KARNATAKA UNIVERSITY, DHARWAD

INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH, HUBLI.

Summer Implant Project (SIP)

A report on

Customer Satisfaction Survey

Towards DRIVE TRACK PLUS PROGRAM

At

Hindustan Petroleum Corporation Limited

Regional Office Belgaum

Submitted to

KARNATAKA UNIVERSTIY, DHARWAD

in partial fulfilment of the requirement for the award of degree in

MASTER OF BUSINESS ADMINISTRATION

carried during the academic year 2013-14

Submitted by:

HUSAIN FAIROZ B BAHAMANI

Registration No: MBA131261007

INTERNAL GUIDE:

Prof. Dr. ARUN BABU ANGADI

HOD and Associate Professor

MBA Dept

IBMR, Hubli

EXTERNAL GUIDE:

Mr. GAURAV MALIK

Marketing Officer

HPCL Regional Office Belgaum

Ref. No. KU/IBMR/2014/

Date: 16-08-2014

CERTIFICATE

This is to certify that HUSAIN FAIROZ B BAHAMANI, Reg. No.

MBA131261007 student of 2nd semester of our Institution has completed

Summer Internship Program (SIP) during the academic year 2013-2014 at

“Hindustan Petroleum Corporation Limited” entitled “Customer

Satisfaction Survey towards DRIVE TRACK PLUS Program” in partial

fulfillment of Master of Business Administration degree as prescribed by

Karnatak University, Dharwad.

Dr. Rajendra C. Malowade

Director, IBMR

External Examiner:-

1.______________________ 2.______________________

Ref No: IBMR/MBA/2014/ Date: 16-08-2014

CERTIFICATE

This is to certify that, HUSAIN FAIROZ B BAHAMANI, Reg. No.

MBA1312161007 is a bonafide student of this Institute has completed Summer

Internship Program (SIP) under my guidance during the academic year 2013-

2014 at “HINDUSTAN PETROLEUM CORPORATION LIMITED”. He

has prepared and submitted the project assigned to him, namely “Customer

Satisfaction Survey Towards DRIVE TRACK PLUS Program”

Arun Babu Angadi

Assistant Professor and HOD MBA Dept

IBMR, Hubli.

DECLARATION

I Husain Fairoz B Bahamani student of MBA 2nd sem, Institute of Business

Management and Research, Hubli, hereby declare that the project work entitled

“Customer Satisfaction Survey” carried out at “Hindustan Petroleum

Corporation Limited Regional Office Belgaum” is submitted to Karnataka

University Dharwad through the Institute of Business Management and Research,

Hubli, in partial fulfilment of the requirements for the award of the Master of Business

Administration degree. This project report is a bona fide work prepared by me under

the guidance of Prof. Dr. Arun babu Angadi HOD MBA Dept of Institute of

Business Management and Research, Hubli. The findings and suggestions of this

project report are based on the information collected by me during the period of my

study.

To the best of my knowledge and belief, the matter presented in this report has not

been submitted previously in part or full to any university for the award of any

degrees.

Date: 16/08/2014 Husain Fairoz B Bahamani

Place: HUBLI MBA131261007

ACKNOWLEDGEMENT

I wish to express my heartfelt thanks to all those who were involved in completion of

my project.

First of all I wish to express my sincere thanks to our respectable Dean and Director

Dr. Rajendra C. Malowade who has fully supported and encouraged me in this

venture.

It is my privilege to have accomplished this study under the guidance of my guide,

Prof. Dr.Arun Babu Angadi HOD and Associate Professor MBA Dept for taking keen

interest and full involvement, dynamic motivation and valuable guidance extended to

me throughout the project.

I wish to thank Hindustan Petroleum Corporation Limited Regional Office Belgaum

and Mr. S S Patil (Chief Regional Manager Retail), and Mr. Gaurav Malik (Marketing

Officer Belgaum RO) my external guide and all the employees of the organization for

guiding and helping me in completing this project successfully.

My sincere and affectionate regards to my parents for the immense support which

encouraged me to conclude this project on time.

I wouldn’t forget to thank all my faculty members of the Institute, friends and

everybody for their kind co-operation and help in this matter.

HUSAIN FAIROZ BAHAMANI

MBA131261007

Contents

SI.

NO TOPICS PAGE NO

1

Executive Summary

1

2

Company Profile:

Brief about the company

Brief about the organisation structure

Company’s Vision, Mission and Objectives

2 – 26

27 – 33

34

3

About the project

a)Objective of the study

b)Scope of the study

c)Limitation of the study

35 – 53

54

54

4

Research Methodology of the project

a) Primary Data

b) Secondary Data

c) General Approach

55 – 56

56

56

5

Conceptual Framework

A Review of Earlier Research studies conducted

57

6

Analysis, Findings and suggestions

SWOT analysis

59 – 68

69

7 Conclusion 70 – 71

8 Reference 71

9 Questionnaire 72 – 76

Executive Summary

As a part of fulfilment of the MBA course at Institute Of Business Management &

Research (IBMR) Business School, Hubli, SIP was undertaken with the Hindustan

Petroleum Corporation Limited.

This study is to analyse and know the customer satisfaction towards Drive Track Plus

Program. In this survey of customer satisfaction the statistics are compared with competitors’.

This survey helped me to experience practical functioning of this organization and to gain

knowledge about the product & services and distribution channels of Hindustan Petroleum

Corporation Limited.

This project is specially designed to understand the subject matter of customer satisfaction

about the product and services of the Organization.

The purpose of training was to have a practical experience of working in an organization

and to have exposure to the various management practices in the field of marketing. This

training also has given me an on the job experience of marketing.

This project is very useful for those who want to know about the company and marketing

strategies of the company.

For making satisfactory progress an organization need to make sure that their product is

developing along with the market, if a product is developing well, then income should

increase, if not then the marketing strategy should be revised. An organization should always

know what is happening within their designated market, if it is changing, saturation,

technological advances, slowing down or rapidly growing, being up to date on this is

essential for companies to survive.

Introduction

Hindustan Petroleum Corporation Limited

HPCL is a Government of India Enterprise with a Navratna Status, and a Forbes 2000

and Global Fortune 500 company. It had originally been incorporated as a company under

the Indian Companies Act 1913. It is listed on the Bombay Stock exchange (BSE) and

National Stock Exchange (NSE), India.

HPCL has an annual sales/income from operations of Rs 2,32,188 Crores (US$ 38.75

Billions) during FY 2013-14, having about 20% Marketing share in India among PSUs and a

strong market infrastructure. HPCL's Crude Thruput and Market Sales (including exports) are

15.51 Million Metric Tonnes (MMT) and 30.96 MMT respectively in the same period. It

operates 2 major refineries producing a wide variety of petroleum fuels & specialties, one

in Mumbai (West Coast) of 6.5 Million Metric Tonnes Per Annum (MMTPA) capacity and

the other in Vishakhapatnam, (East Coast) with a capacity of 8.3 MMTPA. HPCL holds an

equity stake of 16.95% in Mangalore Refinery & Petrochemicals Limited, a state-of-the-art

refinery at Mangalore with a capacity of 15 MMTPA. In addition, HPCL has constructed a 9

MMTPA refinery at Bathinda, in Punjab, with Mittal Energy Investments Pvt. Ltd. . as

a Joint venture.

