1
CHAPTER #1: INDUSTRY ANALYSIS
2
1.1: INTRODUCTION............................................................................... INTRODUCTION............................................................................... .........3 1.2: HISTORY/ HISTORY/ BACKGROUND..................................................... BACKGROUND......................................................................3 .................3 1.3: MAJOR PLAYERS......................................................................... PLAYERS......................................................................... .............4 1.4: PEST ANALYSIS.............................................................................. ANALYSIS.............................................................................. ...........5 1.4.1: POLITICAL FACTOR............................................................... FACTOR.............................................................................6 ..............6 1.4.2: ECONOMIC FACTOR............................................................. FACTOR.............................................................................6 ................6 1.4.3: SOCIO-CULTUR SOCIO-CULTURE E FACTOR.......................................................... FACTOR..................................................................7 ........7 1.4.4: TECHNOLOGICA TECHNOLOGICAL L FACTOR..................................................... FACTOR................................................................7 ...........7 1.5: PORTER’S FIVE FORCES MODEL.........................................................9 1.5.1: THREATS...................................................................................................10 1.5.2: POWER OF BUYERS..................................................... BUYERS................................................................................10 ...........................10 1.5.3: POWER OF SUPPLIERS..........................................................................10 1.5.4: THREATS OF SUBSTITUTE.................................................. SUBSTITUTE.................................................. .................10 1.5.5: COMPETITIVE RIVALRY..................................................... RIVALRY......................................................................11 .................11 1.6: STRATEGIC GROUP MAP.........................................................................11 CHAPTER # 2: COMPANY ANALYSIS ANALYSIS 2.1: INTRODUCTION…........................................................................... INTRODUCTION…........................................................................... ..........14 2.2: BACKGROUND.............................................................................. BACKGROUND.............................................................................. ..............15 2.3: SWOT ANALYSIS............................................................................ ANALYSIS............................................................................ ............17 2.4: PLC.................................................................................................................19 2.5: BLC.................................................................................................................19 2.6: BRAND ANALYSIS............................................................... ANALYSIS......................................................................................20 .......................20 CHAPTER # 3: COMPETITORS ANALYSIS ANALYSIS 3.1: ANALYSIS OF MAJOR PLAYERS............................................................23 CHAPTER # 4: FINDINGS 4.1: CUSTOMERS ANALYSIS........................................................... ANALYSIS...........................................................................38 ................38 4.1.1: AIOD............................................................................................................38 4.1.2: REFERANCE REFERANCE GROUP INFLUECNE INFLUECNE MATRIX....................................39 MATRIX....................................39 4.2: PERCEPTUAL MAPPING.............................................................. MAPPING..........................................................................40 ............40 4.3: BCG MATRIX................................................................................. MATRIX................................................................................. ..............43 4.4: MARKETING MARKETING MIX............................................................................. ..........47 4.5: FCB GRID......................................................................................................53 CHAPTER # 5: RECOMANDATION AND CONCLUSION 5.1: RECOMANDAT RECOMANDATION ION AND CONCLUSION...............................................59 CHAPTER # 6: REFERANCES 6.1: REFERANCES REFERANCES AND BIBLIOGRAPH BIBLIOGRAPHY.....................................................61 Y.....................................................61
3
4
1.1:
INTRODUCTION
Petra – rock Petroleum (from Greek Petra – rock and and elation – oil or Latin oleum – oil) or crude oil, sometimes sometimes colloquiall colloquially y called called black gold or "Texas Tea", is a thick, dark brown or greenish liquid liquid.. Petroleum exists in the upper strata of some areas of the Earth Earth's 's crust crust.. It consists of a complex mixture of various hydrocarbons hydrocarbons,, largely of the alkane series, but may vary much in appearance and composition. Petroleum is used mostly, by volume, for producing fuel oil and gasoline (or petrol), petrol), both important " primary energy" energy" sources (IEA (IEA Key World Energy Statistics). Statistics). Petroleum is also the raw material for many chemical products, including solvents solvents,, fertilizers fertilizers,, pesticides pesticides,, and plastics and plastics
1.2:
History / Background
The first oil wells were drilled in China in the 4th century or earlier. They had depth of up to 243 meters and were drilled using bits attached to bamboo poles. The oil was burned to evaporate brine and produce salt salt.. By the 10th century, extensive bamboo pipel pipeline iness connect connected ed oil wells wells with with salt salt spring springs. s. Ancien Ancientt Persian tablets tablets indicate indicate the medicinal and lighting uses of petroleum in the upper echelons of their society. In the 8th century, the streets of the newly-constructed Baghdad were paved with tar , derived from easily-accessible petroleum from natural fields in the region. In the 9th century, century, oil fields fields were exploited exploited in Baku Baku,, Azerbaijan Azerbaijan,, to produce naphtha naphtha.. These fields were described by the geographer geographer Masudi Masudi in the 10th century, and by Marco Polo in the 13th century, who described the output of those wells as hundreds of shiploads. (See also: Timeline of Islamic science and technology .) The modern history of petroleum began in 1846, with the discovery of the process of refining kerosene from coal by Atlan Atlantic tic Canada Canada''s Abraha Abraham m Pineo Gesner . Poland Poland's 's Ignacy Łukasiewicz discovered a means of refining kerosene from the more readily available "rock oil" ("petr-oleum") in 1852 and the first rock oil mine was built in Bobrka,, near Krosno Bobrka near Krosno in southern Poland in the following year. These discoveries rapidly spread around the world, and Meerzoeff Meerzoeff built built the first Russian refinery in the mature oil fields at Baku in 1861. At that time Baku produced about 90% of the world's oil. The battle of Stalingrad was fought over Baku (now the capital of the Azerbaijan Republic).
5
Oil field in California California,, 1938. The first modern oil well was drilled in 1848 by Russian engineer F.N. Semyonov, on the Aspheron Peninsula north-east of Baku of Baku.. The first commercial oil well drilled in North America was in Oil Springs, Ontario Ontario,, Canada in 1858, dug by James Miller Williams. The American petroleum industry began with Edwin Drake's Drake's discovery of oil in 1859, near Titusville, near Titusville, Pennsylvania. Pennsylvania. The industry grew slowly in the 1800s, driven by the demand for kerosene for kerosene and oil lamps. lamps. It became a major national concern in the early part of the 20th century; the introduction of the internal combustion engine provided engine provided a demand that has largely sustained the industry to this this day. day. Earl Early y "loc "local al"" finds finds like like thos thosee in Pennsylvania and Ontario were quickly quickly exhausted, leading to "oil booms" in Texas Texas,, Oklahoma Oklahoma,, and California California.. By 1910, 1910, signif significa icant nt oil fields fields had been been discov discovere ered d in Canada (specifica (specifically, lly, in the province province of Alberta of Alberta), ), the Dutch East Indies (1885, in Sumatra Sumatra), ), Persia (1908, in Masjed Soleiman), Soleiman ), Peru Peru,, Venezuela Venezuela,, and Mexico Mexico,, and were being developed at an industrial level. Even until the mid-(1950s), coal was still the world's foremost fuel, but oil quickly took over. Following the 1973 energy crisis and the 1979 energy crisis, crisis, there was significant media coverage of oil supply levels. This brought to light the concern that oil is a limited resource that will eventually run out, at least as an economically viable energy source. At the time, the most common and popular predictions were always quite dire, and when they did not come true, many dismissed all such discussion. The future of petroleum as a fuel remains somewhat controversial. USA Today news (2004) reports that there are 40 years of petroleum left in the ground. Some would argue that because the total amount of petroleum is finite, the dire predictions of the 1970s have merely been postponed. Others argue that technology will continue to allow for the production of cheap hydrocarbons and that the earth has vast sources of unconventional petroleum reserves in the form of tar sands, sands, bitumen fields and oil shale that will allow for petroleum use to continue in the future, with both the Canadian tar sands and United States shale oil deposits representing potential reserves matching existing liquid petroleum deposits worldwide. Today, about 90% of vehicular vehicular fuel needs are met by oil. Petroleum also makes up 40% of total energy consumption in the United States, but is responsible for only 2% of electricity generation. Petroleum's worth as a portable, dense energy source powering the vast majority of vehicles and as the base of many industrial chemicals makes it one of the world's most important commodities commodities.. Access to it was a major factor in several military conflicts, including World War II and the Persian Gulf War . About 80% of the world's readily accessible reserves are located in the Middle East, East, with 62.5% coming from the Arab 5: Saudi Arabia (12.5%), UAE UAE,, Iraq Iraq,, Qatar Qatar and and Kuwait Kuwait.. The USA has less than 3% 1.3:
Major players 6
The oil industry is often described as having an oligopolistic market structure that is, it is dominated by a small number of big major players, which include Exxon, Mobil, Chevron, BP, and an d Shell. A slump in oil prices in the late 1990’s resulted in heavy cut backs in staff and operating costs in 1998-99 and merges between BP and Amoco and Exxon and Mobil.
