UNIVERSITY OF PETROLEUM & ENERGY STUDIES

College of Management and Economics Studies, Dehradun

Dissertation Report
On

CRM AND LOYALTY PROGRAMMES IN IOCL

Bachelor of Business Administration

(With specialization in OIL and GAS Marketing)

2014-2017

Submitted to: Submitted by:

DR. ANITA SENGAR CHETAN CHAUHAN

Assistant Professor SAP ID - 500041050
Enrollment No - R170214054

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 CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

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

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

Dr. Anita Sengar

Assistant Professor

(Lecturer CoMES)

(UPES, Dehradun)

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 ACKNOWLEDGEMENT

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

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

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

CHETAN CHAUHAN

Enroll no - R170214054

Sap Id - 500041050

BBA (Oil & Gas Marketing)

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 Student Declaration
I hereby declare that this submission is my own work and that, to the best of my knowledge and
belief, it contains no material previously published or written by another person nor material which
has been accepted for the award of any other degree or diploma of the university or other institute
of higher learning, except where due acknowledgment has been made in the text.

Signature of Student

Chetan Chauhan

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 TABLE OF CONTENT

SR. TOPICS PAGE. NO

NO
1 About Company
2 Introduction To IOCL
3 Introduction To Project
4 Introduction To CRM
5 Loyalty Programme an
Introduction
6 Literature Review
7 Research Methodology
8 CRM & Loyalty Programmes
9 Data Analysis &
Interpretation
10 Fleet card other features
11 Recommendations
12 Limitation of the study
13 Conclusion
14 Bibliography
15 Appendixes and Annexure

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 About Company

Indian Oil Corporation Limited

Indian Oil Corporation Ltd (IndianOil) is India's flagship national oil company with business
interests straddling the entire hydrocarbon value chain - from refining, pipeline transportation and
marketing of petroleum products to exploration & production of crude oil & gas, marketing of
natural gas and petrochemicals. The company is the leading Indian corporate in the Fortune 'Global
500' listing, ranked at the 98th position in the year 2011. The company's operations include
refineries, pipelines and marketing. Their portfolio of brands includes Indane LPGas, SERVO
lubricants, XTRAPREMIUM petrol and XTRAMILE diesel and Propel Petrochemicals. In
exploration and production, Indian Oils domestic portfolio includes 11 oil and gas blocks and two
coal bed methane blocks while the overseas portfolio consists of 10 blocks spread across Libya,
Iran, Gabon, Nigeria, Timor-Leste, Yemen and Venezuela. Indian Oil Corporation Ltd was
established in the year 1959 as Indian Oil Company Ltd. In the year 1964, Indian Refineries Ltd
merged with Indian Oil Corporation Ltd. Indian Oil Blending Ltd a wholly owned subsidiary was
merged with IndianOil on May 2006. The company transferred their entire equity holding in Indian
Strategic Petroleum Reserves Ltd (ISPRL) to the Oil Industry Development Board, a government
body functioning under the Ministry of Petroleum & Natural Gas. Consequently, ISPRL ceased to
be a wholly owned subsidiary in May 2006. The company formed one subsidiary company, namely
IOC Middle East FZE, in Jebel Ali Free Trade Zone Dubai, with the objective of marketing
lubricants and other petroleum products in Middle East, Africa and CIS regions. In June 2006, they
incorporated a joint venture company namely, Indo-Cat Pvt Ltd with Intercat.Inc of USA for
manufacture and marketing of FCC catalysts and additives. In the year 2007, the company received
plenty of awards, Oil Industry Safety Directorate Awards, 'Most Admired Retailer of the Year'
award, 'CIO 100 Award 2007', SAP ACE - Awards for Customer Excellence and the only petroleum
company as 'The Most Trusted Brand' in ET's Brand Equity's annual survey. The SERVO acquires
prestigious MAN Global approvals, Indian Oils R&D Centre gets special recognition for
Bioremediation and also SERVO secures entry into NSF White Book - H1 Category during the
period. The company won Retailer of the Year - Rural Impact Award and their XtraPower won
Loyalty Summit Award during the year 2008. In January 2008, the company and Hindustan

