report information for marketing edit version final
TRANSCRIPT
MODULE CODE: BD 315 013 S
MODULE TITLE: Marketing Consultancy
WORD COUNT: 7000
STUDENT ID’s:
Presents Its: Recommendations
To
Phoenix Park Gas Processors Limited
Definitive Marketing SolutionsThink Different, Be Different...
Executive Summary:
Project / Team Details
TEAM Name: DEFINITIVE MARKETING SOLUTIONS
Slogan: Think Different, Be Different....
Project Team Members: Project Interface/Client Contact Richard MungalsinghProject Planner/ Scheduler Neera Moonesar Project Research Strategy Officer Marcus Sookram and
Natalie Samaroo-BachanProject Coordinator/ Team Leader Delicia VillaroelProject Document Controller Arlene Balkaran
Case Study Company (Client): Phoenix Park Gas Processors Ltd. (Referred to within this report as PPGPL)
TABLE OF CONTENTS
1.0 INTRODUCTION .....................................................................................................................
1.1 Introduction to Company ........................................................................................................
1.1.1 Background to Industry and Environment ..............................................................
1.2 Research Problem .................................................................................................................
1.3 Working Title .........................................................................................................................
1.4 Objectives ..............................................................................................................................
1.5 Justification ...........................................................................................................................
2.0 METHODOLOGY ..................................................................................................................
2.1 Types of Research .................................................................................................................
2.1.1 Descriptive Research .............................................................................................
2.1.2 Explanatory Research ...........................................................................................
2.1.3 Archival Research .................................................................................................
2.1.4 Justification of Research Methods ........................................................................
2.2 Types of Data ........................................................................................................................
2.2.1 Qualitative Data ....................................................................................................
2.2.2 Quantitative Data .................................................................................................
2.2.3 Justification of Select Data Type ..........................................................................
2.3 Methods of Data Collection ..................................................................................................
2.3.1 Secondary Methods .............................................................................................
2.3.2 Primary Methods ..................................................................................................
2.4 Analysis of Data ..................................................................................................................
2.5 Limitations to Research .......................................................................................................
2.6 Ethical Issues ......................................................................................................................
3.0 RESEARCH FINDINGS .......................................................................................................
1.0 INTRODUCTION
1.1 Introduction to the Company/ Client:
Phoenix Park Gas Processors Limited (PPGPL) is one of the largest gas processing facilities in
the Americas. Operating since 1991 out of the heart of Point Lisas Industrial Estate, PPGPL
provides an essential natural gas conditioning service for the National Gas Company of Trinidad
and Tobago (NGC).
NGC currently holds 51% shares of PPGPL, ConocoPhillips Incorporated (39%), and Pan West
Engineers & Constructors Incorporated (10%). Even though being majority owned by a State
Enterprise, PPGPL operates similar to a private company buying, transporting and selling its
products, managing its finances, employing staff, paying taxes and planning for its future.
Being an excellence driven, customer focused company PPGPL has successfully maintained its
core business for over 16 years in natural gas processing, NGL aggregation, fractionating and
marketing natural gas liquids from the Atlantic LNG Trains 1, 2, 3 and 4 facilities. With
continuous improvement focused on its “people” and “business” PPGPL has an excellent track
record in health and safety as evident by its 14 year safety record. Much emphasis is also
placed on Corporate Social Responsibility, making meaningful contributions to national and
community projects within the island, maintaining one of its CORE VALUES of “Valuing all
People”.
[Source: www.ppgpl.com; client interview]
1.1.1 Background of the Industry and Environment:
Trinidad and Tobago is one of the most prosperous, highly diversified and industrialised
countries in the Caribbean with an energy based economy responsible for 42.5% of the nations
GDP (Gross Domestic Product).
PPGPL being a major competitor within the petrochemical sector plays an integral role with its
strong operating efficiencies manifested in very low operating costs. This principle enables
PPGPL to provide its major products of Propane, Butane and Natural Gasoline at exclusively
low prices, always holding a competitive advantage to its rivalry. Dominating its market position,
PPGPL supplies the Caribbean with propane and butane whilst supplying its natural gasoline to
the North and South America.
Having distinguished itself with a reputation both locally and internationally, for efficient, high-
quality and reliable service, PPGPL also derives a significant advantage from its ability to
service its regional customers with requisite volumes and product specifications required for this
market and strong customer loyalty for over a decade.
However, over recent times the find of “Shale Gas” has been a point of concern for PPGPL.
Research originally indicated that “Shale Gas” is a cleaner and more environmentally friendly
product than Natural Gas, in addition to being marketed along the lines of highly economical
and cost effective drilling operations. This can pose negatively on Natural Gas Processors and
by extension the sale of natural gas.
[Source: www.ppgpl.com; client interview; ministry of trade and industry 2011 booklet]
1.2 Research Problem:
With the introduction of Shale Gas on the market, Natural Gas could experience sales decline
which would directly impact the operations of PPGPL. However, it is in the power of PPGPL to
ensure their product offerings remain at highest standards delivering a high quality product and
service experience to its customers at all times.
With the need to control and encourage better relationships and communication with customers,
PPGPL designed an internal customer survey report to manage and track customers’ views of
the organisations performance. When compared 2008 to 2009 surveys, marketing department
saw a 1% decline in customer’s perception of overall performance. Even though a very small
decline, management believes some attention should be given to prevent a further slide as they
are on a drive to encourage better customer/client relationships.
Major areas of concerns identified by the survey: -
- Products
- Facilities
- Reliability of Supply
- Communication
Based on the above, Marketing Officer of PPGPL– Mrs. Kellee Richards identified the following
areas of major concern when interviewed (See Appendix1). Mrs. Richards wishes to have
Definitive Marketing Solutions analyse the identified areas and present recommendations to her
department.
Marketing Department holds the strongest relationships with customers. However, the
department wishes to have some measures implemented with the aim of covering the following
areas – retaining customers, attracting new customers and dealing with difficult customers. In
addition, measures to encourage the entire organisation in sharing the same holistic view of the
customer.
As appointed consultants for PPGPL, the team analysed the indicated areas and found each
one to be a different theoretical area of study. However, to meet the expectations of the client
by providing recommendations to outline all areas of concern, Definitive Marketing Solutions
strategically linked the problem to the newly developed theoretical area of – “Customer Relationship Management” which covers each area identified above.
1.3 PROJECT WORKING TITLEAn evaluation of the effectiveness of Phoenix Park Gas Processors Limited (PPGPL)
Customer Relationship Management (CRM) Plan
1.4 PROJECT OBJECTIVES - To analyse the internal and external environment of the organisation within its industry
- To examine Customer Relationship Management within the organisation
- To determine the effectiveness of the organisations Customer Relationship Management
Systems
- To present recommendations and conclusions on the basis of strengths and/or
weaknesses of the analysed data
1.5 Justification of Objectives: - The environmental scan will be carried out to develop a better understanding of the
environment in which the organisation operates. This will help determine the current position,
future direction, identify trends and changes which will be used in the analysis of the research
problem.
- The existing Customer Relationship Management processes will be examined to identify
strengths and weaknesses within the organisation. The results will help to draw conclusions and
recommendations to the problems identified.
