Summer Internship Project

On
“Below Par Performance of Retail Outlet – Understanding Reasons and Solutions”
At

A SUMMER PROJECT STUDY SUBMITTED IN PARTIAL FULFILLMENT FOR

THE REQUIREMENT OF THE TWO YEAR
POSTGRADUATE DIPLOMA IN MANAGEMENT (2021-23)
By Sarvmeet Singh Chhabra
Roll Number: 114/2021

LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT

July, 2022

1
 Lal Bahadur Shastri Institute of Management, Delhi
Date: ……………

CERTIFICATE

This is to certify that the present study is based on my original research work and my indebtedness
to others’ works, publications, etc., whenever cited in this study has been duly acknowledged at
appropriate places.
This work has not been submitted either in part or in full for the award of any diploma or degree
in any university/ Institute and is now being submitted for evaluation in partial fulfilment for the
requirement of the Post Graduate Diploma in Management (General).

Signature of the Mentor Signature of the Student

[Dr. Gaurav Joshi] [Sarvmeet Singh Chhabra]
114/2021

2
 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Mr. Amit Prakash Suryavanshi, Sales and
Marketing Manager of Indian Oil corporate Limited for his immense guidance and support
throughout the course of this internship. I would like to express my heartfelt thanks to the faculty
mentor, Dr. Gaurav Joshi for giving his valuable time and support in the successful completion
of the project report. Lastly, I would like to thank Lal Bahadur Shastri Institute of
Management, New Delhi, for empowering me with the desired knowledge and attitude that
helped me ace this internship.

SIP Project Report

Submitted in partial fulfilment of the requirements for the

PGDM program
Batch 2021-23

By Sarvmeet Singh Chhabra

128/2021

Supervisor: Dr Gaurav Joshi

Lal Bahadur Shastri Institute of Management, Delhi

2021-22

3
 Index  

Objective…........................................................................... 5

Introduction…...................................................................... 6

Industry Overview…............................................................. 8

Company Overview…........................................................... 13

Competitors analysis…......................................................... 18

SWOT Analysis….................................................................. 21

Literature Review….............................................................. 25

Project 1…............................................................................ 29

Project 2…............................................................................ 36

Results ….............................................................................. 41
Managerial
Implications…......................................................................
. 44

Learnings…........................................................................... 44

Appendix…............................................................ 46

References…........................................................................ 48

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 Objectives

1. Study about understanding consumer preference about fuel station to fill their vehicle

2. To Implement and suggest ways to increase the nozzle sales of below par trading area average
of the outlets based on the research

5
 INTRODUCTION

When it comes to shopping for needs, people always have varied preferences and perceptions.
These perceptions and pictures are formed by previous experiences and brand marketing
methods such as consuming more attempts to increase quality and delivering rewards to
consumers. When making a purchase, buyers consider a variety of elements that influence their
decision. These elements help consumers form opinions about products and make purchasing
decisions. Among other things, it has been discovered that the location and service supplied to
the customer play an essential part in evaluating the quality of the product and maintaining
consumer happiness. People's behaviour is influenced by distance and location while making
decisions about approaching specific locations to purchase a product. Overcrowding can make it
difficult to get to preferred sites, such as fuel replenishing stations, and individuals may avoid
utilizing such facilities to save time and fatigue. Consumers prefer to visit nearby establishments,
therefore a fuel refilling station in a commercial area, as well as neighbouring markets and
offices, are usually more accessible to reach, especially during rush hours. Customers
understandably dislike having to stand in a long line to refuel and receive service at a gas station.
The location of the business franchise is a key determinant of business success and progress.
Customers' access to services and establishing perceptions about a certain service to obtain from
a comfortable location might be influenced by the location element. Visible areas, such as main
roadways, are easier to access than tiny streets or becoming stopped in traffic. It was also
observed that fuel refilling stations are being renovated and their surroundings are being built
elegantly so that more people will notice and be drawn to the location. To attract more people,
flashlight systems, flags, and neon lights are being used as decorations.

The billboards and sign boards are also used to market the location and its features to gain more
flow of customers than other pumps. Customers' loyalty is positively impacted by services and
relationships with them. Interaction with customers and effective dealing increase the likelihood
of developing a positive seller-customer relationship. To deliver the finest service to customers, it

6
 is necessary to understand what they require. Customers turn to the place where they will
discover rapid service, a friendly environment, and correct money handling in the face of so
many options. Consumer perception is formed by assessing the product's quality. Customers can
be satisfied by
providing them with high-quality products. The quality of services at a fuel refilling station is also
important; for example, if the service provider fills less petrol and charges more money, clients
become distrustful. There is a considerable possibility of turnover if the service provider does not
interact with consumers efficiently and makes them feel ignored. It has already been determined
that consumer engagement in assessing the quality of products and services can establish
healthy relationships with them, and they feel free to express thoughts about the services. The
quality of product ties customers to buy from the same location on a regular basis. It was
discovered that if a consumer is unsatisfied with a product or service, he is more likely to quit
purchasing the same product or service in the future.