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Unilever Ltd (HUL) signed a MoU for setting up Kwality Walls Kiosks at select IndianOil petrol
stations across the country. Also, the company entered into a MoU with

Transparency International India (TII) for implementing an Integrity Pact Programme focused on
enhancing transparency in their business transactions, contracts and procurement processes. In
April 2008, the company launched 'LNG at Doorstep' facility at the Pen unit of H&R Johnson, the
facility, first of their kind in the country, which are primarily aimed at catering to the needs of
Liquefied Natural Gas (LNG) customers who are not located on the main natural gas pipelines. The
company was conferred with the 'Maharatna' status by the Government of India which provides
enhanced autonomy and larger flexibility for its operation. During the year 2009-10, the company
commissioned 238 new retail outlets and 414 Kisan Seva Kendra (KSK) outlets taking their total
tally to 18,643. The company's Indane LPG brand earned the coveted status of 'Superbrand'. On the
lines of KSK, the Rajiv Gandhi Grameen LPG Vitarak Yojana was launched to penetrate rural
markets. During the year, the company was granted the Petroleum Exploration License for one of
the two Type-S blocks in Cambay basin for which it is the operator. Upon getting the license,
exploration activities were initiated in the block. The company was awarded a project for the
development, extraction, up gradation and marketing of heavy oil in Carabobo heavy oil region of
Venezuela in consortium with Repsol, Petronas, ONGC Videsh Ltd. and Oil India Ltd. During the
year 2010-11, the company enrolled about 46.8 lakh new Indane LPG customers and
commissioned 245 new Indane distributors taking their total to 618.3 lakh and 5,311 respectively.
The LPG Bottling capacity was enhanced to 5,518 TMTPA with capacity addition of 326 TMT. In
order to provide LPG to rural India, the company commissioned 145 distributors under the Rajiv
Gandhi Gramin LPG Vitaran Yojana under the auspices of Ministry of Petroleum & Natural Gas.
As a part of their CSR activity, 10,052 new connections were released to BPL families. During the
year, the company formed a joint venture company was formed with Nuclear Power Corporation of
India Ltd (NPCIL) for setting up Nuclear power plants. In July 2010, the company commissioned
their first gas pipeline between Dadri and Panipat and thus they commenced gas supplies to Panipat
Refinery. In a bid to scale up their gas infrastructure, a 5 MMTPA LNG Import & Re-gasification
Terminal Project was planned at Ennore, Tamil Nadu. This LNG Terminal would be the first of its
kind on the East coast of India. Furthermore, in consortium with GSPC, HPCL and BPCL, the
company won gas pipeline bids for Mallavaram to Bhilwara and Vijaypur via Bhopal, Mehsana to
Bhatinda and Bhatinda to Jammu and Srinagar.

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 INTRODUCTION TO IOCL

OVERVIEW OF INDIAN OIL COROPORATION LTD.

Indian Oil Corporation (IOCL), established in 1959, is engaged in exploration and production and
marketing of oil. It is Indias largest company sales wise with a turnover of Rs2,47,479 crore ($
59.22 billion).IOCL has sub diaries namely Indian oil Technologies, Chennai Petroleum
Corporation, Bongaigaon Refinery & Petrochemicals, Indian Oil (Mauritius) and LankaIOCL.

Out 19 refineries, IOCL owns and operates 10 with a combined capacity of capacity of 60.2
million metric tons per annum (MMTPA), i.e. 1.2 million barrels per day. It has 166 bulk storage
terminals and depots, 101 aviation fuel station and 89 Indane bottlingplants.

The refining major has a countrywide network of petrol and diesel stations with 17,600 retail
outlets. Its Indane cooking gas network has apresence in 50 million households through its
distribution network of 5,000 distributors. It provides spectrum of petroleum products through its
retail outlets like Xtra Care (Urban), Swagat (Highway) and Kisan Seva Kendras (Rural).

