A LIVE PROJECT ON

STUDY OF BRAND EFFECTIVENESS OF XTRACARE RETAIL OUTLETS OF IOCL

A live project submitted to IOCL RETAIL DIVISIONAL SALES OFFICE, AHMEDABAD during the SUMMER INTERNSHIP of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted by DEVANSH RIDHVAJ BHATIA

IOCL AHMEDABAD
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(2011)

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CERTIFICATE TO WHOM SO EVER IT MAY CONCERN This is to certify that the project titled A Study of Brand Effectiveness of XtraCare Retail Outlets of IOCL is an original work of student and is being submitted to complete his summer internship during the month of July August 2011. This report has not been submitted earlier by any one for the fulfilment of the requirement of the course of study. Also no part of this project may be used and reproduce by other, either accidentally or commercially without the written consent of author and his mentor.

Signature of Student

Signature of Mentor

Place: Ahmedabad Date:

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ACKNOWLEDGEMENT

This is to acknowledge with thanks the help, guidance and support that I have received during the internship. I sincerely express a deep sense of gratitude to the management of Indian Oil Corporation Limited for giving me an opportunity to pursue my internship, and in particular Mr. Alok Srivastava (Sr. Manager Retail Sales) for his guidance and support. I must also thank Mr. Kamlesh Gandhi (Asst. Manager Retail Sales) and Mr. Deepak Kumar Sinha (Asst. Manager Retail Sales) for their valuable support and inputs provided by them. In the end but not the least I would like to thank the retail outlet dealers and each person individually who has devoted their valuable time in the completion of my survey data sheet.

Thank You to all.

Devansh Ridhvaj Bhatia

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DECLARATION

I hereby declare that this report is the work of my research done on the topic A STUDY OF BRAND EFFECTIVENESS OF XTRACARE RETAIL OUTLETS OF IOCL. This report herein pertains to the study carried out by me along with the support of my mentor Mr. Alok Srivastava and co-mentors Mr. Kamlesh Gandhi and Mr. Deepak Kumar Sinha. I have put utmost care and enthusiasm in preparing the same and thus hold that the data reported is true and valid to my knowledge. Thanking You

Devansh Ridhvaj Bhatia

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TABLE OF CONTENTS
Executive Summary..................................................................................................... Introduction.............................................................................................................
XtraCare Retail Outlets

Objective of Study....................................................................................................... Sampling... Research Methodology................................ Collection of Data........................................................................................................ Limitations................................................................................................................... Data Analysis and Graphical Representation...................... 2 - DISTRIBUTION................................................................................................... Findings................................... Conclusions......................................... Bibliography................................ Questionnaire...............................

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INTRODUCTION

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SAMPLING
Random or Probability Sampling Random or Probability Sampling: In a random or probability sample, we know the chances, are that an element of the population will or will not be included in the sample. As a result, we can assess objectively the estimates of the population characteristics that result from our sample; that is, we can describe mathematically how objective our estimates are. There are four types of random sampling: Simple Random Sampling Stratified Random Sampling Simple Random Sampling: Simple random sampling selects samples by methods that allow each possible to have an equal probability of being picked and each item of the entire population to have an equal chance of being include in the sample.

Stratified Random Sampling: In a stratified sample the sampling frame is divided into nonoverlapping groups or strata, e.g. geographical areas, age-groups, genders. A sample is taken from each stratum, and when this sample is a simple random sample it is referred to as stratified random sampling. Advantages: Stratification will always achieve greater precision provided that the strata have been chosen so that members of the same stratum are as similar as possible in respect of the characteristic of interest. The bigger the differences between the strata, the greater the gain in precision. For example, if you were interested in knowing the brand

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effectiveness of XC R.Os you might stratify by age, income whereas if you were interested in smoking you might stratify by gender or social class. It is often administratively convenient to stratify a sample. Interviewers can be

specifically trained to deal with a particular age-group or ethnic group, or employees in a particular industry. The results from each stratum may be of intrinsic interest and can be analysed separately. It ensures better coverage of the population than simple random sampling. Disadvantages: Difficulty in identifying appropriate strata. More complex to organise and analyse results

Graphs and Charts:

Graphs and charts are great because they communicate information visually. For this reason, graphs are often used in newspapers, magazines and businesses around the world. A bar chart is used to graphically summarize and display the differences between groups of data. A bar chart can be constructed by segmenting the range of the data into groups (also called segments, bins or classes). For example, if your data ranges from age to age, you could have a group of data for age below 20, a second group of data from 20 30, a third group of data for 30 - 40, and so on. A pie chart is a circular chart divided into sectors, illustrating relative magnitudes or frequencies or percents. In a pie chart, the arc length of each sector (and consequently its central angle and area), is proportional to the quantity it represents. Together, the sectors create a full disk. It is named for its resemblance to a pie which has been sliced.