HPCL also owns and operates the largest Lube Refinery in the India producing Lube

Base Oils of international standards, with a capacity of 428 TMT. This Lube Refinery

accounts for over 40% of the India's total Lube Base Oil production. Presently HPCL

produces over 300+ grades of Lubes, Specialities and Greases.

HPCL's vast marketing network consists of 13 Zonal offices in major cities and 101

Regional Offices facilitated by a Supply & Distribution infrastructure comprising Terminals,

Pipeline networks, Aviation Service Stations, LPG Bottling Plants, Inland Relay Depots &

Retail Outlets, Lube and LPG Distributorships. HPCL, over the years, has moved from

strength to strength on all fronts. The refining capacity steadily increased from 5.5 MMTPA

in 1984/85 to 14.8 MMTPA presently.

HPCL has earned "Excellent" performance from FY1991-92 (basis signing of the first

MOU with the Ministry of Petroleum & Natural Gas, GOI in FY 1991-92), till FY 2012-13,

except for the single FY 2006-07, when it was adjudged as Very Good. HPCL has won the

prestigious MOU Award for the year 2007-08 for Excellent Overall Performance, and for

being one of the Top Ten Public Sector Enterprises who fall under the 'Excellent' category.

HPCL has also earned the TOP PERFORMER status for two consecutive FY 2011-12 and

2012-13, as the topper in the MOU ratings, in the Oil Industry.

Consistent excellent performance has been made possible by highly motivated workforce

of over 11,000 employees working all over India at its various refining and marketing

locations. View Past Annual Reports to know more about HPCL. The RTI Information

Manual provides various details about the operation of the Corporation.

HPCL continually invests in innovative technologies to enhance the effectiveness of

employees and bring qualitative changes in service. Business Process Re-Engineering

exercise, creation of Strategic Business Units, ERP implementation, Organizational

Transformation, Balanced Score Card, Competency Mapping, benchmarking of refineries and

terminals for product specifications, ISO certification of Refineries and Supply Chain

Management are some of the initiatives that broke new grounds.

HPCL has successfully integrated Information Technology in its activities at different

levels. The Enterprise Resource Planning (ERP) system is now operational on J.D.Edwards,

an Oracle product, across the Corporation.

Registered Office & Corporate Headquarters Hindustan Petroleum Corporation Limited. Petroleum House, 17, Jamshedji Tata Road,

Mumbai 400020. Maharashtra, India.

Email: corphqo(at)hpcl[dot]co[dot]in

Marketing Headquarters Hindustan Petroleum Corporation Limited. Hindustan Bhawan,

8, Shoorji Vallabhdas Marg, Ballard Estate,Mumbai 400001.Maharashtra, India. Email: mktghqo(at)hpcl[dot]co[dot]in

CORPORATE LOGO

Punch line of the Company

FUTURE FULL OF ENERGY

OVERALL MARKET SHARE

HPCL 25%

IOCL 50%

BPCL 23%

OTHERS 1.5%

0.00%

5.00%

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25.00%

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35.00%

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HPCL IOCL BPCL OTHERS

MARKET SHARE IN PIPELINE

BPCL 7%

HPCL 16%

ONCG 30%

IOCL 47%

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BPCL HPCL ONGC IOCL

Series1

CUSTOMER PREFERENCE

HPCL 26%

BPCL 42%

IOCL 30%

OTHERS 2%

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HPCL BPCL IOCL OTHERS

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SCORE OF COMPANIES ON SCALE

SERVICE

IOCL 30%

BPCL 35%

HPCL 35%

27%

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30%

31%

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IOCL BPCL HPCL

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ADVERTISEMENT

HPCL 42%

IOCL 30%

BPCL 28%

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HPCL IOCL BPCL

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BRAND IMAGE

HPCL 35%

IOCL 35%

BPCL 30%

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QUALITY

IOCL 30%

HPCL 45%

BPCL 25%

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IOCL HPCL BPCL

Products and Services

Refineries

Welcome to Refineries Section

Without refining, the rich resources of crude petroleum of nature would remain latent. Value-

added products from crude petroleum like petrol, diesel, kerosene, liquefied petroleum gas,

naphtha and many more products would not be available for growth and development of a

nation.

HPCL refineries upgrade the crude petroleum into many value-added products and over

300 grades of lubricants, specialties and greases. The Lubricating Oils Refinery set up at

Mumbai is largest lube refinery in India. It produces superior quality lube base oils.

The offsite product handling facilities of refineries at Mumbai and Vishakhapatnam has been

automated. Projects have been implemented and facilities upgraded to produce green fuels

like unleaded petrol and low sulphur diesel. and Euro III & Euro IV works are in progress.

The refineries have been benchmarked by an international agency for various performance

parameters. Numerous awards have been bestowed on both the refineries in recognition of the

efforts in the field of energy conservation, environment and safety.

This section showcases about our Refineries: Its History, Performance, New Projects,

Research & Development, Awards.

HP Aviation... Leading Jet fuel supplier in India

Hindustan Petroleum (as Esso and Caltex prior to 1974) has been providing aviation

refuelling (Aviation Turbine Fuel - ATF) services at various airports in India for more than

half a century. To know more about HP Aviation, also fondly called "Hindustan" Aviation,

browse the following links.

Bulk Fuels and Specialities

Welcome to Bulk Fuels & Specialities section (Direct Sales)

The Bulk Fuel & Specialities Business unit caters to marketing of Bulk fuels & Petroleum

products directly to Industrial consumers like power plants, chemicals, fertilisers, shipping

companies and airlines. This unit is also involved in exports of Bulk fuels and finished

Petroleum Products.

International Trade

Welcome to International Trade section

This section showcases about our International Marketing,Crude supplies and Our Offerings.

Please navigate to various information using the links.

The activities of IT&S relate to:

Crude oil imports

Petroleum Product Imports / Exports

Shipping

Production planning for Refineries

Supplies for domestic Markets

Product exchange with other Indian Oil Companies and Oil price risk management

Welcome to HP Gas, Your Friendly Gas

HP Gas, the HPCL brand of LPG, is what keeps the fire burning in millions of Indian

homes.

Bottled at 44 LPG Bottling Plants throughout the country with a total capacity of over 3610

thousand metric tonnes per annum (TMTPA), HP Gas reaches you after thorough checking at

every stage right from bottling to distribution. That is what makes HP Gas synonymous with

Safety.

Lubes (HP Lubes)

Lubes is an integral part of Hindustan Petroleum Corporation Limited, one of India's

frontline oil majors, committed to providing energy and fueling growth in every significant

area of development.

Retail Business

At HPCL Retail Outlets (Petrol Pumps), we believe in maintenance. Maintaining not just

the vehicle, but a steady relationship with our consumer. And to do so, provide better and

efficient services. We take care of not only your fuelling needs, but also complete vehicle

care. We stock related products like tyres, batteries and accessories, so you don't have to go

shop-hopping. All our other value-added services ensure that your vehicle is well looked

after.

Product Pipeline

Pipeline is the most cost effective, energy efficient, safe and environment friendly mode of

transportation of petroleum products. They ease the overburdened Rail & Road infrastructure

and minimise the environmental impacts arising out of Rail & Road transportation. Pipelines

play a significant role in meeting the demand of petroleum products in India.

HPCL has laid pipelines for transportation of Petroleum Products to ensure product

availability to its Consumers and the Public at large.