1.4: PEST ANALYSIS OF SHELL COMPANY PEST Analysis is a simple but important and widely-used tool that helps you understand understand the big picture picture of the Political, Political, Economic, Economic, Socio-Cult Socio-Cultural ural and Technological Technological environment environment you are operating operating in. PEST is used by business leaders worldwide worldwide to build their vision of the future. OR PEST analysis is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up from: 1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc. 2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc. 3. The The macr macroo-env envir iron onme ment nt e.g. e.g. Poli Politi tical cal (and (and lega legal) l) forc forces es,, Econ Econom omic ic forc forces es,, Sociocultural forces, and Technological forces. These are known as PEST factors.
7
Factors :1.4.1: Political Factors:The political arena has a huge influence upon the regulation of The political businesses, and the spending power of consumers and other businesses.
OR Political factors include government rules and regulations and legal issues and define both formal and informal rules under w hich the firm must operate.
EXAMPLE ::Some political factors that influence of shell are as below:•
Government type and stability
•
Freedom of press, rule of law and levels of bureaucracy and corruption
•
Regulation and de-regulation trends
•
Social and employment legislation
•
Tax policy, and trade and tariff controls
•
Environmental and consumer-protection legislation
•
Likely changes in the political environment
Factors :1.4.2: Economic Factors:-
8
Marketers need to consider the state of a trading economy in thee sh th shor ortt and lo long ng-t -ter erms ms.. Th This is is es espe peci cial ally ly tr true ue wh when en pl plan anni ning ng fo forr in inte tern rnat atio iona nall marketing.
OR Economical factors affect the purchasing power of potential customers and the firm’s cost of capital.
Example:Some economical factors that influence of shell are as below: •
Stage of business cycle
•
Current and project economic growth, inflation and interest rates
•
Unemployment and labor supply
•
Labor costs
•
Levels of disposable income and income distribution
•
Impact of globalization
•
Likely impact of technological or other change on the economy
•
Likely changes in the economic environment
1.4.3: Sociocultural Factors :-
The social and cultural influences on business vary from country to country. It is very important that such factors are considered.
OR Sociocultural factors include the demographic and cu lture aspects of the external micro environment. These factors affect customer needs and the size of potential market.
Example:Some socio cultural factors that influence of shell: •
Population growth rate and age profile
•
Population health, education and social mobility, and attitudes to these
•
Population employment patterns, job market freedom and attitudes to work
•
Press attitudes, public opinion, social attitudes and social taboos
•
Lifestyle choices and attitudes to these
•
Socio-Cultural changes
1.4.4: Technological Factors :-
9
Technology is vital for competitive advantage, and is a major driver of globalization.
OR Technolog Techno logica icall fac factor torss can low lower er bar barrie riers rs to ent entry ry,, red reduce uce min minimu imum m eff effici icient ent production levels, and influence outsourcing decisions.
Example:Some technological factors that influence of shell is as below: •
Impact of emerging technologies
•
Impact of Internet, reduction in communications costs and increased remote working
•
Research & Development activity
•
Impact of technology transfer
KEY POINTS OF THIS ANALYSIS: PEST Analysis is a useful tool for understanding the “big picture” of the environment, in which you are operating, and the opportunities and threats that lie within it. By understanding your environment, you can take advantage of the opportunities and minimize the threats. mnemon monic ic sta standi nding ng for Pol Polit itica ical, l, Eco Econom nomic, ic, Soc Social ial and PEST is a mne Technological.. These headings are used firstly to brain Technological brainstorm storm the charac characteri teristics stics of a country or region and, from this, draw conclusions as to the significant forces of change operating within it. This provides the context within which more detailed planning can take place to take full advantage of the opportunities that present themselves.
10
1.5:
PORTER’S FIVE FORCES MODEL
Introduction:Five Forces Analysis
Analyzing the environment - Five Forces Analysis Five Forces Analysis helps the marketer to contrast a competitive environment. It has similarities simila rities with other tool tools s for environmental environmental audit, such as PEST analysis, analysis, but tends to focus on the single, stand alone, business or SBU (Strategic Business Unit) rather than a single sin gle pro produc ductt or ran range ge of pro produc ducts. ts. For exa exampl mple, e, Del Delll wou would ld ana analys lyse e the market market for Business Computers i.e. one of its SBUs. Five forces analysis looks at five key areas namely the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry.
11
1.5.1: The Threat of Entry:•
Economies of scale e.g. the benefits associated with bulk purchasing.
•
The high or low costs of entry e.g. how much will it cost for the latest technology?
•
•
• •
•
•
Ease of access to distribution channels e.g. Do our competitors have the distribution channels sewn up? Cost advantages not related to the size of the company e.g. personal contacts or knowledge that larger companies do not own or learning curve effects. Will competitors retaliate? Government action e.g. will new laws be introduced that will weaken our competitive position? The Government of that country in which that company is working they fix a high taxes for them to import that oil from out side. How important is differentiation? E.g. The Champagne brand cannot be copied. This desensitizes the influence of the environment.
Buyers:1.5.2: The Power of Buyers:•
•
•
This is high where there a few, large players in a market e.g. the large grocery chains. If there are a large number of undifferentiated, small suppliers e.g. small farming businesses supplying the large grocery chains?
The cost of switching between suppliers is low e.g. from one fleet supplier of trucks to another.
1.5.3: The Power of Suppliers:• •
The power of suppliers tends to be a reversal of the power of buyers. Where the switching costs are high e.g. switching from one software supplier to another.
•
Power is high where the brand is powerful e.g. Cadillac, Pizza Hut, Microsoft.
•
There is a possibility of the supplier integrating forward e.g. Brewers buying bars.
•
Customers are fragmented (not in clusters) so that they have little bargaining power e.g. Gas/Petrol stations in remote places.
Substitutes:1.5.4: The Threat of Substitutes:•
•
•
Where there is produ product-fo ct-for-pro r-product duct substitution substitution e.g. email for fax where ther there e is substitution of need e.g. better toothpaste reduces the need for dentists. Where there is generic substitution (competing for the currency in your pocket) e.g. Video suppliers compete with travel companies. We could always do without e.g. cigarettes.
12
1.5.5: Competitive Rivalry:Rivalry:•
1.6:
This is most likely to be high where entry is likely; there is the threat of substitute products, and suppliers and buyers in the market attempt to control. This is why it is always seen in the center of the diagram.
STRATEGIC GROUP MAP ::-
During constructing a strategic group mapping we can fallow some steps.
Step 1:Identify competitive characteristics that different firms in an industry from one another.
Step 2:Plot firms on a two variables map using pairs of these differentiating characteristics.
Step 3:Assign firms that full in about the same strategy space to the same strategic group.
Step 4:Draw circles around each strategic group, making circles proportional to size of group’s respective share of total industry sale.
13
STRATEGIC GROUP MAPPING
BRAND IMAGE
QUALITY
SHELL TOTAL PSO PS O
CALTAX CASTROL ZIC RIMULA
14
15
2.1: Introduction
to Shell Company
The Royal Dutch shell company is known as the best as one of the ‘seven sisters’ that dominates the oil industry. Developments into chemicals led to the setting up of the shell chemical chemical company company in 1929. As one might expect, its major interests are petrochemicals petrochemicals and deri derive ved d produ product cts. s. One One of the the late later, r, the the liqu liquid id dete deterg rgen ents ts teep teepol ol,, was the the firs firstt petroleum based chemical to be produced in Western Europe in 1942. Their product range range now covers covers severa severall hundre hundred d chemic chemicals als,, largel largely y indust industri rial al organi organics, cs, but also also polyme polymers rs (plast (plastics ics,, resins resins,, synthe synthetic tic rubber rubber). ). A small small but growin growing g area area is specia speciall lly y products, e.g. specially rubbers and plastics. After the difficult period at the beginning of the 1980s, petrochemicals production is much healthier. Major locations are to be found at Carrington, Stan low, shell haven and moss Moran.