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Chi Square Distribution (2):

If the null hypothesis is true, then the sampling distribution of the chi-square statistic, 2, can be closely approximated by continuous curve known as a chi- square distribution. There is a different chi- square distribution for each different number of degrees of freedom. For very small numbers of degrees of freedom, the chi-square distribution is severely skewed to the right. As the number of degrees of freedom increases, the curve rapidly becomes more symmetrical until the number reaches large values, at which point the distribution can be approximated by the normal. The chi- square distribution is a probability distribution. Therefore, the total area under the curve in each chi-square distribution is 1.0. The chi-square test is a statistical test that can be used to determine whether observed frequencies are significantly different from expected frequencies. For example, after we calculated expected frequencies for different income and brand preference of XC R.O.s we would use a chi-square test to compare the observed and expected frequencies and determine whether there is a statistically significant difference between the two. As in other statistical tests, we begin by stating a null hypothesis (H0: there is no significant difference between observed and expected frequencies) and an alternative hypothesis (H1: there is a significant difference). Based on the outcome of the chi-square test we will either reject or fail to reject the null hypothesis. Importance: Chi-square tests enable us to compare observed and expected frequencies objectively, since it is not always possible to tell just by looking at them whether they are "different enough" to be considered statistically significant. Statistical significance in this case implies that the differences are not due to chance alone, but instead may be indicative of other processes at work. To calculate the degrees of freedom in the contingency table Number of degrees of freedom = (no. of rows -1) (no. of columns -1)

2 =

( Oi Ei )2 Ei

Oi = Observed Frequency

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Ei = Expected Frequency OBJECTIVES

To study the brand effectiveness of XtraCare R.Os.

Provide suggestions and recommendations to improve the effectiveness of XtraCare R.Os.

Research Methodology & collection of data

Research can be defined as the systematic design, collection, and analysis and reporting of data and findings relevant to news paper reading habits. This survey was conducted in the context of knowing the effectiveness of XtraCare Retail Outlets. Whole data was collected by face-to-face interviews of customers coming to XtraCare Retail Outlets. The study provides a representative sample of various customers of 12 XtraCare Retail Outlets from old and new Ahmedabad. To carry out the study, it has been identified that two sources of information are required, that is primary and secondary.

Primary data:
Primary data has been collected through questionnaires. The questionnaire was mostly related to the income of the person, preference of company, age of the person, preference of delivery of cylinder, etc.

Secondary data:
The secondary data has been collected from books, and websites

Sample size
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The sample would be selected on random basis. A sample of 300 respondents would be used in the research.

LIMITATIONS
Even through the project has been done with outmost care; it suffers from the following limitations: Geographical Constraint: The survey is limited to only people of Ahmedabad, and by which we cannot take the opinion of people from different regions. As the project is a sampling study it may not picture the preference of all the customers. All the respondents were not familiar with Hindi or English but knew only Guajarati. So it was difficult to interact with them.

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ANALYSIS AND GRAPHCAL REPRESENTATION The analysis in the form of statistical graphs is as follows: TABLE NO. 1: AGE w.r.t. NO. OF PEOPLE (Stratification Using Age) Age < 20 20-30 30-40 40-50 > 50 Total
CHART NO. 1

No. of People 18 100 82 51 49 300

Percentage 6% 34% 27% 17% 16% 100%

INFERENCE: From the above graph it is found that 6% of people are less than 20 years of age, 34% are between 20 30 years of age, 27% are between 30 40 years of age, 17% are betweem 40 50 years of age group and 16% are above 50 years of age.

TABLE NO 2: NO. OF MALES AND FEMALES Gender Male Female Total

CHART NO. 2

No. of People 258 42 300

Percentage 86% 14% 100%

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INFERENCE: From the above graph it is found that 86% customers are male and 14% are females.

TABLE NO 3: MONTHLY INCOME w.r.t. NO. OF PEOPLE Monthly Income Less Than Rs. 10,000 Rs. 10,000 Rs. 20,000 Rs. 20,000 Rs. 30,000 Above Rs. 30,000 TOTAL
CHART NO. 3

No. Of People 123 111 31 35 300

Percentage 41% 37% 10% 12% 100%

INFERENCE: From the above graph it is found that 41% of people earn less than Rs. 10,000/month, 37% earn between Rs. 10,000 - Rs. 20,000/month, 10% earn between Rs. 20,000 Rs. 30,000/month and 12% earn above Rs. 30,000/month.

TABLE NO. 4: BRAND PREFERENCE w.r.t. NO. OF PEOPLE

Brand Preference BPCL HPCL IBP IOCL NO ANSWER 14 | P a g e No. Of People 22 35 3 198 37 Percentage 7% 12% 1% 66% 13%

RELIANCE SHELL TOTAL CHART NO. 4

4 1 300

1% 0% 100%

INFERENCE: From above chart it is found that 7% people visit BPCL R.Os, 12% HPCL, 1% IBP, 66% IOCL, 1% RELIANCE and 13% people doesnt have any brand preference when it comes to R.Os.

TABLE NO. 5: FREQUENCY OF REFUELING w.r.t. NO. OF PEOPLE

Frequency Everyday Alternate Day Once In A Week Twice A Week Once In A Month Twice A Month Whenever Tank Is Empty No. Of People 86 111 69 17 1 9 7 Percentage

TOTAL
CHART NO. 5

300

29% 37% 23% 6% 0% 3% 2% 100%

INFERENCE: From above graph it is shown that 29% people refuel their vehicle on daily basis, 37% alternate days, 23% once in a week, 6% twice a week, 3% twice a month and 2% comes whenever their tank is empty.

TABLE NO. 6: NO. OF PEOPLE w.r.t. THEIR FAMILIERITY WITH XTRACARE R.O.s

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Are You Aware Of XtraCare No. Of People R.O.'s

Percentage

YES NO

124 176

41% 59% 100%

TOTAL

300

CHART NO. 6

INFERENCE: From above chart we can say that 41% customers are aware of XtraCare Retail Outlets and 59% are unaware.

TABLE NO. 7: TYPE OF R.O. w.r.t. NO. OF PEOPLE VISITING

Type Of Retail Outlet No. Of People Percentage

XtraCare R.O.

166

55% 45% 100%

Normal R.O.

