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1.

Executive Summary:

The project title was “Analyzing the Parameters Leading to Customer Delight at Indian

Oil Retail Outlets” over a period of 8 weeks.

In the research the main focus was what all are the factors affecting the customer satisfaction

and how much those all factors are influencing overall customer satisfaction.

In first two weeks I decided upon the principle theory for the research on the basis of which

the further research could be developed, under the intense guidance of my Industrial

Research Guide Mr. Alok Srivastava (Manager – Retail Sales, Delhi Divisional Office).

Then I made an extensive literature study about Indian Oil and its retail business nature from

internet and other study materials which had provided by my research guide Mr. Srivastava.

After understating the research needs and problem I designed a questionnaire on the basis of

SERVQUAL rating technique developed by Zeithmal V and Bitner M.

It took two more weeks to collect primary data from field, where 10 IOCL retail outlets had

taken under the survey as suggested by my research guide Mr. Srivastava.

After the data had made to available to me 6th and 7th week had taken to consolidate and

analysis those data according to the relevance of the research.

In 8th week the draft of report had been made and scrutinized by Mr. Srivastava. After the

approval of Mr. Srivastava the draft has been script in final report form for the purpose of

submitting as the completion of my eight weeks Summer Internship in Indian Oil

Corporation Limited as partial fulfilment of Post Graduated Diploma in Management.

The overall expenditure from the starting day of research & up to the end day of submission

of report was in between Rs 4000-4500.

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Corporation Limited
2.Introduction:

2.1.Needs of Research:

A successful business always need to constant monitoring of its services that are provided to

its customer. To meet the constant monitoring one needs to develop a methodological system

to do the effective monitoring of services.

As customer are the centre of the service business one need to understand their needs and

requirement properly. This is only possible by regular interaction with the customers.

So, the extensive research should have take place to measure the service quality of different

retail outlets of Indian Oil Corporation Limited by involving its customer only.

Here, I would like to introduce the SERVQUAL principle to develop the research and as well

as to develop the monitoring system too.

2.2.Research Problem:

Indian Oil Corporation Limited retail outlets are basically franchise given to individual

business owner, who make sells of Indian Oil Corporation products under their roofs.

These owners solely responsible for running the business under the brand name of Indian Oil

Corporation Limited.

The service quality of a particular outlet totally lays upon them, how they are operating that

particular outlet. So, it is the foremost necessity to measure their performance to deliver the

desired level of the service quality to their customer on regular intervals.

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Corporation Limited
3.Indian Oil Corporation Limited at a Glance:

3.1.Vision of Indian Oil Corporation Limited

A major diversified, transnational, integrated energy company, with national leadership and a

strong environment conscience, playing a national role in oil security & public distribution.

3.2.Mission of Indian Oil Corporation Limited

IOCL has the following mission:

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

diversified business with focus on customer delight through value of products and

services and cost reduction.

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

• To attain leadership in developing, adopting and assimilating state-of- the-art

technology for competitive advantage.

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

• To foster a culture of participation and innovation for employee growth and

contribution.

• To cultivate high standards of business ethics and Total Quality Management for a

strong corporate identity and brand equity.

• To help enrich the quality of life of the community and preserve ecological balance

and heritage through a strong environment conscience.

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Corporation Limited
3.3.Values of Indian Oil Corporation Limited

Values exist in all organizations and are an integral part of any it. Indian Oil nurtures a set of

core values:

• CARE

• INNOVATION

• PASSION

• TRUST

3.4.Company Profile

India’s flagship national oil company and downstream

petroleum major, Indian Oil Corporation Ltd. (Indian Oil) is

celebrating its Golden Jubilee in 2009. It is India's largest

commercial enterprise, with a sales turnover of Rs. 2, 85,337

crore – the highest-ever for an Indian company – and a net

profit of Rs. 2, 950 crore for the year 2008-09. Indian Oil is also the highest ranked Indian

company in the prestigious Fortune 'Global 500' listing, having moved up 11 places to the

105th position in 2009. India’s Flagship National Oil Company Incorporated as Indian Oil

Company Ltd. on 30th June, 1959, it was renamed as Indian Oil Corporation Ltd. on 1st

September, 1964 following the merger of Indian Refineries Ltd. (established 1958) with it.

Indian Oil and its subsidiaries account for approximately 48% petroleum products market

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Corporation Limited
share, 34% national refining capacity and 71% downstream

sector pipelines capacity in India.

For the year 2008-09, the Indian Oil group sold 62.6 million

tonnes of petroleum products, including 1.7 million tonnes of

natural gas, and exported 3.64 million tonnes of petroleum products.

The Indian Oil Group of companies owns and operates 10 of India's 20 refineries with a

combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, .i.e. 1.2

million barrels per day). These include two refineries of subsidiary Chennai Petroleum

Corporation Ltd.

The Corporation's cross-country network of crude oil and product pipelines, spanning over

10,000 km and the largest in the country, meets the vital energy needs of the consumers in an

efficient, economical and environment-friendly manner.

Indian Oil is investing Rs. 43,400 crore (US $10.8 billion) during the period 2007-12 in

augmentation of refining and pipeline capacities, expansion of marketing infrastructure and

product quality upgradation as well as in integration and diversification projects. Network

Beyond Compare As the flagship national oil company in the downstream sector, Indian Oil

reaches precious petroleum products to millions of people everyday through a countrywide

network of about 35,000 sales points. They are backed for supplies by 167 bulk storage

terminals and depots, 101 aviation fuel stations and 89 Indane (LPGas) bottling plants. About

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Corporation Limited
7,335 bulk consumer pumps are also in operation for the convenience of large consumers,

ensuring products and inventory at their doorstep.

Indian Oil operates the largest and the widest network of petrol & diesel stations in the

country, numbering over 18,278. It reaches Indane cooking gas to the doorsteps of over 53

million households in nearly 2,700 markets through a network of about 5,000 Indane

distributors.

Indian Oil's ISO-9002 certified Aviation Service commands over 63% market share in

aviation fuel business, meeting the fuel needs of domestic and international flag carriers,

private airlines and the Indian Defence Services. The Corporation also enjoys a dominant

share of the bulk consumer business, including that of railways, state transport undertakings,

and industrial, agricultural and marine sectors. Technology Solutions Provider Indian Oil's

world-class R&D Centre is perhaps Asia's finest. Besides pioneering work in lubricants

formulation, refinery processes, pipeline transportation and alternative fuels, the Centre is

also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel

economy in the country. It has set up a commercial Hydrogen-CNG station at an Indian Oil

retail outlet in New Delhi this year. The Centre holds 214 active patents, including 113

international patents.

Indian Oil has joined the league of global technology providers last year with the selection of

its in-house developed INDMAX technology (for maximising LPGas yield) for the 4

MMTPA Fluidised Catalytic Cracking (FCC) unit at the Corporation's upcoming 15

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Corporation Limited
MMTPA grass roots refinery at Paradip in Orissa, as well as for

the FCC unit coming up at BRPL.

A wholly-owned subsidiary, Indian Oil Technologies Ltd., is

engaged in commercialising the innovations and technologies

developed by Indian Oil's R&D Centre. Customer First At Indian Oil, customers always get

the first priority. New initiatives are launched round-the-year for the convenience of the

various customer segments.