People are also motivated and delighted by incentives and discounts provided the reward has a
considerable value to them. It was shown that in order to obtain rewards, consumers
occasionally increase the monetary cost of purchasing fundamental necessities. This consumer
attitude assists marketers in promoting their companies and creating a positive perception
among their customers. Getting a free service for purchasing a specified amount of merchandise
can persuade a buyer to buy the product. Fuel refilling stations provide limited free oil or car
service to their clients on a limited basis. They also permitted them to use credit cards, online
transactions (Paytm, Gpay, etc.)  instead of cash, making the customer feel at ease. Another
attempt was made to determine the association between consumer preference and packet size
turnover ratio.

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 Industry Overview

As the world's primary fuel sources, oil and natural gas are one of the largest industries in the
energy sector and have a significant impact on the global economy. Oil and gas production and
distribution process and systems are very complex, capital-intensive, and require cutting-edge
technology.

The industry is divided into three segments: -

Oil and gas Industry

Upstream Midstream Downstream

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 Upstream

Companies involved in the exploration and production of oil and gas are known as upstream
firms. These are the companies that search for raw material reservoirs across the globe and then
drill to extract the resources. These businesses are typically referred to as "E&P" corporations,
which stands for "exploration and production."

The upstream sector is characterized as high risks, high investment capital, long duration because
of the time it takes to locate, drill, and technological complexity involved in the process. Virtually
all cash flow and income statement line items of E&P companies are directly related to oil and
gas production.

Midstream

Businesses that are involved in transportation are classified as midstream. They are in charge of
transporting the extracted raw materials to refineries where the oil and gas is processed.
Shipping, haulage, pipelines, and raw material storage are all characteristics of midstream
enterprises. High regulation, notably in pipeline transmission, and low capital risk characterize
the midstream business. The success of upstream companies has a natural bearing on the
category.

Downstream

Refining and marketing are included in the downstream industry.

9
 While refining is a complicated process, the goal is simple: to convert crude oil by removing
contaminations and impurities, which is practically worthless in its original state, into petroleum
products, gasoline, jet fuel etc. that are used for several of purposes including heating houses,
fueling vehicles, and creating petrochemical plastics.

The wholesale and retail distribution of refined petroleum products to businesses, industries,
governments, and the public is known as marketing. Generally, crude oil and petroleum products
flow to the markets that offer the best value to the supplier, which is usually the closest market
first due to lower transportation costs and higher net revenue. However, various factors such as
refining setups, product demand mix, and product quality criteria may cause the trade flow to
deviate from this trend.

Size of Oil and Gas industry Globally

Globally oil and gas industry has increase at a compound annual growth rate (CAGR) of 25.5
percent from $4677.45 billion in 2020 to $5870.13 billion in 2021.

The increase is primarily due to companies reorganizing their operations and recovering from the
impact of COVID-19, which had previously resulted in restrictive containment measures such as
social distancing, remote working, and the closure of commercial activities, all of which created
operational challenges. At a CAGR of 6%, the market is estimated to reach $7425.02 billion in
2025.

Oil and Gas Industry in India

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 After the United States and China, India is the world's third largest crude oil consumer. With a
CAGR of 4.09 percent, India's total crude oil consumption increased from 148 MMT in 2011–12
to 221.77 MMT in 2020–21. Due to disruptions caused by the COVID-19 pandemic, consumption
fell by 12.82 percent in 2020–21 compared to the previous fiscal year. Natural gas usage was
anticipated to be 60.64 billion cubic meters, down 0.67 percent from the previous fiscal year. In
2019-20, US$101.4 billion was spent on oil imports. In the fiscal year that concluded on March
31, India's crude oil import bill totaled USD 119 billion.

In India around 80% of the market in Oil and gas industry is captured by PSUs and rest 20% by
other private organizations like Reliance industries, Shell group, Essar group etc.
Pie chart below shows the market share of all the PSUs. Indian oil corporation is the market
leader in terms of market share with over 40% market.

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12
 Company Overview

Indian Oil Corporation Limited (IOCL) is a state-owned oil and gas exploration and production
company in India. It is owned by the Indian government's Ministry of Petroleum and Natural Gas,
which is based in New Delhi. As of 2021, the government firm is placed 212nd on Fortune's
Global 500 list of the world's largest enterprises.

Indian Oil's business activities span the whole hydrocarbon value chain, including refining,
pipeline transportation, petroleum product marketing, crude oil, natural gas, and petrochemical
13
 exploration and production. But is majorly focused on refining, distribution and marketing of the
products.

Indian Oil has branched out into alternative energy and globalization of downstream operations.
To enable timely delivery of products and efficient inventory management, irrespective of
constraints of difficult terrain, climate, and accessibility, the company's network of over 56,000
retail outlets across the nation. This includes over 32,000 gasoline stations outlets in rural
markets, including Kisan Seva Kendra (KSK) outlets, all of which are fully automated for quality
and quantity assurance. For the ease of large-volume users such as the military, railways, state-
owned transportation companies, industrial, agricultural, and maritime sectors Indian Oil also
has about 7,000 specialized fuel pumps which even provide doorstep delivery of diesel.

