JETTI

SITUATION ANALYSIS
A. Company and Product History

Jetti Petroleum Inc. is a Filipino- owned company that has been importing,
blending, distributing and retailing petroleum products.

It was formed on April 5, 1998 under the Jetti Corporation located at 18th
Avenue, Camarilla St., Murphy, Cubao, Quezon City. On May 2001, the
company transferred its business address to Nagtahan Bulk Terminal at
Pandacan, Manila to sustain its growing network of gasoline stations and to
ensure that there will be enough and steady supply available for customers.
The facility is consist of six vertical storage tanks and can handle up to six
million liters of fuel. By 2002, the local government of Manila issued an
ordinance of closure of all the fuel terminals in Pandacan, including the bulk
terminal of Jetti, for safety and health reasons.
 SITUATION ANALYSIS
• products
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B. Product Evaluation: SWOT Analysis

Strengths:
1. Its current price for its products is considerably lower
than its competitors.
2. Their crews are well and properly trained when it
comes to handling their customers.
3. They offer fast service.
4. They are committed to the customer’s total
satisfaction.
 SITUATION ANALYSIS
• Weaknesses:
1. It is relatively new in the market.
2. Customers are not much aware of their
competitive advantage.
3. The company uses a non- beneficial and
obscure consumer differentiation.
4. Fuel availability in each branch is limited
 SITUATION ANALYSIS
Opportunities:
1. They have situated their gas stations far from
their major competitors but near to their target
customers.
2. They are not only able to entertain upper
class customers but the middle class as well.
3. Jetti uses a Non- beneficial and Obscure
Product differentiation because of the threats
they are facing.
 SITUATION ANALYSIS
Threats:
1. Their competitor can develop a new strategy
faster in terms of handling consumers
2. Their competitors might develop a new
product that will surely compete to the Jetti’s
present products.
3. Their competitors may build their new
gasoline stations near Jetti to compete with
them.
 SITUATION ANALYSIS
Differentiation:
Jetti uses a Non- beneficial an Obscure
Product differentiation because:
1. They have a very little differentiation among
its competitors.
2. They almost have the same services.
3. Their strategies are almost identical.
4. They target almost the same market groups.
 SITUATION ANALYSIS
C. Consumer Evaluation
1. Consumer Make- up:
Group 1: Group 2:
Age - 25- 40 Age - 40 - 65
Sex - Both Sex - Both
Income - P 5, 000 and below Income - P 10, 000 above
Education - High school graduate Education - College
Graduate
Social Class - Middle Class Social Class - Upper Class
Family Size - 4- 8 Family Size - 3- 5
Geographical - Suburban Geographical - Urban
Product User - Regular buyer Product User - Frequent Buyer
Lifestyle - PUV Drivers Lifestyle - Professionals
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2. Segment Markets:
Geographical Segmentation
The customers of Jetti are either located in urban and
suburban because they target two major markets: the
upper and the middle class who, of course, owned or
operated vehicles, either for private or public
purposes. Urban may include the customers who live
in condominiums or in the major residences around
the metro, while suburban may include living in
middle- class subdivisions or in minor areas around
the metro.
 SITUATION ANALYSIS
Product User Segmentation
The target markets of Jetti are either a regular customer or
frequent users. Usually, the regular customers of Jetti are
the public transportation drivers or delivery vehicle drivers.
They usually became a regular customer because Jetti
offers a price lower than its competitors. That is why they
prefer to buy fuel that will not be greater than their budget.
The frequent users of the products are the upper class
groups. This group, however, owns private vehicles and can
choose their preferred gasoline stations. They just might
drop to Jetti for emergency purposes just like they run out of
fuel and they have no choice but to buy fuel in Jetti.
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Lifestyle Segmentation
Just like what stated above, usually, the customer of Jetti are
the public transport drivers and the delivery vehicle drivers. This
group belongs to the middle class. They usually prefer Jetti because
of its location, services and price. Usually, Jetti offers their product
in a low price but with the same quality. Jetti’s location is accessible
to them since they are located along the way. The professional
group, however, has enough income and can afford almost any
gasoline station they prefer or they have chosen to patronize. They
usually do not base their purchasing behavior in price, but on the
quality and benefits that the product can offer. It is also possible that
they choose Jetti as their gasoline station, and it is important for
Jetti to keep these customers in purchasing and loyal to the station.
 SITUATION ANALYSIS
•  
• 3. Positioning
• Jetti positions itself as a low- price, high- quality and service-
oriented gasoline station. They offer a low- price gasoline but
without sacrificing the quality. They have their own version of
unleaded motor gasoline and diesel. These products are
developed in an earth and environmental- friendly manner in
accordance to Republic Act 8479- Downstream Oil Industry
Deregulation Act of 1998, Republic Act 8749- Philippine Clean
Air Act of 1999, and Republic Act 9367- Biofuels Act of 2006.
They also offer other service such as car- washing and car-
repair.
•  
 SITUATION ANALYSIS
Competitor Evaluation
Primary Competition
Caltex
It has been in the Philippines
for eighty- nine years. It
includes the Star Mart,
located in their stations. In
2006, the Caltex Philippines
Inc. changed to Chevron
Philippines Inc. Despite of
the change, the commitment
of the company was still the
same as before. It is also
known to provide satisfying
service for the customers.
Petron
It is the biggest oil refining
and marketing company in
the Philippines. It offers a
full range of petroleum
products. They operate a
refinery in Limay, Bataan
with a capacity of 180, 000
barrels a day. They move
their products by sea to the
32 major oil depots around
the country.
Shell
It has been the most
patronized gasoline station
in the Philippines. It has
been in the Philippines for
more than a century. It is
expected to generate
substantial income for the
government of the
Philippines and reduce the
reliance of imported fuels up
to 30%. It is also expected
to provide environment-
friendly petroleum products.
 SITUATION ANALYSIS
Secondary Competition
Unioil Liquigaz Flying V