16
2.2:
Background to the company and industry
In 1833 Marcus Samuel opened a small shop in London, selling sea shells to Victorian natural history enthusiasts. It soon became a thriving import-export business.
On a visit to the Caspian Sea coast, Marcus’s son recognized a huge opportunity opportunity to export oil for lamps and cookin cooking g to the Far East. He commissioned the first special oil tanker in 1892, and subsequently delivered 4,000 tones of Russian kerosene to Singapore and Bangkok. Meanwhile, the company Royal Dutch had been formed in the Netherlands to develop oil fields in Asia. By 1896 it had its own tanker fleet to compete with the British. Shel Shelll was was form formed ed in 1907 1907 and and is toda today y one of the the worl world’ d’ss larg larges estt mult multin inat atio ional nal businesses businesses,, consisting consisting of more than 2000 companies worldwide. worldwide. Ultimate Ultimate control is vested in two parent companies, the shell transport and trading company, a UK registered company company and the Royal Royal Dutch Dutch petrol petroleum eum company company,, a Dutch Dutch compan company, y, the groups groups activi activiti ties es includ includee oil and gas explor explorati ation, on, produc productio tion, n, refini refining, ng, transp transport ortati ation on and market marketing ing,, chemic chemicals als and other other operat operation ionss in coal coal and metal metal minin mining, g, forest forestry ry and biotechnolo biotechnology. gy. The oil industry industry is often described described as having an oligopolis oligopolistic tic market structure. structure. The company company soon eyed the burgeoning burgeoning American market. market. In 1912, hoping to make in roads in the U.S, Royal Dutch Shell formed the American Gasoline Company, based in Seattle, Washington. The new company goal was to sell gasoline to motorists in the Pacific Northwest and San Francisco Bay areas. On September 16, 1912, the oil tanker S.S Romany arrived at the small port of Richmond Beach, just north of Seattle, carrying over a million gallons of gasoline from Sumatra. The new fuel was promptly pumped ashore into the storage tanks at a brand new water terminal. A few days later, an equally new shell tank car delivered 8,000 gallons of gasoline to its first retail outlet in Chehalis, Washington. The new gasoline, called “shell motor spirit” had a high specific gravity and performed well for hard to start engines of the day. Shell soon gained a loyal following in the northwestern United States. 17
In 1922, the various shell companies around the country merged with union oil company of Delaware, forming the shell union oil company, a holding company, the merger creator a publicly held corporation until 1985, when Royal Dutch Group assumed 100 percent ownership of Shell Union Oil. Today, the company’s yellow shell emblem remains a familiar roadside symbol to motorist’s nation wide.
Executive committee The members of the Executive Committee are also members of the Board of Directors opens in new window. window.
Jeroen van der Veer
Malcolm Brinded
Chief Executive.
Executive Director Exploration & Production.
Rob Routs
Linda Cook
Executive Director Downstream (Oil
Executive Director Gas & Power.
Products & Chemicals). Peter Voser Chief Financial Officer.
18
2.3: SWOT ANALYSIS SWOT analysis is a tool for auditing an organization and its environment. It is the first stage stage of plan planni ning ng and and helps helps mark market eter erss to focus focus on key key issu issues es.. SWOT stands stands for Strengths hs and weaknes weaknesses ses are strength strengths, s, weaknes weaknesses, ses, opportu opportuniti nities, es, and thre threats. ats. Strengt internal factors. Opportunities and threats are external factors.
. In SWOT, strengths and weaknesses are internal factors. For example:
Strength of shell is : ➢
The strength of shell is its retail brand. 19
➢
Shell is found almost all over the world
➢
Shell maintain a standard quality process and procedure
➢
Shell launches new and innovative products or services
Weakness of shell is: is: ➢
The main weakness of shell is its networking. (Means have less site with respect to it competitors). Shell has undifferentiated products with respect to its competitors.
In SWOT, opportunities and threats are external factors. For example:
Opportunities are: are: ➢
Shell launches a new opportunity of LPG.
➢
Shell is developing market such as the Internet.
Threats are: ➢
Main threat to shell is the new companies c ompanies like TOTAL, ADMORE etc
➢
Another main threat is that if government made taxation on shell products
➢
Another threat is that your competitor have supe rior access to channels of distribution
For example: in Pakistan if there is one site of shell then there are four site of PSO (Pakistan state oil). Swot diagram of shell
Strength:
Weakness:
Retail brand
Network (means lack of sites)
Availability
Undifferentiated products
Standard quality process and procedure
20
Opportunity:
Threats:
LPG
New companies (Total, Edmore)
CNG
2.4: The Product Life Cycle (PLC) of shell The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).
In theory it's the same for a product. After a period of development it is introduced or launched into the market; it gains more and more customers as it grows; eventually the market stabilizes and the product becomes mature; then after a period of time the product is overtaken by development and the introduction of superior competitors, it goes into decline and is eventually withdrawn. However, most products fail in the introduction phas phase. e. Ot Othe hers rs hav havee ver very y cy cycl clic ical al ma matu turi rity ty ph phas ases es wh wher eree de decl clin ines es se seee th thee pr prod oduct uct promoted to regain customers.
Strategies for the differing stages of the Product Life Cycle
Introduction Shell has first introduced the petrochemicals in start of twentieth century. Shell create awareness by introduced its new products like shell helix and other shell products. If the product has no or few competitors, a skimming price strategy is employed. Limited numbers of product are available in few channels of distribution.
Growth Competitors are attracted attracted into the market with very similar similar offerings. Products become more profitable and companies form alliances, joint ventures and take each other over. Adverti Adve rtisin sing g spe spend nd is hig high h and foc focuse usess upon building building bra brand. nd. Mar Market ket sha share re ten tends ds to
21
stabilize. Shell products which are at the growth are LPG AND CNG. These two products of shell are its growth because these are newly launched in the market.
Maturity Those products that survive the earlier stages tend to spend longest in this phase. Sales grow at a decrea decreasing sing rate and then stabi stabilize. lize. Producers Producers attem attempt pt to differentiate differentiate products and brands are key to this. Price wars and intense competition occur. At this point the market reaches saturation. Producers begin to leave the market due to poor margins. Promotion becomes more widespread and uses a greater variety of media. The products of shell which are at maturity are shell Helix, Rimula, etc.
Decline At this point there is a downturn in the market. For example more innovative products are introduced or consumer tastes have changed. There is intense price-cutting and many more products are withdrawn from the market. Profits can be improved by reducing marketing spend and cost cutting. Shell decline products are the Shell Super OIL because by the launching of new products like LPG and CNG.
2.6:
BRAND ANALYSIS
Logo In international international ranking this logo come on 84 th number, and the price of this logo is 3048 million US$.
COLOR The exact origins of the Shell red and yellow are hard to define. True, Samuel and Company first shipped kerosene to the Far East in tin containers painted red. But the link, once again, could be with Spain.
22
In 1915, when the Shell Company of California first built service stations, they had to compete against other companies. Bright colors were the solution, but colors that would not offend the Californians. Because of the state’s strong Spanish connections, the red and yellow of Spain were chosen. As with the Pectin, the actual colors have been modified over the years, most notably in 1995 when a bright, fresh and very consumer friendly new Shell Red and Shell Yellow were introduced to launch Shell’s new retail visual identity. The Shell emblem - or Pectin - remains one of the greatest brand symbols in the 21st Century.
23
24
3.1:
COMPETITORS ANALYSIS
Shell:-
Shell is a leading supplier o f motor oils to all kinds of customer.