The Company is mainly divided into seven divisions which are

1. Refineries Division
2. Pipelines Division
3. Marketing Division
4. R&D Division
5. Petrochemicals Division
6. Exploration & Production (E&P) Division
7. Explosives and Cryogenics Division

Operations

As mentioned above the industry is divided into three segments upstream, midstream, and
downstream, Indian oil is mainly involved in midstream and downstream businesses which
includes refining, pipeline distribution and transportation and marketing of the products. But as
government is focusing on reducing oil imports and focused more on renewable energy the
company is gradually inclining towards Exploration and Production.

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 Import, purchase, and exploration

First, IOCL either explores and produces crude oil or imports and purchases crude oil from ONGC
to convert it into finished products. Indian Oil Corporation Limited imported the highest volume
of crude oil in the financial year 2021, with approximately 53.6 million metric tons, to meet its
rising needs.

Total Import of crude oil by IOCL over the period of 7 years

Refining

IOCL refines crude oil to remove impurities before transforming it into finished goods for
consumption of general people. Indian Oil, which was founded on the objective of achieving
national self-reliance in oil refining and marketing, has amassed a dazzling heritage of more than
100 years of accumulated experience in all areas of petroleum refining. The group's refining
capacity is 80.55 million metric tons per annum (MMTPA), which is the highest among Indian
refiners. It has about a 32 percent share of the country's refining capacity.
15
 REFINERIES MMTPA
Digboi 0.65
Guwahati 1.00
Barauni 6.00
Gujarat 13.70
Haldia 8.00
Bongaigaon 2.70
Mathura 8.00
Panipat 15.00
Paradip 15.00
Total 70.05
CPCL, Chennai 10.50
Group Total (including CPCL) 80.55

Pipeline and Distribution

After the crude oil is refined into different products they are distributed through a network of
pipeline laid across India of more than 15000 kms. The final products is sent to oil depots LPG
bottling plants lube blending aviation fuelling stations. Indian Oil has the largest and the longest
network of pipeline in the nation to distribute its products which are highly maintained and
controlled through automation.

Marketing

With over 50,000 marketing touch points, Indian Oil boasts one of Asia's largest petroleum
marketing and distribution networks. Its ubiquitous petrol stations can be found across the
Indian subcontinent in a variety of terrains and locations. Indian Oil’s vast marketing
infrastructure of petrol/diesel stations, Indane (LPG) distributorships, SERVO lubricants & greases
outlets, and large volume consumer pumps is backed by bulk storage terminals and installations,
inland depots, aviation fuel stations, LPG bottling plants, and lube blending plants, among others,
from the icy heights of the Himalayas to the sun-soaked shores of Kerala, from Kutch on India's

16
 western tip 16 State Offices and nearly 100 decentralized administrative offices handle the
country's marketing operations.

Products
 Indane Gas
 Auto Gas
 Natural Gas
 Petrol/Gasoline
 Diesel/Gas oil
 ATF/Jet Fuel
 SERVO lubricants & greases rightright
 Marine Fuels & Lubricants
 Kerosene
 Bulk/Industrial Fuelsrightright
 Bitumen
 Cryogenics
 Petrochemicals right
 Crude Oil

Revenue

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 The graphs depict the operating revenue of Indian Oil from FY15 to FY21. Indian Oil earned ₹5.1
tr in FY21

Competitors

BPCL

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 Bharat Petroleum Corporation Limited (BPCL) is an oil and gas exploration and production
company controlled by the Indian government. It is owned by the Government of India's Ministry
of Petroleum and Natural Gas, which is based in Mumbai, Maharashtra. With 18,622 fuel stations,
it’s India's second-largest downstream government-owned oil firm has flourished in the market
with its Pure for Sure promise.

The following refineries are owned and operated by Bharat Petroleum:

• Mumbai Refinery: Located in Maharashtra, near Mumbai. It has an annual capacity of 13 million
metric tons.
• Kochi Refinery: This refinery is located near Kochi in Kerala. It has an annual capacity of 15.5
million metric tons.
• Bina Refinery: Located near Bina in Madhya Pradesh's Sagar district. It has an annual capacity
of 7.8 million metric tons. This refinery began as a joint venture between Bharat Petroleum and
Oman Refineries Limited (BORL) (formerly known as Oman Oil Company).
• Numaligarh Refinery: Assam's Numaligarh Refinery is in Numaligarh in the Golaghat district. It
has a yearly capacity of 3 million metric tons.

BPCL’s revenue climbed by 23.5 percent year on year. Its income increased to Rs. 4,325.69
billion in FY21 from Rs. 3,042.75 billion the previous year. During fiscal year 2021, Bharat
Petroleum Corporation Limited's overall sales volume was around 38.7 million metric tons. Liquid
petroleum gas, lubricants, aviation fuel, direct, and retail sales all contributed to this total.

HPCL

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 The Hindustan Petroleum Corporation Limited (HPCL) is a subsidiary of the Oil and Natural Gas
Corporation, which is owned by India's Ministry of Petroleum and Natural Gas and has its
headquarters in Mumbai, Maharashtra. It has a 18% market share in India, as well as a robust
marketing infrastructure. HPCL operates 15,127 outlets across the nation.

 The Mumbai Refinery has a capacity of 9.5 million metric tons.

