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Brand Performance of Xtramile super diesel of Indian Oil

Corporation Ltd.

(A Summer Internship Report)


Under

Indian Oil Corporation Limited


Indian Oil Bhawan, 1, Sri Aurobindo Marg, Yusuf Sarai, New Delhi-110016

Submitted in partial fulfillment of the requirements of the course

Post Graduate Diploma in Management


(Session: 2009-2011)
Project Guide
Mr. Akash Sethi

Faculty Guide
Ms. Ritu Srivastava

Submitted By
Roopam Saxena
Roll No.29092
PGDM (2009-2011)

NIILM Centre for Management Studies


Knowledge Park V, Greater Noida, U.P
Indian Oil Corporation Limited
Study on Brand Performance of Xtramile Diesel

INFORMATION SHEET

1) Name of the company- Indian Oil Corporation Ltd.

2) Address of the company- Indian Oil Bhawan, 1, Sri Aurobindo Marg, Yusuf Sarai, New
Delhi-110016

3) Phone No. of the company-9212455198

4) Date of internship Commencement-3rd May 2010

5) Date of internship Completion- 3rd July 2010

6) Signatures & Name of the industry Guide- Mr. Akash Sethi

7) Designation of the industry Guide- Sr. Manager (Training & Development)

8) Student’s Name- Roopam Saxena

9) Student’s Roll Number-29092

10) Student’s E-mail ID- saxena.roopam@gmail.com

11) Student’s Mobile/ residence numbers- 9873995971, 9013013512

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Study on Brand Performance of Xtramile Diesel

CERTIFICATE OF AUTHENTICITY

August 18, 2010

This is to certify that dissertation report on “Study on Brand Performance of Xtra Mile”
prepared by “Roopam Saxena”, Roll No.29092 of PGDM 2009-2011 Batch is his original
work under my guidance and supervision.

Signature of the Faculty Signature of the Student


(Ms. Ritu Srivastava) (Roopam Saxena)

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Study on Brand Performance of Xtramile Diesel

Table Of Contents

S. No. Particulars Page No.


1. Introduction to the organization 3-8
2. Introduction to the project 9
3. Objective 9
4. Literature Review 9-10
5. Methodology 10-14
6. Results and data analysis 14-32
7. Conclusion and recommendations 32-34
8. Limitations 34
9. Appendix 1 35-37
10. Appendix 2 38
11. Appendix 3 39

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Study on Brand Performance of Xtramile Diesel

ACKNOWLEDGEMENT

This project is the outcome of sincere efforts, hard work and constant guidance of not only me
but a number of individuals. First and foremost, I would like to thank NIILM-CMS for giving me
the platform to work with such a company. I am thankful to my faculty guide Ms. Ritu
Srivastava, NIILM-CMS for providing me help and support throughout the internship period.

I owe a debt of gratitude to my company guide Mr. Akash Sethi, Sr. Manager (T & D), Indian
Oil Corporation Ltd., Yusuf Sarai who not only gave me valuable inputs about the industry but
was a continuous source of inspiration during these two months, without whom this Project was
never such a great success..

I would also take the opportunity to thank the entire staff of Indian Oil Corporation Ltd., Yusuf
Sarai who helped and shared their knowledge about the industry for which I am highly grateful.

Last but not the least I would like to thank all my Faculty members, friends and family members
who have helped me directly or indirectly in the completion of the project.

Roopam Saxena
PGDM 2009-2011
NIILM-CMS

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Study on Brand Performance of Xtramile Diesel

1. Introduction to the Project

In the year 2002, IOCL launched its value added fuels: Xtramile and Xtrapower. The major competitors,
HPCL and BPCL, have also launched products in the same categories. The consumer today is demanding
and always looks for better products. In such a scenario of high competition, the companies can not just
launch a product and sit back. They need to monitor the value of their products, the brand, etc. in the
eyes of customers. In this project, we are trying to do the same. We conduct a study to determine the
brand performance of Xtramile super diesel.

