Pakistan state oil company

A marketing report on

Submitted to: Submitted by: Registration No:

Sir Javed iqbal Mian Zeeshan ullah 211-FMS/MSFIN/F12

Pakistan state oil company

Table of Contents
Back ground:-...................................................................................................................................................... 5 Vision statement:- ............................................................................................................................................... 5 Mission statement:- ............................................................................................................................................. 5 Business objective:- ............................................................................................................................................. 6 Marketing objective:- ......................................................................................................................................... 6 Excellence:- ...................................................................................................................................................... 6 Cohesiveness:- .................................................................................................................................................. 6 Respect:- ........................................................................................................................................................... 6 Integrity:- .......................................................................................................................................................... 6 Innovation:- ...................................................................................................................................................... 7 Corporate Responsibility:- ................................................................................................................................ 7 Organization structure of Pakistan state oil:- .................................................................................................. 7 Functional department of PSO:- ....................................................................................................................... 7 Importance of the marketing department within the organization:- ................................................................. 7 Controllable environmental factors:- ................................................................................................................ 8 Customers of the Pakistan state oil companies:- .............................................................................................. 8 Industrial customer:- ......................................................................................................................................... 8 Competitors of the company:- .......................................................................................................................... 9 DIRECT COMPETITORS ........................................................................................................................... 9 INDIRECT COMPETITORS ....................................................................................................................... 9 Position of PSO in the Industry:- .................................................................................................................... 10 Non controllable environmental factors:- ....................................................................................................... 10 POLITICAL FORCES:- ................................................................................................................................. 10 Economic challenges to the company:- .......................................................................................................... 11 The major driving industry force in Pakistan is the economic situation. Since petroleum industry plays a very imported role in the economy of a country and there the rise in the petrol prices globally will affect the economy of Pakistan. When the petrol prices raises so the consumption of the petrol falls and this will decrease the sales in the industry. ................................................................................................................... 11 Government Regulation:- ............................................................................................................................... 11 TECHNOLOGICAL FORCES:- .................................................................................................................... 11 Market mix:- ....................................................................................................................................................... 11 Products:- ........................................................................................................................................................ 11 2

Pakistan state oil company

ENGINE OILS .......................................................................................................................................... 12 Gear / Transmission Fluids:- ................................................................................................................... 12 PSO Industrial OILS:- ............................................................................................................................. 12 Refrigeration Oils:- .................................................................................................................................. 12 Industrial Greases:- .................................................................................................................................. 12 Castrol Industrial Oils:- ........................................................................................................................... 13 INDUSTRIAL CHEMICALS:- ............................................................................................................... 13 Fuel Oils:- .................................................................................................................................................. 13 Single Grade petrol:- ...................................................................................................................................... 13 Function of Single grade oil; .................................................................................................................... 13 SGP does not: ............................................................................................................................................ 13 SGP helps to prevent: ............................................................................................................................... 14 SGP improves: .......................................................................................................................................... 14 Single Grade Petrol products benefits.. .......................................................................................................... 14 Castrol GTX:- ................................................................................................................................................. 15 Benefits:-.................................................................................................................................................... 15 High Speed Diesel:- ........................................................................................................................................ 15 Pricing Strategy of Petrol & Diesel:- .............................................................................................................. 15 Pricing strategy of Castrol GTX:-................................................................................................................... 16 Current prices of these products:- ................................................................................................................... 16 Placement, distribution, channel, or intermediary:- ............................................................................................ 16 South Zone Depots:- ................................................................................................................................. 17 NORTH ZONE DEPOTS:-...................................................................................................................... 18 CENTRAL ZONE DEPOTS:- ................................................................................................................. 18 Market segmentation:- ..................................................................................................................................... 18 Diesel:- ........................................................................................................................................................... 18 Engine power:- ............................................................................................................................................... 18 Geographic segmentation:- ............................................................................................................................. 18 Income:- .......................................................................................................................................................... 18 Market segmentation for petroleum:- ............................................................................................................. 18 Engine power:- ............................................................................................................................................... 18 Income:- .......................................................................................................................................................... 18 Market segmentation GTX:- ........................................................................................................................... 19 3

