1.1 INTRODUCTION

An organization is a group of people working together for achieving a common objective

which is already defined. To run organizations properly without much problems and wastage of

resources a structure and hierarchy is to be properly defined in an organization. Organizational

structure is the way in which the different groups of people, working in the organization are

constructed.

The objective of creating these groups is to ensure proper coordination, less wastage of

resources and quick achievement of objectives. It is always important to keep things in order in

an organization. An organization must have proper areas of interest too. Organizations must be

specific in some regards. For instance, non-government organization is an organization which is

comprised of non government sector people. Government is not accountable for it. They work

for the benefit of people. All people know that they are working without aid of government

sector. There can be many reasons for giving rise to organizations. Specificity is the very reason

in all regards. They can be social, economic and so on.

If there is an organization, then there must be some people who work as a whole for a

common purpose, so there must be a defined purpose. If an organization does not have any

purpose, it will not survive in the long run. To achieve the purposes by using people, the

processes are needed. Without any process, an organization cannot achieve any type of purpose

or goal. If we see in our daily life, one has some goals. For achieving these goals, some processes

are used. So that process is also obvious and important for an organization. An organization is

needed to determine what each person will do and how much authority each will have.

Organization helps in the efficient use of factors of production and thus reduces cost of

production of goods.

This helps to attain the goals and objectives of the business at the minimum cost. A good

organization provides for the optimum use of technological improvement to create goodwill. All

the marketing functions of goods such as buying, selling, transportation, storage, financing, risk

taking product standardization and grading, etc are solved by the organization by fixing of

responsibilities to everyone.

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The importance of organization is:

• It brings together all the resources in order to achieve desired goals and outcomes.

• It helps in producing goods and services efficiently.

• Facilitates innovation.

• Use modern manufacturing and computer based technology.

• It helps to adapt and to influence a changing environment.

• Creates value for owners, customers and employees.

The last important thing for any organization is that it requires main pillars of management i.e.

POSLC:

1. Planning

2. Organizing

3. Staffing

4. Leading

5. Controlling

Thus we can say that organization is the process of identifying and grouping work to be

performed, defined and delegating responsibility and authority and establishing relationships for

the purpose of enabling people to work most efficiently in accomplishing objectives.

Organization is the instrument with which the goals are achieved. The work of each and every

person is defined and the authority and responsibility is fixed for accomplishing the same.

Another definition for organization give by Koontz and O’Donnell is “the establishment of

authority relationships with provisions for co-ordination between them, both vertically and

horizontally in the enterprise structure”. They view organization as a co-ordinate point among

various persons in the business.

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1.2 ORGANIZATION STRUCTURE

There are different types of organization structures that companies follow depending on a variety

of things; it can be based on geographical regions, products or hierarchy. Organization structure

reveals vertical operational responsibilities, and horizontal linkages, and may be represented by

an organization chart. Thus we can say that an organizational structure is a plan that shows the

organization of work and the systematic arrangement of work. As there are different types of

organizational structures a company should choose the one that best suits their needs.

Organizational structure can be mainly classified into three types. They are

1) Traditional Structures

2) Divisional Structures

3) Matrix Structure

1) TRADITIONAL STRUCTURES

These are the structures that are based on functional division and departments. These are the

kind of structures that follow the organization’s rules and procedures. They are characterized by

having precise authority lines for all levels in the management. Under these structures there are:

Line Structure – This is the kind of structure that has a very specific line of command. It is called

as the line structure because the approvals and orders in this structure come from top to bottom.

This structure is suitable for small organizations. This sort of structure allows easy decision

making and is also very informal in nature. They have fewer departments which makes the

organization a decentralized one.

Line and Staff Structure – This type of structure is suitable for most of the organizations but it’s

not effective for larger companies. Line and structure combines the line structure where

information and approvals come from top to bottom, with staff departments for support and

specialization. Line and staff organizational structures are more centralized. Managers of line

and staff have authority over their subordinates, but staff managers have no authority over line

managers and their subordinates. The decision making process becomes slower in this type of

organizational structure because of the layers and guidelines that are typical to it.

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Functional Structure - This kind of organizational structure classifies people according to the

function performed by them in the organization. The organization chart for a functional based

organization consists of Vice President, Sales department, Customer Service department,

Engineering or Production department, Accounts department and Administrative department.

2) DIVISIONAL STRUCTURES

This is the kind of structure that is based on the different divisions in the organization.

These structures can be further divided into:

a) Product structure – A product structure is based on organizing employees and work on

the basis of the different types of products. If the company produces three different types

of products, they will have three different divisions for these products.

b) Market Structure – Market structure is used to group employees on the basis of specific

market the company sells in. A company could have 3 different markets they use and

according to this structure, each would be a separate division in the structure.

c) Geographic structure – Large organizations have offices at different place, for example

there could be a north zone, south zone, west and east zone. The organizational structure

would then follow a zonal region structure.

3) MATRIX STRUCTURE

This is a structure, which is a combination of both functional and divisional structures..

This structure is the most complex organizational structure. This type of structure tries to get the

benefits of functional structure and also of divisional structure; however, this structure is not

easy to implement because of the dual authority. This structure is very useful for multinational

companies. It is important to keep in mind that each managerial decision has its pros and cons.

It is very important to select the structure that best serves your purpose. Decision should be

taken considering the following aspects like, what is the strategy? How many products does the

organization have? What type of technology is being used? How big is the

company/organization? Management would take necessary actions to decrease the

disadvantages of the chosen structure and to enhance it’s the positive effects. Whatever structure

a company has, the results are the most important.4

1.2 THEORETICAL BACKGROUND

Due to increasing competition the need to pay more attention towards the customers has

gained much importance. The need to satisfy the customers demand is rated pretty high these

days. So what is customer satisfaction? Customer satisfaction is basically a measure of how the

products and services supplied by a company meets or surpasses his expectation. It is a position

after a transaction where a customer has no questions or complaints. It also means that both the

selling and the purchasing party are mutually satisfied with the exchange of goods.

The customer-satisfaction process helps the team figure out who the real customer is and

how to balance competing customer priorities. In many cases, the reason for a survey being

conducted is unclear. The customer-satisfaction process helps the team get out in front of the

customers and proactively determine their expectations so the product or service can be designed

for satisfaction. The objective of the customer satisfaction process is to enable the organization

to determine who their customers are, what they want, and how to satisfy them. Customer

satisfaction is often underestimated. A satisfied customer will place repeat orders, ensuring a

business has long-term security and may try other products with little or no further promotion.

Keeping customers happy with the products is also the most efficient and cost effective way

of promotion. A satisfied customer is very likely to recommend the product to others. Many

people will buy based on personal recommendation rather than from any other type of

promotion. It is very powerful. A satisfied customer will become an unofficial salesperson for

the business - and the market as a whole. On the other hand, a unsatisfied customer will tell

many people about their unhappy experience and it might do a lot of damage to the company.

Customer satisfaction must be the primary goal of any organization. Therefore every employee

should understand the importance of customer. When a customer satisfaction survey is

conducted, the questions asked to the customers are important. How, when, and how often these

questions are asked are also important. However, the most important thing about conducting a

customer satisfaction survey is what the company does with the answers. There are many ways

to ask the customers whether or not they are satisfied with the company, its products, and the

service they received. The different ways in which a customer satisfaction survey can be done

are:

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• Face-to-face

As they are about to walk out of the store or office, ask them.

• Call them on the phone

If the company has the customer’s phone number, and their permission, they could be

contacted after their visit and ask how satisfied they are.

• Mail them a questionnaire

Another way is to send the questionnaire to the customer by mail.

• Email them a customer satisfaction survey.

Collect the customer’s email id and mail them a customer satisfaction survey.

• Email the customers an invitation to take a customer satisfaction survey.

The best time to conduct a customer satisfaction survey is when the experience is fresh in their

minds. If there is any delay in conducting a survey, the customer's response may be less accurate.