- By assessing the effectiveness of the current Customer Relationship Management Plan,
recommendations can be made based on the findings enabling maximum effectiveness.
- Recommendations and conclusions will be drawn based on strengths and weaknesses of the
research carried out. This will provide for improvements where needed within the organisation’s
Customer Relationship Management, developing improved company/client relationships and
achieving success of PPGPL’s “Overall Performance.”
2.0 METHODOLOGY
2.1 TYPES OF RESEARCH
This area of the report will explain how Definitive Marketing Solutions aims to carry out research
on the client company and the methods which will be utilized for data collection.
Saunders et al 2007:602 defines methodology as “the theory of how research should be
undertaken, including the theoretical and philosophical assumptions upon which research is
based and the implications of these for the method or methods adopted.”
2.1.1 Descriptive Research
Descriptive research is “to portray an accurate profile of persons, events and situations”
(Robson 2002: 59). The main goal of this type of research involves gathering data that
describe events and then organizes, tabulates, depicts, and describes the data. It is quantitative
and uses surveys, interviews, observations and portfolio.
“Descriptive research also known as statistical research, describes data and characteristics
about the population or phenomenon being studied. This answers the questions who, what,
when, where and why”. [www.sensagent.com]
2.1.2 Explanatory Research
“Explanatory research can be defined as a method or style of research in which the principal
objective is to know and understand the trait and mechanisms of a situation or problem in order
to explain the relationship and association between the independent and dependent variable”.
[Saunders 2009]. It builds on exploratory and descriptive research and goes on to identify the
reasons for something that occurs. Explanatory research looks for causes and reasons. This
research is done through the use of questionnaires, interviews, group discussions and random
sampling.
2.1.3 Archival Research
“This methodology is primarily concerned with the examination of historical documents. It is
concerned with any recorded data”. [Milton and Jenkins 1985]In addition “Archival Research strategy allows research questions which focus upon the past
and changes over time to be answered via exploratory, descriptive or explanatory methods”.
[Saunders et al 2009]
2.1.4 Justification of Research Methods
Definitive Marketing Solutions will apply all the above research methods as follows: -
- Descriptive Research will be used to focus on the strengths and weaknesses of the
company’s current situation in order to make appropriate recommendations. By gathering
descriptions of “what is” and comparing them to “what the organisation would like” managers at
‘PPGPL’ can see the relevant areas that needs to be addressed and improved. This can be
achieved by the use of visual aids such as graphs and charts.
- Explanatory Research methods will be used to allow researchers to conduct research and
gather information which will explain the possible downfall in the current Customer Relationship
Management Plan identifying the level of effectiveness and enabling the researchers to achieve
its objectives through the use of the following methods - questionnaires, interviews, group
discussions and random sampling.
- For this research project Archival Research is recommended, since, all the data/ information
collected will be acquired via the company’s database (Financial reports, surveys, company
overview etc.)
2.2 TYPES OF DATA
Data analysis techniques are divided into descriptive (Quantitative) and statistical (Qualitative)
analysis. Tukey’s, 1977 states “the uses of diagrams are essential when exploring and
understanding data”.
For example: charts, graphs, surveys etc.
2.2.1 Qualitative Data
Qualitative researchers aim to gather an in-depth understanding of human behaviour and the
reasons that govern such behaviour. This method investigates the” why” and “how” of decision
making, not just “what”, “where” and “when”. Qualitative data analysis allows the researchers to
develop theory from data collected. [Saunders et al 2009]
2.2.2 Quantitative Data
“Quantitative research uses sampling techniques (such as customer surveys) whose findings
may be expressed numerically, and are amenable to mathematical manipulation enabling the
researcher to estimate future events or quantities”. [http://www.businessdictionary.com/definition/quantitative-research.html]
2.2.3 Justification of Select Data Type
Qualitative Data - This type of data collection will be used allowing researchers to investigate
the “why” and “how” of the research problem. The analysis will identify customer and
employees’ perception of the company, identifying the perceived need for improvement with the
existing Customer Relationship Management Plan. This will be done by gathering data through
mainly interviews and questionnaires. Stutely’s (2003) statement - “a minimum number of 30 for statistical analyses provides a useful rule of thumb.” However, based on size of
customer base, sample population will be restricted to no more than twenty.
Quantitative Data - This type of data will enable the researchers to analyze the data collected
from the research design (samples, statistics, graphs, charts etc.) identifying the problematic
areas of the company’s Customer Relationship Management Plan. This analysis can be used by
the company to improve or recommend long-term strategies for building and improving future
relationships.
2.3 METHODS OF DATA COLLECTION
“Data can be defined as the facts or things used as a basis for inference or reckoning,” (Collis and Hussey, 2009 p.160). The following were the chosen methods/research tactics to collect
the relevant data to satisfy the research objectives:
2.3.1 Secondary Methods
Secondary data is described by Collis and Hussey (2009) as “data or information that already
exists somewhere having been collected for another purpose”. The secondary data sources
used were the company’s annual reports, customer surveys, internet data, stored data, and
other existing sources. Saunders et al., (2009) explains that secondary data can provide
comparative and contextual data. The group collected information from these sources and
compared the results obtained with the data collected from actual practices. Additionally,
secondary data was obtained quickly and required fewer resource requirements. Data collected
from secondary sources are more open to public scrutiny and therefore should be reliable.
2.3.2 Primary methods
According to Cooper and Emory (1995, p.240), “Primary data comes from original sources and
are collected especially to answer our research question.”
Primary Data Collection Tools: focus groups, interviews and group discussions, semi-
structured interviews, unstructured interviews, questionnaires, texts, pictures, other materials.
Interviews
Kahn and Cannell (1957) as cited in Saunders et al., (2009, p. 213) define an interview as “a
purposeful discussion between two or more people.” Of the three categories of interviews;
structured, semi-structured and unstructured, the one chosen for the group’s data collection was
the semi-structured interview. This allowed flexibility in interviewing personnel from the various
departments across the company. A list of questions, highlighting the relevant themes to be
covered was compiled. For each interviewee, a variety of questions was selected from the list,
varying with the specific organizational context. In some instances, the order of the questions
varied with the flow of the interview, allowing persons to give their general perception and views
of the company in a free flow of information.
The interviews were conducted by the group and notes taken by the Project Document
Controller and later transcribed. The interviews were executed at a restaurant after working
hours to facilitate the participant’s time schedule avoiding undue pressure in evaluating and
answering the questions.
The individuals chosen for these interviews were from functional departments across the
company. This was done to get feedback on the type and level of interaction between the
company and customers. These persons included:
The Chemical Analyst – Mr. Dean Clarke
The Shipping Coordinator – Mr. Aaron Ramnath
The Marketing Officer – Mrs Kellee – Ann Richards
Product Loader – Mr. Javed Hosein
Human Resource Officer – Ms. Joanne Sampath
According to Jankowicz (1995, p.210), “rich and supportive data can be obtained from the
interview as it facilitates the asking of more complex questions that could not be asked on the
questionnaire.” The interviewer was able to clear up any ambiguity in the question and
determine face-to-face how individuals thought and felt about the issue. Other advantages were
that the interviewer asked additional questions and changed the order of questions to better
explore the research question and objectives
Questionnaires
Another method of data collection used was the questionnaire. According to Collis and Hussey (2009, p.354) a questionnaire is “a method for collecting data in which a selected group of
participants are asked to complete a written set of structured questions to find out what they do,
think or feel.” Mainly closed questions were used for ease of analysis. These collected factual
data to make it easier for respondents to answer as well as to minimize non-response rate. A
few open ended questions were used to give participants the opportunity to express their
opinions.
