Fani Report

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    TABLE OF CONTENTS

    EXECUTIVE SUMMARY ................................. .......................... ........................... ........................... .... 1

    CHAPTER 1 ........................................................................................................................................... 3

    1.1 History of the company ........................... ........................... ........................... .......................... 3

    1.2 Vision Statement............................................................................................................................ 4

    1.3 Mission Statement ........................... ........................... ........................... ........................... ............. 4

    1.4 Values ........................................................................................................................................... 4

    1.5 Corporate Profile ........................................................................................................................... 6

    Figure 1: Hierarchy at PSO ......................... ........................... ........................... ........................... ........ 7

    1.6 Organizational Structure .................................................. ........................... ........................... ........ 8

    1.7 Departments .................................................................................................................................. 9

    1.7.1 Industrial Consumer Department .......................... ........................... ........................... ............. 9

    1.7.2 Training & Organization Development Department ......................... ........................... ........... 11

    1.7.3 Retail Sales Department ................................................ ........................... ........................... .. 11

    1.7.4 Brands Management Department .......................... ........................... ........................... ........... 12

    1.7.5 Operations Department............................ ........................... ........................... ........................ 13

    CHAPTER 2 ......................................................................................................................................... 15

    SWOT Analysis of PSO ......................... .......................... ........................... ........................... ........... 15

    2.1 Strengths: ........................ ........................... ........................... ........................... ........................ 15

    2.2 Weaknesses: ......................................................................................................................... 16

    2.3 Opportunities: ........................... ........................... ........................... ........................... ........... 16

    2.4 Threats: ................................................................................................................................ 17

    2.5 Conclusion ........................................................................................................................... 18

    2.6 Recommendations ................................................................................................................ 19

    CHAPTER 3 ......................................................................................................................................... 20

    MARKETING STRATEGIES ......................... .......................... ........................... ........................... .. 20

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    3.1 Marketing Mix ....................... ........................... ........................... ........................... .................... 21

    3.2 Advertising Agencies: ........................... ........................... ........................... ........................... ...... 22

    3.3 Assignments given at PSO ........................ ........................... ........................... ........................... .. 22

    3.3.1 Public Service Message 1 ........................ ........................... ........................... ........................ 22

    3.3.2 Public Service Message 2 ........................ ........................... ........................... ........................ 23

    MY EXPERIENCE DURING INTERNSHIP PROGRAM ......... .......................... ........................... .. 25

    Annex 1 ................................................................................................................................................ 26

    Annex 2 ................................................................................................................................................ 32

    GLOSSARY ......................................................................................................................................... 37

    EXECUTIVE SUMMARY

    PSO is the leading oil marketing company in Pakistan having the privilege of conducting

    the largest internship program in Pakistan, in fact very few companies in the Asia offers

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    anything comparable to what PSO offers. The internship program started from 21st of

    JUNE 2010 and lasted till 1st of August 2010.

    My six weeks internship at PSO mainly entailed two tasks, the Public Service

    Messages and Internship Video.

    The first public service message was primarily focused on the eunuchs (third gender)

    with the view to highlight the injustice they generally face due to the deviation from

    societal norms of the other two genders. The video was aimed to reveal the ordeals of

    their existence and in doing so liberating the thinking of those who look down upon them

    and treat them as an abnormality and sin. While shooting this video we faced a lot of

    difficulties due to the reluctance of the eunuchs and so called social bindings. The

    venture was however completed after lot of pursuance and offering little cash to them.

    The theme of the second public service message was to sponsor a child. In the video

    it was highlighted that instead of paying few coins as charity to the young beggars,

    making arrangements for their education is the help in real terms which can actually

    change their destiny. Education can bring the long lasting difference in the lives of the

    children, living below poverty line. Instead of promoting any particular organization, our

    video was aimed to create the awareness and importance for the need of Sponsoring a

    Child for Education.

    The major task was to develop a video about taking the internshipprogram as a

    separate brand of PSO and to promote it simultaneously. In order to keep the

    interest alive without compromising the objective, the thirty minutes video had to be

    informative and interesting. Our video primarily covered the activities of internees

    working in marketing, finance, health safety & environment, engineering, supply chain,

    human resource, corporate planning & new business development departments. My

    task was to find out, what their internship work exactly comprises of. Apart from taking

    video shots inside office premises , we also had to cover the internees working in the

    field i.e. petrol stations for the retail groups at customer appreciation day, the marketing

    groups survey on brand perception, the interns trip to the Lubricant Manufacturing

    Terminal and the Sea view.

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    We decided to go for a movie-like theme for our internship video; it commenced with the

    exposure of an ex-internee, cherishing the days of his internship at the PSO. The movie

    further proceeded to display the activities of the interns working in various departments.

    To add humor and to make the video more interesting, a PSO version of American Idol;

    a music video with an all-intern cast and a slide show of photographs with a nostalgic

    note was shown towards the end.

