final business plan of pso in sm
TRANSCRIPT
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BUSINESS SCOPE
PSO are in:
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. PSO also provides Jet Fuel to Refueling Facilities at 9 airports in Pakistan and ship
fuel at 3 ports. The provision of the highest quality petroleum products and services to customers
PSO wants to be:
To excel in delivering value to customers as an innovative and dynamic energy company that gets to the
future first. They want to expand their business in alternative fuel energy.
CORE VALUES
Excellence:PSObelieves that excellence in our core activities emerges
from a passion for satisfying our customers needs in terms of
total quality management.
Our foremost goal is to retain our corporate leadership.
Innovation:
PSO committed to continuous improvement, both in new
products and processes as well as existing ones. We encourage
creative ideas from all stakeholders.
Respect:
PSOan equal opportunity employer, attracting and recruiting
the finest people from around the country. We value
contribution from individuals and teams. Individual
contributions are recognized through our reward and
recognition program.
Integrity:
PSO uphold our values and business ethic principles.
Professional and personal honesty, dedication and commitment
are the landmarks of our success. Open and transparent
business practices are based on ethical values and respect for
employees, communities and the environment.
Specific Region
3,800 retail outlets (stations) scattered all over
Pakistans geography
Lubricants manufacturing plants in Korangi
and Kemari.
UNCTIONS
Availability
ReliabilityCorporate/prepaid cards facility
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Customers
Automobile owners
High-Street distributors.
Industrial customers
echnology
Mobile Quality Testing Units
Integrated value chainStrong marketing capabilities
Largest retail network
CONSIDERATION
Present Business:
Pakistan State Oil, the largest oil marketing company in the country, is currently engaged in storage,
distribution and marketing of various POL products. The companys current market share of 82.3% in the
black oil market and 59.4% share in the white oil market, alone speak volumes about its success.
Future Business
The Managing Director briefed the future business strategy stating that the management and employees shall
continue to work towards establishing PSO as an energy solution company in full compliance with HSE
standards. He added that the company shall reinforce technology-driven value-added initiatives and shall
work towards increasing income from non-fuel and gaseous fuel businesses.
RELATIONS WITH OTHER BUSINESSES:
Although the market share of PSO is the largest in the industry. The main competitors of it are Shell and
Chevron.PSO has maintained a 30-year mutually-beneficial business relationship with Kuwait Petroleum
Corporation (KPC) for the purchase of HSD and FO. Other than importing products, various refineries in
Pakistan including Attock Refinery Limited, Pakistan Refinery Limited, BOSICOR, NRL and PARCO cater
to our product needs including that of LPG, motor gasoline, kerosene, jet fuels, high speed diesel and furnace
oil. And also export oil to Afghanistan.
Business we are not in:
Engine parts manufacturing
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Corporate Responsibility:
PSO promotes health safety environment and culture both internally and externally. We emphasize on
community development and aspire to make society a better place to live in.
PSO EXTERNAL ENVIRONMENT
MARKET STRUCTURE:
We are focusing on the SBU of PSO which is petroleum business and have many competitors in market. The
main competitors are Shell and Caltex; but the PSO maintained its leadership in industry. In this market,
government decides the prices of petroleums. This market is divide into four segments which are;
vehicles/generators owners, industries, agricultures, transportation segments.
APPLICATIONS RETAILS
CONSUMERS
INDUSTRIES AGIRCULTURES TRANSPORTATION
PRODUCTS Kerosene Oil
LDO
Fuel oil
HSD
Fuel Oil
LDO
HSD
Fuel oil
JP1
HSD
Fuel Oil
Petrol pumps Distributors
DIRECT FROM
COMAPNY
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ANALYSIS OF MARKET STRUCTURE:
In this table shows that how the market supplies or serves the sectors, the OMCs supply the oils to retail
consumers through their retail outlets, industry sector directly demand from companies, the agriculture sectorfulfill their demands through distributors and petrol pumps and the transportation sectors include railway,
aviations and marine serve by companies directly.