134

TOTAL

300

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CHART NO. 7

INFERENCE: From above graph it is clear that 55% people visit XtraCare R.O.s and 45% people visit normal R.O.s.

TABLE NO. 8: NO. OF PEOPLE w.r.t. THE MODE BY WHICH THEY COME TO KNOW ABOUT XTRACARE R.O.S
Mode Advertisement Newspaper Road Shows Co. Meets Friend Told Newspaper Near My Home Personal Experience None No. Of People 18 0 0 0 15 1 107 126 33 Percentage

TOTAL
CHART NO. 8

300

6% 0% 0% 0% 5% 0% 36% 42% 11% 100%

INFERENCE: From above chart it is clear that 6% customers learnt about XtraCare R.O.s through advertisement, 5% customers were informed by their friends, 36% came to know because the pump is near their home, 42% know by their personal experience and 11% customers are didnt respond to this question.

TABLE NO. 9: REASON FOR CHOOSING XTRACARE w.r.t. NO. OF PEOPLE

Reason No. Of People Percentage

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Brand XtraCare For Sake Of Refuelling

159 141

53% 47% 100%

TOTAL
CHART NO. 9:

300

INFERENCE: From above graph it is clear that 53% customer comes to XtraCare R.O. for the brand XtraCare and 47% customer visit XtraCare R.O. just for the sake of refuelling.

TABLE NO. 10: NO. OF PEOPLE w.r.t. THEIR OPINION THAT XTRACARE R.O.s ARE DIFFERENT FROM NORMAL R.O.s
XC R.O's Are Different In No. Of People Appearance From Normal R.O's

Percentage

YES NO

183 117

61% 39% 100%

TOTAL

300

CHART NO. 10:

INFERENCE: 18 | P a g e

From above graph it is clear that 61% customers feel that XtraCare R.O.s are different from normal R.O.s and 39% feel that there is no difference.

TABLE NO. 11: VISUAL APPEARANCE OF XTRACARE R.O. w.r.t. NO. OF PEOPLE
XC R.O.'s Look Different From No. Of People Normal R.O.'s

Percentage

YES NO

86 214

29% 71% 100%

TOTAL

300

CHART NO. 11:

TABLE NO. 12: NO. OF PEOPLE w.r.t. THEIR REASON FOR RE-VISITING XTRACARE R.O.S
Reason Level Of Q&Q Level Of Customer Service Value Added Services No. Of People 144 54 0 Percentage

48% 18% 0%

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Automation Of R.O. All The Above

3 99

1% 33% 100%

TOTAL

300

CHART NO. 12

INFERENCE: From above graph it is clear that 48% customers come to XC R.O.s because of level of Q&Q, 18% due to level of customer service, 1% due to automation and 33% come because of the combined reasons of Q&Q, Customer Service, Value Added Services and Automation.

TABLE NO. 13: NO. OF PEOPLE w.r.t. THEIR BELIEF THAT XTRACARE IS A UNIQUE WAY OF SERVING CUSTOMERS
XC R.O.'s A Unique Way Of No. Of People Serving Customers

Percentage

YES NO

283 17

94% 6% 100%

TOTAL

300

CHART NO. 13:

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INFERENCE: From above chart it is clear that 94% customers feel that XtraCare is a unique way of serving customers and 4% customers disagree to this.

TABLE NO. 14: NO. OF PEOPLE w.r.t. THEIR SATISFACTION AT XTRACARE R.O.s
Are You Satisfied With Service At No. Of People XC R.O.s

Percentage

YES NO

296 4

99% 1% 100%

TOTAL

300

CHART NO. 14:

INFERENCE: From above graph it is clear that 99% customers are satisfied with the services at XtraCare R.O.s and 1% customers are not satisfied.

TABLE NO. 15: OTHER SERVICES PREFERED IN XTRACARE R.O.s w.r.t. NO. OF PEOPLE
Services Fast Food Junction ATM 21 | P a g e No. Of People 46 34 Percentage

15% 11%

Tyre Puncture Repair Car Wash Coffee Shop None

18 0 20 182

6% 0% 7% 61% 100%

TOTAL

300

CHART NO. 15:

INFERENCE: From above graph it is clear that 15% customers prefer fast food junction in XC R.O.s, 11% says ATM should be compulsory, 6% prefer tyre puncture repair, 7% prefer coffee shop and 61% customer dont prefer any other service in XC R.O.s.

2- DISTRIBUTION Example 1: BRAND PREFERENCE and AGE

HO: Brand Preference is independent of Age 22 | P a g e

H1: Brand Preference is dependent of Age

Table No: 1 AGE BRAND PREFERENCE

BPCL HPCL IOCL IBP/RELIANCE/SHELL/NO ANSWER

< 20
4 7 12 0 23

20 30
9 15 55 16 95

30 40
4 7 57 14 82

40 50
1 3 40 7 51

Above TOTAL 50
4 3 34 8 59 22
35 198 45

TOTAL Chart No.1 EXPECTED VALUES: Table No- 1(a)

300

Oij
4 9 4 1 4 7 15 7 3 3 23 | P a g e

Eij
1.686 6.966 6.013 3.74 4.326 2.683 11.083 9.566 5.95 6.883

Oij - Eij
2.314 2.034 -2.013 -2.74 -0.326 4.317 3.917 -2.566 -2.95 -3.883

(Oij - Eij)2
5.354596 4.137156 4.052169 7.5076 0.106276 18.63649 15.34289 6.584356 8.7025 15.07769

(Oij - Eij)2 / 2
2.677298 2.068578 2.026085 3.7538 0.053138 9.318245 7.671445 3.292178 4.35125 7.538845

