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ACKNOWLEDGEMENTS I hereby thank my parents, my religion & the saints in our order who ve always inspired me to be honest and work with diligence. I also thank my late friend, her parents & my sister who have always stood by me in my testing times. It is because of their belief in me that I ve been successful in my academics & I am now a part of the Lal Bahadur Shastri Institute of Management. I extend my sincere thanks to Indian Oil Corporation Limited for giving me this wonderful opportunity to do summer internship. I acknowledge the give and take relationship wherein I could hard on the project assigned to me and contribute to the organization with my efforts & get essential credits for my profile before I enter the corporate world. I thank my project guide, Mr. Alok Srivastava (Manager, Delhi Divisional Office Retail Sales) at Indian Oil Corporation Limited for giving me the opportunity to work on a live project that holds strategic importance to the organization. I am really grateful to him for the trust he had in my abilities. I appreciate the fact that he connects very well with the people of my generation, understands them well, and is like a mentor who teaches one to worship work and prioritize things effectively. I sincerely thank you Sir for providing me with this wonderful learning experience. I would also take this opportunity to thank Mr. Rajat Tandon and Mr. Kenni Hauge Kristensen at Buzz Drivers Consulting for helping me determine the constraints and delicate issues related to the potential campaigns. I thank Mr. Dharmendra Singh (formerly a member of the branding team for XtraPremium and XtraMile) for providing me with valuable insights for two essential modules of my project. I also thank Mr. Kapil Aggarwal of Moksh Promotions Limited for helping me come up with vivid ideas for the campaign. I extend a sincere thanks to all those people who provided their valuable inputs for the various surveys conducted during the course of my internship. In the end, a sincere thanks to everyone else professionally involved in my internship. I believe my nine weeks tenure at IOCL was a very vivid experience that gave me a feel of not just the
LETTER OF TRANSMITTAL To : Mr. Alok SrivastavaDate : June 6th, 2009From Internship : Aneesh BhandariSub : Summer
I was assigned the following two projects during the course of my summer internship in the Retail Sales division at Indian Oil Corporation Limited, New Delhi during the period 1st April 2009 to 3rd June 2009:I. To study the value-added fuel brands (XtraPremium Petrol and XtraMile Diesel) of IOCL for strategy, budgeting, communications, and positioning II. To design a sales promotion campaign for XtraPremium Petrol and XtraMile Diesel for implementation in Delhi NCR The study part was conducted successfully supported by surveys, B2B interviews, secondary data and other research material. The study reveals various interesting facts about the fuel brands of Indian Oil through a compilation of data generated, existing data and newly acquired data from various sources. Many potential campaigns were designed and proposed keeping in mind the need for instant relevant redemption for consumers. A final draft was made which will be presented on behalf of a third party for getting the approval through the appropriate ranks. In the end I would like to thank you Sir for assigning me with projects that had the dimension of practical learning. I would also like to thank you for your guidance and support in carrying out the projects assigned to me
EXECUTIVE SUMMARY This report is the compilation of work done at Indian Oil Corporation Limited as an Intern Trainee wherein I undertook two projects: one is regarding the study of branded fuels and the other regarding designing of a sales promotion campaign for branded fuels. The study based project was completed using primary data, secondary data, and B2B interviews. A complete analysis of findings is compiled and classified into appropriate submodules. Various interesting findings from the survey with a sample size of over one hundred are presented in this section. Finally, a brand scorecard is used to sum up the entire study. In the second portion, various constraints, guidelines, consumer behavior was studied regarding the branded fuels and a detailed analysis of findings was done. Thereafter, various ideas were generated keeping in mind the information obtained from the research and the guidelines/constraints. Finally, a proposal was drafted for double event type campaign on behalf of an event management company and all the proceedings were summed up in the end. The report contains a brief study on Shell s promotional campaigns in the United States. The key terms, facts-figures, abbreviation and bibliography are mentioned in the end for reference.
PROJECT 1:
To study the value-added fuel brands (XtraPremium Petrol and XtraMile Diesel) of Indian Oil Corporation Limited for strategy, budgeting, communications, and positioning.
OBJECTIVE To do a detailed study of the value-added fuel brands of Indian Oil Corporation Limited. Parameters of study:Strategy: This includes the strategy from the time of launch and how it has evolved over the years. Also, includes the value creation and delivery for the brands under study. Budgeting: This includes the expenditure part, the trends and variations over the years. The dimensions of the costs and the reasons for varying expenditures if any. Communications: This encompasses brand building, promotion methods, outcomes, current scenario and future of the brands under study. Positioning: This includes modules like perception, brand recall, correlation between various factors and consumer preference. Brands under study:XtraPremium Petrol XtraMile Diesel
INTRODUCTION TO THE ORGANIZATION Indian Oil Corporation is an Indian public-sector petroleum company. It is India s largest commercial enterprise, ranking 116th on the Fortune Global 500 listing (2008). The company began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was formed in 1964, with the merger of Indian Refineries Ltd. Indian Oil and its subsidiaries account for a 47% share in the petroleum products market, 40% share in refining capacity and 67% downstream sector pipelines capacity in India. The Indian Oil Group of Companies owns and operates 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tons per year. The company has employee strength of almost 36,200 employees. The company is headed by the chairman Mr. Sarthak Behuria who was formerly doing the top job for competitor Bharat Petroleum. Being a public sector company, the majority stake in the company lies with the Government of India and the central cabinet ministers for petroleum have a decisive say in companies policies. IOCL with its staggering profit figures year after year is classified as an A+ grade PSU in India. The company is not only contributing in terms of financial figures to the national income but also helps in infrastructure development, military operations, transportation network operations through its humongous network of fuelling stations in the entire country. Indian Oil operates the largest and the widest network of fuel stations in the India, numbering about 17606 (15557 regular ROs & 2049 Kissan Sewa Kendra). The company has also started Auto LPG Dispensing Stations (ALDS). It reaches Indane cooking gas to over 47.5 million households through a network of 4,990 Indian distributors.Indian Oil's has a Research and Development Center (R&D) at Faridabad that supports, develops and provides the necessary technology solutions to the operating divisions of the corporation and its customers within the country and abroad.Subsequently, IndianOil Technologies Limited - a wholly owned subsidiary, was set up in 2003, with a vision to market the technologies developed at Indian Oil's Research and Development Center. It has been modeled on the R&D marketing arms of Royal Dutch Shell and British Petroleum.FINANCIALIndian Oil Corporation Limited has assets worth US$ 26.20 billion and equity equal to US$ 10.8 billionFor the financial year ended 31 March 2009, IOC posted a consolidated net profit of Rs 2,599.40 crores, while the same was at Rs 7,912.74 crores in FY08, the filing added. The total income of the company rose to o Rs 2,90,946.19 crores during the fiscal ended 2009, from Rs 2,32,558.62 crores in FY08.