PAST MARKETSIZEINMILLIONOFTONS
MARKET
SEGMENT2006 2007 2008 2009 Growth P.A
Retail consumer
segment1,183,458 1,851,662 1,456,709 1,521,415
-2.075 %
Industries
Segment15,073,715 15,229,371 16,723,132 16,294,092 4.53%
Agricultures
Segment8.098,952 8,018,209 8,045,617 8,106,525 0.85%
Transportation
Masses Segment23190827 23466125 24482171 24574355 5.5%
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ANALYSIS
y Since 2006-07 the automobile market is growing rapidly by over 40% per annum due to readily
available car financing and reduced interest rate. The automobile sector registered a growth of 29.8%
in Jul-Mar FY06 .All major assemblers are in the process of expansion
y But in 2008 and 2009 It is decline in retail consumer segment because bank bring to a close car
financing due to which petrol utilization is reduce and because people are switching to CNG.
y Demand for electricity is strong because of improvement and growth in the manufacturing sector .FO
consumption levels has been high historically.
y Agriculture always needs the fuel oil so in this sector we can see the growth consistently. Transport
segment shows the growth of 5.5 % Pakistan remains equally strong in Aviation and Bunker Sales.
Fuel industry has been constantly upgrading its facilities to serve a wide range of commercial
aircrafts, airplanes, and railways. And projected import and export of the country is also increased.
FUTUREMARKETSIZEINMILLIONOFTONS
MARKET
SEGMENT
2010 2011 2012 2013 Growth P.A
Retail
consumer
segment
1555353 1419049 1362557 1685331 -.6.6 %
Industries
Segment12326633 12474257 14759014 15842366 5.5%
Agricultures
Segment
9056620 9535109 9436848 9711707 1.9%
Transportation
Masses
Segment
13250204 13575001 15771123 16885302 9.8%
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ANALYSIS:
y PSO will make cash payment mandatory for additional furnace oil supply to the defaulting
independent power producers (IPPs),y The future growth in retail consumer segment will going to decrease further because low investment
in petrol pumps and people are switching to CNG and alternative energy as well.
y Demand for electricity is strong in future because of improvement and growth in the manufacturing
sector, so industrial segment will grow more in future
y Pakistan heavily dependent on agriculture segment and heavy machineries is using in agriculture and
in future as technology is increasing so that will creates the demand of fuel oil in hope so this sector
will grow in future.
y Pakistan remains equally strong in Aviation and Bunker Sales. Fuel industry has been constantly
upgrading its facilities to serve a wide range of commercial aircrafts, airplanes, and railways. And
projected import and export of the country is also increased by 6 % thus might result will increased
business in this segment.
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PRODUCT LIFE CYCLE STAGES (INDUSTRY)
We have selected SBU of PSO, and here we are interested to know that which product of PSO lies at which
stage
MARKET
SEGMENTINTRODUCTION GROWTH MATURITY DECLINE
Retail consumer
segment
Industrial Segment
Agriculture Segment
Transportation
(AVIATIONS,
MARINES &
RAILWAY)segment
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ANALYSES OF PLC STAGES
Petroleum industry in Pakistan is generally divided into four huge segment
y Retail Consumer segment
y
Industrial segment and it is furthur classified in to three segments.
o General Trade (For the General Trade segment includes the major customers like, NLC, POF
Wah, Police, KMC, KWSB, Gairon, Ruplai Group, Engro Chemicals and Pakistan Steel Mill )
o Defence
o Power Industry (like KESC, HUBCO etc.)
y Agriculture segment
y Transporation segment (AVIATIONS, MARINES & RAILWAY)
The Petroleum industry represents three huge OMCs companies in which one is Pakistan State
Oil(PSO) others are Shell and Caltex . Petroleum industry is categorized into two main markets
according to the nature of the products and their usage. The Whit Oil segment includes MOGAS,
Kerosene, Diesel and Jet Oil that are purified fuel. The Black Oil segment represents the products,
which are less purified and used in mostly industrial sectors. But we are fousing on their one SBU
that is fuel oil.