Alternate Energy

Wind power

Maharastra: HPCL's maiden renewable & alternate energy Wind Energy Generator was

commissioned at Dhule in Maharashtra State in May 2007. This 3.75 MW pilot turnkey

project, costing about Rs 19 Crores, comprised of just 3 Wind Turbine Generator (WTG)

units, each with an installed capacity of 1.25 MW. This was executed by M/s Suzlon Energy

Limited.

Power generated from this venture is being sold to the Maharashtra State Electricity Board

(MSEB).

Rajasthan: HPCL comissioned another Wind

power project in Jaisalmer in Rajasthan State on 1st January 2009. The 21.25 MW turnkey

project, executed at Rs 110 Crore by M/s Suzlon Energy Limited, comprises of a 17 unit-

farm, each WTG unit having an installed capacity of 1.25 MW.

The 2nd Wind Power Project in Jaisalmer, Rajasthan was commissioned on 18th December

2010. The 25.5 MW capacity turnkey project, executed at the cost of Rs. 154.57 Crore by

M/s Suzlon Energy Limited, comprises of a 17 unit wind farm, each WTG unit having an

installed capacity of 1.50 MW.

The power generated is wheeled through the Rajasthan State Electricity grid and is partly

consumed by HPCL’s centres at Ajmer, Jaipur, Kota, Pali and Jodhpur. Surplus power is

being sold to Rajasthan State Electricity Board. (RSEB)

HPCL remains committed to enhance use of renewable energy resources and exploration of

alternate sources of energy.

Joint Venture

Crude Refining and Marketing of finished Petroleum products is the core area of the

Corporation. Opportunities are also being explored to access new revenue streams, and

augment downstream businesses. Accordingly, HPCL has ventured in Upstream activities

(Exploration and Production) and piped gas distribution in major cities.

HPCL-Mittal Energy Ltd.(HMEL)

JV with Mittal Energy Investments Pte. Ltd (MEI), Singapore, an L.N. Mittal group

company, for implementation of Guru Gobind Refinery, a green field refinery project located

at Bathinda, Punjab.

Hindustan Colas (HINCOL)

JV promoted with M/s COLAS SA, France. Incorporated on July 17, 1995

Manufactures International quality value-added bituminous products such as bitumen

emulsions & cutbacks and modified bitumen.

Brief about the Organisation Structure

Chairman and Managing Director

Functional Directors

Part-time ex-officio Directors

Part-time non-official Directors

Chairman and Managing Director

Ms. Nishi Vasudeva: Chairman and Managing Director

Ms. Nishi Vasudeva took charge as Chairman & Managing Director of Hindustan

Petroleum Corporation Ltd. effective March 01, 2014. Prior to this, she was Director -

Marketing of the Corporation from July 4, 2011. She is the first woman to be appointed as

Chairman & Managing Director of a Navratna PSU. She is also the Chairman of HPCL Joint

Venture Companies - HPCL-Mittal Energy Ltd., South Asia LPG Co. Pvt. Ltd., and its

wholly owned subsidiary, Prize Petroleum Co. Ltd.

Functional Directors

Ms. Nishi Vasudeva: Director- Marketing (Additional Charge)

Ms. Nishi Vasudeva, C&MD HPCL holds additional charge as Director-Marketing of

HPCL till further notice.

Mr. P K Joshi: Director- Human Resources

Mr. Pushp Kumar Joshi took charge as Director - Human Resources effective August 01,

2012. Prior to this he was holding key portfolios in Human Resources viz. Executive Director

– HRD, and Head – HR of Marketing Division.

A Bachelor of Law and an alumnus of XLRI, Jamshedpur, Mr. Pushp Kumar Joshi joined

HPCL in 1986. Since then he has held various key positions in Human Resources and

Industrial Relations functions at HQO, Marketing and Refineries Divisions of HPCL

He has been responsible for the design and deployment of key HR policies and practices

that are employee oriented and aim at building high performance culture.

Mr. K V Roan: Director - Finance

Mr. K V Rao took charge as Director Finance effective 1st June 2013. Prior to his taking

over as Director (Finance), Mr. K V Rao was Executive Director- Corporate Finance of

HPCL for 5 years.

A member of the Institute of Chartered Accountants of India (ICAI), Mr. Rao brings with

him rich experience of over 3 decades in handling various challenging assignments in HPCL

in the fields of Corporate Finance, Treasury Management, Internal Audit and Marketing &

Refinery Finance.

Mr. B. K Namdeo: Director – RefineriesMr. B. K Namdeo

took charge as Director - Refineries effective July 01, 2013. Prior to this he was the

Executive Director, International Trade and Supplies of HPCL. A Mechanical Engineer and a

Master of Technology from IIT Bombay, he has over 32 years of experience in various refinery

functions and has held key positions in Central Engineering (Refinery Projects), Operations, Projects

and Maintenance of the Refineries.During his tenure as ED (IT&S), Mr. Namdeo was responsible for

Procurement of Crude Oil, Product Evacuation, Ship Chartering, Refinery planning & scheduling and

related commercial activities of both the refineries of HPCL.

TopPart-time ex-officio Directors

Dr. S C Khuntia: Director

Dr. Subhash Chandra Khuntia, has been appointed as a Part Time Director on the HPCL

Board effective August 3, 2012.

Dr.S C Khuntia (IAS Karnataka cadre 1981) is a post -Graduate in Physics, Computer

Science, Economics, Sociology and Doctorate in Economics. Before joining Petroleum

Ministry as Additional Secretary & Financial Advisor, he was Principal Secretary, PWD,

Govt. of Karnataka.

Mr. R K Singh: Director

Mr. Rajesh Kumar Singh has been appointed as a Part Time Director on the HPCL Board

effective June 26, 2013.

Mr. R K Singh (IAS Kerala cadre 1989) joined the Ministry of Petroleum and Natural Gas

effective 10th June 2013, as Joint Secretary (Refineries). He is B.A (Economics) from

University of Delhi.

Mr. Singh has previously served the Government of Kerala as Assistant Collector -

Palakkad, Addl. Director - Tourism, Collector - Malappuram District, Jt.Commissioner -

Finance, Secretary - Local self Government and Secretary - Ports including assignments such

as Under Secretary - Ministry of Finance, Dy. Secretary - Ministry of Urban Development,

and Joint Secretary - Information and Broadcasting, Government of India. He has also served

as Commmissioner of the Delhi Development Authority (DDA).

Top

Part-time non-official Directors

Mr. G K Pillai: Director

Mr. G K Pillai joined the HPCL board as an Independent Director effective April 9, 2012.

Mr. G K Pillai is a retired IAS officer. He joined Indian Administrative Service in the year

1972 and belongs to Kerala Cadre. He has done his M.Sc. at IIT, Chennai.

In addition to being a Director on Board of HPCL, he is also the Chairman of the Board of IVY Cap

Ventures Pvt Ltd, a venture capital company sponsored by the IIT Alumni Association.

Prof. G. Raghuram: Director

Prof. G. Raghuram joined the HPCL board as an Independent Director effective April 9,

2012.Prof. Raghuram has done his graduation from the Indian Institute of Technology (IIT),

Madras, MBA from IIM, Ahmedabad and PhD from Northwestern University, USA.

Prof Raghuram is a Professor in the Indian Institute of Management (IIM), Ahmadabad. His

specialization is in infrastructure and transportation systems, and supply chain & logistics

management. His research, consultancy, case studies and publications focus includes

railways, ports and shipping, air and road sector, service organizations and supply chain

management. He has taught at North-western University and Tulane University, USA. He has

been a visiting faculty at various universities in USA, Canada, Yugoslavia, Tanzania, UAE,

Singapore and several institutions in India.

