EXICUTIVE SUMMARY

The term Brand Equity refers to the inherent in a well-known brand name from

customer perspective. Brand Equity is the added value bestowed on the product by the

brand name.

The research conducted revealed lot of insights about the branded petroleum fuels and its

market potential. The study on Brand equity emphasized a lot in knowing the Premium

branded petroleum customers. This research is conducted behalf of India's first 91 Octane

petrol Xtra Premium reinforced with Multifunctional Additives for,

Super Mileage and Super Pick-upEnhances cleaning of enginesMinimizes exhaust emissionsRestores peak engine power and acceleration and Reduces maintenance cost…

Building Brand equity has become increasingly important for companies. Brand

Equity is derived from many things including a reputation for Quality & high brand

awareness, but the key element in the association that are evoked in the consumer by the

brand name, symbol and packing. These associations can be ‘hard’ or functional (plant &

machinery), as well as ‘soft’ or symbolic. Thus, just as people have individual

personalities, brands too can develop personality like association if the advertising for

these brands identifies and develops a consistent image that is reinforced overtime.

Here research was conducted to know all about Indian Oil Xtra premium fuel, that

might be helpful for the company to develop their strategy for the special brand called

Xtra premium.

CHAPTER-1

INTRODUCTION

The research conducted for the project work titled “Brand equity of Indian Oil Xtra

premium fuel” for the partial fulfillment of 4 sem MBA. The study was conducted

directly on the field in the south zone of Bangalore. The primary data was collected from

specific spots like petrol pumps, parking spots and near shopping malls. The study

revealed many insights about the branded fuels and its acceptably in the market.

Moreover the research conducted made me enable to know the petroleum and the oil

sector markets and its challenges.

In the present scenario a lot of close competitive branded fuels has made Indian Oil to

introduce premium fuels like Xtra premium and many innovative promotional activities

like extra reward cards. The core objective of the study was to determine the brand equity

of Xtra premium fuel from Indian Oil.

The study is descriptive in nature. The purpose of descriptive research is to provide an

accurate snapshot of some components of BRAND EQUITY, such as consumer

awareness, brand quality, brand value, brand loyalty and brand potentiality of the

company’s braded fuel called EXTRA PREMIUM. The principal survey options were

questionnaires and personal interviews.

Research simply means a search for facts - answer to question and solution to problems.

It is a purposive investigation. It seeks to find explanation to un-explained phenomenon,

to clarify the doubtful facts and to correct the misconceived facts. The encyclopedia of

social science defines research as “the manipulation of generalizing to expand, correct or

verify knowledge”.

Research design is the detailed blue print used to guide a research towards its

objectives. This is a part of marketing research. Marketing research is systematic design,

collection, analysis and reporting data and finding relevant to a specific marketing

situations facing by the company.

Marketing research is likely to provide a fuller appraisal of the brands strength;

character and uniqueness than the brand owner may possess through his/her own

experience and collection of anecdotes. It can certainly compare and contrast the brand

with competitors in an objective way.

The primary focus of the study was to measure & assess consumer perception of

different premium brands and preference over other premium brands along with specific

dimensions of Brand Equity- brand loyalty, awareness, perceived quality and value. The

research design employed for the purpose of the study was directive in nature and a

sample survey was conducted for the purpose of the generation.

BRAND EQUITY:

The term Brand Equity refers to the inherent in a well-known brand name from

customer perspective. Brand Equity is the added value bestowed on the product by the

brand name. It can be conceptualized from the three different perspectives-

At the firm level, it is the incremental cash flow arising from the use of the brand name.

At the trade level, it is the leverage from the use of the brand name.

At the consumer level, it occurs when the consumer is familiar with the brand and holds

some favorable, strong and unique associations in memory.

Consumer based Brand Equity arises from consumer being more likely to be aware of

some brands in addition to possibly preferring some brands over others. Brand equity can

also to be defined as a set of assets (&liabilities) linked to a brand’s name symbol that

adds to (or subtracts from) the value provided by a product/service to a firm and/or to that

of firm’s customers.

Major assets categories are:

Brand Awareness

Brand quality

Brand value

Brand loyalty

Brand potentiality

Importance of Brand equity:

Building Brand equity has become increasingly important for companies. Brand

Equity is derived from many things including a reputation for Quality & high brand

awareness, but the key element in the association that are evoked in the consumer by the

brand name, symbol and packing. These associations can be ‘hard’ or functional (plant &

machinery), as well as ‘soft’ or symbolic (brand name). Together these give the brand a

“personality”. Thus, just as people have individual personalities, brands too can develop

personality like association if the advertising for these brands identifies and develops a

consistent image that is reinforced overtime.

A brand can have high quality, or value as a tradable asset, for many reasons.

According to Aaker, brands have equity because they have high awareness; many loyal

consumers; a high reputation for perceived quality; proprietary brand assets such as

access to scarce distribution channels or to patents; or kind of brand associations (such as

personality association).

Brand Quality

Brand awareness Brand potentiality

Brand Loyalty Brand value

It is clear from the above figure that Brand equity is captured in the name & symbol of

the brand.

High Brand Equity provides a number of competitive advantages:

The company will enjoy reduced marketing costs because of high level of

consumer brand awareness.

The company will have more trade leverage bargaining with dealers.

Provides value to customer by enhancing customers:Interpretation/

processing of information

Confidence inthe decision

Use satisfaction

Provides value to firm by enhancing:Efficiency & effectiveness of marketing programmesBrand loyaltyPrices/marginBrand extensionTrade leverageCompetitive advantage

Brand EquityNameSymbol

The company can charge a higher price than its competitors because the brand

has a higher perceived quality.

The company can more easily launch brand extension since the brand name

carries high credibility.

“A Brand name i.e. well know and well liked by consumers has greater equity and is

worth more.”

“A product is something that is made in a factory; a brand is something that is brought by

customer. A product can be copied by a competitor; a brand is unique. A product can

quickly outdated; a successful brand is timeless.”

- Stephen King

BRAND LOYALTY:

“You have to have a brand become a friend”

- Fred Posner

For any business it is expensive to gain new customers & relatively inexpensive

to keep existing customers especially with or even like the brand. In

fact, in many markets there is substantial inertia among customers even if there are very

low switching costs and low customer commitment to the existing brand. Thus, an

installed customer base has the customer acquisition investment largely in its past.

Further at least some existing customers provide brand exposure and reassurance to new

customers.

Measuring Brand Loyalty:

In order to have a clear understanding of brand and its management, it is useful to

consider different approaches to its measurement. Approaches to measure brand loyalty

are-

Behavior measures.

Switching costs.

Measuring satisfaction.

Linking of the brand.

Commitment.

The strategic value of brand loyalty:

The brand loyalty of existing customers represents a strategic asset that if properly

managed and exploited, has the potential to provide value in several ways.

Reduced marketing cost

Trade leverage

Time to respond to competitive threats

Attract new customers

Brand awareness created

Reassurance to new customers

BRAND AWARENESS:

“A good name is better than riches”.

- Cervantes

Brand awareness the ability of a potential buyer to recognize or recall that a brand

is a member of certain product category. A link between product class and brand is

involved. Brand awareness involves a continuum ranging from an uncertain feeling that

the brand is recognized, to a belief that is the only one is the product class. The

continuum can be presented by three very different levels of brand awareness. The role of

brand awareness in brand equity will depend upon both the context and upon which level

of awareness is achieved.

The awareness pyramid

Top of mind

Brand recall

Brand recognition

BRAND QUALITY:

“Quality is the patent protection we have got.”

- James Robinson

CEO, American express

Perceived quality can be defined as the customers perception of overall quality or

superiority of a product or service with respect to its intended purposes, relative to

alternatives. Perceived quality is first perception by customers. It thus differs from

several related concepts. Such as:

Actual or objective quality- the extend to which the products or services delivers

superior service.

Product based quality- the nature & quantity of ingredients, features or service

included.

Manufacturing quality, conformance to specification the “Zero Defect” goal.

Unaware of the brand

OTHER PROPERIETARY BRAND ASSETS

Brand assets are patents, trademarks & channel relationship. Brand assets will

most valuables if they inhibit or prevent competitors from eroding a customer base &

loyalty. These assets can take several forms of example a trade mark will protect brand

equity from competitors who might want to confuse customers buy using a similar name

symbol or package. A patent, if strong & relevant to customer choice, can prevent direct

competition. A distribution channel can be controlled by a brand because of a history of

brand performance.

To be very relevant, assets must be tied to the brand. If distribution is a basis for brand

equity, it needs to be based on a brand rather than on a firm.

INDUSTRY PROFILE

The Indian petroleum industry dates back to 1890 when oil was first struck at Digboi in

northeastern India.

Oil exploration and production activities were largely confined to the northeast until the

1970s when the most prolific and important Indian producing basin, Bombay High, was

discovered. While the exploration and production sector remained under the state control

until 1991, the Government policy now allows joint as well as private sector to

participate in this sector.

India's first refinery was built at Digboi in 1901. Thereafter, more refineries were set up

in the late 1950s and early 1960s with the assistance of international oil companies such

as Shell, Caltex and Esso to meet India's growing petroleum product needs.

In 1976, India nationalized the refining and marketing sector in response to the oil crisis

of the 1970s and introduced regulatory controls on production, imports, distribution and

pricing of crude oil and petroleum products. The Oil Coordination Committee was

formed to act as a regulatory body in this regard.

With the key objective of providing basic necessities to the economically weaker sections

of the society at affordable rates, the Administered Pricing Mechanism subsidized prices

for products like kerosene and LPG by correspondingly charging higher prices for other

products like gasoline and aviation fuel. Diesel prices were kept neutral.