2. Introduction to the organization:

Incorporated as Indian Oil Company Ltd. on 30th June 1959, it was renamed as Indian Oil Corporation
Ltd. on 1st September 1964 following the merger of Indian Refineries Ltd. (established 1958) with it.
IndianOil and its subsidiaries account for approximately 48% petroleum products market share, 34%
national refining capacity and 71% downstream sector pipelines capacity in India. The IndianOil Group of
companies owns and operates 10 of India's 20 refineries with a combined refining capacity of 60.2
million metric tonnes per annum (MMTPA, .i.e. 1.2 million barrels per day). The Corporation's cross-
country network of crude oil and product pipelines, spanning over 10,550 km and the largest in the
country, meets the vital energy needs of the consumers in an efficient, economical and environment-
friendly manner. IndianOil is currently investing Rs. 47000 crore in augmentation of refining and pipeline
capacities, expansion of marketing infrastructure and product quality upgrade. As the flagship national
oil company in the downstream sector, IndianOil touches millions of lives every day through a
countrywide network of over 35,600 sales points. They are backed for supplies by 167 bulk storage
terminals and depots, 98 aviation fuel stations and 88 Indane (LPGs) bottling plants. About 7,593 bulk
consumer pumps are also in operation for the convenience of large consumers, ensuring products and
inventory at their doorstep. IndianOil operates the largest and the widest network of petrol & diesel
stations in the country, numbering 18,643 including 2947 Kisan Seva Kendras (KSK) outlets in the rural
markets. Indane cooking gas is present in 2,764 markets through a network of 5,095 Indane Distributors.
IndianOil's ISO-9002 certified Aviation Service commands almost 63% market share in aviation fuel
business, meeting the fuel needs of domestic and international flag carriers, private airlines and the
Indian Defence Services. The Corporation also enjoys 65% share of the bulk consumer business,
including that of railways, state transport undertakings and industrial, agricultural and marine sectors.

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Study on Brand Performance of Xtramile Diesel

Products

IndianOil's product range covers petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants, naphtha,
bitumen, paraffin, kerosene etc. Xtra Premium petrol, Xtra Mile diesel, Servo lubricants, Indane LPG,
Autogas LPG, Indian Oil Aviation are some of its prominent brands. Recently, Indian Oil has also
introduced a new business line of supplying LNG (liquefied natural gas) by cryogenic transportation. This
is called "LNG at Doorstep". LNG headquarters are located at the Scope Complex, Lodhi Road, Delhi.

Refineries

 Digboi Refinery, in Upper Assam, is India's oldest refinery and was commissioned in 1901.
Originally a part of Assam Oil Company, it became part of IndianOil in 1981. Its original refining
capacity had been 0.5 MMTPA since 1901. Modernization project of this refinery has been
completed and the refinery now has an increased capacity of 0.65 MMTPA.

 Guwahati Refinery, the first public sector refinery of the country, was built with Romanian
collaboration and was inaugurated by Late Pt. Jawaharlal Nehru, the first Prime Minister of
India, on 1 January 1962.

 Barauni Refinery, in Bihar, was built in collaboration with Russia and Romania. It was
commissioned in 1964 with a capacity of 1 MMTPA. Its capacity today is 6 MMTPA.

 Gujarat Refinery, at Koyali in Gujarat in Western India, is IndianOil’s largest refinery. The refinery
was commissioned in 1965. It also houses the first hydrocracking unit of the country. Its present
capacity is 13.70 MMTPA.

 Haldia Refinery is the only coastal refinery of the Corporation, situated 136 km downstream of
Kolkata in the Purba Medinipur (East Midnapore) district. It was commissioned in 1975 with a
capacity of 2.5 MMTPA, which has since been increased to 5.8 MMTPA

 Mathura Refinery was commissioned in 1982 as the sixth refinery in the fold of IndianOil and
with an original capacity of 6.0 MMTPA. Located strategically between the historic cities of Delhi
and Agra, the capacity of Mathura refinery was increased to 7.5 MMTPA.

