REPORT ON NFR

8/7/2019 REPORT ON NFR

1/39

1

REPORT ON

NON-FUEL REVENUE GENERATIONIN PETROLEUM RETAIL SECTOR

FOR

INDIAN OIL CORPORATION LIMITED

MARKETING DIVISION

LUCKNOW

BY

AWADHESH NATH TIWARI

08PG0208

MBA(2008-10)

CHRIST UNIVERSITY INSTITUTE OF MANAGEMENTDairy Circle, Hosur Road, Bangalore-560029


2/39

2

Acknowledgement

I would like to extend my sincere thanks to Shri G.Tiwari(GM), Mr.Najmi(CRSM),Mr.Vigyan Kumar(SDRSM) & specially Mr.Sunil Vikram

Singh(AM-RS ), my project guide for his guidance and support throughout mytraining at Indian Oil Corporation Limited, Marketing Division,Lucknow. His

calm demeanor and willingness to teach has been a great help in my successfully completing the project. My learning has been immeasurable and

working under him was a great experience.

My heartfelt thanks is also extended to all the staff of Indian oil Corporation

Limited for providing a hospitable and helpful work environment and makingmy summer training an exciting and memorable event.

My sincere thanks to Mrs.Veda Balaji, my internal faculty guide, whose

continuous help and enthusiasm has helped me to complete the project

successfully.

I also wish to thankChrist University Institute of Management for making thisexperience of summer training in an esteemed organization l ike Indian OilCorporation Limited possible. The learning from this experience has been

immense and would be cherished throughout life.

Awadhesh Nath TiwariChrist University Institute Of Management


3/39

3

EXECUTIVE SUMMARY

The objective of the project was to study the impact of the initiatives taken byIndian Oil Corporation Limited for Non-Fuel Revenue generation in the

Petroleum Retail sector and suggest ways to improve their effectiveness and tofind out the scope for their broader implementation.

The purpose of the project is to essentially give Indian Oil an idea about the

customer awareness level with respect to this initiative and to present

customers needs and preferences which would help the company in improving

the service level as well as the product offering under the initiative andsimultaneously increase the customer loyalty towards the company.

The project was designed accordingly. A primary research was conducted

across 10 Retail Outlets. 1000 customers were contacted for the initiative acrossthe city of Lucknow. The research tool was the specially designed questionnaire

and interview with the customers of Indian Oil.The questions covered a widerange of issues including:

y The awareness level of the initiatives.y The satisfaction level of the customers with Indian Oil.

y The important factor which customers consider important while buying.y The preference priorities of customers.y The buying preferences of customers

For the purpose of this research it was absolutely imperative to find out what

the consumers want from Indian Oil.This required meeting the customersand filling up the questionnaire according to their responses and to discuss

with them the issues related with this initiative. All the analysis in the reportis drawn out of these questionnaires and all conclusions are drawn and therecommendations made to the company are based on the results of the

analysis.This research will provide Indian Oil Corporation Limited with information

like the current awareness level, the satisfaction level, response of customerstowards the initiatives; their needs and preferences etc.This will help the

company in taking a decision to improve the effectiveness of this initiative.


4/39

4

Table of Contents

Sr.no Topics Page no.

1

2

Introduction

Literature Support

511

3 Process/Methodology of Study 13

4 Data Collections 17

5

6

Analysis and Interpretation

SWOT Analysis

2131

7 Conclusion 32

8 Recommendations 34

References 36

Appendix-1(Questionnaire) 37


5/39

5

INTRODUCTION

Indian Oil Corporation Ltd. is currently India's largest company by sales with aturnover of Rs. 247,479 crore (US $59.22 billion), and profit of Rs. 6963 crore (US $1.67 billion) for fiscal 2007.

Indian Oil is also the highest ranked Indian company in the prestigious Fortune'Global 500' listing, having moved up 19 places to the 116th position in 2008. It isalso the 18th largest petroleum company in the world. Indian Oil's vision is driven bya group of dynamic leaders who have made it a name to reckon with.