The questionnaires were administered to both local and international customers (100% of the
population) and were self-administered. The method chosen for administering of questionnaires
was delivery and collection within a three day period. All questionnaires were electronically
administered and retrieved in the time allotted.
According to Sekeran (2009, p.251), “the questionnaire avoids interviewer bias and saves time
and expense as a large number of persons can be surveyed together, in a short time. Response
is generally higher because of anonymity.” The group achieved an 80% response rate on the
effectiveness of PPGPL’s customer relationship management.
2.4 ANALYSIS OF DATA
Data was analyzed using quantitative and qualitative methods. Zeithaml, Parasuraman and
Berry’s (1988) SERVQUAL model was used as the guide for the analysis of data for this
research because of its emphasis on the quality of service offered to customers. Empathy,
reliability, tangibility, responsiveness, assurance were analyzed using tabulation and descriptive
methods.
Investigating CRM involved both inductive and deductive reasoning processes at some time in
the project. A deductive approach develops a theory and hypothesis (or hypotheses) and
designs a research strategy to test the hypothesis. An inductive approach collects data and
develops theory on the basis of the data analysis. “Inductive reasoning, by its very nature, is
more open-ended and exploratory, especially at the beginning. Deductive reasoning is narrower
in nature and is concerned with testing or confirming hypotheses” Saunders et al. (2007).
2.5 LIMITATIONS TO RESEARCH
Collis and Hussey (2009) explain that “a limitation identifies potential weaknesses in the
research.” Some of the difficulties faced during the course of the research have been identified.
PPGPL was also in the process of carrying out their internal Customer Survey Report at
the same time the researchers required executing questionnaires, as a result questions
were kept brief and to the point to avoid confusion between PPGPL and Customer.
Analytical methods ------
Time and cost constraints.
2.6 ETHICAL ISSUES
Ethics is defined “as the norms or standards of behaviour that guide moral choices about our
behaviour and our relationships with others”. (Cooper and Schindler, 2008: p.34)
“Research ethics therefore relates to the questions about the formulation and clarification of the
research topic; how the research is designed, gain access, collect data, process, and store,
analyze data and write up the findings in a moral and responsible way”. (Saunders et al, 2009: p. 184)
The researcher proposes best practice in ethical conduct for the completion of the proposed
subject under investigation. The author will ensure moral responsibility is maintained, protect the
rights of people involved in the study as well as their privacy and sensitivity. The confidentiality
of those involved in the observation, ensuring anonymity and privacy, honesty, openness,
objectivity, integrity.
3.0 RESEARCH FINDINGS
OBJECTIVES OF COLLECTING DATA
Definitive Marketing Consultants presents results of research conducted on PPGPL. Data
collected, both qualitative and quantitative will be analysed with the aim of achieving the
objectives of the research.
3.1 Marketing Research Findings
The environmental audit was executed through the use of the understated frameworks: -
Internal Analysis
Mc. Kenzie’s Seven S’s,
Marketing Mix and
SPICC Factors
External Analysis
SWOT
PESTLE and
Porter Five Forces
3.1.1 Internal Analysis – Mc Kenzie’s Seven S’s The internal environment or micro environment of Phoenix Park Gas Processors Limited
(PPGPL) was analyzed by the use of the following frameworks. Data was collected and
analyzed through secondary research and was retrieved via the company’s websites. [http://www.ppgpl.com/company.html].
The Mc Kinsey Seven S’ Model “incorporates different perspectives and mediates an overview
on the relationship and dependencies of organizational factors” (Kerth and Putman 2005 p. 59).
STRATEGY PPGPL aims to position itself as the leader in the energy sector and is committed to
become the number one in the natural gas liquid business globally by 2020. Also to be
number one in safety & environment and customer focus.
STRUCTUREThe organization consists of layers which are headed by the board of directors, leadership
team, supervisory team, technicians, and contract employees.
SYSTEMS
The daily operations of PPGPL are carried out by all the relevant departments of the
business; Operations, Human Resource, Finance, Marketing and Sales department etc.
Each business unit is required to maintain systems of internal control which is appropriate to
the nature and scale of its activities and addresses all significant operational and financial
risks they face and to safeguard shareholders.
STYLEThe company applies participative/democratic style management, which encourages
employee participation before a decision is made by management. They are trained in
operations, finance, customer focus, leadership and innovation
STAFFPPGPL employs one hundred and sixty people. They are trained in operations, finance,
customer focus, leadership and innovation. It is management's responsibility to ensure the
presence of a safe and healthy workplace. Employees include specialist in operations,
engineering, and maintenance skills.
SHARED VALUES
The success of the organization is tied directly to the adherence of the following core
values: safety and environmental preservation, customer satisfaction valuing all People,
ethical business conduct, quest for excellence,
SKILLS The company budget for high overseas training for high tech equipment and specialist
function. The skills required includes; Managers, Supervisors, Lab Technicians, Process
Technicians and Maintenance Technicians.
SOURCE: [http://www.ppgpl.com/company.html].
3.1.2 Internal Analysis – Marketing Mix
PRODUCT - PPGPL provides gas of high quality standard to its customers by processing raw,
natural gas. PPGPL supplies propane, commercial butane and natural gasoline.
PRICE - Industrial prices track international oil market prices.
PLACE/ DISTRIBUTION - The Company’s gas processing and loading dock facility is located at
Point Lisas, Trinidad. Delivering its product via pipelines to customers.
PROMOTION - PPGPL has a very active corporate social Responsibility program which
includes gifts to the nation and sponsorship.
PHYSICAL EVIDENCE - The facility at Point Lisas delivers all the products and is equipped
with air conditioned team rooms; it is centrally located and has two loading docks at Yara
approximately one mile from its office.
PROCESS - The Company operates its facility according to international standards and codes
which informs its procedures and policies. It is governed by the best practices in the oil and gas
industry.
PEOPLE - PPGPL has been able to attract and keep professionals mainly due to its safety
accomplishments, reliable reputation and efficient operations. The company offer competitive
salary, specialist training, and a work environment which allows the employee to grow and
develop.
3.1.3 Internal Analysis – SPICC Factors
MARKET SITUATION
SUPPLIERS - Natural Gas is supplied to PPGPL by the National Gas Company of Trinidad and
Tobago. NGC will network the offshore producers, eg, British Petroleum of Trinidad and
Tobago, British Gas, and Broken Hill Proprietors to ensure a reliable supply to PPGPL. Petrotrin
and Atlantic LNG will supply low pressure and Natural Gas Liquids for fractionating.
PUBLICS - The organization that has ventured in the business include; shareholders, civil
society, groups, governments and the community. PPGPL has upgraded computer labs in the
schools and refurbish cricket grounds.
INTERMEDIARIES - The Company utilizes both direct and indirect modes of distribution.
