CARIENT MOTOR OIL

MARKETING PLAN

nS a : hm By e n e rR itt r U W b BA) (KU) RA e se ur I ah (I Q a m r H kk h a e S # w A (Su rish una e h a) ui" Se ba M ty) n Q ( i o rka a To i ers umar ' T k n S U no! ity) ABI r Ma i ers i (S& e ) % na Un a# a a M r : i $a o ( T e" t roo tin) t i a bm % $ arke i Su m M m a s # t Mu ri*an ) T b 'u RI,+A

ik h a h

MARKETING PLAN

CARIENT

TABLE OF CONTENT

CONTENTS
1. Executive Summary 2. Introduction & History o Pa!istan State Oi" #. $rie History in c%rono"ogica" order &. 'ision & (ission ). Introduction o Product *. Industry +na"ysis ,. Current (ar!et situation ,.1 ,.2 ,.# ,.& (ar!et situation Com-etitor +na"ysis .istri/ution Situation Product Situation

Page #

2 # # & 5 * , 7 , 10 10 10 11 11 11 11 11 12 12 12 1# 1& 1) 1)

1. S2OT +na"ysis 3. O/4ectives 10. (ar!et strategy 10.1 10.2 10.# 10.& 10.) 11.1 11.2 11.# Target (ar!et Positioning Statement Product "ine Price .istri/ution Story $oard Print +d Sa"es Promotion

11. +dvertising

12. 5ecommendations

Haseeb, Tooba, Sehrish, Manoj, Faraz

Page 2

MARKETING PLAN

CARIENT

EXECUTIVE SUMMARY
In order to progress, every country requires a proper source of energy, to strengthen and energize all the sectors responsible for development. Pakistan State Oil, the largest energy company of Pakistan, is fuelling all the major sectors including automotive, aviation, rail ays, po er projects, industries and agriculture sector, thus steering the national economy to ards progress and stability. !ith e"tensive reach from #arachi to #hyber, PSO is effectively fulfilling the responsibility of driving the nation to ards gro th and development. Pakistan state oil is largest marketing oil company in Pakistan and also among the top $%%% largest companies in &sia. Pakistan state oil as set up in 'ecember () th $)*+ through the merger of ,SSO undertaking ith the Pakistan national oil limited -P.O/0 and premier oil company limited -PO1/0. 2he document is a marketing plan for ne ly launched products of PSO that are 1&3I,.2 synthetic and semi synthetic. It covers the brief introduction of P&#IS2&. S2&2, OI/ its history then it goes for an introduction of a product for hich the marketing plan is ritten. It also covers the analysis of lubricants industry, competitor analysis, current market situation and the marketing strategies for the ne ly launched product. 2he plan also got some recommendations from our side in the end to make the product even more successful than it is.

Haseeb, Tooba, Sehrish, Manoj, Faraz

Page

MARKETING PLAN

CARIENT

INTRODUCTION AND HISTORY:

PSO started its operations in $)*+ hen it as ne ly established, and as took over by the government in the first month of the ne"t year, and government took some measures in merging the P.O -Pakistan .ational Oil0 and 'P/ -'a ood Petroleum /imited0. 2hen after several time it as renamed and finally today is kno n as PSO -Pakistan State Oil0. 'ue to effective implementation of the rules, standards and the effort e"erted by its employees made it to reach and sustain its position in the market. .o PSO is considered as the market leader all over the Pakistan. PSO is the leading oil marketing company around &sia, having a profit that totals in trillions. !hen it comes to PSO there is no risk of default, as the company is semi4government, partially run by the private and partially by the government. 5overnment6s finance has been a supporting all for the company to achieve the share and profit it al ays desired.

Brief his !r" i# $hr!#!%!&i$'% Or(er:

)'#*'r" 1+ 1,72he federal government took over the management of P.O -Pakistan .ational Oil0 and 'P/ -'a ood Petroleum /imited0, renamed into PO1/ -Premier Oil 1ompany /imited0 under marketing of Petroleum Products -7ederal 1ontrol &ct, $)*80

)*#e .+ 1,72he government incorporates 9Petroleum Storage 'evelopment 1orporation6 PS'1

A*&*s /0+ 1,7.

PS1'1 renamed to State Oil 1ompany /imited -SO1/0

Se1 e23er 15+ 1,7.

