MARKETING PROJECT REPORT

Executive Summary
Shell is a superior brand name with more than 100
years history in this region, infact the company is
still in possession of a fuel storage tank from 1899.
However, the documented history of the Royal
Dutch/shell group the Indo-Pak subcontinent dates
back to 1903 when a partnership was struck
between the shell transporter and trading
company and the Royal Dutch petroleum company
to supply petroleum products in Asia.

With their key indicators of progress already

soaring to new heights, Shell is committed to
dedicate all its energies, resources and the time to
bring higher value and satisfaction to their
customers, employees and shareholders.

The graph of Shell is going up every year. The ratio

of profit is increasing at good percentage. Shell is
serving the people at high level of standard by
going according to the wishes of the customers.

Assessment of the needs and wants of the

Shell History in Pakistan
customers is an ongoing process at Shell, which
helps to continually develop new products and
services. To continuously offer courteous,
professional and advanced business, the team of
shell has recently been rejuvenated by going
though
History
training
of Shell
programs with a focus on
Shell hasinformation
an over 100technology.
year’s presence in the Subcontinent

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MARKETING PROJECT REPORT

The Shell brand name enjoys a 100-year history in this part of the
world, dating back to 1899 when Asiatic Petroleum, the far eastern
marketing arm of two companies: Shell Transport Company and Royal
Dutch Petroleum Company began importing kerosene oil from
Azerbaijan into the subcontinent. Even today, the legacy of the past is
visible in a storage tank carrying the date - 1898.

The documented history of Royal Dutch Shell plc in Indo_Pakistan

subcontinent dates back to 1903 when partnership was struck
between The Shell Transport & Trading Company and the Royal Dutch
Petroleum Company to supply petroleum to Asia.
In 1928, to enhance their distribution capabilities, the marketing
interest of Royal Dutch Shell plc and the Burmah Oil Company Limited
in India were merged and Burmah Shell Oil Storage & Distribution
Company of India was born. After the independence of Pakistan in
1947, the name was changed to the Burmah Shell Oil Distribution
Company of Pakistan. In 1970, when 51% of the shareholding was
transferred to Pakistani investors, the name of changed to Pakistan
Burmah Shell (PBS) Limited. The Shell and the Burmah Groups retained
the remaining 49% in equal propositions. In February of 1993, as
economic liberalization began to take root and the Burmah divested
from PBS, Shell Petroleum stepped into raise its stake to 51%. The
years 2001-2 have seen the Shell Petroleum Company successively
increasing its share, with the Group now having a 76% stake in Shell
Pakistan Ltd (SPL)- an expression of confidence.

Company’s Slogan
“You can be sure of Shell”

Company Objective

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Statement of General Business Principles:

Shell Pakistan Limited General Business Principles govern how Shell
Pakistan Ltd. conducts its affairs.
The objectives of Shell Pakistan Ltd. are to engage efficiently,
responsibly and profitably in oil, gas, chemicals and other selected
businesses and to participate in the search for and development of
other sources of energy to meet evolving customer needs and the
world’s growing demand for energy.
We believe that oil and gas will be integral to the global energy needs
for economic development for many decades to come. Our role is to
ensure that we extract and deliver them profitably and in
environmentally and socially responsible ways.
We seek a high standard of performance, maintaining a strong long-
term and growing position in the competitive environments in which
we choose to operate.
We aim to work closely with our customers, partners and policy-
makers to advance more efficient and sustainable use of energy and
natural resources.

Goal of Shell
The goal of the company is to position itself as the preferred oil
company in Pakistan, leading the field in its commitment to safety,
customer service, quality and environmental protection.

Product and Services

Product:
Anything that can be offered to market for attention, acquisition, use
or consumption that might satisfy a want or need. The oil products of
shell are given below.

Services:
Services are the form of product that consist of activities, benefits, or
satisfaction offered for sale that is essentially intangible and do not
result in the ownership of anything. The services that provide shell
Pakistan limited are given below.

