PROGRAM PENDIDIKAN JARAK JAUH (PJJ)

PUSAT PENDIDIKAN PROFESIONAL DAN LANJUTAN (PACE)

UNIVERSITI UTARA MALAYSIA
SEMESTER APRIL SESI 2022/2023

BPMM3083 PEMASARAN SERVIS

NAMA PENSYARAH :
DR. INTAN SHAFINAZ BINTI AHMAD

TAJUK: CASE STUDY PETRONAS

NO MATRIK NAMA

268403 MISHALINI A/P VYTHILINGAM

276104 MUHAMMAD SYAIFUL NAZRIN SHAH BIN MOHAMMED

270541 MOHAMMAD RIDZWAN BIN ABDUL RAHMAN

TARIKH PENYERAHAN : 05 JANUARY 2023

Introduction

Petronas, which is an abbreviation of Petroliam Nasional Berhad, is an oil company and fully
Malaysian gas. This company was established on August 17, 1974. This company is fully owned
by the Malaysian government, this company has acquired the entire rights against oil and gas
resources in Malaysia and entrusted with the responsibility of developing and adding value to
those resources. (malaysiangas.com, 2018)

Fortune Global 500 has ranked Petronas as the 95th largest company in the world in 2008
and the 80th largest in 2009. It also ranks Petronas as the 13th most profitable corporation in the
world and the most profitable in Asia. Since its establishment, Petronas has grown into an oil and
gas company with business interests in 31 countries. As of the end of March 2005, the Petronas
Group contained 103 self-owned subsidiaries, 19 equipment companies and 57 associated
companies. Together this makes the Petronas group involved in various activities based on oil
and gas. The Financial Times magazine has identified Petronas as one of the "new Seven Sisters"
which are the most influential state-owned oil and gas companies outside the OECD
(Organization for Co-operation and Development). (utusan melayu (M) Berhad, 2018)

Petronas is constantly on the lookout for new prospects in energy potential across the world.
Petronas also maximizes value through its integrated business strategy. Petronas' portfolio
comprises higher-quality, safer conventional and renewable resources, as well as product
development and solutions to current adjustments. In reality, when it comes to utilizing the
goodness of energy to improve and enrich life's natural resources, sustainability is at the heart of
everything Petronas does. People are a driving force and good partners for growth as customers,
fueling the spirit to develop more to improve the sustainable energy future.

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1. Petronas Petrol services has been successful in Malaysia. Discuss TWO (2) services that
are being implemented by this fuel station that contributed to this success. Explain your
answer by giving relevant examples.

Petronas provides two main services . The group is focused on a broad spectrum of
petroleum activities, including upstream exploration and production of oil and gas to
downstream oil refining, marketing and distribution of petroleum products, trading, gas
processing and liquefaction, pipeline gas transmission network operations, marketing of liquefied
natural gas, petrochemical manufacturing and marketing, shipping, automotive engineering, and
real estate investment. National Petroliam Limited adds value to crude oil produced by
exploration and production operations through an integrated oil business that includes refining,
marketing, trading and retail operations consisting of various significant grades from various
regions of this crude oil that has been traded and marketed internationally and processed into
petroleum products for both domestic and export markets. Petronas owns and operates four
refineries with a capacity of more than 448,000 barrels per day. Petroleum products from this
refinery are marketed through a network of gas stations in several countries including Indonesia,
Malaysia, South Africa, Sudan and Thailand. (Iqram, 2018). Through the case quotes given by,
what can be explained as an example is that Petronas has branded Primax 3 petrol which is a
high performance fuel by increasing the engine's capacity. Primax3 products have also been
introduced in the international market. The company entered into an agreement for two new
exploration plots in Pakistan and started construction on the Chad-Cameroon Integrated Oil and
Pipeline Development Project. By 2002, Petronas had signed seven new production sharing
contracts (PSCs) and acquired stakes in eight exploration blocks in eight countries, including
Gabon, Cameroon, Nigeria, Egypt, Yemen, Indonesia and Vietnam. This shows that Petronas is
committed to providing the best service in an effort to maintain the brand and provide the best
service for the future.