2he 5overnment purchases ,SSO undertakings, vests their control in SO1/

De$e23er 00+ 1,7.

2he 5overnment merges P.O and PO1/ into SO1/ -State Oil 1ompany /imited0 and renames it Pakistan State Oil 1ompany /imited -PSO0

1,,,
2he ne vision program is launched ith the ne logo of PSO4

Haseeb, Tooba, Sehrish, Manoj, Faraz

Page !

MARKETING PLAN

CARIENT

!hile talking about the business, PSO is having capability to compete ith the lubricants market. PSO is currently offering a ide range of products that includes engine oils for cars, bikes, trucks, generators and gear oil. :usinesses include CARIENT Fully Synthetic, CARIENT Ultra, CARIENT Super, CARIENT Plus, CNG Plus, PREMIERE 30/ 0, an! "#A$E t, T%&'STR&(E, )E& *000, )E& +000, )E& 3000, )iesel #u,e, GENERAT&R-S &I# an! GEAR &I#4

Visi!#
2o e"cel in delivering value to customers as an innovative and dynamic energy company that gets to the future first.

Missi!#
!e are committed to leadership in energy market through competitive advantage in providing the highest quality petroleum products and services to our customers, based on; Professionally trained, high quality, motivated orkforce, orking as a team in an environment, hich recognizes and re ards performance, innovation and creativity, and provides for personal gro th and development /o est cost operations and assured access to long4term and cost effective supply sources Sustained gro th in earnings in real terms <ighly ethical, safe environment friendly and socially responsible business practices

Haseeb, Tooba, Sehrish, Manoj, Faraz

Page "

MARKETING PLAN

CARIENT

INTRODUCTION OF 5RODUCTS
CARIENT FULLY SYNTHETIC:
1&3I,.2 7ully Synthetic received &PI -&merican Petroleum Institute0 for matching ith the international quality standards. &merican Petroleum Institute guarantees the quality of the product. 1&3I,.2 fully synthetic has the follo ing attributes; &PI; S.=17 S&, -Society of engineers0; >!48% S#?s; $, @ and 8 liters Aodels; from (%%*4(%$( Aileage; up to $(%%% kms Aake; Aercedes :enz, :A!, /e"us, Aazda 3B, <onda &ccord and all those vehicles that lie in this category of &PI /evel SA or S. and S&, standards of >!4(% to >!48% is recommended.

CARIENT ULTRA:
CARIENT ultra is the second most recent launch by PSO. It has the following attributes

&PI; SA=17 S&, -Society of engineers0; $%!48% S#?s; $, @ and 8 liters Aodels; from (%%(4(%$( Aileage; up to C%%% kms
Aake; !onda Ci"ic# !onda City# Toyota corolla# $it%# Nissan Sunny# &itsubishi 'ancer# Swift and other

vehicles that lies in this category of &PI /evel SA and S&, standards of $%!48% is recommended

Haseeb, Tooba, Sehrish, Manoj, Faraz

Page #

INDUSTRY ANALYSIS
2he rapid rise in the number of vehicles out there on the roads and the follo ing increase in the countryDs po er sector demand hich played a huge role in keeping PakistanDs lubricant industry afloat. Pakistan is a very profitable and vibrant market for lubricant producers as the consumption patterns have been on a steady high in the recent past. 2he demand has not been rising at a rapid pace, but is still enough that the e"isting lubricant procures does not produce enough products to cater for the local market demand. 2he overall demand of lubricant products in Pakistan stands around @%%,%%% liters, only half of hich is met through local production. 2he other half is unavoidably filled through imports from various parts of the orld. &nd the demand has not been inactive and indeed has itnessed a sharp flo in the recent past, making the market more competitive ith every passing day. 2he gap in the local market has invited many international lubricants players to enter in the Pakistani lube market. It is considered the most beneficial PO/ category. &lthough the industry is very attractive but the t o loopholes in the system has been hindering the gro th of the industry. 2hese t o loopholes are high import tariffs and lube smuggling hich should be handled ith care in order to make the industry more strong. & vertical analysis of the company market share provided by the Oil 1ompanies &dvisory 1ommittee- O1&10 sho s a considerable jump in Pakistan state OilDs -PSO0 market share, hich increased by @%% basis points. PSODs gain turned out to be SP/Ds and 1P/Ds loss, the market share of hich dipped by (%% and @%% basis points, respectively. 'omestically produced lube fulfilled )CE of the demand locally hile (E gap as filled by importing the lubes. 2he only domestic base oil source, .ational 3efinery /imited produced $**,)$+
tons of lubes during 7F$%, hich as *E higher than the last year. 2he players in the industry are very positive about the future of the lubricants market in Pakistan as it is a highly profitable business as the companies can earn more margins. 2he demand in the future ill keep on increasing for the upcoming years so all is going in favor of the lube industry. 2he future of the industry is very secure and is backed up by favorable policies by the authorities. 2he financing of cars by the banks is also favoring the increment in the lube market gro th.

