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.

2. NAME - Siddharth Gupta
ROLL NO - 107
ROOM NO – 13
SPECIALIZATION - Marketing Management 3rd Year
B. Com. (Morn.)
INTERNAL GUIDE – Prof. T. Sengupta (HOD) Management
EXTERNAL GUIDE - Mr. S. Paladhi, Chief Manager (PPES)
Indian Oil Corporation Limited
INTERNSHIP TOPIC - A case study on the sales of branded
Gasoline, Motor spirit (MS) and Xtra
Premium (XP)
2

3. ACKNOWLEDGEMENT
When I began my journey, I faintly knew what remained in stored 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 project and
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.
Last but not the least I take this opportunity to thank my parents for their constant
support, inspiration and help.
3

4. 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 and
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, limit 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.
INTRODUCTION
4

5. COMPANY PROFILE
5
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.
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.

6. CORPORATE HISTORY
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.
6
Indian Refineries Ltd.
1958
Merger
Indian Oil Company
Ltd. 1959
Indian Oil Corporation
Ltd. 1964

7. OBJECTIVES AND OBLIGATION
7
OBJECTIVES:
To serve the national interests in oil and related sectors in accordance and consistent with
Government policies.
To enhance the country's self-sufficiency in crude oil refining and build expertise in laying of
crude oil and petroleum product pipelines.
To develop operational synergies with subsidiaries and joint venture.
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.
OBLIGATION:
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 Defence Services - To maintain adequate supplies to Defence and other Para-military
services during normal as well as emergency situations.
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.

8. VISION AND VALUES
VISION VALUES
8

9. OBJECTIVES OF THE STUDY
In the year 1996, Indian Oil Corporation became the first Indian 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.
The main objectives of this study are:
 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.
9

10. 10
Though much effort was made to make this project work a success, some
limiting factors always remained in the way.
a) 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.
b) Time being major constraints, all the retail outlets could not be targeted and
sampling technique had to be used.
c) Some customers refused to answer and give views to fill the questionnaire.
d) 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.
e) There was only very few open ended questions but due to work pressure
and reluctance, many customers did not give proper suggestion and
feedback.
f) The answers received were based on respondents perception or
understanding of the question.
g) Some of the respondents were far from being specific and gave very general
answers.
h) Some customers thought of me being a salesman of a product and did not
even care to listen.
LIMITATIONS

11. RESEARCH AND METHODOLOGY
RESEARCH TYPE
 Quantitative- Quantitative research is done which provides hard data on the
numbers of people exhibiting certain behaviors, attitudes etc.
 Qualitative- Descriptive information is gathered, usually representing verbal or
narrative data through open-ended interviews or focus groups.
 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
 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 such as Books, Journals, Manuals, Magazines,
Websites, and HR Hand Book.
11

12. RESEARCH AND METHODOLOGY
PLAN OF ANALYSIS
• 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
• Open Ended Questions- Open-ended questions are those questions that will
solicit additional information from the inquirer.
• 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.
12

13. RESEARCH DESIGN
Sampling Design:
Total strength of customers-152
Sampling Size- 100
Sampling Types-Customers coming
to different RO’s (Retail Outlets)
13
Purpose of Study
Literature Review
Environmental Scan
Preparation of Questionnaire
Questionnaire Survey
Analysis
Suggestions
METHODOLOGY PROCESS MAP
RESEARCH AND METHODOLOGY

14. LITERATURE REVIEW
PRESS RELEASES ON 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).
II. New Delhi, November 15, 2012
Presently, the international oil price are relatively stable .However, there has
been significant volatility in the INR-USD exchange rate and is currently very
weak its uncertainty about future directions.
III. New Delhi, October 08, 2012
It has been decided to revise the MS prices downward by Rs. 0.56 per litre
(excluding State levies in Delhi) w.e.f. 9th Oct’12.
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 Irrecoverable Taxes 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.
14

15. SUMMARY FINDINGS
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.
XTRA PREMIUM(XP)
 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.
15

16. SUMMARY FINDINGS
16
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.
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.