    CHAPTER 1

    1.1 History of the company

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    In 1976 three companies, Dawood petroleum, ESSO & Pakistan National Oil joined

    together to form PSO. The organization consist of Board of Management, Managing

    Director, Management Committee, Executive Committee, Code Leadership Team,

    Employer Leadership Team & nineteen individual departments working under them. 1

    1.2 Vision Statement

    To excel in delivering value to customers as an innovative and dynamic energy

    company that gets to the future first.2

    1.3 Mission Statement

    We are committed to leadership in energy market through competitive advantage in

    providing highest quality petroleum products and services to our customers based on:

    y Professionally trained, highest quality, motivated work force, working as team in

    an environment, which recognizes and rewards performance, innovation and

    creativity, provides for personal growth and development.

    y Lowest-cost operations and assured access to longterm and cost effective

    supply sources.

    y Sustained growth in earnings in real terms.

    y Highly ethical, safe, environment-friendly and socially responsible business

    practices.3

    1.4 Values4

    1. Excellence

    y Passion for customers

    1Pakistan State Oil, viewed 3

    August 2010, http://www.psopk.com/about_us/

    2Pakistan State Oil, viewed 6August 2010, http://www.psopk.com/about_us/vision_mission_values.php

    3Pakistan State Oil, viewed 6

    August 2010, http://www.psopk.com/about_us/vision_mission_values.php

    4Pakistan State Oil, viewed 6August 2010, http://www.psopk.com/about_us/vision_mission_values.php

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    y Total Quality Management

    y Corporate Leadership

    y Cohesiveness

    y Teamwork

    y Effective Communication

    2. Respect

    y Respect for individuals

    y Valuing Contribution

    y Equal Opportunity

    3. Integrity

    y Business Ethics, Honesty

    4. Innovation

    y Creative Ideas

    y New Products and Processes

    5. Corporate Responsibility

    y Health, Safety, Environment

    y Community Development

    Ever since PSO revamped its image, it has aimed to provide its customers with an

    image that conveys a progressive and environmental friendly organization. This is also

    indicative in its new corporate logo:

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    The logo consists of three colors, Green, Blue and Yellow. The letters PSO and the

    underlying crescent are green in the color, portraying national colors of the Pakistani

    flag, portraying it as a patriotic and domestic organization.

    The blue background of the logo depicts the color of the sky, the yellow sunlight

    indicates PSOs link with the nature. The logo conveys that the organization is

    completely conversant with environmental needs, and its operations are conducted in

    the most eco-friendly manner.

    1.5 Corporate Profile

    PSO is the market leader in Pakistans energy sector. The company has the largest

    network of retail outlets to serve the automotive sector and is the major fuel supplier to

    aviation, railways, power projects, armed forces and agriculture sector. It is the largest

    oil marketing company in the country and is currently engaged in storage, distribution

    and marketing of various POL products. It has the status of being the first Pakistani

    Public Sector Company to become a member of the World Economic Forum (WEF),

    and winning the Karachi Stock Exchange Top Companies Award making PSO a

    notable company world over.

    With its 3612 distribution outlets, PSO has the largest network in the country. Out of

    these, 1,610 outlets have been upgraded as per the New Vision Retail Program. These

    included the most modern facilities like electronic dispensing units, convenience stores,

    business centers, Easy Payment Centers and customer friendly staff to provide

    unmatched and diverse services to its customers, all of which are comparable to

    international practices.

    PSO serves 2.8 million retail customers on daily basis, along with 2000 industrial units

    and business houses. The company has also been meeting the fuel needs of various

    government entities, armed forces, railways, agriculture sector, IPPs and industrial

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    units. PSO also provides Jet Fuel to Refueling Facilities at nine airports in Pakistan and

    ship fuel at three ports.

    In July 2002, PSO Loyalty Cards were introduced to reward the retail customers for

    their loyalty and patronage towards the company. In February 2003, PSO launched its

    Fleet Cards and Corporate Cards, which are fuel-based credit cards for the business

    entities. These cards along with the companys Prepaid Cards provide convenience,

    flexibility and security to customers, while enabling them to earn redeemable loyalty

    points and avail attractive discounts on non-petroleum products.

    PSOs leading retail brands include:5

    y Premier-XL (petrol with multi-functional additive),

    y Green-XL (environment friendly diesel with an additive that provides more

    mileage, smooth running & less black smoke),

    y Deo (diesel engine oil)

    y Carient (passenger car motor oil).

    Figure 1: Hierarchy at PSO6

    5Pakistan State Oil, viewed 3August 2010, http://www.psopk.com/products_services/

    6Qureshi, Irfan. Personal Interview. 26 July 2010

    Board of

    Management

    Managing

    Director

    Management

    Committee

    Executive

    Committee

    Code Leadership

    Team

    Employee Leadership

    Team

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    1.6 Organizational Structure

    Organizational structure of PSO is based on the concept of diffused management. Each

    of its department like marketing, human resources department industrial commerce,

    finance lube sales agency, operations are headed by general managers. General

    Managers are working under the control of deputy managing directors.

