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The project title was “Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets” over a period of 8 weeks. In the research the main focus was what all are the factors affecting the customer satisfaction and how much those all factors are influencing overall customer satisfaction.
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1. Executive Summary:
The project title was “Analyzing the Parameters Leading to Customer Delight at Indian
Oil Retail Outlets” over a period of 8 weeks.
In the research the main focus was what all are the factors affecting the customer satisfaction
and how much those all factors are influencing overall customer satisfaction.
In first two weeks I decided upon the principle theory for the research on the basis of which
the further research could be developed, under the intense guidance of my Industrial
Research Guide Mr. Alok Srivastava (Manager – Retail Sales, Delhi Divisional Office).
Then I made an extensive literature study about Indian Oil and its retail business nature from
internet and other study materials which had provided by my research guide Mr. Srivastava.
After understating the research needs and problem I designed a questionnaire on the basis of
SERVQUAL rating technique developed by Zeithmal V and Bitner M.
It took two more weeks to collect primary data from field, where 10 IOCL retail outlets had
taken under the survey as suggested by my research guide Mr. Srivastava.
After the data had made to available to me 6th and 7th week had taken to consolidate and
analysis those data according to the relevance of the research.
In 8th week the draft of report had been made and scrutinized by Mr. Srivastava. After the
approval of Mr. Srivastava the draft has been script in final report form for the purpose of
submitting as the completion of my eight weeks Summer Internship in Indian Oil Corporation
Limited as partial fulfilment of Post Graduated Diploma in Management.
The overall expenditure from the starting day of research & up to the end day of submission
of report was in between Rs 4000-4500.
1 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
2.Introduction:
2.1.Needs of Research:
A successful business always need to constant monitoring of its services that are provided to
its customer. To meet the constant monitoring one needs to develop a methodological system
to do the effective monitoring of services.
As customer are the centre of the service business one need to understand their needs and
requirement properly. This is only possible by regular interaction with the customers.
So, the extensive research should have take place to measure the service quality of different
retail outlets of Indian Oil Corporation Limited by involving its customer only.
Here, I would like to introduce the SERVQUAL principle to develop the research and as well
as to develop the monitoring system too.
2.2.Research Problem:
Indian Oil Corporation Limited retail outlets are basically franchise given to individual
business owner, who make sells of Indian Oil Corporation products under their roofs.
These owners solely responsible for running the business under the brand name of Indian Oil
Corporation Limited.
The service quality of a particular outlet totally lays upon them, how they are operating that
particular outlet. So, it is the foremost necessity to measure their performance to deliver the
desired level of the service quality to their customer on regular intervals.
2 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
3.Indian Oil Corporation Limited at a Glance:
3.1.Vision of Indian Oil Corporation Limited
A major diversified, transnational, integrated energy company, with national leadership and a
strong environment conscience, playing a national role in oil security & public distribution.
3.2.Mission of Indian Oil Corporation Limited
IOCL has the following 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 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.
3 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
3.3.Values of Indian Oil Corporation Limited
Values exist in all organizations and are an integral part of any it. Indian Oil nurtures a set of
core values:
CARE
INNOVATION
PASSION
TRUST
3.4.Company Profile
India’s flagship national oil company and downstream petroleum major, Indian Oil
Corporation Ltd. (Indian Oil) is celebrating its Golden Jubilee in 2009. It is India's largest
commercial enterprise, with a sales turnover of Rs. 2, 85,337 crore – the highest-ever for an
Indian company – and a net profit of Rs. 2, 950 crore for the year 2008-09. Indian Oil is also
the highest ranked Indian company in the prestigious Fortune 'Global 500' listing, having
moved up 11 places to the 105th position in 2009. India’s Flagship National Oil Company
Incorporated as Indian Oil Company Ltd. on 30th June, 1959, it
was renamed as Indian Oil Corporation Ltd. on 1st September,
1964 following the merger of Indian Refineries Ltd.
(established 1958) with it. Indian Oil and its subsidiaries
account for approximately 48% petroleum products market share, 34% national refining
capacity and 71% downstream sector pipelines capacity in India.
For the year 2008-09, the Indian Oil group sold 62.6 million tonnes of petroleum products,
including 1.7 million tonnes of natural gas, and exported 3.64 million tonnes of petroleum
products.
4 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
The Indian Oil Group of companies owns and operates 10 of India's 20 refineries with a
combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, .i.e. 1.2
million barrels per day). These include two refineries of subsidiary Chennai Petroleum
Corporation Ltd.
The Corporation's cross-country network of crude oil and product pipelines, spanning over
10,000 km and the largest in the country, meets the vital energy needs of the consumers in an
efficient, economical and environment-friendly manner.
Indian Oil is investing Rs. 43,400 crore (US $10.8 billion) during the period 2007-12 in
augmentation of refining and pipeline capacities, expansion of marketing infrastructure and
product quality upgradation as well as in integration and diversification projects. Network
Beyond Compare As the flagship national oil company in the
downstream sector, Indian Oil reaches precious petroleum
products to millions of people everyday through a countrywide
network of about 35,000 sales points. They are backed for
supplies by 167 bulk storage terminals and depots, 101 aviation fuel stations and 89 Indane
(LPGas) bottling plants. About 7,335 bulk consumer pumps are also in operation for the
convenience of large consumers, ensuring products and inventory at their doorstep.
Indian Oil operates the largest and the widest network of petrol & diesel stations in the
country, numbering over 18,278. It reaches Indane cooking gas to the doorsteps of over 53
million households in nearly 2,700 markets through a network of about 5,000 Indane
distributors.
5 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Indian Oil's ISO-9002 certified Aviation Service commands over 63% market share in
aviation fuel business, meeting the fuel needs of domestic and international flag carriers,
private airlines and the Indian Defence Services. The Corporation also enjoys a dominant
share of the bulk consumer business, including that of railways, state transport undertakings,
and industrial, agricultural and marine sectors. Technology Solutions Provider Indian Oil's
world-class R&D Centre is perhaps Asia's finest. Besides pioneering work in lubricants
formulation, refinery processes, pipeline transportation and alternative fuels, the Centre is
also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel
economy in the country. It has set up a commercial Hydrogen-CNG station at an Indian Oil
retail outlet in New Delhi this year. The Centre holds 214 active patents, including 113
international patents.
Indian Oil has joined the league of global technology providers last year with the selection of
its in-house developed INDMAX technology (for maximising LPGas yield) for the 4
MMTPA Fluidised Catalytic Cracking (FCC) unit at the Corporation's upcoming 15 MMTPA
grass roots refinery at Paradip in Orissa, as well as for the FCC unit coming up at BRPL.
A wholly-owned subsidiary, Indian Oil Technologies Ltd., is engaged in commercialising the
innovations and technologies developed by Indian Oil's R&D Centre. Customer First At
Indian Oil, customers always get the first priority. New initiatives are launched round-the-
year for the convenience of the various customer segments.
