Indian oil

INDIAN OIL CORPORATION LIMITED

2 | P a g e
NAME - Siddharth Gupta
ROLL NO - 107
ROOM NO – 13
SPECIALIZATION - MarketingManagement 3rd
Year
B. Com. (Morning)
INTERNAL GUIDE – Prof. T. Sengupta (HOD) Management
St. Xavier’s College (Autonomous)
EXTERNAL GUIDE - Mr. S. Paladhi, Chief Manager (PPES)
Indian Oil Corporation Limited
INTERNSHIPTOPIC - A case study on the sales of branded
Gasoline, Motor spirit (MS) and Xtra
Premium (XP)

3 | P a g e
Table of Contents:
SL NO. TOPIC PAGE NO.
1 Acknowledgement 4
2 Introduction 5-14
Company Profile 6-10
Objectives and Obligation 11-12
Vision and Values 13-14
3 Objectives of the study 15
4 Limitations of the study 16
5 Research and Methodology 17-20
Tools and Techniques 18
Plan of Analysis 19
Research Design 20
6 Literature Review 21-25
7 Summary Findings 26-33
Findings 26-29
SWOT Analysis 30
Data Interpretation 31-33
8 Conclusion 34
9 Annexure 35-38
10 Bibliography 39
11 Thank You 40

4 | P a g e
ACKNOWLEDGEMENT
When I began my journey, I faintly knew what remained in store for me in future.
But today, I feel indebted to PROF. T. SENGUPTA (HOD) MANAGEMENT B.COM
DEPT. ST. XAVIER’S COLLEGE (AUTONOMOUS) for allowing me to undertake my
projectand for constantly supervising, guiding and supporting me throughout my
project.
I would like to thank Mr. S. Paladhi, Chief Manager (Pricing, Planning & Economic
Studies) of Indian Oil Corporation Limited Marketing Division for facilitating this
scope to be a part of a prestigious organization and allowing me to do my project
work.
I would also like to thank Mr. Sanjay Kumar Singh, Manager (Hindi
Implementation) and Mr. Sudip Dey, Manager (Retail Sales: 24 Pgs South) for
their able guidance, which facilitated me to gather extensive knowledge, provide
me a scope for learning and accumulate vivid experiences.
I would also like to thank the owners of the different Retail Outlets (RO’s) for
letting me do my survey and answering to all my queries.
Last but not the least I take this opportunity to thank my parents for their
constant support, inspiration and help.

5 | P a g e
INTRODUCTION
In the era of competitive business, business or organization strategy may be
defined as the attempt by those who control the organization to find ways to
position their business or organization objectiveness that they can exploit the
planning environment & maximize the future use of capital and human assets.
This project report compromise of company profile, research and methodology,
data collection, analysis and findings, recommendation, limitation of the study, etc.
For this project, I did a survey with the customers in the Retail Outlets. After
collecting the data, it was analyzed and then concluded. According to loopholes and
back logs, I was able to give some suggestions to the Office.
INDIAN OIL CORPORATION LIMITED (INDIAN OIL) is the largest public
sector unit in India under the Ministry of Petroleum. It is engaged in the business of
refining of crude petroleum and marketing of various finished petroleum goods like
fuels, lubricants, etc. Being an essential requirement for country’s economic
progress, it was given a lot of importance and stress by the Government of India,
to expand and cater the needs for various petroleum products of the country and
play a leading role in the energy sector. The company has expanded for decades.
History of Oil industry in India
?? IInn 11886666,, ooiill wwaass ddiissccoovveerreedd bbyy MMrr.. GGoooodd EEnnoouugghh ooff MMcckkiilllloopp
SStteewwaarrtt CCoo.. aatt NNaahhaarrppuunngg nneeaarr DDiiggbbooii..
?? TThhiiss wwaass oonnllyy sseevveenn yyeeaarrss aafftteerr CCooll.. DDrraakkee ddiissccoovveerreedd ooiill iinn
PPeennnnssyyllvvaanniiaa,, UUSSAA iinn 11885599..
?? IInn 11888899,, tthhee ffiirrsstt OOiill WWeellll wwaass ssppootttteedd iinn DDiiggbbooii bbyy AAssssaamm
RRaaiillwwaayy && TTrraaddiinngg CCoo..
?? IInn 11990011,, tthhee ffiirrsstt RReeffiinneerryy wwaass sseett uupp aatt DDiiggbbooii..
?? IInn 11995566,, OONNGGCC wwaass sseett uupp..
?? IInn 11995588,, IInnddiiaann RReeffiinneerriieess LLttdd.. wwaass ffoorrmmeedd..
?? IInn 11995599,, IInnddiiaann OOiill CCoommppaannyy wwaass ffoorrmmeedd..
‫ﻬ‬ IInn 11995599,, OOiill IInnddiiaa LLttdd.. wwaass sseett uupp..