 Visakhapatnam Refinery has a capacity of 8.3 million metric tons; Mangalore Refinery has a
capacity of 9.69 million metric tons (HPCL has a 16.65 percent stake).
 The Guru Gobind Singh Refinery has a capacity of 9 million metric tons (HPCL and Mittal
Energy each have a 49 percent stake).
 The Barmer Refinery will have a capacity of 9 million metric tons (HPCL has a 74 percent,
Rajasthan Government has a 24 percent stake)

HPCL announced its highest-ever annual sales revenue of Rs. 3,72,642 crores in FY 2021-22, up
38 percent from Rs. 2,69,243 crore the previous year. During the financial year HPCL has
achieved domestic sales volume of 37.45 MMT as compared to 35.20 MMT in the same period
previous year, representing a growth of more than 6 per cent.

Reliance

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 Reliance Petroleum is an Indian petroleum company that specializes in oil and energy, owned by
Mukesh Ambani of Reliance Industries Limited (RIL), one of India's largest private sector
companies. It has interests in the downstream oil market and is based in Ahmedabad, Gujarat,
India. On September 29, 2009, RPL merged with Reliance Industries Limited.

RPL’s Jamnagar is the world's largest refinery, with crude processing capacity of 1.24 million
Barrels Per Stream Day (BPSD). Using the Nelson Complexity Index, it will have a complexity of
21.0, making it one of the most complicated in the industry. Reliance operates 1394 retail outlets
across the nation.

SWOT Analysis

STRENGTHS

 Strong Distribution Network: Indian Oil has a strong distribution network of 10,000
distributors and a brand of LPG cooking gas called Indane that serves 12 crore households. It is a
global leader in the lubrication business under the trademark Servo. Every day, the company's
21
 107 aviation fuel systems power 1,750 flights. IOCL is a well-known brand in India. Reader's
Digest-AC Nielsen Survey rated the company one of India's "Most Trusted Brands" in the
"Gasoline" category. By pledging to build customer relationships, innovate, harness technology,
and care for the environment and the community, the firm has stayed true to the brand's
mission.
 Pipeline Network: The firm owns and manages a pipeline network that spans the country,
transporting crude oil, refined petroleum products, and natural gas. The company just finished
installing 543 kilometres of new pipeline sections. The company owns and manages two SPM
terminals in the high seas of Vadinnar, as well as three other SPMSingle-Point Mooring (SPM)
terminals in Paradip used to moor pipeline systems that deliver crude oil from ocean tankers to
onshore tank farms. The firm runs enormous crude oil tank farms, ensuring easy onward
transport to refineries via pipelines.
 State-of-the-Art R&D Facility: IOCL has the most modern R&D facility. It has pioneered
research in lubricants, pipelines, refineries, alternative fuels, engine testing, and environmental
sciences. The company possesses 554 patents in India and other nations. The R&D centre is
housed on a sprawling 65-acre campus in Faridabad, India. The centre has been successful in
generating cost-effective, socially ethical, and environmentally friendly technical solutions. IOCL
is committed to doing cutting-edge research in nanotechnology, polymers, coal gasification, and
petrochemicals, as well as polymers and petrochemicals.
 Focus on Sustainability: The firm has long believed in sustainability and was an early investor
in renewable energy sources, collecting a 200-MW portfolio of solar and wind generating
capacity that is rapidly developing. IOCL is investing in and studying a variety of waste-to-energy
options as part of the government's Swachh Bharat Abhiyan. IOCL is also the industry leader in
converting the retail network to run on solar energy, with about one-third of its gas stations
powered by solar energy. The majority of the company's efforts are directed on making its
operations more ecologically friendly, with the goal of lowering its water and carbon footprints
by 20% and 18%, respectively.
 Strong Brand Portfolio: IOCL has made considerable investments in creating a strong brand
portfolio throughout the years. This is backed up by IOCL's SWOT analysis. If the company wants
to expand into other product categories, this brand portfolio could be quite useful.
 Effective Go-To-Market Strategies: Its Go-To-Market techniques for its products have proven
to be incredibly effective.

22
  Good Training Programmes: A highly skilled workforce has resulted from successful training
and learning programmes. IOCL makes significant investments in employee training and
development, resulting in a staff that is not just highly skilled but also driven to achieve more.

WEAKNESS

 Tough Competition: IOCL's main competitors are Reliance Industries, ONGC, Hindustan
Petroleum, and Bharat Petroleum. Bharat Petroleum, another major IOCL competitor, has
invested in many R&D efforts. It is also a Fortune 500 firm that operates massive refineries in
Mumbai and Cochin. IOCL must make strategic decisions and investments to stay ahead of the
competition and prevent losing market share.
 Government Control: IOCL has experienced large losses as a result of the government's
administration of gasoline pricing policy, because the centre routinely fails to follow through on
its commitments to keep gasoline prices artificially low. The firm continues to borrow and spend
more in order to provide a consistent supply of gasoline to consumers, but rising interest charges
reduce their earnings, limiting their ability to drive the new modernization project.
 Need more investment in new technologies: Given the scope of expansion and the various
geographies into which the company intends to expand, IOCL must invest more in technology to
unify operations across the board. Currently, technology investment is not keeping pace with the
company's objectives.

