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Marketing Research Report
On

Submitted by

Muhammad Shahnawaz

This report contains information that is not to be shared, copied, disclosed or otherwise compromised without the consent of the group.

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ACKNOWLEDGEMENT

We are very grateful to our teacher Dr. Akif Hassan for teaching us curriculum of Marketing Research. His versatile knowledge in marketing field and unique teaching style has developed our knowledge and cleared many marketing concepts. We are all the most grateful to him for assigning this project, which has further helped us in evaluating many interrelated dimensions of research in marketing field. Finally we bestow our thanks to PSO and all the people who has directly or indirectly supported us with their assistance and guidance to compose this report and accomplish broader vision to visualize things in marketing Research concepts.

Group members

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TABLE OF CONTENTS
Title Preface Page 3

INTRODUCTION
Background of the Pakistan State Oil Background of the problem Statement of the problem Research problem Research hypothesis 4 13 19 20 21

RESEARCH METHODOLOGY
Research design Sources of information Methods of data collection Research instrument Sampling technique Sample size Profile of the respondents 23 24 25 26 27 28 29

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
Findings of the market research 31

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
Summary Recommendations BLANK QUESTIONNAIRE 50 51

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PREFACE

This report is prepared for the course of “Marketing Research” on Image study of PSO. In this report we have discussed different aspects of the marketing research and marketing. Other than that we have different findings and figures regarding the opinion of customers. All data and findings are based on the marketing research. Report also contains the data regarding our research sample and the profile of the respondents. We had covered almost every aspect of the image study and consumer perception in this research report.

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Introduction
History of the company
Pakistan State Oil has come to this stage after 25 years of developments and continuous improvement. The company’s development started from 1974 when 01-01-1974 Federal Government takes over management of PNO (Pakistan National Oil) and DPL. (Dawood Petroleum Limited), renamed into POCL (Premier Oil Company Limited) under marketing of Petroleum Products (Federal Control) Act, 1974. 03-06-1974 Government incorporates "Petroleum Storage Development Corporation" PSDC. 23-08-1976 Name of PSDC changed to State Oil Company Limited (SOCL). 15-09-1976 Government purchases ESSO Undertakings, vests the same in

SOCL. 30-12-1976 Government merges PNO and POCL into SOCL. (State Oil Company Limited), and named it as, Pakistan State Oil Company Limited. (PSO).

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Study As the largest oil marketing company of Pakistan, PSO is engaged in the storage, import, distribution and marketing of petroleum products, petrochemicals, Aviation & Bunker fuels, LPG and CNG dominates the country’s fuel and energy need. Since its inception in 1976 the company has been meeting

more than 70% of the country’s fuel needs. PSO’s 3805 outlets all across the country markets more than 12 million tons of fuel products annually. This network is supported by PSO’s 28 storage facilities with a capacity of more than 800,000 tons. PSO took a major step in improving its distribution facilities by acquiring 12% equity in the 800km long Karachi-Mehmoodkot White Oil Pipeline.

As part of PSO’s policy of providing better customer service it has embarked upon its New Vision retail development program. Equipped with the most modern facilities like electronic dispensing units, auto car wash, convenience stores, internet facilities and business centers these state of the art designed stations provide greater customer confidence and a friendlier environment.

As a manifestation of PSO’s greater customer focus a PSO 24hr PSO Customer Service has been launched where customer’s can lodge their queries and suggestions about various PSO products and services.

Along side its retail network PSO is playing an equally important role in the industrial sector. From the locomotives of Pakistan Railways to the giant turbines of power projects, all are fuelled by PSO. Being fully alive to its responsibilities towards the agriculture sector PSO’s 700 strong agency network helps keep the farm machinery running. Further, its kerosene sales are a major source of energy for the rural and lacking gas facilities.

PSO remains equally strong in Aviation and Bunker Sales. PSO has been
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Study constantly upgrading its facilities to serve a wide range of commercial aircrafts. Through a chain of eight Aviation Service Stations scattered all across the country PSO fuels the aircrafts of many local and international airlines. Acquisition of new Lahore Terminal Complex at the Lahore International Airport has enabled PSO to serve the busiest corridor of East/West bound flights benefiting the airlines in shape of time saving and lesser fuel burn off. While it’s bunkering facilities at all the major ports of country fill up the ocean liners of many nationalities facilitating the nation’s international trade.