In this section, you can peruse through the profile and spread of Indian Oil acrossthe country & abroad. You can also know about Indian Oil's current financialperformance, special initiatives and causes along with the prestigious recognitions &awards that have come its way for exceptional performances

Vision, Mission & Values

VisionA major diversified, trans-national, integrated energy company, with national

leadership and a strong environment conscience, playing a national role in oilsecurity & public distribution.

Mission

y To achieve international standards of excellence in all aspects ofenergy and diversified business with focus on customer delightthrough value of products and services, and cost reduction.

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

y

To attain leadership in developing, adopting and assimilating state -of-the-art technology for competitive advantage.y To provide technology and services through sustained Research and

Development.y To foster a culture of participation and innovation for em ployee growth

and contribution.y To cultivate high standards of business ethics and Total Quality

Management for a strong corporate identity and brand equity.y To help enrich the quality of life of the community and preserve


6/39

6

ecological balance and heritage through a strong environmentconscience.

Values - Values we nurture

Care - stands for

y Concerny Empathyy Understandingy Cooperationy Empowerment

Innovation - stands fory Creativityy Ability to learny Flexibilityy Change

Passion - stands fory Commitmenty Dedicationy Pridey Inspirationy

Ownershipy Zeal & Zest

Trust - stands fory Delivered Promisesy Reliabilityy Dependabilityy Integrityy

Truthfulnessy Transparency

Objectives & Obligations

Objectives

y To serve the national interests in oil and related sectors in accordanceand consistent with Government policies.

y To ensure maintenance of continuous and smooth supplies of

petroleum products by way of crude oil refining, transportation andmarketing activities and to provide appropriate assistance toconsumers to conserve and use petroleum products efficiently.

y To enhance the country's self-sufficiency in crude oil refining and buildexpertise in laying of crude oil and petroleum product pipelines.

y To further enhance marketing infrastructure and reseller network forproviding assured service to customers throughout the country.

y To create a strong research & development base in refineryprocesses, product formulations, pipeline transportation andalternative fuels with a view to minimizing/eliminating imports and tohave next generation products.

y To optimize utilization of refining capacity and maximize distillate yieldand gross refining margin.

y To maximize utilization of the existing facilities for improving efficiencyand increasing productivity.

y To minimize fuel consumption and hydrocarbon loss in refineries andstock loss in marketing operations to effect energy conservation.

y To earn a reasonable rate of return on investment.y To avail of all viable opportunities, both national and global, arising out

of the Government of Indias policy of liberalization and reforms.


7/39

7

y To achieve higher growth through mergers, acquisitions, integrationand diversification by harnessing new business opportunities in oilexploration & production, petrochemicals, natural gas and downstreamopportunities overseas.

y To inculcate strong core values among the employees andcontinuously update skill sets for full exploitation of the new business

opportunities.y To develop operational synergies with subsidiaries and joint ventures

and continuously engage across the hydrocarbon va lue chain for thebenefit of society at large.

Financial Objectives

y To ensure adequate return on the capital employed and maintain areasonable annual dividend on equity capital.

y To ensure maximum economy in expenditure.y To manage and operate all facilities in an efficient manner so as to

generate adequate internal resources to meet revenue cost andrequirements for project investment, without budgetary support.

y To develop long-term corporate plans to provide for adequate growthof the Corporations business.

y To reduce the cost of production of petroleum products by means ofsystematic cost control measures and thereby sustain marketleadership through cost competitiveness.

y To complete all planned projects within the sch eduled time andapproved cost.

Obligations

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

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

y Towards employees:- To develop their capabilities and facilitate theiradvancement through appropriate training and career planning. To

have fair dealings with recognized representatives of employees inpursuance of healthy industrial relations practices and soundpersonnel policies.

y Towards community:- To develop techno-economically viable andenvironment-friendly products. To maintain the highest standards inrespect of safety, environment protection and occ upational health at allproduction units.