Mar$e%ing P&an For CARIENT

Page '

CURRENT MAR6ET SITUATION

MAR6ET SITUATION:
2he lubricants of PSO are performing significantly lo er than shell and 1alte" on follo ing specific attributes; $. Packaging (. Purchase Intentions @. Galue for Aoney 8. &dvertisements

1urrently the lubricants market is dominated by the lube brands of Shell and 1alte". 2he PSO lubricant CARIENT is far behind its major competitor Shell but its market share has increased from the last fiscal year. 2he market giant is shell having 8(E share in oil market and 1alte" is behind it ith (CE share. PSO share is almost ()E in the market. :ut they are not the only competitors of PSOH the local lubricants manufacturers are also capturing a good amount of market share hich is another threat to PSO.

COM5ETITOR ANALYSIS:
PSO serves a large variety of fuel all over Pakistan. PSO has many competitors in the oil industry. PSO seeks to compete fairly and ethically in the market. PSO main competitors are Shell, 2otal, 1astrol, 1alte", Iic and Aobil.

SHELL:
Shell lubricants are global market leaders and their three major /ubricant brands are Shell <eli", Shell 3imula, and Shell &dvance, have all earned the super brand status not just globally but also in Pakistan here they are currently market leaders across passenger cars, heavy duty vehicles and bikes. 2he Shell /ubricants business prides itself in being the market leader in introducing innovative, technically superior products such as Shell <eli" ?ltra. 2he Shell lubricants for cars hich are competing ith PSO lubricants are;

<eli" ?ltra ,> 4@% -7ully Synthetic0

Mar$e%ing P&an For CARIENT Page (

 <eli" ?ltra > 48% -7ully Synthetic0 <eli" <B> $% 48% -semi synthetic0 <eli" <B> 5 $% 48% -semi synthetic0 <eli" <B* , > 4@% -semi synthetic0 <eli" <B* <eli" Plus $% 48% -Synthetic 2echnology0

CALTEX:
1alte" has been providing quality lubricants for engine protection to the car drivers around the orld ith its <avoline engine oil. 2hey have recently changed the packaging of <avoline oil to provide more convenience to their customers. 2hey are providing 'eposit shield formula through their product. 2he 1alte" lubricant hich is competing ith PSO car lubricants is; <avoline 7ully Synthetic S&, > 48% <avoline 7ormula S&, $% 4@% -Aineral0

TOTAL:
2O2&/ is the orld6s fourth largest oil and gas group ith headquarters in 7rance and a strong global presence in five continents across the orld. 2he e"plorers, producers, refiners, distributers and chemical specialists of 2O2&/, brought together through their shared culture, make 2O2&/ a unified 5roup, focused on its key professional skills and benefitting from unrivalled gro th opportunities. 2O2&/ J?&32I is a lubricant hich suits the most demanding needs and satisfies all the demands that a car lubricant user may need to meet. It not only enhances your engine6s performance but also protects it against ear and tear by reducing friction and corrosion. It is compliant ith international standards, and takes care of your car in all kinds of e"treme conditions. 2he 2O2&/6s car lubricants hich are competing ith PSO lubricants include; Juartz )%%% > 4@% 7uture - 7ully Synthetic0 Juartz )%%% > 48% Juartz 8"8 $> 4>%
Mar$e%ing P&an For CARIENT Page )