12 55 57 40 34 0 16 14 7 8 TOTAL

15.18 62.7 54.12 33.66 38.94 3.45 14.25 12.3 7.65 8.85

-3.18 -7.7 2.88 6.34 -4.94 -3.45 1.75 1.7 -0.65 -0.85

10.1124 59.29 8.2944 40.1956 24.4036 11.9025 3.0625 2.89 0.4225 0.7225

5.0562 29.645 4.1472 20.0978 12.2018 5.95125 1.53125 1.445 0.21125 0.36125 123.399

2 =

( Oi Ei )2 Ei

Oi = Observed Frequency Ei = Expected Frequency

2 cal = 123.399 2 tab at 5% level of significance at (4-1)*(5-1) or 12 d.f.= degrees of freedom 2 tab= 21.03

So,

2 cal > 2 tab

= 123.339 > 21.03 So, Reject Ho at 5% Level of Significance and at 12 degrees of freedom.

Therefore, Brand Preference is dependent of Age.

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Example 2: BRAND PREFERENCE and MONTHLY INCOME

HO: Brand Preference is independent of Monthly Income H1: Brand Preference is dependent of Monthly Income

Table No: 2

MONTHLY INCOME BRAND PREFERENCE

BPCL
LESS THAN RS. 10,000 RS. 10,000 RS. 20,000 RS. 20,000 RS. 30,000 ABOVE RS. 30,000 TOTAL

22

HPCL

19

11

35

IOCL IBP/RELIANCE/SHELL/NO ANSWER

74

76

20

28

198

21

15

45

TOTAL

123

111

31

35

300

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Chart No.2

EXPECTED VALUES: Table No- 2(a)

Oij
9 9 2 2 19 11 4 1 74 76 20 28 21 15 5 4 TOTAL

Eij
9.02 8.14 2.273 2.566 14.35 12.95 3.616 4.083 81.18 73.26 20.46 23.1 18.45 16.65 4.65 5.25

Oij - Eij
-0.02 0.86 -0.273 -0.566 4.65 -1.95 0.384 -3.083 -7.18 2.74 -0.46 4.9 2.55 -1.65 0.35 -1.25

(Oij - Eij)2
0.0004 0.7396 0.074529 0.320356 21.6225 3.8025 0.147456 9.504889 51.5524 7.5076 0.2116 24.01 6.5025 2.7225 0.1225 1.5625

(Oij - Eij)2 / 2
0.0002 0.3698 0.037265 0.160178 10.81125 1.90125 0.073728 4.752445 25.7762 3.7538 0.1058 12.005 3.25125 1.36125 0.06125 0.78125 65.20192

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2 =

( Oi Ei )2 Ei

Oi = Observed Frequency Ei = Expected Frequency

2 cal = 65.20192 2 tab at 5% level of significance at (4-1)*(4-1) or 9 d.f.= degrees of freedom 2 tab= 16.92

So,

2 cal > 2 tab

= 65.20192 > 16.92 So, Reject Ho at 5% Level of Significance and at 9 degrees of freedom.

Therefore, Brand Preference is dependent of Monthly Income.

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Example 3: AWARENESS ABOUT XC R.O.s and AGE

HO: Awareness Level is independent of Age H1: Awareness Level is dependent of Age

Table No: 3 AGE AWARENESS ABOUT XC R.O.s

YES NO < 20 9 9 18 20 30 35 65 100 30 40 41 41 82 40 50 24 27 51 Above 50 15 34 49 TOTAL 124
176

TOTAL Chart No.3

300

EXPECTED VALUES: Table No- 3(a)

Oij
9 35 41 24 15 28 | P a g e

Eij
7.44 41.333 33.893 21.08 20.253

Oij - Eij
1.56 -6.333 7.107 2.92 -5.253

(Oij - Eij)2
2.4336 40.10689 50.50945 8.5264 27.59401

(Oij - Eij)2 / 2
1.2168 20.05344 25.25472 4.2632 13.797

9 65 41 27 34 TOTAL

10.56 58.666 48.106 29.92 28.746

-1.56 6.334 -7.106 -2.92 5.254

2.4336 40.11956 50.49524 8.5264 27.60452

1.2168 20.05978 25.24762 4.2632 13.80226 129.1748

2 =

( Oi Ei )2 Ei

Oi = Observed Frequency Ei = Expected Frequency

2 cal = 129.1748 2 tab at 5% level of significance at (2-1)*(5-1) or 4 d.f.= degrees of freedom 2 tab= 9.49

So,

2 cal > 2 tab

= 129.1748 > 9.49 So, Reject Ho at 5% Level of Significance and at 4 degrees of freedom.

Therefore, Awareness of XC R.O.s is dependent of Age. Example 4: AWARENESS ABOUT XC R.O.s and MONTHLY INCOME
HO: Awareness Level is independent of Monthly Income H1: Awareness Level is dependent of Monthly Income

Table No: 4 MONTHLY INCOME

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AWARENESS XC R.O.s
YES NO

ABOUT

LESS THAN RS. 10,000

RS. 10,000 RS. 20,000

RS. 20,000 RS. 30,000

ABOVE RS. 30,000

TOTAL

48 75 123

41 70 111

17 14 31

18 17 35

124 176 300

TOTAL

Chart No.4

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EXPECTED VALUES: Table No- 4(a)

Oij
48 41 17 18 75 70 14 17 TOTAL

Eij
50.84 45.88 12.813 14.466 72.16 65.12 18.186 20.533

Oij - Eij
-2.84 -4.88 4.187 3.534 2.84 4.88 -4.186 -3.533

(Oij - Eij)2
8.0656 23.8144 17.53097 12.48916 8.0656 23.8144 17.5226 12.48209

(Oij - Eij)2 / 2
4.0328 11.9072 8.765485 6.244578 4.0328 11.9072 8.761298 6.241045 61.89241

2 =

( Oi Ei )2 Ei

Oi = Observed Frequency Ei = Expected Frequency

2 cal = 61.89241 2 tab at 5% level of significance at (2-1)*(4-1) or 3 d.f.= degrees of freedom 2 tab= 7.82

So,

2 cal > 2 tab

= 61.89241 > 7.82 So, Reject Ho at 5% Level of Significance and at 3 degrees of freedom.

