Tender for managing the loyalty programs (Petro Card, SmartFleet) for BPCL.Tender no.: TEND/LP/06/2011-12 dated 15th November, 2011Due on: 22nd November, 2011 by 15:00 hrs.

To,M/s. DIREXIONS MKTG. SOLUTIONS PVT.LTD, Crimpage Corporation, 4th Floor, Plot No. 57, 17th Street, MIDC Marol,Andheri (East), Mumbai -400093

Tender for managing the loyalty programs (Petro Card, SmartFleet) for BPCL.Tender no.: TEND/LP/06/2011-12 dated 15th November, 2011Due on: 22nd November, 2011 by 15:00 hrs.

To,Ch. Manager (Loyalty Programs)M/s.Bharat Petroleum Corporation Limited12th Floor, E Wing, Maker Towers,Cuffe ParadeMumbai -400005

Tender for managing the loyalty programs for BPCL

Tender no.: TEND/LP/06/2011-12 dated 15th November, 2011Due on: 22nd November, 2011 by 15:00 hrs.

RHQ.LP.CONTRACT November 15, 2011

M/s. DIREXIONS MKTG. SOLUTIONS PVT.LTD, Crimpage Corporation, 4th Floor, Plot No. 57, 17th Street, MIDC Marol,Andheri (East), Mumbai -400093

Dear Madam/Sir,

Sub: Tender for managing the loyalty programs (Petro Card, SmartFleet) for BPCL.

BPCL has two loyalty programs supporting its marketing activities. PetroBonus - targeted at the individual customer & SmartFleet – building relationships with fleet owners respectively.

These programs have completed a decade in existence and have formed a strong base of members. The volumes transacted through the programs are impressive. Both these program cover approximately 18% of the normal volumes traded by BPCL. 3.5 lac members in the ‘PetroBonus’ program & close to 80000 members in the ‘SmartFleet’ program form the member base in the program.

Relationship building with members is an onerous task and that too with such large numbers. These call for proper database management and account management services, to ensure that proper service can be rendered to the members. This apart members need to be engaged and closely associated with the program as well. BPCL seeks the services of the ‘competency’ of your agency to manage such activities as listed below in brief and elaborated in detail (Annexure I). Please understand the scope of work and quote your best rates.

1. Scope of work:Considering the above, a brief scope of work covered in this tender would inter-alia include:-

Data Base Management: Managing the database for the active members of PetroBonus Program on a secured server, basis which all marketing & communication activities would be done on this database.

Account Servicing: Broadly would require the dedicated resource from the agency to co-ordinate marketing activities of both the programs concerning the website management, Promotion & campaign management, Partnership management.

Customer Service: Managing customer service through a call centre to attend to the email and postal queries on the PetroBonus program.

Promotions and campaign: Designing, executing and tracking promotions for both ‘PetroBonus’ & ‘SmartFleet’ programs.

Mailing and fulfillment: Fulfillment of all the communications such as member statement, communications, festive greetings, through print and e-mail.

Website & Digital: Managing the websites of the programs. This scope also covers utilizing other forms of digital technology like mobile, etc.

Creative Outputs: Designing all the below line activity communications for the programs like direct mailers, outdoor collaterals offer letters, program updates and other communication.

All the activities shall be carried out in close co-ordination with the BPCL team. Needless to mention that the agency will strictly adhere to the timeline provided for the above activity and the agency will produce the quality output. A detailed scope of work is attached as Annexure I to assist in bringing in clarity to the entire scope and facilitate proper quote from the agency.

2. Tenure:The tenure of appointment of the agency would be initially for a period of one year from the date of issue of letter to commence the work. BPCL may at its own discretion call for extending the contract for a further period on the same terms & conditions.

3. Execution ProcessThe estimates for itemized work shall be submitted in advance for all types of work based on the final agreed rates. However for creative jobs, only the final approval of the creative shall construe approval of the work. A separate SLA will be drawn and signed to ensure and adhere to commitment levels to quality and time of delivery.