Exclusive XTRACARE petrol & diesel stations unveiled in select urban and semi-urban

markets offer a range of value-added services to enhance customer delight and loyalty. Large

format Swagat brand outlets cater to highway motorists, with multiple facilities such as food

courts, first aid, rest rooms and dormitories, spare parts shops, etc. Specially formatted Kisan

Seva Kendra outlets meet the diverse needs of the rural populace, offering a variety of

products and services such as seeds, fertilisers, pesticides, farm equipment, medicines, spare

parts for trucks and tractors, tractor engine oils and pump set oils, besides auto fuels and

kerosene. SERVOXpress has been launched recently as a one-stop shop for auto care

services.

To safeguard the interest of the valuable customers, interventions like retail automation,

vehicle tracking and marker systems have been introduced to ensure quality and quantity of

petroleum products. Widening Horizons To achieve the next level of growth, Indian Oil is

currently forging ahead on a well laid-out road map through vertical integration— upstream

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Corporation Limited
into oil exploration & production (E&P) and downstream into petrochemicals – and

diversification into natural gas marketing, bio fuels, wind power projects, besides

globalisation of its downstream operations.

3.4.1.Petrochemicals

In petrochemicals, Indian Oil is envisaging an investment of Rs. 20,000 crore (US$ 4 billion)

by the year 2011-12. Through the world’s largest single-train Linear Alkyl Benzene (LAB)

plant with an annual capacity of 1,20,000 tonnes set up at its Gujarat Refinery, the

Corporation has already captured a significant market share of LAB in India, besides

exporting the product to Indonesia, Turkey, Thailand, Vietnam, Norway and Oman.

A world-scale Paraxylene/Purified Terephthalic Acid plant (annual capacities: PX - 3,63,000

tonnes, PTA – 5,53,000 tonnes) for polyester intermediates is already in operation at Panipat,

while a Naphtha Cracker with a capacity of 800,000 tonnes of ethylene per annum, 6,00,000

TPA of Propylene, besides an annual production of 3,25,000 TPA of Mono Ethylene Glycol,

1,40,000 TPA of Butadiene, 6,50,000 TPA of Polyethylene and 6,00,000 TPA of

Polypropylene, equipped with downstream polymer units is to be completed by December

2009 at Panipat.

A grassroots refinery at Paradip is proposed to be completed by the year 2011-12,

subsequently followed by the setting up of an integrated petrochemical plants with an

estimated investment of Rs 12,000 crore (US$ 2.5 billion) which will further strengthen the

Corporation’s presence in the sector.

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Corporation Limited
3.4.2.Oil Exploration & Production

In E&P, Indian Oil has non-operator participating interest in seven oil & gas blocks awarded

under various NELP (New Exploration Licensing Policy) rounds and two Coal Bed Methane

blocks in India, in consortium with other companies. In addition, Indian Oil has two onshore

type ‘S’ NELP blocks, with 100% participating interest (PI) and sole operatorship. It also has

participating interest in an onshore block in Assam and Arunachal Pradesh through a farm-in.

Overseas ventures of the Corporation includes two blocks (86 and 102/4) in Sirte Basin and

Areas 95/96 in Ghadames basin of Libya, Farsi Exploration Block in Iran, onshore farm-in

arrangements in one block in Gabon, one on land block in Nigeria, one deepwater offshore

block in Timor-Leste and two onshore blocks in Yemen. In all, Indian Oil has 12 domestic

exploration blocks, including 2 blocks where gas discoveries have been made and 9 overseas

exploration blocks, & the Farsi block in Iran where commerciality of gas discovery has been

established. Indian Oil has incorporated Ind-OIL Overseas Ltd. – a special purpose vehicle

for acquisition of overseas E&P assets – in Port Louis, Mauritius, in consortium with Oil

India Ltd. (OIL).

3.4.3.Gas

In natural gas business, Indian Oil sold 1.849 million tonnes of the product in 2008-09. A

technology innovation has been initiated to reach LNG (Liquefied Natural Gas) directly to

the doorstep of bulk consumers in cryogenic containers for industrial as well as captive

power applications.
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Corporation Limited
To consolidate its city gas distribution (CGD) business, Indian Oil has tied up with several

players such as Adani Energy, Reliance Gas Corporation, OIL and ONGC, etc., to set up

joint ventures in various cities of India. The Corporation has also entered into franchise

agreements with CGD players such as Indraprastha Gas Ltd., Mahanagar Gas Ltd., Adani

Energy Limited, GEECL, SITI Energy and GSPC Gas Ltd. to market CNG through its retail

outlets

3.4.4.Bio-fuels

To straddle the complete bio-fuel value chain, Indian Oil formed a joint venture with the

Chhattisgarh Renewable Development Authority (CREDA) with an equity holding of 74%

and 26% respectively. Indian Oil CREDA Biofuels Ltd. has been formed for carrying out

farming, cultivating, manufacturing, production and sale of biomass, bio-fuels and allied

products and services.

A pilot project of jatropha plantation on 600 hectares of revenue wasteland is underway in

Jhabua district in Madhya Pradesh to ascertain the feasibility of revenue land-based

commercial biodiesel units and to develop benchmarks for plantation costs and output.

Indian Oil has also signed an MoU with M/s Ruchi Soya Industries Ltd. to take up contract

farming on one lakh hectare of private and panchayat wasteland in the state of Uttar Pradesh.

3.4.5.Wind Energy Business

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Corporation Limited
Indian OiI has forayed into wind energy business with the commissioning of a Rs. 130 crore,

21 MW wind power project in the Kutch district of Gujarat. The cumulative power

generation from the 14 wind turbine generators has crossed 159 lakh KW since

commissioning in January 2009.

It has also commissioned two pilot solar lantern charging stations at its Kisan Seva Kendra at

Sathla near Meerut and Chokoni near Bareilly.

3.4.6.Consultancy

For over two decades now, Indian Oil has been providing technical and manpower

secondment services to overseas companies. Such services have been extended to Emirates

National Oil Company (ENOC), Kenya Pipeline Company and Aden Refinery, Yemen . For

the first time, SAP implementation / IT consultancy was provided in Sri Lanka. Consultancy

on pipelines was provided to Greater Nile Petroleum Operating Company (GNPOC), Sudan.

3.4.7.Globalization Initiatives

Indian Oil has set up subsidiaries in Sri Lanka, Mauritius and the United Arab Emirates

(UAE), and is simultaneously scouting for new business opportunities in the energy markets

of Asia and Africa.

3.4.7.1.Lanka IOC Plc (LIOC)

Lanka IOC Ltd. operates about 150 petrol & diesel stations in Sri Lanka, and has a very

efficient lube marketing network. Its major facilities include an oil terminal at Trincomalee,

Sri Lanka's largest petroleum storage facility and an 18,000 tonnes per annum capacity
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Corporation Limited
lubricants blending plant and state-of-the-art fuels and lubricants testing laboratory at

Trincomalee. Presently, it holds a market share of about 40%. In a highly competitive bunker

market, catering to all types of bunker fuels and lubricants at all ports of Sri Lanka, viz.,

Colombo, Trincomalee and Galle. It is the major supplier of lubricants and greases to the

three arms of the Defence services of Sri Lanka. LIOC's market share in petrol increased

stands at 24.8% in 2008 with an overall market share of 16.9%.