In its endeavor to provide quality lubricants, PSO has formed an alliance with world-renowned company Castrol whose products are manufactured at PSO’s own ISO 9000 certified facilities ensuring the highest quality standards for both retail and industrial sales.

More cordial relationship with its dealers is one of the important objectives of PSO’s New Vision programme. To give them a sense of participation PSO has instituted “Top Dealer Awards” and “Million Liter Awards” whereby efforts of the high performing dealers are recognized.

Emergence of Health Safety & Environment (HSE) as the corner stone of PSO’s corporate governance testifies to its commitment to environmental protection. Complete HSE certification of all its facilities and installations is one of its major goals for the coming months which are being vigorously pursued.

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Current

position

Financial & Operational Highlights of the year: 1999-2000

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

Profit before tax of Rs.3.6 billion ($ 56 million); up 7% over prior year

Highest ever cash dividend of 100% Rs.1.4 billion

Successfully took over the fuel oil imports from the Government of Pakistan

Signed long term product off-take agreement with Pak Arab Refining Company (PARCO).

Ranked as No.1 performing company in Pakistan by Karachi Stock Exchange received award for the 16th consecutive year.

Board of Management reconstituted by Government of Pakistan; principles of corporate governance established.

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HEALTH, SAFETY & ENVIRONMENT POLICY
Pakistan State Oil Company Limited will ensure that The health of its employees, its contractors, its customers and the public is protected. All its activities are carried out safely. Environmental performance meets legislative requirements. To implement HSE Policy, Pakistan State Oil Company Limited will Comply with relevant laws and regulations. Ensure that required Health, Safety and Environment Standards and Procedures are developed and established Ensure that all its activities are carried out in accordance with Company's Health, Safety and Environment Standards and Procedures. Set demanding targets and measure progress to ensure continuous improvement in Health, Safety and Environment performance. Require every employee to exercise personal responsibility in preventing harm to themselves, to others and to the environment. Provide appropriate Health, Safety and Environment training / information to all employees, contractors and others who work with the company Ensure provision of safe working environment.

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PSO's Network
PSO's network of outlets and other facilities comprehensively covers Pakistan - from the bustling metropolis of Karachi and Lahore to the mountain valleys of Chitral and Gilgit. Our coverage includes privately and company owned outlets guaranteeing our market share and profitability. Product movement will play a vital role in strengthening Pakistan's economic development. With the burgeoning demands of the Power generation sector, enhancement of existing facilities and development of new infrastructure especially pipelines, which are the safest, efficient & most environment friendly mode of transportation, takes top priority.

Pakistan Railway also has to be geared for moving more products upcountry. This is very important to reduce the pressure on road movement.

Listed below is a summary of our product movement network: Numbers Tank Lorries Railway Tank wagons Pipelines
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13400 1120 13

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Management profile

The federal Government has constituted the Board Of Management (Oil) to control, manage and direct affairs of the Company; whereas the direct management is vested in the Managing Director who exercises and performs all the powers and function of the Board Of Directors of the Company. Human Resources - Our Greatest Asset

Total Strength as of 01/07/1998 2795 Bargainable employees 1830 Management Staff 965

The Company has maintained the tempo of achievements through whole hearted commitment & hard work of its Human Resources and full support of its dealers / agents and customers. PSO is one of the top 25 companies as the recipient of TOP 25 Companies Award every year, for the last 13 consecutive years. PSO is the only company from Pakistan, which is being listed as one of the Top- 1000 companies in Asia (as per Asia Week Magazine).

All these attributes endorse one thing; grow with grace and sound earnings, along with all those associated with PSO, i.e. its customers, business partners,
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Study manpower and share holders. This has been the greatest asset of the Company's Management, able guidance from its Board of Management (Oil), Ministry of Petroleum & Natural Resources, and from all cadres putting in combined efforts with commitment with excellence.

PSO & Continuous Growth PSO is the largest of the three marketing companies in Pakistan; it has consistently maintained an edge over its competitors Shell and Caltex. With an overall market participation of over 72% in 1997-98 it sold 6.244 million tonnes of petroleum products during the half year ended 31st December 1999 against 5.633 million tonnes sold during the corresponding period last year, showing an increase of 10.8%. Continuous Growth PSO continues to expand its physical, technical and marketing resources to meet the requirements of the country. To keep pace with growth PSO has maintained International Collaborations to import latest technology, they are: I. Castrol (UK) Blending and marketing of lubricants in Pakistan.