6 | P a g e
COMPANY PROFILE
IOC is the country’s largest commercial enterprise, with a sales turnover of
Rs. 1, 30,203 crore (US $29.80 billion and profits of Rs. 7,005 crore (US$
1.603 million) for fiscal year 2003-2004.
CorporateHistory
Indian Refineries Ltd.
11995588
Indian Oil Corporation Ltd. 11996644
Indian Oil Company Ltd. 11995599
MMeerrggeerr

7 | P a g e
Indian Oil Blending Limited (IOBL) was formed in 1974 for lube blending.
It has since been merged with Indian Oil in May, 2006
(
SUBSIDIARIES
BBoonnggaaiiggaaoonn RReeffiinneerryy && PPeettrroocchheemmiiccaallss LLttdd ((MMeerrggeerr pprroocceessss iinniittiiaatteedd))
IIBBPP CCoo.. LLttdd..
IInnddiiaann OOiill TTeecchhnnoollooggiieess LLttdd.. **
OOvveerrsseeaass
IInnddiiaann OOiill MMaauurriittiiuuss LLttdd.. **
IIOOCC MMiiddddllee EEaasstt FFZZEE **LLaannkkaa IIOOCC LLttdd..

8 | P a g e
Upstream Regulatory Framework
 Presently the Government performs regulatory functions of the
Upstream through Director General of Hydrocarbon (DGH)
 Key Functions of DGH
 Monitors health of reservoirs and safety aspects and represents
Government in the monitoring of Production Sharing Contracts
(PSCs)
 Monitors licenses granted by the Government
 Carves out exploration blocks for licensing rounds
 Data to gather information about unexplored/poorly explored areas
Downstream Policy
Refining
 Administered Pricing Mechanism (APM) dismantled for refineries in
April 1998
 Setting up of refineries de-licensed in June 1998
 Refineries may be set up subject to meeting statutory requirements
 Petroleum Pipelines
 Encourage setting up of pipelines
 No license required
 Government assists in getting Right of Use (ROU) in land for laying
pipelines

9 | P a g e
Marketing Refining Research &
Development Pipeline
Transportation
IOC is the country’s largest commercial enterprise, with a sales turnover of Rs.1,
30,203 crore (US $29.80 billion and profits of Rs. 7,005 crore (US$ 1,603miollion)
for fiscal year 2003-2004.
INTERNATIONAL RANKINGS
Indian Oil is the India’s No.1 Company in Fortune’s prestigious listing of the
world’s 500 largest corporations; ranked 135 for the year 2007 based on fiscal
2006 performances. It is also the 20th largest petroleum company in the world.
Indian Oil has been adjudged No.1 in petroleum trading among the 15 national oil
companies in the Asia-Pacific region and IOCL was featured on the Forbes Global
2000 list for 2005 at position 311.
Downstream Operations

10 | P a g e
INDIA’S FLAGSHIP NATIONAL OIL COMPANY
Indian Oil Corporation is India’s largest commercial enterprise which began
operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was
formed in 1964, with the merger of Indian Refineries Ltd. (Estd.1958). Currently its
head office/registered office are in Mumbai. At the time of formation of Indian Oil
Corporation Ltd., the authorized capital of the Indian Refineries Ltd. was Rs. 60
crore and that of Indian Oil Corporation Ltd. was Rs.12 crore.
Marketing Division
During 2005-06, Indian Oil retained its position as a market leader despite stiff
competition. It continued its thrust on several initiatives that were directed to
deliver customer delight. Given below is a list of products that are marketed
through Marketing Division. Servo is India’s largest selling lubricant brand. It is
developed exclusively at Indian Oil’s world-class R&D Centre at Faridabad. It is sold
through 8,100 Indian Oil petrol/diesel stations and over 1,300 Servo shops.
 Aviation Turbine Fuel
 Indian Oil’s LPG brand Autogas is the leader in the segment
 Super Kerosene Oil
Indane LPGas – Indian Oil Indane LPGas is used in 40 Million homes as cooking fuel
and commands over 48% market share in India.
Premium Fuels- Xtra premium- It was launched in 2002, the premium auto fuels
Xtra Premium and Xtra Mile mark a new beginning for Indian Oil and offer a new
genre of convenience and enhanced comfort for the customer.

11 | P a g e
OBJECTIVES AND OBLIGATIONS
OBJECTIVES:
 To serve the national interests in oil and related sectors in accordance and
consistent with Government policies.
 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 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 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 venture.