3.4.7.2.Indian Oil (Mauritius) Ltd. (IOML)

Indian Oil (Mauritius) Ltd. has an overall market share of nearly 22% and commands a 35%

market share in aviation fuelling business, apart from its bunkering business. It operates a

modern petroleum bulk storage terminal at Mer Rouge port, besides 17 filling stations. In

addition to the ongoing expansion of retail network, IOML has to its credit the first ISO-9001

product-testing laboratory in Mauritius.

3.4.7.3.Indian Oil Middle-East FZE (IOME)

The Corporation's UAE subsidiary, IOC Middle East FZE, which oversees business

expansion in the Middle East, is mainly into blending and marketing of SERVO lubricants

and marketing of petroleum products in the Middle East, Africa and CIS countries. Finished

lubes were exported to Oman , Qatar , Yemen , Bahrain , UAE and Nepal .

3.5.Objectives & Obligations

3.5.1.Objectives:

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

with Government policies.


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Corporation Limited
• To ensure maintenance of continuous and smooth supplies of petroleum products by

way of crude oil refining, transportation and marketing activities and to provide

appropriate assistance to consumers to conserve and use petroleum products

efficiently.

• To enhance the country's self-sufficiency in crude oil refining and build expertise in

laying of crude oil and petroleum product pipelines.

• To further enhance marketing infrastructure and reseller network for providing

assured service to customers throughout the country.

• To create a strong research & development base in refinery processes, product

formulations, pipeline transportation and alternative fuels with a view to

minimizing/eliminating imports and to have next generation products.

• To optimise utilisation of refining capacity and maximize distillate yield and gross

refining margin.

• To maximise utilisation of the existing facilities for improving efficiency and

increasing productivity.

• To minimise fuel consumption and hydrocarbon loss in refineries and stock loss in

marketing operations to effect energy conservation.

• To earn a reasonable rate of return on investment.

• To avail of all viable opportunities, both national and global, arising out of the

Government of India’s policy of liberalisation and reforms.

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Corporation Limited
• To achieve higher growth through mergers, acquisitions, integration and

diversification by harnessing new business opportunities in oil exploration &

production, petrochemicals, natural gas and downstream opportunities overseas.

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

sets for full exploitation of the new business opportunities.

• To develop operational synergies with subsidiaries and joint ventures and

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

large.

3.5.2.Financial Objectives

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

dividend on equity capital.

• To ensure maximum economy in expenditure.

• To manage and operate all facilities in an efficient manner so as to generate adequate

internal resources to meet revenue cost and requirements for project investment,

without budgetary support.

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

Corporation’s business.

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

control measures and thereby sustain market leadership through cost competitiveness.

• To complete all planned projects within the scheduled time and approved cost.

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Corporation Limited
3.5.3.Obligations

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

service and quality products at competitive prices.

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

courtesy and help promote ancillary industries.

• Towards employees:- To develop their capabilities and facilitate their advancement

through appropriate training and career planning. To have fair dealings with

recognised representatives of employees in pursuance of healthy industrial relations

practices and sound personnel policies.

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

friendly products. To maintain the highest standards in respect of safety, environment

protection and occupational health at all production units.

• Towards Defence Services:- To maintain adequate supplies to Defence and other

para-military services during normal as well as emergency situations.

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Corporation Limited
4.Retail Business Brands of Indian Oil Corporation Limited:

4.1.Auto Gas

Auto Gas (LPG) is a clean, high octane, abundant and eco-friendly fuel. It is obtained from

natural gas through fractionation and from crude oil through refining. It is a mixture of

petroleum gases like propane and butane. The higher energy content in this fuel results in a

10% reduction of CO2 emission as compared to MS.

Auto Gas is a gas at atmospheric pressure and normal temperatures, but it can be liquefied

when moderate pressure is applied or when the temperature is sufficiently reduced. This

property makes the fuel an ideal energy source for a wide range of applications, as it can be

easily condensed, packaged, stored and utilised. When the pressure is released, the liquid

makes up about 250 times its volume as gas, so large amounts of energy can be stored and

transported compactly.

The use of LPG as an automotive fuel has become legal in India with effect from April 24,

2000, albeit within the prescribed safety terms and conditions. Hitherto, the thousands of

LPG vehicles running in various cities have been doing so illegally by using domestic LPG

cylinders, a very unsafe practice. Using domestic LPG cylinders in automobiles is still

illegal.

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Corporation Limited
The fuel is marketed by Indian Oil under the brand name ‘Auto Gas’

Indian Oil has setup 232 Auto LPG Dispensing Stations (ALDS) covering 124 cities across

India.

Auto Gas impacts greenhouse emissions less than any other fossil fuel when measured

through the total fuel cycle. Conversion of petrol to Auto Gas helps substantially reduce air

pollution caused by vehicular emissions.

The saving on account of conversion to Auto Gas in comparison to petrol is about 35-40%.

Low filling times and the 35-40% saving is a reason enough for a consumer to convert his

vehicle to Auto Gas.

4.2.XTRAPREMIUM

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

multifunctional additives known as friction busters that prevents combustion chamber

deposits. XTRAPREMIUM is custom designed to deliver higher mileage, more power, better

pick up, faster acceleration, enhanced engine cleanliness and lower emissions.

XTRAPREMIUM is a sought after fuel among discerning customers who own new

generation, high-performance cars who have endorsed its unmatched performance.

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Corporation Limited
In terms of fuel system cleanliness XTRAPREMIUM is hugely superior to any other

alternative fuel in this segment, with the additional benefit of fuel efficiency through the

friction modifier. The additive package contains proprietary components including a

detergent dispersant, a friction modifier and a corrosion inhibitor, as a perfectly optimized

formulation in synthetic carrier oil. The detergent dispersant cleans the fuel system and the

friction modifier drastically reduces friction in the non-lubricated engine area contributing to

fuel economy.

4.3.XTRAMILE

Indian Oil’s XTRAMILE Super Diesel, the leader in the branded diesel segment is blended

with world-class ‘Multi Functional Fuel Additives (MFA). Commercial vehicle owners

choose XTRAMILE because they see a clear value benefit in terms of superior mileage,

lower maintenance costs and improved engine protection. A growing section of customers

who own diesel automobiles, both in the ‘lifestyle’ and ‘passenger’ category, prefer

XTRAMILE as a fuel for its added and enhanced performance. XTRAMILE has brought in a

huge savings in the high mileage commercial vehicle segment. Transport fleets that operate a

large number of trucks crisscrossing the country are using XTRAMILE to not only obtain a

higher mileage but also for low maintenance costs.

4.4.Petrol/Diesel Stations

IndianOil was the pioneer in launching state-of-the-art petrol stations with digital dispensers,

modern canopies, standardized signage and efficient lighting systems way back in the mid-

1990s. The new retail-branding template introduced by Indian Oil set in motion a revolution

in the petroleum retail business in the country. Indian Oil pioneered differentiated offerings

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Corporation Limited
to meet the diverse needs of its customers, be it through large format Swagat outlets for the

highway traffic, Kisan Seva Kendras for the rural consumer, or even the XTRAcare outlets

for the discerning urban customer.

4.4.1.XTRAcare

Indian Oil's XTRAcare E branded full service petrol stations is a result of a series of

processes in retail design, product and service upgradation, capability training, automation,

loyalty programs, retail site management techniques all benchmarked to global standards.

Today XTRAcare petrol stations are synonymous in India with world-class petroleum

retailing.