It came to existence on It is the fastest growing LPG Opened its first station in
1966; it has led a way in Company in the Philippines. 1997 at Hagonoy, Bulacan.
innovative petroleum Its operation started on They have been one of the
solutions and establishing 1995, and currently the top 150 corporations in the
itself as a highly innovative second largest LPG supplier Philippines for three
business partner for in the Philippines. Their consecutive years. Their
specialty oils, fuels and market share is 25% of the market is being serviced thru
lubricants. country’s total LPG demand. the supply chain of a string
of eight depots and
terminals around the
country.
 MARKETING GOALS
Short Term
Jetti expects to improve the performance of their staffs
through vigorous training, and reinforce the customer
relationship through giving quality service that will satisfy
their current and possible target customers. And be able to
appeal to its current target market more by launching its
media strategies.
Long term
Jetti expects to gain added brand value from their
customers and associates. Although Jetti is one of the
popular in the oil industry locally, it aims to be the leading
oil retail company in the Philippines.
 BUDGET
The budget for the creative strategy is Php 3, 681, 470 which is about 1.08% of the company’s total sales. Budget Allocation
TVCs
Print Ads
Internet Banner Ads
Radio Ads
Outdoor & Transit Ad
ADVERTISING RECOMMENDATIONS

A. Target Market
1. Demographic Profile
Jetti targets two market groups: the middle and
the upper class. The middle class are consists of
public transport drivers and delivery vehicle
drivers while the upper class are consists of
professionals or people who have enough
income who has the ability to own a private
vehicle.
ADVERTISING RECOMMENDATIONS

2. Psychographic Characteristics
The middle class is usually the regular
customer of Jetti. This market group finds
Jetti as accessible, offer low price gasoline
compare to its competitors without
sacrificing the quality. Jetti also has well-
trained crews that earn a positive image
toward the company itself.
ADVERTISING RECOMMENDATIONS

B. Advertising Objectives
In the first year we want to capture 10% of
the market in six cities. Our goal is to be
profitable in this country within 6 months. We
want to increase sales with this product to
the point where profits reach $150,000 per
month, and do this in 12 months.
• Persuade 40% of prospects to request
product fact file.
ADVERTISING RECOMMENDATIONS
C. Creative Strategy
• To be responsive to customer’s needs, profitable in its
undertaking and socially responsible while endeavoring to
implement positive development in the petroleum industry.
• To create maximum value for our partners and customers
by being efficient and reliable in providing the energy that
improves the quality of life of the public in general.
• To become one of the preferred providers of petroleum
products in the market through its seal of quality products
and services at affordable prices found at convenient
locations.
ADVERTISING RECOMMENDATIONS
D. Executions
The following are the existing advertising vehicles being
used by Jetti:
• Internet Advertising
• Sales Promotion Advertising
• Brochure and Catalogs
• The following would be the future advertising strategies:
• Television Commercials
• Print Advertisement
• Radio advertisements
 V. MEDIA RECOMMENDATIONS
• A. Media Objectives
Jetti Corporation will be focusing on the competitive
advantage of the firm in terms of pricing its products
compared to its competitors. The company also
aims to be viewed as a one who implements superb
customer care through its polite staffs. It aims to
target Filipinos of the middle class group, aged 18
to 65 years old, Public utility vehicle service
providers, and the middle class family who wants to
purchase gasoline in a reasonably affordable price.
ADVERTISING RECOMMENDATIONS

B. Media Strategy
Jetti Corporation would be using the following media
vehicles along with a specific objective for each
vehicle to support its current media objective stated in
the preceding item:

• Television- The television ads will be shown in two of

the largest television stations in the country (GMA &
ABS-CBN), to be able to communicate properly the
underlying message of Jetti to its current customers.
ADVERTISING RECOMMENDATIONS

• Radio - Radio advertisements will be used since

one of our primary target markets will be public
utility vehicle service providers such as jeepney,
van and bus drivers who use the fm radio network
as a past time during their shifts in the road. The
company will be using the radio station network:
Energy fm 91.5, Monster Radio 93.1, and 101.9
since their positioning strategies and media
association appeals to the middle class most
especially to the public utility vehicle service
providers.
ADVERTISING RECOMMENDATIONS

