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MKT 4220 Individual Assignment
MKT 4220 Individual Assignment
MKT 4220 Individual Assignment
Programme BBUS
Session JAN 2023
Lecturer DR ARASU RAMAN
Hand-out Date END OF 3TH WEEK Due Date END OF 10TH WEEK
Instructions *REPORT STRUCTURE:
Cover sheet to include:
Module title; Code; your Family name; your first name; student id; Report Title
You should also include a contents page.
You should follow a report structure using headings and sub-headings. Include
an appendix if necessary and a bibliography; these will not be included in the
word count. You must reference any sources of information used.
Make sure that the marketing theory learnt during the course is used to explain
parts of the research information gathered. Please make sure that you read
the assessment criteria so that you can see what criteria your work will be
marked against.
(Please refer to the attached document for the details of the Individual coursework specifications.)
Student’s declaration
I declare that:
I understand what is meant by plagiarism.
This assignment is all my own work and I have acknowledged any use of the
published or unpublished works of other people.
I hold a copy of this assignment which I can produce if the original is lost or damaged
Name/ID Signature
1. Lai Wen Bin I20018697
laiwenbin
Learning Outcomes Assessed:
LO1 Analyse the global marketing environment through the use of models and tools;
LO2 Evaluate and apply global marketing strategies, plans and tactics to a range of global marketing scenarios
TO BE COMPLETED BY LECTURER
GENERAL COMMENTS:
Penalty for late submission: 1 day – minus 20% of total mark awarded 2
days – minus 50% of total mark awarded
In this assignment, you are required to choose a multinational company with which
you are familiar to research and carry out the following tasks.
Tasks:
You are advised to gather information through the use of both annual reports and
other published sources about the company.
Identify the company’s market position and its strategy in the global marketplace.
You will need to gather information on its products, pricing, global communication,
and its location strategy.
Submission:
You must submit online via blackboard.
Failure to comply with any of the above will result in a penalty to your final grade.
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Assessment Criteria:
Evidence that the student has conducted thorough and additional search into the
company and competition using a wide range of sources.
Evidence that the student has understood and applied theory and international
marketing strategy to explain the marketing operations of the company across
boundaries.
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Table of Contents
Tasks:...........................................................................................................................................................2
Further information and guidance:.............................................................................................................2
Submission:.................................................................................................................................................2
Assessment Criteria:....................................................................................................................................3
1.0 Introduction...........................................................................................................................................5
2.0 Markets and Positioning........................................................................................................................6
2.1 Segmentation.....................................................................................................................................6
2.2 Positioning.........................................................................................................................................6
2.3 Market Strategies...............................................................................................................................7
3.0 Competitors and Competitive Position..................................................................................................9
3.1 Competitors.......................................................................................................................................9
3.2 Competitive Position.......................................................................................................................10
3.2.1 Strengths...................................................................................................................................10
3.2.2Weaknesses................................................................................................................................10
3.2.3 Opportunities............................................................................................................................11
3.2.4 Threats......................................................................................................................................11
3.3 Petronas Strategies...........................................................................................................................11
4.0 Marketing Mix Strategy.......................................................................................................................13
4.1 Product............................................................................................................................................13
4.2 Price.................................................................................................................................................13
4.3 Place................................................................................................................................................13
4.4 Promotion........................................................................................................................................13
5.0 Cross-Cultural Implication and Marketing Ethics................................................................................15
5.1 Cross-Cultural Implications.............................................................................................................15
5.2 Ethical Role in the World Market:...................................................................................................15
6.0 Recommended future marketing strategy............................................................................................17
7.0 Conclusion...........................................................................................................................................18
8.0 References...........................................................................................................................................19
9.0 Appendix.............................................................................................................................................20
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1.0 Introduction
The international oil and gas firm Petronas, also known as Petroliam Nasional Berhad, is
headquartered in Malaysia. It was founded in 1974, and the Malaysian government owns all of it.
One of Southeast Asia's major state-owned oil and gas enterprises, Petronas is a member of the
Fortune Global 500.
Petronas, an organization with vertical integration, is active in a number of facets of the oil and
gas sector, including exploration, production, refining, marketing, and petrochemicals. It
conducts both upstream and downstream activities, such as oil and gas exploration and
production, LNG production, petroleum product refining and marketing, and petrochemical
product manufacturing. Other economic ventures that Petronas is involved in include offshore
services and renewable energy, such as solar and wind power.
