IndianOil Corporation Limited

Project report on:

Branding and Sales Promotion of XtraPower Loyalty Cards

PROJECT GUIDE

Mr. Ashok. Ramnani.

Submitted by:

Ms. Manasi. Sohani

Atharva Institute of Management Studies

 ACKNOWLEDGEMENT

At the outset I would like to thank Mr. Milind. Karandikar (DGM-SHIPPING)

and S. Mathias (Dy. Manager Training and Development) for providing me
with an opportunity to do a project at IndianOil Corporation Limited. Doing a
project at IndianOil has provided me with a lot of insights and learning.

I would like to express my gratitude towards my Project guide Mr. Ashok.

Ramnani (Manager- Retail Sales) who provided me all the support and
guidance in spite of his busy schedule. Without his valuable inputs this
project would not have been possible.

I would like to thank the entire staff at IOCL for being so supportive in the 2
months training period.

At last I would like to thank all the respondents who took time out of their
busy schedule and helped me in carrying out the project.

EXECUTIVE SUMMARY
The market condition today has changed from sellers market to buyers market. Customers have a
lot of options to buy from so he does not have to remain loyal to one particular brand. In order to
build loyalty among customers and making them part of the company loyalty programs is part
and parcel of a comprehensive customer relationship strategy.

Customer loyalty program offers and aims beyond customer satisfaction and loyalty. They aim to
go go beyond market profits. They aim to own the customer for life.

Loyalty in the Indian fuel retail sector was pioneered by BPCL in the yr 1999 which was then
followed by HPCL, IOCL, and RELIANCE. With the fuel prices being market driven and not
government control the edge that the government PSU’s had is soon going to be a thing of the
past.

Indian oil also offers two kinds of loyalty programmes xtrarewards and XtraPower loyalty
programmes. Xtrarewards is basically for the general customers while XtraPower is a loyalty
programme for the fleet owners as well as users.

In this project report I have focused on the Branding and Sales Promotion of the XtraPower fleet
card and its variant XtraPower easy fuel card. Here I focus on how the current branding of the
fleet card is being done by the company, study its effectiveness.

The easy fuel card is currently positioned as a card for the corporate to gift fuel to their stake
holders. In this project report I try to find out through market research if its introduction for the
general public as a smart card based prepaid card for fuel refills will work?

Lastly I give recommendations for branding and sales promotion of the fleet card and give the
segment of the target audience for the easy fuel card

INDEX

1. INTRODUCTION
• VISION 1
• MISSION 1
 • COMPANY PROFILE 2
• OBJECTIVES AND OBLIGATIONS 8
• IOCL PRODUCTS IN THE MARKET 10

1. LOYALTY PROGRAMS-
• AN INTRODUCTION 13
• LOYALTY IN PETROLEUM RETAIL 15

1. COMPETITORS ANALYSIS 17

2. SELF ANALYSIS 20
• XTRAREWARDS PROGRAMME 20
• XTRAPOWER FLEET CARD PROGRAMME 21
• XTRAPOWER EASY FUEL PROGRAM 26

1. OBJECTIVE OF THE STUDY 28

2. SALES PROMOTION AND BRANDING CURRENTLY FOLLOWED

29-32

3. MARKET RESEARCH FOR XTRAPOWER FLEET CARD

PROGRAMME
• QUESTIONNAIRE AND ANALYSIS 33-
40
• CONCLUSION 41

1. BRANDING CAPSULE FOR XTRAPOWER FLEET CARD

• TARGET CUSTOMERS 42
• MEDIUM 42-49
 • OTHER BRANDING TECHNIQUES 49-
53
• RECOMMENDATIONS 54-
55

1. BRANDING CAPSULE FOR XTRAPOWER EASY FUEL CARD

• TARGET CUSTOMER 56
• MEDIUM 56-62

1. COMPOSITION OF MEDIA STRATEGIES FOR DIFFERENT

CUSTOMERS
• FLEET OWNERS 63-64
• DRIVERS 65-66
• CORPORTES 67-
69
• CUSTOMERS 69-
70

1. MARKET RESEARCH FOR EASY FUEL CARD PROGRAMME

• QUESTIONNAIRE STATISTICS 71-
74
• ANALYSIS 75-80
• CONCLUSION 81
• RECOMMENDATIONS 83

1. QUESTIONNAIRE
• FOR FLEET CARD OWNERS 84
• FOR FUEL CARD OWNERS 86
Introduction to IOCL

VISION:

“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.
 Company profile
Strongly driven by the highest ever sales of petroleum products and boosted
by an increasing contribution from its Petrochemicals and Gas businesses,
the nation’s largest corporate and its highest ranked Fortune ‘Global 500’
company, Indian Oil Corporation Ltd. (IndianOil) reported an excellent
performance for the year 2009-10.

Sharing the highlights of the year, Mr. B. M. Bansal, Chairman, IndianOil,

said, “Despite the uncertain phase that the global economy went through,
the Indian economy showed a resilience that was truly remarkable. While the
overall petroleum products consumption in the country grew at 3.4% during
the year, IndianOil managed to notch up a growth of 4.6% registering a sales
volume of 63.7 million tones. The Corporation's refineries surpassed 100%
capacity utilization for the third consecutive year and clocked a throughput
of 50.7 million tones. IndianOil’s pipelines network registered the highest
ever operational throughput of 65 million tons of crude oil and petroleum
products”, he added.

During the year 2009-10, in which the company celebrated its Golden
Jubilee, IndianOil’s ranking improved from 116th to 105th in the prestigious
Fortune Global 500 listing. To realign the company’s strategy in the light of
emerging challenges in the future, a new Vision was adopted by the
Corporation with an aspiration to emerge as the Energy of India.

Financial Performance
IndianOil’s gross turnover (inclusive of excise duty) for the year 2009-10
touched Rs. 2,71,074 crore. The Profit After Tax was Rs 10,221 crore.

For the year 2009-10, the company’s Earnings Per Share (EPS) stands at Rs
42.10 as compared to Rs. 12.15 for 2008-09. The total net under-recovery on
account of price under–realisation on PDS Kerosene and domestic LPG in the
financial year 2009-10, is Rs. 3,159 crore. This is in comparison with a net
under-realisation of Rs.Nil crore in 2008-09.

For the year 2009-10, IndianOil has accounted for cash compensation of Rs
15,172 crore, out of which Rs. 7,100 crore has been received during the
year. In addition, the company has been granted discount of Rs 7,548 crore
received from upstream companies, as per the under recovery sharing
mechanism.

The Board of Directors has recommended a dividend of Rs 13 per share.

The Gross Refining Margin for April-March 2010 is USD 4.47 per barrel as
compared to USD 3.69 per barrel during the previous year.

Core Performance
Marketing
IndianOil continued to maintain its dominance in the market clocking the
highest ever level of sales during the year 2009-10. Sales volume and
market shares improved in almost all the segments in marketing. In the high-
volume, high-competition direct consumer business, IndianOil continued to
be the leader with a market share of 65% and long-standing business ties
with core sector customers were further strengthened.

During the year, BS-IV quality petrol and diesel was launched in 13 cities.
Retail sales in MS (petrol) and HSD (diesel) registered a robust growth of
14% and 9.2% respectively, with the expansion of IndianOil’s countrywide
network which touched 18,643 petrol/diesel stations (retail outlets). This
includes commissioning of about 414 special-format Kisan Seva Kendra (KSK)
outlets in rural markets during the year, taking their total to 2947. The Rajiv
Gandhi Grameen LPG Vitarak scheme, a new concept to extend the
availability of LPG to the rural market was launched during the year.
IndianOil enrolled 42 lakh new LPG customers during the year 2009-10,
raising the total number of Indane households to nearly 574 lakh. Non-
domestic packed LPG sales recorded a 29% growth while bulk LPG sales
registered a 45% growth over the previous year. To cater to the growing
demand of Autogas (LPG), 50 Auto LPG Dispensing Stations were
commissioned during the year taking their tally to 273. During the year,
IndianOil's market share in the finished lubes segment grew by 1.4%. SERVO
lube network was also expanded to over 200 auto stockists, 74 industrial
stockists, 9 marine stockists and 27 CFAs. IndianOil's world class SERVO
lubricants were formally launched in Qatar and exports touched nine TMTs
with a growth of 34%. IndianOil continued to be the leader in the aviation
business with a market share of 62.9% among PSUs and several new
businesses of international airlines were garnered during the year.

Refineries
For the year 2009-10, IndianOil's refineries achieved over 100% capacity
utilization for the third consecutive year. As a result of sustained efforts in
energy conservation, IndianOil refineries clocked the lowest overall specific
energy consumption of 62 MBTU/BBL/NRGF (MBN) during the year as against
64 in 2008-09. Also the best distillate yield of 75.3 wt% was achieved during
the period. Panipat, Haldia, Mathura refineries commenced production of BS-
IV compliant petrol and diesel. Stream-sharing between group refineries
ensured better optimisation, capacity utilisation, value addition and
enhanced gross refining margins. Some of the projects completed during the
year are MS quality upgradation projects at Panipat and Mathura.

To widen the crude oil basket, several new grades were procured from
Australia, Kazakhstan, Algeria, Nigeria and Libya. Continuing with the direct
chartering of ships for petroleum imports, crude imported for IndianOil
touched 39 million tonnes in 2009-10. Four projects were commissioned for
flare gas recovery systems at Digboi, Haldia, Barauni and Gujarat refineries.
Pipelines
During the year, IndianOil's network of underground highways breached the
10,550 kilometre mark and registered the highest ever operational
throughput of 65 million tonnes. The Mathura-Delhi pipeline became the first
to supply BS-IV complaint petrol to the National Capital Region. The 290 km,
1.45 MMTPA capacity Chennai-Bengaluru product pipeline was also
commissioned during the period.
Projects
IndianOil is currently implementing projects with an approved cost of over Rs
47,000 crore. The major ones in the refining segment are - a 15 MMTPA
refinery at Paradip; residue upgradation and MS/HSD quality improvement at
Gujarat Refinery; MSQ upgradation projects at Barauni, Guwahati, Digboi,
Bongaigaon; DHDT at Bongaigaon Refinery and Panipat Refinery Expansion.
Some of the major pipeline expansion projects include the Paradip-
Sambalpur-Raipur-Ranchi pipeline (1,108 km) and the Dadri-Panipat R-LNG
line. The project related to the integrated crude oil handling facilities at
Paradip is also under way.

Research & Development

IndianOil’s R&D continued to add value to different facets of the companies’
activities. During the year, 181 lube formulations were developed and 75%
were commercialized. Over 351 patents were filed and some of the new in-
house technologies and catalysts developed are the Olivorus-S bio-
remediation technology, DHDS catalyst, a special Indicat catalyst for BS-IV
compliant Diesel, IndVi catalyst for improved distillate yield and FCC
throughput. IndianOil won the prestigious Technology Day Award 2010 from
the Government of India, for the successful development and
commercialisation of multifunctional additives for Premium Grade Diesel and
Lubricity additives for Ultra low sulphur Diesel.