12 | P a g e
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 recognized 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.
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.

13 | P a g e
VISION AND VALUES
VISION
A major, diversified, transactional, integrated energy company, with national
leadership and a strong environmentconscience, playing a national role in oil
security and public distribution

14 | P a g e
VALUES
Indian Oil nurtures the core values of Care, Innovation, Passion and Trust across
the organization in order to deliver value to its stakeholders.

15 | P a g e
OBJECTIVES OF THE STUDY
In the year 1996, Indian OilCorporation becamethe firstIndian company to debut
to the ‘Fortune 500’ listing. Ranked 257 then, it has since moved up to 105 in
2009. India's single largest commercial enterprise with turnover of Rs. 2, 20, 779
crore (US$ 51 Billion) for 2006-2007. It covers the entire petroleum value chain
from exploration, refining, marketing, pipelines, petrochemicals, gas to global
operations.
Such a success stands as a proof of its highly productive work force. But in order
to retain this position in the future, every employee has to be kept enthusiastic,
motivated and excited about their job. Thus, this study is conducted in IOC
(Marketing Division), Eastern Region, to get an insight about how effective is the
company in dealing with its people and keeping them satisfied.
The main objectives of this study are:
This project report compromise of
 CUSTOMERS VIEWS ON PRESENT PRICE DIFFERENCE BETWEEN MS AND XP.
 STRENGTH IN THE BRANDED MS WHICH MAKES THE CUSTOMER USE THE
SAME.
 STUDY ON THE POSITIONING OF XP IN RO’S.
 PROFILE OF XP USERS.
 THE INCENTIVE STRATEGY FOR XP USERS.
 SYNERGY BETWEEN XTRAPREMIUM AND XTRAREWARD PROGRAMME.
For this project, I had personally interviewed the customers in
different Retail Outlets (RO’s) across Kolkata. After collecting the data, I had
analyzed all these and then concluded.

16 | P a g e
LIMITATIONS:-
Though much effort was made to make this project work a success, some limiting
factors always remained in the way.
The main limitations that were found are as follows:
 The project covered various retail outlets across the city. Hence, I had to go
to every retail outlet given to me for doing the survey.
 Time being major constraints, all the retail outlets could not be targeted
and sampling technique had to be used.
 Some customers refused to answer and give views to fill the questionnaire.
 I had to introduce myself and ask the customers for their feedback within
the stipulated time in which their vehicles were getting filled which was a
major drawback.
 There was only very few open ended questions but due to work pressure
and reluctance, many customers did not give proper suggestion and
feedback.
 The answers received were based on respondents perception or
understanding of the question.
 Some of the respondents were far from being specific and gave very
general answers.
 Some customers thought of me being a salesman of a product and did not
even care to listen.

17 | P a g e
RESEARCH AND METHODOLOGY
RESEARCH
 Research means analyzing, gathering, processing and interpreting data.
 The process of systematically acquiring data to answer a question or to
solve a problem.
 It also means intelligent and cogently communicating the results in a report
that discovers what was discovered from the research.
METHODOLOGY
Methodology means selecting research method, sample and procedures
Various steps involved in research methodology:
 Research objective and question should be known.
 Planning a research design
 Selecting research method
 Selection of sampling procedure
 Data collection
 Coding and editing of data
 Generation and interpretation
 Report writing
RESEARCH TYPE:-
Quantitative- Quantitative research is descriptive and provides hard data
on the numbers of people exhibiting certain behaviors, attitude, etc.
Gathering numerical information that can be analyzed statistically through
surveys. Theaim is to classify features, countthem, and construct statistical
models in an attempt to explain what is observed. Data is in the form of
numbers and statistics. Quantitative data is more efficient, able to test
hypothesis, but may miss contextual detail.

18 | P a g e
Qualitative- Gathering descriptive information, usually representing verbal
or narrative data through open-ended interviews or focus groups. The aim
is complete detailed description. Data collected is in the form of words,
pictures or objects. Qualitative data is more rich, time consuming, and less
generalized in nature.
Basic research- Here I expanded the boundaries or knowledge itself to verify the
acceptability of a given theory.
Field work- I went to the Retail Outlets and personally met the concerned
persons to gather the information through questionnaires and personal
discussion with the customers.
TOOLS & TECHNIQUES:-
Research Instrument
Data collection method- Interview and Questionnaire Survey
Sources of data-
Primary Research-Primary Research is the process of gathering
information directly from individuals who have access to it .Questionnaire,
Interviews, Survey Methods.
Secondary Research- A secondary data research project involves the gathering
and/or use of existing data for purposes other than those for which they were
originally collected. These secondary data may be obtained from many sources,
including literature, industry surveys, compilations from computerized databases
and information systems, and computerized or mathematical models of
environmental processes .Books, Journals,Manuals, Magazines, Websites, and HR
Hand Book.
The information about the profile of the company has been collected
through internet from the website.viz. www.iocl.co.in