Put More Miles in your Tank with New Shell Petrol As the cost of driving increases, so too does the need to find ways to make your money go further. New Shell Petrol has be en tested and specially designed to start working from the very first tank- saving you money. So if you like the idea of p utting more miles in your tank, make sure your next fill-up is at Shell.
The Story behind our New Petrol At Shell we are constantly striving to create the best fuels for our customers. We have invested heavily in leading edge research and development. We're working hard to give you better fuels which will take you further. We've conducted a range of laboratory tests, which have shown that our Better Mileage formula can help moving parts within your engine run more easily which effectively burns less energy - and a more efficient engine, means improved fuel economy. Testing something in laboratory conditions is one thing, but we need to be sure that our formulation lives up to the rigorous conditions you face e very day on the road. We have proven through
25
extensive car fleet tests, that fuels treated with our Better Mileage formula can deliver enhanced fuel economy when compared to untreated fuels. So we have taken this knowledge to develop our latest generation of fuels which are designed to offer better mileage than previous Shell formulations.
How it Works with your Engine Drawing on our extensive experience in developing fuel, our team carefully assessed all the potential sources of engine inefficiency which could impact on fuel economy. We looked into the heart of the engine and developed a complete petrol formula designed not only to help keep your engine clean but also to reduce friction, improving combustion and the overall efficiency of the engine. For our fleet tests, we took a wide range of popular cars and selected pairs of the same model, one running on untreated fuel, the other using Better Mileage formula. From the city to the open road, we tested these cars simultaneously for 10,000 miles, monitoring them continuously. At the end of the tests we were able to see that the fleet which expe rienced greater fuel economy was that using our Better Mileage formula.
Royal Club Launched for Outstanding Dealers
printable version
The Shell Pakistan team took the initiative in 2004 to start an exclusive Royal Cl ub for our outstanding dealers. Such a program is essential to make sure that our top dealers are recognized and rewarded for their commitment, dedication and excellent performance. At Shell we know that our dealers are our business partners. For many of our dealers, the association with Shell is an old one. There are some that are 2nd or 3rd generation dealers, continuing a legacy set by their elders, and we as a company value the wealth of experience we have with us. For every standard we develop, we rely on them to implement. For every liter we commit to, we rely on them to sell. Our customer perceptions depend on the experience they have at our retail sites. It is this realization that has lead to the e stablishment of the Shell Royal Club, which was launched in August 2004 as a top item in our Retail business agenda. The aim of this Club is to recognize and reward the top dealers in our network in appreciation of the contribution that they have made to our business. Since the launch of the Royal Club, our Dealer team has demonstrated a passion to drive our business to new heights. On 8th of April 2005, we held the first official Gala eve nt of the Shell Royal Club in Lahore. The hall was decorated in royal blues and velvets, keeping with the exotic Arabic theme. On this evening, the Royal Club commitment came full circle, with 93 dealers qualifying as members of this exclusive Club. Each of the winners had been selected on the basis of high scores on RCVP, Mystery Motorist and TM evaluations conducted on site, a testament to their commitment to the business. All 93 winners will be rewarded Royal Club membership together with spe cial banners for display on
26
their sites. There are also a host of fantastic prizes for the top tier, with the top 20 traveling to Kuala Lumpur, Malaysia, on a specially arranged Learning Tour. Prizes for the next 30 winners included premium wristwatches, television sets and DVD players, as well as a plaque. In addition, all 93 winners were awarded Shell Royal Club membership cards, entitling them to fantastic deals with a telecom, banking and fast-food company. The night ended on a high note with a memorable skit performance by famous Pakistani TV artists acting out segments of a popular TV show. A concert by a famous local singer had participants dancing the night away
The products of Shell Company are as follows
Shell Helix Ultra:Maximum engine cleansing for performance motoring Refreshing and protecting your car
Shell Helix Ultra gives you maximum engine clean-up with special cleaning agents that actively cleanse the engine surfaces and continuously lock away harmful dirt and deposits. It has remarkable long-term oxidation stability, which gives your car’s engine extended wear protection. Shell Helix Ultra minimizes engine noise, and conditions and protects engines from the extra stresses of driving in modern start–stop traffic conditions. Shell Helix Ultra is for performance motoring, and it rejuvenates and refreshes your engine. Shell Helix Ultra is the only motor oil recommended by Ferrari.
Shell Helix plus:-
27
Exceptional engine cleansing in all driving conditions Refreshing and protecting your car
Shell Helix Plus gives you exceptional engine clean-up with special cleaning agents that actively cleanse the engine surfaces and continuously lock away harmful dirt and deposits. In addition to offering superior engine protection for all driving conditions, Shell Helix Plus rejuvenates and refreshes your engine.
Shell Helix Super:Superior engine cleansing Refreshing and protecting your car
Shell Helix Super gives you superior engine clean-up action with special cleaning agents that actively cleanse the engine surfaces and continuously lock away harmful dirt and deposits. In addition to offering superior engine protection for everyday motoring, whatever your car, Shell Helix Super rejuvenates and refreshes your engine.
Shell Helix
28
Shell Helix Super Shell Helix Super is one of the world's most popular oils and one of the best mineral oils available for small to mid range vehicles. It has remarkable clean-up power that refreshes engines and helps to improve wear protection. It is the top choice for urban and city drivers who wish to minimize engine noise and protect p rotect their vehicles from the extra stresses caused by today's stop-start traffic environments. Engines cleansed and protected with Shell Helix Super have that just serviced feeling and experience a smoother and quieter drive.
Lubricants Shell Lubricants are one of the global leaders in finished lubricants selling 13,000
tonnes of lubricants a day to customers in approximately 120 countries and operating an extensive network of base oil and lubricant blending plants. Shell Lubricants is organised around customers in five main lines of business: Consumer, Fast Lube, Industry, Supply Chain, and Transport. For more information see Shell Lubricants. Lubricants. printable version
Lubricants:-
Filling your engine with the appropriate motor oil can help protect your engine from wear and tear, can reduce carbon emissions and can save you money by
29
delivering fuel efficiency.
What is the right oil for your engine? Oil grading, for example 20W50 or 10W40, describes how viscous, or thin, the oil will be at high and low temperatures. The lower the numbers are the thinner the oil will be. The letter W stands for winter, and it’s this value that most affects engine efficiency. Thinner oils are more efficient because they flow faster in the engine and create less friction. This means less power is used to pump oil around the engine and so less fuel is used. Therefore, simply moving from a 20W50 to 10W40 oil could help deliver fuel economy. Check the correct viscosity of motor oil for your car in your owner’s manual, a s using an inappropriately low viscosity grade could damage your engine.
Shell motor oil development Because we develop our own differentiated fuels and lubricants we look at the vehicle as a whole – from engine to rear axle - rather than specific components. By taking this approach, Shell lubricants combined could deliver as much as a 6% improvement in overall vehicle efficiency*. We also test specific formulations under the most demanding conditions, on track with the Ferrari Formula One team. team. The results of this high stress environment can then be applied to fuel economy improvements in our Shell Helix Ultra and Plus developments for road cars.
Refreshed and protected with Shell Helix Over time, motor oils degrade, and carbon deposits form a sludge that builds up in your engine damaging it and reducing your car’s efficiency. Shell Helix motor oils contain special cleaning agents that help to actively lock away this harmful sludge and condition your car’s engine. So it’s not just protected but rejuvenated, revitalized and refreshed. Then it keeps on reviving and refreshing, right up to your next oil change. ac tively locks way harmful sludge [link to Shell XXXX - See how Shell Helix helps to actively Helix content package – engine cleansing page] o ils [link to main page of Shell Helix XXXX - Learn more about Shell Helix motor oils content package]
If you need more advice in choosing the right oil for your vehicle, check your owner’s 30
manual or speak to your vehicle manufacturer, who can advise on recommended lubricants. * Substantiated by an independent paper by General Motors titled "Fuel Economy Improvements in EPA and Road Tests with Engine Oil and Rear Axle Lubricant Viscosity Reduction" by Goodwin and Havilland; Fuels and Lubricants Dept. General Motors Research Labs.