8/39


9/39

9

Cinema, AE Exchange, RelianceCapital and H . If youwish topartnerus inournon-fuel businessventuresemail yourproposal to IndianOil

LPG (Non- uel lliances)

IndianOil hassignedbusinessagreementswith reputedcompanies andbrands

for marketing their products through its countrywide network of Indanedistributors. Someof thehugelysuccessful productsbeingcurrentlysold throughthenetworkare Suraksha rubberhoses, Green abel stoves, enithand Safexfireextinguishers. New tie-upshavebeensigned formarketing Suraksha flameretardant aprons, CNG/ PG auto kits, e-booking of railway tickets, moneytransfers, KwalityWalls' kiosks, Mysore Sandal Soaps, courier services andtelecom products through the Indane network.

Ifyouwish topartnerus inournon-fuel businessventuresemail yourproposal tothe IndianOil contactsprovided in thissection.

Why i thi i iti tiv Important?

The face of the Indian consumer is changing at a great pace. With the rise in

disposable income the needs of the customer is also changing. Today a

customer looks for value for money and also expects to get a customized

solution for his needs with a personal touch. This initiative aim to fulfill both

the above mentioned requirements ofthe customer.

These Convineos aims at providing the customer with a customized solution forhis daily needs by ensuring a better service according to his convenience and

requirement and also ensures that the customer is not only satisfied with the

service being provided instead is delighted by the way he is treated and the

service is provided to him.

The C IO(NFR initiative aims at giving the customer value for money

by ensuring availability of excellent quality products which are delivered to

him at no extra cost and which come with quality assurance from Indian Oil.

Objective of Study:

The Research project has been carried outto aid Indian OilCorporation Limited

in offering services thatthe customer needs and also to improve on some ofthe

existing services of the Company. The project covers the initiatives in

Petroleum Retail sector.The objective ofthe projectis:


10/39

10

1- To study the avenue for Non-fuel revenue generation in the Petroleum Retail

sector & analy e the effect of this initiative on the customers.

2- To study the response to the ConveniO(NFR) initiative.

3- To study the feasibility and scope of implementing this initiative in a broaderway.

4- To suggest ways to increase the effectiveness of the initiative .

Purpose of the study:

To maintain and enhance the position further, IOCL decided to have a thorough

insight into the effects of the initiative it has taken, which depends upon thecustomer perception of the product conception and their views towards the

service provider, thus, the feedback from the customers becomes all the moreimportant.

The purpose of the undergone study is to study the initiati e taken and to

e aluate their effecti eness and to suggest measures to further enhance

their efficiency.

The study focuses on the following dimensions:

y To identify the effect of this initiative on the customers. y To identify the factors which have been recogni ed most by the

customers.

y To identify and recogni e the factors which are considered mostimportant by the customers for a better and efficient service.

y To find reasons which will make customers more open towardspurchasing products from Indian Oil.

y To find an optimum product mix offered by the company. y To find ways to increase the customer Loyalty .

The Company wants to strengthen its ser ice and product offering by

gathering information about the true market feedback for Non-Fuel

Re enue generation initiati es. Indian Oil Corporation Limited needs to

know about the customers preference and opinion in this regard.


11/39

11

LITERATURE SUPPORT

Management of the retail end is a key determining factor in the success or

otherwise of any business. To gain a sustainable competitive advantage, aretailer needs to understand and satisfy both the apparent and latent needs of thecustomer. This principle holds true in NFR retailing too. All efforts at

exploration and production, distribution and marketing finally culminate at theretail point after moving through a long complicated supply chain. The

downstream business is extremely intricate and of substa ntial strategic

importance to the national economy. Fuel and Non-fuel products wouldcontinue to play a key role in the national economic growth. This is what makesthe retail business exciting and challenging. It demands continuous efforts atimprovement of product and services, higher customer satisfaction, and offers

endless opportunities to innovate.

The business environment in India has undergone a significant change in thepast few years, and nowhere is it as pronounced as in the petroleum and non

fuel products sector. Operational freedom to the Government oil companies in ahost of areas including determining their own market share, freedom to prepare

and implement their market plans, selection of dealers etc has been provided.We are also gradually moving towards a market determined pricing regime inletter and spirit. This liberali ed scenario is making the sector intenselycompetitive, and the oil companies, especially those in the public sector would

need to adopt a more customer-focused approach to the retail end of theirbusiness.

Besides providing the policy framework for a liberal, decontrolled petroleumsector, the Government is conscious of the need to encourage a disciplined and

responsible market.