Complete vehicle care begins at an Indian Oil XTRAcare petrol pump. From branded auto

fuels, to speedy windshield wipers to quick oil checks and snappy air service, you will

experience the superior services that will leave your vehicle feeling special.

Indian Oil's XTRAcare pump is a revolutionary initiative in petroleum retailing that

combines the best bouquet of quality, quantity and warm service, with a guarantee to make

your every visit a truly rejuvenating experience. It is benchmarked to international standards

of quality & quantity, housekeeping, maintenance and customer service certified to globally

renowned benchmarks certified by the globally renowned agency - M/s Bureau Veritas (BV),

amongst others.

The maintenance of the equipment at the XTRAcare outlets is undertaken by Original

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Corporation Limited
Equipment Manufacturers under a unique 'Equipment Quality Outsourcing' system.

While the industry standard is to take samples on a quarterly basis, Indian Oil has moved

several steps ahead by introducing fortnightly random sampling with specific importance

given to RON (Research Octane Number) sampling which is truly the definitive test for

quality and quantity. The surveillance audits by BV are being done on a more comprehensive

basis. The scale and spread of XTRAcare pumps is also an industry record.

With automated facilities, highly trained attendants and forecourt managers attuned to the

needs of your car an XTRAcare pumps offers the full range of branded fuels-

XTRAPREMIUM Petrol and XTRAMILE Diesel as well as world-class SERVO lubricants

and a comprehensive loyalty programme.

The non-fuel activities get a major fillip at the Indian Oil XTRAcare and a wide range of

loyalty programs like XTRAREWARDS, XTRAPOWER and co-branded cards give

customers added benefits (available at present at select petrol pumps). The cutting edge

technology introduced at XTRAcare pumps includes automatic tank level gauges,

temperature sensors, density measurement sensors, back-office server with dispensing unit

controls, customer database, etc.

Another vital differentiator in the Indian Oil XTRAcare is the importance given to the

frontline customer attendants. They are trained at three levels of competencies--customer

service, personal hygiene/grooming and customer complaint redresses. XTRAcare dealers

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Corporation Limited
also undergo extensive training on 'Retail Site Business Management' a unique training

module incorporating best global practices in retail sales management.

4.4.2.Kisan Seva Kendra

Kisan Seva Kendra is a unique award-winning retail outlet model pioneered by Indian Oil to

cater to the needs of the customers' in the rural segment. Today Indian Oil's KSKs have

emerged as a dominant player in the rural markets, riding on the rapid growth of upcoming

second and third tier roads in the rural areas. The KSKs come with a fresh perspective

enabling dealers to tap the huge demand driven in by consumers there. In addition, non-fuel

retail facilities like convention stores have been added to the KSKs selling pesticides,

vegetables, banking products and stationery items. Indian Oil has also tied up with Indo Gulf

for fertilizers, National Seeds Corporation for marketing seeds and agricultural inputs as well

as alliances with Nabard, Oriental Bank of Commerce and Bank of Baroda for banking

products. At some KSKs even internet kiosks, communication facilities, etc. have been

installed. Business alliances have been signed to market products from Dabur, Airtel, Tata

Chemicals, Godavari Fertilisers, Gokulam Fertilisers, Hindustan Unilever and Godrej

Agrovet. Other alliance partners are Emami for personal care products, Money Gram for

money transfer, MILMA and OMFED for milk products and Supplyco for convenience

stores.

4.4.3.Swagat

The Swagat retail network are large format sites designed exclusively to cater to travellers on

the highways. With spacious parking lots, dhabas, eateries, retail stores and restroom, the

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Corporation Limited
Swagat outlets provide customized services to owners of both light motor vehicles as well as

heavy motor vehicles.

5.Loyalty Programs of Indian Oil Corporation Limited:


Indian Oil's loyalty programs are designed exclusively to benefit customers who have been

patronizing the brand for over four decades.

5.1.XTRAPOWER

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

solution for fleet operators and Corporate for cashless purchase of fuel & lubes from

designated retail outlets of Indian Oil through flexible pre-paid and credit facilities. The fleet

card program also offers an exciting rewards program and unique benefits like personal

accident insurance cover and vehicle tracking facilities. In just under two years of its launch,

Indian Oil's XTRAPOWER Fleet Card has emerged as the largest fleet card in the country

with the widest retail outlet coverage. Any business entity owning or operating a vehicle fleet

can become a member of the XTRAPOWER fleet card program at a nominal annual charge.

Each fleet owner is issued a Fleet Control Card and vehicle-specific Fleet Cards for every

vehicle enrolled under the program. For enhanced security, the fleet card transactions are

authorized through unique Personal Identification Number (PIN). Moreover, the card can

help track each vehicle's movement across remote corners of the country leading to an

improvement in vehicle utilization and route compliance. XTRAPOWER is also backed by

Indian Oil's vast infrastructure network and web-based support services.

5.2.XTRAREWARDS

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Indian Oil XTRAREWARDS is India's first on-line rewards program that seeks to inculcate

the habit of redeeming points. The loyalty program rewards customers paying by cash, credit

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

can earn points on fuel/lube purchases at participating Indian Oil Retail Outlets. Additional

points can also be earned outside the Indian Oil network, covering prominent FMCG, Food,

Automobile, Travel, Entertainment, Apparel and Hospitality sectors. XTRAREWARDS is

currently active in Mumbai, Ahmadabad, Bangalore, Mysore, Coimbatore and Chennai. It

will be shortly available in other markets like Delhi. Apart from redeeming the accumulated

points instantly on fuel / SERVO Lubes at participating Retail Outlets, the card holder can

also redeem the points to get some exciting gift items from a catalogue. The redemption on

gifts can be registered either from the participating Retail Outlets or from the comfortable

confines of one's home through the 24x7 IVRS Help Line (022-2880 9030). The program

continuously provides the cardholder with privileges, benefits and offers from alliance

partners like Domino's Pizza, Subhiksha, Rediff Shopping, Kumaran Silks, Dhabba Express,

Chennai Corporate Club and Archana Sweets.

6.About IOCL Market Position

Indian Oil Corporation's marketing has cashed in by raising its overall market share to 48.9%

through an impressive 8.7% year-on-year growth in sales volume till March 31. Ironically

though, with daily losses on fuel sales estimated at Rs 238 crore, a good marketing

performance means higher losses because the company has to retail fuels at an artificially

low price set by the government.

23 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Indications are that Indian Oil could end 2008-09 by taking a hit of Rs 10,000 crore on its

books if the government keeps pump prices suppressed and international crude keeps rising.

"Indian Oil's market leadership has come from its expanded reach, innovations and

consumers' increased awareness of quality and quest for better products. XtraPremium petrol

is available in 38% of our outlets and XtraMile diesel in 58%. We are selling auto-LPG

through 157 outlets across 75 cities and will be adding 100 more stations this year. We have

also benefited from successful amalgamation of IBP's business," IOC director (marketing) G

C Daga said.

IOC had acquired IBP, a standalone retailer, during the NDA regime's disinvestment drive.

On the ground, Indian Oil's marketing performance was top-notch in the industry in all fuel

segments. Overall domestic sales stood at 58.3 million tonnes, while exports stood at 3.3

million tonnes. This marks a growth rate of 8.7% and 8.5%, respectively. Similarly in

branded motor fuels, which are costlier than normal fuels, Indian Oil's market share grew to

48.2% in petrol and 58.6% in diesel. In volume terms, growth stood at 89% for petrol and

65% for diesel. In auto-LPG too volumes grew 53%, with an average monthly sale of 8,000

tonnes.