Shell Fuel Stretch Lubricants - Fuel Economy
printable version
Consider this, in a typical diesel truck engine up to 60% of an engine’s fuel energy is lost through heat exhaust and engine friction. As only as little as 40% of the energy created within each engine is available to fight the man many y othe otherr fact factors ors with within in a movi moving ng vehi vehicle: cle: aer aerodyn odynamic amic drag, rolling resistance, drive train friction, accessories operation and inertial forces.
All of these things affect your fuel economy and can vary widely depending upon driving speed, truck weight, terrain, driver behavior, wind speed & angle, and road conditions. It all sou sounds nds rat rather her com compli plicat cated, ed, does doesn’t n’t it it?? Ther Th eree is a si simp mple lerr wa way y to im impr prov ovee fu fuel el economy. The ri right ght lub lubric ricant antss can hav havee a si signi gnific ficant ant effect on fuel economy and consequently on your bottom line. The positive effe ef fect ct th that at Sh Shel elll Fu Fuel el St Stre retc tch h lu lubr bric icant antss ca can n ha have ve on yo your ur bu busi sine ness ss is supported by evidence from real world customer experience and Shell’s state of-the-art testing programmed.
The science and the savings When you choose the right lubricants, you can reduce drive train friction, delivering a positive effect on your fuel economy. This fuel efficiency is achieved through a combination of lower viscosity for lower viscous drag and friction modifying additives that reduce friction between the sliding metal surfaces in the engine and drive train.
31
Independent studies and customer experience Reputable organizations from around the world as well as leading transport companies confirm the role of lubricants to help reduce fuel consumption. The UK Department for Transport’s Energy Best Practice Programmed has this to say about lubricants, fuel consumption, and reduced operating costs,
“Synthetic lubricants with their lower viscosity, offer some fuel-saving potential when used in the drive axle and transmission. Since these oils are drained less frequently you need to use a smaller total quantity.” From the U.S.Transportation Research Record,
“A number of recent studies have examined fuel economy lubricants for trucks and, ..., suggest that total possible fuel savings, ..., could be as high as 5% using low friction engine lubricants and 4% using low friction transmission lubricants.”
Mercedes-Benz recognizes the benefits of fuel economy lubricants and in their service bulletin states,” With low viscosity oils . . . fuel savings are to be expected.” ex pected.” And, Mercedes has made RIMULA®Ultra 5W-30 the exclusive first fill oil for their entire flagship Actros trucks manufactured in Europe. Additionally, Mercedes believes so strongly in Shell and our products they named us their “2004 Supplier of the Year.” Mercedes isn’t the only company that has seen a difference from working with Shell. The Shell Fuel Stretch lubricants have made quite an impression on fleet & maintenance managers from companies just like yours. Italy's Rocco Transport Co. strongly believes in Shell products. "Controlling our fuel costs is more important today than ever. Therefore, we use only Shell RIMULA® Ultra 5W- 30, Shell Spirax ASX and Shell Spirax GSX in our fleet. This is, for us, the easiest and most effective way to save fuel."
32
Diebel Speditions from Germany also experiences the benefits of Shell products. “We have to cost optimize our o ur operation at all times. To reduce fuel consumption, we use only Shell Rimula Ultra 5W-30 in all our 300 trucks. For us, it’s a simple and effective way to con trol operation costs.”
The Shell Difference Shell Lubricants has spent countless hours developing fuel economy products that can lower fuel costs and deliver excellent wear protection. Over the last 8 years Shell customers have benefited from demonstrated fuel savings of 2- 3% from the engine oil alone. When using all of the Shell Fuel Stretch lubricants, the savings really add up, as demonstrated in the tables below. As a matter of fact, for many truck makes, Shell RIMULA® Ultra and our synthetic Spirax gear and axle oils allow the extension of oil drain intervals. So you can gain additional savings in both volume of lubricant purchased and maintenance costs. Shell has invested in a state-of-the-art laboratory facility that allows high accurac accu racy y fue fuell econ economy omy tes testin ting g of com comple plete te dri drive ve tra trains ins und under er sim simula ulated ted driving cycles. Using this facility Shell has demonstrated the fuel economy benefits of Fuel Stretch lubricants. In addition, Shell has run a number of controlled customer trials that have statistically proven the benefits operators can achieve through switching to Shell Fuel Stretch lubricants. The chart below illustrates the results of testing conducted in a variety of Mercedes-Benz and Volvo engines in both bus fleets and haulage situations. You can see the fuel savings when RIMULA Ultra 5W-30 is compared to conventional 15W- 40 and 20W- 40 oils. Experience the difference that Shell Fuel Stretch lubricants can make. For Fleets Engine Oil
Gear Oil
Axle Oil
Grease
RIMULA Ultra 5W30
SPIRAX GSX
SPIRAX ASX
RETINAX LX
33
Fuel Savings* 5%
Cost Savings 1,500 €
RIMULA Ultra10W40
SPIRAX GSX
SPIRAX ASX
RETINAX LX
4%
1,200 €
RIMULA Signia 10W-40
SPIRAX GSX
SPIRAX ASX
RETINAX LX
4%
1,200 €
For Bus and Coach Engine Oil
Automatic Transmission Oil
Axle Oi Oil
Grease
RIMULA Ultra 5W-30
DONAX TX
SPIRAX ASX
RETINAX LX
4-5%
RIMULA Ultra10W-40
DONAX TX
SPIRAX ASX
RETINAX LX
3-4%
RIMULA Signia 10W-40
DONAX TX
SPIRAX ASX
RETINAX LX
2-3%
Fuel Savings*
Cost Savings 1,2001,500 € 900-1,200 € 600-900 €
* possible fuel savings when compared with 15W- 40 engine oils and GL-4 90 or GL-5 85W 140 gear and axle oils. ** assuming 100,000km per year with a fuel consumption of 30 litres/100km.
.
Caltex
For almost three-quarters of a century Caltex has been manufacturing and marketing quality lubricants on a global scale. In today's highly complex and competitive market, a new focus and commitment is required to meet our customers' demands for superior products, dedicated service and efficient global distribution networks. The new Caltex Caltex Lubrica Lubricants nts organi organizat zation ion is perfec perfectl tly y positi positioned oned to delive deliverr on our Lubricants Brand promise of "Quality and Protection". This promise is underpinned by our core Brand values of "Quality, Professionalism, Service and Efficiency". The combined resources and technology of Caltex and its parent companies, Chevron and Texaco, Texaco, produce produce a powerf powerful ul global global Lubric Lubricant antss team team with with a huge huge compet competiti itive ve 34
advantage. Our knowledge of local business environments and our broad experience of operating in a wide array of countries coun tries provide local know-how on a global scale. Our top-selling products include: Passenger Car Motor Oils Heavy-Duty Diesel Engine Oils Motorcycle Oils Specialities & Greases Xpress Lube
Havoline Caltex Havoline quality motor oils combat the extreme demands of modern motoring to provide outstanding engine protection and perfor performan mance. ce. Behind Behind every every drop drop of premiu premium m Caltex Caltex Havoli Havoline ne products is a concept called "Proof of Performance". This means Caltex is committed to ensuring that our customers anywhere in the world can purchase the same quality of motor oils right-offthe-shelf that champion racing drivers use in their racing cars. Caltex Havoline comes in different versions each designed to help you get the most out of your engine: •
Havoline Energy
•
Havoline Fully Synthetic
•
Havoline Semi-Synthetic
•
Havoline Formula
•
Havoline Motor Oil
Delo Introduced in 1935 as the first commercially available detergent-type dies diesel el engin enginee oil, oil, Calt Caltex ex Delo Delo is firm firmly ly esta establ blis ishe hed d toda today y as the the worldwide benchmark for reliability and unsurpassed performance for all all type typess of dies diesel el engi engine nes. s. The The foll follow owin ing g Calt Caltex ex Delo Delo line line is continu continuous ously ly re-eva re-evalua luated ted and upgrad upgraded ed to meet meet the increa increasin singly gly severe lubrication requirements of current and future en gine designs: •
Caltex Delo® 400 Multigrade
•
Caltex Delo® CXJ Multigrade
•
Caltex Delo® XLD Multigrade
•
Caltex Delo® SHP Multigrade
•
Caltex Delo® HDD
•
Caltex Delo® 500 Multigrade 35
•
Caltex Delo® 350 Multigrade
•
Caltex Delo® 340 Multigrade
•
Caltex Delo® 320
•
Caltex Delo® 300
Revtex The Caltex Revtex 2T and 4T ranges of motorcycle oils provide the right choice of lubricating oil for every kind of motorcycle engine, from the latest high performance machines to the smallest motor scooters. Our two scientifically advanced formulas are extensively tested for reliability and performance in different terrain and weather conditions all over the world: •
Caltex Revtex 4T
•
Caltex Revtex 2T
Extended life coolants and power CLEAN Caltex Extended Life Coolants Caltex Extended Life Coolants can "take the heat" in the hostile environment of engine cooling systems, to save you both time and money. Based on revolutionary new Carboxylate Technology, they provide extended coolant life while providing unsurpassed protection for radiator and cooling systems, whether it's hot or cold.
