Final Project PSO

Marketing Plan PSO (Green XL Plus Diesel)
ACKNOWLEDGEMENT
“For whom who create us, fed us, brought us up and give us knowledge.
Who is the most merciful, most beneficial and most forgiver. "In the
name of God, the Merciful, the Compassionate. Say (O Muhammad) He
is God the One God, the Everlasting Refuge, who has not begotten, nor
has been begotten, and equal to Him is not anyone." For whom who is
more loving and kinder than a mother to her dear child? For whom who
is the First and the Last?”
We are very thankful to Mr. Mobin ul Haque at UMT who gives

chance to prove ourselves, to gain something, to learn something, to
experience something and to test ourselves, and to test our abilities, our
learning and our perception. We are also thankful to Mr. Wajahat Ali Syed
Sales manager PSO Lahore, Mr. Waleed Khalid Sales Officer Industrial
Consumer company PSO Lahore and Mr. Syed Shafqat Raza Bokhari
Terminal Manager and Account Officer who cooperate us to study their
organization. We really appreciate our friends who gave us valuable
suggestions and initiative in my project.
Strategic Marketing Management

Executive Summary
It is a detailed managerial report on Pakistan State Oil Limited. In this
Project, we have studied company profile, Environment, Business Strategy
used by the company, SWOT analysis of the company, Social Responsibility.
We have widely studied, their new launched product Green XL Plus
Diesel, its technology, its benefits, its Strengths and weakness. We have
applied Balance Scorecard, Brand Report Card and we have also did its IFE
& EFE by small survey and Customer Value Analysis

Industry Profile
Pakistan is located at the cross road of Central Asian States and Arabian
sea, neighbored by Afghanistan in the North, Iran in the South West and India in
the East, needs a high and sustained growth in energy supply and infrastructure
capacity of 7 to 8 percent per year to support to targeted growth of 7 percent in
GDP. The per capita commercial energy consumption in the country is very low at
nearly 1/2 of the average of the developing countries. Whereas, the global per
capita commercial energy consumption is 59 Giega Joule (GJ) and Pakistan is only
8 GJ.
Historically, the country depends mainly on imported oil within the annual
growth rate of about 7 percent. The current annual oil import bill runs at about US
$ 1.5 billion, which equals nearly a fifth of the country, export earnings. The local
crude oil production is estimated at about 2.543 million US barrels per year. The
total numbers of oilfield are 77 with accumulative production of 358,282 million
barrels with ORR of 577,959 million barrels and BRR of 198, 777, million barrels

Pakistan State Oil Company Limited

Pakistan State Oil Company Limited, namely PSO was found in 1976, as a
result of an amalgamation of the formal three oil-marketing companies i.e.
Pakistan National Oils Limited, Premiere Oil Company and Esso Undertakings in
Pakistan. As the largest Oil Marketing Company in Pakistan, Pakistan State Oil is
committed to efficiently meeting the country's energy needs beyond the 20th
Century. Further, Asia Week has listed PSO in Asia’s largest 1000 companies.
The Government of Pakistan (GOP) holds approximately 54% stake in
Pakistan State Oil Company Limited (PSO), including both direct holdings of the
Federal Government and indirect holdings through GOP owned institutions. The
GOP is in the advanced stages of divesting 51% of the in PSO to a strategic
investor.
PSO is the largest oil marketing company (OMC) operating in Pakistan and
is engaged in the storage, distribution and marketing of petroleum products, LPG,
CNG and petrochemicals. Currently, PSO has more than 4,400 retail outlets spread
all across the country has extensive storage capacity, almost 81% of total national
storage, i.e. around 860,000 metric tons.
PSO dominates the downstream sector by having a market leadership
position in diesel, jet fuel and fuel oil. Pursuant to the GOP’s attractive power
policy that was announced in early 90s, PSO invested heavily in infrastructure
facilities to import and transport fuel oil to support the additional requirements
generated by the influx of thermal independent power plants (IPPs). PSO signed
long-term (22-30 year) supply contracts with IPPs to supply fuel oil. By virtue of
these agreements PSO now commands 85% market share of fuel oil. PSO has been
pursuing an aggressive marketing strategy by revamping its retail network and
concentrating on high margin products. In FY2003 a record capital expenditure of
Rs 1.6bn (US$ 28m) was incurred primarily on New Vision retail development
program
Vision statement