Daga said the increased thrust on rural markets through the string of Kisan Seva Kendras' too

had yielded results. The number of these low-cost retail outlets have crossed 2,500 and cover

85% of the districts and 42% tehsils in India.

24 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
After conducting a thorough study on Indian Oil Corporation Limited, some innovative ideas

could be generated to sustain the market stake in the competitive market and may could also

able to help in increase the business to position IOCL as a Market Leader in Petro Chemical

Retail Business.

25 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
7.Research Methodology:

Objectives:

• To study and analyze the current customer satisfaction level at Indian Oil Retail

outlets.

• To understand the customer needs for service excellence at Indian Oil Retail outlets.

• To generate new ideas to exceed the customer expectation of service at Indian Oil

Retail outlets.

• To prepare a successful work plan for Initiation and Implementation of those ideas at

Indian Oil Retail outlets.

Hypothesis: SERVQUAL principle would be applied for the research result.

Material And Methods:

Setting:

Research had conducted by filling up the survey forms in Different Indian Oil retail outlets at

Delhi.

Duration Of Study: 2 weeks

Sample Unit: The survey had conducted in Delhi region.

Sample Size: 100 respondents.

Sampling Method: Random Sampling.

Sample Selection:

Inclusion criteria: Private Vehicle’s owners.

26 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Exclusion criteria: Below 18 years of age and Public vehicles.

Data Collection Procedure:

Private Vehicle’s owners was asked to fill the questionnaire designed for survey which had

contain questions prepared by ‘Rating Scale’ method.

Sl. No. Name of Retail Outlet Location of Retail Outlet

1. 100 % Dwarka, Sector – 9

2. Millennium Petro Care Dwarka, Sector – 9

3. Raj Super Service Centre Motibagh Gurudwara

4. Jai Garur Gas Station Janakpuri, B – 1 Block

5. Kapoor Auto Service Centre Papparganj

6. Image Filling Station Mayur Vihar, Phase – 1

7. Kyber Service Station Motibagh

8. Kutub Service Station Mehroli Road

9. Raj Kumar Super Service Station IIT Crossing

10. S. Vidhya Dwarka, Sector – 3


List of Sample IOCL Retail Outlets at New Delhi
Table 1
These 10 outlets of New Delhi are taken randomly for sampling of this research, which are

recommended by IOCL authority.

27 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
28 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
29 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
9.Principles Theory of the Research:

9.1.The Gaps Model

Devised by Berry, Zeithaml and Parasuraman, the model is premised upon disconfirmation

theory, the idea that consumers evaluate services by comparing their expectations of what

will happen during a service encounter with their perceptions of the actual service received.

Where service encounter experiences are better than expected there is positive

disconfirmation and customers are satisfied but where the experience is worse than expected

there is negative disconfirmation and customers are dissatisfied. The difference between

expected service and perceived actual service is conceptualised as a gap. To achieve

customer satisfaction service providers should aim to close this gap.

Zeithaml and Bitner have developed the model further.

“In a broad sense, the process of closing the customer gap ….. can be

subdivided into four company gaps within the organisation that inhibit service

quality” (Zeithaml & Bitner 1996)

The four provider gaps can be identified as follows:

• Not knowing what customers expect – the gap between customer expectations of a

service and the company understanding of those expectations.

30 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
• Not selecting appropriate service designs/standards – the gap between the company

understanding of customer expectations and development of customer focussed service

designs.

• Not delivering to service standards – the gap between developing of customer focussed

service designs and actual service delivery by service providers.

• Not matching performance to promises – the gap between service delivery and external

communications to customers.

The four provider gaps are summed in gap five, that between customer expectations of

service and the perceived service actually delivered. Thus,

“The key to closing the customer gap is to close gaps 1 through 4 and keep

them closed. To the extent that one or more gaps 1 through 4 exist, customers

perceive service quality shortfalls” (Zeithaml & Bitner 1996)

The Gaps model should prompt organisations seeking to improve the quality of their service

provision to ask some reflective questions.

Again, this model is applied to Indian Oil Corporation Limited (to evaluate the performance

of its retail outlets in New Delhi) in tabular form on the next page.

31 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
The Model Question Prompts Registry

Gap 1 To what extent do we Some consultation through Industry


know what our customers experts aware of recent market trends.
expect? To what extent do Regular feedback of customers. SWOT
we consult or survey and to Analysis of different products and
what extent do we assume marketing strategies. Assumption and
or guess? guesswork occurs.

Gap 2 To what extent are our Some “Tell-Tale” signs exist that
procedures customer procedures are company and resource
driven? To what extent are driven:
procedures driven by • opening hours designed to meet
financial requirements and organisational needs rather than
resource constraints? To customer needs
what extent do we have a • procedures designed to fit logistical
philosophy and requirements rather than meet
commitment to raise customer needs
service standards. • staffing levels set on a basis of
financial constraint rather than
service needs

Managers and staff committed to


improving service levels, evidenced in
departmental plan. Measurements of
service provision made to assist
assessment of performance against
Service Provision Statement.

32 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
To what extent do Recruitment activities emphasise need
Gap 3 employees understand their for staff to demonstrate good
role/perform services well interpersonal skills. Commitment to
and to standard? To what staff development and training. Human
extent is performance resources and technical resources
measured? To what extent subject to financial constraint.
are declared standards Service provision statement identifies
backed by appropriate requirements from customers to allow
human and technical service standards to be met, but not
resources? To what extent fully understood.
are customers made aware
of the role they are
required to play in meeting
service standards?

Gap 4 To what extent does the Service provision measured but not yet
service delivered match the tested against Service Provision
“promised” service – both Statement.
explicit and implicit? To
what extent are customers Customers made aware of invisible
made aware of the invisible organisation and system or “backstage”
organisation and systems service environment only as a means to
that underpin service explain events more fully in the context
provision? of complaint.

GAP Model at IOCL Retail Outlets


Table 2
A preliminary application of the Gaps models for managing service quality to the current

position of IOCL Retail Outlets suggests certain actions which could be undertaken to either

achieve a more balanced triangle or close gaps and, consequently, improve overall service

quality. An action plan is given later.

9.2.Customer Expectations and Satisfaction

Customer expectations play a central role in understanding evaluations of service quality.

The expectancy construct is a key aspect of the Services Marketing Triangle and underpins

33 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
the Gaps model, as shown earlier. It is instructive to explore the expectancy construct

further.

9.3.The Expectancy Construct

Levels of expectancy and satisfaction can be identified.

Service Encounter The customer’s satisfaction Expectations are based on beliefs of


Satisfaction or dissatisfaction with a what is likely to be, using past
discrete service encounter. experiences as a frame of reference.
In discussion the customer focuses
on events and employee behaviour
during a specific transaction.

Perceptions of The customer’s overall In discussion the customer focuses


Overall Service satisfaction or on aggregate past personal
Satisfaction dissatisfaction with an experiences
organisation, based on all
encounters and experiences

Perceptions of The customer’s overall Expectations are based on beliefs of


Service Quality impression of the relative what ought to be, either because it
inferiority or superiority of was explicitly promised or can be
an organisation and it’s assumed as implicit through
services comparison elsewhere. In
discussion, customers focus on
perceptions and broader topics,
including experiences of others,
elsewhere.

