MIS Group Presentation 21

8/3/2019 MIS Group Presentation 21

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MIS group presentationMIS group presentation

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Royal Dutch Shell


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Samiul Haq

Mohammad abbas

Inayat ur Rahman

Shah Khalid

Irfan Ullah

MisMis group members:group members:


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Royal Dutch Shell: commonly known as Shell, is a global oiland gas company headquartered in The Hague,Netherlands and with its registered office at the Shell

Centre in London, United Kingdom. It is the largestenergy company and the second-largest company in theworld measured by revenues and is one of the six oiland gas "super majors .It is vertically integrated and isactive in every area of the oil and gas industry, including

exploration and production, refining, distribution andmarketing, petrochemicals, power generation andtrading. It also has major renewable energy activities,including in biofuels, hydrogen, solar and wind power.

Introduction:Introduction:


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It has operations in over 90 countries, produces around 3.1million barrels of oil equivalent per day and has 44,000service stations worldwide. Shell Oil Company, its subsidiary inthe United States, is one of its largest businesses.

The Shell brand name enjoys a 100-year history in this part ofthe world, dating back to 1899 when Asiatic Petroleum, thefar eastern marketing arm of two companies: Shell TransportCompany and Royal Dutch Petroleum Company began

importing kerosene oil from Azerbaijan into the subcontinent.Even today, the legacy of the past is visible in a storage tankcarrying the date - 1898.

The documented history of Royal Dutch Shell plc inIndo_Pakistan subcontinent dates back to 1903 whenpartnership was struck between The Shell Transport & TradingCompany and the Royal Dutch Petroleum Company to supplypetroleum to Asia.


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In 1928, to enhance their distribution capabilities, the

marketing interest of Royal Dutch Shell plc and the

Burmah Oil Company Limited in India were merged andBurmah Shell Oil Storage & Distribution Company of

India was born. After the independence of Pakistan in

1947, the name was changed to the Burmah Shell Oil

Distribution Company of Pakistan. In 1970, when 51%of the shareholding was transferred to Pakistani

investors, the name of changed to Pakistan Burmah

Shell (PBS) Limited. The Shell and the Burmah Groups

retained the remaining 49% in equal propositions. InFebruary of 1993, as economic liberalization began to

take root and the Burmah divested from PBS, Shell

Petroleum stepped into raise its stake to 51%.


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Mission statement:

"We shall continue to deliver bestvalue to our stakeholders by providingsuperior offerings to our customers,maintaining our high financialperformance and improving ourstanding as a good corporate citizen of

Oman by aligning our direction in long-term sustainable fashion."


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Vision statement:

Our Vision To be the Top Performing

andMost Admired Refinery in Asia.


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Companys Slogan:

You can be sure of Shell


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Goal ofGoal of Shell:Shell:

The goal of the company is to

position itself as the preferred oil

company in Pakistan, leading the

field in its commitment to safety,

customer service, quality andenvironmental protection.


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Company Objective: The objectives of Shell Pakistan Ltd. are to engage

efficiently, responsibly and profitably in oil, gas,

chemicals and other selected businesses and to

participate in the search for and development of other

sources of energy to meet evolving customer needs and

the worlds growing demand for energy.

We believe that oil and gas will be integral to the global

energy needs for economic development for manydecades to come. Our role is to ensure that we extract

and deliver them profitably and in environmentally and

socially responsible ways.


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Product and Services: Product:

Anything that can be offered to market for attention, acquisition,use or consumption that might satisfy a want or need. The oilproducts of shell are given below.

Services:

Services are the form of product that consist of activities, benefits,or satisfaction offered for sale that is essentially intangible and donot result in the ownership of anything. The services that provideshell Pakistan limited are given below.

There is credit card that given to the customer, in presence of these

credit card shell provide all types of services without gettingcharges.

When customer of shell going for pouring oil then also clean thetransportation that is coming for being filled the oil.


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Product Mix: Product mix is the set of all the products offered for sale by a

company. The structure of product mix has both breadth and

depth. Its breadth is measured by the number of product line

carried and its depth by the variety of sizes, colors and models

offered within each product line. Thus the two main products

which Shell Pak. offers are fuel and lubricants. These have

further classifications in various constituentswhich form the

product line.

Product line:

Shell has two product lines namely, fuel and lubricants.


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Fuel:

Shell offers a wide range of fuel. These are:

Hi-OctaneSuper UnleadedSuperHi-speed DieselCNG

Lubricants:The various lubricants offered by Shell are;

Rimula CRimula DRimula XHelix PlusHelix SuperHelix StandardShell Helix(CNG)


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Product Life Cycle:

Product Life Cycle Stages:

Product Life Cycle means the changes in the sales volume

of the product over the life the product. In market there

is always ups and downs are present because this is a

dynamic world. Every thing will have to finish after

certain time period, by finishing their life. Business

should manage their products carefully over time to

ensure that they deliver products that continue to

meet customer wants. The classic product life cycle

has four stages.