Caltex Extended Life Coolants deplete slowly, extending coolant life and eliminating the need for Supplementary Coolant Additives (SCAs) and frequent testing. They also act only when corrosion protection is needed and do not produce "green goo", silicate deposits, hard water scale or abrasive dissolved solids.
Our Coolant product line includes •
Caltex Extended Life Coolant
•
Caltex Extended Life Coolant (N)
•
Caltex Extended Life Coolant Pre-Mixed 50:50
•
Caltex Extended Life Coolant (N) Pre-Mixed 50:50
•
Caltex XL Corrosion Inhibitor Concentrate
•
Caltex XL Corrosion Inhibitor
Caltex Power CLEAN Fuel System Treatment Improv Improvee your your engine engine's 's perfor performan mance ce with with Caltex Caltex Power Power CLEAN CLEAN fuel fuel syste system m treatment. This product has an exclusive formula that provides a burst of cleaning 36
power while you drive for proven clean-up of fuel injectors, carburetors and intake valves. The specia speciall techno technolog logy y used used in Caltex Caltex Power Power CLEAN CLEAN also also minimi minimizes zes combus combusti tion on chamber deposits. With just one treatment, it cleans your engine while you drive and restores lost power and performance, lowers emissions, reduces octane requirement and improves driveability for up to 5000 kilometers.
PSO
Transaction Profile The Government Government of Pakistan (“GOP”) (“GOP”) holds approximatel approximately y 54% stake in Pakistan Pakistan State Oil Company Limited (“PSO”), including both direct holdings of the Federal Government and indirect holdings through GOP owned institutions. The GOP is in the advanced stages of divesting 51% of the in PSO to a strategic investor. For information on PSO please click here Sale Process The Priva Privatiz tizati ation on Commi Commissi ssion on has appoin appointed ted J.P. J.P. Morgan Morgan as the Financ Financial ial Advis Advisor or for the privatization of PSO. The last date for submission of Statement of Qualifications by all interested parties was April 15, 2005.
PAKISTAN STATE OIL COMPANY LIMITED
37
Pakistan State Oil (PSO) is the oil market leader in Pakistan having 73% share of Black Oil market and around 59% share of White Oil market. It is engaged in import, storage, distributi distribution on and marketing marketing of various various petroleum petroleum products, products, including including Mogas, Mogas, HSD, Fuel Oil, Jet Fuel, LDO, SKO, petro-chemicals, LPG and CNG. This blue chip company, rated as 'AAA' by PACRA is the the winner of “KSE Top Companies Award” and a member of World Economic Forum, It has recently won prestigious AIOU-Commonwealth of Learning (Vancouver , Canada) for "Strategic Leadership" and "Professional Excellence". The company has been a popular topic of case studies in Pakistan and abroad based on its radical corporate transformation over the last few years. In its present form, PSO was formed on December 30th, 1976 through reorganization plan implemented by the Government of Pakistan pursuant to Section 15 of Marketing of Petroleum Products (Federal Control) Act 1974 and Section 8 of the ESSO undertakings (Vesting) Act 1976. Under the plan, State Oil Company Limited, a private company wholly owned by the Federal Government, in which ESSO undertakings were vested on 15th 15th Septem September ber 1976, 1976, took took over over the entire entire underta undertakin kings gs of Pakist Pakistan an Nation National al Oils Oils Limited and Premier Oil Company Limited at the date of transfer. The company was later converted into a new public company and its name was changed to Pakistan State Oil Company Limited. Limited. The amalgamation amalgamation scheme did not involve any acquisiti acquisition on of shares from private shareholders of Pakistan National Oils Limited and Premier Oil Company Limited. EXCELLENCE IN CUSTOMER SERVICE
PSO serves a wide range of customers throughout Pakistan, including retail, industrial, aviati aviation, on, marine marine and governm government ent/de /defen fence ce sector sectors. s. Profes Professio sional nalss at PSO PSO strive strive for providing unmatched and diverse services to the customers in line with best international practices. PSO’s state-of-the-art New Vision retail outlets are equipped with the most modern facilities, facilities, including including auto car wash, electronic electronic dispensing units, convenience stores, business centers, internet facilities and Easy Payment Centres for payment of utility and Citibank credit card bills. PSO has launched Green XL plus Diesel, containing 38
Diesel Fuel Additive, to deliver high value to customers at no additional cost in terms of improved engine performance, fuel economy and reduced noise and air pollution. The Quick Oil Lube Vans introduced by PSO, provide the lube change facilities at customers’ doorsteps. 21 ISO 9000 certified Mobile Quality Testing Units ensure top of the line quality of products and services. As innovative customer service initiatives, PSO has launched Loyalty Card, Corporate Card, Fleet Card and Prepaid Card in addition to collab collabora orativ tivee arrang arrangeme ement nt with with variou variouss banks banks offeri offering ng 0% servic servicee charge charge on use of Citibank’s Visa and Master cards, and Union Bank’s AMEX card for fueling at PSO retail outlets. For effici efficient ent handli handling ng of custom customer er compla complaint ints, s, querie queriess and sugges suggesti tions ons,, PSO PSO has developed 24-hour Customer Service Center, furbished with a toll free telephone number (0800-03000) and state-of-the-art Customer Relationship Management (CRM) module. An attractive and comprehensive PSO website (www.psocl.com) is available as a source of PSO-related news and information.
39
40
4.1.1:
CUSTOMERS ANALYSIS
“
SEGMENTS
Tourism
Production
Entertainment
Defense
Games
FRAMEWORK OF SHELL COMPANY”
NEEDS
INTREST
Student Professional Doctors Teacher Business Man Professional
Going to school Going to office Tourism Traveling Getting output Backup of light
Parents Friends Family
Age: 16-25, 25-50. Income: 1000-5000, 15000-50000
Friends People
Age: 25-50, 50-75. Income: 15000-40000, 40000-100000.
Airlines
Students Professionals Business Man
Tours Meeting Visits
Friends People Parents
Age: 15-25, 25-75. Income: 15000-50000, 50000-100000.
Military
Army Air Force Navy
Search their boundary lines
Chief Head
Age: 20-30, 30-60. Income: 10000-20000, 20000-50000.
Car Racing Bike Racing
Chatting Music Dangerous stunts
Friends People
Age: 20-30, 30-45. Income: 10000-25000, 250000-100000.
Transportation
Industry
Sports
41
OPINION
DEMOGRAPHY
ACTIVITY
4.1.2: REFRENCE GROUP INFLUENCE MATRIX
PRIVATE
PUBLIC
SHELL NECESSITY
LUXURY
EXPLANATION In this matrix we can place SHELL as a public necessity because at that time petroleum industry is one of the big industry of the world, and shell is one of the leading company in petroleum industry.We place this as a public necessity because every person has its own choice that they use Petrol, Dissel, CNG and 42
LPG. In Pakistan there are three kinds of classes for people. High class, Middle class and poor class.The people of high class use Petrol, they can afford petrol. Middle class people use petrol as well as dissel, and Low class people use Dissel as well as CNG.
4.2 : PERCEPTUAL MAPPING 1 ST MAP CALTEX ZIC PSO TOTAL SHELL PRIC 0 10 10 BRAND 0 E
EXPLANATION:43
In this Map we plot Price along X-axis, Brand plot along Y-axis. In this map we give numbers of those companies due to its price and its brand efficiency. According to my opinion SHELL is more efficient as c ompare to other companies in this way we give this company high weighted / numbers.