Exclusive XTRACARE petrol & diesel stations unveiled in select urban and semi-urban
markets offer a range of value-added services to enhance customer delight and loyalty. Large
6 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
format Swagat brand outlets cater to highway motorists, with multiple facilities such as
food courts, first aid, rest rooms and dormitories, spare parts shops, etc. Specially formatted
Kisan Seva Kendra outlets meet the diverse needs of the rural populace, offering a variety of
products and services such as seeds, fertilisers, pesticides, farm equipment, medicines, spare
parts for trucks and tractors, tractor engine oils and pump set oils, besides auto fuels and
kerosene. SERVOXpress has been launched recently as a one-stop shop for auto care services.
To safeguard the interest of the valuable customers, interventions like retail automation,
vehicle tracking and marker systems have been introduced to ensure quality and quantity of
petroleum products. Widening Horizons 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, bio fuels, wind power
projects, besides globalisation of its downstream operations.
3.4.1.Petrochemicals
In petrochemicals, Indian Oil is envisaging an investment of Rs. 20,000 crore (US$ 4 billion)
by the year 2011-12. Through the world’s largest single-train Linear Alkyl Benzene (LAB)
plant with an annual capacity of 1,20,000 tonnes set up at its Gujarat Refinery, the
Corporation has already captured a significant market share of LAB in India, besides
exporting the product to Indonesia, Turkey, Thailand, Vietnam, Norway and Oman.
A world-scale Paraxylene/Purified Terephthalic Acid plant (annual capacities: PX - 3,63,000
tonnes, PTA – 5,53,000 tonnes) for polyester intermediates is already in operation at Panipat,
7 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
while a Naphtha Cracker with a capacity of 800,000 tonnes of ethylene per annum,
6,00,000 TPA of Propylene, besides an annual production of 3,25,000 TPA of Mono
Ethylene Glycol, 1,40,000 TPA of Butadiene, 6,50,000 TPA of Polyethylene and 6,00,000
TPA of Polypropylene, equipped with downstream polymer units is to be completed by
December 2009 at Panipat.
A grassroots refinery at Paradip is proposed to be completed by the year 2011-12,
subsequently followed by the setting up of an integrated petrochemical plants with an
estimated investment of Rs 12,000 crore (US$ 2.5 billion) which will further strengthen the
Corporation’s presence in the sector.
3.4.2.Oil Exploration & Production
In E&P, Indian Oil has non-operator participating interest in seven oil & gas blocks awarded
under various NELP (New Exploration Licensing Policy) rounds and two Coal Bed Methane
blocks in India, in consortium with other companies. In addition, Indian Oil has two onshore
type ‘S’ NELP blocks, with 100% participating interest (PI) and sole operatorship. It also has
participating interest in an onshore block in Assam and Arunachal Pradesh through a farm-in.
Overseas ventures of the Corporation includes two blocks (86 and 102/4) in Sirte Basin and
Areas 95/96 in Ghadames basin of Libya, Farsi Exploration Block in Iran, onshore farm-in
arrangements in one block in Gabon, one on land block in Nigeria, one deepwater offshore
block in Timor-Leste and two onshore blocks in Yemen. In all, Indian Oil has 12 domestic
exploration blocks, including 2 blocks where gas discoveries have been made and 9 overseas
exploration blocks, & the Farsi block in Iran where commerciality of gas discovery has been
8 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
established. Indian Oil has incorporated Ind-OIL Overseas Ltd. – a special purpose vehicle
for acquisition of overseas E&P assets – in Port Louis, Mauritius, in consortium with Oil
India Ltd. (OIL).
3.4.3.Gas
In natural gas business, Indian Oil sold 1.849 million tonnes of the product in 2008-09. A
technology innovation has been initiated to reach LNG (Liquefied Natural Gas) directly to
the doorstep of bulk consumers in cryogenic containers for industrial as well as captive power
applications.
To consolidate its city gas distribution (CGD) business, Indian Oil has tied up with several
players such as Adani Energy, Reliance Gas Corporation, OIL and ONGC, etc., to set up joint
ventures in various cities of India. The Corporation has also entered into franchise
agreements with CGD players such as Indraprastha Gas Ltd., Mahanagar Gas Ltd., Adani
Energy Limited, GEECL, SITI Energy and GSPC Gas Ltd. to market CNG through its retail
outlets
3.4.4.Bio-fuels
To straddle the complete bio-fuel value chain, Indian Oil formed a joint venture with the
Chhattisgarh Renewable Development Authority (CREDA) with an equity holding of 74%
and 26% respectively. Indian Oil CREDA Biofuels Ltd. has been formed for carrying out
farming, cultivating, manufacturing, production and sale of biomass, bio-fuels and allied
products and services.
A pilot project of jatropha plantation on 600 hectares of revenue wasteland is underway in
9 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Jhabua district in Madhya Pradesh to ascertain the feasibility of revenue land-based
commercial biodiesel units and to develop benchmarks for plantation costs and output.
Indian Oil has also signed an MoU with M/s Ruchi Soya Industries Ltd. to take up contract
farming on one lakh hectare of private and panchayat wasteland in the state of Uttar Pradesh.
3.4.5.Wind Energy Business
Indian OiI has forayed into wind energy business with the commissioning of a Rs. 130 crore,
21 MW wind power project in the Kutch district of Gujarat. The cumulative power
generation from the 14 wind turbine generators has crossed 159 lakh KW since
commissioning in January 2009.
It has also commissioned two pilot solar lantern charging stations at its Kisan Seva Kendra at
Sathla near Meerut and Chokoni near Bareilly.
3.4.6.Consultancy
For over two decades now, Indian Oil has been providing technical and manpower
secondment services to overseas companies. Such services have been extended to Emirates
National Oil Company (ENOC), Kenya Pipeline Company and Aden Refinery, Yemen . For
the first time, SAP implementation / IT consultancy was provided in Sri Lanka. Consultancy
on pipelines was provided to Greater Nile Petroleum Operating Company (GNPOC), Sudan.
3.4.7.Globalization Initiatives
Indian Oil has set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates
(UAE), and is simultaneously scouting for new business opportunities in the energy markets
10 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
of Asia and Africa.
3.4.7.1.Lanka IOC Plc (LIOC)
Lanka IOC Ltd. operates about 150 petrol & diesel stations in Sri Lanka, and has a very
efficient lube marketing network. Its major facilities include an oil terminal at Trincomalee,
Sri Lanka's largest petroleum storage facility and an 18,000 tonnes per annum capacity
lubricants blending plant and state-of-the-art fuels and lubricants testing laboratory at
Trincomalee. Presently, it holds a market share of about 40%. In a highly competitive bunker
market, catering to all types of bunker fuels and lubricants at all ports of Sri Lanka, viz.,
Colombo, Trincomalee and Galle. It is the major supplier of lubricants and greases to the
three arms of the Defence services of Sri Lanka. LIOC's market share in petrol increased
stands at 24.8% in 2008 with an overall market share of 16.9%.