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

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

IOCL and GAIL have signed a memorandum of understanding for cooperation in setting up a
Rs10,000 crore petroleum plant at Barauni in Bihar.Indian Oil launched its lubricant brand Servo
in Oman. Servo has 500 different grades and 1200 varied formulations.IOCL is the highest
ranked Indian company In Fortune Global 500 list. It is 18th largest petroleum company in the
world. It is Indias most trusted fuel pump brand as per the survey conducted by ET brand equity
and AC Nielsen. It has received National Award for Innovation in Implementing Business
Continuity for SAPR/3 Environment from the Government ofIndia.
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VISION AND MISSION OF INDIAN OIL CORPORATION LTD

Vision:

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

Global Compact Principles addressed in our MISSION statement:

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

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

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

Mission:

To achieve international standards of excellence in all aspects of energy and diversified

business with focus on customer delight through value of products and services, and
costreduction.

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

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

To provide technology and services through sustained Research and Development.

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

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

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

1) INDANEGAS:-

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

Bringing about a kitchen revolution spreading warmth and cheer in millions of households with
the introduction of the clean and efficient cooking fuel. It has led to a substantial improvement in
the health of women, especially in rural areas by replacing smoky and unhealthy chulha, indane is
today an ideal fuel for modern kitchens.

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

1) AUTOGAS:

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

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

1) Naturalgas:

Drawing on its vast experience and carefully nurtured skill sets, Indian Oil has made successful
forays in diverse areas such as Natural Gas, Petrochemicals, Exploration & Production,
Renewable Energy, etc.
Over the years, Natural Gas has emerged as the 'fuel of choice' across the world. It is steadily
replacing traditional fossil fuels due to its environment friendly characteristics which help in
meeting the stipulated automobile emission norms. Natural Gas has significant cost advantages
over fuels such as Naphtha and commercial LPG. Demand for Natural Gas in India is primarily
driven by the fertilizer and power sectors, which account for almost two-third of the countrys
gasconsumption.

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

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

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 1) DIESEL/GASOIL:

Diesel is used in diesel engines, a type of internal combustion engine. Rudolf Diesel originally
designed the diesel engine to use coal dust as a fuel, but oil proved more effective. Diesel
engines are used in cars, motorcycles, boats and locomotives. Automotive diesel fuel serves to
power trains, buses, trucks, and automobiles, to run construction, petroleum drilling and other
off-road equipment and to be the prime mover in a wide range of power generation & pumping
applications. The diesel engine is high compression, self-ignition engine. Fuel is ignited by the
heat of high compression and no spark plug isused.

2) ATF/JETFUEL:

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

IOCL SERVICES

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

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

SWOT ANALYSIS

Strengths:-

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

Huge distribution network throughretailing

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

Loyalty programs like XTRAPOWER Fleet Card Program is aimed at Large

FleetOperators.

Weakness:-

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

Legalissues

Employeemanagement

Bureaucracy

Volatility in the crude market & subsidyburden

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Opportunity:-

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

Increasing fuel/oilprices

Increasing natural gasmarket

Expand export market

Threats:-

Sincethecompanyisthemarketleaderinthefield,sohavemaximumthreatsfromtheother players and many other

issues. The lists of threats are given below.

The foreign players with more advanced technology are the biggest threat for the company.
The crude oil supply is also a big issue in front of the company, because the company cannot fix
its price and so, some time had operated in loss also It is the biggest problem because the
maximum part of their crude is been imported.
In future the market will welcome more private players, which will eat up its market share.
If the Govt. Policies allow the private players to set their own price, the private player can seriously
harm the market share ofIOCL.