He may have forgotten some of the details. He may answer about a later event. It is too easy for a

customer to answer yes to the "will you buy from the company again?", whether they mean it or

not. One should ask other questions in a customer satisfaction survey to get closer to the

expected behavior and to collect information about what to change and what to keep doing.

After collecting the information the next big step is deciding what the organization is going to

do with it. They should act on the basis of information gathered from the survey. It should fix the

things which the customers have complained of. The management should improve the company

and the products in those areas that means the most to the customers. Customer satisfaction

surveys are important tools for measuring the success of a company. They often predict or

explain sales trends, and can give the company a clear information on what changes will improve

the bottom line. Throughout satisfaction survey process, it includes managers and frontline

employees so that they understand the project's value. Customer satisfaction has been embraced

by practitioners and academics alike as the highest-order goal of a company.

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To execute a successful client satisfaction survey, build one that your customers have the time

and inclination to respond to, and that delves into the types of information that will truly help

enhance the performance. By carefully constructing a brief, yet strong, survey, the company can

discover what its customers believe the strengths and weaknesses of the company are and what

makes the customers loyal to your company. It can be argued that satisfying customers is the

primary obligation of a company. Hence, customer satisfaction is a defensible and appropriate

company objective-the glue that holds various corporate functions together and directs corporate

resource allocation.

REFERENCE

1) Harold Koontz and Heinz Weihrich, Essentials of Management, ed. 6, McGraw Hill, New Delhi,

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2.1 PETROLEUM INDUSTRY: A GLOBAL PERSPECTIVE

Even though petroleum and natural gas resources are finite, they remain among the most

important sources of energy in the world. It has been found that seventy five percent of the

world’s energy demand is met by oil and natural gas. Petroleum industry played a major role in

shaping the 20th century and will remain a major force driving economic development well into

the 21st century. Over the past decades, there have been major changes in the oil industry

resulting in far reaching developments such as; mergers and take-over’s, globalization,

government influence and technological advances and innovations. In the first part of the talk, an

insight into the oil industry was given and some recent trends were discussed. The talk was

concluded by presenting some technological advances and important research issues related to

more efficient oil recovery techniques.

Oil is an important commodity rather than being a luxury in our lives. 70 – 75 % of world’s

energy demand is met by oil and natural gas resources. Approximately two-thirds of the world’s

oil that has been discovered will be left underground using conventional extraction technologies;

the oil can be trapped in the tiny pore spaces of the reservoir rock. These can be very difficult to

reach, or regions of the reservoir may not be contacted by production wells. With the increasing

demand on oil and shortage in tankers and the global refining capacity, oil prices have been

increasing significantly in the last few years. Therefore, improved oil recovery (IOR) techniques

are becoming increasingly popular to boost production from these resources.

There are concerns that increase in production can cope with no more than a 2.4% rise in

demand while Goldman Sachs predict global economic growth of 4.2% in 2006. Regrettably, oil

is a non-renewable energy source, finite and will inevitably run out some day. The current debate

is how long the fossil fuels will continue to be the dominant energy source. There are multiple

scenarios on the topic and only time can show which one is the right. Petroleum Industry is

regarded as one of the largest in terms of capacity and at the same time one of the most

sophisticated ones in the whole world. The correlation between the rate of production of the

petroleum based fuels with that of the transport industry is very high. Transportation industry

derives almost all of its energy from the utilization of the petroleum products.

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There are some core areas of World Petroleum Industry which are very important

locationally as well as strategically. The processes that are involved in the petroleum industry all

over the world are given in the following steps.

Drilling at the site of petroleum for making well so that the crude oil could be extracted.

Storing of the extracted crude petroleum in a secured place

Transportation of the stored crude oil is required to be done up to the different refineries.

Processing of the crude oil needs to be done in the processing units or refineries for

converting it into the usable fuel form along with the other important derivative products

like lubricants etc.

The process of drilling was first accomplished in the state of Pennsylvania, USA. The process

involves pumps, extensive and complicated pipeline system, and storage tanks. After the

completion of the drilling process, the transportation of the same to the refinery or storage site

becomes important which could be accomplished through tankers meant for transporting of

liquid petroleum, oil barges, pipelines and tank cars.

The storage system of the petroleum products requires additional prominence. Generally, the

storage of the same is done in the tanks which come in wide varieties. They are tanks with

cylindrical structure and flattened roof, tanks which possess floating top, tanks that are

characterized by spherical shape, tanks meant for butane, specialized tanks for storing ammonia

known as Hopper tanks. Refining is the most important part of the World Petroleum Industry

which in fact is responsible in extracting the usable petroleum out of its crude form.

Petroleum is vital to many industries, and is of importance to the maintenance of industrial

civilization itself, and thus is a critical concern for many nations. Oil accounts for a large

percentage of the world’s energy consumption, ranging from a low of 32% for Europe and Asia,

up to a high of 53% for the Middle East. Other geographic regions’ consumption patterns are as

follows: South and Central America (44%), Africa (41%), and North America (40%). The world

consumes 30 billion barrels (4.8 km³) of oil per year, with developed nations being the largest

consumers. The United States consumed 25% of the oil produced in 2007.

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2.2 PETROLEUM INDUSTRY: INDIAN PERSPECTIVE

Petroleum Industry is considered to be the back bone of an economy because this is the main

source of energy till date. Any economy around the world would fail to proceed a single step in

the absence of Petroleum Industry. Thus, before using this energy source, the crude petroleum is

required to be refined in the petroleum refineries for extracting various fractions for energy

Indian Petroleum Industry started its journey during the fiscal year 1890 in the north-eastern

provinces of India especially in the place called Digboi. The production of petroleum along with

the exploration of new sites was primarily restricted to north-eastern India up to the 1970s. But

the scenario changed drastically with the discovery of Bombay High. Indian Petroleum Industry

was entirely state sponsored and was under the management control of all the industries involved

in it were entirely with the government.

After the inception of the Liberalization-Privation-Globalization (L-P-G) policy in the month

of July, 1991, the government had started allowing the Indian Petroleum Industry to go into

private as well as government-private joint ventures. The deregulation process in the Indian

Petroleum Industry got a boost in the year 1997 when it was decided that the process of

liberalization and deregulation would be accelerated in this industry and all the regulations

would go away from the month of April in the year 2002. Over the years India Petroleum

Industry has played an influential part in triggering the speedy expansion of the country's

economy by contributing 15% in the total GDP. Further to this, petroleum exports gave new

dimension to foreign exchange earnings by drawing US$ 23.64 billion in the FY 2008-09.

India is steadily emerging as an international destination for oil refining with investment

requirements lesser by 25% - 50% as compared to its Asian counterparts. As per the analysis

carried out by Deutsche Bank, India is expected to enhance its refining competence by 45% in

the next 5 years. Being the fifth biggest worldwide nation in context of distillation capacity,

India enjoys 3% of the international capacity share. To move ahead in making its presence felt

strongly in the global market, Indian petroleum firms are planning to raise their distillation

capacity from the existing 149 mtpa to 243 mtpa by FY 2011-12.

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India's domestic demand for oil and gas is on the rise. As per the Ministry of Petroleum,

demand for oil and gas is likely to increase from 186.54 million tonnes of oil equivalent (mmtoe)

in 2009-10 to 233.58 mmtoe in 2011-12.Expansion of Indian petroleum retail market is triggered

by the growth in automobile sales that resulted in major foreign investments. The growth is

estimated to sustain and the market is likely to expand further by 20 million every year till 2030,

placing India at the world map in terms of being the biggest automobile market. Accordingly, the

petroleum dealers Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Indian

Oil Corporation in collaboration with each other are looking forward to add 2,262 petrol pumps

in India by 2010.

2.2.1 INVESTMENTS IN INDIAN PETROLEUM INDUSTRY:

• In 2010 the state-owned oil firms are expected to splurge US$ 11.34 billion on

developing supplies and constructing new shipping networks for petroleum and natural gas.