PPGPL will liaise with agents for vessels in shipping as well as charterers of vessels when
required.
CUSTOMERS - The customer base is local, Caribbean and Central America. Target markets for
propane and butane are the Caribbean, markets for gasoline is North America. Customers are
B2B.
COMPETITORS - Venezuela is the company’s main competitor for all products. Petrotrin is the
local competitor for Propane and Butane.
3.1.4 External/ Internal Analysis - SWOT
STRENGTHS WEAKNESSES
Flexibility in responding to customers requests e.g.
dock capabilities, varying cargo sizes.
Preferred call of duty by LPG customers.
Quick turnaround of vessels.
Highly skilled and competent management operating
its physical assets in a safe, reliable, flexible and
efficient manner that preserves the environment and
staff.
Excellent financial ratings.
In ability to influence governments decisions
High maintenance costs.
Barriers to entry are high.
Effective communication channels with clients in
different time zones and different cultural backgrounds
Insufficient use of technology
Inability to change cargo nominations at late requests
Supplied cargo bounded by contracts
OPPORTUNITIES THREATS
Faster access to products via the internet, online growth.
The company is looking at expansion in global market
(Americas and Europe).
Opportunities along the value chain – downstream
industries.
Joint venture with customers and suppliers.
Availability and introduction of new technology
Economic slowdown due to global recession and
financial crisis.
Loss of sales as alternative and renewable energy
becomes more predominant.
New marketing trend of exploring the option of
finding Shale Gas.
The introduction of Shale Gas suppliers in strategic
locations.
Uncertainty of Trinidad’s gas reserves.
Change in governments energy policy and tax
structures.
High competition (Venezuela).
This framework analyzes the strengths, weaknesses, opportunities and threats of the
organization.
Created by: Definitive Marketing Solutions (2011). [http://www.ppgpl.com/company.html]
3.1.5 External Analysis – PESTLE Factors The external environment/ macro environment was analyzed through the use of the PESTLE
Analysis and Porter’s Five Forces framework. These framework analyses the factors
surrounding the industry in which PPGPL operates. Data was collected and analyzed through
secondary research and was retrieved via the company’s and government websites.
POLITICAL - Government heavily relies on the energy sector when forecasting budgets – which
has placed the country in a relatively stable position making very attractive to Multinationals. It
also encourages constant growth for members of the energy sector.
ECONOMIC - The need for cleaner fuel by downstream petrochemical users opened doors for
MNC’s as they were invited to submit proposals to the Government of Trinidad and Tobago for
joint venture arrangements to meet the demand. However, Government maintains majority
share within industries of this nature.
SOCIOLOGICAL - Terrorism emanating from Trinidad may deter the US and other investors
from investing in the country adversely impacting on Foreign Direct Investment.
TECHNOLOGICAL - Technological advancements have changed the reserve picture of
hydrocarbons – eg. Improved ways of finding oil & shale gas, cost reductions, new drilling
techniques by advancing pneumatic control systems to distributed and programmable logic
controls.
LEGAL - Government requires statutory reports in accordance to regulatory standards. All local
statutory taxes are paid and PPGPL operates in compliance with guidelines set by local and
international bodies, conducting business in compliance to guidelines set forth by these
institutions.
ENVIRONMENTAL - Changing climate conditions in global warming can have negative effects
in this region in increased hurricanes, skin cancer etc. Trinidad and Tobago is signatory to the
Kyoto Protocol agreement to cap emissions.
3.1.6 External Analysis – Porter Five Forces Model
5 Forces of Competitive Advantage
HIGH
HIGH HIGH
LOW
Source: From M.E. Porter (1985) Competitive Advantage
Potential Entrants(Threat of Mobility)
Industry Competitors
(Segment Rivalry)HIGH
Substitutes(Threat of
Substitutes)
Suppliers(Supplier Power)
Buyers (BuyerPower)
Evaluation of Porter’s 5 forces on the Oil and Gas Industry
INDUSTRY FORCE LIKELYHOOD COMMENT
Threat of new entrant High Multinational’s operates in the country, and has the
revenue, technology, and experience in the country to
build similar gas processing facilities.
Bargaining power of
suppliers
High Few specialist suppliers are required for equipment and
gas supply to the facility. They can dictate the profitability
of the company.
Threat of Substitute
product
Low The products derived from oil and gas is certified for use in
specific process designs. This is regulated by international
quality control.
Bargaining power of
buyers
High High competition exists with new gas finds and flexible
payment schemes.
Rivalry among existing
firms
Low There is only one gas processor in Trinidad and Tobago
and the Caribbean.
Created By: Definitive Marketing Solutions (2011)
3.2 Qualitative Data Findings
Findings from – Interviews
Data was collected from interviews with Senior Staff at PPGPL in order to collate findings in
response to research objectives.
Interviews were conducted with three (3) representatives of PPGPL’s internal staff, whereby
participants were selected based on their level of customer interaction.
CHARACTERISTICS OF PARTICIPANTS Category # participant % of Sample Size Gender
Male 2 67%
Female 1 33%
Years of Experience at PPGPL
1 – 5 years 0 00%
6 – 10 years 2 67%
Over 10 years 1 33%
# Respondent Response Y/N
1 Lab Technician Y
2 Marketing Officer Y
3 Shipping Coordinator Y
3.2.1 Précis of Interview Findings: -
The understated outlines the findings from each question asked to the interviewees. See
Appendix 2, 3 and 4 - for copy of transcripts.
Q&A Summary of Response
Q1 To what extent do you interact with customers?
A1 Marketing has the most direct customer interaction in the organisation followed by Shipping (which is employed under the Marketing Department). All customer complaints are addressed and follow ups executed by Marketing.
Q2 What are some of the customer relationship issues you encounter?
A2 Pricing Issues, Cargo Nomination (changes), quality issues, unscheduled demands
Q3 Do you think that CRM can assist you in meeting the changing needs of customers?
A3 By making the organisation more marketable to meet change in demands
Q4 How do customers address problems they encounter with PPGPL?
A4 All customer problems/issues are being addressed and handled by Marketing
Q5 What do you think is your role in keeping customers satisfied?
A5 Vessel turnaround time crucial for customer satisfaction, specification of cargo,
keeping the customer well updated (time difference can be a challenge)
Q6 What is presently being done to strengthen customer relationships?
A6 Strengthen relationships by encouraging more client visits to allow face to face contact – building better relationships, customer appreciation ceremony, customer interaction programs.
Q7 What more can be done to strengthen customer relationships?
A7 Operating procedures, timely feedback, shared information within the organisation, enhanced customer awareness, employee training, more flexibility
Q8 Do you believe that customers are satisfied with the service they get from PPGPL?
A8 Yes, based on good service, quick vessel turnaround, high quality product
Q9 How do you access customers’ information?
A9 Customer database is confidential, info is shared via email and phone calls
Q10 How do you view your relationship with customers?
A10 General consensus – “good”
Q11 What are the CRM related activities in your Company?
A11 Customer client visits, specially structured yearly surveys, customer database, customer appreciation
Q12 What would be the benefits to your company of adopting a CRM Plan?
A12 Improving service to customers by building on relationships and customer loyalty
Q13 What are some of the external factors that affect customer relationship
management?