II. Air Total (France) Technical & commercial agreements in Aviation Services & technology.
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III. Exxon Chemicals (Singapore) Petro chemicals business & technology.

Privatization of PSO

Privatization of PSO is underway whereby JP Morgan’s financial advisory consortium is assisting the Government of Pakistan in the privatization process. They have undertaken the initial due diligence including financial and regulatory issues and subsequent to which the interest of the potential investors in the transaction will be solicited

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Background of the problem

The company maintained its strong focus on New Vision Retail Development Programme and expanded the network to 343. During July –Dec 2001, 10 CNG facilities were commissioned brining the total to 36 while Lube shop network expanded to 74. The company embarked on an ambitious program to promote the Internet specifically in inaccessible areas all over Pakistan. Total 500 retail outlets are being provided with Internet facility out of which 150 are already covered. With strong media support, new lubricant grades like Castrol GTX-XL, Castrol CR 40 Plus and PSO CNG oil were introduced. Various successful sales promotion campaigns have been launched to further improve the brand image of the company. In order to have assured long-term cost-effective supplies the company signed a 10-year sale and purchase agreement with NRL while negotiations with KPC for HSD premium for the first half of FY-2001 concluded successfully. In an effort to efficiently distribute Mogas and HSD to retail outlets, the company acquired 16 new tankers equipped with satellite tracking system for Karachi and gradually major cities and towns will be fed through company tank lorries. The company has been successful in achieving ISO 9000-2000 distinction for its six terminals while operations at other installations and depots are being standardized to qualify for ISO certification. Given the resolution of outstanding stuck up claims with upward revision in OMCs margins and complete deregulation of POL products i.e. free from price control combined with the strategic initiatives undertaken by the company, your company is well positioned to face the challenges of impending deregulation and maintain its leadership in the downstream sector.
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Study Customer intimacy provides to senior management a new vision of the future, a strategy which is realistic and implementable. Marketing and sales personnel will have the opportunity to build profoundly meaningful relationships with selected key customers. Customer satisfaction and intimacy offers a great challenge to human resource professionals of the PSO, who have the challenge to integrate supplies. This is required for customer intimacy to work and a most sensitive challenge. To deliver results consistently, requires a great commitment. It requires all the imagination, initiative, empathy and dedication a company can create. Along side its retail network PSO is playing an equally important role in the industrial sector. From the locomotives of Pakistan Railways to the giant turbines of power projects, all are fuelled by PSO. Being fully alive to its responsibilities towards the agriculture sector PSO’s 700 strong agency network helps keep the farm machinery running. Further, its kerosene sales are a major source of energy for the rural and lacking gas facilities. Customer-intimate managers, understand that each customer's needs are unique and an opportunity is available to deliver a unique solution as well. In business a promise is a commitment, to accomplish something. In a customer-intimate company, a promise becomes something very special. Results promised must be results you will deliver, at all costs. This is the intricacy of customer intimacy. Customer intimacy also requires a different approach, to cultivating and managing business-to-business relationships. PSO continues to expand its physical, technical and marketing resources to meet the requirements of the country. To keep pace with Collaborations to import growth PSO has maintained International latest technology, they are:

Castrol (UK)

Blending and marketing of lubricants in Pakistan
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The new logo of the company was designed with refreshing colors After all these developments and improvements has been done in the operations Management style:

The outlook of pumping station has been changed. The services has been improved and extra services (automatic car service, email, telephone) offered by the PSO pumps. Question arise in the minds of the PSO management that “Does the PSO has improved its image”? In order to find out this research has been
conducted in all the areas of Karachi.

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Background Problem is Customer intimacy

Being a local organization the people’s perception about the PSO is not very good. The majority of consumers of Pakistan thought that the multinational organizations are good and they have fantastic services to offer in the industry. It’s not the matter of satisfaction they are getting from the organizations it’s more on the field of friendship or intimacy of the organization with their customers. Customer satisfaction means you are doing OK, but alone it is not adequate in a fiercely competitive business environment, where your competitors are waiting to grab your customers for good.

Especially in the petroleum industry where there is no product differentiation. What it requires is taking responsibility for customers' performance, by staunch solidarity and exchange of useful information. Critics of customer intimacy are of the view, that customer-intimate companies are merely baby-sitting their customers and are blurring real and useful distinctions between suppliers and buyers. Neither of these criticisms are true. Customer intimate companies discover how to provide complete solutions to customer needs rather than simply attempting to satisfy customers.