New Businesses
Besides consolidation in core areas, IndianOil took big strides in new
businesses during the year 2009-10.
Integration Initiatives
Exploration & Production (E&P)

During the year, IndianOil was awarded the Petroleum Exploration Licence
for one operatorship block by the Government of Gujarat under NELP VII
while two blocks have been provisionally awarded under NELP VIII.
IndianOil’s E&P portfolio comprises eight blocks in the NELP rounds and two
blocks in the CBM rounds with one farm-in block in the domestic sector. In
addition, the company had earlier bagged blocks in Yemen(Two),
Libya(Three), Iran(One) and Venezuela(One) with Farm-in blocks at
Gabon(One), Nigeria(One) and Timor-Leste(One).
Petrochemicals
During the year, IndianOil’s LAB (Linear Alkyl Benzene) sales touched 124
TMT and over 19 TMT was exported to six countries including Yemen,
Bangladesh, Korea, UAE and Australia. The PTA (Purified Terephthalic Acid)
business expanded to cater to all major domestic customers and clocked a
sales volume of 5,28,000 tonnes with a growth of over 30% from the
previous year. IndianOil's largest petrochemicals investment, at a cost of Rs
14,400 crore - the Naphtha Cracker and downstream polymer units at
Panipat - has been completed and the first batch of polymers dispatched.

Diversification Initiatives

Gas
IndianOil sold 1.89 million tonnes of R-LNG during 2009-10 and turnover
grew by 3.9% over the previous year. IndianOil’s JV – Green Gas has been
granted authorisation for City Gas Distribution(CGD) at Agra and has also
emerged the lowest bidder for CGD at Allahabad, Chandigarh and Ghaziabad.
A long term gas supply agreement has been signed with NTPC.

Bio-fuels
IndianOil has the largest captive plantation for bio-fuel production in India –
1012 hectares – which is underway in Chattisgarh and Madhya Pradesh,
generating rural employment of over 1.4 lakh mandays. IndianOil has also
entered into a partnership with Ruchi Soya Industries Ltd., a leading
manufacturer of high quality edible oils, to establish a model value chain for
the production of bio-diesel in the State of Uttar Pradesh.

Other Diversification Initiatives

IndianOiI has forayed into wind energy business with the commissioning of a
21 MW wind power project in the Kutch district of Gujarat and the cumulative
power generation from the 14 wind turbine generators has crossed 6 crore
units(KWHR) since commissioning in January 2009. IndianOil has also
launched Solar Lanterns in Orissa, Karnataka and North East states and an
all-India phased roll out is being planned. IndianOil has signed a MoU with
the Nuclear Power Corporation of India Ltd.(NPCIL), for investing in the
nuclear energy sector in the country.

Globalisation Initiatives - Overseas Subsidiaries

IndianOil (Mauritius) Ltd. (IOML)

In the year 2009-10, IOML's sales grew by 11% while the industry grew by
(-)1.9%. The company emerged as the third largest player in the Mauritian
petroleum industry. IOML also emerged as a leader in the aviation fuelling
business with a market share of 41.9% and recorded its highest ever
throughput of 262 TKL. The company’s terminal at Mer Rouge received the
ISO 9001-2008 accreditation, making it the only petroleum installation in the
country to obtain the prestigious recognition.
Lanka IOC Plc (LIOC)
LIOC has been ranked No. 1 among Sri Lanka's leading listed companies for
the third consecutive year. During the year, the overall market share of the
company went up from 9.4% to 12.4%. It also achieved a market share of
about 43.5% in the highly competitive bunker market, catering to all types of
bunker fuels and lubricants at all ports of Sri Lanka. Five new lube
distributors and 14 SERVOXpress outlets were commissioned during the
year, besides the introduction of Nitrogen filling facilities for automotive
tyres – the first of its kind in Sri Lanka.

IndianOil Middle-East FZE

IOME FZE is IndianOil's subsidiary in the Middle East and is mainly into
blending and marketing of SERVO lubricants and marketing of petroleum
products in the Middle East, Africa and CIS countries. During 2009-10, lubes
sales grew by 120% over the previous year and finished lubes were exported
to Qatar, Yemen, Bahrain, Oman, UAE and Nepal.

Objectives & Obligations

Objectives

• To serve the national interests in oil and related sectors in accordance

and consistent with Government policies.
 • To enhance the country's self-sufficiency in crude oil refining and build
expertise in laying of crude oil and petroleum product pipelines.

• To further enhance marketing infrastructure and reseller network for

providing assured service to customers throughout the country.

• To optimize utilization of refining capacity and maximize distillate yield

and gross refining margin.

• To maximize utilization of the existing facilities for improving efficiency

and increasing productivity.

• To minimize fuel consumption and hydrocarbon loss in refineries and

stock loss in marketing operations to effect energy conservation.

• To earn a reasonable rate of return on investment.

• To avail of all viable opportunities, both national and global, arising out
of the Government of India’s policy of liberalization and reforms.

• To achieve higher growth through mergers, acquisitions, integration

and diversification by harnessing new business opportunities in oil
exploration production, petrochemicals, natural gas and downstream
opportunities overseas.

• To inculcate strong ‘core values’ among the employees and

continuously update skill sets for full exploitation of the new business
opportunities.

• To develop operational synergies with subsidiaries and joint ventures

and continuously engage across the hydrocarbon value chain for the
benefit of society at large.

Financial Objectives

• To ensure adequate return on the capital employed and maintain a

reasonable annual dividend on equity capital.

• To ensure maximum economy in expenditure.

 • To manage and operate all facilities in an efficient manner so as to
generate adequate internal resources to meet revenue cost and
requirements for project investment, without budgetary support.

• To develop long-term corporate plans to provide for adequate growth

of the Corporation’s business.

• To reduce the cost of production of petroleum products by means of

systematic cost control measures and thereby sustain market
leadership through cost competitiveness.

• To complete all planned projects within the scheduled time and

approved cost.

Obligations

• Towards customers and dealers: - To provide prompt, courteous

and efficient service and quality products at competitive prices.

• Towards suppliers: - To ensure prompt dealings with integrity,

impartiality and courtesy and help promote ancillary industries.

• Towards employees: - To develop their capabilities and facilitate

their advancement through appropriate training and career planning.
To have fair dealings with recognised representatives of employees in
pursuance of healthy industrial relations practices and sound personnel
policies.

• Towards community: - To develop techno-economically viable and

environment-friendly products. To maintain the highest standards in
respect of safety, environment protection and occupational health at
all production units.

• Towards Defense Services: - To maintain adequate supplies to

Defense and other Para-military services during normal as well as
emergency situations.
IOCL PRODUCTS IN THE MARKET

SERVO

Indian Oil's SERVO range of lubricants reigns as the undisputed market

leader in the Indian lubricants market Known for its cutting-edge technology
and high-quality products, SERVO backed by Indian Oil's pioneering R&D,
extensive blending and distribution network, sustained brand enhancement
and new generation packaging is a one-stop shop for complete lubrication
solutions in the automotive, industrial and marine segments.
In the retailing segment, besides Indian Oil petrol stations, SERVO range of
lubricants is available through a network of SERVOXpress stations, bazaar
outlets and thousands of auto spare parts shops across the country. The
SERVO range includes over 500 lubricants and 1200 formulations
encompassing literally every lubricant requirement.

The SERVOXpress is a one-stop shop for quick, easy and convenient auto
care, providing customers with a refreshing experience. The SERVOXpress
stations have facilities for oil change, tyre/battery checkups, A/C service,
vacuum cleaning, perfuming, and upholstery cleaning, polishing and
lamination installation too.

INDANE LPG GAS

Indane is today one of the largest packed-LPG brands in the world. Indian
Oil pioneered the launch of LPG in India in the 1970s and transformed the
lives of millions of people with the introduction of the clean, efficient and
safe cooking fuel. LPG also led to a substantial improvement in the health of
women in rural areas by replacing smoky and unhealthy chullahs with
Indane. It is today a fuel synonymous with safety, reliability and
convenience. Indian Oil’s Indane LPG gas is used in 40 million homes as
cooking fuel and commands over48% market share in India.

INDIAN OIL AVIATION SERVICES

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 Leh (the
highest airport in the world at 10,682 ft) to the distant islands of Andaman &
Nicobar.

Indian Oil Aviation services have a market share of 65% with a network of
101 Aviation Fuel Stations (AFS) meets complete aviation fuel requirement of
the Defense services.

AUTO GAS

AutoGas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is

obtained from natural gas through fractionation and from crude oil through
refining. It is a mixture of petroleum gases like propane and butane. The
higher energy content in this fuel results in a 10% reduction of CO2 emission
as compared to MS.

XTRAPREMIUM PETROL

XTRAPREMIUM Petrol is India’s leading branded petrol boosted with new

generation multifunctional additives known as friction busters that prevents
combustion chamber deposits. XTRAPREMIUM is custom designed to deliver
higher mileage, more power, and better pick up, faster acceleration,
enhanced engine cleanliness and lower emissions.

XTRAMILE SUPER DIESEL

Indian Oil’s XTRAMILE Super Diesel, the leader in the branded diesel segment
is blended with world-class ‘Multi Functional Fuel Additives (MFA).
Commercial vehicle owners choose XTRAMILE because they see a clear value
benefit in terms of superior mileage, lower maintenance costs and improved
engine protection. A growing section of customers who own diesel
automobiles, both in the ‘lifestyle’ and ‘passenger’ category, prefer
XTRAMILE as a fuel for its added and enhanced performance. XTRAMILE has
brought in a huge savings in the high mileage commercial vehicle segment.
Transport fleets that operate a large number of trucks crisscrossing the
country are using XTRAMILE to not only obtain a higher mileage but also for
low maintenance costs.

SUPERIOR KEROSENE OIL

Kerosene is distillate fractions of crude oil in the boiling range of 150-

250°C. They are treated mainly for reducing aromatic content to increase
their smoke point (height of a smokeless flame) and hydro fining to
reduce sulphur content and to improve odour, colour & burning qualities
(char value).

Kerosene is used as a domestic fuel for heating / lighting and also for
manufacture of insecticides/herbicides/fungicides to control pest, weeds
and fungi. Since kerosene is less volatile than gasoline, increase in its
evaporation rate in domestic burners is achieved by increasing surface
area of the oil to be burned and by increasing its temperature. The two
types of burners which achieve this fall into two categories namely
vaporisers & atomisers.

“SWAGAT” HIGHWAYS FLAGSHIP RETAIL OITLETS

There are number of such retail outlets planned across the country out of
which many have been commissioned with a complement if fuel and non-
fuel. Non-fueling offering through ‘Best-in-class’ alliance on exclusive
basis wherever possible communication, food, rest, healthcare, parking
vehicle care etc.

XTRA CARE

The launch of Xtra Care was the culmination of a series of plans in retail
design, product and service up gradation, capability training, automation,
loyalty programme, retail site management techniques all benchmark to
global standards. While the industry standard is to take samples on a
quarterly basis, Indian Oil has moved several steps ahead by introducing
fortnightly random sampling with specific importance given to Research
Octane Number (RON) sampling which is truly the definitive test for
quality and quantity. So far over 400 Xtra care retail outlets have been
set up, around 1500 Xtra Care retail outlets will be ready soon.

LOYALTY PROGRAMS- AN INTRODUCTION

Loyalty programs are structured marketing efforts that reward, and therefore
encourage, loyal buying behavior — behavior which is potentially of benefit
to the firm.

Earning customer 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 a 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 been met — 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 flyer miles. In these
loyalty programs, one accrues points by flying on the airline and then
'cashes in' the points in exchange for tickets, upgrades, or even third-party
benefits. In the past decade, many non-airline businesses have combined
their own loyalty programs with those of the airlines, offering frequent flyer
miles in exchange for everything from telephone usage to purchasing
gasoline.

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, such as
access to faster-moving lines or special parking spaces.

