends to its energy brands - Indane LPG, SERVO Lubricants, Autogas
LPG, XtraPremium Branded Petrol, Xtra Mile Branded Diesel, Xtra Power Fleet Card, Indian
Oil Aviation and Xtra Rewards cash customer loyalty programme.
Strengths:-

IOCL controls 10 refineries, by virtue of which it has total share of around 47% of
India overall refiningcapacity.
Has around 50% petroleumproducts

Huge distribution network throughretailing

Accounts for a 47% share in the petroleum products market, 34.8% share in refining
capacity and 67% downstream sector pipelines capacity inIndia.
Has over 35,000employees

Loyalty programs like XTRAPOWER Fleet Card Program is aimed at Large


FleetOperators.

Weakness:-

The company is the market leader in the industry, but still it had many weaknesses
the list is givenbelow.

Legalissues

Employeemanagement

Bureaucracy

Volatility in the crude market & subsidyburden


Opportunity:-

The IOCLL has much opportunity in the present market condition. This is because the petroleum products
have become a need for everyone and still contains a lot of scope for customization.
Thevariousopportunitiesarelistedbelow.

Increasing fuel/oilprices

Increasing natural gasmarket

More oil welldiscoveries

Expand exportmarket

Threats:-

Sincethecompanyisthemarketleaderinthefield,sohavemaximumthreatsfromtheother 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 ofIOCL.

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LITERATURE REVIEW

CRM

CRM has been one of the most talked subjects recently in corporate circles. It is a strategy
used to learn more about customers needs and behaviors in order to develop stronger
relationships with them. Over all good customer relationships are at the heart of business success.
The concept of CRM has been a core concept which has attracted all facts of business. CRM has
relevant and demanding applications in service marketing. Retail banking and financial services
have also not been an exception to this phenomenon.

CRM in the field of retail banking has attracted much of researchers and practitioners.
There has been continuous research in the field of CRM and its applications in banking and
financial services. But in India, research in the field of relationship marketing has not taken off to
the expectation and is still in the infant stage when compared to other countries in the west.
However, the available contribution from the following authors and researchers in India and other
parts of the world in the area of CRM in retail banking is worth mentioning. Hence, the empirical
works relating to relationship management of the review is presented in this chapter.
Jagan Mohan Rao (1993)in Financial appraisal of Indian Automotive Tyre Industry
studied the financial appraisal of Indian automotive tyre industry.The study was intended to
probe into the financial condition-financial strength and weakness-of the Indian tyre industry. To
this end a modest attempt has been made to measure and evaluate the financial performance
through inter-company and inter-sectoral analysis over a given period of time (1981-1988). The
main findings are that fixed assets utilization in many of the tyre undertakings was not as
productive as expected and inventory was managed fairly well. The tyre industrys overall profit
performance was subjected to inconsistency andineffective.

Kallu Rao (1993)has made a study intercompany financial analysis of tea


industry-retrospect and prospect. An attempt has been made in this study to analyze
the important variables of tea industry and projected future trends regarding sales
17
and profit for the next 10 year periods, with a view to help the policy makers to take
appropriate decisions. Various financial ratios have been calculated for analyzing
the financial health of the industry. The forecast of sales and profits of tea
manufacturing companies shows that the Indian tea industry has bright prospects.
The recent changes in the Indian economic policies will boost up the foreign
exchange earnings, which will benefit those companies, which are exporting to hard
currencyareas.

Vijayakumar and Venkatachalam (1995)in Working Capital and


Profitability - An Empirical Analysis studied the impact of working capital on
profitability in sugar industry of Tamil Nadu by selecting a sample of 13 companies;
6 companies in co-operative sector and 7 companies in private sector over the period
1982-83 to 1991-92. They applied simple correlation and multiple regression analysis
on working capital and profitability rations. They concluded through correlation and
regression analysis that liquid ratio,inventory turnover ratio, receivables turnover
ratio and cash turnover ratio had influenced the profitability of sugar industry in
TamilNadu.