OPPORTUNITIES

 Growing Business and Need: In response to India's growing demand for fuel, IOCL's core
business has been transportation and distribution of petroleum products, as well as refining and
other associated services. Over time, the company's activities have expanded throughout the
hydrocarbon value chain, including oil and gas exploration and diversification into natural and
alternative energy sources.
23
  Market Expansion: IOCL has progressively expanded its operations around the world, with
offices in the UAE, Bangladesh, Myanmar, Mauritius, Singapore, and the United States. The
company's operations have also been developed through collaborative collaborations with
respectable partners from both outside and inside India. Ratnagiri Refinery and Petrochemicals
Ltd. was established as a partnership between BPCL and HPCL. The company is doing
exceptionally well in the international market and has created numerous opportunities for the
organisation.
 Increasing natural gas market: Natural gas is becoming a cleaner alternative to fossil fuels,
and the Indian government is pushing for a gas-based economy and measures to utilise it across
industries. IOCL acquires liquefied natural gas (LNG) from long-term contracts with overseas
suppliers. IOCL now distributes LNG to 58 institutional clients in the power, fertiliser, steel, and
industrial sectors.

THREATS

 Government Policies and Regulations: The decision by the government to give residents with
relief from rising gasoline prices resulted in enormous losses for the firm. Companies like IOCL,
BPCL (Bharat Petroleum Corp. Ltd.), and HPCL (Hindustan Petroleum Corp. Ltd.) were expected to
lose Rs. 9000 crores in net profit. Certain government initiatives to cut the price of gasoline and
diesel have a substantial impact on the company's earnings.

 Economic Conditions: The company is grappling with several difficulties, including rising oil
prices, currency fluctuations, and growing concerns about air pollution. The company's principal
purpose and strategy are to meet the challenges and opportunities presented by environmental
circumstances, as well as to integrate and diversify activities across its global business. In such
unpredictable times, the company's efforts are essential.
 Liability Laws: Because liability laws differ from country to country, XYZ may be subject to a
variety of liability issues if policies in those markets change.

 Currency fluctuations: Because the company operates in multiple countries, it is vulnerable to

currency swings, particularly given the turbulent political atmosphere in several global markets.

24
 LITERATURE REVIEW

1. It was said by Dr. T. Srinivasan (Feb. 2015) in his paper that Understanding buyer behavior is
essential in marketing strategy and execution. Buyer behavior is one of the most critical factors in
marketing success. It is a procedure. Potential clients are exposed to a variety of stimuli. We see
the customer as a black box because we cannot see what is going on in his mind. He answers to
the marketing executives. A stimulus-response model describes buyer behavior model. The

25
 response could be a purchase or no-purchase choice. In the current situation, the vehicle
Companies are offering unbelievable prices and schemes in order to increase their sales volume.
This attracts people   to acquire a greater number of vehicles, and it increases people's
consumption to purchase a greater number of cars automobiles, and it increases the
consumption of Fuel. It makes it more difficult for the government to obtain the maximum
amount of petroleum available in the country. In this situation, the government has liberalized
petroleum policy to allow petroleum corporations to set their own prices in consultation with
OPEC (oil and petroleum exporting council), and private petroleum corporations can open their
own retail outlets to build their brand and capture the market. A study was done to determine
consumer preferences for retail outlets (petroleum firms). It aids in determining consumer
perceptions of petroleum firms and in developing brand image among petroleum corporations.

2. Musa Manneh, Mikhail Kozhevnikov & Tatyana Chazova (2020) Said that In today's highly
competitive business environment, service businesses involved in marketing strategies are
oriented toward responding to consumer wants and preferences while also improving their
competitive advantage. One significant strategy to increasing the competitive edge of the petrol
station business is to investigate the drivers of consumer preference. Despite extensive studies
on consumer behavior, particularly variables influencing a new brand or product, there is less
empirical research on the assumption of determinants of consumer preference, particularly in
the fuel station sector, leaving a gap in this field. To that aim, the purpose of this paper is to
address a knowledge vacuum by investigating the drivers of consumer preference and their
impact on service station operations in the Gambia. This implies that gas station companies
should implement key marketing programmestrategies such as sales promotion, innovative
product advertising, event sponsorship or association, as well as the provision of additional
services such as windscreen cleaning, water and air pumping, convenience store, fuel and motor
product accessory sales, and services in order to increase sales and retain many buyers as loyal
customers.

3. It is written by Santanu Purohit and Arvind Kumar Jain that in today's competitive business
environment, every industry has undergone substantial change on the technology adoption front
26
 for increased efficiency, and the service industry is following suit. This pattern holds true in India
as well. Over the last few decades, Indian retail has witnessed a sea change, and the Indian Petro
retail industry has developed from commoditized sale to service-based product offerings. This is
due to greater competition from new private players and deregulation. With increased
competition in the gasoline retailing industry in India, understanding customer behavior and

preferences is critical for gaining a competitive advantage. Few research on consumer behavior
have been conducted; however, very little work on understanding consumer preferences has
been done in the Indian gasoline retailing sector. The purpose of the research is to discover
consumer preferences in the Indian Petro retailing market and their impact on customer
purchasing decisions.