Ultimately, the success of loyalty programs depends on how well the

business uses the data it gathers to further refine its policies and loyalty
programs. Many businesses find little profit in the use of loyalty programs,
while others, such as eBay, attribute much of their financial success to a
well-executed use of such programs.
Loyalty programs an integral part

The immense competition will make loyalty programs an integral program of

the day-to-day functioning of petro-retailing. Of course, right now many such
loyalty programs are being run by the petro-retailers like Smart Fleet (BPCL),
XtraPower (IOCL), Drivetrack (HPCL), Transconnect (Reliance), Petrocard
(BPCL) and others. However, these programs are mainly focused at the bulk
consumers and the small consumers are left unnoticed more or less. But in
future, there won’t be such differentiation and loyalty programs will be there
for every segment of consumers.

Loyalty In Petroleum Retail

For the petroleum retail sector in India, recent years have seen fundamental
changes in the way business is being done. The sector has moved away from
being government-controlled, a move that has brought new levels of
competitive threat and customer focus. With the going having gotten tough,
the smarter players have caught on early that the best way to do business is
to lock customers into a habit they can’t break. Loyalty programs are ‘in’
with each of the big players wooing wallet shares with loyalty card programs.
This report gives the growth of loyalty programs in the petroleum retail
sector in India, focusing on the evolution of the pioneering ‘PetroBonus’
program, the first and largest in India, which virtually created the market for
loyalty programs in the sector.

In the Indian Petroleum Sector Three companies – Indian Oil Corp. Ltd.
(IOCL), Bharat Petroleum Corp. Ltd. (BPCL), and Hindustan Petroleum Corp.
Ltd. (HPCL) dominate the petroleum retail sector in India with about 93%
market share between them. These players cater to a market of about 40
million vehicles (approx. 77% two wheelers, 13% cars in 2002) on Indian
roads with a retail network of over 15,000 outlets across the country. With
the deregulation of the sector in 1999, and the ongoing process of
divestment of the government stake in the business, the sector has seen
itself exposed to new market forces. The competitive threat is bigger. With
private players entering the fray, the pricing is increasingly market driven
and consumers are demanding more. Significantly, the existing players have
recognized the need for them to quickly evolve to be marketing driven,
service driven and, ultimately, relationship driven and have condensed
decades of evolution into a three- to four-year time frame. It has been a leap
from the Neolithic to Neo and many of the intervening stages have been
neatly bypassed.

Until 1999, the Indian oil and gas sector was state controlled under an
Administered Pricing Mechanism (APM) that controlled the production
pattern, capital expenditure, and pricing of petroleum products. All the
companies were state owned and private investment in the sector was not
allowed. Reacting to the growing need for boosting domestic production
levels, the Indian government has been steadily deregulating the sector.

The Changing Retail Experience- Prelude to Loyalty the changing retail

experience and the rise of loyalty programs have seen parallel development
in the Indian context. The retail experience, until recently, was bare bones,
with the gas station being nothing more than a place to tank up, and cash
the preferred payment mode. In recent times, however, the outlets have
seen a complete facelift, with any multi-fuel dispensers, better trained
attendants, and service elements. The product offering has widened to
include blended fuels, branded fuels, high-octane fuels, lubes, groceries and
more. The outlet itself is expanding to include grocery stores, cafes, bank
ATMs, internet kiosks, etc., giving the customer more reasons to spend time
and money at a location that offers more than just fuel. Credit cards, debit
cards and loyalty cards are also widely accepted. The outcome of these
changes is that the urban consumer is getting used to a radically different
experience at the petrol pump that is translating into higher service
expectation. Consumers are being given reasons to build preference among
the three companies (IOCL, BPCL and HPCL) and their brands. As consumers
have begun to express their preferences, the companies have entered an
inevitable battle for business through relationship building initiatives,
including loyalty programs.

COMPETITORS ANALYSIS

The pioneer was BPCL with its ‘smartcard’-based PetroBonus program,

launched in September 1999. When developing the program, BPCL had no
significant local examples to go by, except the frequent flyer programs being
run by the airlines.
The PetroBonus Story the very fact that the fundamental proposition
and working of PetroBonus has required so little change is a testament to the
meticulous planning that went into it in the initial stages of program
development. BPCL didn’t just get a head start in launching the program
early, but also built up every aspect of loyalty program management that
continues to give it immense returns. Capture and use of data is the
fundamental driver of loyalty success, a principle that BPCL caught on to
early. Data capture of the profile and transactions of each member
converted an anonymous customer base to an increasingly ‘known’ member
base, a shift that opened up many doors over time.
A year into the program, BPCL initiated a monthly analytics publication
for monitoring program health and identifying specific campaign
opportunities that could be mined from the member database. BPCL started
segmenting members by activity level and created targeted communication
and offers to activate members, driving up revenues within the existing
member base.
Data analytics also identified opportunities to change fueling patterns,
leading to campaigns that increased fueling on Sundays and during non-peak
hours of the day. A profiling exercise and a customer satisfaction survey led
to invaluable insights on the members and the wrinkles in the service that
could be ironed out. In addition to the analytics driven campaigns was the
luxury of the volume of member database. BPCL could launch a new product,
a new fuel blend, a new facility at its outlets, a new partnership, and reach
out to its best customers in a targeted, intelligent fashion.

This was relationship marketing paying off in the best way possible, as
the economics of going direct started to become attractive in addition to the
immense marketing benefits. For instance, when BPCL launched its high
performance fuel ‘Speed’ in mid 2002, it could immediately make an offer to
specific segments of PetroBonus members who fit the Speed target audience
profile, offering them bonus PetroMiles for fueling up with Speed. The luxury
of having a database of members, an open channel to communicate with
them and an accepted and widely used program currency mechanism to
reward them proved an enormous advantage to BPCL in marketing many
products and services.

On the branding front, the strength was in three well-defined brands

that were built: the program brand “PetroBonus,” the card brand “PetroCard”
and the program currency “PetroMiles.” This gave BPCL the flexibility to
extend the program, the card and the currency to strategic and tactical
partnerships or promotional activities as required. PetroBonus also offered a
co branded card for Amway members. BPCL also focused on using new
interactive media to improve the PetroBonus experience while improving
efficiencies. BPCL created a dedicated website for PetroBonus and used the
web and e-mail for surveys, online campaigns, points statements, rewards
catalogues, etc., in a two-pronged strategy of e-mail database building and
widening of the online and e-mail offering. With the mobile boom, SMS-based
services are on the rise.

The situation today is that PetroBonus has reached a critical mass that
gives it immense power, with the road ahead seeing technology and
analytics playing an ever-greater role in increasing operational efficiencies
and deepening the relationship with the customers through interactivity and
flexibility. There are problems to be sorted out for sure and the competition
nipping BPCLs feet could well have an advantage in being leaner. This
competition, as it turns out, is not just from similar loyalty programs by other
petroleum companies, but equally from the emergence of co-branded
programs with banks, which are shaping this quickly-maturing market.

The Second Wave

 For the other two players, IOCL and HPCL, customer loyalty programs
did not happen until mid 2002. Both of these companies focused their initial
marketing efforts on building their retail outlet brand and services before
launching arrange of card based programs. Also, both companies took the
co-branded route, tying up with banks that were also looking to launch their
petrol loyalty programs. The entry of the banks into this space brought about
the next wave of loyalty programs, with a fresh set of offers for the
customers. The credit and debit card based programs offered the customers
all the facilities of a regular credit/ debit card in addition to a host of specific
services including transaction fee waivers, surcharge waivers, insurance
coverage, discounts, increased point earnings opportunities, fuel for points,
etc. These programs leveraged the wide acceptance of the credit/debit card
as a payment device and an established reader network.

The Fleet Card phenomenon:

A classic case demonstrating the power of data analytics to drive
strategic initiatives is the launch of India’s first fleet card program,
SmartFleet. Analysis of PetroBonus data showed a segment of members with
abnormally high usage. It turned out that this segment was that of fleet
owners who were giving PetroBonus cards to their truck drivers for fuelling
up. After understanding their distinct needs of fleet owners, BPCL designed
and launched the SmartFleet program in early 2001 a smartcard format
found relatively few takers, with most new launches preferring to ride on the
existing card reader network of the magnetic strip-based credit/debit cards.
Two other developments in basic program formats were the introduction of
Fleet card and Network loyalty programs. On the Fleet card front, BPCL was
again the pioneer, launching SmartFleet in February 2001, followed by IOCLs
PowerPlus in January 2002. These programs gave fleet owners the option of
giving drivers pre-loaded cards which allowed better MIS, transaction
tracking, and points earnings. Network loyalty also came into the picture
when IOC launched a co-branded card with MyShoppe, a network loyalty
 program with a number of retail chain affiliates. The second wave gave the
arena vitality as companies launched programs with fundamentally different
formats, giving the consumer an array of options to choose from.

SELF ANALYSIS

Loyalty Programs at Indian oil

IndianOil’s loyalty programmes are designed exclusively to benefit the large

number of its customers who have been patronizing the brand for over five
decades.
• XTRAPOWER
• XTRA REWARDS

XTRAPOWER FLEET CARD

The XTRAPOWER Fleet Card program is a complete smart card-based fleet

management solution for fleet operators and Corporate for cashless
purchase of fuel & lubes from designated retail outlets of Indian Oil through
flexible pre-paid and credit facilities

The fleet card program also offers an exciting rewards program and unique
benefits like personal accident insurance cover and vehicle tracking facilities.
In just under two years of its launch, Indian Oil’s XTRAPOWER Fleet Card has
emerged as the largest fleet card in the country with the widest retail outlet
coverage.

XTRAREWARDS LOYALTY PROGRAM

Indian Oil XTRAREWARDS is India's first on-line rewards program that seeks
to inculcate the habit of redeeming points. The loyalty program rewards
customers paying by cash, credit and debit cards.

Each transaction is confirmed on-line through a charge slip and customers

can earn points on fuel/lube purchases at participating Indian Oil Retail
Outlets. Additional points can also be earned outside the Indian Oil network,
covering prominent FMCG, Food, Automobile, Travel, Entertainment, Apparel
and Hospitality sectors

XTRAPOWER FLEET CARD PROGRAMME

The XTRAPOWER Fleet Card programme is a complete smart card-
based fleet management solution for fleet operators and corporate for
cashless purchase of fuel & lubricants from designated retail outlets (petrol
pumps) of IndianOil through flexible pre-paid and credit facilities.

The fleet card also offers an exciting rewards programme and unique
benefits like personal accident insurance cover and vehicle tracking facilities.
In just under two years of its launch, it has emerged as the largest fleet card
in the country with the widest retail outlet coverage. Any business entity
owning or operating a vehicle fleet can become a member of the
XTRAPOWER fleet card programme at a nominal annual charge.

Each fleet owner is issued a Fleet Control Card and vehicle-specific Fleet
Cards for every vehicle enrolled under the programme. For enhanced
security, the fleet card transactions are authorized through a unique
Personal Identification Number (PIN).

Moreover, the card can help track each vehicle's movement across remote
corners of the country, leading to an improvement in vehicle utilization and
route compliance. XTRAPOWER is also backed by IndianOil's vast
infrastructure network and web-based support services.
Program Details

Fleet Card Each one of your Fleet Cards is a smart card, which can be used
by the card holder (driver of the vehicle) to make purchases of fuel/
lubricants at designated retail outlets of IndianOil.

Activation Before using the feet card (s) to make any purchases, you need to
activate your card(s). To activate your card, please visit the nearest
designated retail outlet of IndianOil and present your card for changing the
default PIN (0000) to a new PIN (any 4-digit number).