Dr. Gitesh K Shah: Director

Dr.Gitesh K Shah, a Scientist turned Management Expert, was appointed to the HPCL board

effective February 26, 2013.Dr.Gitesh K Shah has done his M.Sc., Ph.D. & D.Sc in Organic

Chemistry. Dr.Gitesh K Shah is a Chartered Scientist, Chartered Chemist and Fellow of the

Royal Society of Chemistry(RSC), London. (C.Sci., C.Chem., F.R.S.C.). He is also member

of the prestigious Dr.Vikram Sarabhai Award Committee. He is based at Ahmedabad.

Dr.Gitesh K Shah, who is a noted Technocrat & Management Expert, has rich experience of

20 years in the field of Petrochemical, Chem-informatics, Bio-informatics and Nano–

Technology. He has to his credit 18 research papers in renowned international journals in the

field of Chemistry Dr.Gitesh K Shah has been an Part-time non-official Director of HPCL

earlier - from December 7, 2009 to December 6, 2012.

Mr. A.C Mahajan :Director

Mr. Avinash Chander Mahajan joined the HPCL board as an Independent Director effective April 9,

2012.

Mr. A C Mahajan has done his M.Sc. (Chemistry Hons) in 1972, and thereafter joined Bank

of India as an Officer in 1972. He is a career banker with over 38 years of varied experience

in various Public Sector Banks in India and abroad.

Mr.Rohit Khanna: Director

Mr. Rohit Khanna joined the HPCL board as an Independent Director effective September

27, 2013.He is a commerce graduate from Delhi University, besides being a Fellow Member

of the Institute of Chartered Accounts of India (ICAI).

Mr. Khanna is the Managing Partner of Khanna Gulati & Associates, Chartered

Accountants, New Delhi. In addition, he is on the Board of various companies like Atlantic

Softtech Pvt.Ltd, Bhikaji Power Pvt. Ltd. etc. He had earlier served on the Boards of Dena

Bank and various other companies.

Mr. Khanna brings with him front line organizational experience and broad functional

knowledge. He has over 27 years of experience in diverse sectors of industry including

corporate affairs, finance, law, banking, resource development, infrastructure and services.

His specialization as an advisor on strategy, business structuring, finance fundamentals,

corporate governance, risk assessment, budgeting, appraisal and monitoring mechanisms has

endowed him with experience and knowledge of key business processes.

Companies Vision, Mission and Objectives

VISION:

To be a World Class Energy Company known for caring and delighting the customers

with high quality products and innovative services across domestic and international

markets with aggressive growth and delivering superior financial performance. The Company

will be a model of excellence in meeting social commitment, environment, health and safety

norms and in employee welfare and relations.

MISSION:

HPCL, along with its joint ventures, will be a fully integrated company in the hydrocarbons

sector of exploration and production, refining and marketing; focusing on enhancement of

productivity, quality and profitability; caring for customers and employees; caring for

environment protection and cultural heritage. It will also attain scale dimensions by

diversifying into other energy related fields and by taking up transnational operations.

OBJECTIVE:

To ensure that all management positions are manned by personnel having the requisite

qualifications, exposure and competence

To integrate the aspirations for growth and development of Officers with the present

and future requirements of the Corporation

To ensure equity, fairness and objectivity in matters relating to promotion

To recognise and reward meritorious performance

About the PROJECT

Objectives of the Study

1. To study the HPCL loyalty program in Belgaum and nearby regions.

2. To study the loyalty between the local customers and the company.

3. To study the benefits provided by HPCL to the local customers.

4. To study how HPCL tap local alliance partners for “DRIVE TRACK PLUS” Fleet Card

program.

5. To obtain customer opinions and suggestions at HPCL retail outlets and give

Recommendations to HPCL to improve the implementation of “DRIVE TRACK PLUS”

loyalty program.

6. To study the comparative analysis between the loyalty card benefits of other marketing

company.

7. To become known to real market.

8. To gain real experience of market that how corporate persons work. How we have to

behave, how to present yourself, how to make deals with clients etc.

9. To check our theoretical knowledge with comparison to the practical market demands.

10. It gives us an opportunity to apply our thinking, idea, knowledge in real market

11. To enhance our skill and gain experience to be a true professional.

12. To enhance our interpersonal skills.

13. To learn necessary managerial skills and positive attitude towards your work.

14. To get a flavor of Teamwork, Organizational culture, Team dynamics, result orientation,

organizational pressure, complexities in achieving desired result.

15. To understand the day to day functioning of an department within the organization.

16. And at last but not the least, to sharpen our career goals for a bright career.

LOYALTY PROGRAMS- AN INTRODUCTION

Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal

buying behaviour — behaviour which is potentially of benefit to the firm.

Earning customer loyalty goes beyond gaining customer satisfaction. Loyal Customers

evangelize the brand by sharing their satisfactory experience with their friends and

colleagues. A great product or service is the starting point for customer loyalty. Great

marketers architect loyalty programs from day one.

Loyalty programs are initiated by businesses with two main goals. The primary goal for most

loyalty programs is the acquisition of information relating to their customers' spending habits,

while the secondary goal is to actively cultivate loyalty amongst customers to ensure they

continue patronizing the business. While some companies do reverse these priorities, the

above hierarchy holds true for most.

Loyalty programs may offer benefits in a number of different ways. Many loyalty programs

offer a sustained discount (such as 10%) for a period of time - perhaps a year, perhaps for the

life of the business. Others offer a discount once certain criteria have been met — for

example, a 20% discount on a single purchase once a customer has spent Rs 2000 at the

business. Still others offer points which may then be redeemed for products which may or

may not be directly related to the business.

Loyalty cards are the most common form of loyalty programs found throughout the world

today. Some of the first loyalty programs were instituted by airlines in the 1970s in the form

of frequent flyer miles. In these loyalty programs, one accrues points by flying on the airline

and then 'cashes in' the points in exchange for tickets, upgrades, or even third-party benefits.

In the pastdecade, many nonairline businesses have combined their own loyalty programs

with those of the airlines, offering frequent flyer miles in exchange for everything from

telephone usage to purchasing gasoline.

Loyalty programs have gained in popularity immensely in the past fifteen years, in no small

part due to the development of a culture of entitlement, in which consumers feel that they

deserve special treatment. Businesses have capitalized on this when designing their loyalty

programs, often offering benefits that cost little, but carry with them an assumed prestige,

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

Ultimately, the success of loyalty programs depends on how well the business uses the data it

gathers to further refine its policies and loyalty programs. Many businesses find little profit in

the use of loyalty programs, while others, such as eBay, attribute much of their financial

success to a well-executed use of such programs.

Loyalty Programs an Integral Part

The immense competition will make loyalty programs an integral program of the day-to-day

functioning of petro-retailing. Of course, right now many such loyalty programs are being run

by the petro-retailers like Smart Fleet (BPCL), Xtra Power (IOCL), Drive Track Plus

(HPCL), and Petro card (BPCL). However, these programs are mainly focused at the bulk

consumers and the small consumers are left unnoticed more or less. But in future, there won‘t

be such differentiation and loyalty programs will be there for every segment of consumers.