 There is credit card that given to the customer, in presence of

these credit card shell provide all types of services without
getting charges.
 When customer of shell going for pouring oil then also clean the
transportation that is coming for being filled the oil.

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MARKETING PROJECT REPORT

Product Mix
“Product mix is the set of all the products offered for sale by a
company.”
The structure of product mix has both breadth and depth. Its breadth
is measured by the number of product line carried and its depth by the
variety of sizes, colors and models offered within each product line.
Thus the two main products which Shell Pak. offers are fuel and
lubricants. These have further classifications in various constituents
which form the product line.

Product line:
Shell has two product lines namely, fuel and lubricants.
Fuel:
Shell offers a wide range of fuel. These are:
 Hi-Octane
 Super Unleaded
 Super
 Hi-speed Diesel
 CNG
Lubricants:
The various lubricants offered by Shell are;
 Rimula C
 Rimula D
 Rimula X
 Helix Plus
 Helix Super
 Helix Standard
 Shell Helix(CNG)

Product Life Cycle

Product Life Cycle Stages:
Product Life Cycle means the changes in the sales volume of the
product over the life the product. In market there is always ups and
downs are present because this is a dynamic world. Every thing will
have to finish after certain time period, by finishing their life, so the life
cycle of Shell is.

We define a product as anything that is capable of satisfying

customer needs. This definition includes both physical products e.g.
Cars, Washing machines, DVD players as well as services e.g.

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MARKETING PROJECT REPORT

insurance, banking, private health care. Business should manage their

products carefully over time to ensure that they deliver products that
continue to meet customer wants. The process of managing groups of
brands and product lines is called portfolio planning. The stages
through which individual products develop over time are called Product
Life Cycle. The classic product life cycle has four stages.

Introduction Stage:
At the introduction stage market size and growth is slight. It is possible
that substantial research and development cost have been incurred in
getting the product to this stage. In addition, marketing costs may be
high in order to test the market, undergo launch promotion and set up
distribution channels. It is highly unlikely that companies will make
profits on products at the introduction stage. Products at this stage
have to be carefully monitored to ensure that they start to grow.
Otherwise the best option may be to withdraw or end the product.

Growth Stage:
The growth stage is characterized by rapid growth in sales and profits.
Profits arise due to an increase in output [economies of sales] and
possibly better prices. At this stage, it’s cheaper for business to inset
in increasing their market share as well as enjoying the overall growth
of the market. Accordingly, significant promotional resources are
traditionally invested in products that are firmly in the growth stage.
Shell Pakistan introduction stage is successfully done because it comes
from the international market and enters in Pakistan market. Now
company has about 40-45.5% of market share and still growing

Maturity Stage:
The maturity stage is perhaps the most common stage; it is in this
stage that competition is most intense as companies fight to maintain
their market share. Here both marketing and finance becomes key
activities. Marketing spend has to be monitored carefully, since any
significant moves are likely to be copied by competitors. The maturity
stage is the time when most profit is earned by the market as a whole.
Shell Pakistan not yet enters in maturity stage.

Decline Stage:
In the decline stage the market is shrinking, reducing the overall
amount of profit that can be shared amongst the remaining
competitors. At thus stage great care has to be taken to manage the
product carefully. It may be possible to take out some production cost,
to transfer production to cheaper facility, sell the product into other
cheaper market. Care should be taken to control the amount of stocks

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MARKETING PROJECT REPORT

of the product. Shell Pakistan is a brand name and company is not in

decline stage because their sale increases day by day.

Pricing
Price is the amount of money for which a product is offered in the
market. The amount of money charged for the product of services of
sum of the value that consumer exchange for the consumers exchange
for the benefits for having or using the product of services price is only
which brings revenue in the market, so it plays a tremendous role in
the market.