3.4.7.2.Indian Oil (Mauritius) Ltd. (IOML)
Indian Oil (Mauritius) Ltd. has an overall market share of nearly 22% and commands a 35%
market share in aviation fuelling business, apart from its bunkering business. It operates a
modern petroleum bulk storage terminal at Mer Rouge port, besides 17 filling stations. In
addition to the ongoing expansion of retail network, IOML has to its credit the first ISO-9001
product-testing laboratory in Mauritius.
3.4.7.3.Indian Oil Middle-East FZE (IOME)
The Corporation's UAE subsidiary, IOC Middle East FZE, which oversees business
expansion in the Middle East, is mainly into blending and marketing of SERVO lubricants
and marketing of petroleum products in the Middle East, Africa and CIS countries. Finished
lubes were exported to Oman , Qatar , Yemen , Bahrain , UAE and Nepal .
11 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
3.5.Objectives & Obligations
3.5.1.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 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
laying 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 optimise utilisation of refining capacity and maximize distillate yield and gross
refining margin.
To maximise utilisation of the existing facilities for improving efficiency and
increasing productivity.
To minimise 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 India’s policy of liberalisation and reforms.
12 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
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
continuously engage across the hydrocarbon value chain for the benefit of society at
large.
3.5.2.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.
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
Corporation’s 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.
13 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
3.5.3.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
recognised 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 Defence Services:- To maintain adequate supplies to Defence and other
para-military services during normal as well as emergency situations.
14 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
4.Retail Business Brands of Indian Oil Corporation Limited:
4.1.Auto Gas
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 to MS.
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 utilised. 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 232 Auto LPG Dispensing Stations (ALDS) covering 124 cities across
India.
15 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
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.
4.2.XTRAPREMIUM
XTRAPREMIUM Petrol is India’s leading branded petrol boosted with new generation
multifunctional additives known as friction busters that prevents combustion chamber
deposits. XTRAPREMIUM is custom designed to deliver higher mileage, more power, better
pick up, faster acceleration, enhanced engine cleanliness and lower emissions.
XTRAPREMIUM is a sought after fuel among discerning customers who own new
generation, high-performance cars who have endorsed its unmatched performance.
In terms of fuel system cleanliness XTRAPREMIUM is hugely superior to any other
alternative fuel in this segment, with the additional benefit of fuel efficiency through the
friction modifier. The additive package contains proprietary components including a
detergent dispersant, a friction modifier and a corrosion inhibitor, as a perfectly optimized
formulation in synthetic carrier oil. The detergent dispersant cleans the fuel system and the
friction modifier drastically reduces friction in the non-lubricated engine area contributing to
fuel economy.
16 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
4.3.XTRAMILE
Indian Oil’s XTRAMILE Super Diesel, the leader in the branded diesel segment is blended
with world-class ‘Multi Functional Fuel Additives (MFA). Commercial vehicle owners
choose XTRAMILE because they see a clear value benefit in terms of superior mileage,
lower maintenance costs and improved engine protection. A growing section of customers
who own diesel automobiles, both in the ‘lifestyle’ and ‘passenger’ category, prefer
XTRAMILE as a fuel for its added and enhanced performance. XTRAMILE has brought in a
huge savings in the high mileage commercial vehicle segment. Transport fleets that operate a
large number of trucks crisscrossing the country are using XTRAMILE to not only obtain a
higher mileage but also for low maintenance costs.
4.4.Petrol/Diesel Stations
IndianOil was the pioneer in launching state-of-the-art petrol stations with digital dispensers,
modern canopies, standardized signage and efficient lighting systems way back in the mid-
1990s. The new retail-branding template introduced by Indian Oil set in motion a revolution
in the petroleum retail business in the country. Indian Oil pioneered differentiated offerings to
meet the diverse needs of its customers, be it through large format Swagat outlets for the
highway traffic, Kisan Seva Kendras for the rural consumer, or even the XTRAcare outlets
for the discerning urban customer.
4.4.1.XTRAcare
Indian Oil's XTRAcare E branded full service petrol stations is a result of a series of
processes in retail design, product and service upgradation, capability training, automation,
loyalty programs, retail site management techniques all benchmarked to global standards.
Today XTRAcare petrol stations are synonymous in India with world-class petroleum
17 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
retailing.
Complete vehicle care begins at an Indian Oil XTRAcare petrol pump. From branded auto
fuels, to speedy windshield wipers to quick oil checks and snappy air service, you will
experience the superior services that will leave your vehicle feeling special.
Indian Oil's XTRAcare pump is a revolutionary initiative in petroleum retailing that
combines the best bouquet of quality, quantity and warm service, with a guarantee to make
your every visit a truly rejuvenating experience. It is benchmarked to international standards
of quality & quantity, housekeeping, maintenance and customer service certified to globally
renowned benchmarks certified by the globally renowned agency - M/s Bureau Veritas (BV),
amongst others.
The maintenance of the equipment at the XTRAcare outlets is undertaken by Original
Equipment Manufacturers under a unique 'Equipment Quality Outsourcing' system.
While the industry standard is to take samples on a quarterly basis, Indian Oil has moved
several steps ahead by introducing fortnightly random sampling with specific importance
given to RON (Research Octane Number) sampling which is truly the definitive test for
quality and quantity. The surveillance audits by BV are being done on a more comprehensive
basis. The scale and spread of XTRAcare pumps is also an industry record.
With automated facilities, highly trained attendants and forecourt managers attuned to the
needs of your car an XTRAcare pumps offers the full range of branded fuels-
XTRAPREMIUM Petrol and XTRAMILE Diesel as well as world-class SERVO lubricants
18 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
and a comprehensive loyalty programme.
The non-fuel activities get a major fillip at the Indian Oil XTRAcare and a wide range of
loyalty programs like XTRAREWARDS, XTRAPOWER and co-branded cards give
customers added benefits (available at present at select petrol pumps). The cutting edge
technology introduced at XTRAcare pumps includes automatic tank level gauges,
temperature sensors, density measurement sensors, back-office server with dispensing unit
controls, customer database, etc.
Another vital differentiator in the Indian Oil XTRAcare is the importance given to the
frontline customer attendants. They are trained at three levels of competencies--customer
service, personal hygiene/grooming and customer complaint redresses. XTRAcare dealers
also undergo extensive training on 'Retail Site Business Management' a unique training
module incorporating best global practices in retail sales management.
4.4.2.Kisan Seva Kendra
Kisan Seva Kendra is a unique award-winning retail outlet model pioneered by Indian Oil to
cater to the needs of the customers' in the rural segment. Today Indian Oil's KSKs have
emerged as a dominant player in the rural markets, riding on the rapid growth of upcoming
second and third tier roads in the rural areas. The KSKs come with a fresh perspective
enabling dealers to tap the huge demand driven in by consumers there. In addition, non-fuel
retail facilities like convention stores have been added to the KSKs selling pesticides,
vegetables, banking products and stationery items. Indian Oil has also tied up with Indo Gulf
for fertilizers, National Seeds Corporation for marketing seeds and agricultural inputs as well
as alliances with Nabard, Oriental Bank of Commerce and Bank of Baroda for banking
19 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
products. At some KSKs even internet kiosks, communication facilities, etc. have been
installed. Business alliances have been signed to market products from Dabur, Airtel, Tata
Chemicals, Godavari Fertilisers, Gokulam Fertilisers, Hindustan Unilever and Godrej
Agrovet. Other alliance partners are Emami for personal care products, Money Gram for
money transfer, MILMA and OMFED for milk products and Supplyco for convenience
stores.