Pakistan state oil company

Light user:-.................................................................................................................................................. 19 Mediocre user:- ......................................................................................................................................... 19 Heavy user:- .............................................................................................................................................. 19 Target market:- ................................................................................................................................................... 19 Hi speed diesel:- ............................................................................................................................................. 19 Agriculture:- ............................................................................................................................................. 19 GOVT sector:- .......................................................................................................................................... 19 PAK Forces:- ..................................................................................................................................................... 19 Petrol:- ............................................................................................................................................................ 20 Castrol GTX MOBIl oil:- ............................................................................................................................... 20 PROMOTION:- ................................................................................................................................................ 20 Mega hoardings:- ............................................................................................................................................ 20 Zoom Signs:- .................................................................................................................................................. 20 Encouraging sports:- ....................................................................................................................................... 20 PSO Light & Visual Park:- ............................................................................................................................. 20 Directional and safety signs:- ......................................................................................................................... 21 PSO Cards:- .................................................................................................................................................... 21 Swot analysis:- ................................................................................................................................................... 21 Swot analysis of Pakistan state oil:- ................................................................................................................ 21 STRENGTHS:-............................................................................................................................................... 21 WEAKNESSES:- ........................................................................................................................................... 22 OPPORTUNITIES:- ....................................................................................................................................... 22 THREATS:- .................................................................................................................................................... 22 References:- ....................................................................................................................................................... 24

Pakistan state oil company

Back ground:Pakistan state oil company was found as a merger of the three formal oil marketing companies in 1976. The companies are t. To the formation of PSO, there is a time series of events. The management of Pakistan national oil and dawood petroleum limited was taken over by the federal government and renamed it as premier oil company limited on January 1974. Then on 3rdJune, government incorporated petroleum storage Development Corporation and then on 23rdJune it was changed into state oil company limited and finally it name was changed into Pakistan state oil on December 30, 1976 by merging the state oil company limited and PNO. Pakistan state oil (PSO) is the largest oil company of the country and the main function of the PSO are import, storage, marketing and distribution of petroleum product, LPG, CNG, petrochemicals and aviation and bunker fuels. The PSO provide 70% of the country fuel needs rand about 12 million tons of fuels are provided by PSO annually. To meet the requirements of the country, PSO expands its physical and technical marketing continuously. To import latest technology PSO has maintained international associations which are 1.....Castrol.(UK).Blending.and.marketing.of.lubricants.in.Pakistan. 2.....Air.Total.(France).Technical.and.Commercial.agreements.in.Aviation.Services. 3.....Exxon.Chemicals.(Singapore).Petrochemical.Business.And.Technology

Vision statement:To excel in delivering value to customers as an innovative and dynamic energy company that gets to the future first.

Mission statement:We are committed to leadership in energy market through competitive advantage in providing the highest quality petroleum products and services to our customers, based on:

Professionally trained, high quality, motivated workforce, working as a team in an environment, which recognizes and rewards performance, innovation and creativity, and provides for personal growth and development

Lowest cost operations and assured access to long-term and cost effective supply sources
5

Pakistan state oil company

Sustained growth in earnings in real terms

Highly ethical, safe environment friendly and socially responsible business practices

Business objective: To gain a market share of 45% in three years. To be the market leader in lubricants within five years. To slowly phase out Castrol XL, and invest in developing Castrol Magnetic Advance To eradicate un-branded lubricants within ten years and consolidate a more concise product portfolio.

Marketing objective:Excellence:We believe that excellence in our core activities emerges from a passion for satisfying our customers' needs in terms of total quality management. Our foremost goal is to retain our corporate leadership.

Cohesiveness:We endeavor to achieve higher collective and individual goals through team. This is inculcated in the organization through effective communication.