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Introduction to the project:

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

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

MAJOR OBJECTIVE OF THE PROJECT ARE-

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

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INTRODUCTION TO CRM

CUSTOMER RELATIONSHIP MANAGEMENT

CRM Business objectives

Single source for customer

information by account type
(distributor, dealer, wholesaler,
retailer)

Partner Relationship Management

Call Centre

Managing sales representatives

network

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

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

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

Marketing Automationis the most comprehensive campaign management solution

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

Marketing Optimizationapplies sophisticated mathematical approaches to optimize

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

The idea of CRM is that it helps businesses use technology and human resources to gain insight
into the behavior of customers and the value of those customers. If it works as hoped, a
business can:

Provide better customerservice

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 Make call centers moreefficient
Cross sell products moreeffectively
Help sales staff close dealsfaster
Simplify marketing and salesprocesses
Discover newcustomers
Increase customerrevenues

ARCHITECTURE OF CRM

There are three parts of application architecture of CRM:

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

Operational CRM

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

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

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

critical sales and sales force management functions, for example, lead/account
management, contact management, quote management, forecasting, sales
administration, keeping track of customer preferences, buying habits, and

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 demographics, as well as sales staff performance. SFA tools are designed to improve
field sales productivity. Key infrastructure requirements of SFA are mobile
synchronization and integrated product configuration.

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

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

Enterprise Marketing Automation (EMA): EMA provides information

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

Analytical CRM

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

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

1. Contact Channel Optimization

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

6. PricingOptimization

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 7. ProductDevelopment
8. ProgramEvaluation

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

Collaborative CRM

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

Collaborative CRM provides the following benefits:

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

BENEFITS OF CRM SYSTEM

Give customer-facing employees the best tools available

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

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 CRM IMPLEMNETATION & RESULTS

C C
R u
M s t
o
m
e
e
r
l
o
y
a l
t
y

Understandin
Increase revenue Improving Market
Reduce cost Source positive g-customer
and profitability world of mouth customer services share and
requirement.
growth

Complain
With membership
rewards strategy
Reduce internal request
cost
instead of mass
marketing
Personalizatio
n
With up selling and Reduce
closeselling marketingCost
Customer support and
services

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 LOYALITY PROGRAMME AN INTRODUCTION

Loyalty programs are structured marketing efforts that reward, and therefore encourage,
loyalbuyingbehavior. Behaviorwhichispotentiallyofbenefittothefirm.Earningcustomer loyalty goes
beyond gaining customer satisfaction. Loyal Customers evangelize the brand by sharing their satisfactory
experience with their friends and colleagues. A great product or service is the starting point for
customer loyalty. Great marketers architect loyalty programs from day one. Loyalty programs
are initiated by businesses with two main goals. The primary goal for most loyalty programs is the
acquisition of information relating to their customers' spending habits, while the secondary goal is to
actively cultivate loyalty amongst customers to ensure they continue patronizing the business. While
some companies do reverse these priorities, the above hierarchy holds true for most. Loyalty
programs may offer benefits in a number of different ways. Many loyalty programs offer
sustained discount (such as 10%) for a period of time - perhaps a year, perhaps for the life of the business.
Others offer a discount once certain criteria have beenmet.
For example, a 20%discount on a single purchase once a customer has spent Rs 2000 at the business. Still
others offer points which may then be redeemed for products which may or may not be directly
related to the business. Loyalty cards are the most common form of loyalty programs found
throughout the world today. Some of the first loyalty programs were instituted by airlines in the 1970s in
the form of frequent
flyermiles.Intheseloyaltyprograms,oneaccruespointsbyflyingontheairlineandthencashes in' the points in
exchange for tickets, upgrades, or even third-party benefits. In the past decade, many nonairline businesses
have combined their own loyalty programs with those of the airlines, offering frequent flyer miles in
exchange for everything from telephone usage to purchasinggasoline.

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

22
 movinglinesorspecialparkingspaces.

Ultimately,thesuccessofloyaltyprogramsdependsonhowwellthebusinessusesthedatait gathers to further

refine its policies and loyalty programs. Many businesses find little profitinthe use of loyalty programs,
while others, such as eBay, attribute much of their financial success toawell-
executeduseofsuchprograms.