• Indian Oil Corporation is looking forward to establish a petroleum plant in the state of

West Bengal by bringing in investments worth US$ 596.63 million

• ONGC will bring in US$ 694 million for raising services at its oil fields in Assam and

adjoining states to enhance the petroleum output. In addition it will also splurge US$ 5.65 billion

on capital expenses in the next two years.

• GAIL (India) Limited and OVL, the international associate of leading oil and gas player

ONGC, are expected to bring in investments worth US$ 250 million.

As per the latest CII-KPMG analysis, the energy industry of India will help in the expansion

of the petroleum sector by bringing in investments worth US$ 120 billion-US$ 150 billion in the

next 3-5 years. By 2012, the prospects in India Petroleum Industry are estimated to accomplish

US$ 35 billion to US$ 40.

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2.2.2 VARIOUS PRODUCTION SEGMENT

To assist and acknowledge the expansion of the sector, the Cabinet Committee on Economic

Affairs felicitated 44 petroleum research blocks on November 2008 under the New Exploration

Licensing Policy (NELP-VII).

Refinery production: Refinery production in context of crude oil escalated from 156.11

MT in FY 2007-08 to 160.67 MT in FY 2008-09. Indian Oil Corporation Ltd is looking

forward to elevate the capacity of its Haldia refinery and Panipat refinery plants to 7.5

million tones and 15 million tonnes respectively in 2010.

Crude Oil Production: The projected production of crude oil during the 11th Five-Year

Plan (2007-2012) is 206.76 MMT, while that of natural gas is 255.27 BCM. Cumulative

production of crude oil between April-December 2009 was 25,152 MT, while cumulative

production of refinery production during the same period was 119,283 MT.

2.3 COMPANY PROFILE

Indian Oil Corporation is an Indian public-sector oil and gas company and is one of the

Maharatna companies. It is India’s largest commercial enterprise, ranking 105th on the Fortune

Global 500 list in 2009. Indian Oil and its subsidiaries account for a 47% share in the petroleum

products market, 40% share in refining capacity and 67% downstream sector pipelines capacity

in India. The Head Office is located at Mumbai. The Indian Oil Group of Companies owns and

operates 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tons

per year.

Indian Oil operates the largest and the widest network of petrol & diesel stations in the

country, numbering over 18,278. It reaches Indane cooking gas to the doorsteps of over 53

million households in nearly 2,700 markets through a network of about 5,000 Indane distributors.

Indian Oil's Research and Development Center (R&D) at Faridabad supports, develops and

provides the necessary technology solutions to the operating divisions of the corporation and its

customers within the country and abroad. 12

From an inexperienced company with a net worth of just Rs. 45.18 crore and sales of 1.38

million tonnes valued at Rs. 78 crore in the year 1965, Indian Oil has since grown over 3000

times with a sales turnover of Rs. 271073.62 crore, the highest–ever for an Indian company, and

a net profit of Rs. 10220.55 crore for 2009- 2010. Indian Oil today accounts for nearly half of

India’s petroleum consumption, reaching precious petroleum products to millions of people

every day through a countrywide network of around 35,000 sales points.

2.3.1 VISION WITH VALUES

2.3.2 HISTORY

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Indian Oil began operations in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation

was formed in 1964, with the merger of Indian Refineries Ltd. It is also the 18th largest

petroleum company in the world and the number one petroleum trading company among the

national oil companies in the Asia Pacific region. In 1964, Indian Oil commissioned Barauni

Refinery and the first petroleum product pipeline from Guwahati. In 1965, Gujarat Refinery was

inaugurated.

In 1972, Indian Oil launched SERVO, the first indigenous lubricant. In 1974, Indian Oil

Blending Ltd. (IOBL) became the wholly owned subsidiary of Indian Oil. In 1998, Panipat

Refinery was commissioned. In the same year, Haldia, Barauni Crude Oil Pipeline (HBCPL) was

completed. In 2000, Indian Oil crossed the turnover of Rs l, 00,000 crore and became the first

Corporate in India to do so. In 2003, Lanka IOC Pvt. Ltd. (LIOC) was launched in Sri Lanka. In

2005, Indian Oil's Mathura Refinery became the first refinery in India to attain the capability of

producing entire quantity of Euro-III compliant diesel.

2.3.3 ACHIEVEMENTS

Won the SAP ACE – Awards for customer excellence in 2007.

Won the Oil Industry Safety Directorate Awards in 2007.

SERVO acquired prestigious MAN global approval in 2007.

Bagged SCOPE gold trophy for Best Practices in Human Resources Management in

2007.

Indian oil was honored with ‘CIO 100 Award’ in 2007.

Won the ‘Most Admired Retailer of the year’ award in 2007.

Indian oil’s Xtrapower won the loyalty summit award in 2008.

Won the SCOPE Meritorious Awards for Environmental Excellence and Sustainable

Development and good Corporate Governance.

Won six awards at PRSI annual meet in 2008.

Won the World petroleum congress excellence award for technical support in 2008.

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Indian oil was conferred ‘Business Super Brand 2008’.

Received ‘Award for global impact by an Indian PSU’ in 2009.

Won Oil & Gas Supply Chain Excellence Award in 2009.

Bagged the Safety Innovation Award in 2009.

Most Innovative Company Honour to Indianoil in 2009.

Bagged four OISD Awards in 2009

R&D centre Won Technology day award in 2010.

Indian oil tops Business Standard’s ‘BS 1000’ ranking in 2010.

2.4 PRODUCT PROFILE

Besides having a dominant market share, Indian Oil is widely recognized as India’s

dominant energy brand and customers perceive Indian Oil as a reliable symbol for high quality

products and services. Benchmarking Quality, Quantity and Service to world-class standards is a

philosophy that Indian Oil sticks to so as to ensure that customers get a truly global experience in

India. The emphasis is on providing fuel management solutions to customers who can then

benefit from company’s expertise in efficient sourcing and least cost supplies keeping in mind

their usage patterns and inventory management.

Indian Oil is a heritage and iconic brand at one level and a contemporary, global brand at

another level. While quality, reliability and service remains the core benefits for the customers,

the stringent checks are built into operating systems, at every level ensuring the trust of over a

billion Indians over the last four decades. The Retail Brand template of XtraCare (Urban),

Swagat (Highway) and Kisan Seva Kendras (Rural) are widely recognized as pioneering brands

in the petroleum retail segment. Indian Oil’s leadership extends to its energy brands. Its products

and services are:

Indane LPG

SERVO Lubricants

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Autogas LPG

XtraPremium Branded Petrol

XtraMile Branded Diesel

XtraPower Fleet Card

IndianOil Aviation

XtraRewards cash customer loyalty programme.

Aviation Turbine Fuel

Bitumen

2.41 PRODUCT DETAILS

Indane is one of the largest packed-LPG brands in the world and has been conferred the

‘Consumer Super brand’ status by the Super brands Council of India. Having launched LPG

marketing in the mid-60s, Indian Oil has been credited with bringing about a ‘kitchen

revolution,’ spreading warmth and cheer in millions of households with the introduction of the

clean and efficient cooking fuel. It has led to a substantial improvement in the health of women,

especially in rural areas by replacing smoky and unhealthy chulha. Indane is today an ideal fuel

for modern kitchens, synonymous with safety, reliability and convenience. The Indane network

delivers 1.2 million cylinders a day to the doorsteps of over 53 million households, making

Indian Oil the second largest marketer of LPG globally, after SHV Gas of The Netherlands.

Another major product of the company is XTRAMILE Super Diesel which is the leader in

the branded diesel segment. It is blended with world-class multi-functional fuel additives.