On a standalone basis, IOCL posted a net profit of Rs 2,949.55 crores in the FY09, while it stood at Rs 6,962.58 crores in the year-ago period.The standalone total income rose to Rs 3,09,087.59 crores during FY09, from Rs2,49,169.16 crores in the previous fiscal.PRODUCTSIndian Oil's product range covers petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants, naphtha, bitumen, paraffin, kerosene etc. Xtra Premium petrol, Xtra Mile diesel, Servo lubricants, Indane LPG, AutoGas LPG, Indian Oil Aviation are some of its prominent brands.Recently Indian Oil has also introduced a new business line of supplying LNG (Liquefied natural gas) by the cryogenic transportation. The branding called "LNG at Doorstep". LNG headquarters are located in scope complex, Lodhi Road Delhi.REFINERIES Digboi Refinery, in Upper Assam, is India's oldest refinery and was commissioned in 1901. Originally a part of Assam Oil Company, it became part of IndianOil in 1981. Its original refining capacity had been 0.5 MMTPA since 1901. Modernization project of this refinery has been completed and the refinery now has an increased capacity of 0.65 MMTPA. Guwahati Refinery, the first public sector refinery of the country, was built with Romanian collaboration and was inaugurated by Late Pt. Jawaharlal Nehru, the first Prime Minister of India, on 1 January 1962. Barauni Refinery, in Bihar, was built in collaboration with Russia and Romania. It was commissioned in 1964 with a capacity of 1 MMTPA. Its capacity today is 6 MMTPA. Gujarat Refinery, at Koyali in Gujarat in Western India, is Indian Oil s largest refinery. The Gujarat Refinery, at Koyali in Gujarat in Western India, is Indian Oil s largest refinery. The refinery was commissioned in 1965. It also houses the first hydro cracking unit of the country. Its present capacity is 13.70 MMTPA. Haldia Refinery is the only coastal refinery of the Corporation, situated 136 km downstream of Kolkata in the Purba Medinipur (East Midnapore) district. It was commissioned in 1975 with a capacity of 2.5 MMTPA, which has since been increased to 5.8 MMTPA Mathura Refinery was commissioned in 1982 as the sixth refinery in the fold of IndianOil and with an original capacity of 6.0 MMTPA. Located strategically between the historic cities of Delhi and Agra, the capacity of Mathura refinery was increased to 7.5 MMTPA. Panipat Refinery is the seventh refinery of IndianOil. The original refinery with a six MMTPA capacity was built and commissioned in 1998. Panipat Refinery has doubled its refining capacity from 6 MMT/yr to 12 MMTPA with the commissioning of its Expansion project. Subsidiary refineries MMTPA) Bongaigaon Refinery (2.95 MMTPA), Chennai Petroleum (9.5
SUBSIDIARIES AND JOINT VENTURES Indian Oil Technologies Ltd.: Indian Oil Technologies Ltd. is the marketing arm for the entire range of technologies developed at the R&D Centre of Indian Oil Corporation Limited. This website gives an overview of the various technologies, products, quality services and solutions, developed and tested to meet or exceed customer requirements. These technologies are tailor made and meant to provide competitive advantage. IndianOil Technologies is built on the strength of its credibility proven in its sister divisions. Indian Oil Technologies Ltd. headquarters are located at IndianOil R&D Centre, Faridabad. Indian Oil (Mauritius) Ltd. Lanka IOC PLC - Group Company for Sri Lanka retail and storage operations which is listed on Colombo's stock exchange. It was locked into a bitter subsidy payment dispute with Sri Lanka's Government which has since been resolved. IOC Middle East FZE Chennai Petroleum Corporation Ltd. Bongaigaon Refinery and Petrochemicals Ltd. Green Gas Ltd. - joint venture with Gas Authority of India for city-wide gas distribution networks. Indo Cat Pvt. Ltd., with Intercat, USA, for manufacturing 15,000 tons per annum of FCC (fluidized catalytic cracking) catalysts & additives in India, for catering to rising global demand. Numerous exploration and production ventures with Oil India Ltd., Oil and Natural Gas corporation. BRANDS AT IOCL DEFINITIONA brand is a product, service, or concept that is publicly distinguished from other products, services, or concepts so that it can be easily communicated and usually marketed. A brand name is the name of the distinctive product, service, or concept. Branding is the process of creating and disseminating the brand name. Branding can be applied to the entire corporate identity as well as to individual product and service names.
Brands at IOCL can be broadly categorized into three categories, namely, Energy, Retail, and Customer Loyalty Programs.ENERGYi. Xtra Mileii. Xtra Premiumiii. Servoiv. Auto Gasv. Indanevi. Indian Oil Aviationvii. LNG at DoorstepRETAILi. Xtra Careii. Kisan Seva Kendrasiii. Swagativ. Servo ExpressCUSTOMER LOYALTY PROGRAMi. XtraRewardsii. XtraPower AUTOGAS AutoGas (LPG) is a clean, high octane, abundant and eco-friendly fuel. The fuel is marketed by Indian Oil under the brand name AutoGas . Indian Oil has setup 173 Auto LPG Dispensing Stations (ALDS) covering 82 cities across India. SERVO Indian Oil's SERVO range of lubricants reigns as the undisputed market leader in the Indian lubricants market. Known for its cutting-edge technology and high-quality products, SERVO backed by Indian Oil's pioneering R&D, extensive blending and distribution network, sustained brand enhancement and new generation packaging is a onestop shop for complete lubrication solutions in the automotive, industrial and marine segments. The SERVO range includes over 500 lubricants and 1200 formulations encompassing literally every lubricant requirement. XTRAMILE Indian Oil s XTRAMILE Super Diesel, the leader in the branded diesel segment is blended with world-class Multi Functional Fuel Additives (MFA). Commercial vehicle owners choose XTRAMILE because they see a clear value benefit in terms of superior mileage, lower maintenance costs and improved engine protection. A growing section of customers who own diesel automobiles, both in the lifestyle and passenger category, prefer XTRAMILE as a fuel for its added and enhanced performance. XTRAPREMIUM- Indian Oil s XTRAPREMIUM Petrol is India s leading branded petrol boosted with new generation multifunctional additives known as friction busters that prevents combustion chamber deposits. XTRAPREMIUM is custom designed to deliver higher mileage, more power, and better pick up, faster acceleration, enhanced engine cleanliness and lower emissions. XTRAPREMIUM is a sought after fuel among discerning customers who own new generation, high-performance cars who have endorsed its unmatched performance. INDANE It is one of the largest packed-LPG brands in the world. IndianOil pioneered the launch of LPG in India in the 1970s and transformed the lives of millions of people with the introduction of the clean, efficient and safe cooking fuel. INDIAN OIL AVIATION - IndianOil Aviation Service is a leading aviation fuel solution provider in India and the most-preferred supplier of jet fuel to major international and domestic airlines. IndianOil Aviation Service refuels over 1500 flights everyday from the