In addition, the Petronas Company also provides a food and retail service called MESRA
Petronas stores. This includes providing kiosks for local traders or franchisees to market their
products. For example, Petronas has a collaboration with Antara Terbaik (AT) brand business,
Abdul Razak Osman and his wife Nur Hidayu Hilmi, which is their special product of pride,
Durian Crepe, continued to record an extraordinary increase in sales during the Covid 19

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pandemic. Razak and his wife joined PETRONAS Dagangan Berhad (PDB) as a Kedai Mesra
supplier in January 2021. Petronas Dagangan Bhd (PDB) seeks to grow its non-fuel portfolio
through the food and beverage (F&B) industry by opening 50 Cafe Mesra at Petronas stations
countrywide by the end of 2022. Azrul Osman Rani, Vice President and Managing
Director/Chief Executive Officer of PDB, said the opening of Cafe Mesra is another significant
achievement for the group in the retail segment, adding that the cafes are now strategically
located at 12 Petronas stations throughout the Klang Valley and Bandar Baru Negeri Sembilan.
However, the corporation may propose franchising the business to some of its dealer reps in the
future. Concerning relationship with other franchise cafe brands, such as Starbucks and Tealive,
both are critical partners for the firm. 

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2. Why is Petronas team up with local food and beverage players, banks and transportation
players to its convenience petrol station? Discuss TWO (2) reasons (10 Marks)

First, Petronas team up with local food beverage players, banks and transportation player
to its convenience petrol station because it can attract the customer to come more often to
their franchise because Petronas can be their closest store at their neighborhood. Petronas is
like a convenient store which a lot of food and beverage, bank service like ATM machine,
and many more service are provided here. Some of the Petronas station have a luxurious
facility that was provided at their store, such as Dunkin’ Donut, KFC, McDonald’s and
others. Other than that, Petronas also provide restroom, prayer room for Muslim to do their
prayer anytime. This is also known as marketing strategy.

Secondly, Petronas provide all the need for their customers’ convenience. Other than sell
petrol, they also sell many things that can give benefit to their customers. As for food and
beverage, it is for the purpose that the customer from the far away can get some for their
supper for long journey. They also provide air pump service for free in each station for their
customer to check their tires and increase its air pressure. This is a very good opportunities
for the customers to avoid any accident and as an attraction to visit Petronas. For teaming up
with the bank, the purpose of it is to help their customer to make any transaction without
going out to the bank. They can use ATM machine that were provided at the Petronas to
withdraw money or make a purchase through it.

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3. Discuss TWO (2) other possible services that Petronas can add in into their existing
services and the reasons why these services are being suggested. (15 Marks)

First, make a Car Service in Their Petrol Station. PETRONAS need to continue their Car
service in their petrol station because it became essential thing now days. They can make a
basic car service like an oil and filter change is one of the most important parts of a service
and is included in all services. An oil change is not just an oil change, it is preventative
maintenance to help keep your vehicle running right. Whether your vehicle needs
conventional, high mileage, synthetic blend or full synthetic oil, PETRONAS can put their
product in the line to make it cheaper than other 3rd party car service. During an oil change,
their technicians will change the oil filter, drain the dirty oil from your engine and replace it
with clean, new oil to keep customers engine running smoothly. This service can helps
customers save time and money by offering complete auto repair service in their petrol
station. There’s no need to go to the dealership when their mechanics can perform the exact
same repairs with lower price.

Second, Drive-Thru Car Wash. PETRONAS also can make a drive-thru car wash station
which is not very popular in Malaysia. Their petrol can make a collaboration with 3rd party
company like smart cyclone carwash. An open tunnel is typically used in these systems. Self-
service systems have a pressure sprayer, and sometimes a foaming brush, that always been
used like other car wash. The sprayer has a coin operated dial system to select the option you
want, such as "soap," "rinse" and "wax." A timer shuts the water off after a certain period of
time, at which point you must put in more coins if you want more water. Not many in
Malaysia gas stations have attached or detached garages that house automated car washes.
This opportunity can be made for the gas stations to offer car washes at discounted rates to
drivers who purchase their fuel there. A car wash can offer three or four different packages
ranging from a basic wash to a wash that includes a coating of wax and detailing of your
vehicle’s tires that customer can select. Its fast and conventional to customer especially in
this era where everyone it fast and can produce profit.