Respect:We are an Equal Opportunity Employer attracting and recruiting the finest people from around the country. We value contribution of individuals and teams. Individual contributions are recognized through our reward and recognition program.

Integrity:We uphold our values and Business Ethics principles in every action and decision. Professional and personal honesty, dedication and commitment are the landmarks of our success. Open and transparent business practices are based on ethical values and

Pakistan state oil company respect for employees, communities and the environment.

Innovation:We are committed to continuous improvement, both in New Product and Processes aswell as those existing already. We encourage Creative Ideas from all stakeholders.

Corporate Responsibility:We promote Health, Safety and Environment culture both internally and externally. We emphasize on Community Development and aspire to make society a better place to livein.

Organization structure of Pakistan state oil :Functional department of PSO:1) Marketing Department. 2) Finance Department 3) Supply & Distribution Department 4) Operations Department 5) Information System Department 6) Human Resources Department 7) Training & Organizational Development Department

Importance of the marketing department within the organization:Every advance organization needs some sort of marketing system to satisfy the efforts of the working people of the organization. The working peoples are required to satisfy the customers varied needs. Marketing is set of the activities of both social class and organization. As marketing have a direct impact on the product and services offer by the company, so it is very important.Whenever PSO is going to introduce a new product, the marketing department acts as a connection bridge by providing the basic information to the customers either by print media or by electronic media.The marketing department of PSO function is to provide the best product and services to their customers and is to upgrade their product continuously to satisfy their customers.

Pakistan state oil company For the success of an organization marketing plan play a very important role as they give direction how to achieve the particular objectives and how the company plan to do that. PSO introduced PSO/Castrol industrial and automotive lubricant in 210 liter of plastic drums. These drums were specifically design for tough handling condition during transportation as there is a continuous vibration and high axial force which affect the drum and the liquid in it. More ever these drum were design from a single mold and there was no objection on leaking of the drum. These are efficient services of the marketing department of the company which are not only provided to you but also play an important role in making the environment safe and better. One of the main objectives of the marketing department of the Pakistan state oil company is to provide the product and services according to the rule and regulation of the government of Pakistan. They also keep the current state of technology in mind and plan according to the latest technology. There they have launched a new version of petrol pumps. They Pakistan state Oil Company is also confronted with marketing plan of the competitors. Its competitor shell Pakistan introduces the retail visual impact and it modernized the petrol pumps according to the international standard and because of the shell company affects the PSO market. It was a very tough time for the PSO as because most of their loyal customer switched toward the shell Pakistan. Now the marketing of the PSO has improved and a new version has been introduced. It has now the largest infrastructures and has the largest deposit and now has given time to the competitors. This is all due to the marketing department of the Pakistan state oil.

Controllable environmental factors :Customers of the Pakistan state oil companies:There are basically three groups of customers. lower middle: those peoples are including in the group who have a machinery or vehicle from 48 cc to 100 cc, which includes motor cycles and Vespa-motor. middlemiddle: those peoples are including in the group who have small cars like charade, Suzuki, santro etc. Above middle: people who have luxury vehicles are included in this group. The luxury vehicles in Pakistan are Pajero, Toyota latest model, Mercedes and Honda etc.

Industrial customer:8

Pakistan state oil company Pak force including Air force, navy and army Transports companies include busses, train, Agriculture sector where the tractor, harvesters and cultivated machines are used for day to day operation. Govt agencies like wapda.. PSO caters to the fuel requirements of local & foreign marine customers including: Pakistan Navy, Maritime Security Agency, Karachi Port Trust, PNSC, Faisal Marine Oil Services (Pvt) Ltd.