An Integral part:-

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

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

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 LITERATURE REVIEW

CRM

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

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

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

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

Vijayakumar and Venkatachalam (1995)in Working Capital and

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

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

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

Vijayakumar (1996)in Assessment of Corporate Liquidity a

discriminate analysis approach has revealed that the growth rate of sales,
leverage, current ratio, operating expenses to sales and vertical integration are the
important variables which determine the profitability of companies in the sugar
industry. Further, the author has studied the short-term liquidity position in
twenty-eight selected sugar factories in co-operative and private sectors. A
discriminate analysis has been undertaken to distinguish the good risk companies
from poor risk companies based on current and liquidity rations. Discriminating
Z scores have been calculated with the help of discriminate function and
according to the Z scores the companies are ranked in the order ofliquidity.

Sidhu and Gurpreet Bhatia (1998)studied the factors affecting

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

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

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

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

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

Sudarsana Reddy (2003)studied the Financial Performance of Paper

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

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

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

RESEARCH METHODOLOGY

RESEARCH PROBLEM:

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

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

PROBLEM FORMULATION:

To study the CRM AND LOYALITY PROGRAM IN IOCL

RESEARCH OBJECTIVE:

The study is conducted with the following objectives:

To provide the effectiveness of loyalty program adopted by IOCL retail outlet.

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

DATA COLLECTION:

Data collection has been done through:

Primary Data, which includes:

questionnaire
interviews
observations
Secondary Data, which includes:

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

Text Books
Articles
Journals
Websites
RESEARCH DESIGN:

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

SAMPLING DESIGN:

Sampling is the process of selecting a small number of elements from a larger defined target group
of elements such that the information gathered from the small group will allow judgments to be
made about the larger groups.

Non-probability sampling/ Judgemental sampling is used as it is very convenient, takes less

time, and it is of low cost.

Judgmental sampling is a form of convenience sampling in which the population elements are
selected based on the judgment of the researcher.

SAMPLING TECHNIQUE

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

SAMPLE SIZE:The sample size determines the number of respondents required for the survey.
The sample size for this survey is 100.
Research Instrument

A questionnaire was the instrument used in this study to collect data. The questionnaire employed
the typical form of fixed-response alternative questions that require the respondent to select from a
predetermined set of answers to every question. According to Malhotra and Birks (2003, pp. 224),
this survey approach is the most common method of primary data collection in marketing research
and the advantages are simple administration and data consistency. The survey questionnaire is
administered on the streets (mode of data collection): the questionnaires are filled out mostly by the
people themselves.

Area of operation

The area of operation is Dehradun

PANWAR FILLING STATION

AASHIRWAAD FILLING STATION

Following softwares has been used during analysis and compilation of data:-

Microsoft Excel

SPSS
CUSTOMER RELATIONSHIP MANAGEMENT AND LOYALTY
PROGRAMMES

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

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

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

With growing competition in the petro-retailing sector, todays consumer is becoming more
andmoredemanding.Theemergenceofnew psychographicsegments inpetro-retailmarket bears the testimony
to this fact. A closer look at these segments tells us what exactly a consumer is looking for
whenever he goes to a fuel station to purchase fuel. He looks for-Quality &Quantity assurance Quick filling
and efficient forecourt service rewarding loyaltyPremiumfuelsCashlesstransactionsNon-
fuelservices.Theimmensecompetitionwill makeloyaltyprogramsanintegralprogramoftheday-to-
dayfunctioningofpetro-retailing. Of course, rightnow many such loyalty programs are being run by the
petro-retailers like Secunderabad, with plans to reach other cities soon. The loyalty programme
rewards customers paying by cash, credit and debit cards. Each transaction is confirmed online
through a charge slip and customers can earn points on fuel/lube purchases at participating
Indian Oil retail outlets. Additional points can also be earned outside the Indian Oil network,
covering prominent FMCG, Food, Automobile, Travel, Entertainment, Apparel and Hospitality
sectors. Apart from redeeming the accumulated points instantly on fuel / SERVO lubricants at
participating retail outlets, card-holders can also redeem the points to get exciting gift items
from a catalogue. The redemption on gifts can be registered either from the participating retail
outlets or from the comfortable confines of one's home through the 24x7 IVRS Help Line (1800
22 4111). The programme continuously provides the cardholder with privileges, benefits and
offers from a large number of alliance partners, including restaurants, pizza companies,
automobile service stations, jewelers, and online shoppingcompanies.