With operations in more than 50 nations worldwide, Petronas has a significant global footprint. It
has formed alliances and partnerships with foreign oil and gas firms, and its goods are offered in
marketplaces all over the world. Asia, Africa, the Americas, Europe, and the Middle East are all
regions where the corporation operates and makes investments.
Through its oil and gas operations, Petronas generates income for the Malaysian economy and
aids in the growth and development of the nation. The corporation also contributes significantly
to the growth of Malaysia's oil and gas sector by offering job opportunities, transferring
technology, and encouraging the expansion of local suppliers and contractors.
Petronas has put in place a number of programs to lessen its environmental effect, enhance
safety, and aid the communities in which it operates as part of its commitment to sustainability
and CSR. To improve its operational effectiveness, competitiveness, and sustainability, the
organization also places a strong emphasis on innovation and technology.
Overall, Petronas is a major player in the global oil and gas sector with a strong presence in
foreign markets and a dedication to ethical business conduct.
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2.0 Markets and Positioning
2.1 Segmentation
Petronas is a worldwide oil and gas firm that conducts business in numerous international
markets, including numerous continents, nations, and market niches. Here is a quick summary:
Africa: In addition to South Africa, Petronas also has business in Algeria, Angola, Gabon,
Mauritania, Mozambique, and Gabon. Due to their oil and gas deposits and the potential for
exploration and production activities, these markets are important to Petronas.
Americas: Petronas has financial holdings in nations like Argentina, Brazil, Canada, Mexico, and
the United States. In terms of downstream activities, such as the refining and marketing of
petroleum products, as well as exploration and production, these markets present prospects for
Petronas.
Europe: Petronas has operations in Europe, including nations like Norway and the Netherlands,
where it conducts downstream operations in addition to exploration and production activities.
Middle East: Petronas is engaged in exploration and production activities in the Middle East,
including nations like Iran and Iraq.
The segments that Petronas specifically works in include offshore services, liquefied natural gas
(LNG) production, petrochemicals, renewable energy (such as solar and wind power), and
upstream (exploration and production) of petroleum products.
2.2 Positioning
Petronas has a strategic approach to position itself in a variety of international markets as a
multinational oil and gas business. The positioning, market share, competitive advantages, USP,
and marketing tactics used by Petronas across regional markets and cultures are all examined
below:
Positioning: With a focus on providing dependable and sustainable energy solutions, Petronas
portrays itself as a major participant in the oil and gas sector. As essential components of its
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positioning approach, it highlights its technological know-how, innovation, and dedication to
sustainability. Petronas promotes itself as a socially conscious business by participating in
corporate social responsibility (CSR) projects and helping to advance the economies of the
nations where it conducts business.
Market Share: As the state-owned oil and gas firm of Malaysia, Petronas holds a large portion of
the market there. In addition, it has a significant presence in the markets in which it conducts
business, including Brunei, Indonesia, and Vietnam. However, the market share may change
between different markets, and Petronas is up against rivalry from other global and regional oil
and gas firms.
Petronas has a number of competitive advantages that help to shape how it is positioned in the
market. They consist of its integrated value chain, which runs activities from upstream
exploration and production to downstream refining and marketing of petroleum products, as well
as its proficiency in the manufacture of liquefied natural gas (LNG) and petrochemicals. Petronas
also reaps rewards from its solid financial standing, technological prowess, and long-standing
business relationships with foreign corporations.
Marketing Plans for Local Markets and Cultures: Petronas uses a combination of standardization
and customization techniques to tailor its marketing plans to the needs of regional consumers. It
understands the value of comprehending the particular requirements, tastes, and cultural quirks
of regional markets and adjusts its goods, services, and marketing messaging appropriately.
Customizing product offers to meet local demand, localizing marketing efforts to appeal to
regional culture and values, and participating in CSR projects that address regional social and
environmental issues are a few examples of how to do this.
In order to maintain consistency and coherence across all of its international activities, Petronas
also makes use of its worldwide expertise and best practices to standardize some elements of its
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marketing strategy, including brand positioning, corporate identity, and global communication.
This strategy enables Petronas to successfully compete in a variety of markets with differing
cultural and market dynamics. It enables it to achieve a balance between local relevance and
global consistency.