Competitors of the company:DIRECT COMPETITORS Shell Total Caltex Attock Refinery Admore PARCO INDIRECT COMPETITORS LPG CNG Illegal Agencies

Among these competitors the shell is the main competitor which has a direct competition with PSO. The shell is working from about 100 years in this part of the world. It was transporting the kerosene oil to the subcontinent from the Azerbaijan. Shell and PSO are the major competitors in the market and the product in which they compete are given as follow Shell Products Motor Gasoline Kerosene
9

Pakistan state oil company JP-1 Green Diesel Oil Furnace Oil

Position of PSO in the Industry:Pakistan state oil is a brand name and loyal image in the eyes of the customers. In the industrial sector we can rank and position the Pakistan state oil company on the basis of the brand. It is serving in industrial sector since 1971 in Pakistan. Competitive advantages of the Pakistan state oil is that it always launches new products according to the industry requirements, so because of this it has more loyal customers than its competitors. They have positioned the product and service in the minds of their customers. The sugar mills give importance to the PSO due to the fact that their products give protection and safety to the machinery and plants. PSO have also deliver lubricant at the door steps anywhere in Pakistan and is free of any cost. PSO have a variety of the lubricant which is used on large scale in the industry. These lubricants help the machinery to work efficiently by removing the friction and other barriers to the operation. PSO is totally committed to quality and is there it was ISO 9002 certified for automotive lubricants. It also deliver local and imported chemical to various industries. The important consumers for the consumption of the chemical are paint industries and edible oil mills. The chemical which they supply are hexane, benzene, tauline and solvent oil. PSO continuously launches new product and lubricant for the benefits of the industry and by this they attract new customers. PSO also supplies special products to the wapda, army, railways independent power plants. Fuel refueling of tanks Pakistan army use PSO oil.

Non controllable environmental factors :POLITICAL FORCES:There are always rapid changes in the Govt of Pakistan. Every new government condemned the previous government planning work. In Pakistan there are rapid changes of Government since poison. Each government that came in power condemned the planning work done by the precious government. There is always a slow
10

Pakistan state oil company development because the government is not stable in Pakistan. As the new government will be elected so there is also risk of the instability of the new government of Pakistan.

Economic challenges to the company:The major driving industry force in Pakistan is the economic situation. Since petroleum industry plays a very imported role in the economy of a country and there the rise in the petrol prices globally will affect the economy of Pakistan. When the petrol prices raises so the consumption of the petrol falls and this will decrease the sales in the industry.

Government Regulation:One of the main industry driving forces is the government regulation. Lower duties, tariffs on import and entry barriers, have a great role in the welfare in the industry. Incentives to OMCs are provided by the government which plays a very important role in the improvement of the economy. PSO is a government organization and therefore government regulations affect the marketing activities of the PSO. And it has impact on the business effort positively and negatively.

TECHNOLOGICAL FORCES:In technology the Pakistan is not very advance because there are very less resources. Because of its environmental potentials, effectiveness, and technological advances are going to play a more and more important role in meeting demand for clean energy.

Market mix:The most important phrase in the marketing is the marketing mix and is also known as the 4Ps of marketing. This concept became popular after the article published by Neil H. Borden in 1964. These 4Ps are the product, price, placement and promotion. Some researchers have increased the 4ps to 5Ps by including people in these 4Ps while some have also included the physical existence such as facilities, uniform and process which become the 7th p of the marketing mix are also included in the marketing mix.

Products:The products offered by the Pakistan state oil are as follow: There are basically eight product line of the PSO, these are

