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Petro Retailing Business-2-July-Dec-14

Petro Retailing Business-2-July-Dec-14

Section A (20 Marks)

Write short notes on any four of the following

1.      Marketing of Transportation Fuels in India

2.      XtraCare of Indian Oil

3.      Kisan Seva Kendra (KSK)

4.      Players in the physical market of crude oil

5.      OPEC’s Oil Policy

Section B (30 marks)


1.      Discuss about the customer loyalty programmes by HPCL.

2.      Highlight the Training Programme for Pump Attendants of XtraCare Retail Outlets.

3.      What do you understand by Tradable Crude and Non-tradable Crude?

4.      Describe the sales and marketing of petroleum products and crude oil in India.



Section C (50 marks)


(Attempt all questions. Every question carries 10 marks)


Read the case “Petrol/Diesel Stations.” and answer the following questions:


Case Study: Indian Oil Petrol/Diesel Stations


IndianOil was the pioneer in launching state-of-the-art petrol stations with digital dispensers, modern canopies, standardized signage and efficient lighting systems way back in the mid-1990s. The new retail-branding template introduced by IndianOil set in motion a revolution in the petroleum retail business in the country. IndianOil pioneered differentiated offerings to meet the diverse needs of its customers, be it through large format Swagat outlets for the highway traffic, Kisan Seva Kendras for the rural consumer, or even the XTRAcare outlets for the discerning urban customer.


IndianOil's XtraCare branded full-service petrol stations are a result of a series of processes in retail design, product and service upgradation, capability training, automation, loyalty programmes, retail site management techniques – all benchmarked to global standards. Today XtraCare petrol stations are synonymous with world-class petroleum retailing.

Complete vehicle care begins at an IndianOil XtraCare petrol pump. From branded auto fuels, to speedy windshield wipes to quick oil checks and snappy air service, you will experience the superior services that will leave your vehicle feeling special.

IndianOil's XtraCare pump is a revolutionary initiative in petroleum retailing that combines the best bouquet of quality, quantity and warm service, with a guarantee to make your every visit a truly rejuvenating experience. It is benchmarked to international standards of quality & quantity, housekeeping, maintenance and customer service certified by the globally renowned agency - M/s Bureau Veritas (BV), amongst others.

The maintenance of the equipment at XtraCare outlets is undertaken by original equipment manufacturers under a unique 'equipment quality outsourcing' system.

While the industry standard is to take samples on a quarterly basis, IndianOil has moved several steps ahead by introducing fortnightly random sampling with specific importance given to RON (Research Octane Number) sampling, which is truly the definitive test for quality and quantity. The surveillance audits by BV are being done on a more comprehensive basis. The scale and spread of XtraCare pumps is also an industry record.

With automated facilities, trained attendants and forecourt managers attuned to the needs of your car, XtraCare pumps offer the full range of branded fuels – XTRA PREMIUM Petrol and XTRAMILE Diesel as well as world-class SERVO lubricants and a comprehensive loyalty programme.

The non-fuel activities received a major fillip at the IndianOil XtraCare outlets and a wide range of loyalty programmes like XTRAREWARDS, XTRAPOWER and co-branded cards give customers added benefits (available at present at select petrol pumps). The cutting-edge technology introduced at XtraCare pumps includes automatic tank-level gauges, temperature sensors, density measurement sensors, back-office server with dispensing unit controls, customer database, etc.

Another vital differentiator in the XtraCare outlet is the importance given to the frontline customer attendants. They are trained at three levels of competencies--customer service, personal hygiene/grooming and customer complaint redressal. XtraCare dealers also undergo extensive training on 'retail site business management', a unique training module incorporating the best global practices in retail sales management.

Kisan Seva Kendra

Kisan Seva Kendra is an award-winning retail outlet model pioneered by IndianOil to cater to the needs of customers in the rural segment. Today, KSK outlets have emerged as dominant players in the rural markets, riding on the rapid growth of upcoming second and third tier roads in the rural areas. The KSK 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 KSK to sell pesticides, vegetables, banking products and stationery items. IndianOil has tied up with Indo-Gulf for fertilisers, 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. Some KSK have installed internet kiosks, communication facilities, etc. Business alliances have been signed to market products from Dabur, Airtel, Tata Chemicals, Godavari Fertilisers, Gokulam Fertilisers, 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 Supplyco for convenience stores. 


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.




1.      Write a brief summary about Indian Oil.

2.      How are the retail service and the retail site being managed by IOC?

3.      IndianOil's XtraCare pump is a revolutionary initiative in petroleum retailing. Comment.

4.      What is the differentiator at the ExtraCare outlets?

5. What led to the emergence of Kisan Seva Kendra and Swagat?

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