Strategies of Pricing:
There is to types of strategies present in marketing.
• Market skimming price
• Market penetration price

Market skimming price:

This is high price settings for a new product to skim maximum revenue
layer by layer from the segments willing to pa the high price the
company makes favor but more profitable sales marketer prefer to this
type of price strategies because there is every product that comes in
the market will have to go out from the market every product that
comes in the market will have to go out from the market every product
have its limited life and after spending certain period of time product
leave from the market like the computer software program that comes
in the market has the time period of 6 or 3 months in the past but now
there is soft ware programs that have limited life period of eighteen
days, and after eighteen days there strategy because there point of
view is that product have to go out from the market then they comes
up with high prices to earn profit that minimizes the cost that spends
when it was made and finally out of the market.

Market penetration price:

Settings a low price for a new product in order to attract a large
number of buyers and large market shares. Companies also adopt this
strategy when they enter in the market. Shell Pakistan limited also
comes up with the penetration strategy because it is an international
market and they just want to enter this market now this company
enjoying the high profit and continuums in the product life cycle.

Basic Objectives of Pricing:

Survival:

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MARKETING PROJECT REPORT

Now days companies pursue survival as there major objective of

pricing especially when they are plagued by intense competition and
changing consumer wants. Shell Pakistan ltd also tends to its
lubricants in order to survive the tough competition lubricants
industry. The pricing of fuels is not in the bands of Shell Pakistan
limited or any other such company. The price of fuels is in the hands of
the government.

Maintenance of current profit:

The next objective of pricing is the maintenance of current profits. At
the moment shell Pakistan ltd is the leader in fuel and lubricants
industry and there for tends to maintain its profits through appropriate
pricing.

Product quality Leadership:

Shell lubricants and fuels have been especially formulated to meet the
demanding requirements of a wide range of customers in most sectors
of the company.

Selection of Pricing Method:

Companies usually select the price of their products in accordance to
the following three: customer demand schedule, the cost function and
competitors price. However companies adopt various strategies in
order to price their products.

The strategies adopted by the shell Pakistan ltd are:

1: Price of competitor’s product

2: Price premium for high quality
3: Price premium for high purity
4: Price premium for better services
5: Is the appropriate price for shell.

Going price rate:

“Going price rate means that a company bases the price of its product
in accordance to the price offered by its competitors.” In fact shell
Pakistan’s competitors are like;
PSO
TOTAL
ATTOCK
CALTEX
ADMORE

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MARKETING PROJECT REPORT

Target Market
A target market is the market segment which a particular product is
marketed to. It is often defined by age, gender socio-economic
grouping.

Targeting strategies is the selection of the customers u wish to service.

Including;
 How many segments to targets
 Which segment to target
 How many product to offer
 Which product to offer in which segments

There are three steps to targeting:

 Market quality
 Target choice
 Product positioning

Targeting strategy decision is influenced by:

 Market maturity
 Diversity of buyers need
 The companies size
 Strength of the competition
 The volume of sales requires for profitability

Market Targeting
It is the process of evaluating each market segment’s attractiveness
and selecting one or more segments to enter. Market targeting
depends upon the financial positioning of company. If company is
strong financially then he must go for market targeting. Shell in
Pakistan produces verities of products. All these products are available
urban as well as rural area.

Market Segmentation

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MARKETING PROJECT REPORT

Market is the processing which dividing a market in to distinct group of

buyers on the basis of needs characteristics or behave who might
requires separate products or marketing mixing.
Market consist of buyers and buyers differs in one or more ways they
may differing their wants, resources, locations, buying attitude and
buying practice.
Shell Pakistan ltd. Divide his market in to following segments:

 Demographic segmentation
 Geographic segmentation
 Psychographic segmentation

Demographic Segmentation:
Demographic segmentation is dividing the market in to groups based
on demographic variables such as:

 Age
 Gender Education
 Income
 Family size
 Occupation
 Social class
Shell introduces their product for upper class, upper middle class and
middle class. In other words shell produces its products for everyone
who have automobile.