Commercial vehicle owners choose XTRAMILE because they see a clear value benefit in terms

of superior mileage, lower maintenance costs and improved engine protection. A growing section

of customers who own diesel automobiles, both in the ‘lifestyle’ and ‘passenger’ category, prefer

XTRAMILE as a fuel for its added and enhanced performance. XTRAMILE has brought in a

huge savings in the high mileage commercial vehicles segment. Transport fleets that operate a

large number of trucks crisscrossing the country are using XTRAMILE to benefit from higher

mileage and reduced maintenance costs.

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Indian Oil's SERVO is the brand leader among lubricants and greases in India and has been

given the “Consumer Super brand” status by the Super brands Council of India. With over 500

commercial grades and 1,500 formulations encompassing literally every conceivable application,

SERVO serves as a one-stop shop for complete lubrication solutions in the automotive, industrial

and marine segments. Recognized for cutting-edge technology and high-quality products,

SERVO is backed by Indian Oil's world-class R&D and an extensive blending and distribution

network.

2.5 COCHIN PORT TRUST

Cochin Port is one of the major ports of India. Cochin Port Trust is a body of the Government

of India that manages the Port of Cochin.. The modern port was established in 1926. Cochin Port

Trust is an Autonomous Body under Government of India and is managed by Board of Trustees

constituted by the Government of India. The Board is headed by the Chairman who acts as the

Chief Executive Officer. The Government of India may from time to time nominate the trustees

in the Board representing various interests. Chairman is assisted by the Deputy Chairman who in

turn is assisted by Department Heads and officials of the following departments functioning in

the Port.

A draft of 38 ft. is maintained in the Ernakulam channel along with berthing facilities, which

enables the Port to bring in larger vessels to the Port. In the Mattancherry channel a draft of 30 ft.

is maintained. The Port provides round the clock pilotage to ships subject to certain restrictions

on the size and draft of the vessels. There is an efficient network of railways, roads, waterways

and airways, connecting the Port with the hinterland centers spread over the State of Kerala,

Tamilnadu and Karnataka. Facilities for supply of water and bunkering to vessels are also

available. Many projects are progressing in the port, let’s see some of them.

INTERNATIONAL CONTAINER TRANS-SHIPMENT TERMINAL

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The port is currently building India's first International Container Transshipment Terminal on

Build-Operate-Transfer basis with Dubai Ports World, in the island of Vallarpadam, north of

Willingdon Island. The new International Container Transshipment Terminal (ICTT) will be a

state-of the art facility with a final capacity of around 3 million TEU. The terminal in its fully

developed stage will have a berth length of 1800 m with a permissible draught of 14.5 m for

deep-sea vessels. The permissible draught of 14.5 m will allow for vessels of up to 8000+ TEU

capacity.

The new terminal will make Cochin a key centre in the shipping world reducing India's

dependence on foreign ports to handle transshipment.

The competitive position of the Port of Cochin in the highly competitive market of

container transshipment will be significantly increased.

The state-of-the art equipment and operational methods will maximize space and

infrastructure utilization.

LNG RE-GASIFICATION TERMINAL

The LNG Terminal by Petronet LNG Ltd. is another major project in Cochin. Petronet LNG

Ltd. (PLL) will set up a LNG re-gasification terminal with the associated facilities in Cochin

Port. The project will have an initial capacity of 2.5 million tonnes per annum. The terminal will

consist of a jetty for LNG vessels up to 175000 m3 with a length of 280 m and a draft of 12.0 m.

The jetty will be connected to storage and re-gasification facility with an initial capacity of 2.5

million tonnes p.a. going up to 5 million tonnes p.a. in the future. The total area of the terminal

will be 32 hectares. . Construction work started in 2007. The LNG reception tanks are under

construction and have reached a height of 31 metres out of the 42 metre design pre-dome height.

The re-gasification plant is under erection. The facility is expected to be operational by

December 2011.

International Bunkering Terminal (IBT)18

Cochin Port has initiated project planning to develop a multi-user liquid terminal in the

Puthuvypeen SEZ area to handling import of bunker fuel, LPG and Crude Oil. The port being

located adjacent to the busiest international sea routes is required to meet the increasing demand

for supply of bunkers to the vessels plying in the international routes and also those calling at

the Port. Cochin Port is in an advantageous position for supplying the bunkers and other services

to the vessels at competitive price due to the presence of a Refinery/ major oil companies for

supply of bunkers, a major ship repair yard for attending to immediate repairs and international

airport for lifting the spares/crews. The Cochin port proposed to create the basic infrastructure of

a multi-user liquid terminal and commence the bunkering operations through PPP format.

REFERENCE

1) www.iocl.com

2) www.onepetro.org

3) www.economywatch.com

4) www.socialstudies.com

5) www.cochinport.com

3.1 ORGANIZATIONAL HIERARCHY OF INDIANOIL CORPORATION

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The organizational study was done at INDIANOIL Corporation, panampilly Nagar, Kochi. It consists of 10 departments which are headed by the General Manager. Each department performs various functions.

3.2 DEPARTMENT WISE DETAILS

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GENERAL MANAGER

RETAIL SALES

CONSUMER SALES

FINANCE RETAIL LUBE SALES

OPERATIONS

LPG HR

ENGINEERING

DGM

MGR 1

Sr. MGR

MGR (RS)

CM (FM)

CM (RS)

CM (RS)

DGM

DEP MGR. TVM

Asst. MGR. EKM

SALES OFFICER. PGT

SRLSM

A/C OFFICER

SILSM

A/C OFFICER2

Sr. MGR

DGM (F)

DEP MGR

CUST.SUPP EXEC (Dy. Mgr)

Asst. ILS MGR. KTM

SALES EXEC, ILS. EKM

Ass. RLS

MGR. KTM

CH.MGR (LPG OPTNS)

Asst. MGR (Auto -LPG)

MGR

SR. MGR

CLMCHIEF

OPER MGR

Sr. MGR, LPG (Sales)Dy.MGR, LPG (ENGG)

MGR 2

MNGR

ASST MGR

ASST MGR

Sr.MGR

MGR

Dy. MGR

Asst. MGR (ENGG)

ENGG OFFCER

SALES EXEC, RLS, EKM

INSTITUTIONAL LUBE SALES

SALES OFFICER

CUS. SERVICE EXEC

SISM

INFORMATION SYSTEMS

SENIOR IS MGR

DY. MGR

MGR

MGR, LPG (Opertns)

Retail Sales Department

The department is headed by the Chief Retail Sales Manager (CSRM). The main function of

the department is to sell the products of the company to the retail customers. Every decision in

the department is taken by the chief retail sales manager.

Consumer Sales Department

21

DGM (RS)

CM (RS)

CHIEF MANAGER

(RS)

CHIEF MANAGER

(FM)

MANAGER

(RS)

The department is headed by Deputy General Manager or DGM. The main function of the

department is to sell products to the industrial customers. The department consists of a chief

manager, deputy manager and two sales officers.

Lubes Department

22

DEPUTY GENERAL MANAGER (CS)

Sr. MANAGER

DEPUTY MANAGER (TVM) ASSISTANT MANAGER (EKM)

SALES OFFICER (PGT)

The Head of the department is Senior Retail Sales Manager (SRSM). SLSM is the Senior

Lube Sales Manager. Lubes are mainly divided into two categories. a) Retail Lube and b)

Industrial Lubes. Retail Lubes is concerned with the sale of lubricants to the various petrol

pumps and service centres whereas Industrial Lubes mainly provides technical services to the

company.

LPG Department

23

LUBES

SRLSMSILSM

ASSISTANT MANAGER ILS KTYM

SALES EXECUTIVE ILS, EKM

ASSISTANT MANAGER, RLS KTYM

SALES EXECUTIVE, RLS KOTTAYAM

CUSTOMER SUPPORT EXECUTIVE (DY.MGR)

The LPG department is mainly divided into three sections:

LPG Sales deals with distribution of LPG to domestic household and hotels.

LPG Engineering is concerned with the construction and maintenance activities.

LPG Operations deals with filling the cylinders and circulating it to the customers and

distributors.