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Introduction Stage:

At the introduction stage market size and growth is slight. It is

possible that substantial research and development cost havebeen incurred in getting the product to this stage. In addition,

marketing costs may be high in order to test the market,

undergo launch promotion and set up distribution channels.

Growth Stage:

The growth stage is characterized by rapid growth in sales

and profits. Profits arise due to an increase in output and

possibly better prices. At this stage, its cheaper for business

to inset in increasing their market share as well as enjoying

the overall growth of the market. Shell Pakistan introductionstage is successfully done because it comes from the

international market and enters in Pakistan market. Now

company has about 40-45.5% of market share and still

growing .


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Maturity Stage:

The maturity stage is perhaps the most common stage; it is inthis stage that competition is most intense as companies fight

to maintain their market share. Here both marketing andfinance becomes key activities.Marketing spend has to bemonitored carefully, since any significant moves are likely tobe copied by competitors. The maturity stage is the timewhen most profit is earned by the market as a whole. ShellPakistan not yet enters in maturity stage.

Decline Stage:In the decline stage the market is shrinking, reducing theoverall amount of profit that can be shared amongst theremaining competitors. At thus stage great care has to betaken to manage the product carefully. It may be possible to

take out some production cost, to transfer production tocheaper facility, sell the product into other cheaper market.Shell Pakistan is a brand name and company is not in declinestage because their sale increases day by day.


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Pricing:Pricing: Price is the amount of money for which a product is

offered in the market. The amount of money charged forthe product of services of sum of the value thatconsumer exchange for the consumers exchange for the

benefits for having or using the product of services priceis only which brings revenue in the market, so it plays atremendous role in the market.

Strategies ofPricing: There is to types of strategies present in marketing.

Market skimming price

Market penetration price


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Market skimming price: This is high price settings fora new product to skim maximum revenue layer bylayer from the segments willing to pay the high price

the company makes favor but more profitable salesmarketer prefer to this type of price strategiesbecause there is every product that comes in themarket will have to go out from the market.

Market penetration price: Settings a low price for anew product in order to attract a large number ofbuyers and large market shares. Companies alsoadopt this strategy when they enter in the market.Shell Pakistan limited also comes up with the

penetration strategy because it is an internationalmarket and they just want to enter this market nowthis company enjoying the high profit andcontinuums in the product life cycle.


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Selection ofPricing Method:

Companies usually select the price of their products inaccordance to the following three: customer demandschedule, the cost function and competitors price.However companies adopt various strategies in order

to price their products. The strategies adopted by the shell Pakistan ltd are:

1: Price of competitors product2: Price premium for high quality3: Price premium for high purity4: Price premium for better services5: Is the appropriate price for shell.


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Going price rate:Going price rate:

Going price rate means that acompany bases the price of its productin accordance to the price offered byits competitors. In fact shell Pakistans

competitors are like; PSO

TOTAL

ATTOCKCALTEXADMORE


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Market Targeting :

It is the process of evaluating each marketsegments attractiveness and selecting oneor more segments to enter.Market

targeting depends upon the financialpositioning of company. If company isstrong financially then he must go formarket targeting. Shell in Pakistan produces

verities of products. All these products areavailable urban as well as rural area.


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Market Segmentation : Market is the processing which dividing a market in to

distinct group of buyers on the basis of needscharacteristics or behave who might requires separateproducts or marketing mixing.

Market consist of buyers and buyers differs in one ormore ways they may differing their wants, resources,locations, buying attitude and buying practice.

Shell Pakistan ltd. Divide his market in to followingsegments:

Demographic segmentationGeographic segmentationPsychographic segmentation


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Levels of Market Segmentation:

There are three levels of market segmentations

1.Mass marketing2.Segment marketing

3.Niche marketing Mass Marketing:

Shell Pakistan limited go for the mass marketingbecause its distribution is very extensive.

Internationally its products are goes intointernational market.


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Positioning: The process of arranging of product to

occupy clear distinct and desirable placerelated to competing products in the

minds of target consumer. Shell Pakistancompanies lies its growth stage in themarket and enjoys 65% shares. Nowgradually with the increase of growth

rate is expands its products line and alsoits distributions.


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Marketing Channel: Marketing channels are set of interdependent

organizations involvedin the process of making a product or serviceavailable for use or consumptionThe entities involved in the distribution of Shellproducts in Pakistan are:

Supply Chain DepartmentShell Depots

DistributorsFuel StationsConsumer


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The Market Share of Shell:

At the moment Shell Pak. has a

market share of about 40% to

45% in Pakistan. It is trying

hard to become the market

leader in Pakistan.