The Administered Pricing Mechanism ensured fixed 12% post-tax return on net worth

deployed for refining, distribution and marketing of petroleum products. Also, petroleum

product prices were maintained at an even level throughout the country by balancing

various subsidies through a number of pool accounts.

However, in 1991, critical balance of payment position impelled the Indian government

to launch general economic reforms with the objective of transforming the regulated

economy into a market-driven one and attract investments from the private sector.

Under the liberalization policy, a number of structural changes have already been

effected in form of the private sector being allowed to carry out refining as well as

marketing of a limited number of petroleum products e.g. LPG, naphtha, Aviation fuel,

fuel oil etc.

The most significant step towards liberalization in the oil industry however was

announced in November 1997 in form of a blueprint for de-regulation of the Indian oil

industry.

As per the de-regulation policy, the Indian oil sector is scheduled to be completely

deregulated from April 2002 in all aspects of pricing, imports and exports of crude and

petroleum products.

Major contributory factors for high demand growth rates in India

The steady growth in GDP and purchasing power on part of the Indian population has

resulted into a corresponding growth in consumption of petroleum products in India. A

few factors, which have particularly been significant in this regard, are:

1. Significant growth in passenger car population (From 2.3 million private motor

vehicles in 1991 to 3.9 million in 1998 - Annual growth of more than 7% From 14.1

million two-wheeled motor vehicle in 1991 to 27.9 million in 1998)

2. Significant growth in transportation vehicles like trucks (From 21.3 million trucks and

tankers in 1991 to 40.4 million in 1998)

3. Replacement of conventional cooking fuels including kerosene in urban regions by

LPG (The use of LPG is increasing in rural areas and is expected to contribute to future

growth.)

Refining

Most of India's refineries were commissioned between 1950s and 1970s. Shell, Esso and

Caltex set up one refinery each in the 1950s. Indian Oil Corporation was formed in 1964

with 100% government ownership as a result of the merger of two government-owned

companies (one of which owned two refineries.). Cochin Refineries Limited and Madras

Refineries Limited were established in the 1960s by the Indian government in association

with Philips Petroleum, and Amoco, and National Iranian Oil Company, respectively.

All private sector oil companies were nationalized in 1976. Oil refining was thereafter

allowed to be carried out only by the government oil companies. However, with the

liberalization and deregulation measures implemented since early 1990s, private sector

players are allowed to own refineries in India.

Currently there are seventeen refineries in India totaling up to a refining capacity of 112

million tons per annum. Fifteen out of these belong to the state-owned oil companies and

one each is owned by a joint sector company (Mangalore Refinery & Petrochemicals

Ltd.) and a private sector company (Reliance).

Marketing

The marketing of most petroleum products was completely controlled by the government

through the above corporations until the early 1990s. The Oil Coordination Committee, a

regulatory body of the government of India, allocated the refined products to various

marketing companies. Also, the prices of most petroleum products were fixed under the

administered pricing mechanism.

As a result of economic liberalization measures of the government of India, implemented

over the past few years, many products have been de-controlled for private sector

companies to market them at the market-determined prices, e.g. lubricants, greases,

benzene, toluene, naphtha, LPG, aviation turbine fuel, kerosene, fuel oil, bitumen etc.

Also, imports and exports of all petroleum products, except gasoline, diesel, kerosene (for

the public distribution system), and LPG (for domestic fuel consumption) have been

deregulated as of April 1, 1998 allowing private sector entities to import and export these

products.

However, four products, namely LPG (for domestic fuel consumption), gasoline,

kerosene (for the public distribution system) and high-speed diesel continue to be

exclusively marketed by the state-controlled corporations only.

As per the de-regulation policy announced by the Government of India, private sector

refiners and other companies will be allowed to market diesel, LPG, gasoline and

kerosene at market-driven prices from April 1, 2002 provided they satisfy the criteria laid

by the government for acquiring the marketing rights. (These criteria include a condition

of minimum investment of Rs.20, 000 million ($429 million) in exploration and

production or refining or pipelines or terminals)

CHAPTER-2

RESEARCH DESIGN

Review of literature

Review of literature refers to identifying already existing literature in the area of “Brand

equity of Indian oil Xtra premium fuel”, to find out what contribution has already been

made so that it can serve a valuable base for further expanding the literature. Secondary

data was viewed to get more information about researches conducted and way they were

studied and their methodology and conclusions.. This chapter revolves around the various

relevant literatures screened to formulate the subject matter of the proposed study.

PURPOSE: economy is clearly the greatest advantage of secondary data. instead of

printing data - collection forms , hiring field works , transporting then though the field

work , and editing and tabulating the results , researches , may obtain information from a

published record compiled by somebody else . Also secondary data can be quickly

obtained. Another advantage of some secondary data sources is that they provided

information that could not be obtained by the

STATEMENT OF THE PROBLEM:

In this present scenario oil industry which is the No.1 Business in the world is

facing lot of competition. Customer expectation have increased in this business. Indian

oil is one of the leading companies in India. IOC is the most prominent player in the

Indian oil market, but has started to face stiff competition from both Indian and foreign

players.

Oil companies in response to the changing scenario are bringing out branded petrol

i.e. they are trying to differentiate petrol. The project tries to analyze the brand equity of

IOC premium petrol “EXTRA-PREMIUM”.

NEED AND IMPORTANCE OF THE STUDY:

This study helps to understand more about the IndianOil extra premium branded fuel

among the premium fuels in the oil industry. Various scenarios can be created which

involve the introduction of new branded fuels or modification to the existing petroleum

products to determine effects of these changes on market preferences. The information on

brand equity can be used to test-

Opportunity to increase the market share.

Introduction of a new product.

Extension of the branded fuel consumption.

Convince the potential customer.

Track brand image overtime for the company.

Perception of the extra premium petrol.

OBJECTIVE OF THE STUDY:

To know the consumer perception towards the product; especially for the

EXTRA-PREMIUM petrol.

To know the consumer expectation about the IOC extra premium branded fuel.

To analyze the components of brand equity they are;

1) Brand awareness.

2) Band quality

3) Brand value.

4) Brand loyalty

5) Brand potential

SCOPE OF THE STUDY:

Does not study the brand equity of competitors

Applicable only in the present scenario where IOC has only one premium fuel “

Extra Premium”

LIMITATIONS OF THE STUDY:

This study is limited within Bangalore region only.

The time period of the study is one month.

Time Constraint:

As the study was conducted as a part of the curriculum, the time available to procure data

restrained the sample to 100 consumers.

Area of Coverage:

As the study was restricted only to South Zone of Bangalore region, we couldn’t make

our survey in other regions.

Biased Information:

As customers were reluctant and scared to provide actual information, response is likely

to be biased in some cases.

Improper exposure of the product

Some customers were unaware of some branded fuels and person who endorses.

METHODOLOGY:

Collection of data is the process of enumeration together with proper recording of

results. The success of an enquiry is based upon the proper collection of data. Literature

was extracted from various sources, which includes web sites, company brochures,

annual reports and dissertations.

Secondary data are those which are already collected by some one for some

purpose and are available for the present study. For instance, the data collected during

census operations are primary data to the department of census and the same data, if used

by a research worker for some study, are secondary data.

Secondary data are those data which have been already collected and analyzed by

some earlier agency for its own use: and later same data are used by a different agency. A

secondary source is a publication, reporting the data

Which have been gathered by other authorities and for which others are responsible.

Sources of secondary data

The various sources of secondary data can be divided into two broad categories:

Published sources

Unpublished sources

Published Sources: Various governmental, international and local agencies publish

statistical data.

Unpublished sources: They are records maintained by various governments and private

offices, the researches carried out by individual research scholars in universities or

research institutes.

Various books, magazines are been used to collect the data and to have knowledge on the

topic chosen.

TYPE OF RESEARCH:

The purpose of descriptive research is to provide an accurate snapshot of some

aspect of marketing environment, such as consumer perception of the attributes of

company’s product, distribution channel and important aspects of pens. The principal

survey options were questionnaires and personal interviews.

Questionnaire is the main instrument in collecting primary data. It consists of a set

of questions presented to customer for their answers. Questionnaire consists of both open

and close ended questions. Before setting a questionnaire pilot study was conducted.

SAMPLING PLAN:

The basic idea of sampling is that by selecting some of the elements in a

population we may draw conclusions about the entire population. Sampling is useful if

the population size is large.

Sampling unit : Individuals.

Sampling Method : Convenience Sampling.

Sampling Size : 100 Customers.

Sampling Plan : Questionnaires.

Sample Area : South Zone ; Bangalore.

POPULATION:

Population can be defined as complete sets of people about which we wish to

make some inferences. Population for this study is in Bangalore south zone. This study

was restricted to only five major premium brands of petroleum products VIZ. Xtra

premium, Speed, Power, Reliance, and Shell.

SAMPLING TECHNIQUES:

Since each sample unit is drawn individually from population at large, it is

unrestricted sample. The members of the sample are selected on a probability basis.

Simple random sampling was used in which each population element has a known and

equal chance of selection.

SAMPLE SIZE:

Sample size means the number of sampling units to be selected from the

population for the investigation. Due to time and cost constraints, sample size for this

study was taking 100, which is a proportion of total population.

SAMPLE DESCRIPTION:

Sample unit is the entire population. The respondents are students, employee

businessman, and professional.