The Petroleum and Natural Gas Regulatory Board Bill is a step in thisdirection. This Bill seeks to set up a regulatory board to regulate refining,distribution and marketing of products with a view to protect the interest of

consumers and promote fair competition among the entities. Ministry of

Petroleum & Natural Gas has also issued various control orders and directionsto help check adulteration.


12/39

12

Some of the major challenges that need to be immediately and purposefully

addressed can be summari ed as under:

a) Quality

b) Quantity

c) Priced) Value added services

e) Building brand identityf) Generating higher volumes

g) Reaching the unserviced areas

Above all, the oil companies can build a sustainable competitive advantage onlyif they are driven by a customer centric approach and seek to cont inuouslyimprove .The boom in consumerism has given rise to a mature and demanding

customer. The companies too need to mature fast.

To sum up, there is a need for a fundamental rethinking in the way companiesdo business. Customers are beginning to notice that they now have a choicewhen it comes to LPG and other fuel products, and they also have a choice of a

host of other non-fuel offerings. So the customer has to be the focus of all ourstrategies. It is he who will define quality, be it product or servi ce. And the oil

companies can afford to neglect the customer at only their own peril.


13/39

13

PROCESS/METHODOLOGY OF STUDY

In business collection of raw data allows the managers to see the real scenario

and then take a decision as per the data obtained. There are several implicationsin this statement:

y Indian Oil gets a clear picture of the current state of its service and levelof successful implementation of NFR initiatives.

y

They can examine the available information in the for m of data to make adecisiony They can even get a clear picture of the scenario or potential of the

offerings and also their comparison with other sources of productavailability.

y This will help the company in making any decision.y The information can only be gathered by data collection and then

analy ing the available data.Therefore, it can be said that the data collection is an

important part of the project.

The projected objectives were considered and as per the requirement a

market survey was done.

Procedure:

The procedure that followed can be enlisted as below:

Data

Raw numbers

Information


14/39

14

yReading about the initiativesyDeciding on the objective to proceed.yDeveloping Survey instrumentsyConducting personal interviews of different customers.yFinally analy ing the data

Process adopted:

1. Gaining knowledge about the initiati es:

Reading about the product was the first step undertaken .Also

a briefing by the company officials helped in gaining sufficient knowledgeabout the initiatives taken This gave not only in depth knowledge about what

is been offered by the company but also proved useful while developing thequestionnaire.

2. Steps in the De elopment of the Sur ey Instruments

The main instruments required for survey was a well -developed

questionnaire. The questionnaire development took place in a series ofsteps as described below:

Step 1: Research objectives are being transformed into information objective s

Step 2: The appropriate data collection methods have been determined

Step 3: The information required by each objective is determined

Step 4: Specific Questions/Scale Measurement format is being developed

Step 5: Question/Scale Measurement is being evaluated

Step 6: The number of information needed is being determined

Step 7: The Questionnaire and layout design is being evaluated


15/39

15

Step 8: Revise the Questionnaire layout if needed

Step 9: The Questionnaire format is being finali ed

3. Customer Sur ey and inter iew:

The people play an important part as a clear perception of people about the product can be estimated and known. Studying the needlevels of the people regarding the grocery and other products can be

observed. It was very useful in knowing about the requirements of thepeople.

Research Design:

A two stage Research was conducted:1. Secondary Research:

Data was collected from retail outlets and catalogues to understand the

product and the rates of the different products.

2. Primary Research:

A Primary Research was conducted:The questionnaire was prepared for the customers of the Indian Oil outlets

and following areas covered:

y Current Satisfaction Level for customersy Changes observed by them in recent daysy The preference for service offeredy Their faith on Indian Oil servicesy For NFR initiatives their awareness levely Their way of purchasingy Important criteria for choosing a particular method of purchasey Their openness to purchasing certain products from Indian Oily Their latent demands.

Sampling Plan:


16/39

16

Elements:

The target population of the study included the existing Indian Oil

customers

Sample size: 900 customers.