The Expectancy Construct


Table 3

Individual service encounters comprise moments of truth for customers that can be

aggregated over time, allowing them to develop an overall picture (Bitner & Hubbert 1994).

34 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Over time, multiple positive or negative encounters will lead to overall high or low levels of

satisfaction. Each service encounter therefore provides opportunities for service providers to

reinforce positive perceptions and gives customers opportunity for re-evaluation.

It is important to recognise that service satisfaction occurs at multiple levels. A customer

may be dissatisfied with a discrete encounter but perceive overall satisfaction, due to other

experiences. For these reasons, overall feelings, obtained for example from annual

questionnaires, do not provide full measure of satisfaction.

It should be noted that customers do not all have the same expectations. Each customer

approaches each service encounter with expectations based on their own understandings of

past experiences and beliefs of what is likely to be and what ought to be. This is a facet of

the heterogeneity of services.

9.4.Satisfiers and Non-Satisfiers in Services

Service encounters suggest that there are a number of generic satisfiers and Non-Satisfiers in

the context of service provision. The dimensions presented below are derived from the

aggregated service encounter journals of the presenters and are not exhaustive.

Satisfiers Non-Satisfiers

Prompt service Queues/Waiting


Delivery to expectation Failure to deliver to expectation
Equity/constancy Inequity/lack of constancy
Good personnel encounters Poor personnel encounters
Immediate complaint/recovery systems Poor on non-existent complaint/recovery

35 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Perceived good quality systems
Perceived poor quality

Satisfiers and Non-Satisfiers in Services


Table 4

The length of waiting time is a feature of almost all service encounters. In the case of one

encounter the length of time a customer waited for a service to be completed led to complaint

and in another was a contributory factor leading to an incidence of student aggression. In

other encounters prompt service was noted and appreciated by the customers. Prompt service

in one example involved compromise on quality in order to meet deadlines but was

considered adequate and satisfactory by the customer.

9.5.Evaluation of Service Provision

According to the Oxford English Dictionary, the act of evaluation is to “assess or appraise

something in order to determine value”

Zeithaml et al have identified dimensions of service quality, initially ten but subsequently

adjusted and condensed to five. These form the basis of the SERVQUAL scale for

measurement of service quality:

• Responsiveness - willingness to help;

• Assurance - knowledge and courtesy of employees and ability to inspire

trust and confidence;

• Tangibles - appearance of facilities, personnel and communications;

36 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
• Empathy - caring, individual attention;

• Reliability - accuracy and dependability.

In assessing service quality under the SERVQUAL model, each dimension is measured

against two scales – expectations of service and perceptions of service.

The SERVQUAL schema has been the subject of various critiques. Although complex, it

remains a popular and prominent model for evaluating service quality, especially when used

in a modified form (Gabbot & Hogg 1998). A more simple and general framework for

evaluation can be employed, again linked to the notion of gaps. The framework comprises

the fifth and final key function of planning model that can be applied in the context of

services (Palmer 1998):

1. Analysing the current position – Where are we now?

2. Setting objectives for the organisation – where do we want to be?

3. Identifying and evaluating strategic alternatives – how can we get there?

4. Implementing the chosen strategy – what will we do?

5. Monitoring and controlling – are we meeting our objectives?

This framework for evaluation is not wholly customer based and simply allows comparison

of performance against targets. Nevertheless, customers could play a key role in identifying

whether targets have been met. Where performance indicators and measurements show

37 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
negative gaps against targets, remedial action can be taken or contingency plans implemented

to close the gap.

9.6.Correcting Performance Problems

For the registry the benefits of correcting performance problems and costs of not doing so

appear stark:

• Benefits - improved service quality

improved working relationships, with staff commitment

improved working environment

• Costs - service deterioration and quality losses

customer dissatisfaction

poor working relationships, with high rates of staff turnover

poor working environment

10.Research Findings:

100%, Dwarka Sector 9, New Delhi

Name of Retail Outlets 100%


Grand SRVQUAL
Sub Total Total Rating
SERVQUAL
Dimensions Question No.
Tangibles Q1 57 57 5.7
Reliability Q2 55 55 5.5
Responsiveness Q3 56 56 5.6
Empathy
Competence Q4 55

38 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Courtesy Q5 58
Credibility Q6 67
Security Q7 67
247 6.175
Assurance
Access Q8 52
Communication Q9 51
Understanding Q 10 48
151 5.03
Overall SERVQUAL
Rating 5.601
SERVQUAL Rating 100 %
Table 5

SERVQUAL Comparison of 100 % with IOCL


Chart 1
This outlet’s SERVQUAL Rating is almost linear with the IOCL’s overall Rating. This

Justifies that:

• The appearance and outlook of the outlet is satisfactory with company’s perceived

Service quality.

• Though this outlet is not able to achieve the perceived level of reliability among its

customer.

• But this outlet is good enough to response with the customer queries.

• This outlet is able to meet the perceived level of individual attention to its customer.

• The most noticeable quality of this outlet is able to communicate and understand its

customer needs.

Millennium Petro Care, Dwarka Sector 9, New Delhi:

Name of Retail Outlets Millennium Petro Care


Grand SRVQUAL
Sub Total Total Rating
SERVQUAL
Dimensions Question No.
39 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Tangibles Q1 59 59 5.9
Reliability Q2 57 57 5.7
Responsiveness Q3 54 54 5.4
Empathy
Competence Q4 54
Courtesy Q5 61
Credibility Q6 67
Security Q7 66
248 6.2
Assurance
Access Q8 51
Communication Q9 48
Understanding Q 10 48
147 4.9
Overall SERVQUAL
Rating 5.62

SERVQUAL Rating of Millennium Petro Care


Table 6

SERVQUAL Comparison of Millennium Petro Care with IOCL


Chart 2

The above data justifies the following points:

• The appearance and outlook of the out is very high.

• As well as its reliability about quality of the products and transactions are highly

appreciable.

• Though it is not a good sign for a service outlet when the responses to its customer

are lower the perceived quality.

• But this outlet is good to take care of its customer’s individual needs.

• And it able to meet the level of Assurance.

40 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Raj Super Service Centre, Motibagh Gurudwara, New Delhi:

Name of Retail Outlets Raj Super Service Centre


Grand SRVQUAL
Sub Total Total Rating
SERVQUAL
Dimensions Question No.
Tangibles Q1 55 55 5.5
Reliability Q2 60 60 6
Responsiveness Q3 58 58 5.8
Empathy
Competence Q4 49
Courtesy Q5 61
Credibility Q6 68
Security Q7 67
245 6.125
Assurance
Access Q8 59
Communication Q9 51
Understanding Q 10 48
158 5.27
Overall SERVQUAL
Rating 5.739

SERVQUAL Rating of Raj Super Service Centre


Table 7

SERVQUAL Comparison of Raj Super Service Centre with IOCL


Chart 3

Form the above data the understandings are like following:

• Tough the outlooks and appearances of the outlet is not very appreciable.

41 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
• It highly reliable among the customer about its quality of the products and

transactional clarity.

• This outlet is able to respond to its customer queries very promptly.

• Whereas, same time it is unable to meet the perceived level of customer individual

attention requirements.

• But they are effective in communication with its customer, which exemplary.