11

Pakistan state oil company Engine Oil, Gearing fuel, industrial chemical, refrigerator oil, industrial oil, fuel oil, Castrol oil, greases. ENGINE OILS This line consists of the following products Super Engine Oil, Premier Motor Oil, PSO CNG Oil, Turbo Engine Lube (SAE 10W-30 & 20W50), Turbo Engine Lube (SAE 15W/40), Turbo Engine Lube X, Diesel UBE LD/MLD, Turbo Engine Lube LD, Engine Lube, Diesel lube HD, Diesel Lube D-3, Gas Engine Oil, Tractor Oil and Two-Stroke / Flushing Oil. Gear / Transmission Fluids:Gearing and transmission fluids are Gear Oil EP (GL-5), ATF, Hydraulic Break Fluid HD, Gear Oil EP, Brake Fluids, MP Grease and Automotive Greases Hypoy B, Brake Fluids, TQ, TFP, Hypoy EP, Dexron III Mercon , Automotive Greases, Brake Fluid HD, LM Grease PSO Industrial OILS:It consists of the following products Circulating Oils, Spin cot, Spindle Oils and Texol/Texol-K, Hydro and HYDRAULIC OILS, Turbine Oils, Gearled EP, Gear Oil MEP, Gear Oils, Turbine Oil, Hygrolaw Refrigeration Oils:These products are Low Pour Oil, Bearing Compound, Cylinder Oils, Asphaltic Oils, Cylinder Oil M, Gear & Wire Rope Compound, Sugar Mill Oil, Metal Working Fluids, Heat Transfer Oil, Heat Transfer Oils, Solcut Oil, Neat Metal Cutting, Super Solcut Oil, Quenching Oil No:10 , PROCESS OILS, Process Oil-R, Slide Way Oils, Slide Way Oil, Jbo/Rpo/Wbo, Transformer Oils and Transformer Oil. Industrial Greases:Alpha & Alpha EP Greases , Moly Grease EP,Castrol Automotive OILS, GTX-XL, Engine Oils, GTX Magnatec, GTX, RX Super Max, Turbo Max , CR40, CR40 Plus, RX Super, CRD, DD 40, MXD, MXD 400, Agri Castrol MP, TLX, CR, CRI, Marine MLC

12

Pakistan state oil company Castrol Industrial Oils:Circulating Oils, Hydraulic Oils, Magna, Turbine Oils, Hyspin AWS, Perfecto_T, Hyspin, Hyspin AWH-M,Turpak, Gears Oils, Alpha ZN, Alpha SP INDUSTRIAL CHEMICALS:Hexane, Solvent Oil, Toluene (Nitration Grade), Mineral Turpentine (MTT), Normal Butyl Acetate , Mixed Xylene (Nitration Grade), Methyl Ethyl Ketone (MEK), Isopropyl Alcohol, Vinyl Acetate Monomer (VAM) Fuel Oils:High Octane Blending Component, Premium Plus (SGP), Light Diesel Diesel Oil, Kerosene, High Speed Diesel, Furnace Oil Since there are a variety of products offered by PSO and all are in great demand. But even then we have selected three products which PSO is believed to have the highest market. Single Grade Petrol (SGP) High Speed Diesel (HSD) Castrol GTX Since there are a variety of products offered by PSO and all are in great demand. But even then we have selected three products which PSO is believed to have the highest market. 1. Single Grade Petrol (Premier Plus) 2. High Speed Diesel (HSD) 3. Castrol GTX

Single Grade petrol:Single grade petrol is the most hydraulic oil and well-matched with mineral and synthetic oil. It is a mixture of pastes, , marine fuel oil 2-stroke fuel oil, axle oil, drilling lubrication, penetrating oil soluble cutting fluids hydraulic oil, most greases, cutting oil compressor oil tapping fluids, diesel, petrol, , coolants, scour able oil antifreeze, , flushing oil and general purpose lube oil. Function of Single grade oil; SGP does not: Flake, Crack, Migrate, Wash off, Expand, Creep, Scuff, Drag out, Contract, Melt.

13

Pakistan state oil company SGP helps to prevent: , Vibration, Noise, Frictional heat, Weight Loss, Seizure, Galling. SGP improves: Loading on bearings, product finishing, cutting tool flexibility

Single Grade Petrol products benefits..

Vibration reduces up to 50% Operating temperature reduces up to 20%

About 20% of diesel/ petrol save. 8% of engine power (BHP) improves.

Improve torque values 12% Frictional flow rates improves up to 15%

Exhaust emissions reduces up to 46%

Round friction reduces up to 90% Oil consumption reduces up to 20% Compression improves up to 16%

The life of filters extends up to 20% Production improves output up to 20%

Saves electrical power up to14% Improves Nm rating on gears 12% Cutting life is improves up to 200% operating noise reduces 10% The life of oils improves upto 100%

The battery life on tools extends up to 12% operating speeds increases up to10% Weight loss on bearings reduces up to 50% machine life extends up to 30%

So as their consumption is very high, therefore it is claimed that it is the profitable product and it is also known as the petrol and is the fast moving product of the Pakistan state oil.