INSTRUMENTATION TECHNIQUES:

The are two principal techniques available to researcher who is responding to a

research question or considering what data to collect in order to anticipate future

information needs:

Secondary data

Primary data

The staring of this study was provided by the use of secondary data. The first step

was to collect relevant information for the study to be conducted by referring business

books, project reports, and other articles from news paper, internet. Secondary data

provided enough information to resolve the problem being investigated. Examining

available data is a perquisite to collecting primary data. It helped to define the problem

and formulate hypotheses about its solution.

Primary data are those that are collected for the first time and they are original

character. The two basic method of collecting primary data are questioning and

observing. Former being reliable and time saving so in this study questioning method was

adopted for that survey was conducted.

ACTUAL COLLECTION OF DATA:

Data processing is an intermediary stage of work between data collection and data

analysis. Data processing involves classification and summarization of data in order to

make them amenable to analysis. Data processing consists of a number of closely related

operations-

1. Editing: The first step in processing of data is editing of complete

schedules/questionnaires. Editing is a process to detect and correct errors and

omissions.

2. Coding: Coding means assigning numbers or other symbols to the categories or

responses. In the time of tabulation it is necessary. In this study the coding has

been given during tabulation.

3. Tabulation: Tabulation is the process of summarizing raw data and displaying

them on compact statistical tables for further analysis. For this purpose, computer

has been adapted.

4. Graphic representation: Graphic representation involves use of graphics, charts

and other pictorial devices. In this bar diagram and pie charts have been used to

represent the result. Then it was analyzed and interpreted.

CHAPTER-3

PROFILE OF THE COMPANY

Indian Oil Corporation Limited

Indian Oil Corporation Limited (IndianOil) is the country's largest commercial enterprise

IndianOil is India’s No.1 Company in Fortune's prestigious listing of the world's 500

largest corporations, ranked 153 for the year 2006. It is also the 19th largest petroleum

company in the world.

IndianOil has also been adjudged No.1 in petroleum trading among the national oil

companies in the Asia-Pacific region.

India's Flagship National Oil Company

Beginning in 1959 as Indian Oil Company Ltd., Indian Oil Corporation Ltd. was formed

in 1964 with the merger of Indian Refineries Ltd. (Estd. 1958).

As India's flagship national oil company, IndianOil accounts for 56% petroleum products

market share among PSU companies, 42% national refining capacity and 69%

downstream pipeline throughput capacity.

The IndianOil group of companies owns and operates 10 of India's 18 refineries with a

current combined rated capacity of 54.20 million metric tonnes per annum (MMTPA) or

one million barrels per day (bpd). These include two refineries of subsidiary Chennai

Petroleum Corporation Ltd and one of Bongaigaon Refinery and Petrochemicals Limited.

IndianOil owns and operates the country’s largest network of cross-country crude oil and

product pipelines of nearly 8,000 km, with a combined capacity of 56.85 MMTPA.

Countrywide Network

IndianOil’s countrywide network of over 22,000 sales points is backed for supplies by its

extensive, well spread out marketing infrastructure comprising 165 bulk storage

terminals, installations and depots, 95 aviation fuelling stations and 87 LPG bottling

plants. Its subsidiary, IBP Co. Ltd, is a stand-alone marketing company with a nationwide

network of over 3,000 retail sales points.

For the year 2004-05, IndianOil sold 50.1 million tonnes of petroleum products,

including exports of 1.96 million tonnes. Its seven own refineries achieved a throughput

of 36.63 million tonnes, and the pipeline network transported 43.03 million tonnes of

crude oil and petroleum products.

IndianOil reaches Indane cooking gas to the doorsteps of 42.4 million households in over

2,100 markets through the country's largest network of 4,600 Indane distributors. The

country's leading SERVO brand lubricants from IndianOil, with over 42% market share

and 450 grades, are sold through more than 10,000 Company retail outlets, besides a

countrywide network of bazaar traders.

IndianOil's ISO-9002 certified Aviation Service, with 65% market share, meets the fuel

and lubricants needs of domestic and international flag carriers, Defence Services and

private aircraft operators

To maintain its strategic edge in the market place, IndianOil has planned investments to

the tune of Rs. 24,400 crore during the X Plan period (2002-07), mainly in linear

integration & diversification projects, besides refining and pipeline capacity expansions,

product quality upgradation and retail operations

Customer Care

Customer delight is the key driver of IndianOil’s marketing operations. Under the XTRA

retail outlet brand unveiled during 2003-04, IndianOil is making customers visiting its

petrol and diesel stations a number of XTRA offerings, including assured quality and

quantity, efficient forecourt service and high levels of housekeeping, choice of regular

and branded fuels, 100% electronic dispensing, cashless transactions, loyalty programmes

for cash & credit customers, and a number of non-fuel offerings tailor-made to customer

profile and requirements

Academy Company

IndianOil is an "academy" company with a score of full-fledged training centers across

the country building skills and competencies among IndianOil People to face the

challenges of the market place. Among these, the IndianOil Institute of Petroleum

Management (IIPM) at Gurgaon, the IndianOil Management Centre for Learning at

Mumbai, and the IndianOil Management Academy at Haldia have emerged as world-

class training and management academies.

Pioneering R&D

IndianOil's world-class R&D Centre has won recognition for its pioneering work in

lubricants formulation, refinery processes, pipeline transportation and alternative fuels. It

has developed over 2,100 formulations of SERVO brand lubricants and greases for

virtually all conceivable applications - automotive, railroad, industrial and marine -

meeting stringent international standards and bearing the stamp of approval of all major

original equipment manufacturers. A wholly-owned subsidiary company, IndianOil

Technologies Ltd., is commercializing the innovations and technologies of the Centre,

which has over 140 national and international patents to its credit. Apart from leadership

in development and commercialization of bio-fuels, the R&D Centre is currently the

nodal agency of the hydrocarbon sector in India for ushering in Hydrogen fuel in the

country.

Expanding Horizons

IndianOil is currently metamorphosing from a pure sectoral company with dominance in

downstream in India to a vertically integrated, transnational energy behemoth. The

Corporation is implementing a master plan to emerge as a major player in petrochemicals

by integrating its core refining business with petrochemical activities, besides making

large investments in E&P and import/marketing ventures for oil and gas in India and

abroad.

Spreading Wings

IndianOil is also strengthening its existing overseas marketing ventures and

simultaneously scouting new opportunities for marketing and export of petroleum

products to new energy markets in Asia and Africa.

Two overseas subsidiaries are already operational in Sri Lanka and Mauritius, and a

regional office at Dubai is coordinating expansion of business activities in Middle East

region. Within an year of incorporation, Lanka IOC Pvt. Ltd. (LIOC) has captured a 25%

market share in Sri Lanka, with a target to take it to about 40% in the near future.

IndianOil is investing US$ 18 million in Mauritius through its subsidiary, Indian Oil

Mauritius Ltd. (IOML), to set up a range of marketing infrastructure there.

The Corporation has launched 11 joint ventures in partnership with some of the most

respected corporates from India and abroad -- Lubrizol, Nyco SA, Petronas, Oil tanking

GmbH, Marubeni, to name a few. SERVO lubricants are being marketed in Dubai, Nepal,

Bhutan, Kuwait, Malaysia, Bahrain, Indonesia, Sri Lanka, Kyrgyzstan, Mauritius,

Bangladesh, etc.

IndianOil has been lending its expertise for nearly two decades to various countries in

several areas of refining, marketing, transportation, training and research & development.

These include Sri Lanka, Kuwait, Bahrain, Iraq, Abu Dhabi, Tanzania, Ethiopia, Algeria,

Nigeria, Nepal, Bhutan, Maldives, Malaysia and Zambia.

IndianOil's sincere commitment to Quality, Safety, Health and Environment is reflected

in the series of national and international certifications and awards earned over the years.

The 19th largest petroleum company in the world, IndianOil, is well on its way to

becoming an integrated, transnational energy corporate.

IndianOil. Bringing Energy to Life.

The Path of Growth

1958

Indian Refineries Ltd. was formed with Mr Feroze Gandhi as Chairman.1959

Indian Oil Company Ltd. was established on 30th June 1959 with Mr. S. Nijalingappa as

the first Chairman.

1960

Agreement for supply of SKO and HSD was signed with the then USSR. M.V:

"Uzhgorod" carrying the first parcel of 11,390 tonnes of HSD docked at Pir Paul Jetty in

Mumbai on 17th August 1960.1962

Pt. Jawaharlal Nehru inaugurated Guwahati Refinery.

Construction of Barauni Refinery commenced.1963

Foundation was laid for Gujarat Refinery

Indian Oil Blending Ltd. (a 50:50 Joint Venture between IndianOil and Mobil) was

formed.1964

Indian Oil Corporation Ltd. was born on 1st September 1964 with the merger of Indian

Refineries Ltd. with Indian Oil Company Ltd.

Barauni Refinery was commissioned.

The first petroleum product pipeline from Guwahati to Siliguri (GSPL) was

commissioned.

1965

Dr. S.Radhakrishnan inaugurated Gujarat Refinery, the then President of India.

Barauni-Kanpur Pipeline (BKPL) and Koyali-Ahmedabad product Pipeline (KAPL)

commissioned.

IndianOil People maintained the vital supply of Petroleum products to Defence in 1965

War. 1966

The first long-term agreement was signed for harmonious employee relations.1967

Haldia Baraurii Pipeline (HBPL) was commissioned.

Bitumen and Marine Bunker business began.1968

Techno-economic studies for Haldia-Calcutta, Bombay-Pune and Bombay-Manmad

Pipelines submitted to the Government.1969

IndianOil undertook the marketing of Madras Refinery products.1970

IndianOil acquired 60% majority shares of IBP.