Therefore, Awareness of XC R.O.s is dependent of Monthly Income.

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Example 5: REFUELLING PLACE and AGE

HO: Refuelling Place is independent of Age H1: Refuelling Place is dependent of Age

Table No: 5 AGE REFUELLING PLACE

XTRACARE R.O. NORMAL R.O. < 20 10 8 18 20 30 49 51 100 30 40 49 33 82 40 50 25 26 51 Above 50 33 16 49 TOTAL 166
134

TOTAL Chart No.5

300

EXPECTED VALUES: Table No- 5(a)

Oij
10 49 49 25 33 | P a g e

Eij
9.96 55.333 45.373 28.22

Oij - Eij
0.04 -6.333 3.627 -3.22

(Oij - Eij)2
0.0016 40.10689 13.15513 10.3684

(Oij - Eij)2 / 2
0.0008 20.05344 6.577565 5.1842

33 8 51 33 26 16 TOTAL

27.113 8.04 44.666 36.626 22.78 21.886

5.887 -0.04 6.334 -3.626 3.22 -5.886

34.65677 0.0016 40.11956 13.14788 10.3684 34.645

17.32838 0.0008 20.05978 6.573938 5.1842 17.3225 98.2856

2 =

( Oi Ei )2 Ei

Oi = Observed Frequency Ei = Expected Frequency

2 cal = 98.2856 2 tab at 5% level of significance at (2-1)*(5-1) or 4 d.f.= degrees of freedom 2 tab= 9.49

So,

2 cal > 2 tab

= 98.2856 > 9.49 So, Reject Ho at 5% Level of Significance and at 4 degrees of freedom.

Therefore, Refuelling Place is dependent of Age. Example 6: REFUELLING PLACE and MONTHLY INCOME
HO: Refuelling Place is independent of Monthly Income H1: Refuelling Place is dependent of Monthly Income

Table No: 6 MONTHLY INCOME

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REFUELLING PLACE
XTRACARE R.O. NORMAL R.O.

LESS THAN RS. 10,000

RS. 10,000 RS. 20,000

RS. 20,000 RS. 30,000

ABOVE RS. 30,000

TOTAL

66 57 123

63 48 111

16 15 31

21 14 35

166 134 300

TOTAL Chart No.6

EXPECTED VALUES: Table No- 6(a)

Oij
66 63 16 21 57 48 15 14 TOTAL

Eij
68.06 61.42 17.153 19.366 54.94 49.58 13.846 15.633

Oij - Eij
-2.06 1.58 -1.153 1.634 2.06 -1.58 1.154 -1.633

(Oij - Eij)2
4.2436 2.4964 1.329409 2.669956 4.2436 2.4964 1.331716 2.666689

(Oij - Eij)2 / 2
2.1218 1.2482 0.664704 1.334978 2.1218 1.2482 0.665858 1.333345 10.73889

2 =
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( Oi Ei )2

Ei Oi = Observed Frequency Ei = Expected Frequency

2 cal = 10.73889 2 tab at 5% level of significance at (2-1)*(4-1) or 3 d.f.= degrees of freedom 2 tab= 7.82

So,

2 cal > 2 tab

= 10.73889 > 7.82 So, Reject Ho at 5% Level of Significance and at 3 degrees of freedom.

Therefore, Refuelling Place is dependent of Monthly Income.

Example 7: REASON FOR CHOOSING XC R.O.s and AGE

HO: Reason for choosing XC R.O.s is independent of Age H1: Reason for choosing XC R.O.s is dependent of Age

Table No: 7 AGE REASON CHOOSING R.O.s

FOR SAKE REFUELLING

FOR XC < 20
11 7 18

20 30 47 53 100

30 40 44 38 82

40 50 29 22 51

Above 50 28 21 49

TOTAL 151
141

BRAND XTRACARE OF

TOTAL

300

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Chart No.7

EXPECTED VALUES: Table No- 7(a)

Oij
11 47 44 29 28 7 53 38 22 21 TOTAL

Eij
3.523 50.333 41.273 25.67 24.663 8.46 47 38.54 23.97 23.03

Oij - Eij
7.477 -3.333 2.727 3.33 3.337 -1.46 6 -0.54 -1.97 -2.03

(Oij - Eij)2
55.90553 11.10889 7.436529 11.0889 11.13557 2.1316 36 0.2916 3.8809 4.1209

(Oij - Eij)2 / 2
27.95276 5.554444 3.718264 5.54445 5.567785 1.0658 18 0.1458 1.94045 2.06045 71.5502

2 =

( Oi Ei )2 Ei

Oi = Observed Frequency Ei = Expected Frequency

2 cal = 71.5502 2 tab at 5% level of significance at (2-1)*(5-1) or 4 d.f.= degrees of freedom 2 tab= 9.49

So,
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2 cal > 2 tab

= 71.5502 > 9.49 So, Reject Ho at 5% Level of Significance and at 4 degrees of freedom.