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 Panipat Refinery is the seventh refinery of IndianOil. The original refinery with 6 MMTPA
capacity was built and commissioned in 1998. Panipat Refinery has doubled its refining capacity
from 6 MMT/yr to 12 MMTPA with the commissioning of its Expansion Project.

Subsidiary refineries — Bongaigaon Refinery (2.95 MMTPA), Chennai Petroleum (9.5 MMTPA)

Globalisation Initiatives

IndianOil has set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates (UAE), and is
simultaneously scouting for new business opportunities in the energy markets of Asia and Africa.

Lanka IOC Plc (LIOC)

LIOC is ranked no. 1 among the island nation’s leading listed companies. It operates about 150 petrol &
diesel stations in Sri Lanka, and has a very efficient lube marketing network. Its major facilities include
an oil terminal at Trincomalee, Sri Lanka's largest petroleum storage facility and an 18,000 tonnes per
annum capacity lubricants blending plant and state-of-the-art fuels and lubricants testing laboratory at
Trincomalee. Presently, it holds a market share of about 43.5%. In a highly competitive bunker market,
catering to all types of bunker fuels and lubricants at all ports of Sri Lanka, viz., Colombo, Trincomalee
and Galle. It is the major supplier of lubricants and greases to the three arms of the Defence services of
Sri Lanka. I t holds 12.4% share of the market. It has also introduced nitrogen filling facilities for
automotive tyres, the first of its kind in Sri Lanka.

IndianOil (Mauritius) Ltd. (IOML)

IndianOil (Mauritius) Ltd. is the third largest petroleum company in Mauritius and holds an overall
market share of 24% and commands a 42% market share in aviation fuelling business, apart from its
bunkering business. It operates a modern petroleum bulk storage terminal at the Mer Rouge port,
besides 17 filling stations. In addition to the ongoing expansion of retail network, IOML has to its credit
the first ISO 9001-2008 product-testing laboratory in Mauritius.

IndianOil Middle-East FZE (IOME)

The Corporation's UAE subsidiary, IOC Middle East FZE, which oversees business expansion in the Middle
East, is mainly into blending and marketing of SERVO lubricants and marketing of petroleum products in

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the Middle East, Africa and CIS countries. It exports finished lubes to Oman, Yemen , Bahrain, UAE and
Nepal .

Vision of IOCL:

“ A Major, Diversified, Transnational, Integrated Energy Company, with National leadership and a Strong
Environment Conscience, playing a National Role in Oil Security & Public Distribution.”

Mission:

? To achieve international standards of excellence in all aspects of energy and diversified business with
focus on customer delight through value of products and services, and cost reduction.

? To maximize creation of wealth, value and satisfaction for the stakeholders.

? To attain leadership in developing, adopting and assimilating state of the art technology for
competitive advantage.

? To provide technology and services through sustained Research and Development.

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

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

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

Objectives:

? To serve the national interest in the oil and related sectors in accordance and consistent with
government policies.

? To ensure and maintain continuous and smooth supplies of petroleum product by way of crude
refining, transportation and marketing activities and to provide appropriate assistance to the
consumer to conserve and use petroleum product efficiency.

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Study on Brand Performance of Xtramile Diesel

? To earn a reasonable rate of interest on investment.

? To work towards the achievement of self- sufficiency in the field of oil refining and by setting up
adequate capacity and to build up expertise in laying of crude and petroleum product pipeline.

? To create a strong R&D base in the field of oil refining and stimulate the development of new products
formulations with a minimize/eliminate their import and to have next generation products.

? To maximize utilization of the existing facilities in order to improve efficiency and increase
productivity.

? To optimize utilization of its existing capacity and maximize distillate yield from refining of crude oil to
minimize foreign exchange outgo.

? To minimize fuel consumption in refineries and stock losses in marketing operation to effect energy
conservation.

? To further enhance distribution network for providing assured service to customer throughout the
country through expansion of reseller network as per marketing plan/ government approval.

? To avail of viable opportunities, both national and global, arising out of the liberalization policies being
pursued by the government.