Method: Questionnaire along with interview

RESEARC MET ODOLO Y

(1) RESEARC DESIG

Descriptive research

Sample Survey -Retailors & Consumers

Area of survey Lucknow city

(2)DATA COLLECTION MET OD

Primary Data

Secondary Data

(3)POPULATIONDEFINATION

Retailers and consumers of Lucknow city

(4)SAMPLING DESIGN

Convenience


17/39

17

DATA COLLECTIONS

Data Collection Plan:

Initially information was gathered through the company officials and websiteabout the products and offerings. Then retail outlets were contacted for the

customer base information and product offerings and comparison with market.Then the customers were contacted at the retail outlets of the Indian Oil.

Types of Primary Data collected:

The following tools were used during the collection of primary data:

.

1-Attitudes/Opinions:

The questionnaire was used to get hold of individuals preference, inclinationand requirement from the products that the Company offers to its

customer. Attitude is an important notion in the marketing literature, since it is

generally thought that the attitudes are related to the behavior of individual, dueimportance was accorded to this and noting made based on interviews.

2-Awareness/Knowledge:

They are used in marketing research and refer to what respondents know about

the product or initiative For instance; here efforts have been made to find outthe market awareness regarding the new initiatives.

3-Intentions:

A persons intentions refer to the individuals anticipated or planned behavior.The research aims at finding out through the collected primary data theintentions of the people in general about the Non-Fuel Revenue initiative

through their implicit and explicit behaviour.In this project the customers have been segregated as per their intentions about the initiative of IOCL.The

intentions gathered are divided into the following groups:


18/39

18

y Customers who are interested in the initiativey Customers who are not interested in the initiative

4-Moti ation:

Through the questionnaire efforts have been made to find the hidden need orwant of an individual and whether these people can be tapped as the p otential

customer for NFR initiative.

5-Beha ior:

Behavior concerns what subjects have done or are doing. Throughthe questionnaire the behavior of the individuals regarding the product and their responses have been found. If the responses are

favorable then the person can be said to be our potential customer.The primary data serves as an important tool to measure the

behavioral trend of the customer. It helps in answering few vitalquestions like:

Which factors will cause him to buy from Indian Oil? Where he expects from the company? Which products he prefers?

Thus, it helps to draw a comparison between the Purchase and theobserved behavior of the individuals.

Obtaining the Primary Data:

The data collection was primarily done through communication.Communication involves questioning respondents to secure the desiredinformation, using a data collection instrument called questionnaire.


19/39


20/39

20

y The survey for NFR was conducted across 9 distributors including thecustomers which are covered under the NFR initiative.

y The total number of respondents forNFR initiative was 900.y The Retailers covered for NFR initiatives were spread across the

Lucknow city.These are :

1) Aliganj Service Station,Sector-H,Aliganj2) Samthar Service Station, near I.T. College3) RKBK Limited,HAL4) Hind Service Station,Bara Birwan5) Shri Raj Filling Station,patrakarpuram,Gomtinagar6) S.S.R. Filling Station,Jankipuram

7) Vinayak Service Station,Mandir Marg,Mahanagar8) Sahani fuel Centre,Viram Khand-I,Gomtinagar9) V.M.Service Station,M.G.Marg,Cantt.


21/39

21

OBSERVATIONS ANALYSIS &

DISCUSSION

FINDINGS

EXHIBIT 1: SERVICES AVAILED BY THE CUSTOMERS

TOTAL NUMBER OF RESPONDENTS : 900

TOTAL NO.OF CUSTOMERS WHO HAS AVAILED THE SERVICES : 715TOTAL NO. OF CUSTOMERS WHO HASNT AVAILED THE SERVICES : 185

The chart above shows that out of 900 customers 715 has availed the servicesalready being provided and only 185 customers has not used the services. It can

be analy ed that most of the customers are aware about the services beingprovided by the IOCL. Thus 79% has rendered the services which suggest that

the service provided by the retailers is very good but they need to inform the

customers about the service so as to gain customers faith and loyalty so that thecustomer may be open for new initiatives like ATM and Convenio stores.