Pai, Vadivel and Kamal (1995)studied the diversified companies and


financial performance: A study. An effort was made to study the relationship between
diversified firms and their financial performance. Seven large firms having different
products-both related and otherwise-in their portfolio and operating in diverse
industries were analyzed. A set of performance measures/ rations and employed to
determine the level of financial performance. The results reveal that the diversified
firms studied have been healthy financial performance. However, variation in
performance from one firm to another has been observed and statisticallyestablished.

Vijayakumar (1996)in Assessment of Corporate Liquidity a


discriminate analysis approach has revealed that the growth rate of sales,
leverage, current ratio, operating expenses to sales and vertical integration are the
important variables which determine the profitability of companies in the sugar

18
industry. Further, the author has studied the short-term liquidity position in
twenty-eight selected sugar factories in co-operative and private sectors. A
discriminate analysis has been undertaken to distinguish the good risk companies
from poor risk companies based on current and liquidity rations. Discriminating
Z scores have been calculated with the help of discriminate function and
according to the Z scores the companies are ranked in the order ofliquidity.

Sidhu and Gurpreet Bhatia (1998)studied the factors affecting


profitability in Indian textile industry. In this study an attempt was made to
identify the major determinants of profitability in Indian textile industry with the
help of empirical data taken from Bombay Stock Exchange Directory for the year
1983. To find out the factors affecting profitability, regression analysis had been
applied. From the analysis, there was no clear-cut relationship between current
profitability and capital intensity. The age of the firm was having generally
negative but statistically insignificant relationship with current profitability which
points towards the fact firms in Indian textile industry are absolute and need
modernization.

Vijayakumar (1998)has examined the determinants of corporate size,


growth and profitability - the Indian experience. To meet the objectives of the study,
Indian public sector industries were selected. The date relating to size, growth and
profitability were collected from their annual reports published by the Bureau of
Public Enterprises (BPE), Government of India. The study covers the period from
1980-81 to 1995-96. The technique of average, correlation and linear and linear and
multiple regression analysis has been used in this study. Inter - industry analysis
reveals that the growth is positively and significantly associated with the size in all
the industry groups excepttextiles.

Govinda Rao and Mohana Rao (1999)in Impact of working capital on


profitability in cement industry A correlation analysis, analyze the impact of
19
profitability on working capital in cement industrial units in India. Ten variables on
working capital ratios have a close interaction with profitability measures viz.,
current ratio, debt equity ratio, cash position ratio, working capital turnover ratio,
inventory turnover ratio, debtors turnover ratio, cash turnover ratio, current assets
turnover ratio and average collection period are selected for analysis. The inter-
relationship are to be studied with the help of Karl-Pearsons co-efficient of
correlation technique, by arranging the correlation of one variable with each other
variable in the form of matrices which are a triangular and symmetrical about the
principal diagonal. On overall basis out of 10 variables with PBDIT, 3 variables
showed a significant co-efficient and seven exhibited insignificant relationships. Out
of the 10 variables, 5 variables showed negative association which the others
showed positiverelationships.

Sudarsana Reddy (2003)studied the Financial Performance of Paper


industry in AP. The main objectives set for the study are to evaluate the financing
methods and practices to analyze the investment pattern and utilization of fixed assets,
to ascertain the working capital condition, to review the profitability performance and
to suggest measures to improve the profitability. The data collected have been
examined through ratios, trend, common size, comparative financial statement analysis
and statistical tests have been applied in appropriate context. The main findings of the
study are that A.P. paper industry needs the introduction of additional funds along with
restructuring of finances and modernization of technology for better operating
performance.

Ram kumar Kakani, Biswatosh Saha and Reddy (2003) attempts to


provide an empirical validation of the widely held existing theories on the
determinants of firm performance in the Indian context. The study uses financial
statements and capital market data of 566 large Indian firms over a time from of
eight years divided into two sub-periods (1992-96 and 1996- 2000) and to study
Indian firms financial performance across various dimensions viz., shareholder
value, accounting profitability and its components, growth and risk of the sample
20
firms. The study found that size, marketing expenditure and international
diversification had a positive relation with a firms market valuation. The study also
found that a firms ownership compositions, particularly the level of equity
ownership by domestic financial institution and dispersed public shareholders, and
the leverage of the firm were important factors affecting its financialperformance

21
.