Therefore, Reason for choosing XC R.O.s is dependent of Age. Example 8: REASON FOR CHOOSING XC R.O.s and MONTHLY INCOME
HO: Reason for choosing XC R.O.s is independent of Monthly Income H1: Reason for choosing XC R.O.s is dependent of Monthly Income

Table No: 8 MONTHLY INCOME REASON FOR CHOOSING XC R.O.s

BRAND XTRACARE FOR SAKE REFUELLING OF
LESS THAN RS. 10,000 RS. 10,000 RS. 20,000 RS. 20,000 RS. 30,000 ABOVE RS. 30,000 TOTAL

63 60 123

64 47 111

17 14 31

15 20 35

159 141 300

TOTAL Chart No.8

EXPECTED VALUES: Table No- 8(a)

Oij
63 64 17 15 38 | P a g e

Eij
65.19 58.83 16.43 18.55

Oij - Eij
-2.19 5.17 0.57 -3.55

(Oij - Eij)2
4.7961 26.7289 0.3249 12.6025

(Oij - Eij)2 / 2
2.39805 13.36445 0.16245 6.30125

60 47 14 20 TOTAL

57.81 52.17 14.57 16.45

2.19 -5.17 -0.57 3.55

4.7961 26.7289 0.3249 12.6025

2.39805 13.36445 0.16245 6.30125 44.4524

2 =

( Oi Ei )2 Ei

Oi = Observed Frequency Ei = Expected Frequency

2 cal = 44.4524 2 tab at 5% level of significance at (2-1)*(4-1) or 3 d.f.= degrees of freedom 2 tab= 7.82

So,

2 cal > 2 tab

= 44.4524 > 7.82 So, Reject Ho at 5% Level of Significance and at 3 degrees of freedom.

Therefore, Reason for choosing XC R.O.s is dependent of Monthly Income.

Example 9: REASON FOR RE-VISITING XC R.O.s and AGE

HO: Reason for re-visiting XC R.O.s is independent of Age H1: Reason for re-visiting XC R.O.s is dependent of Age

Table No: 9 AGE REASON FOR REVISITING XC < 20 R.O.s

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20 30

30 40

40 50

Above 50

TOTAL

LEVEL OF Q&Q

12

56 21 2 21 100

32 10 1 39 82

21 8 0 22 51

23 12 0 14 49

144
54 3 99

LEVEL OF CUSTOMER 3 SERVICE AUTOMATION OF XC 0 R.O. ALL THE ABOVE

3 18

TOTAL Chart No.9

300

EXPECTED VALUES: Table No- 9(a)

Oij
12 56 32 21 23 3 21 10 8 12 0 2 1 0 0 40 | P a g e

Eij
8.64 48 39.36 24.48 23.53 3.24 18 14.76 9.18 8.82 0.18 1 0.82 0.51 0.49

Oij - Eij
3.36 8 -7.36 -3.48 -0.53 -0.24 3 -4.76 -1.18 3.18 -0.18 1 0.18 -0.51 -0.49

(Oij - Eij)2
11.2896 64 54.1696 12.1104 0.2809 0.0576 9 22.6576 1.3924 10.1124 0.0324 1 0.0324 0.2601 0.2401

(Oij - Eij)2 / 2
5.6448 32 27.0848 6.0552 0.14045 0.0288 4.5 11.3288 0.6962 5.0562 0.0162 0.5 0.0162 0.13005 0.12005

3 21 39 22 14 TOTAL

5.94 33 27.06 16.83 16.17

-2.94 -12 11.94 5.17 -2.17

8.6436 144 142.5636 26.7289 4.7089

4.3218 72 71.2818 13.36445 2.35445 256.64

2 =

( Oi Ei )2 Ei

Oi = Observed Frequency Ei = Expected Frequency

2 cal = 256.64 2 tab at 5% level of significance at (4-1)*(5-1) or 12 d.f.= degrees of freedom 2 tab= 21.03

So,

2 cal > 2 tab

= 256.64 > 21.03 So, Reject Ho at 5% Level of Significance and at 12 degrees of freedom.

Therefore, Reason for Re-visiting XC R.O.s is dependent of Age.

Example 10: REASON FOR RE-VISITING XC R.O.s and MONTHLY INCOME

HO: Reason for re-visiting XC R.O.s is independent of Monthly Income H1: Reason for re-visiting XC R.O.s is dependent of Monthly Income

Table No: 10
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MONTHLY INCOME REASON FOR REVISITING XC R.O.s

LEVEL OF Q&Q
LESS THAN RS. 10,000 RS. 10,000 RS. 20,000 RS. 20,000 RS. 30,000 ABOVE RS. 30,000 TOTAL

68
CUSTOMER

49

14

13

144

LEVEL OF SERVICE

22

17

54

AUTOMATION OF XC R.O.