Y

s

%

%

SE VI ES VAILED

Y

s


22/39

22

EXIHIBIT 2 : SUGGESTIONS FROM THE CUSTOMERS TO

IMPROVE THE SERVICES

It can be concluded from the above chart that QUALITY(of both fuel and non

fuel products) is the most important factor that customers suggest to maintainand improve the standards of the services being provided. So,the company must

keep in mind that apart from convenience & facilities customer prefer to havethe best quality products and services.

236, 26

118, 13

96, 11

450, 50

SE VI E FEATURES

Quality

i

i

c

Facility

Id

a


23/39

23

EXHIBIT 3 : IMPORTANCE OF FACTORS FOR PURCHASE

ANALYSIS

It can be concluded from the above chart that price is the most important factorfor customers while making a purchase decision. So Indian Oil should try to

focus on the price aspect the most and should try to make the products availableat lower or at least equal to the market price

661, 73

167, 1! "

61, 7 11, 1

I PORTANT PURCHASE FACTOR

Price

Quality

Convininence of purchase

Variety


24/39

24

EXHIBIT 4 : INTEREST ANALYSIS OF THE CUSTOMERS

It can be observed that 84% of customers are open t o purchase their dailyhousehold low involvement items from the petrol pumps retail outlets of the

Indian oil, if they get it at reasonable price and are of good quality and of theirpreferred brand.

759, 84#

77, 9#

$

4, 7%

OPENESS LEVEL

Yes

&o

'

()

0

e


25/39

25

EXHIBIT 5: PRODUCT PREFERENCE ANALYSIS

The above chart shows that customers are open to buying low involvement purchase items like namkeen, pickles, ketchup & ice-creams from the retailoutlets of Indian Oil. For buying high involvement and cost purchase products

they want to purchase it from market so that they have more choice in terms ofvariety and price range. Thus high involvement products are not a good optionto stock.

Apart from it ,customers prefer to avail the facility ATMs & Service bays atthe retail outlet of the Indian Oil.

756814 827

489

0100200

00400500600700800900

PRODUCT PREFERENCE

Series1


26/39

26

EXHIBIT 6: ACCEPTANCE FOR NEW SERVICES

Thus as clear from the above chart considerable number of customers wouldlike to use the new services if they are available easily and at a reasonable rateAND WITH DISCOUNT COUPONS. Even customers who are not open to the

purchasing at retail outlets would like to use this facility if available. Thus i t is avery good way for Indian Oil to become more like a solution provider for home

needs and increasing its brand recall value.

59, 7

281, 31

412, 46

148, 16

NEW SERVICES ACCEPTANCE LEVEL

ever

Some times

ostl

Alwa s


27/39

27

EXHIBIT 7:TOTAL NUMBER OF TWO WHEELER & FOUR

WHEELER RESPONDENTS

Thus when the respondents were segregated into two -wheelers & four-wheelers

then it is evident from the above figure that 89% of car & 84% of two wheelersagreed to avail the services provided by the Indian Oil and 11% and 16% of the

car & two-wheelers disagreed respectively.

400,1 2

%

50, 11%

CAR

Y3

4

5O

376 , 7 4%

71, 18

%

TWO W EELER

Y 34

5O


28/39

28

EXHIBIT 8: AREA OF THE RETAIL OULETS IN SQUARE

FEETS

It is evident from the above figure that there are five retail outlets out of thetotal nine retail outlets which has the ample space ,which will be helpful in

promoting the NFR initiative by the Indian Oil Corporation as the customerexpects spacious parking facilities and good ambience.

18000, 199

11,000, 129

@

8A

0, 4%

7000, 7%

11,000, 12%8000, 9%

12000, 1@

%

12000, 1B %

10,000, 11%

AREA OF THE OUTLET INSQ. FT.