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

energy company that gets to the future first.
Mission Statement
 We 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 workforce, working as a
team in an environment, which recognizes and rewards performance,
innovation and creativity, and provides for personal growth and
development
 Lowest cost operations and assured access to long-term and cost effective
supply sources
 Sustained growth in earnings in real terms
 Highly ethical, safe environment friendly and socially responsible business
practices
Products

 Motor Gasoline
 Kerosene
 High Speed Diesel
 Light Diesel Oil
 Furnace Oil
 Lubricants
 Fuel Oil
Target Market
The target market of PSO is the Industrial Segments of Pakistan and all
diesel vehicles.
Industrial Segments of Pakistan
It encompasses all the Industrial Segments of Pakistan. And, Major
Customers are catered to either through Contract, Tender or our Long-Term
business relationships. The major customers are Defence, Pakistan Railways,
OGDC, NLC, Pakistan Steel Mills, POF Wah, FWO, KMC, KWSB, Gatron,
Rupali Group and Engro Chemicals.
Operations

As a progressive company moving rapidly towards infrastructural

enhancement, Operations is considered a key area especially in view of PSO's
huge infrastructure of 9 installations and 23 depots dotted across the country from
Karachi to Chitral.
To further improve operational efficiency and work environment, the
concept of Operation Quality Team (OQT) was introduced and implemented to
ensure ownership of responsibilities regarding cleanliness, repairs, maintenance
and health, safety and environment.
PSO is the only oil marketing company in the country to appoint
international surveyors for calibration of tank truck units at key operating
locations. The calibration is carried out as per API standards and labeled with
safety stickers having hologram and bar coding.
Four storage tanks of 25,000 tons each at Keamari have been rehabilitated
and radar gauges installed on 34 tanks nationwide to minimize stock losses, while
the remaining key installations/depots are also in the process of being similarly
equipped.
In order to further rationalize operational resources, the company closed
down its operations at Morgah and Khuzdar depots. To ensure improvement in
HSE standards at installations/depots, several HSE (Health, Safety &
Environment) equipments have been installed to periodically monitor HSE
performance.
For the first time in Pakistan, two tanks of 30,000 tons storage have been
installed with floating roofs. These have been dedicated to Bosicor and the first
receipt of Crude was taken successfully on August 21, 2003.
In FY04, an agreement was signed with Bosicor for effective handling of
Naphtha at Keamari Terminal - "B" and Tank Truck Crude Oil loading at
Zulfiqarabad Oil Terminal for Attock Refinery Limited (AKL). A similar
agreement was signed with British Petroleum, which would generate additional
earnings for the company.

Furthermore, a state-of-the-art Lube Oil Manufacturing plant has been

commissioned at Korangi, featuring a specialized pre-engineered building with
clear blending system and pelletized loading arrangement. The company is at
present conducting necessary due diligence on new White Oil Pipeline Project
from Machike to Tarujabba in collaboration with ARL.
Demand & Growth Rate
The international environment witnessed a relatively benign global
economic environment in FY04 after almost three years of weak and fragile
growth in the world economy.
The business environment in Pakistan, however, gained momentum during
FY04, mainly due to an encouraging growth in industrial production and a positive
upsurge in investment. This depicts an encouraging trend for the future also.
The industry consumption of White Oil, the major determinant of economic
growth, recorded an impressive increase of 6%, while Black Oil registered a
decline of 43% due to product substitution regime in line with GOP policies. The
overall POL consumption in Pakistan during 2004 was 14.2 million tons, 14%
lower than that in the preceding year, primarily owing to a 44% decline in
consumption of Fuel Oil (FO).
In 2003, FO consumption had witnessed an unprecedented drop of 15%,
followed by massive decline of 54% during the first six months of 2004 over prior
year period owing to increased gas usage in dual-fuel power plants and inter-fuel
substitution from oil to gas.
Consumption of Mogas (HOBC High Octane blending Compound + PMG
Premier Motor Gasoline) increased by 15% compared to a modest growth of 1% in
prior year. The main determinant contributing to this increase was a significant
growth of 57% over last year in the automobile industry due to reduced interest
rates, persistent inflow of home remittances and the cheap and easy availability of
car financing schemes.