Brands at IOCL

Brands at IOCL can be broadly classified into 3 categories, viz., energy, retail, and customer loyalty
programs.

ENERGY:

(i) Xtramile
(ii) Xtrapremium
(iii) Servo
(iv) Indane
(v) Indian Oil Aviation
(vi) LNG at doorstep

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Study on Brand Performance of Xtramile Diesel

RETAIL:

(i) Xtracare
(ii) Kisan Sewa Kendra
(iii) Swagat
(iv) Servo Express

CUSTOMER LOYALTY PROGRAM:

(i) Xtrarewards
(ii) Xtrapower

Value added diesel

The value added diesel of Indian Oil is named as XtraMile.

XTRAMILE

IndianOil’s XTRAMILE Super Diesel, the leader in the branded diesel segment, is blended with world-
class multi-functional fuel additives. Commercial vehicle owners choose XTRAMILE because they see a
clear value benefit in terms of superior mileage, lower maintenance costs and improved engine
protection. A growing section of customers who own diesel automobiles, both in the ‘lifestyle’ and
‘passenger’ category, prefer XTRAMILE as a fuel for its added and enhanced performance. XTRAMILE has
brought in a huge savings in the high mileage commercial vehicles segment. Transport fleets that
operate a large number of trucks crisscrossing the country are using XTRAMILE to benefit from higher
mileage and reduced maintenance costs.

3. Objective:

The objective of the study is to determine the brand performance of Xtramile. The term brand
performance comprises a number of parameters, like brand recall, advertisement recall, brand trial,
experience of customer, etc. The study tries to determine the performance of brand under these
parameters to finally determine the overall brand performance.

Sub-objectives of the study:

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Study on Brand Performance of Xtramile Diesel

 Brand recall: This includes determining whether the respondent recalls the brand
without any aid, with little aid, with high aid or does not recall at all
 Promotion effectiveness: This includes determining the advertisement recall, and
people’s perception towards the ads.
 Brand trial: This includes determining how many respondents have tried our brand,
competitor’s brands, or no brand at all (use normal fuel). It also includes their
experience with the brand and determining the negatives and positives they find in the
brand.
 Brand loyalty: This includes determining how many respondents would recommend our
brand and competitor’s brand to others.

4. Literature Review

A brand is a name or symbol used to identify the source of a product. When developing a new product,
branding is an important decision. The brand can add significant value when it is well recognized and has
positive associations in the mind of the consumer. This concept is referred to as brand equity1. Aaker
(1991) defined brand equity as “….a set of brand assets and liabilities linked to a brand, its name and
symbol, that add to and subtract from the value provided by a product or service to a firm and/or to that
firm’s customers” (p. 15). Good examples of companies with strong brand equity are corporations such
as Nike and Coca-Cola, whose corporate logos are recognized worldwide.

Brand Recall is the extent to which a brand name is recalled as a member of a brand, product or service
class, as distinct from brand recognition. Common market research usage is that pure brand recall
requires "unaided recall". For example a respondent may be asked to recall the names of any cars he
may know, or any whisky brands he may know. Some researchers divide recall into both "unaided" and
"aided" recall. "Aided recall" measures the extent to which a brand name is remembered when the
actual brand name is prompted. An example of such a question is "Do you know of the "Honda" brand?"
In terms of brand exposure, companies want to look for high levels of unaided recall in relation to their

1
http://www.netmba.com/marketing/brand/equity/

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Study on Brand Performance of Xtramile Diesel

competitors. The first recalled brand name (often called "top of mind") has a distinct competitive
advantage in brand space, as it has the first chance of evaluation for purchase.2

According to Bloemer and Kasper (1994), brand loyalty implies that consumers bind themselves to
products or services as a result of a deep-seated commitment. They assert that a repeat purchase
behavior "is the actual re-buying of a brand” whereas loyalty includes "antecedents” or a reason/fact
occurring before the behavior. According to Aaker (1992), brand loyalty implies both a consistent
pattern of purchase of a specific brand over time and a favorable attitude towards a brand. The
literature shows two alternative approaches to the construct of brand loyalty. The first one is concerned
with “a consistent purchase behavior of a specific brand over time”. According to Kuehn (1962), brand
loyalty can be viewed as, at least in part, a function of the frequency and regularity with which a brand
has been selected in the past.