4. A study by R Krishna Kumari, Dr. N Yesodha Devi (2016) said that the evolution of the
convenience shop in the Petrol Station has experienced a major shift, with all players now
moving toward a consistent appearance to indicate their seriousness in extending their retail
business beyond the delivery of gasoline goods. Customers are offered a variety of services
ranging from a food shop to a pharmacy, an ATM, and portal counters in order to improve their
customer experience, loyalty, and happiness. The current study is being conducted to identify
consumer consuming behavior in petrol retail outlets, the amount of priority given by consumers
to various services in petrol retail outlets, and to examine the services used by customers in
petrol retail outlets. In Coimbatore, a sample size of 200 was chosen using the convenience
sampling approach. The results suggest that most respondents ride a two-wheeler, and the
majority of respondents fill up their vehicles with gasoline once a week for less than Rs.1,000.
The respondents value air pressure checks and use this service frequently in gas stations.

5. It is said by Alvi, Mohsin and Ikram, Midra and Mirza, Mohammad Haris and Khan, M.
Mubashir Q (2016) that the study's goal is to learn about people's attitudes around the selection
of petrol pumps in Karachi. To that end, it was postulated that (1) location has a considerable
influence on the choice of Petrol Service Stations. (2) The choice of Petrol Service Stations is
heavily influenced by quality. (3) The choice of Petrol Service Stations is heavily influenced by

27
 rewards. A random sample of 200 respondents completed a self-reporting questionnaire. To
evaluate the observations, a one-sample t-test was used on the collected data. It was discovered
that neither quality nor location nor reward have an impact on consumer choice of petrol pump.

6. M.Prasanna Mohan Raj and Raj Milan D.R (December 2013) said that The Indian fuel market
is divided into two categories: government-regulated organizations and private players such as
Reliance and Essar. The country's refining capacity has increased from 187.386 million metric
tons per annum (MMTPA) in 2011 to 213.066 (MMTPA) in 2012. Prior to globalization, the only
marketing function dominating in the petroleum sector was distribution, as the entire industry
was owned and controlled by the government. After privatization, the holistic marketing idea
gained traction in the petroleum business. Customer service has become increasingly important
at gas stations. In 2012, there were over 45,000 petrol retail shops in India, comprising both
public and private sectors. The purpose of this research is to discover the characteristics that
influence customers' preferences for a certain petrol retail shop. This also contains a comparison
of factors influencing petrol retail outlet preference between cosmopolitan cities and tier 2 cities.
This study also assesses customer commitment in gas stations. This study also identifies the four
degrees of customer expectations.

Research methodology

28
 For conducting the research there was a need of collecting both primary as well as secondary
data. The secondary data was collected from various sites. The primary data was collected in the
form of google form. The research was mainly focused on primary data to understand that which
factor were responsible for understanding the preference of consumers while selecting a retail
outlet. For the study purpose a sample size of 281 respondents was used.

Area of study : IOCL retail outlet, Noida has been the sole area for study.

Resource approach : reliability test, chi square, discriminant analysis were carried out to
understand the factors for the brand preference. And through quantitative analysis
mathematical functions were obtained which tells about the effect of independent variables over
dependent variables

Project 1

Study about the factor affecting the consumer preference about fuel station to fill their vehicle.
29
 Sampling Plan

Population Universe:

People who are above the age of 18 & have a vehicle

Sampling Unit :
Colleges, households, corporate offices, shops

Sampling Element:

Employed, Self-employed, Unemployed individuals and students

Sampling Technique:
Non-probabilistic method of sampling
Standard Deviation (s) = 0.67,
Z value at 95% Confidence interval = 1.96
Tolerable error (e)= 7.8%
Sample Size (n) = 281

Demographics

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 Chart Title

51
98

63

69

18-25 25-35 35-50 50 above

Division of age group according to response

Chart Title

96

185

Male Female

Division of gender according to response

Techniques of Data Analysis used

Chi Square Analysis:

Helped in finding out the relationship between customer purchase intentions with respect to
their demographics.

The chi-square analysis is appropriate when we need to do the following:

a. Test whether two or more distributions are identical.

b. Compare a distribution with a reference distribution such as the normal distribution.
c. Compare the proportions or frequencies of categorical data (Goodness-of-Fit)

Discriminant Analysis:

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 Done to understand the distinction between the factors that consumer prefer while deciding
which brand they prefer to fuel their vehicle
Discriminant analysis is a vital statistical tool that is used by researchers worldwide. Machine
learning, pattern recognition, and statistics are some of the spheres where this practice is widely
employed. So, what is discriminant analysis and what makes it so useful?

Discriminant analysis, just as the name suggests, is a way to discriminate or classify the
outcomes.

It takes continuous independent variables and develops a relationship or predictive equations.

These equations are used to categorise the dependent variables.

Data Analysis

Reliability Test

Cronbach’s Alpha test is used to evaluate the reliability of the questionnaire:

Since the Alpha is coming to be .919 which is much more than .65, we can conclude that the
questionnaire is reliable

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 Hypothesis Formulation

Hypothesis 1
H0- There is no significant relationship between the fuel station preference and age group.
H1- There is significant relationship between the fuel station preference and age group.