By providing complete solutions, customers and suppliers, become indispensable partners, and suppliers take a major stake in their customers' success. When two organizations move from a simple buyer-supplier relationship to the overall complexities of a customerintimate relationship, the unique responsibilities of each partner become quite clear and understood. Each partner develops a new business mindset, resulting in new ways of conducting business.

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Customer intimacy is very essential for an organization like PSO, who is looking to secure a competitive advantage. Customer intimacy is the only way to compete against these larger resourceful multinational organizations like Shell, Caltex. For the multinational, large and resourceful organizations, customer intimacy offers a surefire way to long-term success, because of their origin of existence as an advantage. Traditionally people or management thought that customer satisfaction or customer intimacy is just for the marketing people. But now we said customer intimacy is for everyone in an organization, irrespective of functional and operational differences.

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Statement of the problem

The changes are taking place in the market continuously at the global and national level. In order to deal and compete with these changes you need to upto-date yourself in every aspect of the business, like customer preferences, perception, competitor’s move, and the technological changes The problem situation arises at PSO after the changes they had made in their system. PSO has done overhauling of its system and now they want to know the response of the consumers in respect of the changes they have made. They are interested in knowing that what customers think of PSO in terms of services and products both. For this purpose they are conducting a marketing research. Future strategies of the PSO will be based on the results of the research.

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Research problem

“Does the PSO has improved its image after the establishments of new vision and revolution in its outlets”

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Research Hypothesis

We assumed that the pso has gained the reputation and improved its image. PSO has been gaining mind share of the consumer since these developments and changes are taking place in the company. The consumer’s response to these changes is positive.

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Research Methodologies

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Research Design

Research design is about how to get what we have just decided we need to get. Research design has several levels. In a broad sense it is about the philosophy of how to approach the problems of finding out about the things. There are the marketing problems and the research problems to consider. But the problem of how to do the research well is also critical if we are to address those marketing and research problems. The research design we are using is descriptive research. The reason for choosing this method that we need to describe the matter at hand with more precision in more qualitative and quantitative terms. We have the ideas now the understanding of different viewpoints, trends. It is time for some numbers to verify that what we think (research hypothesis) we now know is actually true. One common focus of descriptive research is to describe characteristics of certain groups. The groups may be people, consumers. The marketing manager could ask for a profile of the fuel consumption patterns of the Karachi drivers and owners of cars. Another common use of descriptive research is to estimate the proportion of customers in the population those who are using different types of fuel. A common use of the descriptive data is to make predictions about the future.

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Sources of information

Source of information is the Personal source We are not using secondary source of information. We are getting data from the personal sources. We are delivering questionnaires to the individuals personally and get them filed. Our main objective of the study is to see the perception of the people about the PSO. For such type of the problem it is necessary to have an independent opinion from the respondents. It should be free of any influence and biasness of the researcher. That’s why we have chosen this source of information.

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Data collection methods

Data collection method is Survey method.

Survey method is self-administered by the respondents. In surveys respondents complete their questionnaires without any influence of the researcher at their own convenience. In order to have a better and fair result we have choose this method because the respondents have more independence in this method than other methods. The problem of biasness is less than personal interviews and telephone surveys. The type of the research problem we have is related to the consumer behavior. It is appropriate to give independence to the consumers for getting information. In this method first we have delivered the questionnaires to the respondents after giving them certain time (at their own convenience), we got filled questionnaires back. That‘s how we got the information by this method.

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Research Instrument

The research instrument is Questionnaire. The questionnaire is a semi flexible and structured approach is basic to all research instruments which involve questioning. This instrument has predefined variable in it about the specific response. Answers that result from any question may reflect what the respondent really thinks about an issue. The task of questionnaire construction is to make sure that answers do reflect respondents feeling as much as possible. But answers also depend upon on how questions are asked and an important part of how they are asked is tied up with the scale used in the question. Quantitative data are not all alike in terms of their quality or the amount of information that they carry. Some numbers carry great deal of information. Different scales are used in the questionnaire include:      Multiple choice questions Likert scale Horizontal numerical scales Semantic differential scales Verbal frequency

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Sampling Technique

Convenience sampling technique is used in this research. It’s a very major technique in non probability sampling. Not every one in the population has an equal chance of being in the sample. In this technique the respondents distinguished by the fact that people get into the sample depending on where they happen to be at the time that the sample is taken.
Convenience samples were not drawn by random methods, but they are very frequently used. It is quite reliable and quite valid. There are many good reasons for gathering them not the least of which is that they can be quite convenient and easy to gather.