HSD demand also grew by 5% versus 2% in 2003. The growth is primarily

due to enhanced economic activity, especially in the agriculture sector, owing to
attractive consumer leasing options.
The demand of JP-1 experienced a growth of around 10% compared to 22%
of last year. This was brought about by an increase in passenger and air traffic
capacity of PIA as well as enhanced Afghan exports.
Kerosene, as expected, showed a decline of 17% due to availability of
cheaper alternatives, such as natural gas and Liquid Petroleum Gas (LPG).
Similarly, Light Diesel Oil (LDO) also showed a decline of 9% due to usage of
HSD-hased engines, which are cheaper than the pumps consuming LDO.
During Despite the ever-declining Kerosene demand, PSO managed to
increase its market participation to 74% by gaining 2% share over prior year. In
FY04, P50 managed to maintain its market share in JP-1 at 64%, excluding
exports. PSO sales grew by 14% in line with industry growth.
However, in Black Oil, P50 sales declined by 15% and 47% in LDO and
FO respectively. The significant decline in FO sales was mainly because of power
sector’s conversion to gas, where PSO has long-term Fuel Supply Agreements
(FSAs) signed with Independent Power Producers (IPPs).
In FY04, PSO continued to offer higher value to its customers; another
287 New Vision stations were added during the year, bringing the total number of
these outlets to 1,000 at an average construction rate of 1.8 days per outlet. The
Company-owned Company-operated (CoCo) outlets network was also expanded
to 36 during FY04. The CNG facility was offered at another 32 stations bringing
the total number to 105.
Market Share
Despite a substantial volume drop in Fuel Oil by 2.8 million tons,
i.e. 43%, PSO retained its market leadership and sold 8.7 million tons of POL

products. In White Oil (Mogas, Diesel, Kerosene and Jet A-1), despite stiff
competition from existing and new players, PSO successfully maintained its
market share at 59%, while in Black Oil its share declined by 46% in line with
industry drop. This was mainly due to power sector's continued conversion to gas,
improved hydel generation and availability of cheaper fuels in industrial sector.
During FY04, PSO gained 1.6% market share in Mogas thus registering a
substantial growth of 19% against industry growth of 15% over last year.
Sales of 50,700 tons were recorded in June 2004 when PSO secured a
market share of 46.4%. These were the highest-ever sales achieved in Mogas since
the inception of the company.
PSO HSD sales also witnessed growth of 6% against industry growth of 5%
over prior year. As a result, company's market participation increased to around
60.5% compared to 60% recorded in the preceding year. During November 2003,
PSO achieved the highest-ever market share of 64% in HSD in any single month
during the last several years.
However, in Black Oil, P50 sales declined by 15% and 47% in LDO and
FO respectively. The significant decline in FO sales was mainly because of power
sector’s conversion to gas, where PSO has long-term Fuel Supply Agreements
(FSAs) signed with Independent Power Producers (IPPs).

Distribution
PSO, being a flagship company, carries a strong and wide logistics network
to cater 68% of total country's demand of POL products timely and efficiently,
from Karachi to the remotest areas of the country, through 29 storage points
spread throughout the country. At present, most of the POL product movement is
carried through self-owned and outsourced tank Lorries and rest through tank
wagons and pipelines. Recently the adequate availability of alternate fuels like gas
has drastically reduced the demand of Furnace oil by 50%, which has resulted in
surplus fleet of tank Lorries and tank wagons.
PSO has vast infrastructure of 9 installations and 23 depots from Karachi to
Chitral and a supply chain supported by 8,500 strong tank-lorry fleet and 3,800
railway wagons.
Pricing Strategy
The oil marketing companies are operating in Pakistan under a pricing
mechanism provided by the government. All matters relating to oil, gas including
CNG, LPG & LNG and minerals at the national and international levels and
pricing of all kinds of petroleum and petroleum products are under the control of
Ministry of petroleum and Natural Resources (Govt. of Pakistan)
Key Competitor
S. Compan Number of Outlets
y
1 Shell 1200
2 Total 800
3 Caltex 370
4 Attack 75
PSO 4400
Shell and total 2000
Caltex and attack 445

total 4400+2000+445

Promotion Strategy
Company is using different types of promotion strategy as Electronic
media, Print Media, Sticky Cards on Wind Screens of the vehicles Billboards and
Sponsorship Sports, Traffic Signals, Direction Boards Etc. Company has also built
recreational parks in Islamabad and other cities of the country. Company is also
creating awareness for traffic safety and heritage preservation through “Karavan
Karachi” and construction of modern well for rural empowerment and helping the
handicapped to lead the normal life.