14

Pakistan state oil company

Castrol GTX:It has a viscosity range of SAE 20W-50. Castrol GTX is a Multigrade super high performance oil and provides the fast movement and is best for the protection during start up from cold, where 80% engine wear might be cause. It is also best for protection of engines operating in dusty and hot climates. Benefits: it helps the engine to have a longer life and power retention. oil consumption and pressure is improved by using this product. Protects against varnish, corrosion and acids, soot, black sludge formation. Performance SAE 20W-50 MIL-L-46152D API SG/CD MIL-L-2104E i It is mostly demanded by the wapda and other independent power plants and is considered as one of the fast moving product, Because of all these description. Petrol consumption cars it is used as a lubricant.

High Speed Diesel:Among the products of the company, the High speed diesel is also considered one of the fastest moving products. Most of the consumption of the high speed diesel occurs in heavy engine vehicles and automobiles. It is used in these areas: Industry Agriculture General Public

It is also consumed in automotive engines and slow speed, large marine engines as well.

Pricing Strategy of Petrol & Diesel:Diesel and petrol both are under the head of oil fuel, so therefore the strategy of price of both these product are the same and therefore it is discussed as the strategy of price for the fuel oil. These prices for the product are set by a committee for all oil marketing companies and pricing strategy for all the marketing companies are the same i.e. the fuel price of PSO and its
15

Pakistan state oil company competitor shells and other have same price in the market. The fuel prices are revised every fortnight according to the strategy standard set by oil companies advisory committee.

Pricing strategy of Castrol GTX:For the pricing of the Castrol GTX, there is no hard and fast rule but a define strategy is still there. The pricing strategy of the PSO and its competitors are different as Castro GTX is a lubricant and therefor the prices of these products are different for PSO, shell and other competitors. Usually these prices are set based upon the following 1) 2) 3) Cost Storage charges Handling charges

The competitor of the PSO bear large cost handling charges and also bears large charges of the storage house as compared to PSO, so therefore the demand for this product of the PSO is very high as the PSO is a government company and therefore it bears very less charges of the storage charges and as well handling charges. PSO has a competitive advantage because of the pricing strategy. After every 4-6 months, the prices of these lubricants are revised. They set the price of the lubricant lower than their competitors. They have said that we have competitive prices. Two factors are considered while setting the prices Profit Services

Current prices of these products:1) Single grade petrol 2) High speed diesel 3) Castrol GTX Rs. 106.6/liter Rs. 113.56/liter Rs. 195.50/liter (1 Tin/ 4 litres pack)

Placement, distribution, channel, or intermediary :An intermediary consists of groups of institutions, these institutions function is to move the product and title to the final consumers, and they perform all of the activities utilized to move a product and its title from production to consumption.

16

Pakistan state oil company Other intermediary or channel of distribution is place. In this mechanism the good and services are moved from the provider to the consumer i.e. from the production units to the final users. The intermediary or the distribution channels also consists of agents, retailers, wholesaler, overseas distributor, the internet, and many others. Other type of the distribution channel is the direct distribution in which the final product is moved to the final users without any intermediaries. PSO mostly use retailer as the intermediary which is the most viable channel for the distribution of the single grade oil and high speed diesel. In the form of tank Lorries, this facility is available for the general retailers while for the industrial use they use railway tank wagons to move the product to these users. Previously the freight charges for the replacement of the products were paid by the government of Pakistan but will be paid by the retailers. For the Castrol GTX, different lubes are available which carry the final product from the production department to the pumps to be available in the shop through dealers. For the lubricant sale there is also a network of agencies which take Castrol GTX from the production units through dealers on their own expenses and then they sell it to the general public, Now days existing facilities were improved and new infrastructure was developed especially the pipeline which is the efficient and safe friendly environment mode of the replacement of the product from the production units to the final users. The Pakistan railway was also geared to move more products across the country and because of this the pressure on the road movement was decreased. For transportation of the product, the PSO has the following product movement network. Tank Lorries Railway Tank wagons Pipelines 13400 1120 13

PSO has storage depots all over Pakistan. These include, South Zone Depots:Hyderabad, Khuzdar and Pasni,Sanghi, Daulatpur, Sukkhur, Quetta.