Hypothesis 2
H0 - There is no relation between the employee behaviour and fuel station preference
H1 - There is relation between the employee behaviour and fuel station preference

Significance level – 5%

Hypothesis 1

Looking at the Pearson Chi-Square value of .000, we reject the null hypothesis and conclude that
there is significant relation between age group and fuel station preference.

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 Hypothesis 2

Looking at the Pearson Chi-Square value of .012, we reject the null hypothesis and conclude that
there is a relation between employee behaviour and fuel station preference.

DISCRIMINANT ANALYSIS

The objective of discriminant analysis is to develop discriminant functions that are nothing but
the linear combination of independent variables that will discriminate between the categories of
the dependent variable in a perfect manner.

Dependent Variables:

Brand they prefer to fuel vehicle

Independent Variables:

Early Turnaround
Location
Additional services
Marketing programs

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 Hygiene

35
 Employee experience rating

This was the rating given to the employees by customers on the overall behavior of the
employees which included how well-groomed they were, how they treat and greet the
customers

Employee experience

1 27

2 48

3 89

4 67

5 50

Chart Title

0 10 20 30 40 50 60 70 80 90 100
Employee Experience

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 Project 2

Suggestion and Implementation

Oil and gas industry in some sense can be categorized as a service industry as price for the
product of each company is almost because they are controlled by the government. So service is
the factor which can influence the sales. After visiting the outlets, we learned that the outlets
which were performing below par have few common problems and few unique one. Like outlet
was isolated due to wrong location, which was an important factor according to our research,
employee behavior, retail space management to name a few are the factors which were giving
birth to other problems as well. We had to build the strategies very meticulously and individually
for each below par performing retail outlet based on our research as for outlet at the wrong
locations needed to be treated differently than the outlets with mismanaged retail space.

Average Turnaround time figure

The below table shows the percentage change in turnaround time before we implemented the
strategies and after few implementations, during the period of 25 April 2022 to 30 April 2022
which includes weekdays as well as weekends and we took data for different time slots taking
into consideration high traffic time like office hours and low traffic time like afternoons and
nighttime.

Average 25 April-30
Turnaroun April
d time
7am-11am 7.5min

11am-5pm 6min

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 5pm-10pm 7min

Reducing Turnaround time

Retail space

Under Retail space we sub-categorized outlets under two sub-heads

1. Outlets with mismanaged retail space
2. Outlets with less retail space

Outlets with mismanaged retail space

These outlets were having enough space to offer all the free services and accommodate traffic
aptly but because of wrong placement of facilities and traffic mismanagement outlets looked
congested and drove away the customers.

For such outlets we first mapped out the space which all the services together are going to
consume to understand approximately how much free space will be left. Also, how these services
can be accommodated in a more crimped manner. Which can help reduce congestion and make
outlet look more spacious.
We also suggested to cut down the D space and decorate it with planters which can widen the
entry space for vehicles reduce the congestion.

Outlets with less retail space

These were the outlets which were running at the busy locations of the city and had less and
expensive retail space to accommodate the traffic and all the services.

38
 For these outlets we suggested to cut on few services as if customers will wait to use the service,
they are going to stay at the retail space for more amount of time. And to increase the early
turnaround time we suggested to reduce few services and presented a model to accommodate
traffic in a better manner.

Traffic Marshal Training

We trained Traffic marshal to first accommodate the dispensing units at the back which made
the area at the front look more spacious and attracted a greater number of customers. Also, we
mapped out the alignment for vehicles to enter, fuel and exit into three different lanes to help
traffic marshal direct vehicles in a standardized manner.

Map of outlet we designed to train the employees

Location

Although Indian Oil has the largest distribution network across the nation and have presence at
almost all the nook and corner of the country which gives it edge over its competitors, but few
outlets due to reason were isolated perhaps because of flyover etc.

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 This is the one thing which cannot be changed hence we came out with a different solution that
instead to taking service to the busy location guiding customers and promoting call to action
through various sign boards and billboards at the busy and near locations. We also suggested
that as the schools and institutions are running completely on offline modes outlets should tie-up
with them offering various discounts and credit facilities as they will be our permanent and long-
term customers.

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 Additional services

Indian Oil provide multiple free additional services like Free air and nitrogen filling, Windshield
cleaning, Free oil change and servicing for two wheelers at ROs in cities and much more services
under its Swagat scheme at ROs on highways for fleets and truckers.

At many of the ROs these of the services were not provided by the retailers or the placement of
the service points were such that they were not visible to the customers. At few outlets we
initiated to get at least the basic services started like free air filling, windshield cleaning. We also
suggested to change the placement of the oil change and service station box at the place where
it’s in the view of the customer so that the Indian Oil’ Servo sales can also grow.

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 Employee Training

Customer Attendants were the one who were the first point of contact with the customers and
their behavior could influence the sales up to a great extent, hence we trained employees to
behave in certain manner and gave them a standardized manual which described how they must
treat and greet the customers. Also, to avoid any dispute happening at the outlet we instructed
them not to deal with any dispute under canopy by themselves and guide the customer to the
supervisor. We prepared a sales pitch for our premium product and lubricants.

Results

Project 1

From our research we derived that there was a significant relation between age group and the fuel
station preference and also between employee behaviour and fuel station peference of the consumers
through chi square analysis

We also researched about the most significant factors that influence the consumer preference
regarding fuel station to work on the factors which can impact the sales of the outlet through
discriminant analysis.