Green XL Plus Diesel
The constant evolution and development that has been PSO hallmark
continues into the 21st century as well. Along with its areas of core competence,
PSO in recent years has placed a growing emphasis on health, Safety &
Environment (HSE). That is why PSO has once again taken the lead in launching
for the first time in Pakistan Green XL Plus Diesel, which contains Greenburn
Combustion Technology, developed by Ethyl Corporation, USA. PSO has
exclusivity to the Combustion Technology' fuel additive for use in diesel in
Pakistan.
Demand & Growth Rate
Due to introduction of Green XL Plus Diesel, the company has

differentiated its product and gained substantial volumes in a highly competitive
market. Despite the ever-declining Kerosene demand, PSO managed to increase its
market participation to 74% by gaining 2% share over prior year. In FY04, P50
managed to maintain its market share in JP-1 at 64%, excluding exports. PSO
sales grew by 14% in line with industry growth.
Application of Balance Scorecard

Like PSO's other products, Green XL Plus Diesel will make a difference
from Karachi to Khyber because the company will be distributing this new product
through to the entire network of its retail outlets so that the benefits are passed to
all PSO customers. Tariq Kirmani, Managing Director, Pakistan State Oil, and
Mike Lewis, Managing Director, Ethyl Petroleum Additives Limited, Europe,
inked a multi-year agreement at PSO House on February 9, 2004.
Ethyl is a leading global supplier of additives to the Oil Industry. Based in
Richmond, Virginia, USA, with offices worldwide, the company develops
technology that allows engines to run cleaner, smoother and longer.
Let’s discuss Green XL Plus Diesel within the criteria of systematic
approach by applying three analytic tools;
(1) Buyer utility map
(2) Price corridor of the mass
(3) Business model guide
Buyer Utility Map

The Six Stages of the Buyer Experience Cycle
Purchase Delivery Use Supplements Maintenance Disposal

productivity
Customer
Simplicity
Maintenance
20% of engine
Convenience
increase has decrease

30%
The Six Utility Levers
46% Decrease
in
Environmental
effects
Risk
Fun and
Image
Environmental
friendliness

The above Utility Map shows the PSO has added three new utility levers at
the same stage by launching Green XL Plus Diesel;
 By using the same stage PSO has increased 20% Productivity, because
high-speed diesel covered 10Km Per liter but Green XL Plus Diesel covers
12Km Per liter.
 The maintenance Expense of the engine has decreased 30% because the
company has developed a technology that allows engines to run cleaner,
smoother and longer.
 At PSO, preserving and nurturing the environment is a priority like quality,
quantity, safety and service excellence. That is why PSO has adopted
Greenburn Combustion Technology, by Ethyl Corporation and has
decreased environmental effect by 46% by reduction Lead in diesel.
The Price Corridor of the Mass
The PSO has targeted the largest segment in the oil industry, the largest
group of people lies in the diesel market, so PSO has brought innovation in high
speed diesel by understanding the price sensitive people who compare the new
products with a host of new products and the services offering by companies
outside the group of traditional groups.
Same Form Same Function The company has targeted the people of group who
is using diesel for transportation and to get the competitive edge company has
introduced Green XL Plus Diesel at the price high speed diesel Rs 26.
The Business Model Guide

To deliver the new idea profitably without changing the price of Green XL
Plus Diesel by partnering Ethyl Petroleum Additives Limited, Europe. PSO has
signed a contract with Ethyl Petroleum Additives Limited, Europe, at PSO House
on February 9, 2004.
Application of the Brand Report Card on PSO
1. The brand excels at delivering the benefits customers truly desire