The same was offloaded in favour of the President of India under a Directive in 1972.

1971

Dealership/reservation was extended to war widows, disabled Defence personnel,

Freedom Fighters, etc. after 1971 War.

1972

R&D Centre was established at Faridabad.

SERVO, the first indigenous lubricant was launched.1973

Mrs Indira Gandhi laid Foundation-stone of Mathura Refinery, the then Prime Minister

of India.1974

Indian Oil Blending Ltd. (IOBL) became the wholly owned subsidiary of IndianOil.

Marketing Division attained a new watershed with a market participation of 64.2%.1975

Haldia Refinery was commissioned.

Multipurpose Distribution Centers were introduced at 132 Retail Outlets pioneering rural

convenience.1976

Private petroleum companies nationalized.

Burmah Shell became BPC.1977

R&D Centre launched Nutan wick stove.1978

Phase-wise commissioning of Salaya-Mathura Crude Oil Pipeline (SMPL) began.1979

Barauni Refinery and Bongaigaon Refinery and Petrochemicals Ltd. (BRPL) affected by

Assam agitation.1980

The second Oil Shock was witnessed as a result of Iranian Revolution. Crude Oil price

flared to a new high of $32 per barrel.

1981

Digboi Refmery and Assam Oil Company's (AOC) marketing operations were vested in

IndianOil. It became Assam Oil Division (AOD) of IndianOil.1982

Mathura Refinery was commissioned.

Mathura-Jalandhar Pipeline (MJPL) was commissioned.1983

massive augmentations of LPG storage and distribution facilities were undertaken.

Proposal for the 6 MMTPA Refinery at Karnal was submitted at an estimated cost

of Rs l,181 Crore.

1984

Taluka Kerosene Depots (TKOs) were commissioned for improved availability of

kerosene in rural and hilly areas in addition to Multipurpose Distribution Centers.

Foreshore terminal at Kandla Port was commissioned.

Integrated Corporate Planning -ten year Perspective Plan and five year LRP initiated.

1985

The new office complex for the Registered Office of the Corporation and Head Office of

Marketing Division with a total area of 23,110 square meters was completed.

Additional Coking Unit at Barauni Refinery commissioned.

1986

A new Foreshore Terminal at Madras commissioned.1987

Test marketing of 5 kg. LPG cylinders began in 1986-87 in Garo Hills and Kumaon.

1988

DFR of Karnal (Panipat) Refinery was submitted to the Government of India.

1989

Salaya-Mathura Pipeline (SMPL) was suitably modified for handling Bombay High

Crude during winter.

1990

Kandla-Bhatinda Pipeline (KBPL) project was approved.

The first LPG Bottling Plant of Assam Oil Division (AOD) at Silcher was commissioned.

1991

Digboi Refinery Modernization project was initiated.

Bunkering facility at Paradip was completed.

1992

Revamp of Vacuum Distillation Unit at Mathura Refinery was completed.

Two of the Indian Oil Table Tennis players represented the nation at Barcelona Olympic

Games.

1993

New era of Microprocessor based Distributed Digital Control System (DDCS) replacing

the pneumatic instrumentations began in Refineries, in phased manner.

1994

India's First Hydro cracker Unit was commissioned at Gujarat Refinery.

Vision-2000, the Retail Visual Identity programme was launched to upgrade facilities at

Retail Outlets.

1995

1,443 km. long Kandla-Bhatinda Pipeline (KBPL) was commissioned at Sanganer.

The lndane Home Shoppe was launched.

1996

State-of-the-art LPG Import Terminal at Kandla with a capacity of 6,00,000 tonnes per

annum was commissioned.

1 million metric tonne per annum (MMTPA) new CDU at Haldia Refinery was executed

with in-house supervision.

Indianoil Institute of Petroleum Management (IIPM) successfully conducted the first

batch of one year International MBA (iMBA) programme.

1997

Commercial production of SERVOIII Titex Grease commenced at the world's first Titex

Plant at Vashi, Bombay.

Business Development received new thrust.

Indian Oil entered into LNG business through Petronet LNG -a JV Company.

1998

Panipat Refinery was commissioned.

Haldia, Barauni Crude Oil Pipeline (HBCPL) was completed.

The Administrative Pricing Mechanism (APM) was withdrawn from the Refining Sector

effective 1" April 1998. Phase-wise dismantling of APM began.

IndianOil Board was reconstituted under the Navaratna concept, with the induction of

five part-time non-official independent Directors.

1999

Indian Hydrocarbon Vision -2025" was announced at PETROTECH-99, organised by

Indian Oil on behalf of the oil Industry.

India attained self-sufficiency in Refining.

Diesel Hydro-desulphurisation Units commissioned at Gujarat, Panipat, Mathura and

Haldia Refineries.

Manthan -- the IT re-engineering project was launched.

2000

IndianOil crossed the turnover of the magical mark of Rs l ,00,000 Crore -- the first

Corporate in India to do so.

The IndianOil Foundation -- a non-profit trust -- the first of its kind in Corporate India,

was unveiled to protect, preserve and promote the country's heritage.

Y2K compatibility achieved.

JNPT Terminal was commissioned.

The Lube Blending Plant at Asoti and the Once through Hydro cracker Unit at Mathura

refinery were commissioned.

IndianOil entered into Exploration & Production (E&P) with the award of two

exploration blocks to IndianOil and ONGC consortium under NELP-I.

2001

Digboi Refinery completed 100 years of continuous operation.

Chennai Petroleum Corporation Ltd. (CPCL) and Bongaigaon Refinery and

Petrochemicals Ltd. (BRPL) were acquired.

Fluidized Catalytic Cracker Unit at Haldia Refinery was commissioned.

Augmentation of Kandla-Bhatinda Pipeline (KBPL) to 8.8 MMTPA completed.

Eight Exploration blocks awarded to the IndianOilled consortium under NELP-II.

Two Coal Bed Methane (CBM) blocks awarded to the consortium of IndianOil and

ONGC under CBM-I.

The investment proposal for Integrated PX/PfA project at Panipat was approved.

2002

APM dismantled. Pricing of Petroleum products decontrolled.

IBP Co. Ltd. was acquired with management control.

Barauni Refinery expansion project completed.

New generation auto fuels IOC Premium and Diesel Super introduced.

2003

Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka.

Retail operations began in Sri Lanka. IndianOil became the first Indian Petroleum

Company to begin downstream marketing operations in overseas market. Lanka IOC

became an independent oil company in Sri Lanka

Gasahol, 5% ethanol blended petrol, was introduced in select states.

INDMAX unit at Guwahati Refinery commissioned.

IndianOil Technologies Ltd. for marketing intellectual properties of R&D centre was

launched.

Foundation Stone of Panipat Refinery Expansion and PX/PTA projects laid.

Maiden LPG supplies to Port Blair

KVSPL (Product) Pipeline commissioned

Concept of XTRA, covering Retail Outlets and customer service, launched

SERVO became a Super Brand

2004

IndianOil turned a Gas marketer by sale of regasified LNG

IndianOil Mauritius Ltd.’s 18 TMT state-of-the-art Oil Storage Terminal at Mer Rouge

commissioned

Board of Directors

Chairman

Director (Finance)Director

(Pipelines)Director

(HumanResources)Director

(Planning & BusinessDevelopment)

Director (Refineries) Director (Marketing)Director (Research &

Development)

Additional SecretaryMinistry Of Petroleum &

Natural Gas

Joint SecretaryMinistry Of Petroleum &

Natural Gas

Joint Secretary & Financial Advisor

Ministry Of Petroleum & Natural Gas

PART TIME, NON-OFFICIAL DIRECTORS

Principal Executives

Chief Vigilance Officer Advisor (Security)

Executive Directors

CORPORATE OFFICE

REFINERIES DIVISION  HEADQUARTERS

REFINERIES

PIPELINES DIVISION HEAD OFFICE

MARKETING DIVISION HEAD OFFICE

R&D CENTRE

Map no 1: Area of operation

PRODUCT & SERVICE PROFILE

SERVO

Indian Oil's SERVO:IndianOil's Global Brand.

SERVO is India's largest selling lubricant brand.

SERVO range of lubricants enjoys approvals from

major Original Equipment Manufacturers (OEMs)

including new generation cars. 9,000 Retail Outlets

and a countrywide network of SERVO SSls and SSAs Bazaar traders offer SERVO range

of lubricants to customers.

The SERVO range of lubricants is used in almost every application covering automotive,

industrial and marine sectors. SERVO range of lubricants is fast emerging as a Global

Brand with wide acceptance in UAE, Malaysia, Mauritius, Bangladesh, Bahrain, Sri

Lanka, Nepal, Yemen, Kenya, Kuwait, Burkina Faso, Reunion Islands and other markets.

SERVO has been designated as a SUPERBRAND. SERVO has genuine oil tie ups with

a wide range of companies like Hyundai, Maruti, Bajaj, and Lancer. Anil Kumble, the

ever-dependable sporting icon is SERVO Brand Ambassador.

Developed exclusively at Indian Oil’s world-class R&D Center at Faridabad, there is a

SERVO lubricant for virtually every single application. With over 42% market share and

450 grades, the country's leading SERVO brand lubricants from Indian Oil are sold

through over 8,100 Indian Oil petrol/diesel stations, over 1,300 SERVO Shops and a

countrywide network of bazaar traders.

Indane LPGas

Indian Oil Indane LPGas is used in 40 Million homes

as cooking fuel and commands over 48% market share

in India. Indane LPGas is marketed through a network of 4350 Indane distributors.