The market share of PSO in fuel oil is 67 % and shell is 22 % and others are 11%. Well PSO is
mature on Retail consumer segment, because PSO has the largest distribution channel, which has
more then 3800 outlets in Pakistan, and main thing in fuel oil is availability and PSO is also offering
plastic cards for the retail and industrial consumers according to their requirements. Loyalty Card
Prepaid Cards (available in Rs. 500, 1500, 2500 & 5000), Fleet Card for Corporate Vehicles,
Corporate Card for Corporate employees which provide the conveinence to the customers and built
loyality.well other major players of this industry is also in mature.
PSO is in growth in industrial segment, PSO is solely providing fuel in power sectors, HUBCOKESC and other largest industries of Pakistan as well, it is continuously upgrading on this segment.
And shell is also in growth while Caltex is on introductory stage on this segment.
In Agriculture and Transportation segment PSO is in growth stage,PSO fuels the aircrafts of many
local and international airlines.
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COMPETITION/ SEGMENT MATRIX
We are analyzing here market attractiveness with respect to our competitors and segment wise in which we
are interested to know historical growth, projected growth and companys profitability with respect to
segment covered by our & other companies. We have gather information of market share of companies from
different sources and based on assumption that these three companies captured 89.81% market share overal
of oil industry in Pakistan and remaining shares are covered by rest of the companies.
Competition Retail
consumer
Industri
al
Agricultu
re
Transport
ation
Total Overall
market share
1.PSO 43% 54% 100% 55% 100% 43.28%
2.SHELL 35% 38% 0% 29% 100% 30.15%
3.CHEVRON 18% 3% 0% 14% 100% 16.38%
Others 4% 5% 0% 2% 10.19%
100%
Historical
Growth-2.075 % 4.53% .85% 5.5% 2.20%
Projection -6.6% 5.5%
1.9%
9.8% 2.65%
++ ++ ++
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ANALYSIS
PSO and SHELL have face to face competitions with each other in retail consumer and industrial segment
capturing most part of these segments while other local companies are far away.
PSO sustain its leadership in agriculture and transportation segment. This shows that 4 big segments are
captured by three giants while segment of industrial and transportation is less captured by CALTEX.
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ANALYSIS:
In the distribution structure we can see the company focuses on direct supplying due to cutting the cost for
this company have also build a healthy relationship with the customers and also build a strong brand image.
INDUSTRIAL SEGMENT
PSO supplies the oil (Black/White) to industry by two major sources which are direct to customers and
another by distributors. Company mostly engages in negotiation with distributors on commission rate, but it
is necessary because distributors make the product images. They recommended only that product to
consumers which they earn more commission. So PSO only use this channel for only building the strong
brand image on customer mind. After the establishment of brand image company focuses on supplies directly
in industry.
AGRICULTURE SEGMENT
On agriculture sector there are very few of special products which are only use in agriculture and have
limited stocks so the customers directly approach the distributors for fulfill their demands and consumers get
sufficient knowledge about the product so these types of products are dealing by distributors. For the
promotion of product that is the best channel to use this channel which we can say the direct marketing. But
this sector, consumers are mainly use the retail outlet sources for fuel oil and HSD.
RETAIL CONSUMERS SEGMENT
In this segment PSO entertain their customers with non fuel retail business in which they provide all the best
facilities to their customer with fuel. By which customers are bound to visit the PSO retail outlets.
TRANSPORTATION SEGMENT
PSO supplies fuel directly to aviations, marines and railway because this sector totally control by
Government so being the semi- government organization PSO have fulfill their demands directly and no need
for any intermediate in this sector.
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DISTRIBUTIONS SHARE AND COMPANYS POSITIONS (2010)
All figures of Sales per dealers are taken basis on assumption and certain idea given by one of dealers to us.