PSO is trying to uncover the unmet consumer needs and wants through R &
D. PSO emphasizes on health, Safety & Environment (HSE). And to meet our
customers unmet environment friendly need in Petrol and Diesel PSO has give the
Green XL. And they are trying to improve their quality. PSO is also taking
feedback from customers to improve their products. So customers have a good
image about PSO.
2. The brand stays relevant

PSO Green XL gives their customers more productivity through extra
mileage, better engine performance and preserving and nurturing the environment.
PSO Green XL Plus Diesel, which contains Greenburn Combustion Technology,
developed by Ethyl Corporation, USA. Now PSO also providing the facility of
Credit cards and Debt cards to their customers.
3. The pricing strategy is based on consumer’s perceptions of value

Pricing of the petroleum products are decided by the government. But PSO
is trying to give their customers extra value added services to their customers in
this standard price.

4. The brand is properly positioned

The PSO brand Green XL plus Diesel has created No. of parity points from
their competitors, like more productivity, extra mileage, less wear and tear of
engine but others are not providing these values to their customers this has created
a unique perception in the minds of customers.
5. The brand is consistent

In all adds of PSO the Green XL plus diesel is sending the same message of
preserving and nurturing the environment. So they are not trying to make conflict
messages to the customers.
6. The brand portfolio and hierarchy make sense

PSO brands are holding individual niches in their products because they are
providing customers the environmentally green climate and due to these qualities
PSO sales have been raised over a period of time and it’s still increasing day by
day by excellent marketing campaign.
7. The brand makes use of and coordinates a full repertoire of marketing

activities to build equity
Every product has its different packaging and different marketing this does
not make mixture of different products and customers know about the usage and
abilities of different product.
8. The brand managers understand what the brand means to consumers

Green XL plus is new product in the market and managers are creating the
image of this product as environmental friendly product.

9. The brand is given proper support, and that support is sustained over
the long run
PSO has Green XL plus Diesel is new product in the market after a long
study but it has created an image of keep environment green. But company has not
change its marketing plan.
10. The company monitors sources of brand equity

The company has its R & D department through which they have conducted
a survey and they have found that their brand has got success in the market and
now they have taken very effective steps to further support and promote the image
of the brand in the minds of customers. For this purpose they have introduced
cards that carry the brand name & logo of the product and they have distributed
these cards to their customers to paste these cars on their windscreen and have
specially designed the main billboard on their outlets.
S.No Strong Brand Attributes Ranks

1 The brand excels at delivering the benefits customers truly desires. 5
2 The brand stays relevant 5
3 The pricing strategy is based on consumer’s perceptions of value 3
4 The brand is properly positioned 5
5 The brand is consistent 4
6 The brand portfolio and hierarchy makes sense 5
7 The brands make use of and coordinate a full repertoire of marketing 5
activities to build equity
8 The brand managers understand what the brand means to consumers 5
9 The brand is given proper support and that support is sustained over the 6
long run
10 The company monitors sources of brand equity 5

7
6
5
4
3
2
1
0
1 2 3 4 5 6 7 8 9 10

Porter Analysis
Competition New Entrants
The market share of PSO has reduced from 74% to 68% by the introduction
of TOTAL OIL Company in the recent years. In 2005, Ash Dat Oil Company is
also commencing its business and certainly it will cater some market share but
PSO is making innovative steps to meet this challenge, as company has acquired
paper less information technology system SAP, to on time delivery to its
customers.
Competition from existing Competitor
Pakistan State Oil Limited is facing its competitors and to meet the
challenges its competitors PSO is taking innovative and value added steps for
customer convenience and value addition. To meet this threat by the competitor,
company has acquired paper less information technology system SAP, to ensure
on time delivery to its customers.
Threat of Substitute
Kerosene, as expected, showed a decline of 17% due to availability of
cheaper alternatives, such as natural gas and Liquid Petroleum Gas (LPG).
Similarly, Light Diesel Oil (LDO) also showed a decline of 9% due to usage of
HSD-hased engines, which are cheaper than the pumps consuming LDO. To meet
the challenges of substitute, PSO launched Green XL Plus Diesel using
‘Greenburn Combustion Technology’. The new improved diesel not only helps
keep the environment cleaner and greener by notably reducing smoke and carbon
emissions, but also improves engine performance by preventing wear and tear thus
resulting in lesser maintenance costs, fuel economy and more engine power.
Despite the ever-declining Kerosene demand, PSO managed to increase its
market participation to 74% by gaining 2% share over prior year.