2nd MAP
CALTEX ZIC PSO TOTAL SHELL PURITY
100
THICKNESS
0
100
0
EXPLANATION:In this map we can plot thickness along X-axis, purity can plot along Yaxis. In this map we can comparison of all those companies related to petroleum industry. According to this PSO give a high marks because the petrol of PSO is thick as well as pure. Shell comes on number 2nd because this is not much effective as compare to PSO. 44
45
3rd MAP CALTEX ZIC PSO TOTAL SHELL
100
PRICE
100
0 AVAILABILITY
EXPALNATION:In this map we plot price along X-axis, availability plot along Y-axis. In this map we can comparison between all the petroleum companies, due to its availability According to this comparison the availability of SHELL is high. So in this way we can give this high marks.
46
4 th MAP CALTEX ZIC PSO TOTAL SHELL SERVICE
100
CLEANLINESS
100
0
EXPLANATION:In this map we plot cleanliness along X-axis, service plot along Y-axis. In this map we can comparison between the services of all the petroleum companies. According to this the best service provider is PSO. Shell comes on 2nd number in this way PSO gain high marks.
47
5th MAP CALTEX PSO SHELL ZIC TOTAL
100
AVAILABILITY
0
100
0 ADVERTISEMENT
EXPLANATION:In this map we can plot availability along X-axis, advertisement along Yaxis. In this map we can comparison between the petroleum companies due to its advertisement. According to this the advertisement of SHELL is so high in this way we high marks of shell.
4.3:
BCG Matrix
48
Shell Attributes
Weight age
Marks
Total
Smell
.2
4
.8
Thickness
.2
4
.8
Purity
.2
4
.8
Availability
.2
4
.8
Price
.2
3
.6 3.8
Total Attributes
Weight age
Marks
Total
Smell
.2
3
.6
Thickness
.2
3
.6
Purity
.2
3
.6
Availability
.2
3
.6
Price
.2
3
.6 3.0
PSO Attributes
Weight age
Marks
Total
Smell
.2
3
.6
Thickness
.2
4
.8
Purity
.2
3
.6
Availability
.2
3
.6
Price
.2
3
.6 3.2
Caltex 49
Attributes
Weight age
Marks
Total
Smell
.2
3
.6
Thickness
.2
3
.6
Purity
.2
3
.6
Availability
.2
2
.4
Price
.2
3
.6 2.8
“
MATRIX OF PETROLEUM INDUSTRY”
SHELL PSO TOTAL
CALTEX
4.4: Marketing Mix The marketing mix is probably the most famous phrase in marketing. The elements are the marketing 'tactics'. Also known as the 'four Ps', Ps', the marketing mix elements are price, place, product, and promotion.
50
Price The prices of the oil companies in Pakistan is determined by the Pakistan government and that is now a days about 57.77 petrol and 38.56 of diesel it is accepted in all the cities of the country no one have their own prices of selling oil on their on rates. The oil price of all companies are same but their prices of lubricant are different they are according to them for example The price of the shell lubricant lubricant is higher then any other oil company company like caltex caltex have high higher er pric prices es of lubr lubric ican antt then then any othe otherr oil oil comp compan any y so ever every y company have their own prices of lubricant.
Places A channel of distribution comprises a set of institutions which perform all of the activities utilized to move a product and its title from production to consumption. Bucklin - Theory of Distribution Channel Structure (1966) Another element of Neil H.Borden's Marketing Mix is Place Place.. Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer.
51
The oil comp companies anies have the stations stations to suppl supply y the oil to the people so like PSO company it have so many stations in our country as compared to any other oil company but the SHELL compan com pany y als also o hav have e sta statio tions ns in dif differ ferent ent cou countr ntries ies but not man many y as PSO and the other companies like CALTEX, TOTAL, ATTOCK OIL REFIENRY have not to much stations to supply the people needs.
PRODUCTS All companies have their own products of oil like shell, Caltex, Pso, Total etc
Shell Shell Helix Ultra Maximum engine cleansing for performance motoring Refreshing and protecting your car
Shell Helix Ultra gives you maximum engine clean-up with special clean cleanin ing g agent agentss that that acti active vely ly clea cleans nsee the the engi engine ne surf surfac aces es and and continuously lock away harmful dirt and deposits. It has remarkable long-term oxidation stability, which gives your car’s engine extended wear wear protec protectio tion. n. Shell Shell Helix Helix Ultra Ultra minimi minimizes zes engine engine noise, noise, and conditions conditions and protects protects engines from the extra stresses stresses of driving driving in mode modern rn star start– t–st stop op traf traffi ficc condi conditi tion ons. s. Shel Shelll Heli Helix x Ultr Ultraa is for for performance motoring, and it rejuvenates and refreshes your engine. Shell Helix Ultra is the only motor oil recommended by Ferrari.
Shell Helix plus Exceptional engine cleansing in all driving conditions Refreshing and protecting your car
Shell Helix Plus gives you exceptional exceptional engine clean-up clean-up with special special clean cleanin ing g agent agentss that that acti active vely ly clea cleans nsee the the engi engine ne surf surfac aces es and and contin continuous uously ly lock lock away harmful harmful dirt dirt and deposit deposits. s. In additio addition n to offering superior engine protection for all driving conditions, Shell Helix Plus rejuvenates and refreshes your engine.
Shell Helix Super Superior engine cleansing Refreshing and protecting your car
52
Shell Helix Super gives you superior engine clean-up action with special cleaning agents that actively cleanse the engine surfaces and continuously lock away harmful dirt and deposit deposits. s. In additio addition n to offeri offering ng superi superior or engine engine protec protectio tion n for everyd everyday ay motori motoring, ng, whatever your car, Shell Helix Super rejuvenates and refreshes your engine.
Shell Helix
Shell Helix Super Shel Shelll Heli Helix x Supe Superr is one one of the the worl world' d'ss most most pop popul ular ar oils oils and one one of the the best best miner mineral al oils oils available for small to mid range vehicles. It has remarkable clean-up power that refreshes engines and helps to improve wear protection. It is the top choice for urban and city drivers who wish to minimize engine noise and protect their vehicles from the extra stresses caused by today's stop-start stop-start traffic traffic environment environments. s. Engines Engines cleansed cleansed and protected with Shell Helix Super have that just servic serviced ed feelin feeling g and experie experience nce a smooth smoother er and quieter drive. 53
Caltex The products of caltex are as follows
Havoline Caltex Havoline quality motor oils combat the extreme demands of modern motoring to provide outstanding engine protection and perfor performan mance. ce. Behind Behind every every drop drop of premiu premium m Caltex Caltex Havoli Havoline ne products is a concept called "Proof of Performance". This means Caltex is committed to ensuring that our customers anywhere in the world can purchase the same quality of motor oils right-offthe-shelf that champion racing drivers use in their racing cars. Caltex Havoline comes in different versions each designed to help you get the most out of your engine: •
Havoline Energy
•
Havoline Fully Synthetic
•
Havoline Semi-Synthetic
•
Havoline Formula
•
Havoline Motor Oil
Delo Introduced in 1935 as the first commercially available detergent-type diesel diesel engine engine oil, oil, Caltex Caltex Delo Delo is firml firmly y establ establish ished ed today today as the worldwide benchmark for reliability and unsurpassed performance for all types of diesel engines. The following Caltex Delo line is continu continuous ously ly re-eval re-evaluat uated ed and upgraded upgraded to meet meet the increa increasin singly gly severe lubrication requirements of current and future en gine designs: •
Caltex Delo® 400 Multigrade
•
Caltex Delo® CXJ Multigrade
•
Caltex Delo® XLD Multigrade
•
Caltex Delo® SHP Multigrade
•
Caltex Delo® HDD
•
Caltex Delo® 500 Multigrade
•
Caltex Delo® 350 Multigrade
•
Caltex Delo® 340 Multigrade
•
Caltex Delo® 320
•
Caltex Delo® 300
Revtex The Caltex Revtex 2T and 4T ranges of motorcycle oils provide the right choice of lubricating oil for every kind of motorcycle engine, from from the latest latest high high perfor performan mance ce machin machines es to the smalle smallest st motor motor 54
scooters. Our two scientifically advanced formulas are extensively tested for reliability and performance in different terrain and weather conditions all over the world: •
Caltex Revtex 4T
•
Caltex Revtex 2T
PSO
All companies have their own products
Promotions Another one of the 4P's is 'promotion'. This includes all of the tools available to the market mar keter er for 'ma 'marke rketi ting ng com commun municat ication ion'.'. As wit with h Nei Neill H.B H.Bord orden' en'ss mar market keting ing mix mix,, marketing communications has its own 'promotions mix.' Think of it like a cake mix, the basic ingredients are always the same. However if you vary the amounts of one of the ingredients, the final outcome is different. It is the same with promotions. You can 55
'integrate' different aspects of the promotions mix to deliver a unique campaign. The elements of the promotions mix are: 1. Pe Pers rson onal al Sell Sellin ing g
2. Sales Promotion 3. Pu Publ blic ic Rel Relat atio ions ns 4. Adver erttisi sing ng
The Promotions Mix Let us look at the individual components of the promotions mix in more detail. Remember all of the elements are 'integrated' to form a specific communications campaign.