It's important to note that a variety of factors, such as market conditions, regulatory
requirements, the competitive landscape, and business objectives, have an impact on Petronas'
marketing strategies in local markets and cultures. These factors may change over time to
accommodate shifting market dynamics and consumer preferences.
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3.0 Competitors and Competitive Position
3.1 Competitors
Petronas, a large multinational oil and gas company, competes with a number of other businesses
in the same sector. Among Petronas' principal rivals on the international market are:
ExxonMobil Corporation: With activities all over the world, ExxonMobil is one of the biggest
international oil and gas businesses. It operates throughout a number of facets of the oil and gas
value chain, including petroleum product production, refining, and marketing.
Royal Dutch Shell plc: Shell is a significant multinational oil and gas business with operations
across more than 70 nations. It engages in a number of activities related to the oil and gas
industry, including as petroleum product production, refining, and marketing.
The exploration, production, and sale of oil, natural gas, and petroleum products are the core
businesses of Chevron Corporation, a major player in the global energy sector. It competes with
Petronas in the oil and gas sector and has a significant presence on several international
marketplaces.
BP plc: With activities in more than 70 countries, BP is a worldwide oil and gas business. It is
involved in a number of oil and gas value chain activities, including as petroleum product
production, refining, and marketing.
Chinese national oil and gas corporation CNOOC Ltd is a significant player in the exploration,
production, and sale of oil and natural gas. In some areas, particularly those in the Asia-Pacific
region, it competes with Petronas and has a global presence.
Gazprom PJSC: Gazprom is a state-owned, natural gas-related business in Russia that is under
state supervision. It is one of the biggest natural gas businesses in the world and competes with
Petronas for market share.
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These and other multinational oil and gas firms are a few of Petronas' primary rivals on the
international market. The oil and gas sector are highly competitive, with businesses vying for
customers, resources, and market share in a continuously changing international environment.
3.2.1 Strengths
Strong market position: Petronas, one of the biggest international oil and gas firms, has a strong
market presence, especially in the Asia-Pacific area.
Diversified portfolio: Petronas is able to operate along the whole oil and gas value chain because
to its diverse portfolio of upstream and downstream assets, which includes assets for exploration,
production, refining, and marketing of petroleum products.
Technical prowess: Petronas has made investments in cutting-edge technologies and innovation,
particularly in fields like deepwater exploration and production, enhanced oil recovery, and LNG
processing, providing them a competitive edge in the market.
Financial stability and resources to invest in strategic projects and competitive strategies are
provided by Petronas' solid financial position, which is reflected in its robust sales and
profitability.
3.2.2Weaknesses
Dependency on energy prices: Petronas' financial health and profitability are directly impacted
by the erratic nature of energy prices, which can have an effect on its earnings.
While having a footprint all over the world, Petronas is disproportionately concentrated in the
Asia-Pacific area, which could expose it to geopolitical and economic risks there.
Regulatory obstacles: Petronas works in a highly regulated sector, and adjustments to the
regulatory landscape, especially changes to environmental legislation, may have an effect on
company operations and expenses.
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3.2.3 Opportunities
Developing markets: Petronas has a chance to capitalize on the rising energy demand in these
regions, particularly in Asia, where rapid urbanization and economic expansion are driving up
energy consumption.
Renewable energy: As the world's energy environment transitions to cleaner and more
sustainable options, Petronas can examine prospects in renewable energy sources including solar,
wind, and biofuels.
Technological advancement: Petronas can keep making investments in new technologies to boost
its competitiveness in the market, increase operational effectiveness, and cut costs.
3.2.4 Threats
Competition is fierce: Petronas faces fierce rivalry on international markets from other
multinational oil and gas firms as well as regional and local players, which may have an
influence on its market share and profitability.
Geopolitical hazards: Petronas works in a number of nations with a variety of geopolitical risks,
including political unrest, governmental reforms, and trade conflicts. These risks could have an
effect on the company's operations and financial performance.
Environmental worries: Petronas' operations could be at risk as a result of the growing emphasis
on environmental sustainability and climate change. Tougher environmental rules as well as
shifting consumer preferences for clean energy could have an influence on the company's
business model.
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Operational effectiveness: In order to increase its competitiveness in the market, Petronas has
been concentrating on enhancing its operational effectiveness through cost optimization, process
improvements, and supply chain management.
Market diversification: To take advantage of new growth prospects and lessen the dangers
associated with geographic concentration, Petronas has been expanding its market footprint
outside of Malaysia and into other regions, particularly Asia and the Middle East.