5. Methodology

5A. Instruments of survey:

The survey, as stated above, was conducted on the aforementioned parameters. Additionally,
some demographic questions were also asked.

Questions 1 to 3 were related to the vehicle that the respondent is using. Q.1, “Do you own a
diesel vehicle?”, was the qualifying question. If the response was “yes”, only then the survey
was continued ahead.

Questions 4 to 6 determine the brand recall value. Question 4 simply asks the respondent to
name some of the branded diesel. If the respondent names Xtramile, then the recall is unaided.
Next question asks the respondent whether he/she knows the name of of IOCL’s branded diesel.
If Xtramile is responded, the recall is low aided. Next question asks the respondent, whether
he/she has heard of Xtramile. If the answer is “Yes”, the recall is high aided; If it’s no, the brand
is not recalled.

2 th
http://wwnessw.asiamarketresearch.com/glossary/brand-recall.htm, as visited on July 7 , 2010, at 1551 hrs.

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Questions 7 to 10 determine the promotion effectiveness. The questions ask the respondent
about whether they can recall the advertisement, how they like the advertisements, whether
they’ll be motivated to buy the brand after watching the ad, etc.

Questions 11 to 18 determine the experience of the customer with our brand, with other
brands, why they use/ don’t use branded fuels, etc. The questions are mostly qualitative and ask
the views of respondents.

Questions 19 to 21 ask the respondent about their fuel preferences, i.e., which fuels they prefer
and which company they prefer. This helps us gain an insight into what the respondents prefer,
on a usual basis.

Questions 22 and 23 determine the brand loyalty of customer for our brand and other brands
respectively. It’s a known fact that best kind of promotion is “word of mouth” promotion. So,
companies need to deliver such products, that people become brand loyal, recommend the
band to their friends, repurchase the brand themselves, etc.

Questions 25 to 28 ask respondents’ personal details and their demographic features. The
demographic questions (age and income) were asked to refine the results on the basis of these
constraints and get a better view of what perceptions different people own.

On the basis of results collected, different bar graphs and pie charts were created to draw
results with different constraints. For ex, a pie chart on: “Depending upon the kind of vehicle
usage and age, what is the recall value of the brand?”. This way, we not only get the recall value
of the brand, but we categorize the chart on the basis of usage and age. Thus, we get better,
more refined results.

5B. Conduction of survey

A total of 150 people were surveyed, in Delhi/ NCR region and respondents were divided into
two parts: Commercial users and Private users. 64 respondents were commercial users and 86
were private users. As mentioned above, The qualifying question was: “Do you own a diesel
vehicle?”.

Legend:

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Q1. What is the usage of your vehicle?

1-Commercial- The respondent drives a commercial vehicle, ex truck, tempo, taxi, etc.

2-Private- The respondent drives a personal vehicle, ex personal car

Q2. Have you heard about xtramile?

1-Yes- The respondent recalls the brand after high aid

2-No- The respondent does not recall the brand, even after the high aid

3-N/A- The person recalls the brand with either no aid or low aid

Q3. People will be motivated to buy the product after watching these ads?

1-Yes- The respondent thinks that the advertisement has a good effect on the audience

2-No- The respondent thinks that the advertisement can’t motivate the audience to buy the
product

3-N/A- The respondent does not recall any advertisement while answering

Q4. Have you tried Xtramile?

1-Yes- Yes, the respondent has used the product

2-No- No, the respondent has never used the product

Q5. Have you tried other branded diesels?

1-Yes- The respondent has used branded diesels of other brands too

2-No- The person has not used any other branded fuel

Q6. Which fuel you use usually?

1-Xtramile

2-IOC’s normal

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3-Other- any other specific company, whether branded or normal, but does not included IOC’s
fuels

4-Any normal- Including IOC’s

5-Any branded- Including IOC’s

Q7. Which is your usually visited company?