17. SUMMARY FINDINGS
17
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.
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.

18. SWOT ANALYSIS
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 18

19. DATA INTERPRETATION
1. TYPE OF VEHICLE 2. AMONG THE FOLLOWING
COMPANIES WHO’S PETROL
HAVE YOU TRIED BEFORE
19
45
45
10
2 Wheeler
4 Wheeler
6 Wheeler
85%
80%
15%
75%
5% IOCL
HP
RELIANCE
BHARAT PETRO.
PARAS

20. DATA INTERPRETATION
3. HOW SATISFIED ARE YOU FROM
THE PRODUCT OF INDIAN OIL
4. ADVANTAGES OF USING XP
20
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

21. DATA INTERPRETATION
5. RECOMMENDATION TO OTHER
FRIENDS
6. HOW SATISFIED ARE YOU FROM
THE PROMOTIONAL STRATEGY
ADOPTED BY INDIAN OIL FOR
MARKETING XTRA PREMIUM
21
0 10 20 30 40
30
35
20
10
5
Definitely Not
Probably Not
Might/Might
Not
Probably
Definitely
0
5
10
15
20
25
30
35
40
45
5
15
45
20
15

22. CONCLUSION
22
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.
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.

23. ANNEXURE
SURVEY QUESTIONNAIRE
23
1. Which income level best describes your total annual household income?
[A]Under 25000 [B]25000-34999 [C]35000-49999 [D]50000-74999 [E]100000-119999
[E]Over 1, 20,000
2. Which of the following age groups do you fall in?
[A]18-24 [B]25-34 [C]34-44 [D]45-49 [E]50-54 [F]55-64 [G]64 and old
3. Type of vehicle?
[A] 2 wheeler [B] 4 wheeler [C] 6 wheeler
4. Do you know the names of the following companies?
[A]Indian Oil [B]Hindustan Petro. [C]Bharat Petro. [D] Reliance Petro. [E] Paras Petro.
5. Among the following companies who’s petrol have you tried before?
[A]Indian Oil [B]Hindustan Petro. [C]Bharat Petro. [D] Reliance Petro. [E] Paras Petro.
6. Are you aware that IOCL is marketing XtraPremium other than Motor Spirit?
[A]Yes [B] No
7. Are you using any of the above petrol (between MS and XP)?
[A]Yes [B] No
8. If Yes then how satisfied are you from the product of IOC?
[A]Extremely Satisfied [B]Very Satisfied [C]Neutral [D]Very Dissatisfied
[E]Extremely Dissatisfied

24. ANNEXURE
SURVEY QUESTIONNAIRE
24
9. If No then why not. State your reasons
10. What are the advantages of using XtraPremium
[A]Mileage/Average [B]Good Quality [C]Smooth Running [D]Cheap from other petrol's
[E]Majority uses it [F]Eco Friendly [G]Using it from long [H]Keeps engine better
11. Would you recommend it to your other friends
[A]Definitely [B]Probably [C]Might/Might Not [D]Probably Not [E] Definitely Not
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]
[A] 1 [B] 2 [C] 3 [D] 4 [E] 5
14. Do you know any of the promotional strategy adopted by IOC for marketing XtraPremium
[A]Yes [B] No
15. If Yes then which one have you heard before
[A] Xtra Premium Fleet Card Program [B] Xtra Premium Easy Fuel Card
16.Are you satisfied with the promotional strategy adopted by IOC
[A]Yes [B] No

25. BIBLIOGRAPHY
25
PRIMARY DATA:
Questionnaire Method
Survey Method
Interview Method
SECONDARY DATA:
 BOOKS
I. Marketing Management – Philip Kotler.
II. Marketing Research – G.C Beri; Nigel Bradley.
 WEB CONSULTED
I. http://www.authorstream.com/Research-Methodology
II. www.hubpages.com
III. www.iocl.co.in
 PRESS RELEASE
I. www.iocl.co.in

26. 26