    Overall Company works on decentralized system except few matters, which are

    important and are centrally decided. The company has board of directors, which

    consists of chairman and other members.7

    7Pakistan State Oil, viewed 7August 2010, http://www.psopk.com/about_us/board_management.php

    CorporatePlanning

    Procurement

    Services

    Legal Affairs

    Corporate

    Communication

    Marketing

    Retail

    Business

    ConsumerBusiness

    Aviation,

    Marine,

    Exports

    Chemicals

    Corporate &

    Fleet Cards,

    Brand

    Management

    Lubricants

    Supply Chain

    Operations

    Supply

    Logistics

    Construction

    & Retail

    Facilities

    Finance &

    Finance

    IT &Communi

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    1.7 Departments

    Departments that were under my observation during internship program.

    y Industrial Consumer Department

    y T&OD Department

    y Retail & Sales Department

    y Brand Management Department

    y Operation Department

    1.7.1 Industrial Consumer Department8

    Industrial consumer department deals with the direct consumers, which are big

    organizations and purchase oil from PSO in bulk form for final consumption. There are

    about 43 contracted companies some of them are given below.

    y Pakistan Railway

    y Pakistan Army

    y KESC & WAPDA

    y Tapal Energy

    y Gul Ahmed Energy

    y Japan Energy

    y Kohinoor Energy

    y Pakistan Steel

    y Sitara Energy

    y HUBCO

    y Cement Industry

    8Askari, Nihal. Personal Interview. 30 June 2010

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    y Sugar Industry

    Zonal Heads constantly co-ordinates with clients of a particular zone. Sindh and

    Balochistan come under South zone. Punjab lying under central zone and NWFP

    concerns with North zone.

    There are many types of machines and engines that are used in different factories,

    having various characteristics, according to these characteristics the manufacturer of

    these engines and machines recommend a particular type of oil to be used which are

    generally called lubes. The general formula for lube is Base oil + Additives = Lubricants.

    To obtain these oils, the companies issue tenders to all oil marketing companies like

    PSO, Shell & Caltex. Each company fills the tender with minimum prices. The tender

    opening ceremony held at Islamabad. Tender goes to those who have offered lowest

    prices.

    The Shell and Caltex are major competitors of PSO, because of multinational

    corporations, they have many branches all over the world and set the prices with lowest

    margin and compensate the loss by other branches. Despite these problems PSO has

    won many contracts. The major consumer's i.e. Pakistan Army, Pakistan Navy, Pakistan

    Steel, Pakistan Railway and many IPP's are contracted with PSO.

    After winning the contract a copy of order sent to the blending plants, which include the

    contract no. and type of product. The blended product is tested by PSO owned

    Laboratories and sample is sent to the customer. Customers again test it in their own

    Laboratories or in an independent Laboratory called HDIP (Hydro Carbon Development

    Institute of Pakistan). In case of recommendation the delivery to the customer starts.

    y Industrial Consumer department sales at least 210-liter drum of product and pays

    freight if there is a consignment of at least 50 drums.y PSO Markets 72% of total product through industrial Consumer department.

    y SLS-37 is a form contains the details of customer, which includes RTD (Round

    Trip Distance) from depots, what they are producing, where product is to be

    delivered.

    y Customer code is issued to each customer.

    y Except lubes the government sets the prices of product.

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    The prices are amended by Govt. notification called PS-48, the copy of amended prices

    is sent to the terminals and one copy to the customers.

    1.7.2 Training & Organization Development Department

    The Training Division in PSO had been there for a long time since 1979. However, it

    was renamed as the Training and Organization Development Department in the year

    2000 by the company's management to peruse its NEW VISION Concept.

    As a part of the radical organizational changes that came in PSO, after its revamping as

    a company with international standards, a new management was brought in the T&OD

    too. The vigilant team of T&OD is now headed by the GM T&OD, Mr. Vaqar .A. Khan,

    who along with his vibrant training officers, have proven to be strategic businesspartners and have been contributing tremendously in materializing the Company's NEW

    VISION Concept in its true essence.9

    T&OD Vision

    Our Vision is to come in line with the overall Company's vision of having a skilful and

    motivated workforce that works for the mutual advantage of themselves and theCompany, ensuring an enhanced level of performance.10

    T&OD Mission Statement

    To bring about a planned change in the organization through human resource

    dynamics and continuous training to ensure sustained improvement.11

    1.7.3 Retail Sales Department

    The automotive or retail network of the company is the visible part of the operations of

    Pakistan State Oil in the eyes of public. It is also the most costly both in terms of capital

    9Khan, Vaqar. Personal Interview. 28 June 2010

    10Khan, Vaqar. Personal Interview. 28 June 2010

    11Khan, Vaqar. Personal Interview. 28 June 2010

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    outlay and in maintenance. PSO operate approximately 3610 fuel pumps around the

    country near 270 outlets in Karachi alone. This makes PSO the largest oil marketing

    company in the country both in terms of size and volume. PSO has recently invested

    billion of rupees in upgrading its distribution network and in building the image in the

    mind of the customer. PSO in the near past was subject to major criticism although

    having the highest share in the market nearly 72% for its low quality service and fuel

    quality in comparison to other oil marketing companies.12

    It is these retail outlets that the quality of products supplied to the customer is really

    subjected to close scrutiny. They are selling the company name, the quality backed

    PSO and the service which PSO personnel delivering while the transactions takes

    place.