1-HP

2-BP

3-IOCL

4-Any- No preference

Q8. Would you recommend Xtramile to your friends?

1-Yes

2-No

Q9. Would you recommend other brands’ branded fuels to your friends?

1-Yes

2-No

3-N/A- If respondent says yes to Q8, we don’t ask this question.

Q10. Age

1-18-30

2-30-45

3-45-60

4-More than 60

Q11. Income

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1-Less than 20000

2-20000-50000

3-50001-100000

4-More than 100000

6. Results and data analysis

A total of 150 people were surveyed. The results are following:

Analysis according to:

(i) Pie Charts:

Q1. Based upon the kind of vehicle usage, what is the recall value of the brand?

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Study on Brand Performance of Xtramile Diesel

It was clearly visible that both the kind of respondents can easily recall the brand. There was, although, a
startling difference when it came to unaided recall. There were more private users who could recall the
brand without any aid, than commercial users.

Q2. Depending upon the kind of vehicle usage and age, what is the recall value of the brand?

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Study on Brand Performance of Xtramile Diesel

The results show that among the commercial respondents, irrespective of the age, there are always
more than 60% people who have heard of xtramile. A small proportion goes to people who were not
asked this question, as the could recall it with any aid.

Among the private users, there are very different results when age varies. On one hand, in the age group
up to 45, majority of people were not required to ask this question, whereas on the other, majority of
people above 45 and specially above 60 years of age could not recall the brand without any aid.

Q3. Depending on the age of the respondents, how many of them think, that people will be motivated
to buy our product after watching our ads?

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Study on Brand Performance of Xtramile Diesel

This is a major setback to the advertisement campaigns taken, as most of the people can not recall the
advertisement.

Q4. Depending upon the age of respondents, how many of them have tried Xtramile?

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Study on Brand Performance of Xtramile Diesel

This is a very basic question and as can be seen, most of the people have used Xtramile, irrespective of
the age groups.

Q5. Depending upon the age, how many of them have tried other branded diesels?

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Study on Brand Performance of Xtramile Diesel

Again, people, on majority basis, have used other branded fuels too.

Q6. Depending upon the income, how many of them have tried Xtramile?

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Study on Brand Performance of Xtramile Diesel

In the income group of less than 20000, majority of people have not tried other branded fuels. This
could be attributed to the fact that branded diesels are costlier.

Q7. Depending upon the income, how many of them have tried other brands?

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Study on Brand Performance of Xtramile Diesel

The result is similar for Xtramile too. Most of the people in income group of less than 20000, have not
tried Xtramile.

Q8. Depending upon the income, which is the usually preferred fuel?

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Study on Brand Performance of Xtramile Diesel

As is visible from the pie chart, respondents in the first three income groups, there are many people
who use any normal fuel. As the income increases, more number of people are purchasing branded
fuels.

Q9. Depending upon the age, which is the usually preferred fuel?

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Study on Brand Performance of Xtramile Diesel

As the age increases, more people choose branded diesel. In all the four subgroups, more than 30%
people prefer any normal fuel.

Q10. Depending upon the age, which is the usually preferred company?

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Study on Brand Performance of Xtramile Diesel

A clear result visible is that many people, irrespective of age group, prefer HP as their favorite brand.

Q11. Depending upon the income, which is the usually preferred company?

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Study on Brand Performance of Xtramile Diesel

Again, similar results are visible. People prefer either HP or don’t have any preferences at all.

(ii) Bar Graphs:

Q1. Depending on the age and vehicle usage of respondent, how many of the respondents have heard of
Xtramile?

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Study on Brand Performance of Xtramile Diesel

As is visible from the graph, not many commercial users were able to recall the brand without any aid.
On the other hand, private users could recall the brand without any aid or with little aid. Most of the
commercial users required high aid to recall the brand. Also, there were many commercial users who
could not recall the brand at all. O n the other hand, just 3 of the 84 private users could not recall the
brand at all.