bustling metros to the remote airports linking the vast Indian landscape, from the icy heights of Leh (the highest airport in the world at 10,682 ft) to the distant islands of Andaman & Nicobar. XTRAPOWER The XTRAPOWER Fleet Card program is a complete smart card-based fleet management solution for fleet operators and Corporate for cashless purchase of fuel & lubes from designated retail outlets of IndianOil 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. XTRAREWARD Indian Oil XTRAREWARDS is India's first on-line rewards program that seeks to inculcate the habit of redeeming points. The loyalty program rewards customers paying by cash, credit and debit cards. Each transaction is confirmed on-line through a charge slip and customers can earn points on fuel/lube purchases at participating IndianOil Retail Outlets. Additional points can also be earned outside the IndianOil network, covering prominent FMCG, Food, Automobile, Travel, Entertainment, Apparel and Hospitality sectors. XTRACARE Indian Oil's XtraCare E branded full service petrol stations is a result of a series of processes in retail design, product and service upgradation, capability training, automation, loyalty programs, retail site management techniques all benchmarked to global standards. Today XtraCare petrol stations are synonymous in India with world-class petroleum retailing. The cutting edge technology introduced at XtraCare pumps includespetroleum retailing. automatic tank level gauges, temperature sensors, density measurement sensors, back-office server with dispensing unit controls, customer database, etc. KISAN SEVA KENDRAS - Kisan Seva Kendra is a unique award-winning retail outlet model pioneered by IndianOil to cater to the needs of the customers' in the rural segment. Today Indian Oil's KSKs have emerged as a dominant player in the rural markets, riding on the rapid growth of upcoming second and third tier roads in the rural areas. The KSKs come with a fresh perspective enabling dealers to tap the huge demand driven in by consumers there. In addition, non-fuel retail facilities like convenience stores have been added to the KSKs selling pesticides, vegetables, banking products and stationery items. IndianOil has also tied up with Indo Gulf for fertilizers, National Seeds Corporation for marketing seeds and agricultural inputs as well as alliances with Nabard, Oriental Bank of Commerce and Bank of Baroda for banking products. At some KSKs even internet kiosks, communication facilities, etc. have been installed. Business alliances have been signed to market products from Dabur, Airtel, Tata Chemicals, Godavari Fertilizers, Gokulam Fertilizers, Hindustan Unilever and Godrej Agrovet. Other alliance partners are Emami for personal care products, Money Gram for money transfer, MILMA and OMFED for milk products and Supply co. for convenience stores.
SWAGAT - Swagat Flagship Highway Retail Outlets are a part of IOCLs marketing transformation programme in keeping with its customer care year initiatives. Launched in 2004, the outlets will offer credit and prepaid facilities on Xtra power, truck tracking facility, servicing facilities for vehicles, discounts on spares and ancillaries, premium fuels and non-fuel offerings. The Swagat retail network are large format sites designed exclusively to cater to travelers on the highways. With spacious parking lots, dhabas, eateries, retail stores and restroom, the Swagat outlets provide customized services to owners of both light motor vehicles as well as heavy motor vehicles. SERVOEXPRESS - The ServoExpress is a one-stop shop for quick, easy and convenient auto care, providing customers with a refreshing experience. The ServoExpress stations have facilities for oil change, tyre/battery checkups, A/C service, vacuum cleaning, perfuming, and upholstery cleaning, polishing and lamination installation too. BRAND IOCL A part from these Indian Oil in itself is mega brand. Indian Oil is one of the most successful Indian firms ever with its huge turnover, operations and profits. Indian Oil stands for reliability, a brand people trust, and a brand deeply associated with the masses of India. The very association of IOCL with another organization or any event adds to the credibility of the associate. IOCL sponsors a number of seminars, college festivals, and similar events. The companies that do business with Indian Oil very proudly state IOCL being a part of their clientele.All the Indian Oil brands have evolved around the mother brand Indian Oil in the flagship orange and blue combination. Indian Oil is much matured brand and the branding activity carried out for brand Indian Oil can be classified as being brand sustaining and not brand building or revamping.
VALUE-ADDED FUEL BRANDS Indian Oil has to value-added fuel brands in its product portfolio: - XtraPremium Petrol and XtraMile Diesel. These brands were launched in the year 2002 following the launch of Speed Petrol by Bharat Petroleum. The term value added reflects the additional performance value associated with these brands. Over the years these brands have been heavily promoted and have gone through many price fluctuations due to external factors. Today XtraPremium and XtraMile are the leading brands in their category. Photo of xtra mila and xtra premium
CONCEPT Xtra Premium is a 91 octane premium and is a high end product which comes with friction busters along with other additives.The additive package contains proprietary components including a detergent dispersant, a friction modifier and a corrosion inhibitor, as a perfectly optimized formulation in synthetic carrier oil.The detergent dispersant cleans the fuel system and the friction modifier drastically reduces friction in the non-lubricated engine area contributing to fuel economy.Xtra Mile is the premium fuel in diesel category. It prevents engine from knocking, improves performance of the engine and adds extra life to it. It improves acceleration and cuts down on and maintenance costs. COMPETITORS & PRODUCT LAUNCH Currently there are three major players in the petroleum sector in India: Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL). All three of these organizations are PSUs and the government of India has a majority stake in these. There are only two private players with minuscule presence in the market: Shell and Essar.The first company to launch a branded fuel in India was BPCL. In July 2002, BPCL introduced Speed brand of petrol, the brand assured in the concept of positioning and differentiation in the Petroleum marketing which was by nature a commodity. Speed was initially 88 octane petrol (national standard at that time) with additives to give enhanced performance in vehicles. Now, with the compulsion of 91 octane petrol under the Bharat Stage 3 norms in 14 major cities of India, Speed is 91 octane petrol+additives in the 14 major cities of India. And, for the rest of the country it is 88 octane petrol+additives. Speed is marketed as high performance petrol. Speed is the blend of petrol with high speed additives sourced from Chevron Texaco. The additives are expected to increase the performance of the vehicle. Speed also extended itself to include Diesel fuel under the Hi-Speed diesel brand.This
was the first instance of an oil company launching branded fuel in the market. Soon, the two other leading oil companies, IOCL and HPCL also launched their own 'new generation' fuels and came up with their own value-added fuel brands by late 2002. While IOCL's branded petrol was called 'Premium,' HPCL called it 'Power.' IOCL and HPCL also launched branded diesel called 'XtraMile' and 'Turbo Jet' respectively.In December 2002, IBP launched Josh Petrol and Shakti Diesel. Later the company became a subsidiary of IOCL and the products were replaced by IOCL s existing fuel brands.IOCLs XtraPremium was launched as 91 octane petrol with performance boosting additives in the times when 88 octane was national norm. Even now, in the cities that do not have to comply with Bharat Stage 3 norms of 91 octane petrol, XtraPremium is sold as 91 octane petrol with additives.According to industry observers, this trend of launching fuel brands was in line with the global trends wherein petroleum companies tried to build a loyal customer base by branding petroleum products.As petrol and diesel had traditionally not been seen as categories with much scope for product differentiation, branding of these products came as a welcome change.It was a conscious and proactive effort of the companies towards brand building, in the wake of the radical changes taking place in the industry since the beginning of the country's economic liberalization in the early 1990s.As the industry became more competitive and customer-driven, companies needed to focus like never before on marketing strategies. The first significant development in this direction was the 'conversion' of petrol pumps (gas stations) into retailing outlets. The launch of branded fuel seemed to be the next logical step for the companies.