19 | P a g e
PLAN OF ANALYSIS
The data obtained from questionnaire and interviews were summed up.
Quantitative analysis was carried out for each of the questions asked. Percentage
distributions of absolute values were also done at the same time. The results
were represented by pie charts and column charts for comparisons and further
understanding. Next followed Qualitative analysis, which was derived out of the
quantified results. This was also done with the help of observations, experts’
view, etc. and finally conclusions and recommendation are made for further
betterment of the company.
Discussion-I got the information through personal discussion.
Pilot survey- I collected information by asking a set of questions in a proper
sequence in a questionnaire to a sample of individuals drawn so as to represent
the whole population.
QESTIONNAIRES: - Both open and closed ended questionnaires had been
circulated to the customers.
a) Open Ended Questions- Open-ended questions are those questions that
will solicit additional information from the inquirer. Sometimes called
infinite response or unsaturated type questions. By definition, they are
broad and require more than one or two word responses.
b) Close Ended Questions- Closed ended questions are those questions, which
can be answered finitely by either ‘yes’ or ‘no’ also known as dichotomous
or saturated type questions. Closed-ended questions can include
presuming, probing or leading questions. By definition, these questions are
restrictive and can be answered in a few words.

20 | P a g e
RESEARCH DESIGN
Sampling Design:
o Total strength of customers: - 152
o Sampling Size- 100
o Sampling Types- Customers coming to different RO’s (Retail Outlets)
METHODOLOGY PROCESS MAP
Purpose of Study
Literature Review
Environmental Scan
Preparation of Questionnaire
Questionnaire Survey
Analysis
Suggestions

21 | P a g e
LITERATURE REVIEW:-
A literature review is an account of what has been published on a topic by
accredited scholars and researchers, but more often it is part of the introduction
to an essay, research report, or thesis. In writing the literature review, the main
purpose is to convey to your reader what knowledge and ideas have been
established on a topic, and what their strengths and weaknesses are. As a piece of
writing, the literature review must be defined by a guiding concept (e.g. research
objective, the problem or issue you are discussing or your argumentative thesis).
It is not just a descriptive list of the material available or a set of summaries.
PRESS RELEASESON MOTOR SPIRIT (MS)PRICES:-
I. New Delhi, March 15, 2013
Indian Oil Corporation Ltd. has decided to reduce the retail selling prices of Petrol
w.e.f. midnight of 15th/16th March'13 by Rs. 2.00/ litre (excluding VAT).
The Prices of Petrol were increased by Rs.1.40/litre(excl VAT) w.e.f. 2nd
March'13. Sincelast price change, international prices of crude oil haveslid from
USD 112.73/bblto USD 107.41/bblleading to consequential fall in international
prices of MS. On the other hand, Rupee has depreciated marginally. Following this
trend, it has been decided to pass on the benefit to the customers and
accordingly the aforesaid reduction in the retail selling price of Petrol is being
affected. Itmay be noted that the Corporation has already lost over Rs. 500 Crore
(OMCs Rs. 1130 Crore) on sale of petrol so far during the current financial year.
In addition to losses on sale of petrol, OMCs are suffering under-recovery on sale
of HSD (Retail) of Rs. 8.64, SKO (PDS) of Rs.33.43/litre& LPG (Dom) of
Rs.439.00/cyl. Projected under-recovery of theCorporation on three sensitive
products is expected to be around Rs.86500 croreand of the Industry around
Rs.163000 croreduring currentyear.