Q2. Depending upon the usage of vehicle and age, what’s the relationship between brand recall and
people’s perception towards our advertisements?

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Study on Brand Performance of Xtramile Diesel

As is visible from the graph, not many respondents, irrespective of the usage, could recall the
advertisements.

Q3. Depending upon the type of vehicle usage and age of respondents, does brand recall affect the
brand trial?

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Study on Brand Performance of Xtramile Diesel

From the graph, it is visible that most of the commercial users, irrespective of age, haven’t used
Xtramile. Most of the private users have used Xtramile. But, many of those who required high aid to
recall the brand don’t use Xtramile.

Q4. Depending upon the usage of vehicle, what’s the relationship between brand trial of our brand and
the same of other brands?

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Study on Brand Performance of Xtramile Diesel

Easily visible, most of commercial users don’t use branded fuels. Although, among them, those who
have used Xtramile, there are many people who have used other brands also. Among the private users,
as expected, many users have used other branded diesels also.

Q5. Depending upon the type of vehicle usage and income of respondents, does brand recall affect the
brand trial?

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Study on Brand Performance of Xtramile Diesel

Here, those who have heard of Xtramile, among them, among the commercial users, many users haven’t
tried Xtramile. Among the same group, private users have tried Xtramile. Obviously, those who could
not recall the brand at all, have not used it. Those who could recall the brand without aid or with little
aid, most of them have tried Xtramile.

Q6. Depending upon the usage of vehicle and age, what’s the relationship b/w brand trial and brand
recommendation?

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As is visible, brand loyalty is high among the private users as compared to the commercial users,
irrespective of the age groups.

Q10. Depending upon the usage of vehicle and income, what’s the relationship b/w brand trial and
brand recommendation?

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Study on Brand Performance of Xtramile Diesel

Again, irrespective of the income groups, private users have brand loyalty as compared to commercial
users.

7. Conclusion and recommendations

7A. Conclusion

Looking at the various graphs and pie charts, there were some results that could be easily
derived, which are as follows:

 Commercial users don’t prefer using branded fuels.


 HPCL gives IOCL a big competition and people have much more preference towards HP.
 Income groups of less than 20000 are reluctant towards buying the branded fuels.

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Study on Brand Performance of Xtramile Diesel

 The brand loyalty is high among private users as compared to commercial users, which
can be attributed to the fact that commercial users don’t prefer branded fuels
themselves.
 The brand recall value is high among private users. Although it isn’t too bad for
commercial users but they required little aid or high aid in most of the cases. On the
other hand, most of the private users could recall the brand without any aid.
 People are not able to recall the advertisements, irrespective of the kinds of users they
are.

Among the open-ended questions, where there were some views asked from the respondents,
there were some common results found out. First of all, people generally complained about the
worthiness of what they got. People believe that they get normal fuel in the name of branded,
fuel provided is less than the value shown on meters and mixing is a big problem. Also, people
want that facilities be improved at the petrol pumps. Generally, people who have not used
Xtramile, or other branded diesels, prefer not to do so due to cost in most of the cases.

Recommendations:

Some of the recommendations:

 Brand window: The brand window during the advertisements should be increased, with more
specific message for commercial users. Most of the truck drivers, when asked about the
advertisement, could recall same ad of SERVO and not of XTRAMILE. The reason behind the
same was that the ad features a truck with message related to truck. The strategy can be based
upon the same lines.
 Brand trial: The brand trial, among the commercial users is low. The company can devise a sale
strategy. For ex, company could offer special gifts on the purchase of Xtramile for Rs. 1000 or
more. This would encourage people to buy our product, and if they like it, the loyalty would
increase.

The results show that on the three parameters:

Brand recall: Here, the brand is performing well. The promotion effectiveness is not good
although.

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Study on Brand Performance of Xtramile Diesel

Brand trial: Brand trial has been high among private users and low among commercial users.
Thus, brand is performing well on this parameter among private users but needs to be bettered
among commercial users.

Brand loyalty: Brand loyalty is high. People who have used the brand are loyal towards the
brand.