Fleet Control Card This is a card to which all your fleet cards are linked. This
card is not meant to be inserted in the smart card terminal for any
transaction. However, the Fleet Control Card Number can be used for the
following transactions:

CCMS Recharge Use your Fleet Control Card Number & Control PIN to
recharge your CCMS Account by making lump sum cash deposit at any
designated retail outlet. Thereafter money available in the CCMS A/c can be
used for reloading multiple fleet cards through CCMS Reload, at any of the
designated retail entries Accumulate XTRA Points: All transactions on your
vehicle-specific fleet cards are linked to the Fleet Control Card; therefore, all
XTRA Points earned by each of your fleet cards accumulate against this card.

XTRA Points' Redemption at a Retail Outlet Use your Control Card Number
& Control PIN on a smart card terminal at a designated Retail Outlet of
IndianOil for instant redemption of XTRA Points for fuel and lubes. You can
also submit your request for redemption of any other reward item from the
rewards Catalogue on the smart card terminal.

N.B. Redemption requests can also be submitted by filling a redemption form

or there an online request on XTAPOWER website.

Web User ID and Password The web User ID and Password will allow you to
access web-based services of XTRAPOWER such as viewing transactions on
your fleet cards, vehicle tracking, CCMS & card wise balance, XTRA Points'
balance, redemption of XTRA Points etc.

Note In case of credit variant of XTRAPOWER card, the prepaid pouch of the
card must have the required amount so as to avail of online tracking facility.
XTRAPOWER FLEET CARD PROGRAM

XTRAPOWER is one-of-a-kind fleet card program of IndianOil, which gives you

XTRA convenience, XTRA security and XTRA opportunity to earn truckloads
of rewards. It is a tailor-made program for Fleet Owners, Operators &
Corporates as well.

With XTRAPOWER Fleet Card you now have an easy, convenient and
rewarding way to drive, monitor and control your entire fleet. It facilitates
cashless fuel purchase and gives you systematic record of transactions
through the card. It is a powerful and unique fleet management tool for an
efficient and cost-conscious fleet owner like you.

Based on the smart card technology, the XTRAPOWER card gives:

• Payment convenience-both prepaid and credit options.

• Detailed fleet management reports.
• Facility to track each vehicle
• Personal Accident Insurance Cover and Medi-claim for fleet owner,
driver, co-driver and helper.
• Attractive rewards on purchase of fuel & lubricants through the Card
• Opportunity for earning additional rewards on purchase of J.K. Tyre and
Exide Battery

Once enrolled, the fleet owner is assigned a Fleet Control Card with
Control PIN and "XTRAPOWER" smart card for every vehicle enrolled under
the program. The XTRAPOWER smart card is personalized with details like
Card Number, Card Member's Name, Customer ID, Vehicle Number and
Expiry Date printed on the card.

Convenience
There are two variants of XTRAPOWER fleet card Prepaid & Credit. On
prepaid cards, pre-load as much money as you require. Within prescribed
limit the pre-loading facility has been made available at designated Retail
Outlets of Indian Oil. You can also deposit the desired amount in Central
Cash Management System (CCMS) through designated of HDFC bank.*

On the credit variant, cards are sent with credit limit as approved by the
credit partner Sundaram Finance Limited (Shortly to be made available
through other banks).

Freedom

The XTRAPOWER fleet cards are accepted at designated Retail Outlets of

IndianOil, where "Quality & Quantity" of fuels is assured. Every time you
need to tank up fuel, drive into one of these IndianOil Retail Outlets and use
the fleet card to purchase Auto fuel and lubricants.

Control

XTRAPOWER gives you full control on the amount you load on your prepaid
cards from wherever you are. For example, you can make payments in
Mumbai and reload your Fleet Cards in Chennai. In case of credit variant,
there is a pre-approved daily limit on the card.

For every transaction, charge slip would be printed (shown alongside) for
your records. This slip will indicate the date, time and location of the
transaction, card number, product purchased, value of purchase, card
balance after transaction and odometer reading of the vehicle (if provided by
the driver) etc. One copy of the transaction slip is given to the driver of the
vehicle. With the help of these slips you can keep track of your auto fuel/
lubes expenses and routes traveled by each of your fleet vehicles.
Keep Track

You can keep track of your fleet by logging on to our website

www.iocxtrapower.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 any period.

Xtra Points

You earn XTRA Points every time you use your XTRAPOWER fleet card(s) for
making purchases of auto fuels & lubricants, which on accumulation, can be
redeemed for fuel, lubricants and many more exciting gifts.

Xtra Protection

Now enjoy XTRA Protection through XTRAPOWER insurance cover for

Personal Accident, Medi-claim and lost card liability. The Insurance Cover is
provided to the Card member as well as to the vehicle crew.
The lost card liability insurance protects you from any liability as a result of
card loss or card theft.

Xtra Benefits

In addition to the key benefits, XTRAPOWER provides you with value-added

benefit of discounts on fleet-related products e.g. Tyres, spares, services etc.
through alliance partnerships developed with various manufacturers.
(Currently available on JK Tyres only)

Wherever You Go

XTRAPOWER program offers card-insert based basic truck tracking at no

extra cost.
It also offers "Online Tracking" facility (at nominal cost), which would vastly
improve fleet utilization.
XTRAPOWER card members will enjoy the power of IndianOil's nation-wide
network of retail sales points, supported by IndianOil's team of Sales Officers
and Fleet Managers.

Consolidated Reports

The members would receive consolidated monthly statement detailing

fuel/lubes purchases by each vehicle, XTRA Points earned etc. If the driver
has provided the odometer reading of the vehicle at the time of transaction,
the Card member can also ascertain the mileage performance of the vehicle.

XTRAPOWER EASY FUEL PROGRAM

The XTRAPOWER Easy Fuel gift card facilitates corporates in paperless gifting
of fuels and lubricants to their employees, customers and other
stakeholders, that too from select IndianOil retail outlets numbering over
6,000. As India's first smart card-based fuel voucher, it offers amazing
convenience and security among the gifting options available today, and
comes with the option of multiple recharging, or topping-up, and hence
ideally suited for reimbursement, repeat incentivisation, etc. Corporate
members can log into the dedicate website for allocating requisite funds and
for topping up. All transaction details can be viewed on the website, thereby
eliminating the need for maintaining separate MIS for reimbursements. A
24x7 dedicated toll-free helpline caters to customer queries.
A complete fuel gifting solution for employees, customers and other
stakeholders of Corporates XTRAPOWER Easy Fuel is a Smart Card based
program, which facilitates paperless gifting of fuel & lubricants from
designated retail outlets of IndianOil.
Fuel drives the economy. Without it the nation will come to a standstill.
What better gift to receive than one that meets your everyday requirement?
Placed in the 106th position in the Fortune's Global 500 Listing, IndianOil
brings to you its rich experience in the Oil and Gas Industry acquired over 50
years of its worldwide presence. IndianOil, the Energy of India is present at
every nook and corner of the country and you will find opportunity to use the
XtraPower Easy Fuel Card at select petrol pumps across India covering major
cities and highways which are 6000 in number at present.

XtraPower Easy Fuel comes with a user-defined 4-digit PIN for ensuring
security of your card. We also have a 24x7 dedicated toll-free helpline to
assist you. In short, the XTRAPOWER Easy Fuel Card Program offers you,
amazing convenience & security in terms of gifting options.

Programme Details
Features XtraPower Easy Fuel is India's first smart card based fuel voucher.
This enhances the security of the cards and in this respect is different from
the Gift Cards that the banks have introduced in the recent past which
operates on a magnetic stripe card.

The gift cards introduced by banks are for single recharge only meaning the
card becomes useless once the amount pre-loaded in the cards is used.
However, XtraPower Easy Fuel Card comes with an option of multiple
recharging or topping-up. Upon exhausting the amount once loaded you can
recharge the card which is ideally suited for reimbursement.

These smart cards come with the added security feature of a user defined 4-
digit PIN which needs to be punched in for undertaking transactions on the
card. This PIN can be changed by the card holder at any point through our
Point Of Sale Terminals. Forget worries of your voucher being misused due to
loss or misplacement.
We have a dedicated web-site, the access to which will be given to each card
member. The card member (Corporate) can logon to the website with his
dedicated login id and password and keep a control on the cards by
allocating requisite funds. Further all transaction details of the cards can also
be viewed through our website thereby eliminating the need for maintaining
separate MIS for reimbursements etc.
The power to decide on the exact amount of gift is with you. You (Corporate)
decide the amount of gift you want to give and then allocate the same to the
particular card through our website.
Indian Oil has a 24x7 dedicated toll free helpline (18004255599) which can
cater to the queries and help out in case of any difficulty.

OBJECTIVE OF THE STUDY

1. Study of current sales promotion and branding strategies followed by
IndianOil
2. Conduct a market research to find out the effectiveness of existing
strategies
3. To make a Branding Capsule for the XtraPower Fleet card and Easy fuel
card

4. To give recommendations to IOC to improve the implementation of

XtraPower Fleet and Easy fuel Card loyalty program.
 SALES PROMOTION AND BRANDING OF THE LOYALTY CARDS
CURRENTLY FOLLOWED

Sales promotion is different promotion, Sales promotion refers to those

marketing activities other than personal selling, advertisement and publicity,
which stimulate consumer purchasing and dealer effectiveness, such as
displays, shows and expositions, demonstrations and various non-recurrent
selling efforts not in the ordinary routine. Its purpose is to increase the desire
of salesman, distributors and dealers to sell a certain brand and to make
consumers more eager to buy that brand. This includes sales activities which
supplement both personal selling and advertising.

Sales promotion is only a part of promotion. Promotion includes sales

promotion, advertising, personal selling etc. Promotion helps to make all
other marketing activities more effective and efficient, but sales promotion
helps only to sales activity. Sales promotion may be done with the help of
tools like displays, exhibitions, free sample coupons, premium etc. Sales
promotion acts as a link between advertisement and personal selling.

Sales promotion campaigns taken up by the company for the XtraPower fleet
cards

➢ Joint venture with Mahaventures Fleet Management Solution which is

fast growing venture backed marketing & service providing company,
engaged in providing Fleet Management Solutions.
➢ The drivers are often given free gifts to enhance their retention with
the company
➢ Some offers are made available for certain period of time. For e.g. :
double the reward points gained on the purchase of a particular
amount of fuel
➢ Co-branding with Citibank credit card

Citibank shares 0.075% of all valid charges on co branded cards. 40% of

initial fees and 20% of renewal fees are also shared with IOCL when sourced
through IOCL dealers. – Gold and silver.

On IOC Citibank Credit cards:

• 2.5% fuel surcharge waiver

• Accelerated reward points for fuel purchases – 2.67 % for IOCL gold
and 1.5% for IOCL silver
• Citibank charges IOCL 0.35 % of the fuel spend at IOCL ROs as a
Branding and Marketing fees.
• Marketing expenses are shared between Citibank and IOC in the ratio
60-40 Cost of production of co branded cards, operation of the
program and cost of reward points are borne by Citibank.
 • Citibank pays IOCL a minimum sum of Rs 5 lakh irrespective of the
revenues earned through advertisements made on billing statements
sent to co branded card members. In case revenue is higher than that,
it is shared 50-50.
• Citibank pays 40% of initial fee and 20% of renewal fee of those
members sourced through IOC dealers.