SSR

AliganjC

inaD

ak

Samthar

RKBK

Sahani

Shri RajE

F

G ind


29/39

29

E IBIT 9 :NUMBE OF PEOPLE WHO AGREE TO

AVAILTHE SERVICES AT DIFFERENT OUTLETS

Thus itis clear from the above chartthat out ofthe total9 outlets there are six

outlets at which more than 85% of the customers agreedto availthe non fuel

products and services being offered by the Indian OilCorporation

84, 11%

92, 12%

89, 11%

86, 11%

90, 12%

89, 11%

80, 10%

82, 11%

87, 11%

YES

Aliganj

Samthar

Vinayak

SSR

RKBK

ShriRaj

Hind

Sahani

VM


30/39

30

E HIBIT 10 :NUMBER OF CUSTOMERS WHO DID NOT

AGREED TO AVAILTHE SERVICES AT DIFFERENT

OUTLETS

Thus it can be inferred from the above figure thatthere are only 5 retail outlets

out ofthe total9 retail outlets at which more than 10% ofthe customers did not

agree to availthe non-fuel products/services at the petrol pumps ofthe Indian

OilCorporation.

Aliganj

H I

H 3%

Samthar

P

Q %

Vinayak

H H

9%

SSR

14

12%RKBK

10

8%

ShriRaj

11

9%

Hind

20

16%

Sahani18

15%

VM

13

11%

NO


31/39

31

SWOTANALYSIS

STRENGHTS:

Huge customer base, with high penetration level in all areas. High frequency of Customer interaction. Customers satisfaction with the current service levels of Indian Oil. Customers trust on products offered by Indian Oil Corporation Limited.

WEAKNESSES:

The acceptance level of new services is only 46%. Customers are finding the products costlier as the same products are

available in the retail market for cheaper price.

The product brands do not have much demand in the market. The retailers involvement is low in some areas resulting in distorting the

image of Non-fuel revenue initiative. Customers are not getting the information that the products are offered by

the company, they perceive it as a retailers initiative.

Unorgani ed way of selling products is not putting across a goodimpression.

The retailers are not stocking all the products simultaneously thusreducing the choice of the customers further

OPPORTUNITIES:

84% of the customers surveyed are interested in buying some productsfrom IOCL retail outlets if they are reasonably priced.

The company does not need to make any extra investment for advertising& marketing, because if the products are good word of mouth will be aneffective advertising medium.

THREATS:

The opening of Reliance and Star ba aar (Tata Group), which competemainly on the basis of price.

The availability of multiple brands at these outlets also gives thecustomer a wider choice.

The consumption of the daily household and sundry items are mainlyfrom the local retail outlet .


32/39

32

CONCLUSIONS

All the conclusions have been drawn from the data gathered through interviewswith the customers based on the questionnaire.

y The total number of customers who has availed the services are79%,which itself is a good sign for the potential growth in the NFR

generation initiative.

y In order to tap the 21% of the customers the retailers need to convey the

motive of the company to the customers.

y In total 50% of the respondents does not have any suggestions inorder toenhance the quality and the type of services to be provided at the retail

outlets.

y `Also 84% of the total respondents are ready to purchase the items likeSnacks,Cold-drinks & ice-creams,which are of the low involvement type.

y The customers are more inclined towards the services like ATMs andService Bays(vi . washing,wiping,lube changing etc.) .

y The acceptance level of the customer for the new services is merely 31%.

y It is so because the customer is confused about the quality of the non-fuelproducts as well as the motive of the company.

y The acceptance of the services among the four wheelers i.e. the cardrivers are quite high i.e. 89%.

y Though the acceptance level of the new services among the two wheelercustomers is also significantly high,but is less as compared to the four

wheeler customers.


33/39

33

y At all the retail outlets ,the most important factor that influence thebuying behavior of the customer is PRICE of the product.

y Among the two class of customers mostly four wheelers preferred thequality of the non-fuel product (106 of 167 i.e. 63.5%).Therefore the

corporation should tie up with reputed companies only.

y Only 11% of the total respondents suggested to enhance the facilities atthe retail outlets ,which suggest that most of the customers are satisfiedwith the facilities provided at the retail outlets.

y 9% of the total respondents refused to buy any products from theConvenio stores at the retail outlets of Indian Oil.

There is always scope of improvement, corporation should try different

things so that the awareness level of the customers regarding availablefacilities at the retail outlets can be communicated to the potential

customers.Thus it emerges from the analysis that efforts should be made to improve

the standard of the services provided to the customers..