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4. Which provider gap do you think that Petronas should put more effort in closing it?
Discuss TWO (2) reasons why do you think so. (15 Marks)

Petronas should put more effort on Provider Gap 1, the Listening Gap is the difference
between customer expectations of service and company understanding of those expectations.
A primary cause in many firms for not meeting customers expectations is that the firm lacks
accurate understanding of exactly what those expectations are. Many reasons exist for
managers not being aware of what customers expect. For example, Inadequate customer
research orientation, lack of upward communication, insufficient relationship focuses and
inadequate service recovery.

The first strategy is to build relationships by understanding and meeting customer needs
over time. In firms where customers and companies have interpersonal contact, this means
anything from learning customers names to understanding business-to-business customers
clients, changing needs, and industries. Relationship marketing is a term used to distinguish
these activities from transaction focused efforts, but relationship marketing is typically an
interpersonal activity, carried out through contact people on the front lines of the service
firm.

Next strategy is to listen to customers in multiple ways through customer research and
employee upward communication. Listening to customers is about connecting with them. It
involves paying close attention to their needs and understanding how you can help them
achieve their goals. Emphasis was on traditional marketing research methods along with
methods uniquely useful in-service situations such as surveys, mystery shopping, and critical
incidents analysis.

To close the Listening Gap requires that management or empowered employees acquire
accurate information about customers expectations. Customer expectations must be assessed
accurately before new services are developed, and they must be tracked after the services are
introduced. Each of these strategies is covered in greater detail elsewhere and each is backed
by research and practical applications.

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 The final pivotal strategy for closing Gap 1 involves knowing and acting on what
customers expect when they experience a service failure. The importance of meeting
customer expectations following a failure is well studied and documented. In fact, according
to a recent study, 82% of customers said they would switch products or service providers
after a bad experience with the company's customer service department. (Bernazzani, 2021)

Conclusion

As a conclusion, Petronas branding has maintained its position as the world’s strongest oil and

gas (O&G) brand for the third consecutive year, according to the Brand Finance 2022 annual report on

the most valuable and strongest O&G brands. Not only for O&G, Petronas has also produced many other

product and services in worldwide and mainly in Malaysia. Petronas is collaborating with industry players

in pursuit of maximizing existing assets for better efficiency and cost optimization. However, every

company must have weaknesses, but these weaknesses can be overcome very well. As for example,

Petronas supports every country towards greenness and environmental sustainability, thus Petronas

increases the use of natural gas. We can also see based on this case study that the gap between Petronas

company suppliers is very small because of the applied business and marketing values that meet and

exceed the expectations of customers and the company itself.

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References

Bernazzani, S. (2021, June 15). Hubspot. Retrieved from hubspot.com:

https://blog.hubspot.com/service/listening-to-customers.

Iqram, F. (2018, september 8). analisis petronas. Retrieved from www.academia.edu:

https://www.academia.edu/30794554/analisis_petronas.pdf

malaysiangas.com. (2018, Jun 2). Retrieved from www.malaysiangas.com:

www.malaysiangas.com/portal/.../1409183629_Collateral.PDF

utusan melayu (M) Berhad. (2018, Jun 6). Retrieved from www.utusan.com:
http://www.utusan.com.my/bisnes/korporat/petronas-catat-pendapatan-rm223-6-bilion-
1.619471#ixzz5HTLdQ3kn

The Brief History and Background of Petronas, Retrieved from UKEssays :

https://www.ukessays.com/essays/business/the-brief-history-and-background-of-

petronas-business-essay.php

Case study of Malaysia's oil and gas company – petronas. Retrieved October 28, 2021,

https://static1.squarespace.com/static/5dd3cc5b7fd99372fbb04561/t/602cad5ef5b

ccd64b39ace5f/1613540720139/TWN+Petronas+Study

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