17

Pakistan state oil company NORTH ZONE DEPOTS:Chakpiran, , Serai Naurang, Faqirabad, Kundian, Juglot Taru Jabba, Chitral and Kohat. CENTRAL ZONE DEPOTS:Vehari, Shershah -, Sahiwal, 2 (B&C), Lalpir Habibabad, Faisalabad A, Faisalabad 'B', Badami Shah Kaku, Kotla Jam Gujranwala, Sargodha and Bagh, Kala.

Market segmentation:Diesel:On the basis of high speed diesel the market is segmented as

Engine power:Motor vehicles above 1300 cc

Geographic segmentation:On the basis of geography the market is divided into Rural and Urban however the placement and promotion policies are differ. Oil agencies are used for selling in the rural areas where as in the urban area the selling is through petroleum pump.

Income:High speed diesel consuming vehicles and machinery are used for commercial activities, so people involved in such business belong to middle class and above.

Market segmentation for petroleum:On the basis of petroleum the market is segmented on the following basis

Engine power:Vehicle or machinery having engine power below 1000 cc i.e. motor cycles, home using generator, alto

Income:There are basically three groups 1)lower middle: those peoples are including in the group who have a machinery or vehicle from 48 cc to 100 cc, which includes motor cycles and Vespa-motor. 2)middlemiddle: those peoples are including in the group who have small cars like charade, Suzuki, santro etc.

18

Pakistan state oil company 3) Above middle: people who have luxury vehicles are included in this group. The luxury vehicles in Pakistan are Pajero, Toyota latest model, Mercedes and Honda etc.

Market segmentation GTX:On the basis of consumption level the GTXmobil oil market is segmented and are given as follow Light user:People who have vehicles which consume mobil oil from 1 to 4 liters and i.e. Rickshaw, motor cycle and Mediocre user:It consists of the those people who have vehicle/machinery that consumes mobil oil from 4 to 12 liters which are small cars and light machinery Heavy user:Those peoples are included in this group who have vehicle or machinery which consume more than 12 liters of mobil oil, and truck, loaders, buses, tractors are including in this group.

Target market:PSO have targeted market on the basis of the following three main product

Hi speed diesel:This target market is divided into in to the following Agriculture:It consists of landiords, as they have their own irrigation unit and diesel is used in their operation. Tractor, harvesters and cultivated machines also consume diesel. GOVT sector:It has a good market in the govt. and include WAPDA who consume the diesel for their operation.

PAK Forces:Pakistan air force, Pakistan army and Navy are the target markets in Forces. They consume highspeed diesel for their operations. More ever the high speed diesel are also used by the diesel general motors, and these consists of the vehicles which are above than 1300 cc.

19

Pakistan state oil company More ever the diesel is also used by the vehicle in the public and private transports, cargo activities and truck for good transports.

Petrol:On the basis of this product the market is targeted who have a vehicle below 1300 cc like people who have motor cycles, taxi generator and rickshaws.

Castrol GTX MOBIl oil:They have targeted high way authority, who have large machinery for development of the infrastructure, large vehicle in the govt sector, Pak force , service station and work shop for Castrol gtxmobil oil.

PROMOTION:This includes offering exciting fuel and lubricants promotion movements to treat customers.

Mega hoardings:Mega hoardings are usually constructed at retail outlets and are not only an extremely costeffective initiative but also offer the business with an ideal site to advertise and also enrich the outlook of the outlet.