Geographic segmentation:
Geographic segmentation is dividing the market in to different
geographical units such as.
 Region
 Density
 Cities

This is all about the segmentation of shell. Shell provides facilities of

petroleum to urban as well as rural areas. Segmentation basically
depends upon
 Population of that area
 Living standards of people

Levels of Market Segmentation

There are three levels of market segmentations
 Mass marketing
 Segment marketing

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MARKETING PROJECT REPORT

 Niche marketing

Mass Marketing:
Shell Pakistan limited go for the mass marketing because its
distribution is very extensive. Internationally its products are goes into
international market.

Positioning:
The process of arranging of product to occupy clear distinct and
desirable place related to competing products in the minds of target
consumer. Shell Pakistan companies lies its growth stage in the market
and enjoys 65% shares. Now gradually with the increase of growth rate
is expands its products line and also its distributions.

Marketing Channel
“Marketing channels are set of interdependent organizations involved
in the process of making a product or service available for use or
consumption”
The entities involved in the distribution of Shell products in Pakistan
are:

 Supply Chain Department

 Shell Depots
 Distributors
 Fuel Stations
 Consumer
The Market Share of Shell
At the moment Shell Pak. has a market share of about 40% to 45% in
Pakistan. It is trying hard to become the market leader in Pakistan. For
this purpose it is taking the following steps.

Qualities of a good Market Leader

Customer Knowledge:
Shell Pakistan is fully committed to achieve excellence in customer
services and product quality. This can only be done by having
complete knowledge of the needs and wants of their customers. It is
due to this reason that Shell Pakistan has established a special
customer service centre by the name of “Shell Edge.”

Long Term Planning:

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MARKETING PROJECT REPORT

Shell enjoys a 100-years history in the sub-continent. Shell’s long term

commitment towards developing the petroleum industry in Pakistan is
reflected by a capital investment of Rs.703 million in 2006.
Line Extension:
“Line extension means including new products in the product line.”
Shell has recently extended the product line of its lubricants by
producing CNG lubricants by the name of “Shell CNG Engine Oil.”
Heavy Advertising:
Another feature of a good market leader is to heavily advertise in
order to compete with the competitors and to create more awareness
amongst already existing and new customers.
Shell also adopts the same strategy. It advertises both on electronic
and print media to keep its customers well informed. The company has
also started a magazine named “Spirit” to promote its products.

Effective Placement of Products:

Shell has established a special council called “Product Placement
Council.” Its sole function is to keep an eye on proper placement of the
various products offered by the company. The council makes contracts
with dealers and retailers regarding the placement of the products and
also keeps checks in order to see that there is no violation of the
contracts.

Price discounts and Allowances:

Shell Pakistan Ltd. offers different kinds of discounts to its customers.

Cash Discount:
“A cash discount is a price reduction offered to buyers to pay their bills
promptly.”
Shell offers such discounts to its distributors. The distributors take the
products from the depots and have to pay in a certain time period.

Schedule of Cash Discounts Offered by Shell

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MARKETING PROJECT REPORT

Discount Description
It means that the distributor can
2/10 net 30 get 2% discount, if he makes the
payment within 10 days which is
due in 30 days.
4/10 net 40 Distributor can get 4% discount, if
he makes the payment within 10
days which is due in 40 days.
6/15 net 50 Distributor can get 6% discount, if
he makes the payment within 15
days which is due in 50 days.
8/20 net 60 Distributor can get 8% discount, if
he makes the payment within 20
days which is due in 60 days.
10/25 net 70 Distributor can get 10% discount,
if he makes the payment within 25
days which is due in 70 days.

Quantity Discounts:
“A quantity discount is a reduction in price on the basis of quantity
purchased or consumed.”
There is no set pattern according to which Shell offers quantity
discounts, however it keeps on introducing certain schemes in order to
keep its customers and consumers satisfied and intact.
Examples of Quantity Discounts:

 Offering 1 or 2 liter of fuel free for the purchase of 10 or 20 liters

of fuel from a Shell Fuel Station.
 Shell distributors offering a free bottle of Shell Advance S4 (0.7
ltr) for every purchase of Shell Oil carton.