RESEARCH METHODOLOGY

RESEARCH PROBLEM:

Every project work is based on certain methodology, which is a way to


systematically solve the problem or attain its objectives. It is a very important
guideline and lead to completion of any project work through observation, data
collection and data analysis.

PROBLEM FORMULATION:

To study the CRM AND LOYALITY PROGRAM IN IOCL

RESEARCH OBJECTIVE:

The study is conducted with the following objectives:


1. To study how the loyal of employee in IOCL.
2. To study how the customer relation develop in IOCL

DATA COLLECTION:

Data collection has been done through:

Primary Data, which includes:

questionnaire
interviews
observations

22
Secondary Data, which includes:

Secondary data is collected from previous researches and literature to fill in the respective project.
The secondary data was collected through:

Text Books
Articles
Journals
Websites
RESEARCH DESIGN:

Descriptive research design has been used as it includes various types of fact-findings and inquiries
which are done through survey which includes questionnaire, interviews.

SAMPLING DESIGN:

SAMPLING TECHNIQUE

Convenience Sampling has been used as it attempts to obtain a sample of convenient elements and
respondents are selected because they happen to be in the right place at the right time.

SAMPLE SIZE: Accordingly, 20 officers and 40 workers have been selected at random from
all the departments of the organization and feedback forms (questionnaire) have been obtained. The
data has been analyzed in order to arrive at present training practices in the organization.

23
LOYALITY PROGRAM AN INTRODUCTION

Loyalty programs are structured marketing efforts that reward, and therefore encourage,
loyalbuyingbehavior-behaviorwhichispotentiallyofbenefittothefirm.Earningcustomer loyalty goes beyond
gaining customer satisfaction. Loyal Customers evangelize the brand by sharing their satisfactory experience
with their friends and colleagues. A great product or service is the starting point for customer
loyalty. Great marketers architect loyalty programs from day one. 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 they continue patronizing the business. While some
companies do reverse these priorities, the above hierarchy holds true for most. Loyalty programs
may offer benefits in a number of different ways. Many loyalty programs offer sustained discount
(such as 10%) for a period of time - perhaps a year, perhaps for the life of the business. Others offer a
discount once certain criteria have beenmet.
for example, a 20%discount on a single purchase once a customer has spent Rs 2000 at the business. Still
others offer points which may then be redeemed for products which may or may not be directly
related to the business. 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
flyermiles.Intheseloyaltyprograms,oneaccruespointsbyflyingontheairlineandthencashesin' the points in
exchange for tickets, upgrades, or even third-party benefits. In the past decade, many nonairline businesses
have combined their own loyalty programs with those of the airlines, offering frequent flyer miles in
exchange for everything from telephone usage to purchasinggasoline.

Loyalty programs have gained in popularity immensely in the past fifteen years, in no small part due to the
development of a culture of entitlement, in which consumers feel that they deserve special treatment.
Businesses have capitalized on this when designing their loyalty programs, often offering benefits that cost
little, but carry with them an assumed prestige, suchasaccesstofaster
movinglinesorspecialparkingspaces

Ultimately,thesuccessofloyaltyprogramsdependsonhowwellthebusinessusesthedatait gathers to further

24
refine its policies and loyalty programs. Many businesses find little profitin

25
the use of loyalty programs, while others, such as eBay, attribute much of their financial success
toawell-executeduseofsuchprograms.

An Integral part:-

The immense competition is making the loyalty programs an integral program of business of
day to day functioning of petro-retailing. Right now many such loyalty programs are run by
the petro-retailers like XTRAPOWER (IOCLL), EXTRAREWARDS (IOCLL), SMART
FLEET (BPCL),PETRO CARD (BPCL), and DRIVE TRACK (HPCL).

However, these programs are mainly focused at the bulk consumers. But the small consumers
are being also provided these types offacilities.