METHODOLOGY In the study based project we use different methods to find relevant information for different modules depending on the nature of the modules.Here, the modules are strategy, budgeting, communications and perception.The study is exploratory in nature with a blend of information coming from surveys, secondary sources and B2B interviews from industry experts. STRATEGYThis module will be supported by inputs from the following sources:B2B interviews conducted with people who were a part of the initial branding team for XtraPremium Petrol and XtraMile Diesel. Secondary data sources majorly the internet for articles, journals and case studies on the related subject. BUDGETINGThis module will be supported by inputs from the following sources:B2B interviews with industry experts and people in Indian Oil. Secondary data from the internet on spending behavior and data supplied by the company. PROMOTIONSThis module will be supported by inputs from the following sources:By studying the advertisements that have appeared in the newspapers, on the television and other sources with respect to the nature, timing, objectives and success/ROI. PERCEPTION This module will be supported by inputs from the following sources:Designing, conducting and analyzing a survey for branded fuels. o Target Group: Any Indian Citizen who owns/drives their own vehicle and is in the age bracket 18 years and above . o Methods: Online and face to face interviews. Assigning equal weightage to responses from either source. Sample Size: Minimum 100, no cap on maximum ~depending on available time.
* Below is the final survey design used for the study:-
STRATEGY
Information for this section was obtained from third party and first party data sources as well as through B2B interviews. The findings as in strategy are presented as a stepwise developing story over the years since 2002 as follows:In July 2002, BPCL launched its premium grade petrol under the brand name, 'Speed' in Delhi and Mumbai. XtraPremium was launched later same year in major cities. IOCL claimed having 15% of total petrol sales to be branded whereas BPCL claimed 25% of their petrol sales were from branded petrol. This figure was 13% for HPCL. The core team for XtraPremium and XtraMile had a task at their hand when they launched their product after BPCL. It was decided that Indian Oil will come up with a higher octane petrol compared to other brands plus the additives. The logo design for XtraPremium and XtraMile was purposefully done in orange and blue color so that the brands have a resemblance with the company. Experts claim that the very naming of these fuels was a challenge because XtraPremium could not be associated with fuel in those days. Whereas BPCLs Speed and HPCLs Power could be easily recognized as fuel brands. The name XtraPremium and XtraMile posed challenges while marketing the brands as well. Thus, the advertisements had to be made effective enough to convey the messagethe IOCLs branded fuel had something XTRA and was PREMIUM in quality. A tough decision had to be taken when the claim for extra mileage was made because mileage improvement with branded fuel usage could be observed only over a large period of time at very negligible levels that too indirectly. Keeping in mind that the Indian consumer is price sensitive, and the fact he would buy an expensive fuel only if he gets more kilometers per litre, it was decided to name the diesel XTRA+MILE. Also, the advertisements for XtraPremium claimed to provide better mileage. Many advertisements stressing on the extra mileage factor were launched one after the other for both these brands. o BPCL launched an advertisement with a Punjabi truck driver making it to the outskirts of Shanghai by mistake tried to convey this value for their brand. o At IOCL advertisements with former brand ambassador Yuvraj Singh (cricketer) claimed XtraPremium hai to chalega conveying the same value.
o Later on these advertisements were replaced with advertisements educating people on how the branded fuel goes into your engine and removes carbon deposits. The association was cricketers like Yuvraj Singh, Irfan Pathan and Anil Kumble was an attempt to convey a message that our branded fuels are better performers. o Hiring sports personalities as brand ambassadors became a norm with the three major oil PSUs. o BPCL hired cricketer Mahendra Singh Dhoni whereas HPCL hired tennis player Sania Mirza. o Currently, BPCL is the only oil PSU in India that has a brand ambassador for its branded fuels. BPCL has found a good connection with former formula one racer Narain Karthikey for its Speed brands. In the current market scenario one can say that as the market becomes competitive, brand management will require careful thought. Though differentiation remains the key to competitive advantage, it may no longer serve the purpose. All players will have to focus largely on brand building and marketing to grow in the market place. IOCL has created a hybrid of house of brands and branded house. IOCL itself being IOCL has created a hybrid of house of brands and branded house. IOCL itself being such a huge brand takes advantage to promote its brands. IOCLs brands have a distinction in name but logos have a standard resemblance. Such a strategy helps in the long run. But, contrastingly, in the survey conducted half the respondents could not connect IOCL and XtraPremium/XtraMile even with the logos visible for making the match.
BUDGETING AND PRICING
The findings for this section are based on secondary information from third party sources and interviews with key persons in Indian Oil. The findings are as follows:Indian Oil has earmarked an annual spending of 50 to 70 million INR for branded fuels for the initial brand building exercise in 2002-03. In the year 2004-05, branded fuels were heavily promoted through cricket tournaments and huge expenditure was incurred. The approximate spending on all kind of promotional activities (i.e. through television, internet, print, radio, outdoor and BTL) was around 4 billion INR in the year 2008. o This half of the total spending on promotions by all the oil PSUs in India. o These include promotional activities PAN India. o Although, not much expenditure was incurred to promote branded fuels due to high oil prices in the international market. o Promotions in 2008 were mainly for brand IOCL and Servo lubricants. o Spending on branded fuels was done majorly through BTL activities. The Indian government expressed serious concern over the high advertising and publicity expenditure, amounting to nearly 8 billion INR last year by the public sector oil companies. This is despite the fact that oil companies have pressed for hike in petrol and diesel prices, claiming that they were going incur 400 billion INR under recovering this year on account of rise in international crude oil touching $ 66 per barrel. Indian Oil spends around 20 million INR annually to educate people on protecting the environment as a part of their CSR activities. BPCL also incurs significant expenditure for promoting its branded fuels.
PRICING Despite the narrowing down of the price differential between regular and branded auto fuels, the sales of the branded or premium version of both diesel and petrol have taken a hit due to recession. While the growth in demand for branded or premium diesel has come down to 10 per cent from 17-18 per cent earlier, for branded petrol, it has dropped from 22 per cent to 19 per cent. Demand for diesel, the highest consumed product, dipped in the second half of the current fiscal, both in the branded and unbranded category. Last fiscal, the industry sold 5.8 million tonnes of branded diesel and 3.3 mt of branded petrol. This fiscal, up to January, premium diesel sales stood at 4.3 mt and branded petrol at 2.7 mt. Only a marginal improvement was seen in February-March. However, it will still fall short of last year s consumption figures. The first casualty of the economic slowdown is the spending on premium products. The shift from regular to branded products started seeing a decline since September. Also, when there is a drop in demand for regular products, premium products are bound to be affected. In fact, due to the dip in industrial activity, diesel as a product (both branded and unbranded) registered a growth of only 2.1 per cent in January from a year earlier. There was a time when branded diesel was priced Rs 2 higher than regular diesel and branded petrol used to cost Rs 4 more than the regular. Today, however, the retail price of branded diesel on an average is Rs 1.75 more. While the branded petrol price is Rs 2.50 costlier. There is also the excise duty component on the branded product which is driving the volumes down. The excise duty on petrol is Rs 0.87 per litre and diesel Rs 1.07 a litre, sources added. The branded diesel from Indian Oil Corporation is priced at Rs 32.61 a litre, while the regular diesel costs Rs 30.86 a litre.