A13 Cultural difference (language), time difference, restriction by governed contracts
Q14 Do you think that the present CRM activities are sufficient to ensure good customer
relationship with PPGPL?
A14 Current factors can only maintain, time to have something more structured that can build relationships. Customer Service Training happens as needed, by department. There is no organization-wide training in customer relationship management
Q15 How does senior management view the adoption of a formal CRM Plan?
A15 Implementation will be challenging based on employee mindset
Q16 Does your company employ an IT system that can support a CRM plan?
A16 No comprehensive computerized database, room for upgrade
Customer Relationship is a business strategy built on three important aspects: -
People
Processes
Technology
In order to examine PPGPL’s Customer Relationship Management systems, focus was placed
on these areas to determine what is currently being used and how.
PEOPLE – The organisation’s core value heavily surrounds “Customer Satisfaction” as a result
staff is well grounded in understanding this concept. However, there has been little evidence
that indicates the entire organisation (from top to bottom) shares the same holistic view of their
customers. Findings indicated that “there is no organisation wide training in Customer
Relationship Management and Customer Service Training is presently being carried out only by
departments.”
PROCESSES – Currently Customer Surveys are being used to track and record Customer
activities in areas of satisfaction, dissatisfaction and change in demands. However, Marketing
Department and Management are the only persons within the organisation aware of the results
and implement measures working towards improvements. A database also exists to keep
employees informed of customer activities but is also restricted to the marketing department for
the sake of confidentiality. In support of customer relationship management, PPGPL offers
yearly Customer Appreciation Ceremonies, encourages more customer/client visits as a form of
building relationships on a face to face basis.
TECHNOLOGY – Organisation has at present intranet services used to communicate within the
organisation but based on the close knit staff, tendencies of phone calls has shown more
precedence. Information of PPGPL can be accessed from their external website but is also a bit
limited not allowing much customer interaction. Staffs are well trained in the use of organisation
wide technology, allowing all users to maximize on the usage of equipment and software.
3.3 Quantitative Data Findings
Definitive Marketing Consultants conducted its distribution of questionnaires to PPGPL’s
customers during the period: 26th October to 01st November, 2011.
The questionnaire was built on the determinants of the ServQual Model: tangibles, reliability,
responsiveness, assurance and empathy. See appendix 5 for sample questionnaire.
Overall response rate from a sample size of 20 surveys – 80%
The findings will be presented on the basis of distributed questionnaires capturing customer
views through the use of both open ended and closed ended questions.
# Company Response
Y/N Local/ Regional1 Aerogas Y L2 ALNG - Dept 1 Y L3 ALNG - Dept 2 Y L4 British Gas - Dept 1 N L5 British Gas - Dept 2 N R6 British Petroleum Offshore - Dept 2 Y R7 British Petroleum Offshore Dept 1 Y R8 Carib LPG Y R9 Caribbean Gas Y R
10 Chevron Y R11 Geogas Y R12 Gulf Stream - Dept 1 N R13 Gulf Stream - Dept 2 N R14 National Gas Company Y L15 National Petroleum Y L16 Petrotrin Y L17 Repsol Y L18 RYTTSA Y R19 Shell Y R20 Vitol Y R
TOTAL RESPONDENTS 16 8 locals/ 12 regional
3.3.1 Findings for SECTION 1 and 2 of Questionnaire
SECTION 1
Questions were asked on a scale of 1 to 10: -
1 to 2 – Never
3 to 4 – Seldom
5 to 6 – Sometimes
7 to 8 – Often
9 to 10 – Frequently
All graphs and tables are compiled on the basis of the questionnaire by Definitive Marketing
Consultants.
Question 1 – PPGPL is a reliable supplier
Table 1
Rating Never Seldom Sometimes Often Frequently
1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 1 2 3 10 0% Response 0% 0% 0% 0% 0% 6% 13% 19% 63% 0%
Graph 1
63% respondents rated PPGPL as a frequently reliable supplier, whereas 32% rated their
reliability as often and 6% as sometimes.
Question 2 – PPGPL’s facility is well equipped to meet client’s needs
Table 2
Rating Never Seldom Sometimes Often Frequently
1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 0 0 1 7 8% Response 0% 0% 0% 0% 0% 0% 0% 6% 44% 50%
Graph 2
Findings shows that PPGPL’s clients rated their facility as being frequently equipped to meet clients needs with a rating of 94%, whereas 6% rated them as often.
Question 3 – PPGPL consistently delivers contracted volumes and quantities
Table 3
Rating Never Seldom Sometimes Often Frequently
1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 0 2 2 10 2% Response 0% 0% 0% 0% 0% 0% 13% 13% 63% 13%
Graph 3
Findings show that PPGPL consistently delivers contracted volumes and quantities as 75% indicated frequently and 25% often.
Question 4 – PPGPL’s staff is helpful and efficient in responding to customer complaints
Table 4
Rating Never Seldom Sometimes Often Frequently
1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 1 3 5 7 0% Response 0% 0% 0% 0% 0% 6% 19% 31% 44% 0%
Graph 4
PPGPL’s efficiency to customer complaints was rated as - 44% respondents rated frequently, 50% often and 6% sometimes.
Question 5 – PPGPL’s staff possess the skills and knowledge to perform their duties
Table 5
Rating Never Seldom Sometimes Often Frequently
1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 1 0 7 8 0% Response 0% 0% 0% 0% 0% 6% 0% 44% 50% 0%
Graph 5
Respondents show that 50% frequently, 38% often and 13% sometimes agrees to PPGPL possessing the skills and knowledge to perform their duties.
Question 6 – PPGPL understands customers and is flexible in meeting their needs
Table 6
Rating Never Seldom Sometimes Often Frequently
1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 1 2 13 0 0% Response 0% 0% 0% 0% 0% 6% 13% 81% 0% 0%
Graph 6
94% of respondents believe PPGPL often understands and flexible in meeting their needs whilst 6% rated sometimes.
Question 7 – Where applicable PPGPL’s management and staff are easily accessible.
Table 7
Rating Never Seldom Sometimes Often Frequently
1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 1 6 6 3 0% 0% 0% 0% 0% 0% 6% 38% 38% 19% 0%
Response
Graph 7
19% respondents agree to PPGPL’s staff and management being accessible frequently while 75% rated often and 6% sometimes.
Question 8 – PPGPL maintains timely and effective communication channels.
Table 8
Rating Never Seldom Sometimes Often Frequently
1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 3 5 8 0 0% Response 0% 0% 0% 0% 0% 19% 31% 50% 0% 0%
Graph 8
Respondents rated PPGPL’s communication effectiveness as 81% often and 19% sometimes.
SECTION 2
Questions were asked on a scale of 1 to 5: -
1 – Strongly Disagree
2 – Disagree
3 – Neutral
4 – Agree
5 – Strongly Agree
Question 1 – Do you think PPGPL’s long term contracts should have specific account
representatives and why?