Customer Relationship Management and Loyalty program

Customer Relationship Management (CRM) can be widely defined as:

Company activities related to developing and retaining customers. It is a blend of internal

business processes: sales, marketing and customer support with technology and data

capturing techniques. Customer Relationship Management is all about building long-term

business relationships with customers.

Most CRM initiatives begin with a strategic need to manage the process of handling customer

related information more effectively. For beginners it could simply mean better lead

management capabilities or sales pipeline visibility. However, as organizations mature in

their CRM initiatives, they begin to look at CRM as tool to acquire strategic differentiators.

Despite the immense benefits that the CRM solutions can deliver, they are not entirely

without their share of problems.

Loyal customers are more profitable. Any company will like its mindshare status to improve

from being a suspect to being an advocate. Company has to invest in terms of its product and

service offerings to its customers. It has to innovate and meet the very needs of its clients/

customers so that they remain as advocates on the loyalty curve.

An important facet of CRM is ―customer selectivity‖. As several research studies have

shown not all customers are equally profitable (In fact in some cases 80% of the sales come

through 20% of the customers). The company must therefore be selective and tailor its

program and marketing efforts by segmenting and selecting appropriate customers for

individual marketing programs. In some cases, it could even lead to ―outsourcing of some

customers‖ so that a company better utilize its resources on those customers it can serve better

and create mutual value.

With growing competition in the petro-retailing sector, today‘s consumer is becoming more

and more demanding. The emergence of new psychographic segments in petro retail market

bears the testimony to this fact. A closer look at these segments tells us what exactly a

consumer is looking for whenever he goes to a fuel station to purchase fuel. He looks for-

Quality & Quantity assurance

Quick filling and efficient forecourt service

Rewarding loyalty

Premium fuels

Cashless transactions

Non - fuel services.

The immense competition will make loyalty programs an integral program of the day-to-day

functioning of petro-retailing. Of course, right now many such loyalty programs are being run

bythe petro-retailers like:

Smart Fleet (BPCL)

Petro card (BPCL)

Xtra reward (IOCL) Xtra Power (IOCL)

Drive track Plus (HPCL)

However, these programs are mainly focused at the bulk consumers and the small consumers

are left unnoticed more or less. But in future, there won‘t be such differentiation and loyalty

programs will be there for every segment of consumers.

DRIVE TRACK PLUS Fleet Card program

The DRIVE TRACK PLUS Fleet Card program is a complete smart card-based fleet

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

from designated retail outlets of Hindustan Petroleum through flexible pre-paid and credit

facilities.

The fleet card program also offers an exciting rewards program and unique benefits like

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

launch, Hindustan Petroleum’s Drive Track Plus Fleet Card has emerged as the largest fleet

card in the country with the widest retail outlet coverage.

Any business entity owning or operating a vehicle fleet can become a member of the

Drive Track Plus fleet card program at a nominal annual charge. Each fleet owner is issued a

Fleet Control Card and vehicle-specific Fleet Cards for every vehicle enrolled under the

program.

For enhanced security, the fleet card transactions are authorized through unique Personal

Identification Number (PIN). Moreover, the card can help track each vehicle's movement

across remote corners of the country leading to an improvement in vehicle utilization and

route compliance. DRIVE TRACK PLUS is also backed by Hindustan Petroleum‘s vast

infrastructure network and web based support services.

DRIVE TRACK PLUS is one-of-a-kind fleet card program of Hindustan Petroleum, which

gives you extra convenience, extra security and extra opportunity to earn Truckload of

rewards. It is a tailor-made program for Fleet Owners, Operators & Corporate as well. Drive

Track Plus Fleet Card program is a step of HPCL towards building loyalty among the

existing customers. Loyalty program works only when the customer is emotionally attached

to the brand.

Positioning of the loyalty program is very critical so that these benefits do not appear to be a

just discount under the garb of loyalty this greatly affects the customer retailer relationship

and greatly reducing the program to a pure commercial transaction where the customer

constantly looks for deals.

We need to enrol the right customers. We can recognize the highest value Customers to

recognize and reward their value to our organization, we can Cultivate high potential

customers who currently split their purchases between us and our competitors or reach out to

those most at risk of churning. Knowing which customer groups are most important to us

allows crafting recognition and rewarding strategy that piques their interest.

Customers should be involved in the program by constant communication to make them

understand what is in for them. Comprehensive surveys should be conducted to find out what

should be the ideal way to reward the loyal customers and retain them for the life time.

Activities like checking point balances online, responding to targeted offers, using kiosks,

bidding on auction items, entering sweepstakes and so on. Such participation is a sure sign of

increasing value to the customers.

BENEFITS

Better credit proposition.

Higher value of reward points.

Attractive rewards program.

Personal accident insurance cover for the drivers and cleaners.

Lost card liability cover.

Online PIN unblocking.

Flexible cash loading options - Manual Reload & CCMS Reload (Remote loading of

cards by depositing lump sum cash at one place) or CCMS reload payment through at

select ICICI branch.

Literature Review

FICCI (2007): According to FICCI survey on fuel retailing industry in India, they

concluded that the rising rate of growth of GDP, rising purchasing power of people

with higher propensity to consume with preference for sophisticated brands would

provide constant impetus to growth of petroleum industry. as people will have huge

amount of money to buy their own vehicles. So as per as FICCI automobile sector

will emerge as the front running sector in India. There is a very good chance for

Indian fuel retailing sector to gain big hold in the market. the potential market will be

rural one which is stillbeing untapped. Rural India which constitutes about 70% part

of India will drive the major chunk of income of oil companies. So they need to

concentrate on Indian rural market.

McKinney (2006): The Indian market for transportation fuels holds a lot of

promise. The country’s aspiring middle class, recently estimated at 40 million

households by consultancy McKinney, is becoming increasingly motorised. small

towns are expanding at a rapid pace, sparking investment in roads and other

infrastructure. The largest express highway project in India, for example, aims to link

the cities of New Delhi, Mumbai, Kolkata and Chennai with a system of four- to six-

lane highways. Automobile sales, which today number just over a million vehicles a

year, could reach 20 million a year by 2030, predicts us-based consultancy keystone,

making India the third-largest automobile market in the world after china and the

USA. Moreover, the fact that many of India’s service stations are poorly designed and

congested leaves a natural opening for newcomers who offer a better alternative.

Typical old-fashioned Indian service stations feature long queues, cars jockeying for

position, oily forecourts and hand-operated petrol pumps that may not accurately

measure the volume of each sale.

Features

I. Better Control on transporter’s

Fuel Consumption: Efficiently manage working

capital by allocating funds to each card from central pool of funds (CCMS account).

Access card balances information online.

Spends through user cards: Keep a check on the spends on each of the user cards with

multiple spend limits that transporter can determine and change.

II. More Convenience

Cash less transactions: With Drivetrack Plus card in driver’s pocket he need not carry

any cash for fuel.

Central cash management system (CCMS): Allocating funds to the drivers can't get

any easier. Just login to your Drive track Plus web account and allocate money to any

of the user cards. Likewise,an of the user cards with excess money can transfer funds

back to CCMS account.

Electronic Funds Transfer: CCMS account can be recharged by RTGS/NEFT or cash

from a nearby HPCL outlet participating in the program.

MIS at the click of a button: Monitor of the transactions being carried out by the

specific user cards anytime, anywhere. It’s just need to log on to the customer’s web

account to view or download reports.

III. Enhanced Security

PIN based security is employed with separate PIN for each of the user cards and Control Pin

for Control card transactions. There is added level of security with control card.