4.4.3.Swagat
The Swagat retail network are large format sites designed exclusively to cater to travellers on
the highways. With spacious parking lots, dhabas, eateries, retail stores and restroom, the
Swagat outlets provide customized services to owners of both light motor vehicles as well as
heavy motor vehicles.
5.Loyalty Programs of Indian Oil Corporation Limited:
Indian Oil's loyalty programs are designed exclusively to benefit customers who have been
patronizing the brand for over four decades.
5.1.XTRAPOWER
The XTRAPOWER Fleet Card program is a complete smart card-based fleet management
solution for fleet operators and Corporate for cashless purchase of fuel & lubes from
designated retail outlets of Indian Oil through flexible pre-paid and credit facilities. The fleet
card program also offers an exciting rewards program and unique benefits like personal
accident insurance cover and vehicle tracking facilities. In just under two years of its launch,
Indian Oil's XTRAPOWER Fleet 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 20 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
can become a member of the XTRAPOWER fleet card program at a nominal annual
charge. Each fleet owner is issued a Fleet Control Card and 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. XTRAPOWER is also backed by
Indian Oil's vast infrastructure network and web-based support services.
5.2.XTRAREWARDS
Indian Oil XTRAREWARDS is India's first on-line rewards program that seeks to inculcate
the habit of redeeming points. The loyalty program rewards customers paying by cash, credit
and debit cards. Each transaction is confirmed on-line through a charge slip and customers
can earn points on fuel/lube purchases at participating Indian Oil Retail Outlets. Additional
points can also be earned outside the Indian Oil network, covering prominent FMCG, Food,
Automobile, Travel, Entertainment, Apparel and Hospitality sectors. XTRAREWARDS is
currently active in Mumbai, Ahmadabad, Bangalore, Mysore, Coimbatore and Chennai. It
will be shortly available in other markets like Delhi. Apart from redeeming the accumulated
points instantly on fuel / SERVO Lubes at participating Retail Outlets, the card holder can
also redeem the points to get some exciting gift items 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 (022-2880 9030). The program
continuously provides the cardholder with privileges, benefits and offers from alliance
partners like Domino's Pizza, Subhiksha, Rediff Shopping, Kumaran Silks, Dhabba Express,
Chennai Corporate Club and Archana Sweets.
21 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
6.About IOCL Market Position
Indian Oil Corporation's marketing has cashed in by raising its overall market share to 48.9%
through an impressive 8.7% year-on-year growth in sales volume till March 31. Ironically
though, with daily losses on fuel sales estimated at Rs 238 crore, a good marketing
performance means higher losses because the company has to retail fuels at an artificially low
price set by the government.
Indications are that Indian Oil could end 2008-09 by taking a hit of Rs 10,000 crore on its
books if the government keeps pump prices suppressed and international crude keeps rising.
"Indian Oil's market leadership has come from its expanded reach, innovations and
consumers' increased awareness of quality and quest for better products. XtraPremium petrol
is available in 38% of our outlets and XtraMile diesel in 58%. We are selling auto-LPG
through 157 outlets across 75 cities and will be adding 100 more stations this year. We have
also benefited from successful amalgamation of IBP's business," IOC director (marketing) G
C Daga said.
IOC had acquired IBP, a standalone retailer, during the NDA regime's disinvestment drive.
On the ground, Indian Oil's marketing performance was top-notch in the industry in all fuel
segments. Overall domestic sales stood at 58.3 million tonnes, while exports stood at 3.3
million tonnes. This marks a growth rate of 8.7% and 8.5%, respectively. Similarly in
branded motor fuels, which are costlier than normal fuels, Indian Oil's market share grew to
48.2% in petrol and 58.6% in diesel. In volume terms, growth stood at 89% for petrol and
65% for diesel. In auto-LPG too volumes grew 53%, with an average monthly sale of 8,000
tonnes.
22 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Daga said the increased thrust on rural markets through the string of Kisan Seva Kendras' too
had yielded results. The number of these low-cost retail outlets have crossed 2,500 and cover
85% of the districts and 42% tehsils in India.
After conducting a thorough study on Indian Oil Corporation Limited, some innovative ideas
could be generated to sustain the market stake in the competitive market and may could also
able to help in increase the business to position IOCL as a Market Leader in Petro Chemical
Retail Business.
23 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
7.Research Methodology:
Objectives:
To study and analyze the current customer satisfaction level at Indian Oil Retail
outlets.
To understand the customer needs for service excellence at Indian Oil Retail outlets.
To generate new ideas to exceed the customer expectation of service at Indian Oil
Retail outlets.
To prepare a successful work plan for Initiation and Implementation of those ideas at
Indian Oil Retail outlets.
Hypothesis: SERVQUAL principle would be applied for the research result.
Material And Methods:
Setting:
Research had conducted by filling up the survey forms in Different Indian Oil retail outlets at
Delhi.
Duration Of Study: 2 weeks
Sample Unit: The survey had conducted in Delhi region.
Sample Size: 100 respondents.
Sampling Method: Random Sampling.
Sample Selection:
Inclusion criteria: Private Vehicle’s owners.
Exclusion criteria: Below 18 years of age and Public vehicles.
Data Collection Procedure:
Private Vehicle’s owners was asked to fill the questionnaire designed for survey which had
contain questions prepared by ‘Rating Scale’ method.
24 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Sl. No. Name of Retail Outlet Location of Retail Outlet
1. 100 % Dwarka, Sector – 9
2. Millennium Petro Care Dwarka, Sector – 9
3. Raj Super Service Centre Motibagh Gurudwara
4. Jai Garur Gas Station Janakpuri, B – 1 Block
5. Kapoor Auto Service Centre Papparganj
6. Image Filling Station Mayur Vihar, Phase – 1
7. Kyber Service Station Motibagh
8. Kutub Service Station Mehroli Road
9. Raj Kumar Super Service Station IIT Crossing
10. S. Vidhya Dwarka, Sector – 3
List of Sample IOCL Retail Outlets at New Delhi
Table 1
These 10 outlets of New Delhi are taken randomly for sampling of this research, which are
recommended by IOCL authority.
25 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
26 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
27 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
9.Principles Theory of the Research:
9.1.The Gaps Model
Devised by Berry, Zeithaml and Parasuraman, the model is premised upon disconfirmation
theory, the idea that consumers evaluate services by comparing their expectations of what
will happen during a service encounter with their perceptions of the actual service received.