26
CUSTOMER RELATIONSHIP MANAGEMENT AND LOYALTY
PROGRAM

Customer relationship management (CRM) can be widely defined as:

Company activates related to developing and retaining customers. It is a blend of internal


business process: sales ,marketing and customer support with technology and data capturing
techniques, customer relationship management is all about building long term business
relationship with customer loyal customer more profitable ,any company will like its
mindshare status to improve from being a support to being an advocate, company has to invest
in term of its product and service offering to its customers, it has to innovate and meet the very
needs of its clients/customers so that they remain as advocates on loyalty curve.

With growing competition in the petro-retailing sector, todays consumer is becoming more
andmoredemanding.Theemergenceofnew psychographicsegments inpetroretailmarket bears the
testimony to this fact. A closer look at these segments tells us what exactly a consumer is
looking for whenever he goes to a fuel station to purchase fuel. He looks for-Quality &Quantity assurance
Quick filling and efficient forecourt service Rewarding loyaltyPremiumfuelsCashlesstransactionsNon-
fuelservices.Theimmensecompetitionwill makeloyaltyprogramsanintegralprogramoftheday-to-
dayfunctioningofpetro-retailing.Of course, rightnow many such loyalty programs are being run by the
petro-retailers like Secunderabad, with plans to reach other cities soon. The loyalty programme
rewards customers paying by cash, credit and debit cards. Each transaction is confirmed online
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. Apart from redeeming the accumulated points instantly on fuel / SERVO lubricants at
participating retail outlets, card-holders can also redeem the points to get exciting gift items

27
from a catalogue. The redemption on gifts can be registered either from the participating retail
outlets or from the comfortable confines of one's home through the 24x7 IVRS Help Line
(1800 22 4111). The programme continuously provides the cardholder with privileges, benefits
and offers from a large number of alliance partners, including restaurants, pizza companies,
automobile service stations, jewellers, and online shoppingcompanies.

Indian Oil's XTRAPOWER Fleet Card Program is a complete Fleet Management Solution for
the Logistics Industry. With more than 23 lakh vehicles covered so far by the fleet card
program, XTRAPOWER is the ideal choice for large logistics service providers, small fleet
operators and corporate customers who needcomplete control over their fleet.
XTRAPOWER is a smart chip based fleet card program, where you get a smart chip fleet card
for each of your vehicle. This smart chip based fleet card comes as Pre Paid or Credit
depending on your choice. Purchase fuel through cashless transaction from the largest fuel retail
network in India. Exercise complete control of your fleet through XTRAPOWER FleetCard.

Extra power fleet card

Largest Network of Retail Outlets pan India (Including very remoteand


rurallocations)
Cashlesstransactions
InstantMIS
Easy Online FleetManagement
Easy Cash Flow Management CCMSRecharge
RTGS / NEFT / Online funds transfer or Pay atPump
SMS Alerts fortransactions
Manage fleet account bySMS
24 X 7 Toll freeHelpline
24 X 7 XTRAPOWER Service Centers to assist yourcrew
Generic CardOption
No need to wait Ready to use - OTC Cards available for instantfleet

28
management.

DATA ANALYSIS AND INTERPRETATION

1) Do you visit the IOCL fuel station regularly?


o Yes 50
o No 30
o Sometimes 20

o Yes
o No
o Sometimes

29
2) What is the usual mode of payment?
o Cash 70
o Xtra power fleetcard 25
o Credit/debitcard 05

o Cash
o Xtra power fleet
card
o Credit/debit card

30
3) Do you know about the Xtra Power fleetcard?
o Yes 60
o No 40

o Yes
o No

31
4) From where did you come to know about the fleet cardprogram?
o Advertisement 45
o Newspaper 25
o IOCLL retailoutlet 15
o Magazine 9
o Other 6

o Advertisement
o Newspaper
o IOCLL retail outlet
o Magazine
o Other

32
5) Are you satisfied with the service of fleetcard?
o Yes 55
o No 35
o Partly satisfied 10

o Yes
o No
o Partly satisfied

33
6) Do you use your fleet card regularly?
o Yes 68
o No 20
o Sometimes 12

o Yes
o No
o Sometimes

34
7) What improvements do you want in the fleet card loyalty program?
o Better services to the card holders 45
o More attractive offers 35
o Others 20

o Better services to
the card holders
o More attractive
offers
o Others

35
/

Fleet card other features

Easy Fleet Management:-

Limits available in XTRAPOWER Fleet Program like Transaction, Daily and Monthly
and One Time limits on Fleet Cards help you gain total control over the fuel spend of
your fleet thereby ensuring total peace ofmind.
You can also exercise more control on Products that can be purchased through your
fleet card or Retail Outlets where your fleet shouldpurchase.
Should you lose your fleet card, you can instantly block the card for further
transactions giving you totalsecurity