    These Gas stations need proper maintenance regular supervision, frequent checkups

    from the company representatives at frequent interval. Proper maintenance not just

    include that fuel pumps are working in order but rather insuring that each and every

    aspect of service being provided from the fuel station are in perfect condition. This

    would help customer enjoy their transaction with the company, maximize customer

    satisfaction and automatically generating repeated sales.

    As part of the work in retail department we were also required to go to outlets with sales

    officers and gained first hand experience in the skills utilized in selling lubes and fuel to

    different dealers.

    We learned the approach used by the sales officer in their interaction with the dealers

    and procedure of how the order is taken and the delivery conformed. I also noticed that

    the sales officers have taken keen interest in improving the service and cleanness of

    their areas outlets in order to increase the sale of the outlet under their supervision. The

    job description for sales officers includes constant interaction with the dealers who can

    sometimes pose to be quite difficult, hence it is a challenge managing them and getting

    things to run smoothly.

    1.7.4 Brands Management Department

    12Shah, Asif Ali. Personal Interview. 15 July 2010

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    Mr.Aziz A. Khan gave us a brief overview of the department and interesting discussion

    on branding and its significance was carried out. It was more of an interaction session in

    which our contribution and opinions were also encouraged.

    Some of the important points of the discussions are given as follows.

    Branding however is not only confined to advertising. It is also associated with

    packaging. Innovative and distinctive packaging provides the brand with a competitive

    edge and positive association with which quality can also be created. This helps to

    reinforce the promise of the brand to deliver the best quality every time. The main aim

    behind advertising the PSO brand is to differentiate it from the other OMCs especially

    SHELL the archival of PSO. This is especially the case as the product being dealt withhomogenous product. Advertising results in higher recognition and recall, a more

    distinct brand positioning and stronger brand equity.13

    The New Vision outlets that have been created with an investment of Rs. 20 million

    each, also contribute to building a stronger brand because these outlets have strong

    associations of a modern, efficient image, speedy service, well-trained staff, cleaner

    premises and a more congenial environment. All this adds to brand equity and customer

    loyalty. All these elements differentiate the new vision outlets and also resonate with thecustomers making the program a successful one.

    1.7.5 Operations Department

    Operations dept: provide the operational facilities. There are 9 installations and

    28depots through out the country. Oil is reached at terminals by through pipelines and

    at depots by tank lories, where oil is stored for temporary period.14

    Annual financial estimation for the construction and repairing of pipelines, storage tanks,electrical work, look after the machines, generators, storage tanks and pipelines etc are

    done by this dept:

    13Khan, Aziz. Personal Interview. 31 July 2010

    14Hassan, Zahid. Personal Interview. 30 July 2010

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    How much distance should be between tanks? Tanks and buildings are also measured

    by this dept: terminal B & C storage or product is explosive and harmful.

    Company is needed of how many storage tanks? What should be height, capacity and

    how much storage there for particular time is required to provide the customers? aredone by the same dept: but they do not store the product for annual period.

    The designing of new petrol pumps, the choice of new area, expenditure, size, budget

    estimation and all other facilities are provided by this dept: but the finance dept: pay this

    amount and the construction is done by the construction dept: There are two types of

    budget.

    1) Capital Budget (annual)

    2) Revenue Budget

    This budget is used at daily or monthly bases, for sudden repairing, all the bills of

    electricity, new building color, instrument of the lab and the specific particular of

    the Petrol Pumps. Purchase dept: purchases all things like computers and otherequipments.

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    CHAPTER 2

    SWOT Analysis ofPSO

    2.1 Strengths:

    2.1.1 Storage Capacity:

    Being the oldest and having adequate resources at its disposal, PSO has more

    storage capacity of oil and lubricants compared to its competitors in Pakistan. It has the

    storage capacity of 350000 tons while shell has the storage capacity of only 70000 tons.

    2.1.2 Maximum Number of Outlets:

    The company has the largest infrastructure and it holds the maximum number of

    outlets i.e. 3610 on its inventory to attract more customers. Its biggest competitor i.e.

    Shell has only 1200 outlets at its disposal.