% of Rs
mln
All Pakistan
distribution
Companies
turnover share
competitors
turnover share
Outlet
Coverage
PSO 3600 3.02% 44%
SHELL 1900 2.2% 23%
CHEVRON 1200 1.7% 14.06%
Others 1500 2% 18.29%
Total 8200
Turnover Share = Cos Sales per Dealers/ Cos Sales by all Dealers
Outlet Coverage = Cos Dealers / Dealership
Total Distribution of Oil industry is around 8200 in Pakistan bases on our estimation for selected companies.
Companies turn over share is calculated basis on taking assumption of sales per dealers of PSO having 3600
dealers overall.
Similarly, in 2009, Shell has 1900 dealers in Pakistan, and its sales per dealer assumed i.e. around 2.2% turn
over share. Similarly chevron is having 1200 dealers in 2009-10. Its turn over share is 1.7%.
Based on available information and certain assumption we have calculated outlet coverage of each dealership
with respect to each company.
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EXTERNAL TRENDS
Trend Potential Impact PSO Shell Chevron
Global rise in petrol price Limiting the petrol
consumption.
*
Economic situation Lower down the profit margin *
Government regulation Petrol price are controlled by
government.
*
DESCRIPTION OF EXTERNAL TRENDS:
1. Global rise in petrol prices.
As the price of an oil barrel reaches $84, Oil Marketing Companies (OMCs) are force to increase their prices
of petrol. This in turn leads to consumers limiting their Petrol consumption accounts for a lower frequency of
visits to petrol stations. This would hurt lubricant sales from both convenience and impulse buyers. Shell
Pakistan has been able to sustain lower prices due to backing from their worldwide operations in lubricant.
Thus price conscious consumers would also be swayed from purchasing at PSO outlets.
2. Economic Situation.
The economic situation of Pakistan serves as a major driving force in this Industry. Since a large part of
economic wellbeing for any society depends heavily on the petroleum industry, a global rise in petrol prices
would impact the economic situation of Pakistan negatively, but PSO has a strong support from the
government and financial stable with the strong reserves, paid-up capital adds the trust of stakeholders.
Taking Advantage
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3. Government Regulation.
Government regulations serve as a major driving force in this industry. Tariffs on Imports, lower duties, and
entry barriers, all play a part in the wellbeing on the industry. The Pakistani government provides incentives
to OMCs as they contribute significantly towards the economy.PSO, being a government organization, has to
adhere to government regulations in several forays of their marketing activities. This has both positive and
negative implications on business efforts.
SWOT ANALYSIS OF PSO
Strengths
1. Market Share of 70% is one the main strength of PSO.
2. Company reputation in the industrial sectors adds the strengths for PSO.
3. Product quality is also strength especially in industrial sector.
4. Service quality like plastic cards and non-fuel activities adds the value.
5. Distribution & Fleet network, which covers 81% country retail network, is the key edge on PSO its
competitors.
6. Promotional activities add value in brand awareness and attraction of new customers.
7. Innovation like Auto Car Wash helps PSO to differentiate with its main competitors.
8. Storage capacity, which holds 80% of total storage capacity of the country, is also key advantage over its
competitors.
9. Technical skills in Fleet management are strength for PSO.
10.Visionary, capable leadership adds value to PSO strength like their NVRO operations.
11.Financial Stability with strong reserves, paid-up capital adds the trust of stakeholders.
12.Product line width adds long range of products for more revenue opportunities.
13.Castrol brand affiliation with PSO adds strength in terms of brand awareness.
14.Relations with Government one of the key strength of PSO in order to get legal protections.
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Weaknesses
1. Lost & Dissatisfied customers are major weakness of PSO as they are causing the perception of inefficient
PSO.
2. Old retail outlets are major weakness for PSO as they are not enough capable to compete the Shell, Caltex or
Total outlets.
3. Untrained staff at outlets is causing inefficient services.
4. Quality assurance is not so effective to build the image of Quality & Quantity.
Opportunities
1. Afghanistan's Market is the biggest opportunity for OMCs in Pakistan.
2. De-regularities of Oil industry in Pakistan add the opportunity to fill the deficiency in few sectors of
petrochemicals markets.