Widely used in commercial sectors like industries, hotels & restaurants, medical labs, etc.

87 Indane Bottling Plants are spread across the country with a combined bottling capacity

of 3.77 MMTPA. New and convenient 5 kg Indane LPGas cylinders introduced in rural

and hilly regions for wider use by economically weaker sections. Indian Oil’s auto LPG

brand Autogas is the leader in the segment.

Marketed through a network 48 stations out of an industry total of 103 Auto LPG

Dispensing Stations.

IndianOilAviationService

Meets complete Aviation Fuel requirements of the

Defense Services and for over 75 Domestic and

International airlines besides private aircraft

operators. IndianOilAviation Services is ISO 9002

certified and entrusted with WIP refueling for

national and overseas dignitaries. Indian Oil’s prompt, courteous and 'No-Delay' Aviation

Fuel Service has received accolades from major customers. Always on call for providing

services in exigencies of war and peace.

Indian Oil Aviation Services has a market share of 65% with a network of 95 Aviation

Fuel Stations (AFS) Indian Oil Aviation Services is not only the largest aviation fuel

marketer in the country but also the most preferred supplier of jet fuel for customers in

India and abroad. Indian Oil Aviation Services serves over 71 International airlines

besides the domestic airlines in India. From Thiruvananthapuram in the South, to Leh in

the North. From Porbandar in the West to Ziro in the East.

Indian Oil Aviation Services covers India like no one else. In fact, every 1.6 minutes, an

aircraft is being refueled by Indian Oil Aviation Services, somewhere in the country. It

also caters to over 90% demand of the Indian Defense services, besides the sensitive

requirements of WIP flights at all the airports and at remote helipads/helibases across the

Indian subcontinent. Indian Oil Aviation Services not only maintains world-class

standards in operations and safety but also conforms to the stringent global quality

requirements of Aviation Fuel storage and handling.

Presently, Indian Oil has earned this accreditation for thirteen major Aviation Fuel

Stations including at all international airports. Eleven of the fourteen quality control

laboratories have also earned this accreditation. Indian Oil is also the first in India to have

adopted a Quality Control Index System based on a quality audit. Fourteen DGCA

approved Indian Oil laboratories spread across the country carry out full specification

tests for Aviation Fuels.

Indian Oil’s Aviation Services, with 68% market share, meets the fuel and lubricants

needs of domestic and international flag carriers, Defence Services and private aircraft

operators through 93 aviation fuelling stations. Between one sunrise and the next, Indian

Oil refuels over 900 aircrafts. In fact, the refueling never stops and neither does our

customer service, which is round the clock. The wing’s foreign exchange earnings during

the year 2002-03 touched Rs. 898 crore.

AutoGas

Autogas (LPG) has been introduced in Hyderabad,

Bangalore and Mumbai markets. This alternative

fuel is a good business proposition in the long term,

and Indian Oil intends to further expand its

marketing in a big way.

 

PremiumFuels

India's first 91 Octane petrol Xtra Premium reinforced with Multifunctional Additives for

Extra mileage -Greater Acceleration

Faster pick-up -Lower maintenance Costs

Longer engine life -Enhanced overall

performance

Eliminates engine knockings

India's leading Diesel Brand -XtraMile

Super Mileage and Super Pick-up

Enhances cleaning of engines

Minimizes exhaust emissions

Restores peak engine power and

acceleration

Reduces maintenance cost

Indian Oil’s branded

fuels Xtra Mile and

Xtra Premium have

made a significant impact in the petroleum retail market.

Xtra Mile, Indian Oil’s new generation High Speed Diesel with world-class additives has

taken a leadership position in the market.

The launch of premium fuels – Xtra Premium and Xtra Mile (originally IOC Premium

and Diesel Super respectively), marks a new beginning for Indian Oil and its customers.

Xtra Premium is, in fact, the only petrol in India with 91 Octane and doped with

Multifunctional Additives. The maiden launch of these branded fuels took place in Delhi

on Sept. 24, 2002. Subsequently, Xtra Premium sales have been extended to 200 cities

and 750 petrol & diesel stations, and Xtra Mile to 850 cities and 1750 petrol and diesel

stations by the end of the financial year 2003 – 2004

XtraPower

Indian Oil's Xtra Power Fleet Card Program is a

complete fleet management solution for Fleet

Owners / Operators and Corporate. Xtra Power 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. Every time

you fill your fleet with fuel & lubes using your Xtra Power fleet cards at designated retail

outlets of Indian Oil, you earn XTRA Points. You can exchange your accumulated

XTRA Points for attractive gifts from Xtra Power Rewards Catalogue including free fuel

& lubes. In short, the Xtra Power Fleet Card Program offers you, not just amazing

convenience & security but also an opportunity to translate all your dreams into a reality.

‘Swagat’ Highway Flagship Retail Outlets

To cater the high growth areas of National

Highways forming a part of Golden Quadrilateral

and N-S, E-W corridors, Indian Oil has launched

Flagship Outlets, which have been branded as

“Swagat” Retail Outlets.

The facilities in the Swagat outlets is designed for, Best Q&Q standards in the industry

through Retail Outlet site and tank truck automation Third party certification through

Bureau Veritas Fortnight sampling thru Quality Audit Officers Training through a

professional agency for the Dealer

Incentives available on fuel purchases in the form of loyalty points redeemable against

fuel/lubes and other rewards. Availability of Xtra Mile and Xtra Premium. Forecourt

standards: strict housekeeping and maintenance standards ensure consistence

performance in terms of service, on time, every time.

Non-fueling offering tailored to increasing driver comfort and productivity. Non-fueling

offering through ‘Best-in-class’ alliance on exclusive basis wherever possible

(communication, food/rest, healthcare, parking, vehicle care.)

There are 111 such ‘Swagat’ Flagship ROs planned across the country of which 45

‘Swagat’ Flagships have already been commissioned with a complement of fuel and non-

fuel.

XtraCare

The launch of Xtra Care was the culmination of a

series of plans in retail design, product and service

upgradation, capability training, automation, loyalty

programme, retail site management techniques all

benchmarked to global standards. While the

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

steps ahead by introducing fortnightly random sampling with specific importance given

to 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. In another pioneering move, the third party certification, by BV, is also being done,

for the first time, on a range of parameters that include hygiene, service, efficiency of

fore court, allied services and customer satisfaction.

The non-fuel services are being given a major fillip in the Indian Oil XtraCare plan with a

wide range of loyalty programme with –Xtra Rewards, Xtra Power and co-branded cards

like Indian Oil-Citibank credit cards. The automation project of XtraCare is by far the

most state-of-the-art in the country. The cutting edge technology includes automatic tank

level gauges, temperature sensors, density measurement sensors, back-office server with

DU controls, automatic bill printing facility, customer database, etc.

The Tank Truck automation - Sealed Parcel Delivery System (SPDS) - will also include

electronic locking of TTs carrying loads to these ROs. The real time density sensors and

the sealed parcel delivery system is superior to mere GPS-based tracking systems because

it not only tracks where the Tank Truck is but what is happening to the Tank Truck

consignments. SPDS ensures that the quality of the fuel would be ensured from “Supply

point to the Customers”.

As a precursor to the Indian Oil XtraCare launch, Indian Oil had recently introduced the

Platinum Circle and Gold Circle - top of the line, exclusive clubs for high selling retail

outlet dealers. These elite Indian Oil dealers have emerged as peer leaders and are an

integral part of the XtraCare dealer ‘sensitisation’ strategy.

During the year, Indian Oil has already introduced modern and dedicated networked

highway outlets with multifarious offerings, under the brand name ‘Swagat’ which are

Indian Oil’s flagship Retail Outlets. So far over 400 XtraCare ROs have been set up;

around 1500 XtraCare ROs will be ready by end 2006.

Prices of Petrol in 4 Metro cities

DATE DELHI* KOLKATA* MUMBAI* CHENNAI*

04.06.02 29.94 29.39 33.45 31.05

16.06.02 29.18 29.63 33.72 31.30

01.07.02 29.18 29.63 33.64 31.64

01.08.02 29.18 29.63 33.64 31.64

16.08.02 29.00 29.44 33.44 31.44

01.09.02 29.20 30.64 33.65 31.66

16.09.02 29.66 31.10 34.15 32.16

01.10.02 29.91 31.35 34.42 32.42

17.10.02 30.24 31.68 34.95 32.07

01.11.02 30.26 31.70 34.98 32.80

16.11.02 29.57 31.01 34.23 32.05

01.12.02 28.91 30.42 33.63 31.45

03.01.03 29.93 31.44 34.73 32.55

16.01.03 30.33 31.84 35.18 32.99

01.02.03 30.71 32.21 35.58 33.99

01.03.03 23.10 33.61 37.08 34.89

16.03.03 33.49 35.00 38.59 36.39

01.04.03 33.49 35.00 35.25 36.39

16.04.03 32.49 34.00 37.25 35.48

26.04.03 31.49 33.00 36.43 34.40

16.05.03 30.40 31.91 35.25 33.22

01.06.03 30.30 31.81 35.14 33.11

31.08.03 32.40 35.26 37.42 35.39

16.10.03 31.70 34.50 36.66 34.36

15.12.03 32.70 35.57 37.74 35.71

31.12.03 33.70 36.61 38.83 36.79

15.06.04 35.71 38.69 40.96 38.96

31.07.04 36.81 39.83 42.15 40.15

04.11.04 39.00 42.10 44.49 42.51

15.11.04 37.84 40.89 43.23 41.25

01.04.05 37.99 40.89 43.23 41.25

20.06.05 40.49 43.79 45.93 44.26

06.09.05 43.49 46.90 49.16 47.49

05. 06.06 47.51 51.07 53.50 51.83

20.06.06 46.85 51.07 52.71 51.83

29.11.06 44.85 48.99 50.58 49.67

15.02.07(Applicable

Midnight onwards)42.85 46.91 48.45 47.51

*(Rs/ Litre)