    2.1.3 Man Power:

    The company boosts to be the biggest employer in its own field, giving it a definite

    edge over its competitors in the area of human resource management. Employees are

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    the only type of resources which cannot be copied and recruiting the best and in more

    number is its strength.

    2.2 Weaknesses:

    2.2.1 Government Pressures:

    Being a government owned organization; PSO management at times has to scum

    to the politically motivated pressures, forcing them to take the decisions which are

    commercially not viable. As last this year Pakistan witnessed the worst shortfall of

    energy, under these circumstances PSO was pressurized to supply fuel to government

    energy plants on credit and as such its liabilities increased.

    2.2.2 Slow Up- gradation:

    Most of the pumps and Inventory Carrying Systems are still operating manually.

    This laps and lack of up-gradation has resulted into increased operating cost and

    decreased profits. Though there profits are increasing but at a decreasing rate.

    2.3 Opportunities:

    2.3.1 Government Investments:

    PSO gets priority in government sponsored schemes therefore receives moreinvestments in the state owned projects. The reason is that being the only national

    petroleum company, PSO gets preferences.

    2.3.2 Bio-Diesel Project:

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    Being the pioneer & the only investor in bio-diesel project in Pakistan the company is

    exploring the possibility to use it to its fullest advantage in terms of generating additional

    revenue. It will decrease their production cost and such the selling price will also be

    reduced as compared to its competitors. Under these circumstances the company can

    attract more customers then its competitors.

    2.3.3 Alternate Means of Transportation:

    The oil pipeline being laid between KPT & Port Qasim Karachi has substantially

    reduced the transportation cost of the company having direct bearing on its profit

    margins. With the installation of pipelines the dependency on vehicles for transport is

    reduced and it is one time cost. Moreover the pressure through pipelines can be

    controlled and with the passage of time average production cost will also decrease.

    2.4 Threats:

    2.4.1 Policy matters:

    Lack of consistency in policy matters, law & order and political condition of the

    country has direct impact on the future of the company. Whenever a new government

    comes, prominent changes in the administration take place and as such a lot of time is

    wasted in adjusting and understanding the new system.

    2.4.2 Natural disasters:

    The recent floods have damaged the pipelines of PSO nation wide, causing huge

    financial loses to the company.

    2.4.3 Outstanding Payments:

    The outstanding bills of government owned companies i.e. WAPDA etc have

    adversely affected the balance sheet of the company. Currently only WAPDA has to

    pay Rs.136 billion to PSO.

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    2.4.4 New Entrants:

    Risk of forward integration of supplier is another threat to PSO. The PARCO, one of

    the main POL product suppliers to OMCs, has adopted the forward integration strategy

    by commissioning its own OMC with TOTAL and named it as TOTAL-PARCO. Thisventure alone has adversely affected the operations and profit of the PSO.

    2.4.5 Lack of Funds:

    In order to keep pace with diversified and rapidly changing technologies, lot of

    funding is required which is unfortunately not available. Due to the non-availability of

    required funds company will not be able to capture the market share in the field of

    lubricants.

    2.5 Conclusion

    Pakistan State Oil is playing an important role in the economic development of the

    country. PSO is not only a national marketing company but also serves as vehicle of

    government energy policy. PSO not only shoulders the responsibility of meeting the

    petroleum needs in all sectors of economy and defense but also undertakes all

    measures for the conservation of energy by reducing stocks, trans-shipment in handling

    losses. PSO is supplying oil in even those areas where other companies have refused

    due to security reasons.

    My pre-conceived ideas about the company have remarkably changed after spending

    six weeks with it as an internee. I have found it to be very organized and professionally

    focused. Despite being a government owned company, PSO has successfully managed

    to develop a corporate culture, giving it a definite edge over other government

    organizations. Specific job description facilitates the employees for enhanced

    productivity and efficient working. Responsibilities are clearly marked and defined by the

    management giving due leverage to the employees to excel in the areas of their

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    specialties. A well defined performance and seniority based promotion policy is a vibrant

    tool to keep the incentives alive.

    The company has also improved its products and adapted selective marketing

    techniques like fleet and corporate loyalty cards. Meeting national objectives can be

    termed as a significant hallmark of the company as nation wise it is the sole fuel

    provider at nine airports. The company has another distinction of reaching out the earth

    quake effected areas during 2008. PSO further consolidated its patriotism by ensuring

    uninterrupted fuel supplies to its defaulters i.e. WAPDA, KESC etc so that a common

    man does not feel the crunch.