Where service encounter experiences are better than expected there is positive
disconfirmation and customers are satisfied but where the experience is worse than expected
there is negative disconfirmation and customers are dissatisfied. The difference between
expected service and perceived actual service is conceptualised as a gap. To achieve
customer satisfaction service providers should aim to close this gap.
Zeithaml and Bitner have developed the model further.
“In a broad sense, the process of closing the customer gap ….. can be
subdivided into four company gaps within the organisation that inhibit service
quality” (Zeithaml & Bitner 1996)
The four provider gaps can be identified as follows:
Not knowing what customers expect – the gap between customer expectations of a
service and the company understanding of those expectations.
Not selecting appropriate service designs/standards – the gap between the company
understanding of customer expectations and development of customer focussed service
designs.
Not delivering to service standards – the gap between developing of customer focussed
service designs and actual service delivery by service providers.
28 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Not matching performance to promises – the gap between service delivery and external
communications to customers.
The four provider gaps are summed in gap five, that between customer expectations of
service and the perceived service actually delivered. Thus,
“The key to closing the customer gap is to close gaps 1 through 4 and keep
them closed. To the extent that one or more gaps 1 through 4 exist, customers
perceive service quality shortfalls” (Zeithaml & Bitner 1996)
The Gaps model should prompt organisations seeking to improve the quality of their service
provision to ask some reflective questions.
Again, this model is applied to Indian Oil Corporation Limited (to evaluate the performance
of its retail outlets in New Delhi) in tabular form on the next page.
29 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
The Model Question Prompts Registry
30 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Gap 1 To what extent do we know what our customers expect? To what extent do we consult or survey and to what extent do we assume or guess?
Some consultation through Industry experts aware of recent market trends. Regular feedback of customers. SWOT Analysis of different products and marketing strategies. Assumption and guesswork occurs.
Gap 2 To what extent are our procedures customer driven? To what extent are procedures driven by financial requirements and resource constraints? To what extent do we have a philosophy and commitment to raise service standards.
Some “Tell-Tale” signs exist that procedures are company and resource driven: opening hours designed to meet
organisational needs rather than customer needs
procedures designed to fit logistical requirements rather than meet customer needs
staffing levels set on a basis of financial constraint rather than service needs
Managers and staff committed to improving service levels, evidenced in departmental plan. Measurements of service provision made to assist assessment of performance against Service Provision Statement.
Gap 3To what extent do employees understand their role/perform services well and to standard? To what extent is performance measured? To what extent are declared standards backed by appropriate human and technical resources? To what extent are customers made aware of the role they are required to play in meeting service standards?
Recruitment activities emphasise need for staff to demonstrate good interpersonal skills. Commitment to staff development and training. Human resources and technical resources subject to financial constraint. Service provision statement identifies requirements from customers to allow service standards to be met, but not fully understood.
Gap 4 To what extent does the service delivered match the “promised” service – both
Service provision measured but not yet tested against Service Provision Statement.
31 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
explicit and implicit? To what extent are customers made aware of the invisible organisation and systems that underpin service provision?
Customers made aware of invisible organisation and system or “backstage” service environment only as a means to explain events more fully in the context of complaint.
GAP Model at IOCL Retail OutletsTable 2
A preliminary application of the Gaps models for managing service quality to the current
position of IOCL Retail Outlets suggests certain actions which could be undertaken to either
achieve a more balanced triangle or close gaps and, consequently, improve overall service
quality. An action plan is given later.
9.2.Customer Expectations and Satisfaction
Customer expectations play a central role in understanding evaluations of service quality.
The expectancy construct is a key aspect of the Services Marketing Triangle and underpins
the Gaps model, as shown earlier. It is instructive to explore the expectancy construct
further.
9.3.The Expectancy Construct
Levels of expectancy and satisfaction can be identified.
Service Encounter Satisfaction
The customer’s satisfaction or dissatisfaction with a discrete service encounter.
Expectations are based on beliefs of what is likely to be, using past experiences as a frame of reference. In discussion the customer focuses on events and employee behaviour during a specific transaction.
Perceptions of Overall Service Satisfaction
The customer’s overall satisfaction or dissatisfaction with an
In discussion the customer focuses on aggregate past personal experiences
32 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
organisation, based on all encounters and experiences
Perceptions of Service Quality
The customer’s overall impression of the relative inferiority or superiority of an organisation and it’s services
Expectations are based on beliefs of what ought to be, either because it was explicitly promised or can be assumed as implicit through comparison elsewhere. In discussion, customers focus on perceptions and broader topics, including experiences of others, elsewhere.
The Expectancy ConstructTable 3
Individual service encounters comprise moments of truth for customers that can be
aggregated over time, allowing them to develop an overall picture (Bitner & Hubbert 1994).
Over time, multiple positive or negative encounters will lead to overall high or low levels of
satisfaction. Each service encounter therefore provides opportunities for service providers to
reinforce positive perceptions and gives customers opportunity for re-evaluation.
It is important to recognise that service satisfaction occurs at multiple levels. A customer
may be dissatisfied with a discrete encounter but perceive overall satisfaction, due to other
experiences. For these reasons, overall feelings, obtained for example from annual
questionnaires, do not provide full measure of satisfaction.
It should be noted that customers do not all have the same expectations. Each customer
approaches each service encounter with expectations based on their own understandings of
past experiences and beliefs of what is likely to be and what ought to be. This is a facet of
the heterogeneity of services.
33 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
9.4.Satisfiers and Non-Satisfiers in Services
Service encounters suggest that there are a number of generic satisfiers and Non-Satisfiers in
the context of service provision. The dimensions presented below are derived from the
aggregated service encounter journals of the presenters and are not exhaustive.
Satisfiers Non-Satisfiers
Prompt serviceDelivery to expectationEquity/constancyGood personnel encountersImmediate complaint/recovery systemsPerceived good quality
Queues/WaitingFailure to deliver to expectationInequity/lack of constancyPoor personnel encountersPoor on non-existent complaint/recovery systemsPerceived poor quality
Satisfiers and Non-Satisfiers in ServicesTable 4
The length of waiting time is a feature of almost all service encounters. In the case of one
encounter the length of time a customer waited for a service to be completed led to complaint
and in another was a contributory factor leading to an incidence of student aggression. In
other encounters prompt service was noted and appreciated by the customers. Prompt service
in one example involved compromise on quality in order to meet deadlines but was
considered adequate and satisfactory by the customer.
9.5.Evaluation of Service Provision
34 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
According to the Oxford English Dictionary, the act of evaluation is to “assess or appraise
something in order to determine value”
Zeithaml et al have identified dimensions of service quality, initially ten but subsequently
adjusted and condensed to five. These form the basis of the SERVQUAL scale for
measurement of service quality:
Responsiveness - willingness to help;
Assurance - knowledge and courtesy of employees and ability to inspire
trust and confidence;
Tangibles - appearance of facilities, personnel and communications;
Empathy - caring, individual attention;
Reliability - accuracy and dependability.