IOCL Citibank credit card is second only to ICICI – HPCL credit card that
has an estimated card base of 25 lakhs as on 04/07/2008. However the
activation rates of HPCL – ICICI cards is estimated to be about 25-30% as
compared to 70% for the IOC – Citibank cards

➢ The Super Value Credit Card is the first Titanium card from Standard
Chartered Bank with 5% Cash back on Petrol transactions, 5% Cash
back on telephone bill payments and 1% Cash back on all other
purchases. The Super Value Titanium Credit Card gives 5% Cash back
on Fuel get great savings on fuel at ALL fuel pumps be it BPCL,HPCL,
IOCL, RELIANCE
Provision to improve branding and visibility:
1. Provision of XtraPower Lollipop Signage
2. Provision of XtraPower Hoardings at ROs
3. Provision of Wall Paintings along the Highways
4. Provision of Bus Panels
5. Provision of Outdoor Hoardings in transport centers / along highways
6. Transporters Meets
7. Road Shows

• It is suggested that, wall paintings being the cheap media, at least 2

Lakh sqft of wall paintings per DO
The banners and hoarding are made according to the region in which they
are to be displayed. The hoardings in the north shows a man wearing a
turban because the transports their associate with the person in the
hoarding. The hoarding in the south is shown wearing clothes that people
wear in south India so that the target audience in the south can relate
with the man in the poster.
As a part of road shows following is done by the company –
• On the previous day, a van clad with attractive brand-banners and with
pre-recorded slogans made rounds in the city covering all the fuel
outlets as well as trucking points and distributed handbills giving
important features of XtraPower programme and an invitation to free
health check up camp.
• Public in the market used to gather near the vehicle to collect
pamphlet and cards of car-in-a-tank offer. The largest trucking area
has displayed the programme details on their notice board in the
interest of truckers who park their vehicles
• The transporters were informed about various benefits /facilities
provided by Indian Oil at the retail outlets, more so for the transport
customers.
• They informed about various sales promotion schemes launched by
IOCL for the benefits of the customers.
• Further, during the program, power point presentations are made on
various benefits of XtraPower Fleet card scheme.

• The Film on XP card program is also shown.

• All the customers are presented with a Gift Hamper.
• Free Eye check up and free diabetes check up camp for the Truck
Drivers and transporters as a part of Fleet Card promotional activity in
association with the doctors.
 • Stalls by M/s Birla Tyre, M/s JK Tyre & SERVO SSA are put up for the
benefit of the transporters.
• In the evening a small music program is organized. In the end,
snacks /Tea/coffee are served to all people who participated in the
program.
• The news article appeared in the local News Paper.

Market Research For Xtrapower Fleet Card Programme

We conducted a market research for understanding the intricacies of the
fleet card market in a systematic way. The type of research is exploratory
and descriptive research.

Sample size:-
We took a sample of 30 transporters both owners and non owners to
understand the need of the customers as well as the target audience in
general.
Sample frame:-
The sampling frame consists of transporters of Mumbai division.
Sources of information:-
Facts in this research are obtained from two sources
• Primary data: - primary data was collected from the customers.
Regular interactions with our guide Mr. Ashok. Ramnani helped us
obtain the primary information
• Secondary data:-secondary data was obtained from magazines, reports
and books which we went through at the IOCL’s library. We also found
vital information on the Internet.
Questionnaire design:-
We designed close ended short questionnaire which was filled by the fleet
owners through one to one interactions. These questions helped us to know
the customer preferences.
Open ended questions were only for asking suggestions as far as the fleet
card is concerned.

The questions and the analysis of the same are as follows:

1. Do you owe a fleet card?

The sample space consist of fleet owners specifically those fleet owners who
have the XtraPower fleet card.

The sample size consists of 30 fleet owners in and around Mumbai.

Out of the 30 fleet owners in consideration 21 owned the fleet card while 9
were those who didn’t owe a fleet card.
 2. What is the usual mode of payment?

Of these 21 who owned the fleet card 18 of them used it as the usual mode
of payment. While the other 12 members of the sample preferred to pay by
cash or with credit card.

We asked these non users the reason why they choose cash or credit card
over fleet card. The reasons given were-

• Pumps not equipped with the machinery required to read the card.
• The drivers find it difficult to use the card.
• The point’s redemption is not very lucrative.
• The pump attendants in their area of work do not know how to use the
card.
• If internet is unavailable it is difficult to use the site for the
transactions.
 1. From where did you come to know about the fleet card programme?

Majority of them said that the awareness about the card is due to the IOCL
retail outlets. Some of them also said that they got to know about the card
and its benefits through a colleague.

2. Do you use the card frequently?

3. Did your driver have a problem using fleet card?

30 % fleet card owners said it is difficult to make the drivers use these cards
the technology makes them apprehensive.
 4. Rank according to order of preference the following media.

Here people were asked to rank the media source according to their order of
preference. The graph shows what % of people preferred which media is the
best source.

27% people think that TV is the best media to be targeted next to which 23
% people prefer radio

5. What improvement do you want in the fleet card loyalty programme?

The above graph indicates that the customers are expecting better services
and better offers from the company as far as the fleet card is concerned

6. Do you use the internet site for your loyalty card transactions?

Out of 30, 18 people use the easy fuel card website and 12 people do not
use it. When we asked them if they face any problem with the site they said
when the server is slow the site doesn’t not upload easily.

7. Do you redeem the points regularly?

Out of the 21 people who owe the card 16 people said that they redeem the
points regularly this is because they lie in the large customer bracket.

Those people who said they do not redeem the points regularly is because
their usage doesn’t allow them to gain enough points so that they can
redeem regularly.

8. What is the preferred reward in exchange of xtrapoints?

16 on 30 people prefer gifts as the point’s redemption. While 10 on 30 say

they prefer fuel as a better option. While 4 said that they like both fuel as
well as gifts.

What people suggested here is that they should have a option while
redeeming the points whether they want to take a gift home or do they
prefer extra fuel instead. They even suggested that lubricants should also be
included as a gifting option.

9. What is your key requirement from the loyalty programme?

Out of 30, 11 people are of the opinion that cashless transaction is the best
characteristic for the easy fuel card. Whereas 9 said that the vehicle tracing
property is the key characteristic.

Thus people prefer cashless transactions and vehicle tracing property over
fuel surcharge and points redemption, but these characteristics do come in
handy for the promotions of the card
Conclusion:-
From the above research we conclude that majority of the customers were
aware about the programme through the IOCL retail outlets. This shows that
other media such as the television, radio etc. are not targeted enough so
that.
Though the programme is so beneficial the drivers are still apprehensive
about using the technology. IOCL should consider explaining to these drivers
the benefits that accompany these cards such as the insurance policy
associated with it, the ease of cashless transactions, and security in use.
Most of the transporters said that they were happy with the fleet card as far
as the utility is concerned but at the same time they expect better services
to them as well as more attractive point’s redemption system especially for
the small transporters.
Some of the active card users complained that the fleet card transaction site
did not work well under weak internet services. It takes a lot of time to
upload. It can be sorted out by making a conduit tool bar available for use. A
conduit toolbar is a 1 time download and it gives easy access to the website.
Also we should consider constructing a website which is friendly over weaker
net connections.
 BRANDING CAPSULE FOR XTRAPOWER FLEET CARD

➢ Target customers

Fleet owners of light weight, medium weight, heavy weight commercial

vehicle

Corporate who use diesel for running the generators are given a variant of
the fleet cards known as corporate cards.

Schools offering pickup and drop services for the students could be targeted

➢ Medium

Print Media

 NEWSPAPER- all the promotional campaigns must be reported into the

print media so that it would help in creating and maintaining awareness.

Advantages and disadvantages

Advantages to newspaper advertising include the following

• Inexpensive to produce: A little research and know-how are often all

that's needed to create a targeted, successful ad
 • Easy to switch out. If you have a regular ad in your local paper and
want to change it to reflect a seasonal sale, a new coupon, or a new
product, you can usually do so rather easily.

• Different rates and sizes. Look at the various sizes of ads in the
newspapers you are considering running ads in. Newspapers normally
have several standard sizes. Some standard sizes include quarter-
page, half-page and full-page. Ads also run horizontally or vertically.
The bigger the ad, the more it will cost. Determine which size might
work for your message.

Disadvantages to newspaper advertising include the following:

• Limited readership. This is especially true nowadays when more and

more people are eschewing print publications for online electronic
versions.

• Poor printed image quality. This can be a problem if you sell high-end
clothing or your services as a portrait artist. In such instances, try to
drive readers to your Web site -- where you should have hi-resolution
images -- or play up discounted pricing.

• No control over ad placement. Oftentimes newspapers won't guarantee

premium placement on any given page. That can be a problem if your
competitor advertises in the same space.

 MAGZINES printing small self explanatory advertisements in the

business magazines would be very effective in attracting the corporate
branches who procure diesel from the retail outlets to fuel their
generators. The advertisements can be strategically placed in the
magazine issues which have articles related to petrol/diesel price hikes.

Where the goal of newspaper advertising is to communicate a specific

offer, the goal of magazine ads is usually more about enhancing and
sustaining brand image.

Advantages and disadvantages

Advantages to magazine advertising include the following:

• Access to a specific customer base. While anyone might subscribe to a

local newspaper, only car enthusiasts subscribe to Car and Driver.
Magazine ads allow you to better reach your target audience.

• More bang for your buck. Readers don't discard magazines as quickly
as they do newspapers, so your ad will be relevant for a longer period
of time.

• Help brand your business. Magazine printing methods allow for higher
resolution images and better color options, which allow you to build
your brand image in a positive way. Just the fact that you are
advertising in a magazine gives your company a certain professional
cachet.

Disadvantages to magazine advertising include the following:

• Ads can be expensive. Magazine advertising is usually pricier than

newspaper advertising.

• Tricky to schedule. Many magazines come out just once a month, or

even every three months, and to meet their deadlines it's often
necessary to have ads completed six months before they'll actually
appear.

 HOARDINGS of varied sizes explaining the gist of the card with the toll
free no for further enquiry details to be strategically put up at places near
the transports hubs, commercial vehicle dealer would help generate the
new consumer base. Whenever any new person about to start their own
fleet business comes to look for the vehicles at the dealer will see the
hoarding and will enquire about the card on the toll free no.
Advantages
• Exposure to the target customer
• Large space available gives creative freedom
• Reach a large segment of audience
• Geographically pinpointed. You know in advance exactly where your sign
will sit, so you can make your message directional

Disadvantages
• It can be quite expensive
• Message might not be properly understood by the target consumers
• brief message to permit reading from passing vehicles
• rely on the memory of consumer for locations and phone numbers, better
for brand awareness than direct call to action

 Television advertisement: The product advertisements on the

television can have subscripts running at the bottom to tell people to
enroll with the card programme. In addition the loyalty cards and the
reward system can be aired not on prime time but at times when out
target customer and the consumer is expected to watch television may be
during lunch hours or dinner times.

Advantages and disadvantages

Advantages

• TV reaches a much larger audience than local newspapers and radio

stations, and it does so during a short period of time.
• It reaches viewers when they're the most attentive.
• It allows you to convey your message with sight, sound, and motion,
which can give your business, product, or service instant credibility.
• It gives you an opportunity to be creative and attach a personality to your
business, which can be particularly effective for small businesses that rely
on repeat customers
Disadvantages

• TV Ad is very expensive to make

• Have to screen the ads repetitively so that it reaches the target
customers
• Changes cannot be made easily, changing will require more expenses

 Radio advertising: this is the most preferred medium if the target is the
drivers as while on the go they often listen to the radio. Stations can be
categorically selected to play the ad jingles. The ad needs to be repeated
again and again so that the listener takes notice of the ad.