Operations Department

24

CLM

CHIEF MANAGER LPG (OPERATIONS)

SENIOR MANAGER LPG (SALES)

Dy. MANAGER LPG (ENGG)

ASSISTANT MGR (AUTO LPG)

The Department is headed by chief operations manager. The main function of the department

is to handle the various depots and terminals. For a customer to get the fuel from the company

the operations department has to approve the customer request and forward it to the terminal

from where the customer gets the supply.

Finance Department

25

CHIEF OPERATIONS MANAGER

SENIOR MANAGER MANAGER

The functions of the department include Financing the on-going Capital Projects & Capital

Asset Accounting, Disbursement of employee salary & other loans and advances. Another major

function is the preparation of revenue and capital budget, payment of sales tax & submission of

monthly statutory returns.

Engineering Department

26

DGM (F)

Sr. MANAGER DY. MANAGER ACCOUNTS OFFICER 1

MANAGER 1 MANAGER 2

ACCOUNTS OFFICER 2

The department is headed by the Chief Engineering Manager. The major function of the

department is to support Operations, Sales and LPG department. The department also handles all

the grass root projects. Other functions include carrying out maintenance works at retail outlets,

terminals and depots.

Human Resource Department

27

SENIOR ENGINEERING MANAGER

MANAGER DEPUTY MANAGERENGINEERING

OFFICERAsst MGR ENGG

The department is headed by a manager. The HR department takes care of the welfare of the

employees which includes their compensation plans and benefits. In addition to this if the

employees have any suggestions or complaints they turn to the HR department.

3.3 Process Flow

28

HUMAN RESOURCE

MANAGER Asst. MANAGER Asst. MANAGER

PROCESS

The Company deals with petroleum products. Its customers include various industries,

Shipping agents, Retail customers for LPG, petrol, diesel and kerosene. The process flow takes

place as follows:

Consumer sales department creates the necessary customer codes and appraises the terminal

where product is stored to supply the material to the customer as per the indent. The customer

then approaches the terminal and takes the necessary quantity of the product. In case of any

assistance required, terminal in turn contacts consumer sales department and consumer sales

department rectifies the errors, if any.

4.1 STATEMENT OF THE PROBLEM

29

The study deals with the Customer Satisfaction of Shipping agents and Vessel owners.

Data is collected from various customers to know whether they are satisfied with the products

and services delivered by Indian Oil Corporation Ltd.

4.2 LITERATURE REVIEW

The concept of customer satisfaction occupies a central position in marketing thought and

practice. It is a major outcome of marketing activity and serves in repeat purpose and brand

loyalty. These are times facing high customer attrition and it calls for greater customer

satisfaction. An important objective of business is to serve its customers to their utmost

satisfaction. Several researchers have been conducted to define what satisfaction and in specific

customer satisfaction is and to identify the factors which deliver customer satisfaction. In a

competitive marketplace where businesses compete for customers, customer satisfaction is seen

as a key differentiator and increasingly has become a key element of business strategy.

Levit has given ‘totality concept’ of a product whereby he says a product is more than an

object in the hands of the manufacturer; it is to be broadly viewed in detail setting as offering of

a cluter of values that are important for a customer to attain ‘total satisfaction’ with a product.

Churchill and suprenant have undertaken a study to investigate the relationships among the

determinants of customer satisfaction and they have concluded that the effects of expectation,

disconfirmation and performance were different for durable and non durable goods. Baidya and

Basu, have studied the impact of marketing efforts on customer satisfaction and the results of

their study reveal that the customers perception toward different marketing efforts are

significantly correlated with overall customer satisfaction level. Westbrook and Reilly have

defines Customer Satisfaction as, “an emotional response to the experiences provided by,

associated with particular products or services purchased, retail outlets, or even molar patterns of

behavior such as shopping and buyer behavior, as well as the overall marketplace.”

According to Tse and Wilton customer satisfaction is, “the consumer’s response to the

evaluation of the perceived discrepancy between prior expectations and the actual performance

30

of the product as perceived after its consumption”. On the surface, customer satisfaction seems to

be an uncomplicated concept. Early endeavors to understand customers post- purchase

responses were directed on the conception of cognitive dissonance. The literature of satisfaction

propounds satisfaction as an outcome as well as a process. Howard and Sheth have defined

customer satisfaction as an outcome: “the buyer’s cognitive state of being adequately or

inadequately rewarded for the sacrifices he has undergone.”

Servicing customers and providing them with satisfaction have become the slogan of modern

marketing industry. In today’s competitive milieu, an organization’s facility to deliver high

quality service those results in satisfied customers is said to be the key to a sustainable

competitive advantage. Furthermore, Muffato and Panizzolo (1995) have advocated that

customer satisfaction should be contemplated as one of the most important competitive factors

for the future, and that a firm;s profit earning ability would be indicated by it. They further

proposed that customer satisfaction would be a driving force for the firms to improve their

reputation and image, reduce customer turnover, and increase attention to customer needs.

4.3 SIGNIFICANCE OF THE STUDY

This study gives a clear idea to the company about the various problems faced by the

bunkering customers, as the company deals with the receiving orders and delivering customer

specific requirements. Indian oil Corporation has conducted surveys earlier in Cochin using

external agents, but in those surveys customer was taken as a whole. All the customers were

categorized into a single class. This study is conducted among special class customers like

bunkering customers. The objective of the study is to know the satisfaction level of the

bunkering customers and to know the various details of their respective organization. The survey

is conducted at Cochin and the study helps to know the scenario of the bunkering business in

Cochin.

The study throws light on the satisfactory elements of the bunkering customers and it also

shows the expected role of Indian Oil Corporation in providing fuel for the bunkering customers.

Another significance of this study is related to the upcoming projects in Cochin. Some of the

31

major projects which are under progress like International Container Trans-Shipment, LNG

terminal, International bunkering terminal are going to create a huge impact in the overall

development of Cochin. So the study reveals the shipping agents perception on the

commencement of these projects in Cochin. This study thus will help Indian Oil Corporation to

understand the bunkering customers perception which will thereby aid in the decision making

process in future.

With the commencement of Vallarpadam terminal more private players could come into the

market with better technology and service. Indian Oil Corporation should therefore see to those

challenges which could affect the organization’s market share. This study also understands those

parameters which could give the organization a competitive advantage over its competitors and

helps the organization to further strengthen their service facilities so that the customers wouldn’t

shift to new companies even when they are available. The organization could also raise the

technological standards which could further widen the customer base. Indian Oil Corporation has

been providing good service to its customers all these years and this study reveals that fact.

4.4 SCOPE OF THE STUDY

The study focuses on how and why the customer makes decision to purchase products from

the company. The dissatisfaction with the choice of a product have been caused due to a variety

of reasons, this can be continuous poor service problem, poor influence of the existing

consumers towards potential consumers. Each possible consequences of post purchase

satisfaction have significant satisfaction for the company. The study on consumer behavior helps

to know who the customers are, what they want, how they use and react to the product.

The wants of a customer are carefully studied by conducting surveys on consumer behavior.

The study also helps to know various marketing variables such as price and product features.

This study will help to gain knowledge about the influence of consumer to prefer a particular

32

brand and the problems faced by them on using such brands. The research will help to gain

knowledge on the issues such as the factors influencing the customer to prefer a particular brand,

the satisfaction of the respondents with their preferred brand and to know the opinions and ideas

of the consumers about the brand.

Here the population was the shipping agents and vessel owners and the sample was the

number of respondents from which data was collected. A sample is a subset of the population.

The Size of a sample refers to the number of items to be selected from the universe or population

to constitute a sample. The size of sample should be optimum that is it cannot be either too large

or too small. It should fulfill the requirements of efficiency, representatives, reliability and

flexibility.

4.5 OBJECTIVE OF THE STUDY

To know the level of satisfaction among the customers regarding the various products and

services of the company.