Sustainable business practices: In order to better align with shifting consumer preferences, legal
requirements, and global sustainability goals, as well as to improve its corporate reputation,
Petronas has been implementing sustainable business practices, such as environmental and social
initiatives.
Partnerships and collaborations: In order to gain access to new technologies, Petronas has been
creating strategic partnerships and collaborations with other businesses, research organizations,
and governments.
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4.0 Marketing Mix Strategy
The marketing mix strategy employed by Petronas in the targeted markets and how it relates to
its positioning and worldwide marketing goals.
4.1 Product
Crude oil, natural gas, liquefied natural gas (LNG), petroleum products, and specialty chemicals
are just a few of the petroleum and gas products that Petronas supplies. In order to satisfy the
unique requirements of various markets and consumers, Petronas offers a wide range of goods in
its portfolio. For instance, Petronas prioritizes offering local people inexpensive and dependable
energy solutions in new countries, while emphasizing high-quality and ecologically friendly
products in mature regions.
4.2 Price
Petronas has a pricing strategy that accounts for a number of variables, including market
demand, rivalry, manufacturing costs, and legal obligations. In order to ensure profitability and
sustainability, Petronas works to keep its prices competitive. While Petronas may focus on
premium pricing in some regions to establish itself as a high-quality and dependable supplier, it
may also provide competitive price in some markets to increase market share.
4.3 Place
Petronas has operations in more than 50 nations throughout the world, including those in Asia,
Africa, the Americas, Europe, and the Middle East. Based on elements such as resource
accessibility, market potential, and strategic fit, Petronas selectively chooses its markets. Its
supply chain infrastructure and distribution network are well-established, ensuring prompt and
dependable delivery of its products to clients all over the world.
4.4 Promotion
Petronas advertises its goods and services in the markets it has selected through a variety of
marketing and communication methods. Public relations, sponsorships, internet marketing, and
conventional advertising all fall under this category. In order to improve the perception of its
brand and reputation, Petronas also takes part in corporate social responsibility (CSR) projects
that help local communities, education, and environmental preservation.
The positioning and goals of Petronas' global marketing program are aligned with its marketing
mix strategy. With the goal of providing dependable and sustainable energy solutions, Petronas
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wants to be a top international oil and gas business. Its marketing mix approach is built to meet
the unique requirements and preferences of various markets while staying consistent with its
overall brand identity and core values.
For instance, Petronas' emphasis on product customization and provision of a varied product
portfolio is consistent with its global goal of offering specialized energy solutions to various
markets. In order to retain competitiveness and profitability over the long term, it aligns its
pricing strategy with market dynamics, profitability, and sustainability. Petronas' goal of
providing dependable and prompt product delivery to clients globally is supported by its global
distribution network and supply chain infrastructure. Additionally, its marketing strategies, such
as CSR programs, digital marketing, and advertising, all support the improvement of its brand's
reputation as a good corporate citizen.
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5.0 Cross-Cultural Implication and Marketing Ethics
Being a worldwide oil and gas firm, Petronas' global marketing operations are impacted by a
variety of cross-cultural issues. Due to its operations in numerous areas and nations with a wide
range of cultural traditions, Petronas must carefully analyze how culture will affect its marketing
plans.
Moreover, Companies must take into account cultural variations in product preferences,
consumption patterns, and purchasing practices. For instance, there might be a preference for
alternative energy sources or a stronger focus on environmental sustainability in specific regions,
which could have an effect on Petronas' product offers, pricing plans, and marketing initiatives.
To properly customize its marketing strategy, Petronas must do in-depth market research and
comprehend the cultural nuances of each area.
According to its annual reports and other publicly available information, Petronas is dedicated to
CSR and sustainability. The business places a strong emphasis on its initiatives for social
advancement, community involvement, and environmental preservation. Petronas, for instance,
has carried out a number of environmental activities, including lowering greenhouse gas
emissions, putting environmental management systems in place, and funding renewable energy
projects. In the areas where it works, Petronas also takes part in social efforts such community
development programs, educational initiatives, and healthcare initiatives.
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Petronas also needs to ensure ethical marketing practices in its global operations. This includes
avoiding deceptive or misleading marketing practices, promoting fair competition, respecting
consumer rights, and adhering to local laws and regulations related to marketing and advertising.