Jai Garur Service Station, Block B1 Community Centre Jankpuri, New Delhi:

Name of Retail Outlets Jai Garur Gas Station


Grand SRVQUAL
Sub Total Total Rating
SERVQUAL
Dimensions Question No.
Tangibles Q1 57 57 5
Reliability Q2 59 59 5.9
Responsiveness Q3 58 58 5.8
Empathy
Competence Q4 52
Courtesy Q5 59
Credibility Q6 68
Security Q7 68
247 6.18
Assurance
Access Q8 52
Communication Q9 49
Understanding Q 10 48
149 4.97
Overall SERVQUAL
Rating 5.57
SERVQUAL Rating of Jai Garur Gas Station
Table 8

SERVQUAL Comparison of Jai Garur Gas Station with IOCL


Chart 4
42 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
The extracts from the above data are like followings:

• The appearance and outlook is really poor of this outlet.

• But the same time this outlet highly reliable among its customer.

• Also do very well in case of providing response to its customer queries.

• It is also able to meet the perceived level of individual customer attention.

• This outlet is able to communicate with its customer effectively enough.

Kapoor Auto Service Centre, Pappar Ganj, New Delhi:

Name of Retail Outlets Kapoor Auto Service Station


Grand SRVQUAL
Sub Total Total Rating
SERVQUAL
Dimensions Question No.
Tangibles Q1 56 56 5.6
Reliability Q2 53 53 5.3
Responsiveness Q3 50 50 5
Empathy
Competence Q4 51
Courtesy Q5 56
Credibility Q6 69
Security Q7 68
244 6.1
Assurance

43 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Access Q8 49
Communication Q9 49
Understanding Q 10 43
141 4.7
Overall SERVQUAL
Rating 5.34
SERVQUAL Rating of Kapoor Auto Service Station
Table 9

SERVQUAL Rating for Kapoor Auto Service Station


Chart 5

From the above data one can understand the following points:

• The outlets score low in appearance and outlooks.

• Reliability among its customer about quality of products and transactional clarity of

this outlet are very poor.

• Response to a customer queries are very unappreciable.

• This outlet is not very good in attending individual customer needs too.

• Communication with is customer is not definitely appreciable.

Image Filling Station, Mayur Vihar Phase – 1, New Delhi:

Name of Retail Outlets Image Filling Station


Grand SRVQUAL
Sub Total Total Rating
SERVQUAL
Dimensions Question No.
Tangibles Q1 61 61 6.1
Reliability Q2 53 53 5.3
Responsiveness Q3 58 58 5.8
Empathy
Competence Q4 55
Courtesy Q5 61
Credibility Q6 70
Security Q7 70
44 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
256 6.4
Assurance
Access Q8 51
Communication Q9 41
Understanding Q 10 42
134 4.47
Overall SERVQUAL
Rating 5.614
SERVQUAL Rating of Image Filling Station
Table 10

SERVQUAL Comparison of Image Filling Station with IOCL


Chart 6

The above data are describes the following points:

• This outlets appearances and outlook is highly appreciable.

• But its reliability among its customer is not strong enough.

• This outlet is very good to meet the customer queries.

• And also able to understand individual customer attention promptly.

• But the communication with its customer is not appreciable.

Kyber Service Station, Motibagh, New Delhi:

Name of Retail Outlets Kyber Service Station

45 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Grand SRVQUAL
Sub Total Total Rating
SERVQUAL
Dimensions Question No.
Tangibles Q1 57 57 5.7
Reliability Q2 63 63 6.3
Responsiveness Q3 59 59 5.9
Empathy
Competence Q4 55
Courtesy Q5 58
Credibility Q6 67
Security Q7 68
248 6.2
Assurance
Access Q8 58
Communication Q9 47
Understanding Q 10 53
158 5.27
Overall SERVQUAL
Rating 5.874
SERVQUAL Rating of Kyber Service Station
Table 11

SERVQUAL Comparison of Kyber Service Station with IOCL


Chart 7

Forms above data the understanding are like following:

• Though the appearance of the outlet is not able to perceived quality of IOCL but

could be excused.

• The reliability of this outlet is very high, which is highly commendable job.

• It is also very good to provide prompt response its customer.

• They are also good to provide individual customer attention.

• On their individual effort they are able to communicate with customers about IOCL’s

different promotions and products,

46 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Kutub Service Station, Mehroli Road, New Delhi:

Name of Retail Outlets Kutub Service Station


Grand SRVQUAL
Sub Total Total Rating
SERVQUAL
Dimensions Question No.
Tangibles Q1 59 59 5.9
Reliability Q2 57 57 5.7
Responsiveness Q3 58 58 5.8
Empathy
Competence Q4 53
Courtesy Q5 58
Credibility Q6 67
Security Q7 67
245 6.13
Assurance
Access Q8 59
Communication Q9 49
Understanding Q 10 51
159 5.3
Overall SERVQUAL
Rating 5.766
SERVQUAL Rating of Kutub Service Station
Table 12

SERVQUAL Comparison of Kutub Service Station with IOCL


Chart 8

With the help of above data the following conclusion could be arrived:

• The outlet is good in appearances and outlooks.

• It is also able to meet the reliability among its customer according to perceived scale.

• This outlet is good in responding to its customer queries.

• But it is lacking to understand the necessity of providing individual customer

attention.

47 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
• At the same time, it is able to communicate its customer about IOPCL product lines

and other promotional activity.

Raj Kumar Service Station, IIT Crossing, New Delhi:

Name of Retail Outlets Raj Kumar Service Station


Grand SRVQUAL
Sub Total Total Rating
SERVQUAL
Dimensions Question No.
Tangibles Q1 58 58 5.8
Reliability Q2 54 54 5.4
Responsiveness Q3 56 56 5.4
Empathy
Competence Q4 53
Courtesy Q5 58
Credibility Q6 67
Security Q7 68
246 6.15
Assurance
Access Q8 52
Communication Q9 49
Understanding Q 10 42
143 4.77
Overall SERVQUAL 5.504
Rating
SERVQUAL Rating of Raj Kumar Super Service Station
Table 13

SERVQUAL Comparison of Raj Kumar Service Station with IOCL


Chart 9

48 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
The above data are implies that:

• This outlet is able to meet the perceived quality of IOCL about the appearance and

outlook of an outlet.

• But its reliability among its customer is low.

• It is not able to response its customer queries that promptly.

• It is not able to meet the perceived standards of customer interaction about the IOCL

products and promotions.

S. Vidhya, Dwarka Sector 3, New Delhi:

Name of Retail Outlets S. Vidhya


Grand SRVQUAL
Sub Total Total Rating
SERVQUAL
Dimensions Question No.
Tangibles Q1 56 56 5.6
Reliability Q2 52 52 5.2
Responsiveness Q3 56 56 5.6
Empathy
Competence Q4 50
Courtesy Q5 59
Credibility Q6 65
Security Q7 67
241 6.03
Assurance
Access Q8 51
Communication Q9 43
Understanding Q 10 46
140 4.67
Overall SERVQUAL
Rating 5.42
SERVQUAL Rating of S. Vidhya
Table 14

49 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
SERVQUAL Comparison of S. Vidhya with IOCL
Chart 10

Above data provides the following understandings:

• Appearance and outlook of this outlet is not acceptable according to perceived

standard.

• Realiablity is seriously low of this outlet among its customer.