4.6 METHODOLOGY

Sampling plan - The sample size required for the study was collected from 30 people

on the basis of convenient sampling. They were interviewed with the help of a well

structured questionnaire.

Tools for collecting data - The questionnaire is the major tool administered for

collecting primary data from the respondents. The initial phase of the questionnaire was

devoted to the basic information relating to the respondents such as his name and

designation. Thereafter, the questionnaire contains other factor questions.

Data Collection – Primary data is collected through interactions with the sample group

and questionnaire. A questionnaire comprising of 39 questions was prepared and on the

basis of personnel interview with the respondents the questionnaire was filled.

Secondary data is collected from the company website.

33

Data Analysis Procedure - The statistical tool used for the purpose of the analysis of

the study is simple percentage technique. After the collection of data through the

questionnaire, editing was done carefully. Based on the responses of the samples, tables

were prepared. The data collected were analyzed and interpreted with the help of tables

and figures.

Data was collected through direct or indirect interaction with the customers.

4.7 LIMITATIONS OF THE STUDY

Following are the limitation encountered during this study.

The time period for the organization study and the problem study was difficult for

a detailed study.

Many of the shipping agents who were on the list of Indian oil actually had their

offices at Mumbai and only their local contacts were available at Cochin who was

not ready to provide any answer.

Some of the responses were incomplete or casual.

REFERENCE

34

1) (Churchill, Gilbert A. jr., Suprenant, C., 1982. An Investigation into the determinants of customer

satisfaction. Journal of marketing research 19(4), 491-504)

2) (Westbrook R A and Reilly M D (1983), “Valur-percept disparity: An alternative to the

Disconfirmation of Expectations Theory of Consumer Satisfaction”, in R P Bagozzi and A M

Tybout (Eds.), Advances in Consumer Research, pp.256-261, Association for Consumer

Research, Ann Arbor, MI.)

3) (Tse D K and Wilton P C (1988), “Model of Consumer Satisfaction Formation: An Extension”, Journal of marketing Research, Vol. 25, No. 5, pp. 204-212.)

4) (Howard J A and Sheth J N (1969), The Theory of Buyer Buyer Behavior, John Wiley and Sons, New York.)(Muffato M and Panizzolo (1985,”A Process-Based view for Customer Satisfaction”, International Journal of Quality & Reliablity Management, Vol. 12, No.9, pp. 154-169)

5) Research Methodology, C.R Kothari

6) Indian journal of marketing, September 2008

5.1 Experience in Shipping Line.

35

Table 5.1: Experience

Chart 5.1: Experience

INFERENCE:

The Table shows the experience level of the shipping agents. Out of the 30 shipping agents 18 of them have come into existence in the last 20 years. 5 of them lie between 21 and 50 years. Four of the shipping agents have come in between 51 and 80 years. One of them between 80 and 100 years and there are two shipping agents who have started their company for more than 100 years.

5.2 Classification of the Respondents

36

YearsShipping agents

0-20 1821-50 551-80 481-100 1Abv 100 2

Table 5.2: Classification

Type Percentage

Agents 84%Owners 12%Others 4%   

Chart 5.2: Classification

INFERENCE:

The Table shows the classification of the Marine Customers who have been surveyed. Out of the total 30 respondents 26(84%) of them are Shipping Agents, 3(12%) of them are Vessel owners and others include 1(4%) Vessel Operators.

5.3 Agency Permanent or Temporary

37

Table 5.3: Agency

Chart 5.3: Agency

INFERENCE:

The Table Shows the Agency information about the Shipping Agents. It was found that 77% of the Shipping agents are permanent agents of a vessel and only 23 % were found to be temporary agents of a vessel.

5.4 Whether Agents of international Vessel.

38

Attributes Percentage   Permanent 77%

Temporary 23%

Table 5.4: International Vessel Agent

Attributes Shipping agents   

Yes 83%

No 17%

Chart 5.4: International Vessel Agent

INFERENCE:

The Table Provides information about the shipping agents who are International Vessel Agents. 83% of the people said they are agents of an International Vessel while 17% said they are not agents of any international Vessel.

5.5 Vessels Reporting at Cochin Port in a Month.

39

Table 5.5: Vessels reporting

Chart 5.5: Vessels Reporting

INFERENCE:

As per the figures from the Cochin port trust about 1500 vessels report at Cochin during a year. The sample size was 30 and the table shows the number of vessel of these shipping agents which reported at Cochin port in a month. There are twenty shipping agents whose vessels report at Cochin port in the range 0-5. Three shipping agents vessels report in the range 6-10 and another three whose vessels report in the range 11-15. Others include an organization whose vessel reports only thrice in a year. NA is for not applicable; there were three organizations to which the question was not applicable because their vessels don’t come to Cochin port.

5.6 Number of coastal Ships handled in a month

40

Number of vessels Shipping agents   0-5 206-10 311-15 3Others 1NA 3

Table 5.6:Coastal

Number of ships Shipping agents

    0-4 13 5-9 2 > 10 1 NA 14

Chart 5.6: Coastal

INFERENCE:

The number of Coastal Ships Handled by the shipping agents in a month is shown in the Table 5.6. Thirteen shipping agents handle Coastal Ships in the Range 0 and 4 numbers, 2 organizations handle ships in between 5 and 9. One organization handles more than 10 coastal ships in a month. 14 of the organizations were not applicable to this question because they don’t handle Coastal Ships.

5.7 Number of foreign Ships handled in a month

41

Table 5.7: Foreign

Number of ships

Shipping agents

0-4 215-9 3>10 1NA 5

Chart 5.7: Foreign

INFERENCE:

The number of Foreign Ships handled by each shipping agent in a month is shown in the table. It was found that 21 shipping agents handle 0 to 4 numbers of foreign ships in a month. 3 of the shipping agents were found to handle ships between 5 and 9 and one shipping agents was found to handle more than 10 Foreign Ships in a month. There were shipping agents who didn’t handle any Foreign Ships and those respondents are put in the NA (Not Applicable) Category. There were 5 such shipping agents out of thirty for which the question was not applicable.

5.8 Whether interested to take Fuel from Cochin port

42

Table 5.8: Fuel

Attributes Shipping agents

Yes 67%No 23%Cant Say 10%

Chart 5.8: Fuel

INFERENCE:

The Table shows about the interest of the shipping agents in taking the fuel for their vessels from the Cochin Port. 66.67%shipping agents said YES, they would like to take fuel for their vessel from Cochin port while 23.33% said NO, they would not like to take fuel from Cochin Port. The reason was the cost. The cost of fuel at Cochin port is much higher when compared to other ports because of the higher sales tax in Kerala.

5.9 Fuel from Oil Company

43

Table 5.9: Oil Company

Chart 5.9: Oil Company

INFERENCE:

The Table shows the oil company from which the shipping agents take fuel for their vessel. It was found that 83% shipping agents took fuel from Indian oil Corporation Limited. Others contribute 17% which includes shipping agents who take fuel from other Ports.

5.10 Criteria for selecting Oil Company

44

AttributesShipping agents

   IOCL 83%BPCL 0%Others 17%

Table 5.10: Criteria

Attributes Percentage Price 95%Quality 100%Service 90%Easy availability 80%

Chart 5.10: Criteria

INFERENCE:

The Table shows the criteria which the Respondents follow while selecting Oil Company. It was found out that the most important criteria selected by the shipping agents was the Quality of the Product. 100% of the shipping agents said their priority was Quality, 90% told service is what they look for before selecting a Oil company. 95% went for price and 80% for Easy Availability. Shipping is a round the clock affair so the customers wanted the fuel to be available at all point of time and with easier formalities.

5.11 Expected role of a Oil Company

Table 5.11: Expected Role45

Chart 5.11: Expected Role

INFERENCE:

The Table shows the expected role of the Oil Company. It was found out that providing Quality, Quantity and good service were the most important role expected to be performed by the Oil Company. All the shipping agents equally agreed that they expected good service, correct quantity and good quality fuel from the Oil Company. Supplying the fuel on timely basis was another expected role of the Company by 95% shipping agents. 90% shipping agents were of the opinion that making formalities simpler was something which the company is expected to do.