Petronas should also ensure that its marketing strategies do not exploit vulnerable groups,
perpetuate harmful stereotypes, or promote unethical behaviors.
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6.0 Recommended future marketing strategy
The following suggestions for Petronas' upcoming marketing strategy can be made based on an
examination of its existing marketing tactics, its competitive position in international markets,
potential possibilities and difficulties, and more.
Product portfolio diversification: Petronas should think about expanding beyond conventional oil
and gas products and look towards prospects in renewable energy sources including solar, wind,
and hydrogen. This will make it possible for the business to adjust to shifting market dynamics,
rising worldwide demand for renewable energy, and legislative reforms targeted at lowering
carbon emissions. Petronas can use its knowledge of the energy sector to create creative,
sustainable solutions that fit with its goals for international marketing and present it as a
trustworthy, eco-conscious corporation.
Customization of Marketing Mix: Petronas has adopted a standard marketing mix approach in a
number of areas, but it may want to think about doing so in order to better cater to the unique
requirements and preferences of regional markets and cultures. This could entail customizing a
product's characteristics, pricing tactics, distribution methods, and advertising campaigns to meet
the specific needs and tastes of consumers in other locations and nations. To inform its
customization plans, Petronas can obtain market intelligence through market research, customer
insights, and feedback from local stakeholders.
Technology and innovation: Petronas should keep making investments in these areas to maintain
its competitive edge in international markets. To increase operational effectiveness, optimize
supply chain management, and enhance customer experience, this may entail developing and
deploying cutting-edge technologies like digitalization, automation, and artificial intelligence. To
take use of outside expertise and maintain a lead in technological developments in the energy
sector, Petronas might also look into partnerships and collaborations with startups, technology
businesses, and research organizations.
Sustainability and Corporate Social Responsibility (CSR): As part of its marketing plan for
international markets, Petronas should continue to give priority to sustainability and CSR
projects. This comprises social and environmental actions that support the business's principles,
worldwide marketing goals, and image as a good corporate citizen. It also involves proactive
environmental management. Petronas can use a variety of marketing tools, like as annual reports,
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social media, and corporate communications, to provide information about its sustainability
initiatives in an effort to improve its reputation with customers, investors, and other stakeholders.
Market intelligence and risk management are two areas where Petronas should continue to make
investments in order to proactively identify and solve potential opportunities and difficulties in
international markets. This entails keeping an eye on market trends, competitor activity,
legislative changes, geopolitical concerns, and other elements that could have an effect on the
business' marketing initiatives. To inform its marketing strategy, reduce risks, and improve
decision-making in international markets, Petronas can make use of data analytics, market
research, and risk assessment technologies.
7.0 Conclusion
In summary, Petronas operates in international markets with a strong market position and
competitive advantages as a multinational oil and gas firm established in Malaysia. With a
combination of customization and standardization techniques, it adapts its marketing strategies to
local markets and cultural norms while remaining consistent with its positioning and global
marketing goals. Product innovation, competitive pricing, effective distribution, and promotion
are the main goals of Petronas' marketing mix approach. By its commitment to corporate social
responsibility, sustainability, and ethical marketing practices, Petronas is committed to playing
moral roles in the global market. The company's global marketing operations have cross-cultural
ramifications.
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8.0 References
PETRONAS (2021). PETRONAS Integrated Report and Financial Report 2021. [online]
www.petronas.com/integrated-report. Available at: https://www.petronas.com/integrated-report-
2021/.
Porter, M.E. (1980). Competitive Strategy: Techniques for Analyzing Industries and
Competitors. New York: Free Press.
Kotler, P.T. and Armstrong, G. (2021). Principles Of Marketing, Global Edtion. S.L.: Pearson
Education Limited.
Keegan, W.J. and Green, M.C. (2017). Global marketing. Harlow: Pearson Education Limited.
Sak Onkvisit and Shaw, J.J. (2009). International marketing : strategy and theory. London ;
New York: Routledge.
www.matrade.gov.my. (2021). Malaysian Oil & Gas Companies Remain Relevant in The Global
O&G Industry - MATRADE. [online] Available at: https://www.matrade.gov.my/en/about-
matrade/media/press-releases/press-releases-2022/184-press-releases-2021/5509-malaysian-oil-
gas-companies-remain-relevant-in-the-global-o-g-industry.
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9.0 Appendix
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