Table 9
Strongly Disagree Disagree Neutral Agree
Strongly Agree
QUESTIONS 1 2 3 4 5Do you think PPGPL's long term contracts should have specific account representatives and why? 16
Graph 9
100% of the population of respondents strongly agreed on the basis that the customer believes
some attention needs to be focused on the communication channels and it would be much
easier on the customer to have focus placed on dealing with a specific representative rather
than just the Marketing Officer. (See Appendix 6)
Question 2 – Do you think having an online database to access vessel loading updates etc will
enhance operations and communications?
Table 10
Strongly Disagree Disagree Neutral Agree
Strongly Agree
QUESTIONS 1 2 3 4 5Do you think having an online database to access vessel loading updates etc will enhance operations & communications? 16
Graph 10
100% of the population of respondents strongly agreed. One regional customer clearly indicated
it would help to alleviate the issues of time differences across the globe.
(See Appendix 7)
Question 3 – Do you think PPGPL keeps all parties updated (timely) of situations affecting
product availability (disruption or supply)?
Table 11Strongly Disagre
eDisagre
eNeutra
lAgre
eStrongly Agree
QUESTIONS 1 2 3 4 5Do you think PPGPL keeps all parties updated (timely) of situations affecting product availability (disruption in supply)? 10 6
Graph 11
37.5% of respondents strongly agreed and 62.5% agreed.
Question 4 – Do you think PPGPL maintains good relationships with their customers and how?
Table 12
Strongly Disagree Disagree Neutral Agree
Strongly Agree
QUESTIONS 1 2 3 4 5Do you think PPGPL maintains good relationships with their customers and how?
12 4
Graph 12
25% of respondents strongly agreed and 75% agreed.
Most of the ratings found were relatively high on the graph – determinant level for negative and
positive ratings would be set at a 75% marker.
Based on the determinants of the Questionnaire, the following are our findings on a pass marker of < 75%being positive and under >75% being negative: -
Table 13
Determinants Less than 75% More than 75%
Tangible 100%
Reliability 6% 94%
Responsiveness 12.5% 87.5%
Assurance 3% 97%
Empathy 12.5% 87.5%
Representing Determinants
Tangible– physical evidence
Reliability – dependability, delivering on promises, accuracy, consistency
Assurance – competence, courtesy, credibility, security
Responsiveness – promptness, helpfulness
Empathy – easy access, good communication, customer understanding, personalized attention
4.0 ANALYSIS OF DATA
4.1 Qualitative Analysis of Questionnaires
Customer Interaction and Support
Based on interviews, the customers’ interactions are limited to the marketing department only;
this department is currently responsible for customer queries and complaints. The marketing
department focuses on customer relationship building via interactive co-mingling at international
sporting events and other avenues where customers can freely interact and enjoy the hospitality
of the host (PPGPL). A mechanism for understanding the customer or recording unique
requirements for each individual customer so as to better understand the customer over a
period time, such as a central database does not exist. Customer satisfaction are measured via
customer surveys, this however coupled with the non existence of a central database makes
understanding the customer a reactive rather than proactive process as customers has to
provide feedback for the company to understand their customer relationships and react
accordingly.
CRM can solve difficulties in customer interaction by providing a framework where a customer
can make queries or complaints and they are provided timely feedback by the respective
departments. Interaction of customers with the CRM system can improve relationships as the
customer needs are addressed. This is supported by Wilson, et al., (2002) who indicated that
CRM can be used to create personalized, one on one experience that will give the individual
customer a sense of being cared for. The CRM framework also allows for data gathering of
individual customers where the information gathered over time can be utilized to effectively
provide a customized service to customers. This is supported by Fayerman, (2002) who
indicated that CRM can be used as a customer focused business strategy to increase customer
satisfaction by providing a customized service to each customer. The data gathered can also be
used to proactively manage customer relations rather than a reactive approach.
Customer Retention
PPGPL currently has no formal customer retention policy hence, no supportive system for such.
Customer retention strategies are informal and are initiated by marketing in a proactive context
to promote existing contract extensions or renewal. Customer retention is critical with the era of
hyper-competition; organizations are forced to be more concerned with customer retention and
loyalty (Dick & Basu, (1994). There is a cost associated with attracting new customers and
actually cost less to retain customers than to compete for new ones, Rosenberg & Czepiel,
(1984).
CRM can retain customer based on facts discussed above under Customer Interaction and
Support, this is supported by Vavra, (1992) who indicated that CRM is a powerful customer
retention tool based on customer bonding or staying in touch with the customer after a sale is
made.
Challenges with Customers
There are several challenges when dealing with customers such as price determination, timings
of cargo nomination, unscheduled demands, cultural differences, time differences and
inflexibility with contractual arrangements. Many of these items are not easily resolved however;
through CRM information can be easily accessible to the customer, Brady (1995). This
information can allow the customer to make strategic decisions which can result in reduced
conflicts and challenges with customers.
Cultural differences can be managed using CRM as CRM allows the accumulation of customer
data over time which can be used to effectively manage customers of diverse cultures. This is
supported by Adebanjo, (2003) indicated that CRM allowed mountains of customer data to be
analysed to refine customer-facing practices to increase loyalty. Significant time differences can
also be addressed by CRM with the integration of departments; any department (especially the
24hour operations department) can respond to customer needs or even provide some sort of
feedback to indicate that it will be addressed within a few hours. Kim et al., (2002) suggested
that integration of business processes and departments and providing appropriate responses to
customer request is vital part of the CRM system.
Departmental Integration
The critical departments that the customer integrated with namely marketing, operations and
finance are not interconnected from a customer management perspective. This places
significant responsibility on the marketing department as they are the single point contact for all
customers. Turn round times for business transactions are also increased as all customer
requirements are channelled to the respective departments via marketing.
A CRM system has an integrated approach encompassing critical departments for customer
satisfaction. This would allow better responses to customer requirement and it can also improve
turnaround times for business transactions. Kim et al., (2003) indicated CRM can improve
information channels between departments thereby maximizing the effectiveness and efficiency
of organizational operations.
Integration of Core Values within Departments
One of PPGPL’s core values is customer satisfaction, the communication of this value and its
importance is not effectively made within the organization. There is no formal framework such
as training structures to facilitate this type of edification to employees. There is also no
integrated system (Information Technology) that supports the core values of the company.
As mentioned previously in departmental integration, Kim et al., (2003) suggested that CRM can
improve information channels between departments. PPGPL can use this aspect to their
advantage and integrate a training system within the CRM system in the design stages. This will
allow training of employees to be monitored and updated using the CRM facilities. The CRM
can be used not only to track customers but also employees as well.
Policy and Procedures
No policy exist which is in alignment to support the core values of the company to guide
employees on how they should interact with customers, the standard of service to provide or
even a strategy document to guide priorities on customers based on profits generated from
them.
Qualitative data from the questionnaires specifically questions 5 and 10 were rated lower than
average. Several customers indicated that there are inconsistencies with respect to PPGPL’s
employees having the necessary skills and knowledge required to perform their duties
effectively. Question 10 indicated that communications in response to customer concerns/quires
were not consistently timely.
CRM can provide the information to develop a strategy to maintain high profit customers.
According to Wilson et al (2002) the influential study by Reichheld and Sasser (1990) indicated
a large impact on profitability for small increases in customer retention rates. Chye and Gerry,
(2002) indicated that the CRM system will enable the organization to calculate the profitability of
individual accounts. This information can then be used to identify and effectively manage the
customers who generate significant profits to the organization. Policies and procedures should
be implemented by PPGPL to support the capabilities of the CRM system to maximize
profitability.