Advantages

• Radio is a universal medium enjoyed by people at one time or another

during the day, at home, at work, and even in the car.

• Gives your business personality through the creation of campaigns

using sounds and voices
• Creative help is often available

• Rates can generally be negotiated

• During the past ten years, radio rates have seen less inflation than
those for other media

Disadvantages

• Because radio listeners are spread over many stations, you may have
to advertise simultaneously on several stations to reach your target
audience

• Listeners cannot go back to your ads to go over important points

• Ads are an interruption in the entertainment. Because of this, a radio

ad may require multiple exposure to break through the listener's
"tune-out" factor and ensure message retention
 • Radio is a background medium. Most listeners are doing something
else while listening, which means that your ad has to work hard to get
their attention

Indian Oil is a brand name in itself so it does not need to do large

amounts of advertising about its products. But for the loyalty programmes it
is important that the customers and the potential customers know about the
programmes. Direct marketing will help the company to make a 1 to 1
contact with the customers and to explain to them the benefits of the loyalty
programme. Resolve their doubts if any. And sign them in for the programme
directly.

Advantages

• Your advertising message is targeted to those most likely to buy your

product or service.

• Marketing message can be personalized, thus helping increase positive

response.

• Your message can be as long as is necessary to fully tell your story.

• Effectiveness of response to the campaign can be easily measured.

• You have total control over the presentation of your advertising

message.

• Your ad campaign is hidden from your competitors until it's too late for
them to react

• Active involvement - the act of opening the mail and reading it -- can
be elicited from the target market.

Disadvantages

• Some people do not like receiving offers in their mail, and throw them
immediately without even opening the mail.
 • Resources need to be allocated in the maintenance of lists, as the
success of this kind of promotional campaign depends on the quality of
your mailing list.

• Long lead times are required for creative printing and mailing

• Producing direct mail materials entail the expense of using various

professionals - copywriter, artists, photographers, printers, etc.

• Can be expensive, depending on your target market, quality of your list

and size of the campaign.

 Telemarketing: Telephone sales, or telemarketing, is an effective

system for introducing a company to a prospect and setting up
appointments.

Advantages

• Provides a venue where you can easily interact with the prospect,
answering any questions or concerns they may have about the fleet
card.

• It's easy to prospect and find the right person to talk to.

• It's cost-effective compared to direct sales.

• Results are highly measurable.

• You can get a lot of information across if your script is properly

structured.

• If outsourcing, set-up cost is minimal

• Increased efficiency since you can reach many more prospects by

phone than you can with in-person sales calls.

• Great tool to improve relationship and maintain contact with existing

customers, as well as to introduce new products to them

• Makes it easy to expand sales territory as the phone allows you to call
local, national and even global prospects.
Disadvantages

• An increasing number of people have become averse to

telemarketing.

• More people are using technology to screen out unwanted callers,

particularly telemarketers

• Government is implementing tougher measures to curb unscrupulous

telemarketers

• Lots of businesses use telemarketing.

• If hiring an outside firm to do telemarketing, there is lesser control in

the process given that the people doing the calls are not your
employees

• May need to hire a professional to prepare a well-crafted and effective

script

• It can be extremely expensive, particularly if the telemarketing is

outsourced to an outside firm

• It is most appropriate for high-ticket retail items or professional

services.

 Specialty Advertising: This kind of advertising entails the use of

imprinted, useful, or decorative products called advertising specialties,
such as key chains, computer mouse, mugs, etc. These articles are
distributed for free; recipients need not purchase or make a contribution
to receive these items.

Advantages

• Flexibility of use

• High selectivity factor as these items can be distributed only to the

target market.

• If done well, target audience may decide to keep the items, hence
promoting long retention and constant exposure
 • Availability of wide range of inexpensive items that can be purchased
at a low price.

• They can create instant awareness.

• They can generate goodwill in receiver

• The items can be used to supplement other promotional efforts and

media (e.g. distributed during trade shows).

Disadvantages

• Targeting your market is difficult.

• This can be an inappropriate medium for some businesses.

• It is difficult to find items that are appropriate for certain businesses

• Longer lead time in developing the message and promotional product

• Possibility of saturation in some items and audiences

• Wrong choice of product or poor creative may cheapen the image of

advertiser

 OTHER BRANDING TECHNIQUES:

 Promotional campaigns can be planned talking into account all the
card users to reward them for being associated with the card. This could
encourage the potential customers to enroll for the programme.

The entire campaign was planned in five distinct phases:

1) Branding and communication
2) Back-end operations
3) Lucky draw participation
4) Selection process
5) Distribution of prizes

 Field officers- it is very difficult to train all the attendants at the RO’s so
instead the company can plant field officers at the outlets whose
 responsibility is to cater the existing customers and also to acquire new
customers.

 Retail outlets- Occasionally the retail outlets where maximum cards are
swiped could be given the best dealer award. This way dealer would also
be motivated in promoting the card to the customers.

These RO’s can be used as hubs to understand the needs of the customers
the owner as well as the driver and the cleaner and the promotional
campaigns that would be designed would be designed with their needs in
mind.

 Reward programme- The company should associate itself with some

leading brands like cinema halls and beverages brand so try and bring to
their clients the best of gifts when the redeem their points.

The points that the customer gets in the initial 3 months should double than
what they normally receive so that they can accumulate more points in short
period and redeem the same for availing the rewards. This will attract the
potential consumers.

 Road shows- Road shows are done to take all the campaigns directly to
the end users. Here the truckers are our end users. These shows are
conducted to basically make them aware of the fleet card loyalty
programme. Interesting games are conducted at these road shows.
Medical camps for the drivers and the cleaners are set up these include
eye checkups and diabetes checkups. Road shows can be very fruitful if
done in a proper planned manner and done regularly. This is because at
these road shows we will be in constant touch with the end customer and
with proper assessment we can know what all are the expectations of the
customers from the loyalty programmes.
 Membership club- All the card holders can be enrolled into a club
membership and regular convene can be conducted for all the members.
Interactive sessions can be conducted in this and regular feeds where the
customer can be asked about their experience about the card.

Large customers can be asked to write testimony for the card and the same
can be put on the internet site to add on to the credibility of the company.

 Internet

Website owners can significantly increase the loyalty of their customers and
site visitors by publishing a Conduit toolbar, and offering it as a free
download. Conduit toolbars allow businesses to remain in constant, positive
contact with their clientele, and to present continuously updated "perks" that
make them feel valued.

Website owners can show their customers how much they understand and
care about their needs, by using the toolbar to announce new products and
deals, or to offer original or syndicated digital content in the form of news
feeds, blogs, video channels and radio stations.

Sitting in the top of the browser window whenever subscribers are online,
Conduit toolbars help you build up a solid relationship – one that transforms
"satisfied" customers into the kind of customers you can count on, no matter
what new competition comes along.

• Write and publish online press releases.

• Facilitate and run contests and giveaways via your web site.
• Blog and interact with your visitors
 Short term marketing strategies include:
• Purchasing Advertising
• Participating in Forums
• Search Engine
 Long term marketing strategies are those that bring you a steady stream
of targeted traffic over time. These strategies will continue to produce
 results even years down the road. Long term marketing strategies
include:
• Opt-in Lists
• Blogging
• Social Networking Sites
• Social Bookmarking Sites
• Giving Away Freebies
• Article Marketing

By creating and implementing a balanced marketing strategy, using both

short-term and long-term strategies, you will drive a steady stream of
targeted traffic to your web site.
Ask for email addresses of those who visit your site. This way, you can
continually market product information to them. Always include a link
with the option to unsubscribe.

 Tie up: The Company should consider tie up with various other brands
for co-branding the card. Other companies offering similar loyalty
programmes have very lucrative rewards benefits for their customer.
 Survey your customers

If you want to know how to grow your base of loyal customers, ask your
current ones.

 Respond to complaints

Customer complaints aren't business failures; instead, they're business

opportunities. If you address and resolve conflicts promptly, the appreciative
customer is in many cases more likely to be loyal than a customer who never
had a complaint.

 Increase communications
Constant communication with customers is necessary in building loyal
relationships. Send regular mailings and e-mails announcing new
merchandise, special discounts and exclusive sales.

Make sure your customer loyalty programs are easily accessible to

customers

Set up displays showcasing your loyalty rewards programs near your

checkout counter, as well as throughout the store. Also have staff available
to help customers with the sign up process and to explain the benefits.

 Electronically track data from your customer base in customer

loyalty programs

Point-of-sale (POS) equipment can quickly and efficiently help you gather this
data. Making the most of customer loyalty programs means tracking
customer information so you can improve your business relationship and
continue to build customer loyalty it doesn't mean sharing this information
with other businesses or using the information in an unethical manner

Create a newsletter designed for your customers. With customer's names

in the database of the loyalty program, it's a simple matter to personalize
the newsletter to each customer. As you write the newsletter, be sure to
emphasize the importance of using your customer loyalty program.

 One-to-One Marketing

It is an approach that concentrates on providing services or products to one

customer at a time by identifying and then meeting their individual needs. It
then aims to repeat this many times with each customer, such that powerful
lifelong relationships are forged. As such it differentiates customers rather
than just products. .
  Contact center or call center

Often the customer's connection to your business is through your contact

center, also known as a call center. Your business can set up many ways to
communicate with your customers. Whether it's through telephone service,
email, newsletters, blogs or another emerging form of communication, the
contact center should strive to maintain a positive image of the company.

RECOMMENDATIONS

For the XtraPower fleet cards.

• The company should consider tie-ups with leading brands like Pepsi,
café coffee day to add more value to the customers points redeemed.
• In exchange for the points redeemed the fleet owners can also be
offered discount coupons for the theme parks or water parks like the
water kingdom, essel world.
• Hoardings of the fleet cards can be put up at places close to the retail
outlets instead of just the retail outlets. So that the consumer base can
be increased.
• The road shows have shown to be very effective in many cases but
their remains some inconsistency in its implementations. Such road
shows must be conducted every quarter at least so that it will help the
company to be in constant touch with the clients and construct the
offering accordingly.
• IOCL should target corporate giants like Pepsi, HLL, DHL etc who use
flee in their business. They can be potential target customers for the
 fleet card. Direct B2B marketing of these programmes should be done
to attract a customer base which will remain loyal to the company.
• Many new cellular service providers like MTS and UNINOR are coming
up in the market. These can be targeted for the corporate version of
the fleet card. Their cell sites also need diesel which they can procure
from a near retail outlet and fleet card programme can be beneficial o
these companies.
• The television and radio advertising should be considered if sales of
the card have to be increased. It’s still an untapped area where the
company has not yet invested much. The product advertisements on
the television can have subscripts running at the bottom to tell people
to enroll with the card programme. In addition the loyalty cards and
the reward system can be aired not on prime time but at times when
our target customer and the consumer is expected to watch television
may be during lunch hours or dinner times.

• The retail outlets can be utilized as hubs to trigger sales. There could
be field officers who target the new customers keep contact with the
old ones and sort out their problems in person this will in turn increase
the credibility of the programme.

• A record of the card swipes per retail outlet shall be kept and “Best
Dealer” award can be granted for the maximum no of transactions.
This will motivate the dealers to swipe the card.

• Distinguish between small and big operators and design a gifting

programme accordingly. The customers should have a option as to
what they want to redeem their points as gift of as fuel this option
should be available for the people.
• Keep a track of active and inactive users of the card. Try to address
the problems of inactive customers. This will help in building a brand
as not only the one which is market leader in this category of loyalty
programme but also one having maximum active customers. It will
increase the overall impact of the fleet card programme.