Bargaining Power of Buyer

In a competitive environment, the concern is how to increase market share
and to retain its current customer in highly competitive market because customer
always try to optimize his from the product. PSO is also facing competition in the
industry, so to retain its customer, the company is taking all the possible steps for
customer convince and benefits, for example Credit cards, Debt cards, Kissan
Card, e-Marketplace, New Vision Station etc.
Bargaining Power of Supplier
Another challenge that PSO is facing is the bargaining power of the
supplier, in some extent with respect price; the supplier has no power to affect the
price. But on the other hand suppliers offer different facilities to increase its
market share, for example SHELL & TOTAL has advantage over PSO because of
wide and furnished outlet. But to meet this challenge, PSO has opened 1000 New
Vision Station in different areas of the country.

SWOT Analysis
Strengths
 Management (People)
PSO has a team of well-qualified professionals who are dedicated to

achieve the tasks assigned to them most efficiently. The Company claims that their
people are their strength. The company has customer-focused approach to
decision-making and believes in teamwork to accomplish tasks and encourage
empowering team to take timely decisions. They work as a team to achieve their
objectives.
 Storage capacity
PSO is the largest Oil Marketing Company in Pakistan with Extensive

storage capacity, almost 81% of total national storage, i.e. around 860,000 metric
tons.
 Widespread depots and divisions

Chitral.
 Distribution fleet

Chitral and a supply chain supported by 8,500 strong tank-lorry fleet and 3,800
railway wagons.

 High number of outlet
PSO has 4,400 retail outlets across the country including 1,000 New Vision
outlets commissioned within five years.
Internal Factor Evaluation
S. No Internal Factors Weights

1 Management (People
2 Storage capacity
3 High number of outlet
4 Distribution fleet
5 Widespread depots and divisions
S. No Internal Factors Weights

1 Management (People
2 Storage capacity
3 High number of outlet
4 Distribution fleet
5 Widespread depots and divisions

Customer Value Analysis (CVA)
Customer value Attributes
Availability
PSO has extensive storage capacity, almost 81% of total national storage
i.e. around 860,000 metric tons. And, PSO has a large number of outlets, 4400
around the country to ensure availability to all part of the country.
Engine Life
PSO have Greenburn combustion technology with special Greenburn

additive having DFA (Diesel Fuel Additive) and combustion improver technology
which help engine clean and the longer engine life of the vehicles.
Environmental Friendly
PSO’s health, safety and environment (HSE) policy adequately reflects the
company’s commitment to environmental protection and greener work practices as
a stated institutional priority. Introduction of the Green XL Plus Diesel is also an
attempt to keep the environment clean and healthy.
Cost Effective
By the launch of Green XL Plus Diesel PSO is offering its customers more
productivity and Ethyl Technology has decreased maintenance expense of the
engine.

Extra Services
In a high competitive market customer always wants value
maximization. So, to meet the expectations of the customers, companies are trying
to extra benefits and services to its customers. PSO is also offering value added
benefits and services to its customers. Stop-shops, e-marketing place, Credit cards,
Debt cards, Kissan Cards New Vision Station are some examples of value added
benefits.
Assigning Qualitative Weights
Attributes Weights
Availability 0.30
Engine Life 0.20
Cost Effective 0.20
Extra Services 0.15
Environmental friendly 0.15
Total 1.00
3. Customer Value attributes with respect to Key competitors

Purchase Delivery Use Supplements Maintenance Disposal
productivity
Customer
PSO PSO PSO

Simplicity
Caltax
Shell
Total
Convenience
The Six Utility Levers
PSO
4400 outlets
Shell
Environmental
PSO
friendliness
Shell
PSO
Risk
Fun and
Image