No threat of theft: Because transporter’s employees need not carry cash for fuelling at

all.

IV. Insurance coverage

Drive track Plus card brings accidental death insurance cover of Rs. 1 lakh each for the driver

and cleaner of every active card.

V. Fabulous Rewards

Reward points on fuel purchase: Whenever the vehicle is fuelled using Drive track Plus card

it earns Drivepoints which can be redeemed for free fuel / lubes at participating HPCL outlets

or gifts. Extra reward points for purchase of lubes: You earn 500 Drivepoints per Rs. 100/-

spent for purchase of lubes using Drive track Plus card

Cashless Transactions

This smart card based program lets you purchase fuel and lubes from designated HPCL retail

outlets with electronic purse in your card. You can also recharge you account using

RTGS/NEFT, transfer funds from your central account to various user cards.

Central Cash Management System

CCMS is a cash management facility in Drivetrack Plus program that enables a member to

provide central pool of funds available for all user cards issued to the member

authorise employees/drivers to transfer funds from central account to user card for fuel

purchases

Apportion funds to each user card from time to time

Recharge this central loyalty account

The CCMS account of the member can be recharged by

Cash Recharge by transaction on EDC terminal at participating HPCL retail outlets

RTGS/NEFT from any bank to member's CCMS account

MIS Reports

This program lets you control your fleet with useful MIS. These MIS reports are both

vehicle (card) wise as well as consolidated reports of your entire fleet. You can access

and download the MIS report by logging on to your account.

The MIS report gives you information on: CCMS Recharge, CCMS Reload, CCMS

Balance, Total Spends/Reload, Vehicle wise Spends/Reload, Card wise balances,

Drive Points Earned, Redeemed and Balance, Time/Location of purchase and

Frequency of purchase

Vehicle Tracking

The members can also track the location of their vehicles. All the driver has to do is to

present the card at a participating outlet for a 'tracking transaction' post which the

information will be available on your web account or on the customer care n

VI. Customer Service

24x7 customer care number for queries and assistance.

COMPARISON BETWEEN LOYALTY CARD BENEFITS WITH

OTHER OMC

To complete this comparison I have visited the retail outlet of IOCL and BPCL and spoken

with their customers. This information is required to get a competitive edge over competitors.

NAME OF THE

COMPANIES

BENEFITS

HPCL

BPCL

IOCL

Reward Points on

DIESEL

3%

3%

4%

CASH LOADING

MANUAL AND BY

CENTARAL CASH

MANAGEMENT SYSTEM

(FREE)

MANUAL AND BY

CENTRAAL CASH

MANAGEMENT

SYSTEM (FREE)

MANUAL AND BY

CENTRAL CASH

MANAGEMENT SYSTEM

(FREE)

ONLINE PIN

UNLOCKING

YES(FREE OF COST

YES(FREE OF COST

YES(FREE OF COST

INSTANT FUEL

REDEMPTION

YES or GIFT

YES

YES

INSURANCE FOR

DRIVER AND

CLEANER

Free accidental death

Insurance cover of Rs. 1 Lakh for

drivers and Rs.1 Lakh for cleaners.

NO ANY

INSURANCE

Driver : 50,000/-

Co-Driver :

25,000/-,Helper cum-

cleaner :

Rs.25,000/-

LOST CARD

LIABILITY

A replacement card

is issue to the card

holder after due

verification the pre

paid amount

balance of the lost

card is transferred

after verification

A replacement card is

issue to the card holder

after due verification

the pre paid amount

balance

of the lost card is

transferred after

verification.

A replacement card is issue to the

card holder after due verification

the pre paid amount

balance of the lost

card istransferred

with a fee of Rs 100per card.

NAME OF THE

COMPANIES

BENEFITS

HPCL

BPCL

IOCL

VEHICLE

TRACKING

Card-insert based

offline tracking at

no extra cost. At any

HP Fleet card outlet,

the driver has to

place the card on

the reader and enter

his PIN Number.

This is regardless of

whether or not your

Driver fuels the

vehicle at the outlet.

Card insert based

online tracking at a

nominal cost.

Card-insert based

offline tracking at no

extra cost. Card

insert based online

tracking at a nominal

cost. Vehicle tracking

through sms (fee only

for blue card holder

Card-insert based

offline tracking at

no extra cost. Card insert based

online tracking at a nominal cost

of

Rs.2/-

SMART CARD

PREPAID CREDIT

YES

YES

YES

MULTIPLE CREDIT

PARTNER

ICICI BANK

Sundaram Finance Ltd

Citicorp Finance

IndusInd Bank

(Currently,

Sundaram Finance

Ltd.)

RELOADING

FACILITY

YES

YES

YES

ENORLMENT FEE

AND RENWAL FEE

NA

YES ,RS 250 PER

CARD

YES , RS 100 PRE

CARD

LOYALTY POINT

VALUE

Rs.1/- on consumption of rs.100/-

NA

PER POINT 1

PAISA

From this comparison it is clear that benefits provided by HPCL is better than its competitor

in spite of this to get more customer the company can consider for benefits such as,

Free sms alert as provided by BPCL for balance check and vehicle tracking

Extra benefit scheme for customer with more transaction.

Multiple credit partner for customers

Redemption at any point of time with increased point validity from 1 year.

Fleet card vehicle for smaller vehicle

NAME OF

THE COMPANY

BENEFIT

HPCL

BPCL

IOCL

REWARD ON FUEL AND

LUBE

YES

YES

YES

MINIMUM POINT

REQUIRED FOR

REDEMPTION

25,000-at any

point of time valid

up to 3 years.

9, 00, 000 - once in year

(for blue and silver)

quarterly for gold and

on demand

for platinum card

holder.

80,000-1 year

from the date of transaction.

REDEMPTION

OPTION THROUGH

CRT MACHINE

YES

YES

YES

24 HRS HEELPLINE

YES

YES

YES

SMS BENEFIT

NO SUCH BENEFIT

Free sms alerts for all

balance check and

vehicle tracking (fee

only for blue card

holder).

NO SUCH BENEFIT

Revised tier based reward structure for Drive Track Plus Program

customers for spends and EFT

CATEGORY

TIER

QUARTERLY

SLAB

MONTHLY

SLABS

(FOR CLUB

CUSTOMERS)

DRIVE POINTS AS PER

EXISTING REWARD

STRUCTURE

SPENDS EFT TOTAL

SILVER 1

TIER 3

<4.5 LAKHS

<1.5 L

0 10 10

SILVER 2

TIER3

4.5L TO

37.5L

1.5L TO12.5L

10 20 30

GOLD

TIER2

37.5L TO

150L

12.5L TO 50L

30 50 80

PLATINUM

TIER1

150L TO

300L

50L TO 100L

30 60 90

CLUB

TIER1

>300L

>100L

30 85 115

LIST OF SOME CUSTOMERS AND THEIR FEEDBACK

Name of the

Customer/Transpor

t Agency

Customer ID

Mobile Number

Total no of

Vehicle and no

of cards

Feedback

RAGKUMAR G

2800000026

9900036306

650/216

POSITIVE

V V SHADRI

2000058656

9663332043

436/250

POSITIVE

M K TRAVELS

2000030697

9845829290

185/72

POSITIVE

GEETHA

CHIDAMBRA

2000030688

9845177622

144/96

NEGETIVE

MURLIDHARAN

T N

2000029066

9740466034

163/116

NEGETIVE

D N REKHA

2000060775

9845351153

101/99

POSITVE

POPULAR

ROADLINES

20000042279

0821-2493164

139/74

POSITIVE

RAVI KIRAN C

2000071056

9986686255

60/60

POSITIVE

GOPAL C

280000213

9844247004

60/42

NAGETIVE

CHETAN\KLOGI

STICS LTD

200003929

9945019222

53/48

POSITIVE

SAM TOURS

200004738

9880024646

41/30

POSITIVE

SRINIVAS

TRANSPORT

2000041637

9900777877

35/31

POSITIVE

DEHLI FRIEGHT

CARRIERS

2000047457

9845081002

32/30

NEGATIVE

BHARAT

ROADLINES

2000030676

9845032648

54/50

POSITIVE

HANDA

TRANSPORT

2000030075

9845250994

75/70

POSITIVE

Scope of the Study

Study of consumers needs and wants related to Drive Track Plus Program.