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Qualities of a good Market Leader:

Customer Knowledge:

Shell Pakistan is fully committed to achieveexcellence in customer services and

product quality. This can only be done byhaving complete knowledge of the needsand wants of their customers. It is due tothis reason that Shell Pakistan has

established a special customer servicecentre by the name of Shell Edge.


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Long Term Planning:

Shell enjoys a 100-years history in the sub-

continent. Shells long term commitmenttowards developing the petroleum industryin Pakistan is reflected by a capitalinvestment of Rs.703 million in 2006.

Line Extension: Line extension means including new products

in the product line.

Shell has recently extended the product line of

its lubricants by producing CNG lubricants bythe name of Shell CNG Engine Oil.


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Heavy Advertising:

Another feature of a good market

leader is to heavily advertise in order tocompete with the competitors and tocreate more awareness amongstalready existing and new customers.

Shell also adopts the same strategy. Itadvertises both on electronic and printmedia to keep its customers well

informed. The company has also starteda magazine named Spirit to promoteits products.


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Effective Placement ofProducts:

Shell has established a specialcouncil called Product PlacementCouncil. Its sole function is to keepan eye on proper placement of the

various products offered by thecompany. The council makescontracts with dealers and retailers

regarding the placement of theproducts.


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Promotion:Promotion: Advertising:

Advertising is any paid form of non-personal

presentation and promotion of ideas, goods or services

by an identified sponsor.

Kinds of Advertisement:

There are different kinds of advertisements which a

company may adopt during the PLC. Shell also requires

advertising its products in order to create awarenessabout the new or already existing products.

The types of advertisements which Shell Pakistan Ltd.

Has adopted are as follows:


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Informative Advertisement:

The type of advertising which is doneduring the introduction stage of aproduct is known as informativeadvertising.

Shell adopted this strategy when itlaunched its Shell Helix CNG Oil. Itadopted all kinds of media to inform thepublic about the new product. Shell

advertised through Television, NewsPapers, billboards, etc. to build a goodproduct image in the minds of thecustomers.


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Persuasive Advertising:

The advertising done to compete with the

competitors and to create more demand ofthe product in comparison to thecompetitors products, is known aspersuasive advertisement.

Shell Pak Ltd. also adopts such strategy tocompete with its competitors. You must haveseen various adds of Shell featuringcelebrities like Michael Schumacher in order

to make them attractive and also adds inwhich comparison is made among Shell andcompetitors products. Comparison featuresinclude purity, viscosity, efficiency and

performance.


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Kinds of Media to be Used for Advertising:

Media is basically a carrier which carries a message or

any kind of information from the sender to the receiver. The different kinds of media used by Shell Pak .Ltd. are:

Television

Radio(Especially FM stations)

Internet

Telephone Service (This function is performed by ShellEdge

customer services centers. Their toll free number is 080022737)

Newspapers Magazines (Shell has its own magazine Spirit)

Billboards


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Competitor:

PSO

TOTAL

ATTOCK

CALTEX

ADMORE


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The SWOT Analysis:

SWOT stands for Strengths,Weaknesses, Opportunities&Threats. In which, Strengths andweaknesses are related withinternal environment of theorganization and opportunities and

threats are related with externalenvironment of the organization.


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Strengths: Shell strengths mean what are the positive points of the

organization. The strengths of shell Pakistan Ltd are:

The managers regard their sub ordinates.

Main focus of the organization to increase their customers.

Managers use participative approach.

Their employees are highly motivated.They hire local employees.No clash with GOVT. or any agency.They care about the hygienic factor.Shell is using effective means for the promotion of itsproducts.

Shell provides in time deliver to their petrol pumps.Incentive based policies for motivating employees.Shell has international Standard petrol pumps.Mobile training units keep the staff up-to-date.


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Weaknesses: They are not offering any package to their regular customers.

They are not offering any bonus package scheme. Shell has eightregional retail managers. They are insufficient to handle theproblems.

They have no proper shades and sitting arrangement at thefilling stations.

There is no proper drainage system at filling station. Opportunities: Shell is an international company so it should introduce

packages.

Company has an opportunity to give special packages to its

employees. Company has opportunity to install more CNG as well as petrol

pumps in rural areas of Pakistan


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Threats:

Threats are actually competitors.

PSO and CALTEX improvement.

Installation of stations by TOTAL.The smuggling of petrol inBaluchistan from Iran.

Entry of new companies in therefinery sector.


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Documents

MIS Group Presentation 21