PPGPL as a company should implement competency based training programs to allow
competencies to be measured against a standard thereby improving overall performance.
Curtain & Hayton, (1995) indicated that competency based training is accepted by many
industries.
Long Term Growth Strategy
PPGPL’s core value is to maximize long term growth. Supporting systems to achieve this core
value is inadequate as indicated by responses from the interviews. The CRM system can
support the long term growth strategy as it can be used to attain customer retention for the long
term. This view is supported by Peppers & Rogers, (1993) whose study indicated that the
information technology capability of CRM can focus on individual or one-to-one relationships
with customers that integrate database knowledge with a long term customer retention and
growth strategy.
4.2 Quantitative Analysis of Questionnaire
Section 1
The questionnaire was built on the ServQual Model supported by the areas identified during
client interview; questions were placed into the relevant determinants identifying the areas of
satisfaction.
Section one being used to represent the level of Satisfaction based on an 80% response rate of
a 20 member population.
Table 14
Determinants
Mean Satisfaction
> 75%
Mean Satisfaction
< 75% Tangible 0.00 4.00Assurance 0.08 3.90Reliability 0.17 3.83Empathy 0.34 3.66Responsiveness 0.34 3.66
On the basis of the above findings, the mean for the satisfaction factor begins at 4.00; therefore
the table identifies the area of “Tangible” and “Assurance” as the highest ranked satisfactory
factors. Emphasis would need to be placed on – Reliability, Empathy and Responsiveness with
the two latter showing the greater differing factor.
Section 2
Section two of the questionnaire was used to focus on areas of importance to the customer for improvement in relationships and communication.
Graph 13
From the above graph, it can be determined that “all” participants strongly agree that PPGPL
should have specific account representatives for long term contracts. It was also strongly
agreed by “all” that an online database should be created to enhance operations and
communications.
(4500 words)
5.0 RESEARCH CONCLUSIONS
PPGPL holds a strong position in the energy sector being the only Gas Processing Company of
Trinidad and Tobago. Known for its quick turnaround of vessels, PPGPL has been able to
attract customers both regionally and internationally. With the opportunity to form joint ventures,
mergers and acquisitions, PPGPL can further penetrate the international market with its direct
presence. However, the recent discovery of shale gas has raised awareness within the industry
as the product offering can give customers a “choice” based on cost and availability.
An analysis of the qualitative and quantitative data suggests that the customer relationship
management within the organization is relatively effective as the findings indicated relatively
good ratings. However, the data suggest that the members within the organizations are not in
alignment with the company’s core value of customer satisfaction. PPGPL as a company does
not have the necessary framework and infrastructure in place to effectively support customer
relationship management. Customer relationship management in PPGPL is not a companywide
system; it is currently the sole responsibility of the marketing department.
The effectiveness of PPGPL’s customer management systems is perceived by customers as
generally good based on the customer surveys. There was however, a small number of
customers who were dissatisfied with their relations with PPGPL. The effectiveness can be
considered to be relatively good with several areas for improvement. Based on the ServQual
model, areas for improvement are responsiveness and empathy (personalized attention and
effective communication).
An overall analysis of the individual objectives indicated that there was a need to significantly
improve the infrastructure and framework to effectively manage customer relationship.
Integration across critical departments is required and training in the effective use and
management of customer relationship systems. The following recommendations were formed
based on the concerned areas identified.
6.0 RECOMMENDATIONS
The understated recommendations are based on the above analysis and findings. The
recommendations will be presented outlining a systematic approach to increase overall
organisational performance through the use of a structured Customer Relationship Management
Plan. The plan shall be designed for a one year period; however, the full effects of the results
cannot be measured within the short term. The plan would follow continuity over a three year
period to maximize benefits.
The traditional concept of the marketing mix establishes a system where a buyer purchases
from a seller via straight forward transaction. In today’s global environment of fierce
competitiveness, relationship building with customers is critical for companies to survive. A
paradigm shift is required to integrate relationship management with the traditional marketing
mix. Kotler, (1991) concludes that companies must move from a short term transactional
oriented goal to a long term relationship building goal. A hybrid marketing strategy can be
developed where the marketing mix can be used to initially attract customers and relationship
management utilized to establish customer loyalty for the long term. In PPGPL’s case the CRM
system is intended to build long term customer loyalty.
OBJECTIVES:
1. Maintain 80% existing high valued customers within the first year with an increase to
90% over the next three (3) years.
2. 75% of all contracts to be long term within the first year with existing and new customers
increasing to 90% over the next three (3) years.
3. Improve information link between PPGPL and its customers to increase communications
in one (1) year with continual improvements over the next three (3) years.
4. Interlink all departments via CRM within six (6) months to respond to 95% of customer
queries and complaints.
ASSUMPTIONS:
1. Competitors advancing operational efficiency to improve quality and customization of
products, increased reliability and offering flexible payment plans to the customer.
2. Rapid development of LNG plants globally, increases the requirement for natural gas
processing facilities. These facilities can become competitors in the future based on the
quality of products, location and price offered to PPGPL’s existing and potential
customers.
TARGET MARKET:
PPGPL targets both existing and potential long and short term contract customers.
POSITIONING:PPGPL seeks to position itself to be a customer focused organization, supplying superior
customized products, with the intent of becoming a preferred supplier.
MARKETING STRATEGY:Ansoff Matrix:
Source: Adapted from Ansoff (1957) Strategies for Diversification, Harvard Business Review.
Strategy: Market Penetration
PRODUCTS
CURRENT NEW
PENETRATION:
PPGPL’S DESIRED MARKET STRATEGY
PRODUCT REPLACEMENT
DIVERSIFICATIONMARKET DEVELOPMENT
CURR
ENTL
Y O
PERA
TIN
GN
EW E
NTR
Y
MAR
KETS
The market penetration strategy will be used to maintain high profit customers to achieve the
marketing objectives.
MARKETING MIX
Product/Service
Offer a product that can be standardized or customized to customers’ needs. Promote a first
class service based on the strength of the Customer Relationship Management Plan that is
superior to the competitors and tailored to individual customers.
Justification: The integrated approach between product and superior service is required in
building long term relationships. Long term contractual relationships allows greater visibility of
projected revenue, this data is critical in the formulation of both strategic and tactical business
decisions for future growth.
Pricing
Pricing strategies are twofold in nature. Adhoc customers are subjected to current global gas
commodity prices and long term customer prices are based on contractual agreement.
Justification: Prices in the natural gas industry are based on supply and demand factors in the
global environment. It is critical that PPGPL anticipates global future demand and the respective
prices as well as the local gas supply when developing long term contractual agreements.
Place
The place of distribution shall be the existing loading docks at Point Lisas. The CRM system
shall be integrated such that the customer at the point of loading can make formal enquires or
complaints and the various departments can respond and act in a timely manner.
Justification: The place is critical as this is an interaction point between the customer and dock
loading representative.
Promotion
Market penetration in existing markets shall be promoted using several methods. PPGPL can
inform the existing customer base via email of their ability to customize product offerings to
meet customer specific requirements as well as launch the CRM initiative, its capabilities and
positive real time benefits to the customer.