3. Export Opportunities of Black Oil Products is also adding the opportunities by exporting Black Oil products,
which is facing downfall due to the introduction Gas Oil.
4. Industrial & Trade growth in Pakistan is also the opportunity for PSO as they are adding revenues in Power
sector that is the major customer of PSO.
Threats
1. Risk of forward integration of Supplier is the key threat for PSO and other OMCs in Pakistan. As the
example, the PARCO who is one of the main POL product suppliers to OMCs adopt the forward integration
strategy by introducing its own OMC with its new business alliance TOTAL and named its OMC as TOTAL-
PARCO.
2. Risk of Diversification in technology is also a key threat for PSO as due to new technology used in industria
sector is causing decline in particular POL products.
3. Availability of Substitutes in Black Oil Market are causing a solid reason for the declining trend in Black Oil
Products, which is major threat for PSO.
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CONFRONTATIONMATRICES
OPPORTUNITIES
OPPORTUNITIES
y Industrial & Trade growth in Pakistan
is also the opportunity.
y Expansion to foreign markets
particularly in less developed
countries
o Export Opportunities of Black
Oil Products is also adding the
opportunities by exporting
Black Oil products, which is
facing downfall due to the
introduction Gas Oil.
y Unable to meet the local demand
because of catering the new market in
Afghanistan.
y Privatization prospect.
y Lack of research and development.
y Explore unaware demand and
expanding the company product line
to meet the broader range of customer
needs.
S
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THREATS
THREATS
y Global externalities are key threat, if
they expand their business in other
developing countries so they can
recognize them selves as multinational
company.
y Political instability but Relations with
Government can get them legal
protections.
y Aggressive marketing and
development by competition, but they
are Financial Stable with strong
reserves, paid-up capital adds the trust
of stakeholders so they can a do a
better promotional activities which can
add value in brand awareness and
attraction of new customer.
y Adverse governmental policies.
y Growing competitive pressure.
Weak conceived image
y Plagued with internal problem
y Unstructured Human Resource
department.
S
TR
EN
GT
HS
W
EA
KN
ES
SE
S
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HOW WELL THE COMPANYS PRESENT STRATEGY IS WORKING
LAGGING INDICATORS:
y All time record sales revenue of Rs.135 billion, ($2.10 billion) up 17% over prior the year Growth of
5% in its sales volume that touched 12.7 million tons.
y
Profit before tax of Rs.3.6 billion ($ 56 million); up 7% over prior year.
y Highest ever cash dividend of 100% Rs.1.4 billion.
y Successfully took over the fuel oil imports from the Government of Pakistan.
y Signed long term product off-take agreement with Pak Arab Refining Company (PARCO).
y Ranked as No.1 performing company in Pakistan by Karachi Stock.
y Exchange received award for the 16th consecutive year.
y Board of Management reconstituted by Government of Pakistan; principles of corporate governance
established.
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LEADING INDICATORS:
y PSO enjoys the leadership in major sectors and mainly focuses on industrial sector especially in
power projects, like KESC. PSO and KESC have signed a Fuel Supply Agreement on mutually
agreed terms. According to the agreement, PSO will supply up to 33,000 MTs of furnace oil to
KESC every month under the new commercial terms. The duration of the agreement is 10 years.
y On these days, PSO works on alternative energy in biomasses, and become energy provider in
industry.
y Continuous improvement in new vision retail outlet, serve the best facilities to their customers in
one roof, these business known as NFR (Non Fuel Retail). PSO, signing an agreement with
Pepsi Cola International, to supply beverages at PSO Shop Stops nationwide.
y
Organize the events for build strong brand image; recently they organize the golf tournament inCountry Club. PSO celebrated Customer Interaction Programs (CIP) and CNG Customer Care
Day at select PSO outlets in Karachi. The objective of the day was to honor and increase
interaction with the customers while providing them with an opportunity to interact with PSO
management.