    2.6 Recommendations

    y In order to built customers confidence, quality and quantity must be ensured by

    the company by upgrading its dispensing units, aggressive checking and taking

    due steps to eliminate the possibility of adulteration.

    y The ambiance of the outlets must be competitive to its rival companies.

    y The customers can further be attracted by the provision of additional facilities i.e.

    service station, tuck shop, oil changing facility, wash room, tire shop and mosque

    etc.

    y Pump attendants must be well dressed, well behaved and properly trained as

    they are the front line brand ambassadors of the company.

    y Instant prizes should be offered to the customers instead of long awaited prize

    schemes i.e. Haj and Umra visas as the customers may lose their interest.

    y The media advisors should launch the campaigns more vigoursly keeping in view

    the latest market trends.

    y Quick and prompt decisions should be taken by the management to resolve the

    problems initiated by the outlets, like machine disorder, supply management etc.

    y The PSO should take advantage of government policies like import duty

    relaxation and also offer the provision of CNG to its customers.

    y Sign posts indicating the distance and direction of the outlets to be placed on the

    highways for commuters.

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    y It should be ensured that eatables and other commodities being sold at the tuck

    shop are of good quality, hygienic and of reasonable price.

    y Safety and security measures meeting international standards must be adopted

    at the outlets.

    y The lubricants and other items required to be sold at the pumps must be

    displayed prominently and professionally.

    y Incentives should be offered to the employees as well as to the customers and

    schemes like target oriented bonuses and Customer of the Month can be

    used.

    CHAPTER 3

    MARKETING STRATEGIES

    PSO has now moved into the new era where petroleum product has been now treated

    as a FMCG. Its all about marketing. The company cannot create demand but can shift

    demand towards itself. There is no as such segmentation as far as fuel is concerned,

    but services are targeted towards different segments. PSO introduced the concept of

    Fleet Cards and there target markets are different companies. You can get that card

    and fuel on behalf of that card for the whole month on credit and then can clear the bills

    at the end of month. Similarly a common man is a target market for Corporate Loyalty

    Card and it offers the same service as that of the Fleet Card, the only difference is that it

    is for an individual car. Similarly there are different kinds of lubricants, each targeting a

    different target market. There major target markets are the truck drivers. The same

    product line has then so many different versions like for 3000CC vehicle, for 800CC

    vehicle, for CNG running vehicles and so on.

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    As far as promotion is concerned, the company believes in aggressive promotional

    activities and those activities are aimed at shifting the demand of the customers of other

    petroleum companies.

    As far as pricing is concerned, being the national company PSO has always tried to

    offer lower prices of lubricants as compared to its customers. While for the fuel the price

    is set by government.

    3.1 Marketing Mix15

    y More emphasis was given to the advertisements through Billboards, TV.

    Commercials, Electronic and print media.

    y A sizable amount was kept in the budget for sponsoring road signs.

    y Following sponsorships were made:

    1. ITCN exhibition.

    2. BBC Hard Talk Show.

    3. Cricket tours.

    4. Golf tours.

    y More eye catching and colorful banners have replaced the old banners.

    y

    New Logo indicating companies vision and its concern about environment havebeen introduced.

    y More innovative sales promotional campaigns like PSO LOYALTY CARD have

    been introduced for motor gasoline, diesel and oil users.

    y Safety awareness drive has been launched by the company and the messages

    relevant to the safe driving have been displayed at the outlets.

    y To attract the customers, company is making a serious endeavor to improve the

    packing of its lubricants.

    y Pakistans largest logo tower has been constructed at Rawalpindi railway station

    by the PSO.

    y PSO is using the event of Basant for its marketing by distributing kites to its

    customers at various outlets.

    15Khan, Rifat Ali. Personal Interview. 8 July 2010

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    y PSO is striving hard to upgrade its lubricants in order to compete and acquire its

    due market share.

    3.2 Advertising Agencies:16

    Following advertising agencies are on its panel:

    1. CMC 7. Argus

    2. Orient 8. BBCL

    3. Interflow

    4. IAL

    5. Fourays

    6. Mass

    3.3 Assignments given at PSO

    Public Service Messages

    y Eunuchs (third gender)

    y Sponsor a Child

    3.3.1 Public Service Message 1

    The Third Gender:

    Our first public service message was regarding the third gender or Eunuchs. Our video

    aimed at highlighting the ordeals of living the life of an outcast, the misery that has

    become a way of life and the mistreatment that the normal of our society deem the

    Eunuchs only entitlement. Robbed of even the basic necessities of life, the eunuchs areforced on to the streets resorting to beggary and prostitution as their means of earning a

    livelihood. The public service message aims to voice a topic that is considered taboo in

    our parts of the world, bring out the harsh realities and thus create empathy for these

    16Kumar, Aneel. Personal Interview. 16 July 2010

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    people who because of their deviation from the gender norms arent even treated as

    humans.

    We came up with this particular topic after putting forth various ideas involving the

    environment, road safety etc, but decided to go with the one on the eunuchs because it

    is a subject people would rather keep in the dark because of societal taboos and thus

    rendering it a non clich. To shoot are video we had to hit the streets looking for

    eunuchs that would be willing to be filmed for our video. This actually was the most

    difficult part as most of the eunuchs refused to be filmed on the pretext that we have to

    take permission from their head. After determined pursuance and offering financial

    compensation they finally agreed to be filmed for our public service message. It starts of

    by stating what the society considers a norm when it comes to gender, and how the

    eunuchs are pushed into a grey circle completely ignored by society. The clips that

    follow show their life at their streets which basically consists of beggary and prostitution.