Rewards - Free Fuel & Gifts:-

Every time you buy fuel / lubes through fleet card from select retail outlets of Indian Oil, you
earn incentives in the form of XTRA points. You can accumulate these reward points and
redeem for free fuel instantly at our retail outlets or for other gift items. Only the customer can
redeem the rewards through a special Control Card Number andPIN.

Tracking:-

You can keep track of your fleet by logging on to our website www.IOCLxtrapower.com. As
XTRAPOWER member you can view the tracking report for your vehicles as well as
transactions made on each of your fleet cards for anyperiod.

36
Easy Cash Flow Management:-

XTRAPOWER offers you an excellent tool for enhancing your cash flowutilization.

Through CCMS recharge, cash deposited at our retail outlet by your representative in
any location will be available for use for any of your vehicles instantly. For example,
your driver can deposit the cash collected at Delhi in nearest Indian Oil Retail Outlet
with Fleet Card facility, you can utilize the same funds instantly for any of your
vehicle anywhere.

Insurance Benefits:-

XTRAPOWER Fleet Program offers Insurance benefits like -

Road Personal Accident Insurance of Rs. 50,000 per card to fleet owner up to a
maximum of Rs. 20,00,000/-; For Drivers - Rs 1,00,000; Helper - Rs.50,000/-
Road Accident related Medical Insurance during the period of Insurance coverage* (a)
Owner: Rs.10000/- per card subject to maximum of Rs.1, 00,000/-, (b)
Driver:Rs.10000/-
, (c) Co-Driver: Rs.10000/- and (d) Helper-cum-cleaner: Rs.10000/-. This benefit is
available only for hospital expenses incurred for injuries arising from road accidents
only. (*Terms and conditionsapply.)

DRIVER CARDS: DRIVERS are insured against enrolled Driver cards. Drivers must
have a Valid Driving License and should be driving at least an LMV involved in a road

37
accident to be eligible for theclaim.
So far, about Rs. 2, 00, 00,000 of benefits have been settled rendering financial and
social security to the kin of truck crew. This kind of claim settlement is unique and
unmatched in theindustry.

Care for your Truck Crew:-

The Program's Driver specific initiatives like Doctor at Door step offers free health
checkup to driving members during special occasions when they come for refueling
their vehicles .
With tie up from reputed hospitals, the program offers free health checkups at our retail
outlets for your drivingmembers.

During such health checkup programs, General Health Check Ups like free
identification of blood group, blood pressure, blood sugar levels, General counseling
by expert doctors with provision of free medicines areadministered.
Eye Check Ups are also conducted in association with reputed Eye Hospitals and
provide free spectacles and also free cataract operations whereverrequired.

38
QUESTIONNAIRE

1. Do you visit the IOCL fuel station regularly?


o Yes 50
o No 30
o Sometimes 20
2. What is the usual mode of payment?
a. Cash 70
b. Xtra power fleet card 25
c. Credit/debit card 05
3. Do you know about the Xtra Power fleet card?
a. Yes 60
b. No 40
4. From where did you come to know about the fleet card program?
a. Advertisement 45
b. Newspaper 25
c. IOCLL retail outlet 15
d. Magazine 9
e. Other 6
5. Are you satisfied with the service of fleet card?
a. Yes 55
b. No 35
c. Partly satisfied 10

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6. Do you use your fleet card regularly?
a. Yes 68
b. No 20
c. Sometimes 12

7. What improvements do you want in the fleet card loyalty program?


a. Better services to the card holders 45
b. More attractive offers 35
c. Others 20

40

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