In assessing service quality under the SERVQUAL model, each dimension is measured
against two scales – expectations of service and perceptions of service.
The SERVQUAL schema has been the subject of various critiques. Although complex, it
remains a popular and prominent model for evaluating service quality, especially when used
in a modified form (Gabbot & Hogg 1998). A more simple and general framework for
evaluation can be employed, again linked to the notion of gaps. The framework comprises
the fifth and final key function of planning model that can be applied in the context of
services (Palmer 1998):
1. Analysing the current position – Where are we now?
2. Setting objectives for the organisation – where do we want to be?
35 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
3. Identifying and evaluating strategic alternatives – how can we get there?
4. Implementing the chosen strategy – what will we do?
5. Monitoring and controlling – are we meeting our objectives?
This framework for evaluation is not wholly customer based and simply allows comparison
of performance against targets. Nevertheless, customers could play a key role in identifying
whether targets have been met. Where performance indicators and measurements show
negative gaps against targets, remedial action can be taken or contingency plans implemented
to close the gap.
9.6.Correcting Performance Problems
For the registry the benefits of correcting performance problems and costs of not doing so
appear stark:
Benefits - improved service quality
improved working relationships, with staff commitment
improved working environment
Costs - service deterioration and quality losses
customer dissatisfaction
poor working relationships, with high rates of staff turnover
poor working environment
10.Research Findings:
100%, Dwarka Sector 9, New Delhi
36 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Name of Retail Outlets 100%
Sub TotalGrand Total
SRVQUAL Rating
SERVQUAL Dimensions Question No.
Tangibles Q 1 57 57 5.7Reliability Q 2 55 55 5.5
Responsiveness Q 3 56 56 5.6Empathy
Competence Q 4 55 Courtesy Q 5 58
Credibility Q 6 67 Security Q 7 67
247 6.175Assurance
Access Q 8 52 Communication Q 9 51 Understanding Q 10 48
151 5.03Overall SERVQUAL
Rating 5.601SERVQUAL Rating 100 %
Table 5
Tangibles Reliability Responsiveness Empathy Assurance0
1
2
3
4
5
6
7
SERVQUAL Comparison
SERV
QUA
L Rati
ng
SERVQUAL Comparison of 100 % with IOCLChart 1
This outlet’s SERVQUAL Rating is almost linear with the IOCL’s overall Rating. This
Justifies that:
The appearance and outlook of the outlet is satisfactory with company’s perceived
Service quality.37 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Though this outlet is not able to achieve the perceived level of reliability among its
customer.
But this outlet is good enough to response with the customer queries.
This outlet is able to meet the perceived level of individual attention to its customer.
The most noticeable quality of this outlet is able to communicate and understand its
customer needs.
Millennium Petro Care, Dwarka Sector 9, New Delhi:
Name of Retail Outlets Millennium Petro Care
Sub TotalGrand Total
SRVQUAL Rating
SERVQUAL Dimensions Question No.
Tangibles Q 1 59 59 5.9Reliability Q 2 57 57 5.7
Responsiveness Q 3 54 54 5.4Empathy
Competence Q 4 54 Courtesy Q 5 61
Credibility Q 6 67 Security Q 7 66
248 6.2Assurance
Access Q 8 51 Communication Q 9 48 Understanding Q 10 48
147 4.9Overall SERVQUAL
Rating 5.62
SERVQUAL Rating of Millennium Petro CareTable 6
38 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Tangibles Reliability Responsiveness Empathy Assurance0
1
2
3
4
5
6
7
SERVQUAL ComparisonSE
RVQ
UAL R
ating
SERVQUAL Comparison of Millennium Petro Care with IOCLChart 2
The above data justifies the following points:
The appearance and outlook of the out is very high.
As well as its reliability about quality of the products and transactions are highly
appreciable.
Though it is not a good sign for a service outlet when the responses to its customer
are lower the perceived quality.
But this outlet is good to take care of its customer’s individual needs.
And it able to meet the level of Assurance.
39 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Raj Super Service Centre, Motibagh Gurudwara, New Delhi:
Name of Retail Outlets Raj Super Service Centre
Sub TotalGrand Total
SRVQUAL Rating
SERVQUAL Dimensions Question No.
Tangibles Q 1 55 55 5.5Reliability Q 2 60 60 6
Responsiveness Q 3 58 58 5.8Empathy
Competence Q 4 49 Courtesy Q 5 61
Credibility Q 6 68 Security Q 7 67
245 6.125Assurance
Access Q 8 59 Communication Q 9 51 Understanding Q 10 48
158 5.27Overall SERVQUAL
Rating 5.739
SERVQUAL Rating of Raj Super Service CentreTable 7
Tangibles Reliability Responsiveness Empathy Assurance0
1
2
3
4
5
6
7
SERVQUAL Comparison
SERV
QUA
L Rati
ng
SERVQUAL Comparison of Raj Super Service Centre with IOCLChart 3
40 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Form the above data the understandings are like following:
Tough the outlooks and appearances of the outlet is not very appreciable.
It highly reliable among the customer about its quality of the products and
transactional clarity.
This outlet is able to respond to its customer queries very promptly.
Whereas, same time it is unable to meet the perceived level of customer individual
attention requirements.
But they are effective in communication with its customer, which exemplary.
Jai Garur Service Station, Block B1 Community Centre Jankpuri, New Delhi:
Name of Retail Outlets Jai Garur Gas Station
Sub TotalGrand Total
SRVQUAL Rating
SERVQUAL Dimensions Question No.
Tangibles Q 1 57 57 5Reliability Q 2 59 59 5.9
Responsiveness Q 3 58 58 5.8Empathy
Competence Q 4 52 Courtesy Q 5 59
Credibility Q 6 68 Security Q 7 68
247 6.18Assurance
Access Q 8 52 Communication Q 9 49 Understanding Q 10 48
149 4.97Overall SERVQUAL
Rating 5.57SERVQUAL Rating of Jai Garur Gas Station
Table 8
41 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Tangibles Reliability Responsiveness Empathy Assurance0
1
2
3
4
5
6
7
SERVQUAL Comparison SE
RVQ
UAL R
ating
SERVQUAL Comparison of Jai Garur Gas Station with IOCLChart 4
The extracts from the above data are like followings:
The appearance and outlook is really poor of this outlet.
But the same time this outlet highly reliable among its customer.
Also do very well in case of providing response to its customer queries.
It is also able to meet the perceived level of individual customer attention.
This outlet is able to communicate with its customer effectively enough.
Kapoor Auto Service Centre, Pappar Ganj, New Delhi:
42 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Name of Retail Outlets Kapoor Auto Service Station
Sub TotalGrand Total
SRVQUAL Rating
SERVQUAL Dimensions Question No.