    Dignity is a concept quite unknown to them. While some of these clips may be harsh

    and bitter yet they are only aimed to create a feeling of empathy. The eunuchs are

    suffering a fate worse than that of animals and are deprived off the basic necessities of

    life. Our theme therefore is that the third gender while regarded as abnormal is still

    human and ought to be treated as human. Our public service message ends with the

    tag line which reads:

    3.3.2 Public Service Message 2

    Sponsor a Child:

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    Objective: To develop a public service message for PSO that can be used by the

    company to create awareness on social issues.

    Detailed Methodology

    After successfully developing first public service message, our group proceeded to

    undertake the second social message. The group initially deliberated on various social

    issues that our country is facing. It was felt that education is vital for the progress of any

    society, it was therefore decided that the message should be based on for making

    education more accessible to the children who are less privileged and are part of the

    lower middle class of our society. The inspiration was taken from the Citizen Foundation

    which is already working on to the concept of sponsoring a childs education. We

    genuinely felt that if the more fortunate shoulders the responsibility of a childs

    education, illiteracy rate in the country can be substantially reduced. Upon this concept

    our tag line was developed which reads; Sponsor a Child- Your Helping Hand Can

    Change a Life.

    To begin with, the script of the message/advertisement was written and reviewed. The

    ad show a representing many other children similar to him, working in streets to earn

    livelihood for them and their families. Children belonging to this particular class dont

    have the means and resources even to pursue their primary education. The main

    character of our public service message is a young boy of 6years compelled to work as

    a windscreen cleaner on the road signal of Karachi. The boy haling from a very poor

    family is apparently going to face the similar fate of his father. Being caught in the

    vicious circle of poverty he cannot attend a school. A man pays him for cleaning his car

    windscreen but it wont be enough to permanently alter his state. However if the child is

    provided with education he can hope for a brighter future. We focused on the fact that

    members of the society can help build their future if they took the responsibility to

    provide for their education. We showed this in our ad by that man enrolling a poor child

    in a school.

    In order to show that if each of us should take the responsibility of a childs education so

    that the society as a whole can progress we showed each of our group members

    holding the hand of a child. This was a reflection of our tagline. (Sponsor a Child-

    Your Helping Hand Can Change a Life)

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    In addition to it we were also given tasks to carry out the research regarding customer

    perception about PSO & to arrange for an event named Customer Care Dayat different

    outlets of PSO in Karachi. Apart from this we also arranged for an event to collect

    money in order to give charity, mainly to MANZIL FOUNDATION & also to other small

    organizations. We collected Rs.0.5 million.

    MY EXPERIENCE DURING INTERNSHIPPROGRAM

    PSO is known for its internship programs which actually inspired me to go all the way to

    Karachi and learn new things. Internship programs are basically designed to give a

    practical exposure to the students of what they have studied in their class rooms and

    books. The experience by itself was a pleasant surprise which was full of learning,

    meeting new people and understanding corporate culture. Throughout the course of my

    internship I was encouraged and guided by my supervisory staff. There professional

    handling and trust made me to excel for continuous improvement and simultaneously

    gave me the confidence to accomplish my projects as a winner.

    The objective and can-do attitude that I developed working on stretched and tedious

    projects helped me to convert my opportunities into strengths. It can also be termed as

    a period of self-discovery where it was revealed that how far I can go, an estimate that I

    have been revising to this day because of the new spirited attitude towards life.

    PSO stands as a company having its own culture, professionalism and strong ethics.

    Equity and mutual respect are the core values which I greatly cherished. The company

    offers a very well-defined and structured internship program providing great

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    opportunities of learning. My experience as an internee with PSO can be summarized to

    be very befitting, fruitful and useful.

    During our internship we also carried out a survey regarding customer perception about

    PSO. For this we first designed a questioner and then we were assigned a certain

    number of questioners as well as areas in which we have to conduct the survey.

    The time given to us was of 8 hours. We got those questioners filled from common

    persons using the vehicles. A consumers suggestions are the most important for

    improving the product quality an as such it highlights the importance of conducting

    marketing research.

    We also carried out for another activity regarding finding out the common mistakes

    taking place in communication with in the departments. For this we interviewed different

    employees of PSO and then got all the questioners filled with the help of their answers.

    The questioners which we designed and got filled are attached at the end of this report.