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Sample size

Sample size is 100 respondents. Determine sample size is very important issue. In a qualitative sense there are a number of guidelines for this which depends on survey objectives and methods. Generally any time marketing manager needs very precise estimates of values, large samples are needed. But in many cases the rough estimate is sufficient. If the decisions are smaller in nature the benefits of higher precision may not the worth of getting high precision.

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Profile of the respondents

The basic criteria for respondents that they are the driver of car or motorcycle

Age: Gender Income: City

18 years and above both doesn’t matter Karachi

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Analysis & Interpretation of Results

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Type of the vehicle mostly driven

Motor Bike 800cc Car 1000cc Car 1300cc Car 1500cc Car 1600cc Car Higher than 1600cc Car

Type of Vehicle mostly driven Count 12 19 27 22 8 6 6

Out of our 100 respondents the: • • • • • • • 27% of the respondents have 1000cc cars 22% of the respondents have 1300cc cars 19% of the respondents have 800cc cars 12% of the respondents are drivers of motorcycle or bikes 8% of the respondents those who have 1500cc cars 6% of the respondents have 1600cc cars 6% of the respondents have above than 1600cc cars
Type of Vehicle mostly driven Count Motor Bike 800cc Car 1000cc Car 1300cc Car 1500cc Car 1600cc Car Higher than 1600cc Car

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Type of fuel

Petrol Diesel CNG

Type of Fuel Mosly Used Count 73 10 17

The majority of our respondents are users of the petrol. • • • 73% of the respondents are users of Petrol 17% of the respondents are users of the CNG 10% of the respondents are users of Diesel.

Type of Fuel Mosly Used Count 80 60 40 20 0 Petrol Diesel CNG Type of Fuel Mosly Used Count

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Fuelling Brand

Shell PSO Caltex

consumers Usually go for Fuelling Count 46 30 24

The majority of our respondents are customers of the Shell: • • • Out of our 100 respondents 46% get fuel from Shell. 30% get fuel from PSO. The Caltex customers are 24% among are respondents.

The shell has more market share in Karachi especially in porch areas like Clifton, Defense and Tariq road

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c ons um ers U s ually go for F uelling C ount

S hell PSO C altex

The pso has more market share in other areas of the Karachi and country.

sLocation of frequently visited petrol pump
Location of petro pump usually visited Count No Response Phase 4 Defense Express Way Gulshan -e- Iqbal (Drive In) Gulshan -e- Iqbal B-16 Behria Mughal Darbar Tariq Road Shara Faisal Rashid Minhas Road Gulistan e Juhar F B Area clifton 12 13 3 6 1 5 1 2 21 4 1 9 22

Mostly the consumers are visiting the petrol pumps near their residence or where ever they thought it’s convenient. Most of the residents of areas like Defense and Clifton the consumer get fuel from the petrol pump which is nearest to their home.
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No Response clifton

P hase 4 Defense

F B Area Gulistan e Juhar Rashid M inhas Road

E xpress Way Gulshan -e- Iqbal ( Gulshan -e- Iqbal B Behria

Shara Faisal

M ughal Darbar Tariq Road

Reason for going to a particular pump
Out of our 100 respondents majority has given 4 reasons for going to the particular pump. 75 respondents have chosen the reason for going to a particular pump is because of convenience. There are other major reasons got responses:
• • •

they are satisfied with the quality of the pump’s fuel (45points) they are satisfied with the quantity (41points) they got best services on the pump (41points)

So we can say that the customer’s selection criterion is mainly depending on the above stated three reasons. There are other factors involved in the selection like outlook or extra services but those factors are secondary to the above stated four factors.
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G o ing to G oing to G oing to Pe tro l G oin g to G oing to G oing to G oing to Petrol G oing to Petrol Petrol Pu m p Petro l Pum p Pum p Petrol Pu m p Petrol Pum p Pe tro l Pum p Pum p because Pum p becau se because of because o f becau se of because of be cause of because of of Cou rteous of Pum p Better Better Convenience O ther Con venience Be tter Service Staff Condition Q uality Q uantity Store Reasons Count Count Co unt C oun t Count Count C ount C ount 25 58 75 63 54 58 89 99 75 41 25 36 45 41 10 1 1