34/39


35/39

35

fuel products, by informing them about the special prices of any

particular item when the customer comes at the retail outlet , by issuing arate list in Hindi and English and by giving it to the serviceman to showto the customers.

y Most of the sale is expected to be done through the serviceman at themoment of delivery .Therefore, IOCL can try to make it compulsory for

the ser iceman to carry the products with him and show the customerthe rate list so that impulse purchase may take place.

y Products which can be included in the product basket should includeproducts towards which the customer brand loyalty is low so that the

customers may go forimpulse purchase on seeing attracti e packaging

and offers.

y IOCL can try to ensure that the products which are supplie d by thesuppliers should have the Indian Oil logo.

y Some of the products which can be promoted are pickles, ketchups,papads, various kind of mix, namkeen, matchboxes, biscuits etc.These arelow in ol ement products and even the customers are not aware oftheir e act price in the wholesale or retail market and so chances of

comparison are less and also brand loyalty towards these products is less .

y USP can be achieved by giving the customers some points on thepurchase which can be redeemed for the fuel products/services at Indian

Oil Petrol pumps, something working on the same principle as thePetrocards/Fleetcards, it should be a program for customer loyalty .

y Thus on the basis of the total area of the retail outlets and the highpercentage of acceptance from the customers to avail the non-fuel

products & services of the Indian Oil at the separate petrol pumps & thetotal frequency of the customers per hour, I suggest the following 5petrolpumps which has greater potential for the NFR initiati e of the

company.These are :

1)SSR Filling Station,Janakipuram2)Aliganj Service Station,Aliganj

3)RKBK Limited,HAL4)Shri Raj Filling Station,Patrakarpuram

5)V.M.Service Station,Cantt.


36/39

36

REFERENCES

Books:

1. Churchill & Brown;Basic Marketing Research;Thomas Publications,5 thedition

2. William O. Bearden, Richard G. Netemeyer, Mary F. Mobley; Handbookof Marketing Skills; SAGE Publications.

3. Malhotra Naresh(2002),Marketing Research , Prentice Hall of India.

4. Kotler Keller(2006),Marketing Mangement5. Business Research Methods, Tata McGraw Hill ,9 th edition

Websites:

1- www.indianoil.com2- www.shell.com

3- www.google.com4- www.ficci.com5- www.hindubusinessline.com 6- www.shell.com7- www.bp.com8- www.wikipedia.com


37/39

37

QUESTIO AIRE

Indian Oil Corporation Limited

The following questions will help usserve ou better. So kindl spar

a few minutesto help usserve ou better. Thank You

1- Name: ..........................................s

2- Address: ...........................................

.........................................

R.Type of Vehicle & Vehicle No.: ................................................................................

4.Mobile/Landline No. .....................................................................................

1) S aveT

ou purchased anT

other product from the petrol pumps of Indian Oil

(or rendered anT

service like ATM etc.) other than oil & petrol?

Ans.)..................................................................................................

U

) WouldT

ou liketo suggestanT

measureto improvetheservices ofthe petrol

pumps currentlT

being provided or wouldT

ou likeanT

other service?

Ans.)..................................................................................................

V

) WhenT

ou buT

T

our grocerT

& other household items which factor is most

importanttoT

ou?

y Price


38/39

38

y Quality

y Convenience of Purchase

y Variety

4) If Indian Oil promises you a assured quality of grocery & other sundry

items,at reasonable price,on a continuous basis,would you like to purchase fromthe retail petrol pump outlets of Indian Oil?

y Yes

y No

y May be

5) Which of the following products would you be ready to purchase from IndianOil petrol pump outlets rather than market & be assured of its quality&price?(Please tick whichever is applicable)

y Basic grocery itemsy Namkeens/pickles/Ketchup/cold drinks

y Cook wares & Cookers

y BSNL/Airtel/Idea/Vodafone vouchers

y ATM

y Service bays

y Ice-cream Store

6) Would you be willing to buy the basic grocery & other household products

from Indian oil Petrol pump outlet if you receive a COUPON from him,depending on the amount of purchase,which can be redeemed when you buypetrol from an Indian Oil petrol pump?

y Never

y Sometimes

y Mostly

y Always


39/39

Documents

REPORT ON NFR