22 | P a g e
The movement in international oil prices and INR-USD exchangerate is being
monitored and decision on future price changes shall be taken accordingly.
The details of existing and revised selling prices of Petrol for metros are given
below:
NewDelhi Mumbai Chennai Kolkata Hyderabad Bengaluru
ProposedRSP Rs/litre 68.34 75.14 71.41 75.84 74.59 75.26
Current RSP Rs/litre 70.74 77.66 73.95 78.34 77.21 77.88
Decrease Rs/litre -2.40 -2.52 -2.54 -2.50 -2.62 -2.62
II. New Delhi, November 15, 2012
Presently, the international oil prices are relatively stable. However, there has
been significant volatility in the INR-USD exchange rate and is currently very weak
with uncertainty about its future direction. The trends in the international oil
market and INR-USD exchangerate are being closely monitored and the same
shall be reflected in future price changes.
Itmay be noted that Oil Marketing Companies are bearing the burden of a loss of
over Rs 2000 croreapproximately on sale of MS during April-September12 dueto
inability to change retail selling prices to the desired extent in line with market
conditions.
As is known, in addition to loss on sale of MS, OMCs are also suffering under-
recovery on sale of three sensitivepetroleum products, namely HSD
(Rs.9.84/litre), SKO(PDS) (Rs.31.30/litre) & LPG (Dom) (Rs.478.50/cyl). Projected
under-recovery on theseproducts is expected to cross Rs.160000crorefor the
currentyear.
NewDelhi Mumbai Chennai Kolkata Hyderabad Bengaluru
ProposedRSP ' /litre 67.24 73.53 70.57 74.55 73.73 74.22
Current RSP ' /litre 68.19 74.73 71.77 75.74 74.98 75.47
Decrease ' /litre (0.95) (1.20) (1.20) (1.19) (1.25) (1.25)

23 | P a g e
III. New Delhi, October 08, 2012
Ithas been decided to revisethe MS prices downward by Rs. 0.56 per litre
(excluding State levies in Delhi) w.e.f. 9th Oct’12.
Presently, the INR-USD exchangerate has shown an appreciating trend. The
international oil prices, however, continue to remain firm casting their shadow on
MS prices. There has been significantvolatility in InternationalOil prices and INR-
USD exchange rate. The trends in the international oil market and INR-USD
exchange rate shall be closely monitored and the same shall be reflected in future
price changes.
Itmay be noted that Oil Marketing Companies have incurred a loss of Rs 2600
croreapproximately on sale of MS during April-September’12 dueto inability to
change retail selling prices to the desired extent in line with market conditions.
As is known, in addition to loss on sale of MS, OMCs are also suffering under-
recovery on sale of three sensitivepetroleum products, namely HSD
(Rs.11.65/litre), SKO(PDS) (Rs.33.93/litre) & LPG (Dom) (Rs.468.50/cyl). Projected
under-recovery on theseproducts is expected to cross Rs.160000crorefor the
currentyear.
IV. New Delhi, July 25, 2012
The Government of India vide its notification No.P-20029/18/2001-PP dated 16th
January , 2003, notified "The IrrecoverableTaxes Compensation Scheme", 2002 to
compensate the oil companies for irrecoverable state taxes to facilitate smooth
transition from the administered pricing regime to the market determined pricing
scheme.
The scheme provided for compensation to Oil marketing and Refining companies
in respect of irrecoverable state taxes levied by the States/ local authorities such
as Entry Tax on Crude, Surcharge on sales tax, CST/Purchase tax on intercompany
sales of petroleum products and any other irrecoverable taxes. The compensation
was set off with the amount being collected by OMCs through the consumer
selling price under the head 'State Surcharge' for the period 2002-03. The 'state
surcharge' element in the price build up ensured that the incidence of any

24 | P a g e
irrecoverable tax of the particular state was recovered from the respective state.
The rate of 'State Surcharge' has remained unchanged since then.
Over the last several years, oil companies have been suffering increasing level of
under-recoveries on account of irrecoverable taxes because of following reasons:
 New irrecoverable levies by State Governments
 Changes in State tax structures, etc
 Steep increase in the prices of crude oil and petroleum products in the
international markets and consequential increase on the taxes
 Increasein Retail Selling Prices of the petroleum Products and
consequential increaseof the taxes
As a resultof the abovementioned factors, the irrecoverabletaxes have
undergonereduction in some states and increase in others. Thus, there was a
need to review the said scheme to make the levy rational on a state-to-state basis
to reflect reduction in prices in states where the irrecoverabletaxes have
undergonedecrease and effect increasein prices in states where the said taxes
have been increased as well as to reduce the burden of the OMCs on account of
irrecoverabletaxes. Accordingly it has been decided to implement the revised
structureof 'state specific cost(SSC)'to cover the irrecoverabletaxes w.e.f.
midnight of 24/25 July, 2012. As a result of the said revision MS Prices shall stand
reduced in 11 State and shall stand increased in 7 States.
The Impactof the revision (excluding state levies) in someof the states is given in
the table below:
Price Decrease: Price Increase:
State MS Rs/ litre
Karnataka 1.06
Goa 0.82
Gujarat 0.81
Jharkhand 0.55
Tamil Nadu 0.76
WestBengal -
Odisha 0.52
State MS Rs/ litre
Assam 2.13
Bihar 0.80
WestBengal 2.02
Maharashtra 0.72