5.12 Fuel with Highest Demand

46

Attributes Shipping agents   Timely Supply 95%Quantity and Quality 100%Good Service 100%Lesser Formalities 90%

Table 5.12: Fuel

Chart 5.12: Fuel

INFERENCE:

The table shows the fuel which has got the highest demand among the ships reporting at cochin.60% was of the opinion that Low Sulphur High Flash High Speed Diesel or LSHFHSD was the fuel which has got the highest demand. The next highest demanded fuel was Light Diesel Oil or Furnace Oil with 30%. 10% of the shipping agents vessel doesn’t report at Cochin port so this question was not applicable to them.

5.13 Storage Facility of Oil Companies

47

Attributes Shipping agents LSHFHSD 60%Furnace oil/LDO 30%NA 10%

Table 5.13: Storage Facility

Chart 5.13: Storage Facility

INFERENCE:

The Table shows what the respondents feel about the Storage facilities of the Oil Company. It was found out that 80% of the shipping agents were of the opinion that there was enough storage facility for the company. 20% of them said that they don’t know about whether the company has adequate storage facility.

5.14 Adequate Manpower for fuel supply

Table 5.14: Manpower

48

Attributes Shipping agents

   Yes 80%No 0%Don’t Know 20%

Chart 5.14: Manpower

INFERENCE:

The Table provides the response from the shipping agents on the manpower availability in Cochin for handling fuel supplies to vessels. 87% of them said that there was adequate manpower for handling fuel supplies to vessels while 13% didn’t know the answer for the question.

5.15 Whether satisfied with the service provided

Table 5.15: Service

49

Attributes Shipping agents   Yes 87%

NO  0%Don't Know 13%

AttributesShipping agents

   Yes 67%No 20%NA 13%

Chart 5.15: Service

INFERENCE:

The Table shows the satisfaction level of the Shipping Agents with the services offered by Indianoil. 66.67% of the shipping agents said that they were satisfied with the services offered by Indianoil while 20% said that they were not satisfied. They want a) terminals to work on Sundays and holidays. b) Sea going barges c) Fuel supply after sunset d) Outer anchorage supply.13.33% of the shipping agents haven’t used Indian oil products thus the question was not applicable to them.

5.16 Whether satisfied with the Services Provided by IOC Agent

Table 5.16: IOC Agent

50

Chart 5.16: IOC Agent

INFERENCE:

The Table shows the satisfaction level for the services offered by Indianoil Corporation’s Agent, Ancheril Agencies. It was found that 60% of the shipping agents were satisfied with the services offered while 16.67% of them were not satisfied. 23.33% which means 7 out of the total 30 shipping agents haven’t dealt with Ancheril Agencies so this question was not applicable for them.

5.17 Bunkering requirement on Saturdays/Sundays

51

Attribute Shipping agents Yes 60%No 17%NA 23%

Table 5.17: Bunkering

Chart 5.17: Bunkering

INFERENCE:

This Table is about knowing how often the bunkering requirement for a vessel arises on Saturdays and Sundays. Majority of the shipping agents i.e. 53% said that bunkering on those days will happen only if when it is required. 27% of them said bunkering requirement on those days will happen only two or three times in a year. 13% said it will arise monthly and 7% of them said requirement will arise every fortnightly.

5.18 Getting supplies On Sundays and Holidays

52

Attribute Shipping agents   Fortnightly 7%Monthly 13%Yearly 27%Based On Requirement 53%

Table 5.18: Supply

Chart 5.18: Supply

INFERENCE:

The table shows the information whether the shipping agents get supply on Saturdays and Sundays. 33.33% said that they do get supply On Saturdays and Sundays. But majority of them said that they don’t get supply on Saturdays and Sundays. There were 26.67% who fell into the category of Not Applicable because they have not tried to get supply on those days and some among them don’t take fuel from Cochin Port.

5.19 Supply after Normal working hours

53

Attributes Shipping agents   Yes 35%No 40%NA 27%

Table 5.19: Supply after working hours

Attributes Shipping agents

   

Yes 57%

No 23%

NA 20%

Chart 5.19: Supply after working hours

INFERENCE:

The Table shows whether the shipping agents have faced any difficulties in getting the supply after normal working hours. 56.67% said that they haven’t faced any problem in getting supply after normal working hours but 23.33% said that they have experienced problems in getting supplies after normal working hours. The question was not applicable to 20% of the shipping agents because some of them don’t take fuel from Indianoil Corporation and the others in this category have not tried to get supply after normal working hours.

5.20 Pricing compared to other State Ports

Table 5.20: pricing

54

Attributes Shipping agents   Higher 60%Lower 0%At Par 7%Can't Say 33%

Chart 5.20: Pricing

INFERENCE:

The table shows the opinion of the shipping agents on the port pricing of our state when compared with other state ports. 60% of the total shipping agents said that the port pricing in Cochin is much higher when compared to other state ports. 6.67% said the pricing was at par and 33.33% said they don’t know because they have not compared the pricing of Cochin port with other state ports. The shipping agents felt that the Sales tax, Piloting, Anchorage/Wharfage charges were pretty high at Cochin port

5.21 Pricing compared to international state ports

Table 5.21: Pricing

55

Attributes Shipping agents

   

Higher 60%

Lower 7%

Can't Say 33%

Chart 5.21: pricing

INFERENCE:

The Table shows the shipping agents opinion about the pricing at Cochin port. 60% of the shipping agents said that the Landed cost here is higher than the International ports. 7% were of the opinion that in Cochin port Landing Cost is lower when compared to the international ports. 33% of them said that they are not aware of the international landing cost. Fuel is available at a cheaper rate in foreign countries and in countries such as Sri Lanka discounts are there for purchase of more than 1000 MT fuel.

5.22 Furnace oil sale at Cochin

Table 5.22: Furnace Oil

56

Chart 5.22: Furnace Oil

INFERENCE:

The Table shows the shipping agent’s view on the furnace oil sale which has come down drastically. 63.34% of them said the reason for the sudden decline was because the vessel owners prefer to take the furnace oil from other ports. 10% said it is because the ships are not reporting. Also23.33% were of the opinion can’t say and 3.33% said it could be both i.e. ships take it from other port and also they do not report. Other reasons include the less draft availability at Cochin port and also vessels report at Single Buoy Mooring system (SBM) and do not come within the port.

5.23 Fuel Supply at Outer Anchorage

57

Attributes Shipping agents

   

Ships are not reporting 10%Not preferring to take from Cochin 63.34%

Can’t say 23.33%Both 3.33%

Table 5.23: Outer Anchorage

Chart 5.23: Outer Anchorage

INFERENCE:

The Table shows the shipping agents perception on supplying fuel at outer anchorage. Currently there is no outer anchorage supply. 97% of them believe that outer anchorage supply is possible while 3% believes that outer anchorage supply is not possible.

5.24 Restrictions by Cochin Port

58

Attributes Percentage

   

Yes 97%

NO 3%

Table 5.24: Restrictions

Attributes Shipping agents

   

Yes 47%

No 50%

NA 3%

Chart 5.24: Restrictions

INFERENCE:

The Table shows whether the shipping agents feel there are any restrictions imposed by Cochin Port Trust on Bunkering. 46.67% said there are restrictions imposed by the Port while 50% said that there were no restrictions imposed. 3.33% of the Shipping agents don’t report at Cochin port hence the question was not applicable to them.

5.25 Vizhinjam port impact on Cochin Port traffic flow

59

Table 5.25: Vizhinjam

Attributes Shipping agents

   

Yes 47%

No 47%

Can't Say 6%

Chart 5.25: Vizhinjam

INFERENCE:

The table shows what the shipping agents feel about the Vizhinjam Port’s impact on Cochin port traffic flow. It was found that same percentage of shipping agents agreed and disagreed on the view that once Vizhinjam Port is developed it will affect the traffic flow of Cochin port. 47% said it will affect while 47% said it won’t affect. 6% of the shipping agents said it cannot be predicted. Cochin port has an advantage of being a natural port with higher draft.