Revised Prices of Petrol and Diesel at State Capital Towns

RETAIL SELLING PRICES AT

STATE CAPITALS

  WEF 16.02.07

  MS(Petrol) HSD(Diesel) 

NORTH  

 

NEW DELHI 42.85 30.25

AMBALA 43.47 30.34

CHANDIGARH 44.09 30.62

DEHRADUN 44.59 32.71

JAIPUR 46.50 33.08

JULLUNDER 46.93 30.08

JAMMU 44.79 31.00

LUCKNOW 46.43 33.67

SHIMLA 45.19 31.25

SRINAGAR 46.14 31.94

EAST 

KOLKATA 46.92 32.89

AGARTALA 42.87 30.40

AIZWAL 42.68 30.27

BHUBHANESWAR 44.58 33.52

GANGTOK 45.67 33.24

GUWAHATI 45.53 31.39

IMPHAL 42.16 30.17

ITANAGAR 42.91 30.43

KOHIMA 43.31 30.49

PATNA 46.51 32.99

PORT BLAIR 37.82 29.21

RANCHI 43.99 33.02

SHILLONG 43.19 30.57

WEST 

MUMBAI 48.45 34.97

AHMEDABAD 47.76 35.22

BHOPAL 47.00 35.56

PANJIM 44.38 33.20

RAIPUR 44.83 34.14

SOUTH 

CHENNAI 47.51 33.32

BANGALORE 50.68 35.27

HYDERABAD 48.85 33.83

PONDICHERRY 41.92 31.76

TRIVANDRUM 46.05 33.73

       

Crude Oil Prices

Monthly published prices of Crude Oil

(Figs. in $/bbl)

Month Year Brent Dubai Indian BasketApril 2004 33.25 31.68 32.36

May 2004 37.80 34.74 36.09

June 2004 35.04 33.43 34.22

July 2004 38.32 34.65 36.35

August 2004 43.04 38.55 40.53

September 2004 43.25 35.55 39.15

October 2004 49.64 37.54 43.37

November 2004 42.84 34.87 38.82

December 2004 39.53 34.20 36.65

January 2005 44.23 37.92 41.00

February 2005 45.37 39.87 42.58

March 2005 52.91 45.84 49.27

April 2005 51.82 47.20 49.43

May 2005 48.56 45.40 47.02

June 2005 54.39 51.08 52.72

July 2005 57.58 52.83 55.01

August 2005 64.12 56.60 60.02

September 2005 62.91 56.54 59.91

October2005 58.61 53.96 56.28

November 2005 55.18 51.39 53.14

December 2005 56.91 53.20 55.05

January 2006 63.05 58.44 60.54

February 2006 60.12 57.61 58.95

March 2006 62.10 57.82 60.01

April 2006 70.16 64.06 67.02

May 2006 69.83 65.00 67.41

June 2006 68.69 65.22 66.95

July 2006 73.66 69.17 71.36

August 2006 73.11 68.77 70.84

September 2006 61.71 59.82 61.04

October 2006 57.80 56.42 57.27

NA*= Not Available

Rest and Refreshment Dhaba

  Dormitory, Toilets/Bathing facilities

Communications STD/ Fax facilities

Health care Health checkup for STD thru a tie-up with Gates Foundation

Security Secured Parking Space

Vehicle Care OEM Service Station in alliance with Tata Motors Limited

C-Store Convenience store thru alliance partners of choice

Company Profile with 7’S Model

According to Waterman, Organizational change is not simply a matter of structure

although structure is a significant variable in the management of change. Again it is also

not a simple relationship between strategy and

structure, although strategy is also critical aspect. In their view effective

organizational changes may be understood to be a complex relationship

between strategy, structure, system, style, skill, staff and shared values

(Super Ordinate Goals). The complex relationship is diagrammatically

presented in Figure

1. Strategy

It refers to set of decisions and action aimed at gaining a sustainable competitive advantage.

VISION

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

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

distribution.

MISSION

Structure

Strategy

System

Style

Staff

Skills

Shared

Values

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.

IndianOilPeople...

 towards Excellence...

Company Objectives

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

consistent with Government policies.

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

efficiently.

To earn a reasonable rate of interest on investment.

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

To create a strong research and development base in the field of oil refining and stimulate the development of new product formulations with a view to minimize/eliminate their imports and to have next generation products.

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

To optimize utilisation of its refining capacity and maximise distillate yield from refining of crude to minimise foreign exchange outgo.

To minimise fuel consumption in refineries and stock losses in marketing operations to effect energy conservation.

To further enhance distribution network for providing assured service to customers throughout the country through expansion of reseller network as per Marketing Plan/Government approval.

To avail of all viable opportunities, both national and global, arising out of the liberalisation policies being pursued by the Government of India

To achieve higher growth through integration, mergers, acquisitions and

diversification by harnessing new business opportunities like petrochemicals,

power, lube business, consultancy abroad and exploration & production

Obligations

Towards customers and dealers

To provide prompt, courteous and efficient service and quality products at fair

and reasonable prices.

Towards suppliers

To ensure prompt dealings with integrity, impartiality and courtesy and promote

ancillary industries.

Towards employees

Develop their capability and advancement through appropriate training and career

planning.

Expeditious redressal of grievances

Fair dealings with recognised representatives of employees in pursuance of

healthy trade union practice and sound personnel policies.

Towards community

To develop techno-economically viable and environment-friendly products for the

benefit of the people.

Encourage progressive indigenous manufacture of products and materials so as to

substitute imports.

To ensure safety in operations and highest standards of environment protection in

its manufacturing plants and townships by taking suitable and effective measures.

Towards Defence Services

To maintain adequate supplies to Defence Services during normal and emergency

situations as per their requirement at different locations.

Financial Objectives

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

annual Dividend on its equity capital.

To ensure maximum economy in expenditure.

To manage and operate the 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

activities of the Corporation.

To endeavor to reduce the cost of production of petroleum products by means of

systematic cost control measures.

To endeavor to complete all planned projects within the stipulated time and cost

estimates.

2. Structure

The design of organizational structure is a critical task of the top management of an organization. It is the selection of the whole organizational. Organizational structure refers to the relatively more durable organizational arrangements and relationships. It prescribes the formal

relationship among various position and activities. Arrangements about reporting relationships, how an organizational member is to communicate with other members, what role he is to perform and what rules and procedures exist to guide the various activities performed by members are all part of the organizational structure.

Organizational Structure Performs The Following Major Functions

The overall responsibility for the safe and efficient operations at the

location shall rest with the location in charge. However all the officers working at the

location shall have the following functions as entrusted by the location in charge from

time to time.

i] Implement all the statutory requirements related to receipts storage and

dispatch of products.

ii] Impart adequate training to all subordinates enabling them to perform

their duties satisfactorily.

iii] Develop and maintain good relationship with all customers and other

connected agency.

iv] It undertakes a wide variety of activities through devices such as

departmentalization, specialization, division of labor of delegation of

authority.

In Indian Oil Corporation Ltd., structure is flexible enough to counter any balance

of the external environment. This will help in the smooth functioning of the company.

The company is also having regional office at and to takes any situation in the external

environment.

The general manager of company is in a position to control the activities of

different department on the organization. For taking the entire problem he meet the

knowledge of about both technical and managerial knowledge.

The employees of each department is responsible for the activities done in their

respective departments and answerable and reporting to the department

manager.

In the organization the department manager comes under the top management

level. Under these position the operation officer, account officer and sales officer are

present they comes under the middle level management and other workmen, clerks,

security guards comes under the lower level management of the organization.

In Indian Oil Corporation of each department is interlinked with other

departments has to maintain a good control with other departments.

3. System

System refers to all the rules, regulation and formal procedure and informal that complement organizational structure. It includes buying and selling, planning and control system, capital budgeting system, recruitment, training and development schemes. Unloading diesel from road / rail tankers and pumping to diesel storage tanks.

In Indian Oil corporation Ltd., there is a separate department to plan and control

the buying activities in this department the organization has to

account for how much oil the trucks have to bring. The buying is planned according to

the capacity of sales from each department.

Recruitment is the process of searching prospective employee and the

recruitment of employees are carried out at the Regd Head Office, Mumbai in the

Human Resources Department. In case of vacancies or in case of

appointing from outside, Indian Oil Corporation recruit people from reputed

educational institution on some times it will be published in newspaper. They are

conducting written test and interview. The qualified suitable candidate is

selected to the right job.

Training & Development

Indian Oil Corporation takes up training and development activities in an integrated

way, which includes all levels of employees. Training needs of

various levels of employees are assessed on the basis of manpower

planning. Discussions are also held between manager and employees for

assessing training needs.

1. All the personnel selected for operation department shall be thoroughly

trained before getting independent assignments especially for the

automated terminals.

2. The location in charge will ensure that all other personnel working. In the

working location receive adequate training in all functions of operations.

3. They conduct lecture and meetings.

4. The minimum period of training varies from a week to a month. (According to the

nature and complexity of the job)

The organizations computer-training program for staff and officials is being conducted for employees of maintenance departments and are trained under skill development programs.