25 | P a g e
V. New Delhi, November 15, 2011
The Motor Spirit (MS) prices were de-regulated by Governmentof India w.e.f.
25.06.2010. Sincethen, OMCs including Indian Oil have the freedom to fix the MS
prices. In the current year (2011-12), as a resultof rising international MS prices,
IndianOilhas revised MS prices upward by Rs.4.17 per litre on 15th May’11,
Rs.2.62 per litre on 16th Sept’11 and Rs.1.50 per litre on 4th Nov’11.
IndianOilreviews the MS prices on fortnightly basis and based on the review, fixes
the MS prices for the next fortnight. In keeping with this practice, IndianOilhas
reviewed the pricing cycle as prevalent in the last fortnight. The review reveals
that at the current prices, there will be an over-recovery of Rs.1.85per litre. It
has, therefore, been decided to revisethe MS prices downward by Rs.1.85
(excluding State taxes and levies) w.e.f. 16th Nov.’11.
The reduction has been possibleas a resultof favorableimpact of slide down both
in the international prices of MS and in the Rupee / Dollar parity. The Rupee /
Dollar exchange rate which had moved high in the second fortnightof Oct’11
came down marginally and remained moreor less stable in the vicinity of Rs.49.30
per USD in the relevant firstfortnight of Nov’11. Itmay be noted that the rupee
has suffered significant depreciation yesterday and today. If the Rupee / Dollar
parity remains at this level or moves further away, its impact would get reflected
in the next pricing cycle. The relevant pricing cycle applicable for the fortnight
beginning 16th Nov’11 has thereforeremained free from any major disturbance
in the Rupee /Dollar parity.
With the aboverevision, there will be no under / over recovery on MS prices
during the fortnightbeginning 16th Nov’11.Theprojected total under-recovery of
IndianOilfor 2011-12 (excluding MS) is estimated to be over Rs.71, 000 croreand
for OMCs together at a level of Rs.1, 30,000crore.
The information about the Press Release of the company has been
collected from the official website of Indian Oil Corp. viz.www.iocl.co.in

26 | P a g e
SUMMARY FINDINGS:
The most common point of contact of customers with Oil Industry is Petrol Pump.
In Oil Industry parlance, Petrol Pumps are referred to as Retail Outlets (ROs).
As per the existing Government policy, Petrol Pumps can be set up by Public
Sector Oil Companies dealing in storageand distribution of petroleum products as
per guidelines. Presently the Oil Companies engaged in retail business of
automotive are IOC, HPC, BPC, MRPL, ONGC, RIL, ESSAR and SHELL.
MOTOR SPIRIT (MS)
Petrol in technical language is called Motor Spirit. It is mainly used in passenger
vehicles such as Two/Three Wheelers and Cars. At present, two types of petrol
are being marketed across the country i.e. Normal Petrol and Branded Petrol.
 Normal Petrol- Normally used as a fuel for spark ignition internal
combustion engines such as Passenger Cars, Two Wheelers, Three
Wheelers, etc.
 Branded Petrol- This is preferred by new generation vehicles. It is slightly
costlier than normal petrol. It has additives for optimizing performance of
vehicles. It is sold by IOCL with the brand name “Xtra Premium”. Xtra
Premium provides benefits like cleaning and prevention of carbon deposits,
smooth drivability and reduced smoke/emissions.

27 | P a g e
XTRA PREMIUM
Xtra Premium petrol is a much sought-after fuel among discerning motorists who
are in many ways emotionally attached to their wheels.
The “Clean and Keep Clean” function of the super cleanser additive in Xtra
Premium reduces deposits to maintain “like new” performance of the vehicle.
Regular use of Xtra Premium gives the vehicle a superior pick-up, smoother drive,
better mileage and lower emission. Xtra Premium is designed not only to optimize
performance of new generation vehicles but also rejuvenate old vehicle to
perform better.
Little wonder, Indian Oil’sXtra Premium petrolis the largestselling branded petrol
in India.
 CUSTOMERS VIEWS ON PRESENT PRICE DIFFERENCE BETWEEN MS
AND XP:-
 The price difference between MS and XP causes the main
difference in the opinion of the mass to choose any of the two
gasolines.
 According to the customers as the price of XP is more, people
tend to buy more of MS than XP.
 But as for the new generation vehicles, XP is more preferred than
MS because it gives a lot of benefits which is not provided by MS.