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 Project 2

With the strategies we implemented to reduce the turnaround time we were able to reduce time
by 33.33% in morning slot, 25% in afternoon slot and 14.28% in evening slot. Also with the traffic
marshal training and mapping out the outlet on the basis of dispensing units and type of vehicle
it was easy to accommodate more number of vehicles.

Average 25 April-30 03 June - 08 Percentage

Turnaroun April June Change
d time
7am-11am 7.5min 5min 33.33

11am-5pm 6min 4.5min 25

5pm-10pm 7min 6min 14.28

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 Retail Petrol Diesel Petrol Diesel Trading Trading
Outlet (outlet (outlet (outlet (outlet area area
s ) 18-24 ) 18-24 ) 03-09 ) 03-09 averag averag
Apr Apr June June e e
(Petrol) (Diesel)
Avg. Avg. Avg. Avg.
Per Per Per Per
day day day day
Rajiv 3125 2357 4073 2745 4500 3000
Fill and ltrs ltrs ltrs ltrs ltrs ltrs
Drive
Jain 5386 3569 5763 4049 6000 4500
Service ltrs ltrs ltrs ltrs ltrs
ltrs
Station
JRO 6274 4682 6923 5156 8000 6500
Noida ltrs ltrs ltrs ltrs ltrs ltrs

Although we were not able to get all the outlets at par with trading area average, significant
growth in sales happened due to the strategies we implemented based on our research in terms
of location, turnaround time and additional services.

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 MANAGERIAL IMPLICATIONS

There should be a systematic approach to everything, and decisions must always be data-led.
The extensive research presented in the report facilitated the ideation of possible strategies.
There can be many other parameters which can be explored to determine how Below par
performance of retail outlets affect the preference of consumers in choosing the outlet from
which they want to get their fuel refilled and further what are the strategies to improve the sales
of Retail Outlet,

Noida and further to the implementations. Only the data and parameters pertaining to the
company were considered. Sometimes, too much data creates ambiguity and appropriate
decisions are made keeping and analysing only the relevant data.

1. The strategies to improve the Sales of retail outlet, Noida, can be used for various other IOCL
Applications as well in the future.

2. Every participant in the process of creating a seamless experience was shown to play a
significant influence in encouraging customers to show their preference in choosing the outlet.
As a result, it is critical for a manager to give special attention to the effective administration of
each level.

LEARNINGS

1.I was given the opportunity to apply classroom learning into practical projects. Analytical tools
and frameworks like SWOT were used which are studied in subjects like Marketing Management
45
 and Marketing Research. These concepts are not only important from a learning point of view
but are also used by many companies to conduct an in-depth research and analysis of Research
scientists mostly utilizing evolutionary software to assist them handle crucial data in easy stages.
The results may be acquired using a graphical representation, allowing the user to grasp the
result quickly.

2. During my internship, since I was expected to talk to consumers and consumer attendees at
times, and the discussions used to happen one on one. I was given full autonomy to take the
discussion forward in a way I was comfortable with, with due guidance from my industry mentor.
This helped me not only hone my communication skills to a great deal, but also equipped me
with some basic business jargons which becomes crucial in a B2C setup.

3. Working on the market research project helped me understand the challenges that are
needed to be addressed before sending a questionnaire out to people to fill in and how to collect
the required information, based on which managerial decisions can be taken. It also taught me
how to appreciate even the most trivial details, nuances as that can prove to be crucial for vital
business decisions.

4.Working on different projects simultaneously, I learnt how to better cope with the stressful
environment while making sure that the deadlines are met on time.

IMPACT ON INTERNSHIP DUE TO COVID-19

My two-month long internship began on 15th April, 2022. The induction process took place in
the divisional office of IOCL in Noida. I was briefed about the company and its culture and what
was my project and its timeline. I was explained the work by my mentor who was sales and
marketing manager, Noida . From there began my internship journey.

1. There was no such effect of Covid-19 on the Internship. The internship was in offline mode i.e.,
we have to report on a regular basis to the company and do daily assigned tasks. We deal directly
with the customers, and our seniors. But some prevention measures were taken care off like
sanitization, mask is mandatory, maintain a sufficient social distance.

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 2. An organization’s physical environment is a stimulus for employee growth. Most of my peers
missed out on this exposure with internships being work-from-home but I had the opportunity to
experience the challenging corporate environment. Interacting with people at the workplace, not
only does the intern understand the workplace and its employees but also figures out one’s
interests, for example, the domain one is more inclined towards. I made sure that the situation
does not impact my experience.

Appendix

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48
 References

https://iocl.com

https://en.wikipedia.org/wiki/Indian_Oil_Corporation

https://www.statista.com/topics/1783/global-oil-industry-and-market/#topicHeader__wrapper

https://www.statista.com/statistics/715296/india-import-volume-of-crude-oil/

https://www.researchgate.net

https://www.ibef.org/industry/oil-gas-india

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 https://www.mordorintelligence.com/industry-reports/india-oil-and-gas-market

http://petroleum.nic.in/sites/default/files/pngstat_1.pdf

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