The drop in sales has led the industry to work out strategies to make the branded product more attractive for consumers. The industry is making an effort to change customer perception and retrieve the lost market. Branded fuel sales are picking up, but at a slower pace. COMPETITORS The pricing other branded fuels have followed the same trends XtraPremium and XtraMile. All branded fuels in a category are similarly priced. BPCL has a brand called Speed 97 that is a 97 Octane fuel meant for imported cars. IOCL and HPCL also sell 97/98 Octane fuels but not as a brand . COMMUNICATIONS Communications here refer to communication done by the company for building and promoting its brands. Indian Oil Corporation Limited has a 360 degree marketing approach for its branded fuels, as in promotions are done through all possible media: - Electronic, Print, Radio, BTL, Outdoor and Web. Indian Oil outsources promotional activities. Ad agencies like FCBulka and Rediffusion have designed ads for IOCL on many occasions. The competitor BPCL follows similar methods for promotions whereas HPCL does restricted promotional activities for their branded fuels. In the following segments a compiled structure of promotional activities done by IOCL and its competitors is presented: PROMOTING XTRAPREMIUM AND XTRAMILE Photo
Above we see screenshots from TV advertisements for XtraPremium. The ad 1 conveys a value of better performance wherein the kid is enjoying his car beating all other vehicles on road and even a train. The ad 2 was more of an educator showing metallic terminator lookalike figures as friction busters removing carbon deposits from the pistons and the girl passenger in the car is amazed how the car is cruising ahead
The ad 3 is an outdoor hoarding put up on road sides during the ICC World Cup 2007 West Indies edition. The hoarding clearly reflects how branding options are exercised in an aggressive manner by IOCL. The ad 4 is a print ad for promoting XtraMile Diesel. The ad uses a land cruiser with no logo trying to establish an indirect association and also conveying a message to the consumers that their high performance vehicles need fuel like XtraMile. Photo The ad 5 is an online contest conducted by Indian Oil as brand building exercise. It is promotional campaign wherein users have to submit a punch line and they can win gifts in return. The ad 6 is a capture from a TV ad launched in early years of XtraPremium, stressing on the fact that it is 91 Octane + Friction Buster. Photo Ad 7 is a standee for the famous car in a tank offer ( 07) and ad 8 is a television advertisement for the same campaign. Only BTL activities, Print and hoardings were used for the 2nd run in 09. PROMOTIONS BY COMPETITORS Photo Ad 9 is the famous ad in which the truck driver reaches Shanghai using HP Turbojet. Ad 10 shows a direct association of Skoda Octavia with BPCL Hi-Speed diesel. Turbojet has come been promoted through many other advertisements. One of the ads that appeared around 2006 showed an SUV (TATA Safari) with horns of a beast just after it was filled with Turbojet conveying the performance and power factor. Photo
Ad 10 is of the high priced 97 Octane petrol of BPCL. With this fuel BPCL targets the niche segment of people who drive imported cars. Ad 11 is of Shell s unleaded petrol that is claimed to be eco-friendly. Shell has been selling its unleaded brand from a long time.
PROMOTING MOTHER BRANDS IOCL and BPCL spend a lot of money promoting the company. These ads basically try to communicate strong value associated with them. HPCL launched its television promos Club HP achcha lagta hai to promote its retail outlets being the only company out of the three to promote its retail outlets on television. The campaign was also a brand builder for the mother brand HPCL. Photo Ad 13 is a screenshot from a television ad to convey the value associated with Brand Indian Oil. The ad also tries to show a nationalistic image with a sense of proud. In this ad elephants are shown to be used for supplying fuel at high battle grounds when the highway is shutdown. Ad 14 is an BPCL campaign to promote the mother brand with a punch line Pure for Sure conveying a value of reliability SALES PROMOTION CAMPAIGNS RUN BY IOCL IOCL has run many nationwide sales promotion campaign for boosting the sales of its branded fuels. Major campaigns run that were run are as follows: 1. Aish in Malaysia campaign (2004): It was named to the Limca Book of World Records as the largest consumer sales promotion campaign ever: Over 43 Million customers participated in the 'Aish in Malaysia' contest. More than 3000 prizes given away. 465 outlets covered in the campaign. This was a coupon based campaign with winners being chosen through a lucky draw.2. Indian Oil Aao, Roz Ek Truck Pao (2004) This campaign was for XtraMile Diesel only. Over Rs 120 million worth prizes were declared - 31 trucks in 31 days designed to address the greatest aspiration of a driver i.e. to own his own truck. This was a coupon based campaign with winners being chosen through a lucky draw. 3. Car in a tank offer (2007) To boost sales of XtraPremium and XtraMile. 13.5 lakh SMS entries received. Tie up with Maruti Suzuki. The campaign won International Stevie Business Award. Customers had to SMS bill no. to the central database to stand a chance to win 1 SX4, 4 Swifts and 8 Alto cars.
4. Car in a tank offer (2009) To boost sales of XtraPremium, XtraMile and AutoGas. Tie up with Maruti Suzuki. The campaign could not match the success of its previous version with hoardings going unnoticed. This time 1 SX4, 4 A Star and 8 Maruti 800 cars were up for grab.Apart from these regional sales promotion camp outsourcing work to local event management companies. PERCEPTION Analyzing the various factors like brand recall, brand preference, perceived benefits and values, correlation between variables like: usage, Socio Economic Classification, Age, Vehicle type, Education, and Occupation etc. A survey was conducted with a total of 115 responses (breakup: 49 responses from the internet and 66 responses from face to face interviews). The respondents were from SEC A and SEC B. Some of the responses were received from students (and were not classified under the usual SEC grades) The survey had a dummy question to determine the error percentage by checking how alert the respondents were while filling up the survey. See page 29----40 on internet.