ALL THE ABOVE

31

44

10

14

99

TOTAL

123

111

31

35

300

Chart No.10

EXPECTED VALUES: Table No- 10(a)

Oij
68 49 14 42 | P a g e

Eij
59.04 53.28 14.88

Oij - Eij
8.96 -4.28 -0.88

(Oij - Eij)2
80.2816 18.3184 0.7744

(Oij - Eij)2 / 2
40.1408 9.1592 0.3872

13 22 17 7 8 2 1 0 0 31 44 10 14 TOTAL

16.8 22.14 19.98 5.58 6.3 1.23 1.11 0.31 0.35 40.59 12.21 10.23 11.55

-3.8 -0.14 -2.98 1.42 1.7 0.77 -0.11 -0.31 -0.35 -9.59 31.79 -0.23 2.45

14.44 0.0196 8.8804 2.0164 2.89 0.5929 0.0121 0.0961 0.1225 91.9681 1010.604 0.0529 6.0025

7.22 0.0098 4.4402 1.0082 1.445 0.29645 0.00605 0.04805 0.06125 45.98405 505.3021 0.02645 3.00125 618.5361

2 =

( Oi Ei )2 Ei

Oi = Observed Frequency Ei = Expected Frequency

2 cal = 618.5361 2 tab at 5% level of significance at (4-1)*(4-1) or 9 d.f.= degrees of freedom 43 | P a g e

2 tab= 16.92

So,

2 cal > 2 tab

= 618.5361 > 16.92 So, Reject Ho at 5% Level of Significance and at 9 degrees of freedom.

Therefore, Reason for Re-visiting XC R.O.s is dependent of Monthly Income. Example 11: SATISFACTION AT XC R.O.s and AGE
HO: Satisfaction at XC R.O.s is independent of Age H1: Satisfaction at XC R.O.s is dependent of Age

Table No: 11 AGE SATISFACTION AT XC R.O.

YES NO < 20 18 0 18 20 30 100 0 100 30 40 81 1 82 40 50 49 2 51 Above 50 48 1 49 TOTAL 296
4

TOTAL

300

Chart No.11

EXPECTED VALUES: Table No- 11(a)

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Oij
18 100 81 49 48 0 0 1 2 1 TOTAL

Eij
17.76 98.666 80.906 50.32 48.346 0.24 1.333 1.093 0.68 0.653

Oij - Eij
0.24 1.334 0.094 -1.32 -0.346 -0.24 -1.333 -0.093 1.32 0.347

(Oij - Eij)2
0.0576 1.779556 0.008836 1.7424 0.119716 0.0576 1.776889 0.008649 1.7424 0.120409

(Oij - Eij)2 / 2
0.0288 0.889778 0.004418 0.8712 0.059858 0.0288 0.888445 0.004325 0.8712 0.060205 3.707029

2 =

( Oi Ei )2 Ei

Oi = Observed Frequency Ei = Expected Frequency

2 cal = 3.707029 2 tab at 5% level of significance at (2-1)*(5-1) or 4 d.f.= degrees of freedom 2 tab= 9.49

So,

2 cal < 2 tab

= 3.707029 < 9.49 So, Accept Ho at 5% Level of Significance and at 4 degrees of freedom

Therefore, Satisfaction at XC R.O.s is independent of Age.

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Example 12: SATISFACTION AT XC R.O.s and MONTHLY INCOME

HO: Satisfaction at XC R.O.s is independent of Monthly Income H1: Satisfaction at XC R.O.s is dependent of Monthly Income

Table No: 12 MONTHLY INCOME SATISFACTION AT XC R.O.

YES NO
LESS THAN RS. 10,000 RS. 10,000 RS. 20,000 RS. 20,000 RS. 30,000 ABOVE RS. 30,000 TOTAL

121 2 123

111 0 111

30 1 31

34 1 35

296 4 300

TOTAL Chart No.12 EXPECTED VALUES: Table No- 12(a)

Oij
121 111 30 34 2 0 1 46 | P a g e

Eij
121.36 109.52 30.586 34.533 1.64 1.48 0.413

Oij - Eij
-0.36 1.48 -0.586 -0.533 0.36 -1.48 0.587

(Oij - Eij)2
0.1296 2.1904 0.343396 0.284089 0.1296 2.1904 0.344569

(Oij - Eij)2 / 2
0.0648 1.0952 0.171698 0.142045 0.0648 1.0952 0.172285

1 TOTAL

0.466

0.534

0.285156

0.142578 2.948606

2 =

( Oi Ei )2 Ei

Oi = Observed Frequency Ei = Expected Frequency

2 cal = 2.948606 2 tab at 5% level of significance at (2-1)*(4-1) or 3 d.f.= degrees of freedom 2 tab= 7.82

So,

2 cal < 2 tab

= 2.948606 < 7.82 So, Accept Ho at 5% Level of Significance and at 3 degrees of freedom

Therefore, Satisfaction at XC R.O.s is independent of Monthly Income.

FINDINGS
It is found that 6% of people are less than 20 years of age, 34% are between 20 30 years of

age, 27% are between 30 40 years of age, 17% are betweem 40 50 years of age group and 16% are above 50 years of age. It is found that 86% customers are male and 14% are females. It is found that 41% of people earn less than Rs. 10,000/month, 37% earn between Rs. 10,000 Rs. 20,000/month, 10% earn between Rs. 20,000 Rs. 30,000/month and 12% earn Above Rs. 30,000/month. It is found that 7% people visit BPCL R.Os, 12% HPCL, 1% IBP, 66% IOCL, 1% RELIANCE and 13% people doesnt have any brand preference when it comes to R.Os. It is seen that 29% people refuel their vehicle on daily basis, 37% alternate days, 23% once in a week, 6% twice a week, 3% twice a month and 2% comes whenever their tank is empty. It is seen 41% customers are aware of XtraCare Retail Outlets and 59% are unaware.