The company also offers refreshers courses for supervision, senior

supervisions and managers. Functional courses are offered in the areas of job safety at the

work place, work simplification, systematic management.

There are occasional programs on specification areas like manpower

planning, performance appraisal etc.

4. Style

Style of an organization is the evident through the patterns of actions

taken by the member of the top management team over a period of time.

Reporting relationships may also convey the style of the organization.

Leadership Style of Managers of Indian Oil Corporation Ltd.

• Maintain discipline in the organization.

• Gives instructions and Orders to the subordinates.

• Listened to subordinates and responds to their needs.

• Takes important decisions for the group.

• Maintain unity in the organization.

• Inspires and motivates the various members of his group.

• Achieve or formulate objectives for his groups.

• Maintain communication in the organization.

Indian Oil Corporation has its own style of running the organization. In the order

of the Indian oil corporation Ltd., every manager plays a vital role

(Top Management). The manager of the department takes all the plans, policies,

procedure etc.

The department heads like marketing, security, finance, R&D, HR, and buying

has the authority to take decisions regarding their department. It is said, “Whenever some

responsibility is given some authority should be given”. Like marketing manager takes

decisions regarding sales of outlet, dealers of different marketing strategies. Like this

finance manager takes the decision regarding preparing Profit and Loss a/c and Annual

Report of the corporation.

Indian Oil Corporation have very good quality circle program through

which the employees and workers are allowed to discuss any existing problem or can

give suggestion regarding any problems to the department manager. This will built

healthy relationship between manager and subordinates and workers. The

entrance of Indian Oil Corporation is separately having board that reads that every

worker, driver or any outsider has to meet the manager for their

problems.

5. Staff

Staffing is the process of acquiring human resource for the organization and

assuring that they have potential to contribute to the achievement of the

organization goals. Staffing includes the selection, placement, training and

development of appropriate qualified employees.

In Indian Oil Corporation Ltd., a standard selection process has the

following steps screening application forms, selection test interview,

physical examination checking of references and placement.

Placement

After a candidate is selected for employment, he is placed on the job.

Initially the placement may be on probation, the period of which may extend from six

months to one year. After successful completion of the probation period, the candidate

may be offered permanent employment in the corporation.

Fresh appointments will normally be on the minimum of the grade to

which the appointment is to be made.

Pay on Promotion

An officer of IOC on promotion will be granted a national increment in the existing lower scale pay thereafter will be the next higher stage in the higher pay scale.

In Indian Oil Corporation Ltd., for giving training and development for employees, there

is a separate department at the Regional office. It arranges several training programs

within the organization to both top level and the subordinates on the subjects that is

helpful to the employees of all and freshers to develop their skill efficiently and

effectively.

The total no. of officers in the corporation are 200.

6. Skills

Skills refers to an organization dominant capabilities and competence

with employee. Every organization needs to have well trained and

experience people to perform the required activities. A skill is an individual

ability to translate knowledge into action.

The Indian Oil Corporation Ltd., has been giving importance to the supply and to buying

of the products or oils which is of superior quality. The aim of organization is to provide

quality to their customer satisfaction, consistent quality to all and competitive price to

every one of public. The company conducts different training program to employees in

order to meet the quality of product / oil the depot manager is also responsible of doing

the work in the organization. He has to take an active part in the working of each

department. The organizations success depends on the skills of the employees.

Indian Oil capabilities in downstream sector of operations in the oil sector include

• Technology service

• Oil and Maintenance

• Technology feasibility

• Inspection

• Quality Control

• Research and Development

• Shipping and Commercial

• Safety

• Quality Auditing

• Training

• Marine Oil Technology.

7. Shared Values

It refers to set of values and aspiration that goes beyond the

conventional formal statement of corporate objectives. The organizational

cultures can be viewed as system of shared values.

In Indian Oil Corporation every employee has to participate in taking the decision in the

organization.The employees of the Indian Oil are doing good work and their efforts i.e.

full utilization. The finance department has to maintain proper accounts. The main aim of

employee is to develop the organization, their activities and their public service with

efficiently.

The people of IOCL also gives good service to the outsiders like customers, servo lube

used by all automotives, LPG indane used in million homes for cooking, aviation fuel for

defense service, domestic service, private and international airlines, autogas for eco drive

in the cities, premium fuel for vehicles xtra power cards covering insurance and cashless

purchase of fuel and lubes, swagath outlets, xtra care providing rest refreshments

communication and health cares, retail outlets and K.S.R.T.C. etc., services in time,

which they have, approach again to the organization. They have to provide quick service

to public sectors

SWOT ANALYSIS

STRENGTH:

First largest refining, marketing and retail fuel pumps.

Highest refining capacity.

Obvious, have 8,000 km networks of pipelines, of crude oil and its products

across the country.

Rising, gross turn over every year without looking backward (2003-04

Rs.130391.59crores, 2004-05 Rs.150928.16crores)

Good record of accomplishment of timely execution of projects and avoiding cost

over runs.

Consistent high levels of capacity utilization.

Availability of necessary infrastructure.

Appropriate corporate philosophy and R&D.

Good manufacturing practices, Quality assurance and control.

Facility of wide distribution network, product and process development.

Good brand and corporate image.

WEAKNESS

Dependant on refineries of other oil companies from different countries such as

Iraq, Lubrizol, Nyco SA, etc.,

Needs more flexibility in management to take and speed up the decision-making.

Growing Union pressure.

Problems of delegation of authority.

Improvement in managerial expertise, skills and training.

OPPORTUNITIES

Growth in passenger cars, two wheelers, transportation vehicles like trucks.

Replacement of conventional cooking fuels including kerosene in urban and rural

areas or regions by LPG.

Increase in Airline players in the Indian Airline industry

Consistent profits help IOC to invest more in technology improvements to meet

the global needs

Acquisition of additional outlets and addition of pipelines, increase in sales and

refining provides improvement in market share.

To grow market share in the deregulated and high margin lubes business.

IOCL’s joint ventures with foreign giants abroad helps the company to go global

Liberalization allowed IOCL to operate globally in countries such as Lanka

(LIOC) and Mauritious Ltd. (IOML).

THREATS

Increasing competition in the refining sector with commencement of new

refineries like Reliance petroleum’s 27 MMTPA Jamnagar refinery and Essar Oil

Ltd., they have also started their new outlets with new technology which is not

only an threat to IOC and also to the other petroleum companies.

Dismantling of APM, means no more assured returns. [APM – Administered

Pricing Mechanism] this affects all petroleum companies.

Now another threat is increase in 30ps in Xtra premium petrol from 19-06-2005.

Which came into practice on 20-06-2005, may also affects in reduction or slight

Reduction of sales of premium petrol.

Competition is bound to be increased by upcoming private players like Reliance

petroleum.

Threat from MNC entrants in domestic lubricants market.

Threat of poaching (Adulterants) of retail outlets and dealers.

Political instability hence changes in their rules, policies, and regulations, in

taxes, in duties and in import reservation licensing

CHAPTER-4

ANALYSIS AND INTERPRETATION OF DATA

Age group No. of respondents Percentage

<25 14 14%26-40 58 58%41-50 22 22%>50 06 6%

Interpretation: The above table showing the age categories of the fuel users.

Analysis: Above 58% of the respondents of the survey were between 26-40 of age and second most respondents were between 41-50. There were only 6% respondents of above 50.

4.1 Are you the customer of the petroleum fuel?

Yes No100 0

Analysis: All the 100 respondents were fuel users.

4.2 Which vehicle and fuel do you use?

Petrol Diesel

72 28

Interpretation: Above 72 respondents were users of Petrol and the rest 28 respondents were users of diesel.

Petrol72%

Deisel28%

Petrol

Deisel

4.3 Are you aware about branded fuels?

Aware Non aware97 3

Interpretation: 97 respondents were aware about the branded fuel. Only few i.e. 3 respondents were non aware about the branded fuel.

Aware97%

Not aware3%

Aware

Not aware

Analysis: Majority of 97% respondents were aware about the product. So the branded fuel is having good awareness in the market.

4.4 Have you ever used BRANDED fuel?

Users Non users83 17

Interpretation: Above 83 respondents were using branded fuel and rest very few respondents were using ordinary fuel.

Users83%

Non users17%

Users

Non users

4.5 Which BRANDED fuel do you use presently?

Brands No. of users

Extra premium 39

Speed 14

Power 16

Reliance 12

Shell 19

Interpretation: Above 39 respondents were using Xtra premium fuel and 14

were Speed users, 16 were using Power, Reliance users 12 and 19

respondents were using Shell fuel.

No. of respondents

05

1015202530354045

Xtrapremium

Speed Power Reliance Shell

Brands

No. of users

4.6 Have you been satisfied with BRANDED fuels?

Satisfied Non-satisfied

62 38

Interpretation: There were 62% respondents were satisfied with branded

fuels and 38% respondents were not satisfied with the branded fuel.

Satisfied62%

Non satisfied38% Satisfied

Non satisfied

4.7 In your opinion what are the attributes you expect from BRANDED

fuel than GENERIC fuels?

Attributes Percentage

Mileage 54

Engine safety 26

Power 6

Speed 4

Other attributes 10

Interpretation: Here respondents were open to tell about attributes that they

expected from Branded fuel and most of them were expecting more mileage

from branded fuel.

Percentage

54%

26%

6%

4%10%

Mileage

Engine safety

Power

Speed

Other attributes

4.8 Can you give rates for the BRANDED FUEL attributes which you

consume?