To know the customers buying behaviour towards Drive track Plus Program.

Product planning and development starts with the generation of product idea and

ends with the product development and commercialisation.

Study of distribution channel is important in marketing. For maximum sales and profit

goods are required to be distributed to the maximum consumers.

To maintain the interest on the customer to be loyal to the organization the DT plus

Program plays an important role by which customer are benefited on the time of

redemption of points with fuel or gift.

Limitations of Study:

1. I could have covered all the DTP customers across India but due to time & financial

constraints, i could not do so.

2. I could have known the customer buying behaviour if I was able to travel across the

country.

3. Customers from different areas could have enhanced my knowledge & information on

what is it that they are loyal to the company, or which rewards attract them to be loyal to

the DTP program of the company.

4. Last but not the least I would gain some insight on what satisfies the consumer in

different parts of the country.

RESEARCH METHODOLOGY OF THE PROJECT:

DATA COLLECTION METHOD

Types of Data and Data Collection: Data that I have received for making the project is a combination of both primary and

secondary data.

Primary Data

The data collected through questionnaire based survey from the retailers and customers of

Belgaum region. The name of the retail outlets of Hindustan Petroleum Corp[oration Limited

from where these data are collected are

United Petroleum’s

(College road Belgaum )

TCI Petroleum’s

( Kakti Belgaum )

Vijaybharti Petroleum’s

( Desur Belgaum )

Renuka Highway Petroleum’s

(Bhagewadi Belgaum)

Supreme Petroleum’s

( Azam Nagar Belgaum)

Prabhat Auto Service Centre

(Nava Nagar Hubli)

Shanti Enterprise

(Vidya Nagar Hubli)

J G Pawar Petroleum’s

(Bharat Mill Road Hubli)

Secondary Data

Company‘s journal

Company’s magazines

Company‘s website

Company‘s pamphlets

Sampling plan

The sample size for retailer is 8

The sample size of customers is 75 on tier basis that is Tier1, Tier2, and Tier3 of

Belgaum and nearby region.

The respondents are chosen through cluster sampling universe elements are chosen in

rather than individually. Whereas convenience sampling is based on opportunism.

General Approach

First of all i thought of preparing a questionnaire with a set of questions which would satisfy

my purpose of customer satisfaction survey of DTP program at HPCL. Then I intended to

meet all the customers to have a diversified survey, my questionnaire would have points

based on their satisfaction, higher the satisfaction higher the marks and vice versa. Based on

this data i would evaluate, analyse & reach a conclusion and final purpose of my survey.

Conceptual Framework

A Review of Earlier Research studies conducted

Scenario 1:

Your driver has to make a long distance trip for delivering a consignment for an important

customer. For the refuelling enrooted and for the return trip, he needs to carry a large sum of

cash. Now highway journey is replete with various threats and there risk to your money. Is

this worrying you?

Scenario 2:

You are based in Haryana. Your truck is bound for Chennai. Your driver or truck encounters

some unforeseen exigency mid way and the money given to the driver for fuel is spent. Fuel

tank is almost empty and vehicle has to still reach the destination and travel back. And worst

of all you don’t have any contact there. Now what?

Scenario 3:

Business is thriving and your fleet is expanding. But monitoring the vehicle-wise fuel

consumption and whereabouts of your vehicles all the time is a bit too time-taking.

Accounting is slipping away from your hands. There is always some or the other discrepancy

in the ledger. How to manage this ever-growing business, how to keep tab on drivers'

transactions?

Scenario 4:

Fuel prices are increasing day by day. Some local petrol pumps extend facilities or rewards.

But there are hardly any such offers to come by at the petrol pumps enroute. How good it

would be if the rewards and facilities are available to customers uniformly all over the

country.

Analysis

TIER -1

The definition of Tier-I is customer applied For DTP enrolment with a

minimum of 100 vehicles. DT Plus Program Focuses majorly on such customers.

Very few customers of Tier-I contribute to the maximum percentage of fuel

consumption from HPCL retail network. Enrolling and maintaining such kind of

customers is very important for the success of the program and maintaining the

market share. Out of 75 sample size 25 Tier-I customers are interviewed through

personal and telephonic interviews. The inferred results are presented in the below

Tier-I table. Out of a maximum of 100 points for each feature, individually, the

obtained points are presented. It is interred that the most preferred/useful feature was

with the maximum points and the least preferred/useful feature was with the minimum

points.

Control and Convenience 80%

Security 75%

Insurance 50%

Rewards 75%

Customer Service 80%

0

10

20

30

40

50

60

70

80

Control and

Convenience

Security Insurance Rewards Customer

Service

TIER-1

TIER-1

TIER -2

The definition of Tier-II is customer applied for DTP enrolment with a minimum of 25

vehicles. DT Plus program focuses on such customers, because the entire market was majorly

filled with this kind of customer segment only. Tier II customers can also contribute to the

maximum percentage of fuel consumption from HPCL Retail network, sometimes, the

absolute volumes stretch beyond 100 KL. Enrolling and maintaining such kind of customers

is very important for the success of the program and maintaining the market share. Out of 75

sample size 25 Tier II customers are interviewed through personal and telephonic interviews.

The inferred results are presented in the below Tier II table. Out of a maximum of 100 points

for each feature, individually, the obtained points are presented. It is interred that the most

preferred/useful feature was with the maximum points and the least preferred/useful feature

was with the minimum points.

Control and Convenience 85%

Security 80%

Insurance 50%

Rewards 85%

Customer Service 75%

0

10

20

30

40

50

60

70

80

90

Control and

Convenience

Security Insurance Rewards Customer

Service

TIER 2

TIER 2

TIER-3

The definition of Tier-III is customer applied for DTP enrolment with a 1 to 25 vehicles. DT

Plus program focuses on such customers, because the entire unorganised transporters market

was majorly filled with this kind of customer segment only. Tier-III customers can also

contribute to the maximum percentage of fuel consumption from HPCL retail network, but,

enrolling and maintain such customers is very laborious and consumes the productive time

that can be spent on above mentioned tiers. Out of 75 sample size 25. Tier III customers are

interviewed through personal and telephonic interviews. The inferred results are presented in

the below Tier III table. Out of a maximum of 100 points for each feature, individually, the

obtained points are presented. It is interred that the most preferred/useful feature was with the

maximum points and the least preferred/useful feature was with the minimum points.