Promotion
Advertising:
“Advertising is any paid form of non-personal presentation and
promotion of ideas, goods or services by an identified sponsor.”

Kinds of Advertisement:
There are different kinds of advertisements which a company may
adopt during the PLC.
Shell also requires advertising its products in order to create
awareness about the new or already existing products.

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MARKETING PROJECT REPORT

The types of advertisements which Shell Pakistan Ltd. Has adopted are
as follows:

Informative Advertisement:
“The type of advertising which is done during the introduction stage of
a product is known as informative advertising.”
Shell adopted this strategy when it launched its Shell Helix CNG Oil. It
adopted all kinds of media to inform the public about the new product.
Shell advertised through Television, News Papers, billboards, etc.to
build a good product image in the minds of the customers.

Persuasive Advertising:
“The advertising done to compete with the competitors and to create
more demand of the product in comparison to the competitor’s
products, is known as persuasive advertisement.”
Shell Pak Ltd. also adopts such strategy to compete with its
competitors. You must have seen various adds of Shell featuring
celebrities like Michael Schumacher in order to make them attractive
and also adds in which comparison is made among Shell and
competitor’s products. Comparison features include purity, viscosity,
efficiency and performance.

Kinds of Media to be Used for Advertising

“Media is basically a carrier which carries a message or any kind of

information from the sender to the receiver.”
The different kinds of media used by Shell Pak .Ltd. are:
• Television
• Radio(Especially FM stations)

• Internet
• Telephone Service (This function is performed by “Shell Edge”
customer services centers. Their toll free number is 0800-22737)
• Newspapers
• Magazines (Shell has its own magazine “Spirit”)
• Billboards

The BCG Matrix

The business portfolio is the collection of business and products that
make up a company. The best portfolio is the one that fits the
company’s strengths and helps to exploit the most attractive
opportunities.
The company must:

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MARKETING PROJECT REPORT

• Analyze its current business portfolios and decide which should

need more or less investment.
• Develop growth strategies for adding new products and businesses
to the portfolio while, at the same time, deciding which products
and businesses should no longer be retained.
An SBU is a unit of the company that has a separate mission
statement and objectives and that can be planned independently
from the other businesses. An SBU can be a company division, a
product line or individual brands.

Stars:
Stars are high growth businesses competing in the market. Often they
need heavy investment to sustain their growth.
Cash Cows:
Cash cows are low growth businesses with relatively high market
share. These are mature successful businesses with relatively little
need for investment.

Question Marks:
These are the SBUs with low market share but which operate in higher
growth market.

Dogs:
Dogs refer to businesses that have relatively low share in unattractive
low growth markets. Organizations prefer to divest from dogs.

Shell in BCG Matrix

We put Shell in Stars in the BCG Matrix because shell has a good
market share and it has the opportunities to grow more.

The SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities &Threats. In
which, Strengths and weaknesses are related with internal
environment of the organization and opportunities and threats are
related with external environment of the organization.

Strengths:
Shell strengths mean what are the positive points of the organization.
The strengths of shell Pakistan Ltd are:

 The managers regard their sub ordinates.

 Main focus of the organization to increase their customers.

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MARKETING PROJECT REPORT

 Managers use participative approach.

 Their employees are highly motivated.
 They hire local employees.
 No clash with GOVT. or any agency.
 They care about the hygienic factor.
 Shell is using effective means for the promotion of its products.
 Shell provides in time deliver to their petrol pumps.
 Incentive based policies for motivating employees.
 Shell has international Standard petrol pumps.
 Mobile training units keep the staff up-to-date.

Weaknesses:

 They are not offering any package to their regular customers.

 They are not offering any bonus package scheme.
 Shell has eight regional retail managers. They are insufficient to
handle the problems.
 They have no proper shades and sitting arrangement at the
filling stations.
 There is no proper drainage system at filling station.