• To make sure that the machines at all the outlets are working in their
best condition a check by the company officials is in order. This will
help in maintaining the machines and avoid its break down due to
wear and tear.

BRANDING CAPSULE FOR XTRAPOWER EASY FUEL CARD

➢ Target customer
• Corporate bodies
• Business enterprise who wants to gift their stakeholders
• Suppliers
• Dealers
• General consumers

➢ Medium
The medium used depends on the target customers that we decide t cater.
The easy fuel card is a extension of the XtraPower fleet card and its caters to
the corporate bodies who are interested to give out free gifts to all their
stake holders like their customers, suppliers, retailer.

Print medium

 Newspaper: The daily national newspapers are also the most read
papers of the corporate hence a print advertisement in the same will be
fruitful. The printed ads should not be very flashy and should have a color
combination which would look classy.

Pros: You can look at a newspaper’s audience figures and demographics to

choose the right paper and the right feature or section for your product; in
the right section an ad can work very well. Production costs can be low but
you need the smarts to design an ad that grabs and holds attention.

Cons: You’re likely to be upstaged by bigger advertisers whose ad can be

placed right next to yours. Careful selection of the newspaper, section and
day are essential - even the same newspaper can have different readerships
on different days.

 Magazines: The corporate read a variety of business magazines. These

should be targeted for publicizing the fuel card. Regular exposure in these
magazines will attract the customers.

Pros: Magazines are highly targeted so it’s possible to purchase ad space in a

magazine that will be read by your target audience no matter how
specialized it may be.

Cons: Most magazines are issued monthly so it can involve a long lead in
time to getting into print and getting responses. Smaller advertisers don’t
get the best positioning in magazines and are usually crowded together in
the back. And be careful to verify the stated circulation figure of the
magazine.

 Hoardings: This will serve as a medium to attract the general

consumers for subscribing for the loyalty programmes.

They are of varied sizes explaining the gist of the card with the toll free no
for further enquiry

Pros
• Exposure to the target customer
• Large space available gives creative freedom
• Reach a large segment of audience
• Geographically pinpointed. You know in advance exactly where your sign
will sit, so you can make your message directional

Cons
• It can be quite expensive
• Message might not be properly understood by the target consumers
• Brief message to permit reading from passing vehicles
• Rely on the memory of consumer for locations and phone numbers, better
for brand awareness than direct call to action

 Radio: Radio is a universal medium enjoyed by people at one time or

another during the day, at home, at work, and even in the car.

Pros

• Radio advertising costs less than television advertising and may reach
a broader audience.
 • Radio advertisements are informal and tell a story that engages and
captivates the listener. Most do this by taking advantage of popular
radio personalities or by including a catchy and creative jingle.
• Radio advertisements are effective because they’re run several times
over the course of a day, week, etc. This means your market is likely to
hear the ad multiple times as opposed to a print ad which they may
only see one time.

Cons

• Because radio ads are so short, someone who is listening to your ad

while driving may not catch all of the pertinent contact information
and may not necessarily hear the ad again.
• The cost of radio advertising may be inexpensive compared to other
advertising methods, but if you want prime-time slots early and late in
the day the costs can be very high.
• Radio advertising is only effective if you know large parts of your
target audience regularly listen to the radio
 Public relations: Getting someone to pass along your message without
paying them. Examples: writing feature articles and columns for trade and
local newspapers, issuing press releases, and being quoted or
interviewed.

Pros: Can be very inexpensive, may even generate money. Can be done as
individual actions Has reusable value - articles can be used as reprints, mail
pieces, and handouts and in newsletters.

Cons: Unpredictable value. It can require time and commitment. No

guarantee that what you do will be used by publications.

Tips: Get to know the journalists who write about your area; come up with
helpful or controversial topics. Kick off your PR campaign with letters to the
editor or phone calls, perhaps resulting in brief quotes and interviews. Turn
press coverage into handouts and mail pieces.
 Yellow Pages: this is a medium that will be referred by the corporate
team who are incharge

Pros: Your advertisement lasts for an entire year and is placed in such a way
that your prospects can find you at the time they want to buy.

Cons: Most Yellow Pages advertising is expensive. Those who’ve been

advertising longer than you will be at the front of the section.

There are very few bargains in advertising spending. You get what you pay
for here. But to maximize the return on what you are paying for, keep two
questions in mind: is my ad going to capture interest; and have I chosen the
right channel for reaching my target audience

 Mobile marketing

Mobile phones are a great device for communication. It has become very
popular throughout the world. According to the business experts, mobiles are
much more a popular concept than computers. These devices offer many
facilities than letting people make calls. It's true that the concept of online
marketing is on rise. But it is also true that mobile marketing via text

Pros:

• High penetration of devices with twice as many cell phones as PCs.

• Mobile phones can receive input anywhere-anytime, enabling location-

specific and behavioral targeting for local businesses.

• A cell phone is a very personal device that people take with them
wherever they go, making it easy for marketers to develop a
relationship with customers through this medium.

• Personalization, immediacy, and interactivity of mobile ads encourage

response by consumers on the go.

• New tool for brands and advertisers to reach new customers and target
specific audiences.
 • Smartphones and iPhone to enhance mobile surfing, promoting mobile
marketing success.

• Messages sent to a mobile phone are more likely to be read than email
sent to a PC, which can get caught in the spam filter.

• Mobile marketing campaigns are highly targeted and are opt-in,

making them more effective than other forms of advertising.

• Mobile marketing can help build a customer database. Once customers

opt in to receive an ad, you can use the information for loyalty
marketing and customer retention.

Cons: General intolerance of advertising messages on a personal device.

• Current carrier-imposed “walled garden” approach prevents unfettered

mobile web access.

• Adaptation of content and messages to the mobile web results in poor

user experience.

• Advertisers are wary of consumer privacy issues. .

• Mobile marketing is fragmented and complex because of many

different handsets and carriers, different types of functionality and
different preloaded apps (i.e. Google Maps on iPhone).

• Establishment of reliable measurement and metrics for advertisers to

measure mobile ad effectiveness is needed.

 Direct marketing Targeting prospects personally. Examples: phone

calls, direct mail, and door-to-door canvassing.

Pros: Can reach prospects in most focused form. Often generates best leads
relative to cost and effort.

Cons: Can be expensive; requires a lot of time and effort. Not right for some
people or businesses.
Tips: Learn to qualify prospects quickly. Follow up promptly with mailings,
letters, samples, particularly in response to specific requests. Keep good
records; consider using a contact-management program.

 Events: Attending, participating in, or exhibiting. Examples: trade shows,

conferences, and seminars.

Pros: Very good for exposure. Often highly affordable

Cons: Very unpredictable results; can be time-consuming and draining, with

costly travel expenses.

Tips: Prepare. Pick a few shows in your field to attend regularly. Meet as
many people as possible to cultivate contacts.

 Collateral: Materials you print up and hand out. Examples: brochures,

pamphlets, newsletters, reprints, coupons, fliers, and business cards.

Pros: Can be inexpensive, especially if the pieces can serve many purposes
and you create them using desktop publishing.

Cons: Can be expensive putting together a desktop-publishing system. Can

take time, until you get the hang of it. Needs periodic updating; inventory
needs to be managed carefully.

Tips: Think carefully before over committing to an expensive item that will go
out of date. Look for pieces that can be their own mailer.

 Other various advertising specialties: Examples: bumper stickers,

calendars, coffee mugs, key rings, and other gewgaws; skywriting and
blimps; contests, surveys, and joint marketing efforts.

Pros: Can help attract attention; gives you an easy way to leave your name
and address with prospects.

Cons: May not be a good way to spend money; not appropriate for all
businesses. Can take up valuable storage room

Tips: Look for small, inexpensive, useful items - pens, coffee cups, and letter
openers. As with collateral, look for things that don't readily go out of date
 Talk: One other vehicle is word of mouth, from friends, contacts, and
satisfied customers. Word of mouth is inexpensive, yet it's often the most
powerful marketing tool

Pros: Inexpensive, often effective.

Cons: Can spread negative opinions even faster than positive ones.

Tips: Set a good example. Don't badmouth competition, but pass on opinions
of other (noncompeting) businesses you like. Consider some form of thanks
to customers who refer new ones - even if it's just a signed note.

Composition Of Media Strategies For Different Customers

FLEET OWNERS

For fleet owners the following media would be used

News papers are read by all the fleet owners so they would contribute
substantially in promoting the fleet card the ad should be printed properly
and should be easy to understand.

15 % of the ads should be targeted through news papers

Television: Ads given on the regional TV channels would be an effective

way of communicating information about the card to the fleet owners. Since
in a television advertisement there are audio-visuals used it would add to the
overall effect of advertising
Since TV is an expensive way of promoting about 20 % of the total
advertising budget should be used to create an ad

Radio: this is one of the mediums which if exploited properly will give the
best of results since it is less expensive than a television as well as
newspaper. And it’s the only medium which people use while they are
working. This feature can be an advantage or a disadvantage. Disadvantage
because we would not get full attention of the consumer. But advantage is
that we could be in constant touch with the consumer. The disadvantage of
the same could be reduced if we play the same set of ad more no of times.
This will allow greater exposure of the fleet card.

Radio should be given 20 % of the total budget.

Telemarketing: Telemarketing can be used a little because its move

apparent disadvantage is that people do not like to get disturbed during their
work hrs. and telemarketing does that often.

Only a part say 10 % should be utilized for telemarketing.

Internet: it will serve the purpose only if the fleet owners use the internet
frequently. It cannot be ignored completely so a 10% of total budget could
be used to create the conduit toolbar so that the company can maintain a
constant positive contact with the customers.

Specialty advertising: this could be a very effective method of reaching to

the customers. They create awareness and goodwill for the company.

5% of the budget should be spent on buying specialty items like key chains
or some memento which has the Indian Oil logo and the loyalty card picture
on it. They could be distributed during the road shows conducted.
Road shows: This is the only way by which the company could maintain
direct contact with the customer. Hence they become an important medium
for the company. To know what the customer expects are the expectations
fulfilled. Such questions could be best answered by road shows.

Since this would be a seasonal activity 20 % of the budget could be focused

for the same.

Media Composition for fleet % Of Budget

owners

News papers 15

Television 20

Radio 20

Telemarketing 10

Internet 10

Specialty advertising 5

Road shows 20

DRIVERS

For the drivers the following media strategies should be used.

Radio: most of the drivers listen to radio while they are on the go. Hence
maximum budgetary expenses should be allocated to this medium.

Almost 20-25% of the total budget should be focused n creating a good jingle
and airing it on all the variety of channels targeting the drivers.
Hoarding: The message displayed has to be easy to read while 1 is driving.
The message should be short as well as self explanatory. Hoardings can be
categorically placed near the eating hubs of these drivers so that they would
get enough time for the same.

This medium would reach the drivers very effectively hence about 15-20% of
the total budget should be given for the same.

Local promotional campaigns: Promotional campaigns should be carried

out at the local levels and specialty advertising should be employed for the
same by which people will be constantly reminded of the programmes.

20 % of the budget would be allocated to carry to the campaign and to gift

the participants with specialty items

Road shows: they will create goodwill for the company. Arranging eye
camps, and diabetes camps, or medical checkups for the driver and the
cleaner will surely create a lot of goodwill for the company.

All these activities will require a lot of budget to be allocated say about 25%
of the budget should go in all these activities.