Zoom Signs:It is an image-building tool and its mode of advertising is Zoom Sign. These are built in the different station in the major cities of Pakistan and are about 110 feet tall towers, with PSO logo on the top. These signs that can be seem from a distance are providing PSO with tremendous mileage.

Encouraging sports:PSO also incourage the sports in all form in the country and is the major sponsor of SAF Games, golf tournaments cricket series and squash championships

PSO Light & Visual Park:PSO light and Visual Park is adopted by the in Islamabad where new lights and plantation have been placed along with other prettification activities.

20

Pakistan state oil company

Directional and safety signs:Activities like putting up of directional and safety signs and overhead gantries in Faisalabad Karachi, , Islamabad, , Peshawar Saiwal and Lahore is the classic example of PSO as a social yethical organization.

PSO Cards:PSO is also offering plastic cards for the retail and industrial consumers according to theirrequirements.1. Loyalty Card. Prepaid Cards (available in Rs. 500, 1500, 2500 & 5000). Fleet Card for Corporate Vehicles. Corporate Card for Corporate employees.

Swot analysis:It is tool for examining the organization and organizations environment. For planning the swot analysis is the first stage and helps marketers to focus on key issues. By identifying key issue, it is then feed into the marketing objective of the company. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are the organizational internal factors. For example, strength could be your specialist sale staff and the lack of a new product will be your weakness. Opportunities and threats are the organizational external factors. For example, developing a market will be an opportunity for the company while entrance of a new competitor will be a thread to the company.

Swot analysis of Pakistan state oil: STRENGTHS: PSO is having good competitive skills. PSO is public sector organization and have support of the government of Pakistan and therefore it has sufficient financial resources. It is a well-recognized market leader as it has top oil market in Pakistan. PSO has computerized pumps in all the country.

21

Pakistan state oil company It introduces new products according to the needs of the customers as it has product innovation. Functional area strategies are well conceived.

WEAKNESSES: The Pakistan state oil is dropping behind in research and development. Sometimes the organization fails to implement strategies in the front of its core competitors It also has a weak market as compared to its core competitor shell, although the services of PSO are very well.

OPPORTUNITIES: TO create some new and unique feature in the product to attract new and new customers. Some new complimentary product should be introduced. It can extend their business and can enter into a new business line. They can also introduce new product which will have unique features which is not present in any of the competitors product.

THREATS: It can face a new competitor in market which might provide good services better than PSO. The sale of substitute products offered by the competitors may rise. There might also be adverse government policy and the taxation on the products me be high. The pressure of the Growing competitors is also a threat to the survival of the organization. There might be a change Buyers needs and tendencies and will not satisfy with the existing products. There might be adverse demographic changes.

22

Pakistan state oil company

23

Pakistan state oil company

References:Steve Forbes. "Pakistan State Oil". Forbes publishing. Retrieved 4 June 2012. State release. "PSO: About us". PSO, Release. Retrieved 4 June 2012. State release date. "Corporate Network of PSO". Corporate Network of PSO. Retrieved 4 June 2012. Pakistan State Oil Release. "Business At A Glance". Business At A Glance. Retrieved 4 June 2012. Vision, Mission and Values". Retrieved 4 June 2012. Tirmizi, Farooq (March 27, 2012). "Caltex out: Chevrons exit from Pakistan may benefit other players". Dawn News Group. Retrieved 4 June 2012. http://www.psopk.com/products_services/product_prices.php http://investorguide360.com/latest-economic-news/pakistan-state-oil-company-what-lies-aheadahl-research/ http://www.psopk.com/investors/pdf/corporate_governance_2011.pdf Eve Forbes. "Pakistan State Oil". Forbes publishing. Retrieved 4 June 2012. State release. "PSO: About us". PSO, Release. Retrieved 4 June 2012. State release date. "Corporate Network of PSO". Corporate Network of PSO. Retrieved 4 June 2012. Pakistan State Oil Release. "Business At A Glance". Business At A Glance. Retrieved 4 June 2012.

24