5.26 Traffic expected in the first year of commissioning of ICTT & LNG terminal

60

Table 5.26: First year

Attributes Shipping agents   0-10 611-20 921-30 431-50 4Can't say 7

Chart 5.26: First year

INFERENCE:

The table shows the volume of traffic expected in the first year after commissioning ICTT and LNG terminal by the shipping agents. 6 shipping agents said that they expect a rise in between 0% to 10%, 9 of them expected a rise in between 11% to 20%, 4 shipping agents said they expect a rise in between 21% and 30% and another 4 of them said that there will be a rise in between 31%to 50%. 7 people said that it can’t be predicted.

5.27 Traffic expected in the Second year of commissioning of ICTT & LNG terminal.

61

Table 5.27: Second year

Chart 5.27: Second year

INFERENCE:

The table shows the volume of traffic expected in the second year after commissioning ICTT and LNG terminal by the shipping agents.7 shipping agents expected a rise of 11% to 20%, 6of them said they expect a rise in between 21% and 30% and another 5 of them said that there will be a rise in between 31%to 50%. 12 shipping agents said that it can’t be predicted now.

5.28 Traffic expected in the Third year of commissioning of ICTT & LNG terminal.

62

Attributes Shipping agents

   

0-10 0

11-20 7

21-30 6

31-50 5

Can't Say 12

Table 5.28: Third year

Attributes Shipping agents

   

0-10 0

11-20 4

21-30 6

31-50 7

Can't Say 13

Chart 5.28: Third year

INFERENCE:

The table shows the volume of traffic expected in the third year after commissioning ICTT and LNG terminal by the respondents. 4 of the shipping agents expected a rise of 11% to 20%, 6 shipping agents said they expect a rise in between 21% and 30% and 7 of them said that there will be a rise in between 31%to 50%. 13 shipping agents said that it can’t be predicted now.

6.1 FINDINGS

Only Indianoil Corporation has bunkering facility in Cochin.

63

The Tax Rate in Cochin is much higher when compared to other ports. Here the rate is

12.5% for Furnace oil and 24.69% for LSHFHSD whereas in neighbouring states it is less

than 5%.

Due to the higher price many of the respondents didn’t want to take fuel from Cochin.

They take it from other ports. Mundra port in Gujarat, Colombo port and Singapore port

were some of the other ports mentioned.

Quality was the criteria chosen by majority of the respondents while selecting an oil

company. Few customers said that if the company is a government undertaking they

would go for that company because formalities will be much less in a government

company than in a private company.

Timely supply and providing good quality fuel is what the respondents expect most from

the Company.

Majority of them said that they were satisfied with the services offered by IndianOil.

Some of the customers had experienced problems in getting supply on Sundays and

holidays.

Majority of them believed that there were restrictions imposed by Cochin Port. Outer

anchorage fuel supply was a main restriction which the respondents wanted to take off.

Many of the respondents were of the opinion that the formalities should be made simpler.

Some respondents felt that the sales tax and port charges in Cochin were not comparable

with other state ports because the rates differ from place to place.

The drastic fall in the sale of furnace oil according to majority of the respondents was

because the vessels preferred to take the oil from other ports due to the difference in price

rate.

Outer anchorage fuel supply was possible according to the respondents and the

formalities which had to be covered was to get the permission of Port and Customs

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Limited availability of barges for the supply of fuel. This is one major problem which

needs to be addressed quickly.

Being a National Oil Company, it can achieve a great business target of marine supply

keeping in mind prompt delivery, competitive prices and quality product.

Many of the vessels which are not reporting at Cochin will come here once Vallarpadam,

ICTT and LNG terminal commences.

6.2 SUGGESTIONS

More number of barges could be positioned. Shipping is a round the clock affair and

every minute is costly for them. So the company should ensure that the fuel is supplied to

the vessel on time and on demand. Sea going barges may also be introduced also the

manufacturing quality of the barge could be raised.

Outer anchorage supply could be provided to the customers. It helps the customer save a

lot of time and cost. If the company provides outer anchorage supply then customers will

be satisfied. For this the Company could engage in talks with the Cochin Port and

implement the same.

People who are directly connected with the customers should be more customer friendly.

Bunkering could be done even during holidays. The demand should be met inorder to

satisfy the customer. Now as there is only one Oil Company which has bunkering facility

in Cochin, people don’t have any other option rather than to comply with the services

provided.

A customer helpline that is available 24 hours to the customer could be introduced so that

customer queries and complaints could be lodged with the company.

All official works and the formats which the customers have to work on could be

simplified and steamlined into one place for making it easier for the customers.

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6.3 SWOT ANALYSIS

External environment

OPPORTUNITY

One of the biggest opportunities for Indian Oil Corporation is the commissioning of ICTT and

LNG terminal. With this many vessels are expected to report at Cochin, hence the bunkering

volume is expected to grow exponentially. Also it is a good opportunity for a company like

Indian Oil Corporation with good bunkering facilities to garner more volume. Thus there is a

huge opportunity for the company to widen its customer base.

THREATS

Till now, Indian Oil Corporation Limited was the sole supplier. But, now M/S Bharat

Petroleum Corporation Limited has commissioned bunkering facilities for Fo-380 CST and

LSHFHSD. With the proposed MULT at puthuvypin, more private players with more advanced

quality in their product and service are likely to enter the market. This could be the biggest threat

for the company. If the government policies allow the private players to set their own price once

they enter into the market then the private players could seriously harm the market share of

Indian Oil Corporation Limited.

Internal environment

STRENGHTS –

IOCL has two terminals exclusively for bunkering, one at Wellington Island and one at

Ernakulum. Then another major strength of the company is the availability of pipeline and Jetty

facilities for bunkering. If in case the product is not available at one terminal it can be supplied

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from the other terminal. Another major strength of Indian Oil Corporation is that it has adequate

tankage facility for handling bunkering

WEAKNESS –

There is no outer anchorage supply in Cochin. Vessels have to come to the berth inorder to

refuel the vessel. This is a very time consuming and costly affair. Currently Indian Oil

Corporation is only having limited number of barges which is affecting the efficiency of fuel

supply to its customers. Shipping is a very costly affair and the shipping agents would want the

company to provide 24 hours supply. Bunkering is done only till 6 pm and after that special

permission is needed. The decision of supplying fuel only during the normal working hours is

another weakness for which Indian Oil corporation could engage in talks with the Cochin Port

and make the necessary arrangements.

6.4 Conclusion

Today Customer craves for convenience and availability of the product as and when

desired by them, it has become a challenge for the companies engaged in high value products.

The concept of customer satisfaction occupies a central position in marketing thought and

practice. It is a major outcome of marketing activity and serves in repeat purpose and brand

loyalty. Indian Oil Corporation Limited is one of the Maharatna companies and India’s largest

commercial enterprise. The organization has been successful in understanding the customer

needs and fulfilling it. With its wide experience in the industry and its tremendous capability,

Indian Oil Corporation could very well serve its customers needs and still would be to able to

become a market leader even after the emergence of new players into the market once

Vallarpadam and projects like International Container Trans-shipment terminal, LNG terminal

commences.

BIBLIOGRAPHY

1) Principles of Marketing

Seventh Edition, 1997

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Prentice – Hall Publishers

2) The IUP Journal of Management Research

Volume IX No.3

March 2010

3) Indian Journal of Marketing.

Volume XXXVIII

Number: 9

September 2008

4) Research Methodology Methods and Techniques

Revised Second Edition, 2004.

C.R Kothari

New age International publishers

5) www.economywatch.com

6) www.socialstudies.com

7) www.onepetro.org

8) www.Iocl.com

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