Financial Results
PSO’s sales revenue during FY04 stood at Rs. 195 billion. Despite the
massive decline in FO sales volumes to the tune of 2.3 million tons, the company
earned an all-time record profit before tax of Rs. 6.3 billion, while profit after tax
rose to Rs. 4.2 billion, up by 4.5% from prior year. Had the company sold the
same FO volume as in the preceding year, it would have recorded much higher
revenue as well as profits.
Based on this remarkable performance, the company announced a final cash
dividend of Rs. 7.5 per share (75%) to its shareholders, resulting in total dividend
of 175% for the whole year, as against 160% cash dividend declared during the
preceding year.
The total cash payout comes to an unprecedented amount of Rs. 3.0 billion
as compared to the preceding year’s cash payout of Rs. 2.7 billion (an increase of
Rs.300 million). The Board of Management recommended that the net profit of
Rs. 4.2 billion earned during FY04 along with the un-appropriated profit of Rs. 6
million brought forward from the preceding year be appropriated.
The company spent Rs. 2096 million during FY04 with continued
expansion in new vision network in enhancement in infrastructure along with
sizeable expenditure on information technology. It also introduced efficient fund
management system and achieved substantial reduction in financial charges.
Earnings DPS
Most Recent Qtr 7.50 7.06
Last 12 Months 25.78 17.50
Ratios
Price / Earnings Ratio 10.94times
Dividend Yield 6.21%
Payout Ratio 67.88%

Bibliography
Mr. Wajahat Ali Syed Sales manager PSO Lahore,
Mr. Waleed Khalid Sales Officer Industrial Consumer PSO Lahore
Mr. Syed Shafqat Raza Bokhari Terminal Manager and Account Officer
Annual Report 2004
http://www.psocl.com/aboutus/mission_statement.asp
http://www.mpnr.gov.pk/introduction.php
http://www.psocl.com/customer_services/industrial_consumer.asp

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Marketing Plan PSO (Green XL Plus Diesel)

name of God, the Merciful, the Compassionate. Say (O Muhammad) He

is the First and the Last?”

We are very thankful to Mr. Mobin ul Haque at UMT who gives

Strategic Marketing Management

Strategic Marketing Management

Strategic Marketing Management

Pakistan State Oil Company Limited

Strategic Marketing Management

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

 We are committed to leadership in energy market through competitive

Strategic Marketing Management

Strategic Marketing Management

As a progressive company moving rapidly towards infrastructural

Strategic Marketing Management

Furthermore, a state-of-the-art Lube Oil Manufacturing plant has been

Strategic Marketing Management

HSD demand also grew by 5% versus 2% in 2003. The growth is primarily

Strategic Marketing Management

Strategic Marketing Management

Strategic Marketing Management

Strategic Marketing Management

Strategic Marketing Management

Green XL Plus Diesel

Demand & Growth Rate

Due to introduction of Green XL Plus Diesel, the company has

Application of Balance Scorecard

Strategic Marketing Management

Buyer Utility Map

Purchase Delivery Use Supplements Maintenance Disposal

increase has decrease

Strategic Marketing Management

The Price Corridor of the Mass

The Business Model Guide

Strategic Marketing Management

Application of the Brand Report Card on PSO

1. The brand excels at delivering the benefits customers truly desire

2. The brand stays relevant

3. The pricing strategy is based on consumer’s perceptions of value

Strategic Marketing Management

4. The brand is properly positioned

5. The brand is consistent

6. The brand portfolio and hierarchy make sense

7. The brand makes use of and coordinates a full repertoire of marketing

8. The brand managers understand what the brand means to consumers

Strategic Marketing Management

10. The company monitors sources of brand equity

S.No Strong Brand Attributes Ranks

Strategic Marketing Management

Strategic Marketing Management

Strategic Marketing Management

Bargaining Power of Buyer

Strategic Marketing Management

PSO has a team of well-qualified professionals who are dedicated to

PSO is the largest Oil Marketing Company in Pakistan with Extensive

 Widespread depots and divisions

PSO has vast infrastructure of 9 installations and 23 depots from Karachi to

PSO has vast infrastructure of 9 installations and 23 depots from Karachi to

Strategic Marketing Management

 High number of outlet

Internal Factor Evaluation

S. No Internal Factors Weights

S. No Internal Factors Weights

Strategic Marketing Management