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

Extra power fleet card

Largest Network of Retail Outlets pan India (Including very remoteand

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

Q1- Doyouvisit theIOCL fuelstationregularly?

o Yes 50
o No 30
o Sometimes 20

o Yes o No o Sometimes

Q2- What is the usual mode ofpayment?

o Cash 70
o Xtra power fleetcard 25
o Credit/debitcard 05
 o Cash o Xtra power fleet card o Credit/debit card

Q3- Do you know about the Xtra Power fleetcard?

o Yes 60
o No 40
 o Yes o No

Q4- From where did you come to know about the fleet cardprogram?

o Advertisement 45
o Newspaper 25
o IOCLL retailoutlet 15
o Magazine 9
o Other 6
 o Advertisement o Newspaper o IOCLL retail outlet
o Magazine o Other

Q5- Areyousatisfiedwiththeserviceoffleetcard?

o Yes 55
o No 35
o Partlysatisfied 10
 o Yes o No o Partly satisfied

Q6- Doyou useyour fleetcardregularly?

o Yes 68
o No 20
o Sometimes 12
 o Yes o No o Sometimes

Q7- What improvementsdo you wantinthe fleetcard loyalty program?

o Betterservicestothecard holders 45
o More attractiveoffers 35
o Others 20

o Better services to the card holders

o More attractive offers
o Others
Q8- Segment asking for different facilities?

ATM

Service Station

Departmental store

Food Joint

0% 20% 40% 60% 80% 100% 120%

Fleet card other features

Easy Fleet Management:-

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

Rewards - Free Fuel & Gifts:-

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

Tracking:-

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

Easy Cash Flow Management:-

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

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

Insurance Benefits:-

XTRAPOWER Fleet Program offers Insurance benefits like -

Road Personal Accident Insurance of Rs.50,000 per card to fleet owner up to a

maximum of Rs.20,00,000/-; For Drivers Rs.1,00,000; Helper - Rs.50,000/-
Road Accident related Medical Insurance during the period of Insurance coverage* (a)
Owner: Rs.10000/- per card subject to maximum of Rs.1, 00,000/-, (b)
Driver:Rs.10000/-, (c) Co-Driver: Rs.10000/- and (d) Helper-cum-cleaner: Rs.10000/-.
This benefit is available only for hospital expenses incurred for injuries arising from
road accidents only. (*Terms and conditionsapply.)
 DRIVER CARDS: DRIVERS are insured against enrolled Driver cards. Drivers must
have a Valid Driving License and should be driving at least an LMV involved in a road
accident to be eligible for theclaim.
So far, about Rs.2, 00, 00,000 of benefits have been settled rendering financial and
social security to the kin of truck crew. This kind of claim settlement is unique and
unmatched in theindustry.

Care for your Truck Crew:-

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

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

The Indian Oil should try to reduce the waiting time period for customers either by
increasing efficiency or increasing the staff

Operators should try to make the website layout as simple and easy as they can, so that
each and every person may access it

Indian Oil should work upon the quality of distribution network, schemes as well as
CRM activities to increase their customer base

Customers of Dehradun mostly prefers to buy Indian Oil products from retail outlets, so
Indian Oil should open more of retail outlets and it can make a direct relation with
customers.