y A special consumer promotion scheme was also launched to further augment customer
experience. Under the promotion, all customers who purchased a CNG Plus Oil lubricant received
a free CNG refill worth Rs. 100.
y Pakistan State Oil (PSO) has launched its environment and consumer friendly E-10 fuel in
Punjab. Sale of E-10 fuel will now be available at selected PSO retail outlets in all major cities
and towns of Punjab. E-10 Fuel will serve as a cost- relief to the inflation stricken masses, as it
offers price economy/saving of Rs. 2.50 per liter than normal unleaded motor gasoline. The
widespread use of the eco-friendly fuel will also help the country reduce its dependency on
imported gasoline.
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KEYSUCCESSFACTOR:
PSOs Sustainable Competitive Advantage is their association with Castrol. Castrol is the worlds leading
manufacturer of the highest quality grade of Motor oils, and PSO has garnered the license to solely mix and
market their lubricants under the Pakistan State Oil mantle.
y Lead time in manufacturing and marketing.
y Lowest cost operator.
y Largest retail network.
y Corporate emphasis on pioneering innovation.
y Government support
y Strong financial reserves and paid-up capital.
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RATING AGAINST CUSTOMER KEY BUYING CRITERIA
We have been using assign weight age in percentage to product related and service related factors which are
important and appeals insight of customers. For analyzing we have selected six product related factors and 2service related factors
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ANALYSIS
Here we have weighted down some important relative factor of PSO, Shell and Caltex which are important
from customer point of view.
We have assigned a weight of 36 to Engine maintenance out of which PSO gained 14.and in performance we
have assigned a weight of 30 out of which PSO gained 10. Because these are the attributes that mostly affects
the customer and PSO fuel supply a better performance as contrast to their rivals.
The total weight of Brand Image is 12 and quality is 9 out of which PSO gained 2 in brand image and
quality which is less then their competitor. Because PSO have an issue of brand image and quality because of
a negative Consumer perception of cheating in petrol pumps, mixing of impure oils, low quality product
offering at PSO.
Similarly in service attributes we have allocate a weigh of 3 to Attendants responsiveness and Efficiency of
free oil change service out of which PSO gained 0 in attendants responsiveness and 1 in efficiency of free
oil change service while Shell has gained 2 because of their better services at petrol pumps.
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PSOS RELATIVE PERFORMANCE RATING
ANALYSIS
y According to the customer buying criteria PSO gained 14 point out of 36 in engine maintenance so
PSO placed it in better position so they keep it up to maintain their position.
y While quality of PSO is almost similar as contrast to their competitors.
y But the Brand image of PSO and attendants responsiveness is worse so they should have to improve
it fast.
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VISION STATEMENT
To excel in delivering value to customers as an innovative and dynamic energy company that gets to the
future firstMISSION STATEMENT
PSO is committed to leadership in energy market through competitive advantage in providing the highest quality
petroleum products and services to our customers, based on:
y 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
y Lowest cost operations and assured access to long-term and cost effective supply sources
y Sustained growth in earnings in real terms
y Highly ethical, safe environment friendly and socially responsible business practices
BUSINESS OBJECTIVES:
Get recognized as an energy company through diversification and integration.
Retain market leadership in all key products.
Maximize shareholders wealth by sustainable growth in earnings.
Established PSO as a brand of choice for customers.
Utilize all available resources optimally.
Fulfill social responsibilities.
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KEY ISSUES
y Consumer perception of cheating, mixing of impure oils, low quality product offering at PSO.
y Consumer perception that internationally renowned competitors offer high quality, whereas national
company equals low quality.
y Sales from un-branded lubricants account for nearly 35% of total sales.
y PSO has the largest retail network, yet still fails to secure the highest market share in the industry.
y Being a semi-government organization means more bureaucracy and slow decision making.
y PSO does not maintain the same standards of quality for service and point of sale at all of its stations.
y Lack of trust with dealers.
y Non-effective provisional checking policies and standards.