CONCLUSION The brands XtraPremium and XtraMile were successfully studied on the parameters of strategy, budgeting, communications and perception. It was found that the brands are well placed in the market and need a few brand building exercises to emerge from the recent negative publicities. The promotions conducted through electronic and print media were immensely successful. But, increasing the price margin between normal and branded fuels led to steep fall in sales. IOCL should come up with newer promotional campaigns for boosting sales of these brands and should look for tie ups with automobile companies to reestablish faith in the consumers mind regarding the value associated with it. XtraPremium and XtraMile were launched with not just additives but higher octane values. That was the key differentiating factor between XtraPremium and the other brands. Now, since 91 octane has become a norm in 14 cities, something should be done to reestablish distinctness. LIMITATIONS The following mentioned were the limitations in this study based project:A significant portion of the study is based on secondary information from third party sources. The figures provided in budgeting are rounded of and no information on the trend of expenditure could be obtained. The perception part has its usual limitations of people not responding correctly. In the given project study, a 9% error in the responses was accounted for using the dummy question. The earlier brand building exercise pertaining to a period between 2002 and 2006 are not significantly available through secondary data sources. Finally, there were time constraints. Studying mass brands can be a very lengthy exercise and the project could have been better presented if timing issues were not their.
SUMMARY The study based project began with the study of the nature of the organization and its business. The various brands of IOCL were studied and classified into three categories: Retail, Energy and Customer Loyalty Programs. The concept of branded fuels was studied and all information regarding these fuels was compiled. Now the brands were scanned under the parameters of strategy, budgeting, communications and perception. For doing so B2B interviews with industry experts were conducted, primary data from a specifically designed survey was analyzed and all this was amalgamated with secondary data available from third party sources. Now, with the help of a brand scorecard we try to explain the findings from the study:BRAND SCORECARD: XTRAPREMIUM & XTRAMILE Section 1: Segmentation and opportunity sizing * Priority of each segment: Performance for their vehicle and getting value for their money * Segment definition: Strictly behavioral and nothing else. * Total segment size: Affluent and/or educated fuel buyers in India (SEC A and SEC B) * Total realistic sales opportunity within the segment: All fuel buyers in India Section 2: Brand financial performance * Sales: 25% of total petrol sales and 16% of total diesel sales. * Share of total realistic sales opportunity: Section 3: Customer retention * Number of customers: 25% of Petrol users and 16% of Diesel users * Average sales per customer: NA Average net profits per customer: NA Section 4: Underlying brand franchise * Brand stature: Good with doubt in a certain percentage of customers. * Brand intimacy: Poor
* Brand awareness: Moderate * Market position/leverage: petrol and XtraMile diesel are market leaders in the highly competitive business segment, with a market share of about 47% and 59% respectively (2008) * Organizational intent to back the brand: Very good as it s a golden egg Section 5: Communications operational effectiveness * Message effectiveness: Between effective and somewhat effective * Channel effectiveness: Very good with television and significantly good with print.
Project 2: To design a sales promotion campaign for XtraPremium Petrol and XtraMile Diesel for implementation in muzaffarpur
OBJECTIVE To design a sales promotion campaign for boosting sales of XtraPremium Petrol and XtraMile Diesel in Delhi NCR. To study the market dynamics and campaigns run by Indian Oil and its competitors in the past. To study the customer behavior towards campaign and return on investment for previous campaigns. To design potential solutions under the given constraints and finalize on an idea which can be implemented in a feasible manner. The objectives of the sales promotion campaign designed should be as follows:objectives of the sales promotion campaign designed should be as follows:To boost the sales of XtraPremium Petrol and XtraMile Diesel. ° To provide for conversion of ordinary fuel users into branded fuel users at IOCL pumps. ° To provide for increased tyrefalls at IOCL pumps in order to increase IOCL s market share for fuels. To revamp the image of branded fuels and induce a behavior of regular usage amongst the customer.
REQUIREMENTS Any campaign will have different requirements at the different stages it goes through. Keeping in mind the entire process, we finalize on the following requirements:DEVELOPMENT STAGE In the development stage, we require secondary data of previously run campaigns. We also require fresh primary data regarding the consumer behavior. DRAFTING STAGE In the drafting stage, we require inputs regarding costs and the various limitations of the host company. IMPELEMENTATION STAGE In this stage, support is required in terms of logistics, management on-field activities, promotions, legal issues, proper run of the campaign. inventories,
CONSTRAINTS After having researched the products well, and analyzing the instructions from the organization; the following constraints were figured out:The campaign should be designed to run for a period of atleast 45 days and a maximum of 60 days. There should be instant gift redemption for the customers who take part in the campaign. The campaign is limited to the 205 Indian Oil and IBP petrol pumps in Delhi NCR (National Capital Region). The campaign should be designed in a manner that IOCL has to incur minimum expenditure. It should be made sure that all available branding opportunity is utilized in the best possible way and should provide for non-fuel revenue for the company. No claims regarding the value added by branded fuels should be made during the campaign.
METHODOLOGY The methodology involves understanding consumer behavior on Petrol pumps. For this the following methods are adopted:1. Analysis of previous campaigns using secondary data and information from Project 1. 2. Short SMS survey randomly asking people about what gift/rebate could act as a motivator for them to buy branded fuels. The options given were:Free Car Wash, Free Car Shampoo, Fuel rebate, Passes to a concert, Discounts at retail outlets, Discount on clothing accessories. 3. A field study of select Indian Oil Retail Outlets involving random interviews, observing the behavior of visitors (customers) using video recording and through a firsthand account. 4. A small semi structured questionnaire for people who had previously participated in campaigns for branded fuels. The questionnaire aims to find out the motivation behind the participation by these people. The questionnaire basically attempts to figure out how services at the Indian Oil Retail Outlets and Indian Oil XtraCare outlets be used in the campaign to facilitate good services to customers as an incentive for using branded fuels and also increasing the popularity of those services. The questionnaire is designed in a manner that it can be used for online, face to face, and telephonic surveys very effectively.
Semi structured questnnior
KEY FINDINGS The following are the major findings from the various methods applied as a research for providing foundation to build a campaign:1. Car in Tank Offer s first run in the year 2007 is claimed to be hugely successful. The campaign ran for two months across seven thousand five hundred fuel stations of Indian Oil across the country. The campaign offered a chance to win Maruti Suzuki cars to those who SMS their bill numbers to the central database. For the two month run, around 13.5 lakh SMS were received from all over the country. But the figure is very low for the number of petrol pumps involved for a period of over eight weeks. This implies the customers had outright rejected the chance based incentives. Customers want something that can be redeemed instantly.
2. The results of the short SMS survey revealed that most people are interested in fuel rebates. But since the fuel stations are not integrated giving fuel rebates can prove to be very risky for the company. Respondents should good interest in services like free car wash. Getting free passes for a concert was acceptable to most respondents. Discounts at retail outlets, for clothing accessories etc. were not a big hit amongst the respondents. 3. Two separate field studies were conducted and the following results were found:STUDY 1:Covered four petrol stations; 3 Indian Oil station, which two of them were XtraCare Stations, and one Bharat Petroleum station. We had a conversation with the managers from the two XtraCare stations. One was aware of the marketing stunt of the premium brands and was looking forward of a marketing campaign which can increase the percentage of premium brands sold. The other manager was resistant to the premium brands because he couldn t see the benefits of it compared to normal fuel. He also seemed like he was just the manager of the station, Indian Oil supply with fuel, besides that he doesn t has any connection or any corporate filling to Indian oil. feeling to Indian Oil.Customers are not aware of the different campaigns. For instance, one customer said he had never heard about the current campaign even though it has been going on for 3 years.