1. Personal selling Personal Selling is an effective way to manage personal customer relationships. The sales person acts on behalf of the organization. They tend to be well trained in the approaches and techniques of personal selling. However sales people are very expensive and should only be used where there is a genuine return on investment for example when the customer go to shell petrol stations they deals them in a good way they are in well dressed talk nicely with the customer.
2. Sales 2. Sales Promotion Sales pro Sales promot motion ion ten tends ds to be tho though ughtt of as bei being ng all promotio promotions ns apar apartt fr from om advertising, personal selling, and public relations. For example the BOGOF promotion or Buy One Get One Free like shell they opened the scheme to get the 10 liters oil and win thee oi th oill of th thee wh whol olee ye year ar.. Ot Othe hers rs in incl clud udee co coup upon onin ing, g, mo mone neyy-of offf pr prom omot otio ions ns,, competitions, free accessories (such as get the lubricant and get the oil free) and so on. 56
Each sal Each sales es pro promot motion ion sho should uld be car carefu efully lly costed costed and com compar pared ed wit with h the nex nextt bes bestt alternative.
3. Public 3. Public Relations (PR) Public Relations is defined as 'the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and its publics' (Institute of Public Relations). It is relatively cheap, but certainly not cheap. Successful strategies tend to be long-term and plan for all eventualities. When the customer goes to the shell station they first clear the mirrors and they are well dressed and talk in a nice manner.
4. Advertising Advertising Adverti Adver tisi sing ng is a 'p 'pai aid d fo for' r' co comm mmuni unicat catio ion. n. It is us used ed to de devel velop op at atti titu tudes des,, cr crea eate te awareness, awarene ss, and trans transmit mit information information in order to gain a respon response se from the target market. There are many advertising advertising 'media' such as newspapers (local, (local, natio national, nal, free, trade trade), ), magazines and journals, television (local, national, terrestrial, satellite) cinema, outdoor advertisin advert ising g (such as poster posters, s, bus sides sides).she ).shell ll companies are now creating the big boards and place in the cities to tall the people and a add in the TV also made to tell the people about shell.
4.5:
The FCB Grid (Vaughn, 1980, 1986) uses involvement involvement (high-low) (high-low) and think/feel think/feel as the two dimens dimension ionss for classi classify fying ing produc productt catego categorie ries. s. This This classi classifi ficati cation on sugges suggests ts that that purchas purchasee decisi decisions ons are differ different ent when thinki thinking ng is mostly mostly involv involved ed and others others are dominantly involved with feeling. In addition, different situations also exist, resulting in decision-making processes which require either more or less or less involvement. The product category matrix is fabricated using these two dimensions. Vaughn indicates that the horizontal side of the matrix is based on the hypothesis that over time there is consumers’ moveme movement nt from from thinki thinking ng toward toward feelin feeling. g. Also, Also, Vaughn Vaughn believ believes es that that high high and low involvement (the vertical side of the matrix) is also a continuum, proposing that high involvement can decay to relatively low involvement over time. Four quadrants are developed in the matrix based on these two dimensions (involvement and thinking/feeling) in the FCB Grid. The quadrants summarize four substantially major goals for advertising strategy: "to be informative, affective, habit forming or to promote self-satisfaction"" (Vaughn, 1980). The insight from Vaughn led to the conceptualization of using a continuum of high involvement to low involvement, as well as a continuum of thinking and feeling, in order to form a space where we can position the products relative to each other.
57
With this FCB Grid, advertisers can develop advertising strategy according to consumers’ relations towards a product according to information (learn), attitude (feel) and behavior (do) issues. However, every theory needs scientific research which can validate its conclusions. The primary grid validation study was conducted in the United States among 1,800 consumers across some 250 product categories. The results are that products and services were reasonably positioned as expected, and some ‘think’ and ‘feel’ items correlated with involvement, which corroborated that it was possible to have varying amounts of think and feel - high or low - depending on involvement (Vaughn, 1986). Also, international study about the Grid has been conducted by asking over 20,000 consumer interviews in 23 countries. This study indicates that consumer mental processes are quite similar throughout different countries in spite of communication d istinctions in advertising (Vaughn, 1986). In spite of the successful validation of the FCB Grid by thorough research, Vaughn (1986) accentuated the importance of speculation about the involvement and think-feel dimensions
58
THINKING
FEELING
IVE(THINKER) High 1. INFORMATIVE I N V O L V E M E N T LOW 3.HABIT FORMATION(DOER) I N V O L V E M E N T
2.AF .AFFECTIVE IVE(FE (FEELER) It is a affective ad’s picture because, No detail We can just feel
4.SELF SATISFACTION(REACTOR)
59
THINKING
FEELING
IVE(THINKER) High 1. INFORMATIVE I N V O L V E M E N T LOW 3.HABIT FORMATION(DOER) I N V O L V E M E N T
2.AF .AFFECTIVE IVE(FE (FEELER) It is a affective ad’s picture because, No detail We can just feel
4.SELF SATISFACTION(REACTOR)
60
THINKING High I N V O L V E M E N T LOW I N V O L V E M E N T
FEELING
1. INFORMATIVE(THINKER) It is a informative because Some information about the product will affect the engine is given
2.AFFECTIVE(FEELER)
3.HABIT FORMATION(DOER)
4.SELF SATISFACTION(REACTOR)
61
62
Recommendations and conclusion:5.1: Recommendations A company should first of all work at its weakness. Shell should increase its networking. It should increase its number of Pumps in our country. It should increase its availability to increase its market growth and share more conversing advertisements should be given. Shell should make sure that its products are pure cheap then any other avail availabl ablee at ever every y where where and and more more impo import rtan antt cust custom omer erss are are sati satisf sfie ied d prov provid idee the the customers customers needs like the lubricant lubricant of motors, motors, oil for the motor bikes to make the engine fresh, improve the quality of the petrol, they have started the poling like give the pole cards to the customers to give them suggestion about them to improve Shell. Shell should make sure that its petrol pumps are clean, safe and informational-LPG is a golden opportunity for Shell Company to increase the market growth.
63
64
Bibliography References 1. Industry and analysis analysis of shell 2. 3. 4. 5.
6. 7. 8. 9.
Introduction, History, Major players Source: www.shell.com Pest Pest analy analysi siss of shel shelll Source: www.marketingteacher.com Port Porter erss five five forc forces es mod model elss Source: www.google.com\marketingteacher.com Stra Strate tegi gicc grou group p Map Map Source: by own Comp Compan any y Ana Analy lysi siss Introduction, Background Source: www.shell.com.pk SWOT Anal Analy ysis sis Source: www.marketingteacher.com PLC Source: www.shell.com Comp Compet etit itor orss Ana Analy lysi siss Source: www.shell.com\www.caltex.com\www.pso.com Cust Custom omer erss Anal Analys ysis is AIOD, Perceptual Mapping, BCG Sources: By own Marketing Mix, FCB GRID Sources: www.marketingteacher.com &By own. own.
65