 Juartz *%%% $> 48% Juartz >%%% $% 48% - .,!0 Synthetic 2echnology

CASTROL:
1astrol is a orld ide leader in high performance lubricants for the automotive, industrial, marine and aerospace industries. 1astrol manufactures products on a global basis, supplying customers in over $>% countries around the orld. 1astrol is a holly4o ned subsidiary of :P P/1. 2hey are providing the Intelligent Aolecules formula in their car lubricant to give e"tra layer protection to the engine in order to reduce ear and tear in engine. 2he 1astrol car lubricants hich are competing ith PSO lube include; Aagnetic $% 48%

7IC:
Iic is the brand name used by <i4tech /ubricants /imited to market their lubricants in Pakistan. 2hey have established a sound reputation among the customer base and have on consumer choice a ard for best gasoline engine oil for (%$$. The 7IC %*3ri$'# s $!21e i#& 8i h 5SO %*3ri$'# s i#$%*(e: II1 O! % 4@% - 7ully synthetic0 II1 &K > 4(% -7ully synthetic0 II1 & $% 48% - Synthetic formula0 II1 BJ > 48% - 7ully synthetic0 II1 <i47/O (% 4>% -Aineral0

Mar$e%ing P&an For CARIENT

Page *+

 MOBIL
Aobil &skari /ubricants /td is the official marketer of Aobil lubricants in Pakistan. 2he Aobil brand is marketed in various countries around the globe and is very ell kno n for their innovative and highly performed lubricants. 2heir technical services by the team are reno ned for their e"pertise. 2he range of products is up to the standards and the technology is not far behind other competitors. 2heir lubricants range hich give competitor to PSO lubes is; Aobil $ S&, > 4>% Aobil $ S&, % 48% Aobil Super (%%%"( S&, $% 48% Aobil Super $%%%"( S&, $> 48%

DISTRIBUTION SITUATION
PSO has a ide distribution net ork all over the Pakistan. PSO appointed almost 8* distributors for <i4street lubricants all over the Pakistan. 2here are almost @C%> retail outlets of PSO hich are located in every area of Pakistan through hich customers can purchase products easily. PSO has a large supply chain process through hich distribution of products to every market become easy and the shortage of product cannot held at any time. PSO has the large distribution net ork hich help consumers to get their services easily every here and on time.

5RODUCT SITUATION
CARIENT, a ne product of PSO is not very ell kno n in the market due to less promotion. 2he people ho kno about CARIENT are mostly those ho are brand loyal to PSO. 2he market of CARIENT is lo as compare to the Shell and 1astrol as their lubricants are being sold since many years. 2hey spend e"tensively on advertisement and :rand a areness campaigns. 1urrently PSO has taken initiatives and have performed tremendously ell by launching different promotional schemes and brand activation campaigns. 2hese efforts have helped in increasing the brand a areness of 1&3I,.2 for the past nine months.

S9OT ANALYSIS
Mar$e%ing P&an For CARIENT Page **

STR,-.THS

W,AK-,SS,S

$. &ctive intelligence formula (. Aass 'istribution @. Self sufficiency in automated /A2 plant 8. Secure code >. Provide greater mileage than other motor oils

$. .o brand positioning (. .o television advertisement @. :rand a areness is not up to the mark 8. &dvertising :udget constraints

/00/RTU-ITI,S

$. ,fficient supply chain (. ,"pand to international market @. !ell educated people ho can differentiate quality among different brands. 8. 5ro ing Aarket >. .e Synthetic Oil Aarket

THR,ATS

$. (. @. 8.

<ighly competitive environment Political instability .e /ocal competitors. 'ependence on mechanics

OB)ECTIVE
T. ,e a lea!er in lu,ricants /ar0et an! t. surpass all its c./petit.rs ,y creatin1 ,ran! a2areness an! ,ran! trial a/.n1 its tar1et /ar0et. 2o achieve this objective e have to focus on investing in 2G advertisements to capture the top of the mind brand a areness. !e have to ork on some ne promotional schemes and promotional tools. !e have to continue ith our brand activation campaigns and other sales promotions along ith focusing to establish long term relations ith the dealers at hi4street.

MAR6ETIN: STRATE:Y
TAR:ET MAR6ET:
2he target market for CARIENT FULLY SYNTHETIC and CARIENT ULTRA are the elite class because CARIENT F*%%" S"# he i$ is highly recommended for the car engines hich are petrol oriented and are above $@%% cc having model from (%%C4(%$( here as CARIENT U% r' is for the cars having model from (%%(4(%%*. 2he main purpose of targeting elite class is that they prefer lu"urious cars. 2heir main focus is to have better technological services for their car engines to maintain their car performance.