.0 Yes 10.0

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Switched petrol pump in the recent past
75 of the respondents said no they haven’t switched their brand. 25 respondents have switched their brands. Out of those 25 respondents • 8 respondents have switched from Shell to PSO, • 4 From Caltex to PSO So we can say 50 % (12 is 50% of 25) of the switching is from other brands to PSO. Ii implies that the PSO is gaining market share and creating new opportunities.
Switched Petrol Pump in the recent Past Count .00 1 Shell To PSO 8 Shell To Caltex 4 PSO To Shell 4 PSO To Caltex 1 Caltex to PSO 4 Caltex To Shell 3 Not Switched 75

0 Switched Petrol Pump in the recent Past Count Yes Shell To PSO Shell To Caltex PSO To Shell PSO To Caltex Caltex to PSO Caltex To Shell Not Switched

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Ranking of the three brands

.

.0 1 2 3

Preference for Shell Count 1 51 33 15

Preference for PSO Count 1 30 33 36

Preference for Caltex Count 1 17 34 48

In the ranking or grading of the all three brands the shell got the highest score as no # 1 brand. Shell graded as no 1 by 51 respondents and the PSO and Caltex graded as no # 1 by 30, 17 respondents respectively For the 2nd position all three brands got the equal score The graph is representing the score components of all three companies in each category.

120 100 80 60 40 20 0 0 1 2 3 Preference for Caltex Count Preference for PSO Count Preference for Shell Count

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Reasons for trying new petrol pump

.0 Yes

Switch ed because th ere is No Switch ed Switched Switched Switched Switched Difference because because because b ecause of because o f between of bad of Lucky of free lack of tru st lack o f trust Petro l Pump s service Draws gifts in qu ality in quantity Count Co unt Cou nt Co unt Co unt Coun t 83 63 92 96 61 58 17 36 8 4 39 42

Switched because o f other reason s Coun t 96 4

In this question we have provided the list of reasons for switching the petrol pump. The three main reasons for switching come out after analyzing the responses:  The first one is lack of trust in quantity (42 points)  Second is lack of trust in quality (39 points)  Third main reason is bad service (36 points) So another reason which does not score very high but its considerable is there is no difference in patrol pumps that’s why people switch petrol pumps. It’s true up to some extent but it’s not the reason in most of the cases.

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Comparison of PSO with Shell

The table is presenting facts on the comparison of the PSO with Shell on different attributes.

Staff C onv enience Petrol pum p Q ua lity o f Q ua ntity o f Lubricant O verall Behav io ur Store as condition as petrol a s petro l a s as service a s a s com pa re co m pa re w ith com pa re with co m pare co m pare com pa re com pa re w ith Shell Shell Shell w ith Shell w ith Shell w ith Shell w ith Shell C ount N o R espo nse Better Sam e W o rse 4 29 44 23 C o unt 7 27 47 18 C o unt 7 28 45 20 C o unt 6 24 47 22 C o unt 5 21 49 25 C o unt 10 18 56 15 1 C ount 7 29 42 22

Almost in all the attributes PSO got a better score than the Shell or got the same score as Shell. But if you look at the worst scores they are also in a substantial amount so it may possible people think both as same but they are not the same at all the attributes. The worse score is more than better in the case of the quantity of fuel people thought they are not giving right quantity. The reason behind this factor is the old non-digital pumps because of that people are not still sure of the right quantity at PSO. The PSO got a bigger worse score on services that mean people think that the services of the PSO are not as good as Shell.
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Comparison of PSO with Caltex

The table is representing the scores of the comparison of PSO with Caltex.

Staff Convenienc Petrol pump Quality of Quantity of Lubricant Overall Behaviour e Store as condition as petrol as petrol as as service as as compare compare compare compare compare compare compare with Caltex with Caltex with Caltex with Caltex with Caltex with Caltex with Caltex Count Count Count Count Count Count Count No Response 4 7 8 7 6 5 5 Better 34 35 34 29 35 35 35 Same 49 48 43 48 42 50 44 Worse 13 10 15 15 15 10 15 1 1 1 1

The majority of the respondents respond positively in this comparison. The better scores are higher than the worse scores.