GENERALObjective of campaign: Higher percentage of customers buying premium fuels- Managers do not see any effect of premium brand campaigns => percentage of people buying premium fuel is going down day by dayo No-one care about a 10% discount at Domino s (or something similarly) if they buy premium fuel Want instant gifts/discounts or discounts on fuel (but not Rs100 discount on fuel for every 10,000 or so) o Managers think it is because of the trial going on against premium brands => No difference to normal fuel. - Automatic car washing and auto repair were not used a single time when observing the pumps- There are a lot of branding opportunities around the pumps CUSTOMERSCUSTOMERS- Most of customers sit in their cars. If not, They go out of the car and looks at the pump machineo Get out of the car mostly because they don t trust petrol workers- Do not use the stations facilities unless workers come and do services on the car while waiting for fuel - In and Out Only go to the petrol station to get fuel, nothing else.- Premium campaigns are not working customers don t even know about the current campaign- Customers who do buy premium fuelo Have bought new cars and would like to treat their cars wello Business people (also buy it for their old cars)- Customers who do not buy premium brandso Don t believe it has any effecto Customers who do not believe it has any extra mileage or it is better for their caro Heard about the trials in mediao Some engines are too old for premium brands o Is fine buy the normal fuel and is not interested in using extra rupees on a new product Why change a product that is working perfectly? ISSUESHow to convince normal fuel users to change to premium fuel need to changecustomers perception of premium fuel- How to change the perception of managers mind change to a corporate culture with Indian Oil, instead of just Indian Oil as a providerHow to change people habits when going to a petrol station to use its other services
STUDY 2:-GENERAL Customers can not be segmented on the basis of their living standard. Brand savvy people buy branded fuels but it appeared as if they could switch to normal depending on their pocket. The hoardings for the ongoing campaign Car in a Tank Offer are randomly placed. Many people come out of their cars and their main focus is on the meter placed at eye level on the pump. Most people do refueling once or twice a week and it s an activity they want to do as fast as possible. Most people have a blank time phase at fuelling stations for the waiting they have to do in queues and while filling. CUSTOMERS People who buy Branded fuel believe that it gives a better mileage and better engine protection. Their belief is mostly based on their own experience and perception. Many Branded fuel users rely on word of mouth. In the Diesel category, one Toyota Innova user said that service engineers had advised him to use normal fuel only. People are vaguely aware of the recentnews (about the branded fuels being ineffective). People are not at all aware of the ongoing campaign Car in a Tank Offer . There is a distinct segregation of branded fuel users: Some believe that by paying the premium price for the branded fuel they will get more mileage compared to normal fuel of same monetary value. Some believe that mileage factor remains constant but they use branded fuel to give a better treatment to their car.
SUPERVISORS The additives which are present in the branded fuel are readily available in the market and are much cheaper to use. People don t connect well with offers that have a waiting period before any benefits, they want instant benefits. Sales of fuels grow with increase in the number of vehicles on road but the sales of branded fuels are constant or falling. They think consumers desire results in terms of performance, once they are convinced the campaigns should work. SUGGESTIONS:We need statistical figures to support the very concept of branded fuels. The Company needs to do a rigorous brand building exercise. If we can get an established automobile company to recommend our fuel brands, people would connect well. Although, getting this done is a very complicated task but in the short run, we can engage an established player in our campaign and design the campaign in a manner that can indirectly convey an endorsement. The best brand ambassador here could be the common man. The company s claims should be clearer. The punch line Petrol with Energy Boosters can be interpreted in many ways. There has to be a proper communication network between the fuel stations and the company. There is a need for an aggressive campaign which would involve training the fuel station people for proper implementation of the campaign. The campaign should involve giving away Instant gifts. Gifts/Offers can be made more effective if they have a connection with the vehicles (like a Car Shampoo, Shiner, Car Perfume, and similar things) Any random campaign would prove no good; the campaign must have elements for revitalizing the brands.
POTENTIAL DESIGNS Keeping in mind the findings from the research conducted a set classification of potential designs can be drafted. These are as follows:1. SELF REGULATED CAMPAIGN: - A campaign with FUEL REBATE on next purchase of XtraPremium Petrol or XtraMile Diesel, and DISCOUNTS on products and services available on Indian Oil outlets. In such campaign, revenue earned for giving branding opportunities at IOCL pumps to alliance partners is used to neutralize the extra cost incurred due to fuel rebates being given away as incentives. 2. MINIMAL INVOLVMENT: - A campaign giving NO FUEL REBATE but DISCOUNTS on services and products available at stores of alliance partners. In such a campaign alliance partners majorly associate in-kind and one major alliance provides for money that has to be used for providing logistics and promotional expenses. 3. INSTANT GIFT REDEMPTION: - In this type of campaign an INSTANT GIFT like a soft drink can or a packet of chips is given away on select purchase of branded fuel. IOCL provides the alliance partner (that provides free gifts) with major promotional space. Some portion of the revenue earned by selling branding options at IOCL pumps is used for providing logistics and promotional expenses 4. DOUBLE EVENT CAMPAIGN: - In this two events are organized, one being the sales promotion campaign and the other being the END EVENT for which passes are given away as incentives. Two way revenue is generation is done from the END EVENT as well as by selling branding options. The revenue earned can be channelized to provide for organization of the END EVENT and the logistics and promotional expenses.
X Company hereby present to you a unique marketing opportunity for boosting the sales of branded fuels in the Delhi NCR region. With this proposal being implemented we promise tremendous brand mileage and building stronger relation with the customers. The scheme in itself promises to be a mega-event worth attention across sections.Current Situation XtraPremium Petrol and XtraMile Diesel are IOCL s flagship fuel brands. These brands achieved great success in their initial years and the sales had picked up decently until the fuel price crisis few years back that led to a sharp decrease in sales due to the increased price gap between the ordinary and branded fuels. Now, that the prices have been brought down XtraPremium and XtraMile struggle to attain better sales volumes. The recent negative publicity under the MRTPC Act has Act has kept customers from using the branded fuels. Our studies show that XtraPremium and XtraMile are the most popular fuel brands in the petrol and diesel category in India. Another important finding was that people who buy branded fuels can only be classified in a behavioral manner and not according to any class. It is very important that value of these brands is communicated regularly to the current and potential customers but not much branding activity was visible in the recent times for these brands. Also, the second run of the Car in the Tank Offer evoked very little response. Our studies show that a major percentage of the visitors at IOCL pumps were not aware of the offer even when the hoardings were placed at visible distance. Therefore, the situation demands a pilot sales promotion campaign that once again motivates people to buy branded fuels and realize the benefits it has to offer for their vehicle. The campaign should beinteractive with reduced traditional wait and watch approach.