For effective implementing CRM The key thing to remember here is that CRM is not a computer
system, it isn't a line item in a marketing budget and certainly is not a fad: CRM is an approach
to the customer that involves and embraces the hotel guest, making them want to be the guest of
your property or your brand forever. If hoteliers want to be successful in implementing CRM
generally they should use all types of CRM in right place. Each segment should be used in the
following ways:

In general guidelines in below will help hotels in successful implementation different aspect
of CRM:

1-Customer classification - Customer should be analysed through the corporation's data mining
tool and put in special segments. Segmentation will help Sector manage their customer as
individuals or small groups become fluent in analysing customer data.

2-Services segmentation - Part of your CRM strategy needs to be a means of ranking your
guests to identify the most valuable (according to guest classification) and then servicing
them differentially. According to your service classification with help of Services classification
hotels must focus their services on Customer Cycles and needs also one to one marketing, up-
selling, cross selling and follow-up sale could be done easily.

3-Data Capture and Maintenance (data warehousing) - Data warehouses and data mining are
the most popular and highly needed systems for providing CRM capabilities or else for defining,
developing and managing ""the segment of one'' .Collection of information should be used for
further analysis of the guest structure. In this way the analytical approach should be use as an
essential tool for moving beyond a 360- degree view of the guests and providing greater
predictability into behaviour. This data should be gathering via interacting of customer with
hotels in many ways and that would generate a whole new collection of data but useful data that
useful things could be done with them. Informed investments in a portfolio of customer should
include knowledge about:

Customers' behaviour (such as preferences, priorities, and activities)

Customers value in terms of customer profitability, customer lifetime value, and potential.

A clear understanding of the composition of a customer portfolio and how you can optimize it

4-Customer complaints - An effective CRM system should have numerous mechanisms for
identifying customer problems. Complains should be considered as opportunities of getting
closer to customers.

5-Making relationship with customers (collaborative) - A goal of CRM is to manage the

various stages of the relationship systematically and proactively. Customer relationship
processes should incorporate a means of determining how much customers are costing a hotel so
that the more profitable relationships should be targeted. To broadening customer relationships
these issues should be measured
Determine among existing customers, which particulars should be kept
Determine which customers will drive most of the company's profits.

Determine which customers might switch to competitors and the reasons.

 LIMITATIONS OF THE STUDY
1. All the information, which is taken, is based on primary and secondary data that has its
own limitations.

2. There may be a possibility of biasness in the response of some respondents, due strong
brand loyalty toward any particular petroleum company i.e. IOCL brand but utmost care
has been taken to make this report unbiased.

3. Some respondents may not have given the correct information and views due to their lack
of interest and shortage of time. However proper care is taken to avoid such respondents

4. Time constraint, within a period of few week whole study and research is conducted.

6. Most of the respondents especially female respondents are reluctant to share some
personal information like contact details. They sometime fill the questionnaire after
discussing with their acquaintance

7. This research is conducted in IOCL petroleum retail outlets of Dehradun, but it is very
difficult to judge the whole of Uttarakhand consumer behavior and perceptions on the
bases of only small sample and that too of only few areas.
 CONCLUSION
It is concluded that there is competition among the service provider to capture new and retain
existing customers. The services provided by most of oil and petroleum products giants are
satisfactory but there is large scope of improvement. CRM activities and value creation (loyalty
programmes) is key for retaining customers. In this area most of oil and petroleum product has
already started most leadership working, companies are now designing way of offering schemes
for value creation.

Employee behavior plays a vital role in CRM execution of every company. Customer touch
points like website, customer care, authorized retail outlet is now becoming a portal for creating
relationship. Though the customers are highly unsatisfied with long waiting time ad it shows that
there is lack of efficiency or representative. This can lead to feel of dissatisfaction among the
customers. Indian Oil must target to sort out the urgent issues of customer with in short span of
waiting as well as problem resolving time to build trust and sustainable relation.

On the various parameter taken for satisfaction, distribution network and quality services of
Indian Oil is most important for customers so oil and petroleum companies are focusing on these
parameters for competitive advantage.