4. BillingBills will be raised and submitted by the agency separately for two accounts

1. Management fee bills at the end of the month2. ‘Call of Work’ bills on completion of the job.

Management fee bills for the previous month will be raised by the first week of the subsequent month by the agency and submitted for clearance. Bills submitted will include all supporting documents as required. Absence of ‘supportings’ will render the bill as disqualified for payment.Such receivables will be scrutinized to make the payment .

5. ConfidentialityAgency shall undertake to maintain complete confidentiality of fulfilling the above duties. Further, they shall also undertake that their directors, officers and employees shall take necessary steps to comply with the above restrictions and to use such methods and apply such degree of care with regard to Confidential Information, as would be used or applied to protect and avoid disclosure of their own Confidential Information. This in all will require signing off a ‘Confidentiality’ agreement and any breach of this clause will be considered a breach of agreement and liable for

termination of the contract. SLA would also include this clause and heavy penalties will be liable to be levied for such breach.

6. EMD - Earnest Money Deposit :

a) It is advised that the agency submit an EMD (Earnest Money Deposit) amount of Rs.1 Lakh in the form of a Demand Draft (DD) along with their bids payable to Bharat Petroleum Corporation Limited, Mumbai. In the absence of the EMD, the bids will be considered invalid and treated as rejected.

b) No interest will be paid on the EMD collected .

7. Security Deposit : a) The agency will provide a Security Deposit ‘equivalent to Rs 1 Lakh’ in the form

of a DD (Demand Draft drawn in favor of Bharat Petroleum Corporation Limited, and payable at Mumbai) / Bank Guarantee. Draft of the Bank guarantee will be made available to the partner in due course of time. The said Security Deposit will not attract any interest for the period of contract.

b) The agency will arrange to submit the DD / Bank guarantee within 30 days of the demand for the SD put forth, basis which the offer letter would be issued. In the event of the agency failing to submit the Security Deposit, their bid would not be considered and stand to be invalid. However, the EMD submitted can be converted into the security deposit if the agency wishes to do so.

c) The Security Deposit would be executed in the event of failure of the vendor to fulfill the terms of the contract.

d) The Security Deposit collected would be returned within 30 days after the successful completion of the tenure of the contract, and after a formal request for the release is made by the client in consideration.

e) In the event of an extension of the period of the contract, the period of the

security deposit will be considered to be extended till the valid period of contract. In the case of a Bank Guarantee issued by the successful bidder, a fresh bank guarantee will be drawn and issued by him/ in the case of DD being submitted earlier, the same will be retained till the extended period.

8. Rate Quotation:

The agency should submit their quotes for executing all the above activities for both the loyalty program of BPCL. The quotes for this tender are broken in two parts.

1. Management fees paid monthly should be quoted as per Annexure II. 2. Call of work (as described in Annexure I) - Rates for such call of works will be

based on SOR. Annexure III in the predesigned format captures the SOR. Items listed here will be used for such work to be executed in the program.

All quotes should be given inclusive of all taxes as applicable.

Your quotes should reach us in the envelope provided along with the Tender document on or before 22nd November 2011 latest by 15:00 hrs. addressed to:

Ch. Manager Loyalty Programs,Bharat Petroleum Corporation Limited12th Floor, E Wing, Maker Towers,Cuffe ParadeMumbai -400005

Thanking you,

Yours faithfully,For, Bharat Petroleum Corporation Limited

Arunabh DebCh.Manager, Loyalty Programs

Annexure- I

(Detailed Scope of Work)

The work outline above covers the nature of work to be executed through the tender. The activities however have two components under consideration –1. Common activities to be executed on a regular basis and are grouped together to be paid

on a monthly basis. 2. Call for activities that may be done over and above the normal ones. These are ones where

a marked consistency cannot be shown while executing, but are required for the health of the program. Both the activities are grouped together.

1. MONTHLY ACTIVITIES

Sr. No Activity(basis to quote)

Scope Of Work

1. Data Base Management

( Monthly Fees to be quoted in Annexure II)

Receiving and storing updated database masters of the PetroBonus program on a secured server of appropriate size and configuration with required firewalls.

Receive and store on a periodic basis (as deemed right by BPCL) transaction data of its member base.

Transfer of updated masters at a given periodicity to BPCL Utilizing available data for analytics Data Generation for the quarterly Petromiles statement of

the PetroBonus program for transmission to the approved creative and onward steps.