Word of mouth: it could be a great way of promoting the loyalty

programmes. Instead of having specific field officers working for the
company the company could do sum networking with the help of the drivers
and the fleet owners. Whereby they get sum points or some other freebees
for the references they make. Only those who become the customers are
eligible for getting the freebees.

Media composition for drivers % of Budget

Radio 20-25
Hoardings 15-20
Promotional campaigns 20
Road shows 25
Word of mouth 10

For the XtraPower easy fuel card

CORPORATES

Media strategy for corporate

Newspaper and magazines: While targeting the corporate we are

targeting the HR personnel of the companies so newspaper advertising is of
utmost importance. Business magazines could be targeted for connecting
with the corporate HR personnel. Especially in the editions which have
articles relating to the petro sector. With the prices of the petro products
rising every given month the loyalty cards do give some relief to the
consumers.

About 15 % of the total budgetary expenses will be directed to newspaper

and magazines. This important thing to be kept in mind is it is very important
to keep giving the ads on a regular basis and the ad should be self
explanatory.

Television: Though an expensive way of advertising this is a very effective

medium. It can convey the message with ease as it uses both audio and
visuals.

15 % of the expenses should be focused on television advertisements.

Yellow pages: Advertisement in the yellow pages lasts for an entire year
and is placed in such a way that your prospects can find you at the time they
want to buy.

It could be again an expensive medium but it gives exposure like no other

medium hence should be targeted. Not only should the tradional yellow
pages the local variants of the same also be targeted 10 % of the budget
should be directed for all these purposes.

Mobile marketing: Mobile marketing campaigns are highly targeted and

are opt-in, making them more effective than other forms of advertising.
Messages sent to a mobile phone are more likely to be read than email sent
to a PC, which can get caught in the spam filter.

10% of the advertising budget should be focused on mobile marketing.

Direct marketing: It is the most focused form of advertising and if done

effectively has an impact on sales. The sales personnel should be having
thorough knowledge about the card and should be able to address the
queries of the potential consumers.

15% expenses should be directed towards direct marketing. These would

include the training and salaries of the concerned sales personnel.

Events: Attending, participating in, or exhibiting. Examples: trade shows,

conferences, and seminars. Also sponsoring events will give exposure to the
loyalty program like no other medium.20% of the expenses should be
focused on doing events and related activities

Collateral: Materials you print up and hand out. Examples: brochures,

pamphlets, newsletters, reprints, coupons, fliers, and business cards.

5% of the budgetary expenses should be allocated for building such

inventories and it is important to keep a track of the same.

Advertising specialties: Bumper stickers, calendars, coffee mugs, key

rings, and other gewgaws; skywriting and blimps; contests, surveys, and
joint marketing efforts will come under specialty advertising.

10 % of the budget would be directed for the same.

Media for corporate customers % of budget allotted

Newspaper & magazines 15%
Television 15%
Yellow pages 10%
Mobile marketing 10%
Direct marketing 15%
Events 20%
Collateral 5%
Specialty advertising 10%

Consumers

The consumer’s media strategies like the corporate media strategies would
include the news paper and magazines ads yellow pages and television. So
no separate allocation of budget would be required.

Collateral and specialty advertising is also the same as that of corporate

media strategies.

Apart from the corporate media strategies the consumer would require the
following:

Hoarding: This will act as a major factor for the consumers to know about
the card.

15 % of the budget should be targeted for the same.

Radio: Radio is a universal medium enjoyed by people at one time or

another during the day, at home, at work, and even in the car.

15% of the budget would be required for the same.

MARKET RESEARCH FOR EASY FUEL CARD PROGRAMME

We conducted a market research for determining the potential target

customer for the XtraPower easy fuel card which is currently being used as a
corporate gifting option only.
In this research we try to segment the general consumer base into a
potential consumer base which needs to be targeted in particular.

Sample size:-
We took a sample of 60 people from varying fields and varying age groups.
Sample frame:-
The sampling frame consists of Mumbai and suburbs.
Sources of information:-
Facts in this research are obtained from two sources
• Primary data: - primary data was collected from the customers.
Regular interactions with our guide Mr. Ashok. Ramnani helped us
obtain the primary information
• Secondary data:-secondary data was obtained from magazines, reports
and books which we went through at the IOCL’s library. We also found
vital information on the Internet.
Questionnaire design:-
We designed close ended short questionnaire which was filled by the
sampled audience through one to one interactions. These questions helped
us to know the customer preferences.
Open ended questions were only for asking suggestions as far as the fleet
card is concerned.

The questions and the analysis of the same are as follows:-

1. DO YOU KNOW ABOUT THE LOYALTY PROGRAMMES?

2. WHICH AGE GROUP DO YOU LIE IN?

3. WHICH VEHICLE DOES YOUR FAMILY OWE?

4. WHAT AMOUNT OF FUEL DO YOU BUY EVERY MONTH?

5. How loyal are you in your fuel buying behavior?

6. DO YOU OWE ANY PETROL OR DIESEL RELATED CREDIT CARD?

7. Would you buy a smart card based fuel card?

 8. What is the most beneficial property of easy fuel card?

ANALYSIS

 Awareness about loyalty programmes and buying decision

The blue color in the above graph indicates those subjects who were aware
about the loyalty programmes carried out by companies while the red color
indicated those who lack the awareness.

Out of 60 people who were sampled 44 people knew about the loyalty
programmes i.e. 73% people were aware about the loyalty programmes

In these 44 people 28 said they would be interested in buying the easy fuel
card which is a smart card based prepaid fuel card. And 10 said they may
buy the card. Total 38 out of 22 people seemed interested in buying the
smart card programme.
The graph indicates that subjects who were aware about loyalty programmes
are more interested in buying the XtraPower easy fuel card.

 AGE VS BUYING DECISION

In this graph the blue bars indicate a positive response for buying the
XtraPower fuel card, red indicates a negative response meaning people
who are not interested in buying the fuel card while green indicated
those respondents who said may be for buying the easy fuel card.
The above graph indicates that in the age group 18-25 out of the 10
people sampled none said NO, 6 of them said YES and 4 of them said
MAY BE. This indicates that this age group is the target audience for the
easy fuel card.
In the age group 30-40 we see a 2nd peak which indicates people in this
segment will also be interested to buy the easy fuel card.
The age group 40 and above majority of the people have said no to the
smart card based programme. The reason was attributed to a credit
based programme which they are very much accustomed to.

 DOES VEHICLE OWNED HAVE ANY INFLUENCE ON THE BUYING

DECISION?
Out of 24 respondents who owned only a 2 wheeler 16 i.e. almost 66%
people have responded positively for buying a easy fuel card. While the rest
8 have said may be for buying the easy fuel card. No two wheeler owner has
said NO to buy the card making them our target audience

So with the right amount of publicity we can target the 2-wheeler audience
to buy the smart card based programme

In the 4 wheeler category again 50% have responded positively to the easy
fuel card programme. While the rest 50% is divided into those who do not
want to go for the programme and the ones who said may be for such a
programme.

Those who said may be in all the 3 categories complained that the credit
card transactions take a lot of time as the pump attendants have to go to
their cabin for printing a bill. If the easy fuel card programme actually makes
billing at the retail outlet easy it would be a major success in both the
category of customers.

 DOES AMOUT OF FUEL BOUGHT HAS ANY EFFECT ON THE BUYING

DECISION

The graph indicates that people who buy 25-50 liters of petrol each have
either said YES to buy an easy fuel card or said MAY BE to buy an easy fuel
card. As against people who buy more than 100 lts of petrol where majority
are saying MAY BE and NO and a very few are saying YES to buying the easy
fuel card. Again the subjects in the more than 100 lts category said they had
a credit card which gave them good amount on savings while buying the fuel
from the current petrol pump.
Thus the people who fill in their tanks with smaller amount of petrol are our
primary target audience because these people do not go for the credit card
programmes as they do not have the opportunity to save on their fuel
expenses to a great extent as the refill their vehicles for less volume of fuel.

 LOYAL CUSTOMERS VS CARD BUYING BEHAVIOUR

All those who are somewhat loyal towards buying fuel have opted for
the easy fuel card.
Whereas those who are loyal have majorly said may be for buying the
easy fuel card. This shows that our target customer group is the one
who is not so strict in their fuel buying behavior.
The people who are not at all loyal towards buying fuel can be targeted
by showing them the benefits of using the XtraPower easy fuel card.
 DOES OWING A FUEL BASED CREDIT CARD ALTER THE BUYING
DECISION?

In the above graph red color indicates those people who do not owe a
credit card whereas blue indicates those people who owe a credit card.
From the above graph it is clear that those people who do not owe a
credit card opt for the easy fuel card over those who do owe such a
card.
Thus the target audience will be those who do not already owe a credit
card based programme.

CONCLUSION
XtraPower easy fuel card is a loyalty programme which offers a fuel
gifting option for the corporate. Here we try to find out if it will be viable
when presented for the general public. We conducted market research
to find out if it will be accepted by the people
In the general public who all will be our target audience that we need to
focus on is what we try to find out.
To find out answers for the same we conducted a market research in
which our sample size was of 60 individuals from varying fields and
varying age groups. We asked them a set of questions and also
provided space for any suggestions that they would like to provide us.
From the answers that were given we try to evaluate how the target
group composition would be that we need to focus on while launching
the card for general use.
We found out that for our target audience age is no bar but initially we
could focus on the age group of 18-25. This is because in this age group
the target audience is more receptive to innovative ideas. These are
the consumers who have to save a lot of money as far as fuel expenses
are concerned. XtraPower easy fuel card will help them serve the
purpose. The consumers of age group above 50 would be interested in
giving out this easy fuel card to their children so that they can curb on
the expenses these kids do on their vehicles.
We also found out that the 2-wheelers and consumers who use less
amount of petrol every month should be targeted as audience for the
easy fuel card because these people are usually not targeted by the
credit card based loyalty programmes as they give very little points to
be redeemed by these consumers. So instead these consumers can be
targeted by the easy fuel card so that they so that it’s easy for their
transactions.

Last but not the least are the consumers who are not so loyal in their
fuel buying behavior these consumers can be targeted to be the
customers of the easy fuel card programme by convincing them how
beneficial this card is because of the cashless transactions that the card
offers.
The consumers can be explained how they can limit their expenses on
fuel by predefining their fuel budget for the month. This way they can
save on the unnecessary expenses that are associated with the fuel
purchase.
XtraPower Easy Fuel Card

• The fuel card charges a fee of Rs. 30 per card purchased. This restricts
the consumer from buying the cards. In order to attract more
customers the company should consider waving off the registration
charges or if that is not feasible then the company should consider
waving off the charges in the 1st yr of purchase and any subsequent
refills after the 1st yr will be accounted at a minimal amount.

This is because once the customer is satisfied with the services offered
by the card they will not mind paying the minimal amount. However if
they are charged a fee right in the beginning then it will restrict their
buying decisions

• We need to focus on the media strategy for successful implementation

of the card. Advertisement is the key for successful introduction of the
programme. This programme is one of a kind in this category so it
would be well accepted by a major section of the target audience.
Good amount of publicity and public relations should be carried out for
the same.

With the fuel prices on the rise and overall fuel prices to follow the market
rate the company can have an assured customer base in the form of easy
fuel card users.

In conclusion I would just like to say that the fleet card programme was
implemented for retaining the current customer base and build on to the
already existing loyalty among the customers. So it must be implemented
regularly on the grass root level so that it keeps bringing the customer base
back to the company. With such intense competition and also the fuel prices
being market controlled it will be necessary for the even the market leaders
to build on to the current customer base and not lose any of it to keep its
market share intact.