Tangibles Q 1 56 56 5.6Reliability Q 2 53 53 5.3
Responsiveness Q 3 50 50 5Empathy
Competence Q 4 51 Courtesy Q 5 56
Credibility Q 6 69 Security Q 7 68
244 6.1Assurance
Access Q 8 49 Communication Q 9 49 Understanding Q 10 43
141 4.7Overall SERVQUAL
Rating 5.34SERVQUAL Rating of Kapoor Auto Service Station
Table 9
Tangibles Reliability Responsiveness Empathy Assurance0
1
2
3
4
5
6
7
SERVQUAL Comparison
SERV
QUA
L Rati
ng
SERVQUAL Rating for Kapoor Auto Service StationChart 5
From the above data one can understand the following points:
43 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
The outlets score low in appearance and outlooks.
Reliability among its customer about quality of products and transactional clarity of
this outlet are very poor.
Response to a customer queries are very unappreciable.
This outlet is not very good in attending individual customer needs too.
Communication with is customer is not definitely appreciable.
Image Filling Station, Mayur Vihar Phase – 1, New Delhi:
Name of Retail Outlets Image Filling Station
Sub TotalGrand Total
SRVQUAL Rating
SERVQUAL Dimensions Question No.
Tangibles Q 1 61 61 6.1Reliability Q 2 53 53 5.3
Responsiveness Q 3 58 58 5.8Empathy
Competence Q 4 55 Courtesy Q 5 61
Credibility Q 6 70 Security Q 7 70
256 6.4Assurance
Access Q 8 51 Communication Q 9 41 Understanding Q 10 42
134 4.47Overall SERVQUAL
Rating 5.614SERVQUAL Rating of Image Filling Station
Table 10
44 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Tangibles Reliability Responsiveness Empathy Assurance0
1
2
3
4
5
6
7
SERVQUAL Comparison SE
RVQ
UAL R
ating
SERVQUAL Comparison of Image Filling Station with IOCLChart 6
The above data are describes the following points:
This outlets appearances and outlook is highly appreciable.
But its reliability among its customer is not strong enough.
This outlet is very good to meet the customer queries.
And also able to understand individual customer attention promptly.
But the communication with its customer is not appreciable.
Kyber Service Station, Motibagh, New Delhi:45 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Name of Retail Outlets Kyber Service Station
Sub TotalGrand Total
SRVQUAL Rating
SERVQUAL Dimensions Question No.
Tangibles Q 1 57 57 5.7Reliability Q 2 63 63 6.3
Responsiveness Q 3 59 59 5.9Empathy
Competence Q 4 55 Courtesy Q 5 58
Credibility Q 6 67 Security Q 7 68
248 6.2Assurance
Access Q 8 58 Communication Q 9 47 Understanding Q 10 53
158 5.27Overall SERVQUAL
Rating 5.874SERVQUAL Rating of Kyber Service Station
Table 11
Tangibles Reliability Responsiveness Empathy Assurance0
1
2
3
4
5
6
7
SERVQUAL Comparison
SERV
QUA
L Rati
ng
SERVQUAL Comparison of Kyber Service Station with IOCLChart 7
Forms above data the understanding are like following:
46 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Though the appearance of the outlet is not able to perceived quality of IOCL but
could be excused.
The reliability of this outlet is very high, which is highly commendable job.
It is also very good to provide prompt response its customer.
They are also good to provide individual customer attention.
On their individual effort they are able to communicate with customers about IOCL’s
different promotions and products,
Kutub Service Station, Mehroli Road, New Delhi:
Name of Retail Outlets Kutub Service Station
Sub TotalGrand Total
SRVQUAL Rating
SERVQUAL Dimensions Question No.
Tangibles Q 1 59 59 5.9Reliability Q 2 57 57 5.7
Responsiveness Q 3 58 58 5.8Empathy
Competence Q 4 53 Courtesy Q 5 58
Credibility Q 6 67 Security Q 7 67
245 6.13Assurance
Access Q 8 59 Communication Q 9 49 Understanding Q 10 51
159 5.3Overall SERVQUAL
Rating 5.766SERVQUAL Rating of Kutub Service Station
Table 12
47 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Tangibles Reliability Responsiveness Empathy Assurance0
1
2
3
4
5
6
7
SERVQUAL Comparison SE
RVQ
UAL R
ating
SERVQUAL Comparison of Kutub Service Station with IOCLChart 8
With the help of above data the following conclusion could be arrived:
The outlet is good in appearances and outlooks.
It is also able to meet the reliability among its customer according to perceived scale.
This outlet is good in responding to its customer queries.
But it is lacking to understand the necessity of providing individual customer
attention.
At the same time, it is able to communicate its customer about IOPCL product lines
and other promotional activity.
48 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Raj Kumar Service Station, IIT Crossing, New Delhi:
Name of Retail Outlets Raj Kumar Service Station
Sub TotalGrand Total
SRVQUAL Rating
SERVQUAL Dimensions Question No.
Tangibles Q 1 58 58 5.8Reliability Q 2 54 54 5.4
Responsiveness Q 3 56 56 5.4Empathy
Competence Q 4 53Courtesy Q 5 58
Credibility Q 6 67Security Q 7 68
246 6.15Assurance
Access Q 8 52Communication Q 9 49Understanding Q 10 42
143 4.77Overall SERVQUAL
Rating5.504
SERVQUAL Rating of Raj Kumar Super Service StationTable 13
Tangibles Reliability Responsiveness Empathy Assurance0
1
2
3
4
5
6
7
SERVQUAL Comparison
SERV
QUA
L Rati
ng
SERVQUAL Comparison of Raj Kumar Service Station with IOCLChart 9
49 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
The above data are implies that:
This outlet is able to meet the perceived quality of IOCL about the appearance and
outlook of an outlet.
But its reliability among its customer is low.
It is not able to response its customer queries that promptly.
It is not able to meet the perceived standards of customer interaction about the IOCL
products and promotions.
S. Vidhya, Dwarka Sector 3, New Delhi:
Name of Retail Outlets S. Vidhya
Sub TotalGrand Total
SRVQUAL Rating
SERVQUAL Dimensions Question No.
Tangibles Q 1 56 56 5.6Reliability Q 2 52 52 5.2
Responsiveness Q 3 56 56 5.6Empathy
Competence Q 4 50 Courtesy Q 5 59
Credibility Q 6 65 Security Q 7 67
241 6.03Assurance
Access Q 8 51 Communication Q 9 43 Understanding Q 10 46
140 4.67Overall SERVQUAL
Rating 5.42SERVQUAL Rating of S. Vidhya
Table 14
50 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Tangibles Relibility Responsiveness Empathy Assuarence0
1
2
3
4
5
6
7
SERVQUAL Comparison SE
RVQ
UAL R
ating
SERVQUAL Comparison of S. Vidhya with IOCLChart 10
Above data provides the following understandings:
Appearance and outlook of this outlet is not acceptable according to perceived
standard.
Realiablity is seriously low of this outlet among its customer.
Though it is not able to meet the perceived quality of responding a customer queries
but almost touched the bar.
Again to provide individual customer attention it fails.
And it is also not able to make communication with its customer about IOCL products
and promotions.