5OSITIONIN: STATEMENT:
Mar$e%ing P&an For CARIENT Page *2

F.r the pe.ple 2h. 2ant t. /aintain the r.yal status .3 their car, CARIENT is the .nly s.luti.n that 1i4es pr.tecti.n t. y.ur car en1ine as it ne4er sleeps ,ase! .n Ai 3.r/ula 2hich is the /.st a!4ance! techn.l.1y in /.t.r .ils ,ein1 .33ere! ,y PS&' the lar1est an! the /.st truste! .il /ar0etin1 c./pany .3 Pa0istan5

5RODUCT LINE:
PSO is serving a large variety of lubricants products in market ith many different categories. <ere e are basically focusing over CARIENT and it has a large product line consisting of > products hich are as follo ing

1&3I,.2 7ully Synthetic 1&3I,.2 ?ltra 1&3I,.2 Plus 1&3I,.2 Super 1.5 Plus

5RICE:
PSO does not follo any hard and fast rule to price its lubricants but the pricing strategy is clearly defined. 2he prices of lubes can be set by the company on their cost and storage basis. &s PSO has the largest storage capacity and lubricants blending plant their cost of handling is lo er than competitors. 2hey do not have to pay any storage charges as they o n the storage capacity. 2he prices of CARIENT motor oil are less than the competitors but e are ahead of them in terms of technology and quality of lubricants.

Mar$e%ing P&an For CARIENT

Page *

In order to became popular among our target market e have to re4price our product as people see lo priced products as of lo quality. Our lo er prices give target market an image of lo quality. !e should increase our prices ith the passage of time to make people believe that our quality is better than our competitors.

DISTRIBUTION OUTLET:
2he major advantage for PSO lubricants is the availability of large distribution net ork of PSO stations around the country. :ut along ith the PSO stations e have to focus deeply on our relationships ith <i4 street dealers because they are the real and largest source of car services for the people around the country. PSO has 8* distributors ho are providing lubes to <i4street currently. 2hey have to be trained and ell informed in order to be effective hile dealing ith <i4street dealers.

ADVERTISIN::
'ifferent type advertisement is carried out to promote CARIENT. 2he print media is used to give detailed information about CARIENT to the consumers, hereas bill boards and radio advertisement is also carried out to promote the product. 2elevision advertisement most probably ill be carried out in the future.

S !r" B!'r(

Mar$e%ing P&an For CARIENT

Page *!

5ri# A(:

Mar$e%ing P&an For CARIENT

Page *"

SALES 5ROMOTION
Sales promotion is done on t o levels; $. 2rade promotions (. 1onsumer promotions In trade promotions e have been focusing our dealer relationships to get highest share in <i4 street. !e have been giving discounts and gifts to our dealers ho promote our products. 2hey are like marketers of our brand on <i4street as most of the consumers go to <i4street for engine oil change. 2hey prefer to the brands hich are recommended by the dealers. 2herefore e ill focus to further maintain and enhance our long lasting relationship ith our dealers. 7or this purpose e ill provide more incentives to them than our competitors and deal them as our business partners. 2his ill give them a sense of o ning our brand and ill benefit us in the long term. In consumer promotions e have been focusing on different campaigns at different locations ith lucky dra s on the purchase of our brand. !e should more deeply focus on our consumers by remembering their social class. Our target market is more inclined to ards such campaigns hich are based on intelligence and efforts to sho case their daring nature. 2hese activities ill help them to kno our brand and to establish good ill.

RECOMMENDATIONS:
$. 2he pricing should be revised as people in Pakistan generally relate lo prices ith lo quality and the perception that PSO is a .ational company also hinders in accepting that its lubricants are better than other competitors even at lo prices. (. 2here should be more investment in brand building campaigns to create more brand a areness and trial process initiations from the consumers end. @. 2here should be proper placement of lubricants in the relative lubricants shelves at the retail outlets to capture the attention of the consumers. 8. PSO should introduce its lubricants internationally as it has the most advance technology available and o ned by it.

Mar$e%ing P&an For CARIENT

Page *#