• Newspaper - Newspaper ads will not be used since

most of the target market do not purchase
newspapers nowadays and relies on the fm radio
station to provide news and current events to them.
• Magazine - Magazines will not be used since most
of the viewer share of the magazine industry for
cars do not focus much on the middle class
market, therefore using it as a medium will only
jeopardize our efforts to create an effective and a
right on target message.
ADVERTISING RECOMMENDATIONS

• Internet - The company currently has a

website of its own to advertise its current
achievements and products but will only
be improved to create added customer
value it will be given a special customer
care section to improve its customer care
system.
ADVERTISING RECOMMENDATIONS

• Outdoor and Transit Ads - The company oil

delivery truck will be painted with a friendlier
and customer oriented design.
Regular jeepneys will also be placed with
loyalty stickers.
• Direct Mail - Direct mail will not be used
since the target markets mostly do not stay
at home to be able to have the luxury of time
to view such mails.
ADVERTISING RECOMMENDATIONS

• Print Ads - Wil be used to support the

TVC’s to be released
ADVERTISING RECOMMENDATIONS
• Media Schedule
The following is the proposed Media Plan for 2011:

Media Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Vehicl
e

Radio

Televis
ion

Interne
t
Outdo
or and
transit

Print
Ad
 INTEGRATED MARKETING
RECOMMENDATIONS
A. Sales Promotion
1. Sales Promotion Objectives
• To promote sales, increase net shares,
increase sales, return on investment
(ROI), and to create awareness.
• To encourage repeat purchases and
multiple purchases.
• To re-create brand loyalty.
 INTEGRATED MARKETING
RECOMMENDATIONS
2. Sales Promotion Strategies
• To position Jetti Petroleum as one of the
preferred providers of petroleum through
various contests and promotions.
• To promote Jetti Petroleum through repeat
purchase incentives (freebies)
• Cash incentive or discount for
accumulated purchases.
 INTEGRATED MARKETING
RECOMMENDATIONS
3. Sales Promotion Execution
Radio
• Energy fm 91.5, Monster Radio 93.1, and 101.9 For Life f
m to broadcast a short thirty second advertisement about
our products, services and promos.
 
Internet
• The company will be adding an interactive section in its
local website to cater to its target market in the professional
group. It will also launch a special feedback mechanism to
cater to its customer’s wants, needs and suggestions.
 INTEGRATED MARKETING
RECOMMENDATIONS
• The company oil delivery truck which is seen in
different areas in the country will be painted with its
current customer care objective ultimately
attracting customers to view the trucks as message
deliverers’ not just ordinary plain boring big trucks.

• Jeepneys will also be placed with loyalty stickers

where in accumulation of a number of a number of
purchases of a certain product the customer gets
added incentives.
 INTEGRATED MARKETING
RECOMMENDATIONS
Television
• Television ads will be shown in two of the
largest television stations in the country (GMA
& ABS-CBN). This will communicate properly
the customer care message of the company of
helping its customers to move forward. Its
TVC’s will be focusing on the fast paced
modern changes in the country wherein Jetti
aids its customers in their day to day activities.
 INTEGRATED MARKETING
RECOMMENDATIONS
B. Public Relations Recommendations
1. Public Relation Objectives
• To increase awareness of our products.
• To develop sound customer relationships
in an environment of care is established
and communicated.
• To be able to communicate its pricing
advantages and benefits to customers
 INTEGRATED MARKETING
RECOMMENDATIONS
2. Public Relation Strategies
Strategy 1: Get media coverage featuring
Jetti’s products and services.
Strategy 2: Get related social sites in the
niche to mention Jetti’s website.
Strategy3: Increase communication with
customers to keep them coming back.
 INTEGRATED MARKETING
RECOMMENDATIONS
3. Public Relation Execution
Radio Broadcast
The company will be airing informative radio ads to encourage
customers to repurchase and develop brand equity; it will also be
used to encourage them to join the company’s current sales
promotional strategies.
Social Networking Sites
Have facebook, twitter and other social network account that is
linked to the main website where the company can communicate in
real-time with its customers.
Outreach Program
Tie up with Jollibee in their outreach program and other non-
government or any government organization as well.
 CONCLUSIONS
Consumers in this era are extremely sensitive - as
they must be - to demographic, political,
technological and economic developments.
Environmental changes most affect strategic
perspective. With respect to the marketing mix,
price in the oil industry is a key factor. For
example, competition with major and other
independent players is through prices to compete
at the budget end of the market even though
these companies have the same products.
 CONCLUSIONS
An effective marketing program brings
together all of the elements of the
marketing mix to achieve company’s
marketing objectives by delivering to
customers what they want and need.
Thus, the most successful companies will
be those that can meet these needs most
effectively.
 RECOMMENDATIONS
Since the company is only new in the industry, we
recommend that Jetti use marketing schemes
where the focus lies on their competitive
advantage among its competitors. The firm
should focus on strategies that will appeal to
niche markets and from there, grow the potential
market share of the company through sales
promotions, superb customer care and other
incentives that ultimately aims o develop brand
equity between the consumer and the firm.