Opportunities:

 Shell is an international company so it should introduce

packages.
 Company has an opportunity to give special packages to its
employees.
 Company has opportunity to install more CNG as well as petrol
pumps in rural areas of Pakistan.

Threats:
Threats are actually competitors.
 PSO and CALTEX improvement.
 Installation of stations by TOTAL.
 The smuggling of petrol in Balouchistan from Iran.
 Entry of new companies in the refinery sector.

Environmental Analysis
External Environment:
For the analysis of external environment following are important
factors (PEST).

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MARKETING PROJECT REPORT

 Political forces
 Economic forces
 Socio cultural forces
 Technological forces

Political forces:
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. The slow development due to political
instability but now the preset government is very stable to grow
because govt. is providing incentives to different industries.

Economic forces:
In Pakistan GNP is 5.41 and inflation rate is very high which is 12.7.
The balance of payment position in Pakistan is -3.5%. The employment
rate is 34.94 million.

Socio-cultural forces:
In Pakistan population is increasing and social values are also changing
so the demand of fuel consumption is also increasing. People are
coming from rural areas to cities and their motor cycle for traveling.
Pakistan’s attempt to raise the living standards of its citizens has
meant that economic development has largely taken precedence over
environmental issues.

Technological forces:
Pakistan environment regarding the technology is not very advance
due to the lack of resources. Natural gas, because of its environmental
qualities, efficiency, and technological advances are going to play an
increasingly important role in meeting demand for clean energy.

Internal Environment:
 Customer
 Supplier
 Labor component
 Competitors

Customer:
Our customer is high class, low class and also middle class, because
every class is used petrol for consumption.

Supplier:

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MARKETING PROJECT REPORT

Our suppliers are Pakistan refinery, National refinery and Attock

refinery and Dhodak refinery.

Labor component:
Labor is frequently available in Pakistan because of high
unemployment rate. Skilled and unskilled persons are available at
lower wages.

Competitors:
Major competitors of Shell are PSO with petrol pumps and Caltex with
petrol pumps. But shell Pakistan limited operates in the petroleum
refinery sector. Shell Pakistan limited also competes with three other
petroleum refiners in Asia

Organizational Resources
Shell has established 1404 petrol filing station in different areas of
Pakistan. But now the company is trying to reduce the number of
petrol filing station because they do not need that filing station, whose
monthly sales are less then 500000 liters. Up till now about 50 pumps
are renovated in different cities of Pakistan.

Number of Depots in Pakistan:

Shell has got 14 depots in different areas of Pakistan.

Types of Resources:
1) Marketing
2) Financial
3) Research and Development
4) Human Resource
5) Operation
6) Information System

Marketing:
Shell has strong distribution channels. Their market size is very large.
Therefore, marketing staff is very efficient and their main objective is
satisfying the customer and people have the brand loyalty.

Market leadership due to innovation:

Shell is considered to be the market leader in innovation. It was the
first company to get legal approval to operate mini-market. It was the
first among its competitors to introduce (rainbow) jet wash and

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MARKETING PROJECT REPORT

(prosper) branded oil change facility. It provides suggestive literatures

to its customers while launching a new product such as Helix super
and Helix Lubricant etc.
It was also the first company to introduce the concept of Mobile
Training Unit (MTU) for the purpose of training the workers and
workers and introducing quality and quantity control units, which
check the quality and quantity of major gasoline at various filing
stations.

Innovation the key to opportunity:

Innovation use of technology is the key to other possible opportunities
related to remote gas reserves that remain stranded due to the
prohibitive cost of development.

Research and Development:

Research and development strategy deals with product and process
innovation and improvement. Shell spends on research and
development more than most in the other companies to differentiate
the performance of its products to its competitors.

Human Resources:
Shell provides the training facilities to their labor and management to
create the good relation to their employees. Shell Company also
motives its employees and provides different incentive on their good
performance.