PPGPL can also advertise in the popular Oil and Gas Journal, promoting its products and the
ability to flexibly meet customer needs. It can also advertise its CRM system to illustrate how it
can improve the efficiency of the customers’ operations by having real time information services.
PPGPL can ensure participation in local trade shows highlighting customer focus initiatives
tailored for the customers’ needs.
Justification: The promotional aspects are vital to communication with existing and potential
customers.
People
A Customer Relationship Management Team should be developed comprising of Information
Technology, Marketing and a third party consultancy firm who shall design and implement the
CRM system. The team shall ensure that all employees undergo training in the CRM system to
guarantee consistency in the quality of service and promote the core value of customer
satisfaction. The training should also include responding to the customer requirements and
queries in the shortest possible time not exceeding 24 hours.
Justification: Without people the CRM system cannot be implemented, it is imperative that
they are properly educated in this area as their actions can make the CRM initiative a success
or failure.
Physical Evidence
There will be no change in physical evidence.
Process
The integration of departments will be governed by Standard Operating Procedures which will
inform “all” personnel of their roles and responsibilities. Processes will be simplified with real
time access to client/customer information via the online Customer Relationship Management
System.
Justification: Processes are critical as this set the guiding principles of how the system shall be
managed. Data security protocols will be implemented to ensure client/customer confidentiality.
MARKETING BUDGET (All values quoted in US Dollars)
MARKETING EXPENCE BUDGET FINANCIAL YEAR 2012
COMPONENT ALLOCATION
BUDGET
PUBLIC RELATIONS $30,000
- Participation in International Industry Conference ( 3 industrial conferences carded for 2012)
$30,000
ADVERTISEMENT $40,000
- Local Industry Conference $10,000
- Oil and Gas Journal (monthly article) $30,000
- E-Mail $0.00
NETWORKING TOTAL $40,000
- Client Visits $20,000
- Client Contract negotiations $20,000
CONTINGENCY BUDGET $30,000 $30,000
TOTAL MARKETING EXPENSE $140,000
SALES FORECAST (All values quoted in US Dollars)
YEAR 2012 2013 2014
QUARTERQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
TOTAL SALES (EBIT)$260,833,92
0$213,409,57
0$165,985,22
1$308,258,26
9$262,750,48
8$214,977,67
2$167,204,85
6$310,523,30
4$273,456,78
9$225,654,95
1$175,632,58
7$325,369,25
8
COST OF PRODUCTION$75,215,638 $75,215,638 $60,321,456 $75,215,638 $80,568,975 $80,568,975 $75,000,000 $80,568,975 $84,365,987 $84,365,987 $50,000,000 $84,365,987
OVERHEADS$10,256,422 $10,256,422 $10,256,422 $10,256,422 $12,563,487 $12,563,487 $12,563,487 $12,563,487 $13,015,896 $13,015,896 $13,015,896 $13,015,896
INSURANCE$23,658,952 $23,658,952 $23,658,952 $23,658,952 $25,365,487 $25,365,487 $25,365,487 $25,365,487 $28,326,589 $28,326,589 $28,326,589 $28,326,589
EQUITY INVESTMENTS$102,702,90
8 $52,278,558 $8,748,391 $134,127,257 $89,252,539 $34,479,723 $4,275,882 $112,400,35
5 $89,748,317 $34,946,479 $14,290,102 $124,660,786
TOTAL QUARTERLY EXPENCES
$211,833,920
$161,409,570
$102,985,221
$243,258,269
$207,750,488
$152,977,672
$117,204,856
$230,898,304
$215,456,789
$160,654,951
$105,632,587
$250,369,258
QUARTERLY NET PROFIT $49,000,000 $52,000,000 $63,000,000 $65,000,000 $55,000,000 $62,000,000 $50,000,000 $79,625,000 $58,000,000 $65,000,000 $70,000,000 $75,000,000
ANNUAL NET PROFIT $229,000,000 $246,625,000 $268,000,000
The above sales forecast, based on the module guide should capture projected data for one year. In the case of PPGPL where the contemporary marketing mix has to be integrated with a CRM system that is intended to
foster long term relationships. It is impractical to project revenues for a one year period. Based on the time spread of existing contractual agreements and the potential new contract awards that can be attained with the
implementation of the CRM system a period of minimum three years is required for the benefits to materialize.
The graph below illustrates the Sales Forecast tabulated data
The above graphical projected representation of, total revenues, expenses and net profit
indicate a long term growth in revenue with the implementation of the CRM system.
TIME SCHEDULE
MARKETING PROMOTION SCHEDULE
2012
PUBLIC RELATIONS Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
International Industry Conference ( 3 industrial conferences carded for 2012)
IC
IC
IC
ADVERTISEMENT
Local Industry Conference
LC
Oil and Gas Journal (monthly article) JA JA JA JA JF JA JA JF JA JA JF JA
E-MailIE UE UE UE UE UE U
E UE UE UE UE UE
NETWORKING
Client Visits CV
CV
CV
Client Contract negotiations
CN
CN
CN
LEDGEND
ICIndustry conference where PPGPL can form relations with potential and existing customers.
LCLocal Conference where PPGPL promotes it CRM system to the local energy and manufacturing industries.
JA Published article in the popular industry oil and gas journal promoting PPGPL CRM system and its benefits to the customers
JFPublished article highlighting the success and interaction of the customers with the PPGPL CRM system.
IEInitial E-mail to inform existing customers of the introduction of the CRM system and how this system will positively impact the customer.
UEUpdate E-mails to inform customers of how they can interact, communication of individual pass codes, and re-enforced the stringent security the CRM system offers to maintain customer confidentiality and information.
CV Client Visits shall be managed by the marketing representative to ensure clients have a pleasant stay and memorable experience which will enhance the relationships
CNContract negotiations are sensitive and the marketing representative must be aware of cultural diversities and how to best manage to foster relationship building at the time of negotiations.
13.0 MONITORING AND CONTROL
Continuous monitoring of the marketing plan is essential, comparing actual versus
budgeted/projected values, completion of preparatory work for upcoming events and
ensuring activities are completed as scheduled are critical for the success of CRM. This data
shall be used to formulate informed decisions to guide the marketing plan in the direction it
was originally intended. Several methods shall be used to monitor are:
Monthly meetings to discuss present status of the CRM system.
Monitor advertising schedule to ensure activities are conducted as per assigned
schedule.
Monitoring the progress of training of relevant staff in the CRM system.
Monitor the interaction of customers with the CRM system; educate customers as
necessary via e-mail.
Monitoring of the data exchange between customer and PPGPL’s employees,
analyze situation and communicate recommendations to improve as necessary.
Monitor customer satisfaction via quarterly surveys which includes the aspect of
evaluating the CRM system from a customers’ perspective.
Monitor the data attained while interacting with customers and use the data to better
manage future engagements with the customer. Ensure information is tailored to the
individual customer.
Monitor renewal of long term contracts for existing customers as well as new
customers. This is the intended purpose of the CRM system and must be monitored
closely.
Monitor profits on a quarterly basis
Comparison of actual versus expected revenue and marketing cost.
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