Based on the empirical data and analysis we found that petroleum company like IOCL is
experiencing increased globalization, competition, higher customer turnover, growing customer
acquisition costs and rising customer expectation meaning of petroleum company performance
and competitiveness is significantly dependent on their ability to satisfy customer efficiently and
effectively. To enhance customer satisfaction and profitability Petroleum Company must focus
on implementing Customer Relationship Management strategies that aims to seek, gather and
store the right information, validate and share it throughout the entire organization and then use it
throughout all organizational levels for creating personalized relationship and unique customer
experience.

According to the result of testing our hypothesis implementing CRM in the form of gathering
information for personalization of services, using one to one marketing plans, improving
customer services and benefits will increase customer satisfaction, retention and loyalty.
Customer satisfaction will increase customer loyalty and customer retention. Customer retention
is really important and good for both business and customers for business since customer stay
longer, buy more and more frequently it increase wallet share also it is cheaper to keep existing
customer happy rather than to attract new ones. Dyche stated that five percent increase in
customer retention results in a 25 to 95 percent increase in profits.

A successful implementation of CRM with more satisfied and loyal customers have a lot of
benefits for FMCG industry such has increase revenue and profitability, reduce internal costs,
reduce marketing costs, improving customer services, positive word of mouth, market share
growth, improving marketing methods, streamlined business process, better understanding/
addressing customer requirements, higher employee productivity and protect marketing
investment with maximize returns. All these benefits for Petroleum Company can be source of
long term and sustainable competitive advantage.
 BIBLIOGRAPHY

Books & Journals

1 Philip Kotler, Marketing Management, Eleventh Edition; Printace Hall, India.

2 Harper W. Boyd Jr., Westfall & Stanley; Marketing Research; Seventh Edition; AITBS.

3 C.R.Kothari, Research Methodology, Twenty second Editions; WishwaPrakashan.

4 Daadlani, M., Shanker, R., Chopra, P. (2010). Benefits of implementing a CRM system
in oil and petroleum service provider, In Sheth, J. N., Parvatiyar, A. &Shainesh. G (Eds.)
Customer Relationship Management, Emerging Concepts, Tools And Applications, Tata
McGraw Hill Education Private Limited.pp 424-433

5 Ling, C. E., Run, E.C. (2009). Satisfaction and Loyalty: Customer Perception of petroleum
service providers. ICFAI, University journal of service marketing, Vol.VII, No. 1.

6 Bose, R. 2002. Customer Relationship Management: key components for IT success,

Industrial Management & Data System, Vol 102 No. 2, pp. 89-97

Websites

www.iocl.com
www.crm-petrol-products.org

www.retailoutlets-petroleum.com
 Appendixes and Annexure

QUESTIONNAIRE

The purpose of this questionnaire is to find out your

perception towards this subject.Your cooperation to
answer the questions is very much appreciated. Please
feel free to give out your views as the questionnaire will
be carried out anonymously.
Name_________________________ Age __________________

Gender________________________ Contact Number________________

Q1-Do you visit the IOCL fuel station regularly?

A. Yes 50
B. No 30
C. Sometimes 20

Q2-What is the usual mode of payment?

A. Cash 70
B. Xtra power fleetcard 25
Credit/debitcard 05

Q3-Do you know about the Xtra Power fleetcard?

A Yes 60

BNo 40
Q4-From where did you come to know about the fleet cardprogram?

A. Advertisement 45
B. Newspaper 25
C. IOCLL retailoutlet 15
D. Magazine 9
E. Other 6

Q5-Are you satisfied with the service of fleetcard?

A. Yes 55
B. No 35
C. Partly satisfied 10

Q6- Do you use your fleet card regularly?

A. Yes 68

B. No 20

C. Sometimes 12

Q7-What improvements do you want in the fleet card loyalty program?

A. Better services to the card holders 45

B. More attractive offers 35

C. Others 20

Q8- Segment asking for different facilities?

A. ATM
 B. Service Station
C. Departmental Store
D. Food Joint

Q9- Do you have any further comments or suggestions on any aspects of a retail outlet and
facilities which can be improved?
______________________________________________________________________________
________________________________________________________________________