28 | P a g e
 STRENGTH IN THE BRANDED MS WHICH MAKES THE CUSTOMER USE
THE SAME:-
 The main reason for the use of MS by the mass is that it is less in
price than XP.
 Due to less price of MS the customers prefer MS more than XP.
 Previously MS was the only petrol available to the customers so
most of the customers have an attachment to that.
 STUDY ON THE POSITIONING OF XP IN RO’S:-
 According to the Managers of the RO’s, XP is the most suitable
petrol for the new generation vehicles.
 As it comes with various types of benefits, people are now more
interested in buying XP.
 It has additives for optimizing performance of vehicles.
 PROFILE OF XP USERS:-
 The users of XP are mostly the people who have a new generation
vehicles.
 The new generation vehicles owners opt for XP than MS due to a
number of benefits given by XP.

29 | P a g e
 THE INCENTIVE STRATEGY FOR XP USERS:-
Indian Oil XTRAPOWER Fleet Card Program -A complete fleet management
solution for Fleet Owners / Operators and Corporate. XTRAPOWER is a Smart
Card based Fleet Card Program, which facilitates cashless purchase of fuel & lubes
from designated retail outlets of Indian Oil through flexible prepaid 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.
 SYNERGY BETWEEN XTRAPREMIUM AND XTRAREWARD
PROGRAMME:-
Every time the customers fill their fleet with fuel & lubes using XTRAPOWER
fleet cards at designated retail outlets of Indian Oil, customers earn XTRA
Points. They can exchange the accumulated XTRA Points for attractive gifts
from XTRAPOWER Rewards Catalogue including free fuel & lubes. In short, the
XTRAPOWER Fleet Card Program offers not just amazing convenience &
security but also an opportunity to translate all your dreams into a reality.

30 | P a g e
SWOT ANALYSIS:-
SWOT
Strength 1. India’s largest commercial enterprise with a strong brand name
2. Has around 50% petroleum products
3. Operates 10 refineries in India
4. Huge distribution network through retailing
5. Accounts for a 47% share in the petroleum products market,
34.8% share in refining capacity and 67% downstream sector
pipelines capacity in India
6. Has over 35,000 employees
7. Loyalty programs like XTRAPOWER Fleet Card Program is aimed at
Large Fleet Operators
Weakness 1 .Legal issues
2. Employee management
3. Bureaucracy
4. Volatility in the crude market & subsidy burden
Opportunity 1. Increasing fuel/oil prices
2. Increasing natural gas market
3. More oil well discoveries
4. Expand export market
Threats 1. Government regulations
2. High Competition

31 | P a g e
DATA INTERPRETATION:-
1) TYPE OF VEHICLE
2) AMONG THE FOLLOWING COMPANIES WHO’S PETROL HAVE
YOU TRIED BEFORE
45
45
10
2 Wheeler
4 Wheeler
6 Wheeler
85%
80%
15%
75%
5% IOCL
HP
RELIANCE
BHARAT PETRO.
PARAS

32 | P a g e
3) HOW SATISFIED ARE YOU FROM THE PRODUCT OF INDIAN OIL
4) ADVANTAGES OF USING XTRA PREMIUM
3
5
7
40
45
0 10 20 30 40 50
Extremely Satisfied
Very Satisfied
neutral
Very Dissatisfied
Extremely Dissatisfied
25
12
10
7
5
9
15
10
7
Mileage/Average
quality
Smooth running
low in price
majority uses it
using it for long
better engine
eco friendly
others
0 5 10 15 20 25 30

33 | P a g e
5) RECOMMENDATION TO OTHER FRIENDS
6) HOW SATISFIED ARE YOU FROM THE PROMOTIONAL
STRATEGYADOPTEDBY INDIANOIL FOR MARKETING XTRA
PREMIUM
0 5 10 15 20 25 30 35
30
35
20
10
5
Definitely Not
Probably Not
Might/Might Not
Probably
Definitely
0
10
20
30
40
50
Extremely
Satisfied Very Satisfied
Neutral
Very
Dissatisfied Extremely
Dissatisfied
5
15
45
20
15

34 | P a g e
CONCLUSION
To conclude my project, I would like to briefly analyze all the different chapters.
The introductory chapter mainly stress on the Corporate History, Company Profile
and Objectives of the Company. The Objectives of the study mainly deals with the
purpose of doing my internship at Indian Oil Corporation. The next important
chapter is the limitation of my study which shows the difficulty that I had to face
while conducting the survey in different Retail Outlets across the city. The next
chapter would relate to the Research Methodology which stresses on the method
I took up to undertake the survey. The method which I used is mainly primary in
nature and it consists of questionnaires by visiting the various Retail Outlets. The
Summary Finding chapter is basically concerned with the key findings, SWOT
Analysis and Data Interpretation of the survey which I undertook for several Retail
Outlets.
With the help of this research, I was able to determine the consumer’s
perception about Motor Spirit and Xtra Premium petrol. This research also
enables us to understand the mind of the consumer with regard to their choice of
petrol or preferences for other companies. Thus, the interactions with the
customer have made me realize how important it is to have a close touch with the
clients.
To conclude this project, I would like to say that it is this work experience that I
would carry along with me in every walk of life. I am confident that the lessons
that I have learned through this internship will be a guiding light for my career
ahead.