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 It is seen that 55% people visit XtraCare R.O.s and 45% people visit normal R.O.s. It is seen that 6% customers learnt about XtraCare R.O.s through advertisement, 5% customers

were informed by their friends, 36% came to know because the pump is near their home, 42% know by their personal experience and 11% customers are didnt respond to this question. It is seen that 53% customer comes to XtraCare R.O. for the brand XtraCare and 47% customer visit XtraCare R.O. just for the sake of refuelling. It is seen that 61% customers feel that XtraCare R.O.s are different from normal R.O.s and 39% feel that there is no difference. It is seen that 48% customers come to XC R.O.s because of level of Q&Q, 18% due to level of customer service, 1% due to automation and 33% come because of the combined reasons of Q&Q, Customer Service, Value Added Services and Automation. It is seen that 94% customers feel that XtraCare is a unique way of serving customers and 4% customers disagree to this. It is seen that 99% customers are satisfied with the services at XtraCare R.O.s and 1% customers are not satisfied. It is seen that 15% customers prefer fast food junction in XC R.O.s, 11% says ATM should be compulsory, 6% prefer tyre puncture repair, 7% prefer coffee shop and 61% customer dont prefer any other service in XC R.O.s.

By Chi Square Testing It Is Found That: Brand Preference is dependent of Age. Brand Preference is dependent of Monthly Income. Awareness of XC R.O.s is dependent of Age. Awareness of XC R.O.s is dependent of Monthly Income. Re-fuelling Place is dependent of Age. Re-fuelling Place is dependent of Monthly Income. Reason for choosing XC R.O.s is dependent of Age. Reason for choosing XC R.O.s is dependent of Monthly Income. Reason for Re-visiting XC R.O.s is dependent of Age. Reason for Re-visiting XC R.O.s is dependent of Monthly Income. Satisfaction at XC R.O.s is independent of Age. Satisfaction at XC R.O.s is independent of Monthly Income.
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49 | P a g e

SUGGESTIONS AND RECOMMENDATIONS

SUGGESTIONS FOR BRAND NAME XTRA: 1) Customers do not consider Xtra as a BRAND NAME for IOCL products but in fact misinterpret XtraCare as Xtra Premium Petrol and Xtra Mile Diesel. Xtra loses its importance when not marketed properly. 2) For Retail Outlets XtraCare makes sense but the company should consider rebranding the premium products like BPCL uses Speed for MS and HPCL uses Power. Premium fuels should have a punch name. 3) If Xtra is used for R.O.s then it should not be used in other premium products. Company should do separate color coding for all its premium products and brands. 4) XtraCare R.O.s should have unique color schemes. This will avoid confusion. SUGGESTIONS FOR AUTOMATION: 1) Dealers cannot rely fully on automation system as it is not full proof when daily money is at stake. Automation does not give a visible benefit to the customers as the customer cannot differentiate between an automated and a non-automated R.O. Maintenance issues take long time before taken into consideration. 2) Billing Printers should be of better quality and timely maintenance of machines should be done. 3) The company should upgrade XC R.O.s to Visual & Graphical Automation. The D.U. display system should be made digital and Talk to me technology or laser imaging should be used to display the meter on the windshield of customers vehicle. This will reduce the chances of cheating. 4) Contractors are not giving proper service and the company should appoint new contractors with better know how about the maintenance of machines. 5) Connection Errors are frequent and causes problems. 6) Dealers are not fully aware of automation system. Proper training should be given to the dealers and other employees of R.O. 7) Automation doesnt work with XtraPower fleet cards. 8) An R.O. should be commissioned as XtraCare only if it is fully automated. SUGGESTIONS FOR EDUCATING CUSTOMERS ABOUT XTRACARE R.O.s: 1) Company should promote the brand XtraCare through mass media. People do not feel the importance of knowing a brand which is not promoted by the company as a whole. 2) Regular campaigns should be done to promote XtraCare and the campaigns should involve the dealer, company officials and customers. 3) Verbal Advertisement by Pump Attendants should be done. 50 | P a g e

4) Retail Outlet dealers should give ads in local TV channels aiming to inform customers about their XtraCare R.O.s RECOMMENDATIONS FOR XTRACARE RETAIL OUTLETS: 1) XtraCare R.O.s should be made separate entity for the common man to identify the difference. 2) Brand XtraCare should be promoted in all media with follow up promotion by the dealers. 3) Campaigns promoting Knowledge on XtraCare should be organized at R.O.s involving Dealers, Company Officials and Customers. 4) IOCL should have a distinct policy for XC R.Os. Company should implement spot advertising in XC pumps to generate non fuel revenue. Place selling should be done by inviting various FMCG and other cos to put there ads in XC R.Os. This will help company to take actions against BPCL & HPCL who has started doing this. This will also help the co. to provide reward to the customers using premium fuel. 5) There should be special membership cards for XtraCare customers. Also the company should do tie ups with Local Restaurants like Pizza Hut, McDonalds, etc. cinema halls like PVR etc. and other places which are frequently visited by customers to claim their REWARD. 6) Company should start outsourcing HR services to hire skilled labor for XC Retail Outlets. This can be done by NGOs or any other agency. This would help the company to employ quality labor and will improve customer service. 7) Women employees should be promoted in XC R.O.s. 8) Infomercials should be given in TV and Print Media educating customers about XtraCare R.O.s. 9) Different appearance of XtraCare retail outlets and the dress of XC R.O.s employees should be different from normal IOCL R.O.s. 10) Regular maintenance of XC pumps should be done and Lighting and Hoardings should be changed immediately if there is a problem. 11) XC R.O.s should have good infrastructure. Modern dispensing units should be installed in XC pumps. 12) There should be separate contractors to look after the XC R.O.s. They should have a proactive approach of serving XC R.O.s.

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