Solution After a proper analysis of the situation and keeping in mind the sensitivity of the image of fuel brands we have come up with a pilot sales promotion campaign for the 205 Indian Oil petrol pumps in the Delhi NCR region. The campaign promises to be a path breaking attempt in the history of sale promotion campaigns. The core idea is to give away passes for a concert event to be held at the end of the campaign on purchase of branded fuel (XXtraPremium/XtraMile) worth rupees one thousand or more.
Objectives The main objective that our campaign will serve is to boost the sales of branded fuels at IOCL pumps. With attractive benefits on offerwhose redemption will be independent of chance the campaign should provide noticeably significant brand mileage. Our main objective can be classified into three sub-objectives: To provide for conversion of ordinary fuel users into branded fuel users at IOCL pumps. To provide for increased tyrefalls at IOCL pumps in order to increase IOCL s market share for fuels. To revamp the image of branded fuels and induce a behavior of regular usage amongst the customers. Approach In the proposed campaign we aim to exercise our experience and ideas in a manner to utilize the resources available to us to the maximum and provide tremendous brand mileage. Our business interface teams and field management teams will ensure that the entire campaign is carried out in the best possible manner. The basic approach here is to solicit alliance partners for our campaign and the event to follow in order to share the burden of promotional expenses that have to be incurred.
Methodology The methodology is to give away passes with each purchase of XtraMile or XtraPremium worth 1000 INR or more. To include the two wheeler segment coupon system will be implied. For every refueling of 300 INR or more in a two wheeler, a coupon is given away. Four such coupons can be reMethodology The methodology is to give away passes with each purchase of XtraMile or XtraPremium worth 1000 INR or more. To include the two wheeler segment coupon system will be implied. For every refueling of 300 INR or more in a two wheeler, a coupon is given away. Four such coupons can be redeemed for one pass. In case the passes are exhausted within the first three weeks of the campaign another lot of passes will be provided and a second concert night will be organized following the first one. All the activity will be managed by our teams on the ground at Retail Outlets and also during the event. Schedule We plan to launch the campaign on 1st July 2009 clubbed with the Indian Oil s Golden jubilee celebrations. The campaign will run for a period of six to eight weeks at the end of which the concert event will be held. The preparation for the campaign shall start as soon as the proposal The preparation for the campaign shall start as soon as the proposal is approved meanwhile our business interface teams are already ready with their presentations and proposals for soliciting alliance partners for the campaign. Resources The provision for all resources will be made by X Company. The material resources required will be promotional material like flex hoardings, leaflets, passes and coupons. The on ground implementation will be carried out with the joint coordination of X Company on-field management teams and Indian Oil petrol pump workers. All resources required for carrying out the concert event will be provided by X Company through further contracting the workers.
Qualifications We are proud to tell that X Company is one of the leading event management companies in India. Our Client base extends across various industries like consumer electronics, automobile, textile, real estate, petroleum etc. We have a vast experience of organizing campaigns and events with Oil PSU s in India. Our Association with Indian Oil in the last decade in many successful events makes us distinctly eligible for the job.Costs Common expense items include resource hours and rates; hardware, software, and other material costs; subcontractor fees; invoicing instructions; legal disclaimers; travel; and other reimbursable costs. A more formal description of obligations and terms and conditions can be found in Appendix A & B. X Company provide you with a proposal that is far better than any other considering the cost factor. With our network across various industries we make sure that a major portion of the cost of the campaign and the event to follow is covered up by soliciting alliance partners. In Table 1 we provide with an estimated cost structure for the campaign and the event to follow. Qualifications We are proud to tell that X Company is one of the leading event management companies in India. Our Client base extends across various industries like consumer electronics, automobile, textile, real estate, petroleum etc. We have a vast experience of organizing campaigns and events with Oil PSU s in India. Our Association with Indian Oil in the last decade in many successful events makes us distinctly eligible for the job. Costs Common expense items include resource hours and rates; hardware, software, and other material costs; subcontractor fees; invoicing instructions; legal disclaimers; travel; and other reimbursable costs. A more formal description of obligations and terms and conditions can be found in Appendix A & B. X Company provide you with a proposal that is far better than any other considering the cost factor. With our network across various industries we make sure that a major portion of the cost of the campaign and the event to follow is covered up by soliciting alliance partners.
Conclusion The campaign offers a unique branding opportunity for Indian Oil s XtraPremium and XtraMile. We are sure that the campaign will not only enhance your sales but will also help you in building a more trustworthy relationship with your customers. The campaign that would run for a period of six to eight weeks has the potential in itself by the means of incentives offered to the customers that can easily establish the required connection. Moreover, with our vast experience in handling remarkably successful events across various industries including the Oil sector would help in making sure that the event is carried out in a perfect manner and in total capacity. We look forward to your association once again and we believe that together we can carry out this bright opportunity of boosting the sales of branded fuels in the Delhi NCR region. Please refer to the Appendix A & B for obligations on part of the two parties involved and the
Conclusion The campaign offers a unique branding opportunity for Indian Oil s XtraPremium and XtraMile. We are sure that the campaign will not only enhance your sales but will also help you in building a more trustworthy relationship with your customers. The campaign that would run for a period of six to eight weeks has the potential in itself by the means of incentives offered to the customers that can easily establish the required connection. Moreover, with our vast experience in handling remarkably successful events across various industries including
the Oil sector would help in making sure that the event is carried out in a perfect manner and in total capacity. We look forward to your association once again and we believe that together we can carry out this bright opportunity of boosting the sales of branded fuels in the Delhi NCR region. Please refer to the Appendix A & B for obligations on part of the two parties involved and theThe actual manpower required for the campaign may not be determined perfectly before the campaign is in its implementation phase. - The campaign may have to be restricted to a period of less than 60 days if the planned amounts of passes are already exhausted. - Factors like meeting a sudden surge in demand for branded fuels have not been considered. The company officials claim that they can meet any possible demand but there is a lot of learning to be done from the SPC of Shell in the USA in the year 1984.
SUMMARY The task was to design a sales promotion campaign to be implemented in Delhi NCR for IOCLs XtraPremium and XtraMile. The campaign must have the main objective of providing a sudden surge in sales of these products. Random surveys through SMS, face to face interviews, field-study were conducted to figure out the dimensions our campaign should have; also, a good study of the previous promotions and the positioning of the brands in the market were kept in mind while designing the proposalIOCL had already provided with certain guidelines and constraints that were to be followed. Various ideas were generated and presented like Win-Win with Indian Oil Discounts with alliance partners were the key incentive, XtraSpin with Indian Oil Fuel rebates, free services at retail outlets, gifts from alliance partners were to be given away as incentives, Petrol Bharao Pyaas Bujhao Free Cola drink was the key incentive. Finally, a double event type campaign was selected for the proposal. In this, the first event was the campaign itself and the second event is the musical concert whose passes will be given away as incentives. In this three mega concerts with a capacity of 75,000 audiences will be organized. This depends on the duration of the campaign because the increase in tyrefalls cannot be pre-estimated accurately.
A final proposal was drafted on behalf of X Company and is being presented in this report for review.