Standard Queries (will be defined in consultation with BPCL’s requirement such as no sale, no load, no load no sale etc.)

Monthly Dashboards as per BPCL’s requirement covering all aspects of the ‘PetroBonus’ program.

All the above defined activity to be a part of the standard works of the data center and to be quoted in the monthly management quote as per Annexure II.‘Call off Works’ is defined In point 2 of this document and will be quoted for in Annexure III of the document.

It may also be noted that all the cleaned database, additional fields and database updation on the said data will be the express property of BPCL. The same will be returned to BPCL as and when sought for.

2. Account Servicing( Monthly Fees to

be quoted in Annexure II)

This scope of work encompasses regular activities associated with all allied programs of ‘PetroBonus’ & ‘SmartFleet’. These activities would require to be managed in line with BPCL requirements and prior approvals. The broad level would be:

Creative out puts:

Periodic communications: Creative design , ‘copy & art work’ of all periodic program communications for each suitable medium, viz. direct mailers, web, email, press , SMS (approximately 100 nos. in a year) such as -

Quarterly Petromiles statement (4 nos) Monthly Proactive communications to the Gold and

Platinum members. Quarterly communication on Tier Movement upgrade and

downgrade of tiers for Gold and Platinum category (16 nos.)

Half yearly Dealer Newsletter (2 nos) Quarterly internal communication (4 nos)

Web based

Managing the websites of all the programs which will include ensuring no broken links & a 99%.uptime of the sites

Ensure all required statutory data as required by a member/prospect and approved by BPCL is available on the website.

Minor updating (name, city, figures, spellings, replacing inappropriate text. etc) on the website as desired by BPCL.

Other Standard activities on the websites to be done:a. Regular designing & updating the approved ‘Petro

Quiz’ on a monthly basisb. Updating the previous month quiz winners.c. Monthly web banners based on the briefs given by

BPCL.d. 5 web pages to be done per month.

Promotion campaigns :

Based on the brief provided, agency will provide quality concepts of promotions & campaigns to increase member engagement, rewards or sales. This would thereafter have to be executed. At least 2+2(PetroBonus & SmartFleet) well conceived, properly drawn up in a year.

Mailing and Fulfillment

Coordinating for mailing and fulfillment of all the communications thru relevant mediums within specified timelines.

Partnership and alliances

Inviting and enrolling partners to give offers and promotions to our members.

Identify partners for exclusive Promotions and offers for a limited period.

Identify Partners for Burning Petromiles for a limited period.

At-least 2 partners each per quarter for both ‘PetroBonus’ and ‘SmartFleet’ programs to be introduced and be converted into a successful deal.

3. Customer Service(Per seat basis to be quoted in the

Annexure II)

Managing the customer service and responding to all queries of ‘Petro Bonus’ members would include :

a. Handling inbound emails – ensuring closure of complaints received

b. Inbound Postal queries- ensuring closure of complaints received .

c. Managing the P.O. Box –arranging receipt of mail from P.O Box regularly and renewing the contract periodically

d. Submitting weekly and monthly reports, analytics and suggestions for improvements for lowering customer complaints.

The rate for this item will be quoted on a call centre seat basis. Minimum call centre seats required to be provided by the agency will be 2nos. to start with.

2. ‘CALL OFF’ ACTIVITIES

Activities, which are not normally consistent but however need to be executed on a time to time interval and will form the part of items listed in the SOR.

Sr. No

Activity(basis to quote)

Scope Of Work

1. Data Base Management ( rates to be quoted in

Annexure III)

Some of the activities related to database management require paying for them directly. For instance

Updating & cleaning on a regular basis member masters .

Adhoc statement generation Adhoc queries

Payments will be made on these activities on a call off basis. Records will be annexed to the bills for making claims. Rates for these items are being sought for separately in Annexure III.

2. Account Servicing( rates to be quoted in

Annexure III)

While the general activities are collated to form the monthly management activities, the program would still require ‘Call off’ works to support the program. They have been identified as listed

a. Creative out puts:

Above from what is stated above, all other creative being designed will follow the process as mentioned below.

A brief will be called for BPCL Agency representative will attend post brief detailing,

take copious notes and approach with three acceptable creative routes.