[{10RATED SCALE} 10 minimum 100 maximum]

Mileage Speed Power Engine

safety

Overall

performance

Xtra

premium

70 20 20 30 40

Speed 40 40 20 30 30

Power 50 20 50 20 40

Reliance 70 30 20 40 50

Shell 80 30 30 50 60

Interpretation: Above table shows that mean of rates that respondents were

given to the attributes regarding different branded fuels. Here we can

observe that Shell is leading regarding most expected attribute i.e. Mileage.

Xtra premium and Reliance also giving tight compition

Xtra Premium

Xtra premium attributes

0

10

20

30

40

50

60

70

80

Mile

age

Speed

Power

Engin

safte

y

Overa

ll per

form

ance

attributes

Series1

Respondents were satisfied towards mileage of Xtra premium fuel but they

were not much satisfied about the other attributes.

SPEED

Speed attributes

0

10

20

30

40

50

60

70

80

Mile

age

Speed

Power

Engin

safte

y

Overa

ll per

form

ance

attrtibutes

Series1

Respondents were not much satisfied about any attributes of Speed Branded

fuel.

POWER

Power attributes

0

10

20

30

40

50

60

Mile

age

Speed

Power

Engin

safte

y

Overa

ll per

form

ance

attributes

Series1

Here respondents were having average satisfaction towards attributes like

mileage and power

RELIANCE

Reliance fuel attributes

0

10

20

30

40

50

60

70

80

Mile

age

Speed

Power

Engin

safte

y

Overa

ll per

fom

ance

attributes

Series1

Respondents were satisfied about mileage and overall performance but they

were not much satisfied about other attributes of Reliance branded fuel.

SHELL

Shell fuel attributes

0

10

20

30

40

50

60

70

80

90

Mile

age

Speed

Power

Engin

safte

y

Overa

ll per

form

ance

Attributes

Series1

Comparing with other branded fuel’s attributes respondents was having

better satisfaction towards Shell branded fuel.

TOTAL COMPARISION

Brands Sum of attributes

Xtra premium 180

Speed 160

Power 180

Reliance 210

Shell 250

Interpretation: The above table shows that the sum of rates that given by the

respondents to different attributes of different brands.

Comparision of brands

18%

16%

18%21%

27%Xtra premium

Speed

Power

Reliance

Shell

4.9 If you have given a chance to switch over to another brand?

Yes No

32 68

Interpretation: Above table shows that 32% respondents were looking for

switch over to another brand and the maximum of 68% respondents wants to

use the same product.

Yes32%

No68%

Yes

No

SPECIFIC FINDINGS:

1) 32% of respondents of south zone of Bangalore were looking for switch over from

present using brands. They were not satisfied with present using brand.

2) It was found that the product quality and the features of XTRA PREMIUM petrol are

inferred to through the various analyses done on the respondents view and their reactions.

The majority of the respondents feel that XTRA PREMIUM fuel gives more mileage

rather than ordinary fuels or other branded fuels. And also it is facing a stiff competition

from RELIANCE and SHELL regarding the same attributes.

3) Xtra premium fuel has good brand equity. The brand got total sum of 180 regarding

their attributes from respondents.

4) Respondents were attracting towards other branded fuels but Xtra premium is available

in all most all the outlets and also Indian Oil has more outlets.

5) Respondents were satisfied towards the mileage given by Xtra premium fuel. But they

were not much satisfied about the other attributes like, acceleration, engine safety, Pick

up/ power and overall performance.

6) Mileage is the most expected attribute from branded fuels.

7) There were 38% of respondents were non-satisfied with branded fuels.

8) It was found that, the youth are more aware and have greater

Knowledge about branded petrol. It is also found that a majority of the 58% of the

respondents were youth who were aware about the various branded petroleum products

and about the XTRA PREMIUM branded petrol.

9) And also among the top brands of petrol provider in the market, INDIAN OIL is the

company that is most preferred and used among the respondents. Also the awareness

among the respondents (58) remains highest in INDIAN OIL.

10) It is found that the branded fuel is preferred and has brand value on the basis of the

respondent’s opinion,

> The mileage > speed > power> Engine safety> overall performance> Cost of

effectiveness > Lower maintenance cost > etc.

The respondent's look into the various attributes, which their vehicle is best suited for,

and in a country like India it is inevitable to provide the best of all the above.

11) It was found that, quality of branded fuel satisfactory for the majority and only a

small sum of people says that the quality needs improvements. A majority of 62% of the

respondents satisfied with the branded fuel.

GENERAL FINDINGS

1) Majority of the respondents are satisfied by the offerings of the INDIAN OIL

company.

2) The brand of XTRA PREMIUM is satisfied product in the view of the respondents.

3) The promotion and the various advertising campaigns are good source for creating

more strength for brand equity.

4) The respondents are happy with the XTRA PREMIUM attributes of better mileage;

engine safety and overall performance.

6) It is found that the respondents have a complaint on the pricing of the petrol and the

cost effectiveness of it.

7) It was found that the availability of the XTRA PREMIUM branded fuel is very

often and available in almost all the INDIAN OIL petrol bunks.

8) It is found that XTRA PREMIUM brand of petrol is perceived to be expensive.

9) Increased demand for the petrol in the market and calculated supply: Over the years

it has been found that there has been a constant rise in the demand of the petrol and its

products. With the rising competition in the retail sector of sales in petroleum industry

there has been subsequent and calculated supply to ensure the profitability and

maintenance of the demand-supply ratio.

10) XTRA PREMIUM is having strong brand equity in a large segment of people: with

the constant marketing activities and campaigns conducted and done by the company has

reflected in the success of creating awareness of its products in the mind of consumers.

11) It is also found that the level of awareness is not only restricted to the brand name and

the company it is from, but also by the product quality and the features of such branded

petrol.

12) Another very interesting fact that is found in the research is that the people owning

vehicles are the people who are the most aware of the branded petrol and the various

players in the market

13) The reason on the preference of the branded petrol is found from the various

promotional strategies and the level of awareness among the general customers.

14) It is interesting to know that the segments of people who are aware of the branded

petrol are students. It is found that the student community because of their limited

financials and their expenses being very calculated are more aware of the branded petrol

and the usage or features of the same.

RECCOMENDATIONS AND SUGGESTIONS:

.There was 32% of respondents looking for switch over to another brand. So

Indian Oil should concentrate and develop strategy to capture those customers.

Xtra premium fuel has good brand equity. But it is facing a tight competition from

Shell and Reliance. So they must give concentrate on different attributes that

customer expects from branded fuels. If they overcome from that definitely brand

equity of the Xtra premium fuel will become topper.

Respondents were not much satisfied towards other attributes of branded fuel i.e.

acceleration, pick up/ power and overall performance. So company must try to

improve that attributes.

It is found that among the top brands of petrol provider in the market, INDIAN

OIL is the company that is most preferred and used among the respondents. Also

the awareness among the respondents remains highest.

The reason on the preference of the branded petrol is found from the various

promotional strategies and the level of awareness among the general customers.

Therefore the company should continue its promotional strategies and also should

give more concentration on the competitive attributes of the branded fuel.

The consumption of petrol among the Indian crowd is varied and is largely

dependent among the various factors. Therefore the company should take into

considerations the various types and form of opinions of the consumers and their

style, tastes and difficulties.

It was found that the XTRA PREMIUM branded fuel is preferred and has strong

brand equity on the basis of the respondent’s opinion

o • The mileage

o • Speed

o • Power

o • Engine safety

o • Overall performance etc.

The respondent's look into the various attributes, which their vehicle is best, suited for.

The company should continue to adopt this approach and must try in creating more

awareness.

The XTRA PREMIUM brand of petrol is available very frequently and the

research shows a majority results in its availability. The company should continue

to give the same results and encourage its availability in every possible place.

The company must concentrate on the better service in the petrol bunks. This

research found that lots of customers are attracted towards SHELL because of

their excellent service in the bunks. So IOCL must give importance to the service.

CONCLUSION

The research conducted revealed lot of insights about the branded petroleum fuels and its

market potential. The study on Brand equity emphasized a lot in knowing the Premium

branded petroleum customers.

Presently INDIAN OIL CORPORATION has created a lot of brand awareness in the

market and is successfully changed the market potential and the customers towards the

consumption of branded fuels also IOCL has implemented many promotional activities

for its products and services and has been successful in its implementation, this was the

unique observation and the learning that has provided for the research conducted in the

south zone of the Bangalore. Branded fuels such as XTRA PREMIUM and other have

strong brand equity comparing to its competitors.

From this research it can be conclude that the INDIAN OIL CORPORATION’S

branded fuel XTRA PREMIUM is doing considerably well in the market and the

customers are aware about it.

The whole project which was undertaken in Indian Oil Corporation Limited, Bangalore

was a great experience for me. This provided me an opportunity to understand corporate

world and the external environment, which is very different from our theoretical

prospective and studies.

To conclude with, I should say that the project enlightened me with each and every

aspects of the market. I hope that the efforts made by me to formulate the strategies and

approaches will surely benefit the growth of Indian Oil Corporation’s Xtra premium.

BIBLIOGRAPHY

L.NO NAME OF AUTHOR PUBLISHER EDITION

THE BOOK

1. Marketing Philip Kotler Prentice-hall 2003

management of India pvt. (11th)

(11th edition) Ltd.

2. Consumer Suja R. Nair Himalaya 2004

behaviour publishing

house

3. Consumer Leon.G.Schiffman Prentice-hall 7th edition

behaviour Leslie Lazar of India pvt.

Kanuk Ltd. 2003

4. Share holders loci loci 2005

review

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