8. Limitations

Following were the limitations of the study:

 The sample size was just 150 and study was done in Delhi/ NCR region. Thus, the study can not
be generalized for the country for a population of 1.2 billion.
 The sample taken does not include many people from age group of above 60 (just 3 out of 150)
and income group of above Rs 100000 (just 8 out of 150).
 Finally, there were time constraints. Studying mass brands can be a very lengthy process and
results would have been better had there been more time.

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Study on Brand Performance of Xtramile Diesel

Appendix 1
SURVEY DESIGNED:

-------------------------------------------------- Vehicle Details ----------------------------------------------

1. Do you own a diesel vehicle?

Yes No
2. Which vehicle do you own? - _________________________
3. What is the usage of your vehicle?

Commercial Private

------------------------------------------------- Fuel Preferences --------------------------------------------

4. Can you recall names of some of the branded diesels?


________________________________________________________________
________________________________________________________________
5. What is the name of Indian Oil’s branded diesel? ________________________
6. Have you heard about Xtramile?

Yes No
7. Can you recall any advertisement of Xtramile?
________________________________________________________________
8. Kindly give us some brief description about the advertisement
________________________________________________________________
________________________________________________________________
9. What you liked about the advertisement?
________________________________________________________________
________________________________________________________________
10. Do you think people will be motivated to buy Xtramile after watching those ads?
1. Yes No
11. Have you tried Xtramile?

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Study on Brand Performance of Xtramile Diesel

1. Yes No
12. What was your experience with Xtramile?
________________________________________________________________
________________________________________________________________
13. Why have you not used Xtramile?
________________________________________________________________
________________________________________________________________
14. Have you tried other companies’ branded fuels?

1. Yes No
15. What was your experience with other brands?
________________________________________________________________
________________________________________________________________
16. Where would you rank Xtramile, as compared to other brands?
________________________________________________________________
________________________________________________________________
17. What could be the possible reasons for using branded fuels?
________________________________________________________________
________________________________________________________________
________________________________________________________________
18. What could be the possible reasons for not using branded fuels?
________________________________________________________________
________________________________________________________________
________________________________________________________________

19. Which fuel do you use usually?

Xtra Mile Indian Oil’s normal fuel


Others (please mention) _________________
20. Which is your usually visited retail outlet?
________________________________________________________________

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Study on Brand Performance of Xtramile Diesel

21. Which is your usually preferred company?


________________________________________________________________
22. Would you recommend Xtra mile to your friends?
1. Yes No
23. Would you recommend any branded diesel to your friends?
1. Yes No
24. Would you like to give recommendations so that we can deliver better products?
________________________________________________________________
________________________________________________________________
________________________________________________________________
----------------------------------------------- Personal Details ----------------------------------------------

25. Name (optional) - __________________________________


26. Contact number (optional) - __________________________
27. Age
18-30 30-45
45-60 More than 60
28. Monthly household income
Less than 20000 20000-50000
50001-100000 More than 100000

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Study on Brand Performance of Xtramile Diesel

Appendix 2

Abbreviations:

HPCL: Hindustan petroleum Corporation Limited

BPCL: Bharat Petroleum Corporation Limited

IOCL: Indian Oil Corporation Limited

MMTPA: Million Metric Tonnes Per Annum

Ad/ad: Advertisement

NCR: National Capital Region

Rs: Rupees

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Study on Brand Performance of Xtramile Diesel

Appendix 3

Bibliography:

 Aaker, D.A. (1991). Managing Brand Equity, Free Press, New York.
 Aaker, D. A. (1992); “Value of Brand Equity”, The Journal Business Strategy, Vol.13 No.4,
pp.27-37
 Bloemer, K. & Kasper, H.D.P. (1995). The complex relationship between consumer
satisfaction and brand loyalty. Journal of economic psychology, 16, 2, 7, 311-329
 Kuehn, A.A. (1962); “Consumer brand choice as a learning process”, Journal of
Advertising Research, Vol. 2, December, pp 10-17

Weblography:

http://iocl.com/

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