51 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Indian Oil Corporation Limited, Retail Outlets, New Delhi:
IOCL
Sub TotalGrand Total
SRVQUAL Rating
SERVQUAL Dimensions Question No.
Tangibles Q 1 575 575 5.75Reliability Q 2 563 563 5.63
Responsiveness Q 3 563 563 5.63Empathy
Competence Q 4 527Courtesy Q 5 589
Credibility Q 6 675Security Q 7 676
2467 6.17Assurance
Access Q 8 534Communication Q 9 477Understanding Q 10 469
1480 4.93Overall SERVQUAL
Rating5.62
SERVQUAL Rating of Indian Oil Corporation LimitedTable 15
The above data has been accumulated by compiling the all 10 different retail outlets data,
which has been done by taking Mean Average of all the 10 retail outlets SERVQUAL Rating.
This average rating we took as the Perceived Standard of Quality.
52 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
11.Recommendations
After analysing the 10 Samples of Retail outlets of Indian Oil Corporation limited from above
research findings those outlets could be categorised three of following headings. This three
types of outlets could be performed better when the appropriate measures are taken.
Acceptable Moderately Acceptable Non Acceptable
Kyber Service Station
Kutub Service Station
Raj Super Service
Centre
Image Filling Station
Millennium Petro Care
Jai Garur Service
Centre
Raj Kumar Super
Service Station
S. Vidhya
100 %
Kapoor Auto Service
Centre
Recommended Categorisation of IOCL Retail OutletsTable16
The recommendation goes like:
Acceptable:
1. Identification of the reasons for their weaknesses. (Italic points of each outlets of this
category, mentioned in Research Findings).
2. Rectification of weak points only.
3. Regular monitoring is preferable rather than supervision.
4. Regular discussion of day to day operational problems with the owner, to find out
mutual solutions to overcome those problems.
5. Encourage them to perform better each time better than previous. Rewards and
Recognitions should have provided on regular basis.
Moderately Acceptable:
1. Identifications of root problems about their weak points.
2. Identifications of reasons of their strong points.53 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
3. Design a Performance Improvement Plan with the consultation of the concerned
retail outlets owners.
4. Make them understand their part of benefit for implementation of those plans.
5. Regular Monitoring on their operation as well as Supervision on the implementation
of those plans recommended.
6. On the successful implementation of those plans, the outlets must be give recognitions
and if possible encouragement rewards could be given.
Non Acceptable:
1. The outlets should be asked for the reasons of their poor performances in written
form.
2. Visit of IOCL experts at those outlets to identify the reasons for their poor
performances and checking against their concerned written show – causes submitted
to the officials.
3. A thorough Root Cause Analysis should take place after a discussion with those
outlets owners.
4. A Performance Development Plan should prepared by the experts of IOCL.
5. Those outlets must take under Direct Supervision of IOCL authority for effective
implementation of above plan. For that an Expert panel are highly recommended for
directing the strict supervision on those outlets.
6. Rewards and Recognition are appreciable for those outlets who all will able to
implement their concerned performance development plan successfully, at the same
time strict measures are highly recommended for those outlet who all will not able to
do so.
54 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
The recommendations given in tabular format on the next page were made with reference
to the previous analysis and, in an attempt to be realistic. As a consequence, the
recommendations focussed upon practical actions, which did not require massive
commitment of additional resources. A time frame for achievement was not given in this
instance but all were to be achieved within one year. Provision of milestones for
achievement is to be recommended.
Objective Action Measure of Achievement
To help close Gap 1
(Not knowing what customers expect)
Develop a greater understanding of customer expectations of services
Develop and extend existing channels for consultation with customers
Conduct survey to establish relative importance of various aspects of service and current levels of satisfaction
Action notes prepared, to inform strategic planning processes
Survey completed. Results used to inform development of Departmental Plan and Service Provision Statement. Resources moved to priority areas.
To help close Gap 2
(Not selecting appropriate service designs/standards)
Develop procedures and processes which are customer focussed
Involve “front-line” staff in review and amendment of procedures and processes
Develop practice for positive logging and management of complaints
Changes reported in annual Review Report
Practice written and included in current “Registry Facts” guidelines and procedures handbook.
To help close Gap 3
(Not delivering to service standards)
Improve service delivery systems
Devise and implement training plan for all new members of staff, to increase levels of equity/constancy and promote good personnel encounters for customers
Implement programme to upgrade “SERVICESCAPES” on long-term basis
Posts established, advertised and filled. Proportion of negative comments on queues and waiting time reduced.
Training plan included in induction pack and progress assessed and reviewed by line manager
Plans prepared and costed.
55 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Work completed on a rolling programme
To help close Gap 4
(Not matching performance to promises)
Improve external communications to customers – to match promises
Develop and operate Service Provision Statement
Service Provision Statement promulgated. Relevant aspects incorporated at points of different activity
Recommendations for Closing GAPsTable 17
After conducting this extensive study one can understand from the research findings that
Indian oil must give importance to close the Gap 4 as from research it has been seen that
communication between company and its customer score lowest among any other dimension
of SERVQUAL.
56 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
12.Conclusion:
As a business grow larger and as management becomes more remote from the market place,
marketing management has to rely more heavily on marketing research as a managerial tool
in solving any problem in the field of marketing. Beginning and end of marketing is
marketing research.
Marketing research may be defined as the scientific and controlled process of gathering of
non-routine marketing information helping management to solve marketing problems
marketing research concentrates on the study of product, planning and development, pricing
policies, effectiveness of personal selling, advertising and sales promotion, distribution
structure, market competition, buyer behaviour etc
After the evaluation and findings some important suggestion are revealed to the company.
Indian Oil Corporation Limited must make particular guideline for the construction of
any retail outlet for uniform appearance of the outlets.
Indian Oil Corporation Limited must take into serious consideration to train retail
outlets ‘frontline staff’ to deliver uniform services.
Indian Oil Corporation must improve its advertisement to the products and features in
detail.
Indian Oil Corporation Limited should develop a regular uniform monitoring system
to evaluate its retail outlets service performances over the nation.
After the evaluation, the information is revealed that the most of the users are unaware of the
products and its features.
It is to be noted that, the people who are aware of the product and its feature are mostly
satisfied with the performance of the products.
57 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited
Bibliography
1. Philip Kotler and Kevin Lane Keller 2008 Marketing Management. Delhi: Pearson
education.
2. Malhotra K Naresh 2009 Marketing Research, Delhi: Pearson Education.
3. Zeithaml V and Bitner M 1996 Service Marketing, McGraw Hill International
Editions.
4. Hallas November 21st , 2005, American University Association.
5. About Indian Oil Corporation Limited, www.iocl.com as accessed on July 14th , 2010.
6. About Indian Oil Corporation Market Position, www.petroindia.com as accessed on
July 21st, 2010.
7. Annual Report 2009, Indian Oil Corporation Limited.
8. Various Information Brochures 2009 -10, Indian Oil Corporation Limited
58 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil Corporation Limited