On finalization of the creative route, creative will be finalized and accepted.

List of creative elements have been grouped together for which executing rates are sought from you

Finalized creative will be paid based on SOR. Rates for which have been sought in Annexure -III.

b. Web based

Apart from the standard activities on the web updates we would need do the following activities as per the activities undertaken in the programs:

New applications developments in line with trends in the markets.

Create communities of the Fleet owners. Web contest promotions/campaign Developing micro sites or landing pages and email

coding SMS contests/campaigns Modules for winner generation – customer and territory Online forms – enrolment, profile, contest etc.

Rates to be quoted on man-day basis for the above works, taking into consideration the rolling out ability of each concerned professional.

3. Customer Service The agency will require to do out – bound tele- calling on a case to case basis. Rates for this are sought in Annexure III.

Despite two seats being suggested from past experience, BPCL proposes to seek the rate for an additional seat at the call centre, which if required may be exercised.

4. Mailing and Fulfillment

Sending out of all the communications such as quarterly Petromiles statement, Festive greetings, tier communications, proactive communications thru the relevant mediums print, e-mail, SMS.Rates have been invited in the Annexure III.

5.Managing alliances and Partnership

Inviting and enrolling partners to give offers and promotions to our members for a limited period.

Identify Partners for Burning Petromiles Identify partners for exclusive Promotions and offers

6. Promotions and campaigns

Designing, executing and tracking promotion which would include programs, sale promotion campaigns, festive promotion, members get member, contest and gaming for members including procuring of prizes and shipping them out. However, each promotion would be treated individually. Specifics of Execution would be defined by BPCL under following heads:

Final approval Creative Communications(Outdoors, Web, Print, SMS, Other

media as suited) Prizes and rewards Campaign analysis Any other activity that may be relevant for meeting the

objective of the campaign.Based on the approved concept agency to ensure successful execution of promotional campaigns. (Quotes on a case to case basis)

Annexure II

FINANCE -BID

Scope of Work

No. Heads Unit Rate

1 Data Base ManagementMonthly Fee Inline with the work as detailed in the scope of work (Annexure I ) Point1

Per month

2 Account ServicingMonthly Fee Inline with the work as detailed in the scope of work (Annexure I)Point 2

While quoting above kindly indicate the element wise component of the below listed work considered in building up the above quote.

a. Creative Outputsb. Web Basedc. Promotion and

Campaignd. Mailing and Fulfillmente. Partnership and

alliances

Per month

3 Customer ServicePer Seat basis for the work as detailed in the scope of work (Annexure I)Point 3

Per seat per month

ANNEXURE III

ITEMWISE RATE CARD FOR LOYALTY PROGRAM

Schedule of Rates - "Call off" Activities ( Rates would apply as and when required and used )

  Particulars Quotes/unitA Data Center  

1Minor queries( Logics 5 nos.and below)  

2Major queries( any query above 5 logic)  

3 Adhoc statement  

B Creative  1 Mailers  

   Single page leaflet copy and design  

1.2    Envelope Design  1.3 Brochures copy and design  1.4   Newsletter:    ·       Layout Master design  

 ·       Editorial coordination and copywriting per issue

 

1.5 Business Reply envelope  1.6   Response form  1.7 Poster  

1.8 Loyalty Programme Plastic card design  

1.90   Point statement design  2 Outdoor Design for  

2.1    Hoarding/Banner/Standee  

2.2Hoarding adaptation per proportion  

3 Other Media  

3.1Press Ad design and copy (per ad)  

3.2 Press Ad adaptation: layout adaptation in each

 

3.3New size/ language (per size / language)  

3.4Newspaper supplement advertorial per page

 

CWeb ( PetroBonus and SmartFleet)  

1

All web based works on a manday basis (New applications, web banners both static and flash, elements for Promotional campaign on Web ,emailers, webpages etc.)

 

D Mailing and fullfiment  1 Email  2 SMS  3 Post mails  

4Laser Personalisation( Mail merge)  

5 Label Pasting  6 Insertions  E Partnership and alliances  1 Per partnership  F Customer Service  1 Outbound Telecalling  2 Per additional seat