Operation:
Operation of the company is based on continues improvement is the
acknowledgement that workers experience and knowledge can help to
shoe production problem and contribute towards tightening variances
and reducing error.

Information System:
Shell design and manage high-class information system that improves
the productivity and decision-making. In organization information may
be collected, stored and synthesized in such manner that answers
important operational and strategic questions.
Information system is one of the strength of the organization. It
provide aid in environmental scanning and in controlling activities, it
can also used as a weapon in gaining competitive
advantage.

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MARKETING PROJECT REPORT

Financial Performance:
Sales Analysis:
Shell Pakistan Limited reported sales of 63.63 billion Pakistan rupees
for the fiscal year ending June of 2001. This represents an increase of
76.2%, versus 2000.When the company’s sales were 36.12 billion
Pakistan rupees.

During 2001, the company’s sales increased at a faster rate than all
three comparable companies. While shell Pakistan limited enjoyed a
sales increase of 76.2% the other companies saw smaller increases;
Chennai Petroleum Corporation Limited sales were up 29.1%, National
Refinery Limited increased 15.9%, and Mangalore Refinery &
Petrochemical Limited experienced a sales decline of 6.3%. Shell
Pakistan Limited currently has 608 employees with sales of 63.63
billion Pakistan Rupees.

Stock Performance:
In recent years, this stock has performed terribly. In fiscal year 2000
the stock traded as high as 367.50 Pakistan rupees. During the past 13
weeks the stock has fallen 803%.
During the 12 months ending 30/06/01, earnings per share totaled
30.12 Pakistan rupees per share. Thus, the price/Earning ratio is 5.48.
Earning per share fell 18.7% in 2001 from 2000.The Company’s price
to book ratio is higher than that of all three comparable companies,
which are trading between 0.25 and 0.97 times book value.

Profitability Analysis:
On the 63.63 billion Pakistan rupees in sales reported by the company
in 2001, the cost of goods sold totaled 44.75 billion Pakistan rupees, or
70.3% of sales. This gross profit margin is significantly better then the
company achieved in 2005, when cost of goods sold totaled 91.1% of
sales.
Shell Pakistan Ltd’s 2001 gross profit margin of 29.7% was better than
all three companies.

Competitor Analysis
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MARKETING PROJECT REPORT

Shell Pakistan Limited Operates in the Petroleum refining sector. This

Analysis compares shell Pakistan Limited with three other petroleum
refiners in Asia.

Pakistan State Oil:

The past of PSO dates back to mid-70s when the Government of
Pakistan amalgamated three “Oil Marketing Companies”: Esso Eastern,
Pakistan National Oil (PNO) and Dawood Petroleum as part of its
“Nationalization Plan”.
The company is the only public sector entity in Pakistan that has been
competing effectively with three multinationals (Shell, Caltex and
Total). PSO is currently enjoying over 73% share of Black Oil market
and 59% share of White Oil market.

It is engaged in import, storage, distribution and marketing of various

petroleum products including mogas, high speed diesel (HSD), fuel oil,
jet fuel, kerosene, liquified petroleum gas (LPG), compressed natural
gas (CNG) and petrochemicals. PSO also enjoys around 35% market
participation in lubricants and is blending/marketing Castrol brands, in
addition to a wide array of its own. It is considered as one of the most
successful mergers in the history of Pakistan. The company has retail
coverage of over 3,800 outlets, representing 80% participation in total
industry network. The company has been the winner of Karachi Stock
Exchange Top Companies Award for many years and is a member
of World Economic Forum.
PSO serves a wide range of customers throughout Pakistan including
retail, industrial, aviation, marine and government/defence sectors.
PSO has been meeting the country’s fuel needs by merging sound
business sense with national obligation.
The Government of Pakistan(GOP) holds approximately 54% stake in
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.