CHALLANGES
The Company is faced with the challenge of declining market share of key products due to strong
competition, shift towards CNG in motor vehicles, substitution of fuel oil for power generation with natura
gas and threats from the smuggled and counterfeit products. The steps being taken by management to
address the challenges are expected to yield favorable results. The government has taken a number of steps
towards deregulation and privatization of Oil and Gas Sector. These include restructuring of the boards of
public sector corporations for good governance and phased deregulation. There have been extensiv
consultations between the government and the industry towards implementation of these policies. These
initiatives from the government and the consultative processes are laudable and will lead to greater
efficiencies of the industry and improved quality of services to the customers. It will also open up
substantial opportunities for investment in the privatization and future growth of the Oil and Gas Sector
Given an autonomous Board of Management, a better trained professional and effective employee team and
strong infrastructure, PSO is well positioned to take advantage of the opportunities opening up due to
deregulation of the Petroleum Sector with potential for enhanced future earnings.
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IMPACT OF ISSUES ON STRATEGIC PROFILE
Issues no Issue 1 Issue 2 Issue 3 Issue 4
Issues name Quality
issue
Decision Making
issue
Consumer
perception
issue
Promotional
issue
Customers &
Customers demand
++ ++
Regions ++ ++ +
Market segments + + ++
Needs/wants/appli
cations
++ ++
Products
(prices)/services
+
Operations
(Production/Logist
ics
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8/9/2019 Final Business Plan of Pso in Sm
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Strategic Management Business Plan of Pakistan State Oil-PSO
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ACTION PLAN
DEVELOPMENT IN ALTERNATIVE ENERGY
PSO has to promote alternative sources of energy in different sectors to overcome the current energy crisis in
the country. Without utilizing the alternative energy resources the progress in many fields is not possible.
PSO works on alternative energy in biomasses, and become energy provider in industry.
EXTENSION IN NETWORK
The Company has launched an aggressive plan to build New Vision retail outlets to provide better quality
service to its customers. 110 outlets were completed during the year and more are being built. A strong focus
is being placed on customer and forecourt services with extensive training of field sales force and attendants.
Mobile quality control vans have been introduced in major cities to monitor quality of products being
supplied to our customers.
VALUABLE DISTRIBUTION
Continuous improvement, innovation along with diversification has enabled PSO to enrich its market share.
It has strategic investments in refining and distribution companies such as Asia Petroleum Limited, Pak
Grease Manufacturing Company, Pakistan Refinery Limited and White Oil Pipeline Project. These
investments give PSO a strong backing in terms of achieving inventory. With an extensive storage capacity
of 860,000 metric tons, the company has 3,700 retail outlets across the country while more to come in future.
INCENTIVES FOR DISTRIBUTORS/SUPPLIERS
To motivate and strengthen dealer network, dealer meetings/conferences have been held. Efforts of high
selling dealers have been recognized through "Million Liter" award.
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8/9/2019 Final Business Plan of Pso in Sm
30/30
Strategic Management Business Plan of Pakistan State Oil-PSO
TECHNOLOGIAL ADVANCEMENT
Mobile quality control vans have been introduced in major cities to monitor quality of products beingsupplied to customers. An innovative service "Mobile Quick Oil-Change-At-Your-Doorstep" has been
launched in Karachi, Lahore and Islamabad.
BRAND ENRICHMENT
A number of successful media campaigns (PSO Petro Prize & Scratch-a- Match) have been launched to
strengthen the PSO brand. Marketing alliances with international brands like Pepsi, Walls and Citibank have
been formed. These and other steps are beginning to produce results and the decline in market share in key
products is being arrested.
PSO MARKETING OPERATION
The following are five main competitive edges for PSO over its key competitor Shell Pakistan.
1. PSOs vast storage capacity means ensured supplies.
2. PSOs vast logistics support meeting huge demands in shorter time.
3. PSOs widespread depots and divisions to serve the customer better.
4. Quality and Quantity assured through PSO Fleet of Quality Vans.
5. Prepaid, Loyalty, Fleet and Corporate cards add value to customers.