Control and Convenience 50%

Security 50%

Insurance 70%

Rewards 90%

Customer Service 90%

0

10

20

30

40

50

60

70

80

90

TIER 3

TIER 3

TIER1,TIER2 and TIER3

TIER-1

TIER-2

TIER-3

Control and

Convenience

80%

85%

50%

Security

75%

80%

50%

Insurance

50%

50%

90%

Rewards

75%

85%

70%

Customer Service

80%

70%

50%

0

10

20

30

40

50

60

70

80

90

TIER 1

TIER 2

TIER 3

OVERALL RESULT

Control and Convenience 71%

Security 68%

Insurance 64%

Rewards 76%

Customer Service 68%

58

60

62

64

66

68

70

72

74

76

OVERALL RESULT

OVERALL RESULT

FINDINGS & Suggestions

1. Most of the customers were very supporting and welcoming .They had Good will for

HPCL.

2. Customers who showed interest appreciated the offer provided and were eager to

continue talks with HPCL. They were also wanted to know more about the program.

3. Some of the prospective customers were not aware of India HPCL Drive Track Plus

Program Fleet Card Loyalty Program. Hence they were not interested. Also due to the

increase in the oil prices they were apprehensive a little bit.

4. Some of the customers facing technical difficulties while using the card since they are not

able to understand its operations clearly.

5. Some customers have no clear idea about its benefit and they are happy to use their old

traditional way of purchasing oil and lubricant.

6. Some of the customer considers it as very complex and the benefit is not so high.

7. Customers most of them are small transporter are not very keen for this program some

of them have purchase the card but the card remains as idle as they have very less

transaction and lack of information about the benefits.

8. Drive Track Plus scheme is not available at all the retail outlet of Hindustan Petroleum in

so at a time it creates problem.

9. The card swiping machines are not properly maintained at some places leading to many

customer complaints. Some of the machines are very old and they are need replacement

with the new one.

10. At some places pump attendants are also not interested in providing this service.

11. There are no pamphlets available at pumps, which could give a brief idea about the

loyalty program.

12. Pamphlet and booklets are in English; hence most of the people are not able to

understand.

13. There is no dedicated person for collecting the forms. So, there is a large backlog of

forms.

14. There is Lack of internet facility at some of the outlets and also problem with poor

network service.

15. Website of Drive Track Plus (www.hpcldtplus.com) is not regularly updated.

16. There is no facility of sms for vehicle tracking and to know detail about existing balance

where other major oil producing company (BPCL) provides this service to their

customers.

17. ICICI is the only partner for providing credit to the card owner.

18. There are no any special benefits for customers having larger transaction.

SWOT Analysis

STREGNTH:

1.India's major oil and gas company

2.Operates largest Lube refinery in India

3.Large product portfolio

4.Owns and operates the largest Lube Refinery in India producing Lube Base Oils of

international standards

5.Produces over 300+ grades of Lubes, Specialities and Greases

WEAKNESS

1.Legal issues

2.Employee management

3.Human right issues, rehabilitation issues

4.Environmental hazards from wastes

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 from other players

CONCLUSIONS

Tier-I:

The customers are majorly focused on control/convenience that DT Plus offers in the

form of MIS (Fleet & Spends) and customer servive. Cashless transaction with

centralised fund management through DT Plus web-site increases their control on the

day to day spends for fuel and customer service resolves issues faced by customers.

Rewards and Security are at next important feature that Tier-I customers prefer/use.

As their consumption is very large their cash back on consumption is also

proportionately large.

Insurance stands at the lowest.

Tier-II:

Tier-II customers equally focuse on both control/ convenience and reward points that

DT Plus offers. Control/convenience that DT Plus offers in the form of MIS (Fleet &

Spends) and reward are the most preferred features by such customers.

Security is next important feature that Tier-II customers prefer/use.

Majorly, being, unorganised/non-institutional transporters they need assistance for

hassle transactions in their respective routes so customer services is next preferred

feature.

Insurance stands at the lowest, as these features are less availed by the customers.

Tier-III:

This segment mostly cares about insurance feature and customer service. As most of

the customers are small customers in terms of size, operations and financially, they

want to be covered under insurance.

Cash back is next important feature for this segment of customer.

Tier-III customers are not much worried about control/convenience and security

feature as they are not much involved in CCMS transactions; instead prefer cash

loading/cash sale transactions.

Over All:

Rewards and Control/Convenience are the most preferable features of DT Plus. Depending

upon the respective size, operations need and financial position etc the mentioned segments

are choosing among the features like Security, Customer Service and Insurance as depicted in

below charts.

RFERENCE

Company‘s journal and magazines

Company‘s website

Company‘s pamphlets

Questionnaire for Retailers

Personal details

Name ……………………………………………

Outlet ……………………………………

Customer ID.............................

Address …………………………………………

Date of visit …………………………………….

Instructions:

Take your time to fill this questionnaire. Please read carefully, before answering

question.

1.How many people are trained in the outlet to use DTP terminal?

Ans.

2. Do you have login ID and password of DTP program. If no how do you check your

monthly transactions?

a)Yes

b)No

Ans.

3.Do you know about point structure of DTP?

a)Yes

b)No

Ans.

4. Where do you keep the DTP card?

a)Customer

b)Outlet

Ans.

5. Do you tell the customer/fleet owner/driver about the Drive rack Plus card loyalty program

of HPCL?

a) YES.

b) NO.

C) SOMETIMES.

Ans.

6. Do the staff/attendants know how to operate the machine of Drive Track Plus card?

a) YES

b) NO

Ans.

7. Do you maintain the list of credit customers, cash customers & DTP customers?

Ans.

8.Do you know about cash reload, cash sale and CCMS?

Ans.

9.What is the purpose of batch settlement?

Ans.

10.After batch settlement what do you understand by receivable and payable?

Ans.

Appendices

Customer Questionnaire

Dear DT Plus Customer,

I am approaching you for your kind cooperation in connection with our project titled “Study

of features of DTP perceived by customers & factors contributing in enrolling

customers”. This study aims in understanding and identifying the contributing factors for

customer enrolment in to DT Plus program and enhance the product features for better

services. So your response regarding the various features of DT Plus program and respective

usage is valuable in this project.

Gaurav Malik

Marketing Officer,

Belgaum Retail Region, HPCL

Please provide the following information:

Customer. ID:

Tier:

Phone No.:

Region:

1. What is your understanding/awareness about DTP Program?

2. What are the features of DT Plus Program?

3. What are the valuable features of DTplus program?

Control & Convenience Very Useful OK Not very useful

MIS-Fleet 7 6 5 4 3 2 1

MIS-Spends 7 6 5 4 3 2 1

MIS-Vehicle Tracking 7 6 5 4 3 2 1

Online monitor (website) 7 6 5 4 3 2 1

Security Very Useful OK Not very useful

Cashless transaction 7 6 5 4 3 2 1

Pin-based transaction 7 6 5 4 3 2 1

Insurance Very Useful OK Not very useful

Accidental death insurance cover of

Rs.1lakh each for the driver and cleaner

for every active card

7 6 5 4 3 2 1

Rewards Very Useful OK Not very useful

Reward Points against consumption 7 6 5 4 3 2 1

Redemption (Fuels or Gifts) 7 6 5 4 3 2 1

Customer Service Very Useful OK Not very useful

24*7 Call Center 7 6 5 4 3 2 1

Program team Assitance 7 6 5 4 3 2 1

Complaints/comments

Suggestions/Feedback