Current Marketing Strategy of Shell

Pakistan Ltd
The current strategy of shell is concentrate on its business and
selected market areas. By using this strategy company expands its
business by upgrading petrol pumps in the country.
Especially they are concentrating in the following three areas:

 Customer Services

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 Brand Image
 Quality and quantity

Customer Services:
Shell Pakistan Ltd is working for customer satisfaction because
customers play a very vital role in the prosperity or failure of a
particular company. That is the reason that shell is operating with the
basic aim to satisfy its customers and provide better and better service
to its customer. In brief it can be said that shell gives a strong
emphasis on customer services.

Seven Steps for better Customer Services:

Every shell operation site follows the seven-point formula for providing
customer service to its customer is stated below:
1. As customer drive in, guide him to a vacant filing unit by a neatly
uniformed attendant of the petrol pump.
2. Then the attendant well comes to that customer from the driver
side.
3. Attendant takes the keys from the customer. After that the
attendant asks to the customer about the quantities of fuel.
4. The attendant shows meter reading before filing the fuel to the
customer.
5. After filling the tank attendant tells the customer to see the
meter reading and amount of liters, hands over the keys and
takes amount from customer.
6. Attendant asks to the customer that he would like to purchase
an international high quality of Rimula X.
7. Then the attendant cleans windscreen of the vehicle and say
good-bye with smile.
By this procedure customer feels that he is being given proper
attention and he will come again to the filling station to fill the tank of
his vehicle.

Brand Image:
The Second strategy of shell is creating a strong Brand image of the
company in the customer mind. In Visual terms, the installation of
Shell’s Retail Visual Identity (RVI) makes a striking and immediate
difference between shell’s gasoline stations and those of its
competitors, Pakistan state Oil (PSO) and Caltex. The RVI programmed
is massive, for the 1200 or so sites which shell inherited through the
take over, around two thirds are scheduled to be developed as RVI
sites, many of them being completely redesigned from the
underground storage tanks up. In addition, new sites are being
acquired in strategic locations.

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Quality and Quantity:

The third strategy of the company is to set standards for reliability and
honest dealing because it is fundamental to the company’s reputation.
For the improvement of quality and quantity following points are
important.

 Mobile Training units

 Quality and Quantity Control Units

Mobile Training units:

Mobile Training Units Visit sites keeping staff up to date on a whole
range of topics including most importantly, issues of health, safety and
environment. Mobile training units train the workers in different filling
stations.

Quality and Quantity Control Units:

Another mobile innovation cover fuels quality assurance, an area
where cynical disregard of standards, manifested by dilution of
premium grades with low-cost gasoline has become so common that
customers have given up complaining about it. Recognizing the
importance to the company’s reputation for delivering the right quality
of fuel, shell has introduced random gasoline testing forecast.
Technicians operate what are, effectively, mobile field laboratories,
testing fuels quality using an octane meter. According to shell, “ Fuel
Quality is fundamental to our reputation for honest dealing” Quantity
control units check that whether the retailers are giving the right
quantity or less quantity of fuel to the customers. The quantity is
checked through various instruments. The quantity control units also
check the digital pump.

Recommendations

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 There should be proper shades and proper sitting arrangements

at the filling stations.
 Lubricants should be disposed in a proper way to protect the
environment from being polluted.
 Shell should provide small incentive to its customers.
 Schemes like “buy 50 liters of super and get a cola drink free”,
should be kept introducing time to time.
 Shell should make company operation site in every city to
capture the new market.
 There is only one thing that is constant that is change; shell
should invest on research& development to cope with dynamic
environment.
 Company should establish new regional office to control the
activities of company operations.
 The company should provide the facility of free oil change on all
its outlets.
 Shell should develop modern retail outlets. These outlets should
have all possible facilities for customers because one of the
reasons behind decrease market share is modernization of
competitors.
 Shell should develop effective marketing programs that help the
company to increase sales that will lead to increase the market
share. In these market programs emphasis should be given to
advertising, which is the most effective and efficient tools of
promotion for such type of business.

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