35 | P a g e
ANNEXURE
SURVEY QUESTIONNAIRE
NAME-
ADDRESS-
PHONE NO-
GENDER
MALE FEMALE
1) WHICH INCOME LEVEL BEST DESCRIBES YOUR TOTAL ANNUAL HOUSEHOLD
INCOME (RS)
Under 25,000
25,000-34,999
35,000-49,999
50,000-74,999
75,000-99,999
1, 00,000-1, 19,999
Over 1, 20,000
2) WHICH OF THE FOLLOWING AGE GROUPS DO YOU FALL IN
18-24
25-34
35-44
45-49
50-54
55-64
64 OR OLD

36 | P a g e
3) TYPE OF VEHICLE YOU HAVE
2 Wheeler (scooter / motorcycle)
4 Wheeler (car)
6 Wheeler (truck)
4) DO YOU KNOW THE NAMES OF THE FOLLOWING COMPANIES
Indian Oil Corporation
Hindustan Petroleum
Reliance Petroleum Limited
Bharat Petroleum
Paras Lubricants
5) AMONG THE FOLLOWING COMPANIES WHO’S PETROL HAVE YOU TRIED
BEFORE
Indian Oil Corporation
Hindustan Petroleum
Reliance Petroleum Limited
Bharat Petroleum
Paras Lubricants
6) ARE YOU AWARE THAT INDIAN OIL CORP. IS MARKETING XTRA PREMIUM
(XP) PETROL OTHER THAN ITS MOTOR SPIRIT (MS)
Yes No
7) ARE YOU USING ANY OF THE ABOVE PETROL (BETWEEN XP & MS)
Yes No

37 | P a g e
8) IF YES THEN HOW SATISFIED ARE YOU FROM THE PRODUCT OF INDIAN OIL
CORPORATION
Extremely Satisfied
Very Satisfied
Neutral
Very Dissatisfied
9) IF NO THEN WHY NOT.STATE YOUR REASONS
10) WHAT ARE THE ADVANTAGES OF USING XTRA PREMIUM (XP)
Gives better Mileage & Average
Good in Quality
Smooth Running
Cheap from other companies petrol
A large segment of people uses it
Using it from a very long time
Keeps engine working better
Environmental Friendly
Other
11) WOULD YOU RECOMMEND IT TO YOUR OTHER FRIENDS?
Definitely
Probably
Might or Might Not
Probably Not
Definitely Not

38 | P a g e
12) IF NO THEN WHY NOT.STATE YOUR REASONS
13) ON A SCALE OF 1-5, WHERE WOULD YOU LIKE TO PLACE XTRA PREMIUM?
[1-WORST 5-EXCELLENT]
1 2 3 4 5
14) DO YOU KNOW ABOUT ANY OF THE PROMOTIONAL STRATEGIES ADOPTED
BY INDIAN OIL CORPORATION FOR MARKETING XTRA PREMIUM (XP)
Yes No
15) IF YES THEN AMONG THE FOLLOWING WHICH ARE THE ONE YOU HAVE HEARD
Xtra Premium Fleet Card Program
Xtra Premium Easy Fuel Card
16) ARE YOU SATISFIED WITH THE PROMOTIONAL STRATEGIES ADOPTED
BY INDIAN OIL CORPORATION.
Extremely Satisfied
Very Satisfied
Neutral
Very Dissatisfied
17) ANY FURTHER SUGGESTIONS FOR IMPROVING THE PROMOTIONAL
STRATEGY

39 | P a g e
BIBLIOGRAPHY
PRIMARY DATA:
Questionnaire Method
Survey Method
Interview Method
SECONDARY DATA:
BOOKS
‫ﻬ‬ Marketing Management – Philip Kotler.
‫ﻬ‬ Marketing Research – G.C Beri; Nigel Bradley.
WEB CONSULTED
‫ﻬ‬ http://www.authorstream.com/Research-Methodology
contents
‫ﻬ‬ www.hubpages.com
‫ﻬ‬ www.iocl.co.in
PRESS RELEASE
‫ﻬ‬ www.iocl.co.in

Indian oil

More Related Content

What's hot

Viewers also liked

Similar to Indian oil

Recently uploaded

Indian oil