• Though it is not able to meet the perceived quality of responding a customer queries

but almost touched the bar.

• Again to provide individual customer attention it fails.

• And it is also not able to make communication with its customer about IOCL

products and promotions.

Indian Oil Corporation Limited, Retail Outlets, New Delhi:

IOCL
Grand SRVQUAL
Sub Total Total Rating
SERVQUAL
Dimensions Question No.
Tangibles Q1 575 575 5.75
Reliability Q2 563 563 5.63
Responsiveness Q3 563 563 5.63
Empathy
Competence Q4 527
Courtesy Q5 589

50 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Credibility Q6 675
Security Q7 676
2467 6.17
Assurance
Access Q8 534
Communication Q9 477
Understanding Q 10 469
1480 4.93
Overall SERVQUAL 5.62
Rating
SERVQUAL Rating of Indian Oil Corporation Limited
Table 15

The above data has been accumulated by compiling the all 10 different retail outlets data,

which has been done by taking Mean Average of all the 10 retail outlets SERVQUAL

Rating.

This average rating we took as the Perceived Standard of Quality.

11.Recommendations

After analysing the 10 Samples of Retail outlets of Indian Oil Corporation limited from

above research findings those outlets could be categorised three of following headings. This

three types of outlets could be performed better when the appropriate measures are taken.

Acceptable Moderately Acceptable Non Acceptable


• Kyber Service Station • Image Filling Station • S. Vidhya
51 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
• Kutub Service Station • Millennium Petro Care • 100 %

• Raj Super Service • Jai Garur Service • Kapoor Auto Service

Centre Centre Centre

• Raj Kumar Super

Service Station
Recommended Categorisation of IOCL Retail Outlets
Table16
The recommendation goes like:

Acceptable:

1. Identification of the reasons for their weaknesses. (Italic points of each outlets of this

category, mentioned in Research Findings).

2. Rectification of weak points only.

3. Regular monitoring is preferable rather than supervision.

4. Regular discussion of day to day operational problems with the owner, to find out

mutual solutions to overcome those problems.

5. Encourage them to perform better each time better than previous. Rewards and

Recognitions should have provided on regular basis.

Moderately Acceptable:

1. Identifications of root problems about their weak points.

2. Identifications of reasons of their strong points.

3. Design a Performance Improvement Plan with the consultation of the concerned retail

outlets owners.

4. Make them understand their part of benefit for implementation of those plans.

52 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
5. Regular Monitoring on their operation as well as Supervision on the implementation

of those plans recommended.

6. On the successful implementation of those plans, the outlets must be give

recognitions and if possible encouragement rewards could be given.

Non Acceptable:

1. The outlets should be asked for the reasons of their poor performances in written

form.

2. Visit of IOCL experts at those outlets to identify the reasons for their poor

performances and checking against their concerned written show – causes submitted

to the officials.

3. A thorough Root Cause Analysis should take place after a discussion with those

outlets owners.

4. A Performance Development Plan should prepared by the experts of IOCL.

5. Those outlets must take under Direct Supervision of IOCL authority for effective

implementation of above plan. For that an Expert panel are highly recommended for

directing the strict supervision on those outlets.

6. Rewards and Recognition are appreciable for those outlets who all will able to

implement their concerned performance development plan successfully, at the same

time strict measures are highly recommended for those outlet who all will not able to

do so.

53 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
The recommendations given in tabular format on the next page were made with reference to

the previous analysis and, in an attempt to be realistic. As a consequence, the

recommendations focussed upon practical actions, which did not require massive

commitment of additional resources. A time frame for achievement was not given in this

instance but all were to be achieved within one year. Provision of milestones for

achievement is to be recommended.

Objective Action Measure of Achievement

To help close Gap 1


Develop and extend existing Action notes prepared, to
(Not knowing what channels for consultation inform strategic planning
customers expect) with customers processes

Develop a greater Conduct survey to establish


understanding of customer relative importance of Survey completed. Results
expectations of services various aspects of service used to inform development
and current levels of of Departmental Plan and
satisfaction Service Provision Statement.
Resources moved to priority
areas.

To help close Gap 2


Involve “front-line” staff in Changes reported in annual
(Not selecting appropriate review and amendment of Review Report
service designs/standards) procedures and processes

Develop procedures and Develop practice for positive Practice written and included
processes which are customer logging and management of in current “Registry Facts”
focussed complaints guidelines and procedures
handbook.

To help close Gap 3


Devise and implement Posts established, advertised
(Not delivering to service training plan for all new and filled. Proportion of
standards) members of staff, to increase negative comments on
levels of equity/constancy queues and waiting time
and promote good personnel reduced.
encounters for customers
Training plan included in
Improve service delivery Implement programme to induction pack and progress
systems upgrade assessed and reviewed by
“SERVICESCAPES” on line manager

54 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
long-term basis

Plans prepared and costed.


Work completed on a rolling
programme
To help close Gap 4
Develop and operate Service Service Provision Statement
(Not matching Provision Statement promulgated. Relevant
performance to promises) aspects incorporated at points
of different activity
Improve external
communications to
customers – to match
promises
Recommendations for Closing GAPs
Table 17

After conducting this extensive study one can understand from the research findings that

Indian oil must give importance to close the Gap 4 as from research it has been seen that

communication between company and its customer score lowest among any other dimension

of SERVQUAL.

55 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
12.Conclusion:

As a business grow larger and as management becomes more remote from the market place,

marketing management has to rely more heavily on marketing research as a managerial tool

in solving any problem in the field of marketing. Beginning and end of marketing is

marketing research.

Marketing research may be defined as the scientific and controlled process of gathering of

non-routine marketing information helping management to solve marketing problems

marketing research concentrates on the study of product, planning and development, pricing

policies, effectiveness of personal selling, advertising and sales promotion, distribution

structure, market competition, buyer behaviour etc

After the evaluation and findings some important suggestion are revealed to the company.

• Indian Oil Corporation Limited must make particular guideline for the construction of

any retail outlet for uniform appearance of the outlets.

• Indian Oil Corporation Limited must take into serious consideration to train retail

outlets ‘frontline staff’ to deliver uniform services.

• Indian Oil Corporation must improve its advertisement to the products and features in

detail.

• Indian Oil Corporation Limited should develop a regular uniform monitoring system

to evaluate its retail outlets service performances over the nation.

After the evaluation, the information is revealed that the most of the users are unaware of the

products and its features.

56 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
It is to be noted that, the people who are aware of the product and its feature are mostly

satisfied with the performance of the products.

57 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
Corporation Limited
Bibliography

1. Philip Kotler and Kevin Lane Keller 2008 Marketing Management. Delhi: Pearson

education.

2. Malhotra K Naresh 2009 Marketing Research, Delhi: Pearson Education.

3. Zeithaml V and Bitner M 1996 Service Marketing, McGraw Hill International

Editions.

4. Hallas November 21st , 2005, American University Association.

5. About Indian Oil Corporation Limited, www.iocl.com as accessed on July 14th , 2010.

6. About Indian Oil Corporation Market Position, www.petroindia.com as accessed on

July 21st, 2010.

7. Annual Report 2009, Indian Oil Corporation Limited.

8. Various Information Brochures 2009 -10, Indian Oil Corporation Limited

58 Analyzing the Parameters Leading to Customer Delight at Indian Oil Retail Outlets | Indian Oil
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