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    Annex 1

    Questionnaire

    ________________________________________________________________

    1. On an average how many times do you visit a petrol station

    _______Once a weak

    _______Twice a weak

    _______Thrice a weak

    _______Other Please specify

    2. Which petrol station(s) do you mostly visit

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    _______PSO

    _______SHELL

    _______Caltex

    _______PSO and Shell

    _______PSO and Caltex

    _______Caltex and Shell

    _______Any other

    3. Whydo you generally visit the above mentioned stations

    PSO Shell Caltex

    Better fuel quality

    Convenience of location

    Better service

    Availability of credit facility

    Relationship

    Urgency rather than preference

    4. How do you rank the overall service level of each of the following (Just Tick)

    PSO Shell Caltex

    Excellent

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    Good

    Satisfactory

    Bad

    Worse

    5. Please identify the status of the below mentioned services

    Want it Dont

    want it

    Use Dont

    use

    A Oil change O

    B Air/Tyre facility A

    C Drinking water D

    D Convenience stores C

    E Toilets T

    F CNG G

    G Workshops W

    H Car wash CW

    6. In your opinion at which patrol station fueling time is appropriate ?

    _______PSO

    # Services Cod

    e

    Aware Unaware

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    _______Shell

    _______Caltex

    7. Which fuelcompanyis reliable in your opinion ?

    _______PSO

    _______Shell

    _______Caltex

    8. What is the service level ofpump attendants in your opinion at : (Just Tick)

    Very helpful Very helpful Very helpful

    Helpful Helpful Helpful

    Unconcerned Unconcerned Unconcerned

    Unhelpful Unhelpful Unhelpful

    Very unhelpful Very unhelpful Very unhelpful

    9. Please complete according to the Legend given below each box :

    (Ifusage status is NO then proceed to question 6 )

    PSO Shell Caltex

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    A B C D E

    Usage

    status

    Where do

    you avail

    these

    services

    Satisfaction

    Level

    Reasons

    for not

    using

    Want to use

    in future

    Oil change

    Air/tyre facility

    Drinking

    water

    Convenience

    store

    CNG

    Workshop

    services

    Car wash

    Toilets

    Legend Yes(Y)

    No(N)

    Shell(S)

    Caltex(CX)

    PSO(P)

    Completely

    satisfied(1)

    Satisfied(2)

    Neutral(3)

    Dissatisfied(4)

    Completely

    Satisfied(5)

    None(1)

    Know

    now(2)

    Use

    Other(3)

    Yes(1)

    No(2)

    Not

    concerned(3)

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    10. In your opinion, which fuelcompany, gives the best customer service.

    _______PSO

    _______Shell

    _______Caltex

    Annex 2

    Questionnaire

    Name:

    Name Of The Firm:

    Designation:

    1) Do you set aside adequate time for a meeting with your subordinate?

    YES NO

    2) Do you practice Management By Wandering Around (getting out of the office and

    talking to the subordinates as they do their jobs)?

    YES NO

    3) How do you communicate with your subordinates?

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    Directly(face to face)

    Indirectly

    Through Memos/announcements

    4) While giving instructions do you prefer going into details?

    YES NO

    5) Do you repeat your instructions more than once?

    YES NO

    6) Do you take direct feedbacks from your subordinates about how they feel

    about the situation in general?

    YES NO

    7) Do you give constructive feedbacks to your subordinates so that theycan

    improve theirperformance?

    YES NO

    8) Does yourboss give youclear andprecise instructions?

    YES NO

    9) Is your boss a good listener?

    YES NO

    10) Can you freelydiscuss yourproblems with yourboss?

    YES NO

    11) Are you free to make suggestions at your work place?

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    YES NO

    12) What is the most common source of miscommunication in your organization?

    Physical Distractions

    Mixed Messages

    Use of Complex Statements

    Language Differences

    13) How can organizational miscommunication be avoided? (You can tick more than

    one option)

    Good Managerial skills

    Giving frequent feedbacks

    Active listening

    Good conversational skills

    How much time is used up on average in getting the correct message across?

    5min

    10min

    15min

    20min

    How much cost on average is incurred due to miscommunication?

    5%

    10%

    15%

    20%

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    How important is the use of email in communications in the company?

    Fairly important

    Very important

    Important

    Not important at all

    How strong are horizontal communication channels?

    Very strong

    Fairly strong

    Strong

    Weak

    How strong are vertical communication channels?

    Very strong

    Fairly strong

    Strong

    Weak

    How often are open meetings held in the organization?

    Everyday

    Every week

    Every month

    Only sometimes

    What are the means of feedback in the company?

    Via email

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    By phone

    By memos

    Direct response

    Are there precautions against communication noise in your company?

    Yes No

    How rich are the communication channels?

    Very rich

    Rich

    Lean

    Very lean

    Would you agree that noise hinders most of your communications?

    YES NO

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    GLOSSARY

    CMC: Corporate & Marketing Communications.

    IAL: International Advertising Private Limited.

    BBCL: Big Bang Communications Limited.

    ITCN: Information Technology Commerce Limited.

    T & OD: Training & Organization Development.

    IFEM: Inland Freight Equalization Margin.

    OMC: Overseas Employment Corporation.

    PQA: Port Qasim Authority.