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Response of the customers in respect of new vision scheme

Effect of Change Made by Pso Count No Response 21 Positive 54 Negative 10 Netural 14
The 54% of the respondents respond positively and said welcome to the changes. Most of them said it’s a sign of improvement in national organization and it’s good. 14 % of the respondents said it’s normal they have to change themselves right now otherwise pso will be no more in the market. Only 10% said PSO is just copying the competitors and following them.
Effect of Change Made by Pso Count

No Response Positive Negative Netural

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Personal data of the respondents

Gender

Male Female

Gender of Respondents Count 83 17

The majority of our respondents are males (83% of our respondents are males). Only 17% of the respondents are females. It’s because of small no of female drivers in our society.

Gender of Respondents Count

Male Female

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Age

18 21 31 41 51

Age of Respondents Count - 20 Years 7 - 30 Years 71 - 40 Years 11 - 50 Years 7 Years and above 4

Our respondents are belongs to all age categories of the research. We have taken respondents from all age groups in order to have comprehensive information on the problem. 74 % of the respondents belong to 21 to 30 years age group. The pie chart is showing the different age group of the respondents.
18 Age of Respondents Count - 20 Years 21 - 30 Years 31 - 40 Years 41 - 50 Years 51 Years and above

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Family’s Average Monthly Income
The people from different income categories have different perceptions about the companies because of that we took respondents from all the income categories.
Average Household Income of Respondents in Rs Count Below 11,000 11,00 - 20,000 21,000 - 30,000 31,000 - 40,000 41,000 - 50,000 51,000 and above 19 14 16 15 30

The average family’s monthly income of our respondents is ranges from almost Rs.10, 000 to Rs.51, 000 and above. We have respondents from all income categories  30% of our respondents belong to the income category Rs. 51,000 and above.  19% of the respondents belong to Rs. 11, 000 – 20 ,000 income category  16% of the them are from Rs. 31 ,000 – 40, 000 income category  15% of the them are from Rs. 41,000 – 50,000 income category  14% of the them are from Rs. 21,000 – 30,000 income category The pie chart is presenting the different income categories in a summary form.
Average Household Income of Respondents in Rs Count Below 11,000 11,00 - 20,000 21,000 - 30,000 31,000 - 40,000 41,000 - 50,000 51,000 and above

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Area of residence

More than half of the respondents (52% of the respondents) are from three areas 22 respondents are from Clifton 21 respondents from Defense 11 respondents from Gulshan-e-Iqbal Another major chunk (28% of the respondents) covered by others option. It includes all areas adjacent to the Shara-e Faisal and other small areas.

Defence Clifton Tariq Road Gulshan-e-Iqbal Nazimabad Others

Area of Resident Count 21 22 7 11 10 28

Area of Resident Count Defence Clifton Tariq Road Gulshan-e-Iqbal Nazimabad Others

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Brands versus family’s average monthly income
In this cross tabulation we are analyzing the customers of all three brands with their family’s average monthly in come. We want to find out that is there any relationship between the different brands and income of its customers. The table shows that the Shell has more high income category (51,000 and above) customers than PSO, and Caltex. PSO has the second highest no of customers in almost all the income classes

Below 11,000 consumers Usually go for Fuelling Count 2 2 2

Average Household Income of Respondents in Rs 11,00 21,000 31,000 41,000 20,000 30,000 40,000 50,000 consumers Usually go for Fuelling Count 9 2 8 consumers Usually go for Fuelling Count 5 7 2 consumers Usually go for Fuelling Count 11 3 2 consumers Usually go for Fuelling Count 4 7 4

51,000 and above consumers Usually go for Fuelling Count 15 9 6

Shell PSO Caltex

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Area of residence versus Brands
Area of residence is also influences the choice of the petrol pump brand. Table is presenting the cross of both the factors. It shows that in Defense and Clifton customers give more preference to Shell over PSO and Caltex. Out of 43 respondents of defense and Clifton 24 respondents are customers of Shell. 10 of them are customers of PSO and 9 are customers of Caltex. In these areas more educated class is living those who are more influenced by their perception. So in these areas shell has the major chunk of customers because of their excellent services.

consumers Usually go for Fuelling Shell PSO Caltex Area of Area of Area of Resident Resident Resident Count Count Count Defence 10 4 7 Clifton 14 6 2 Tariq Road 4 2 1 Gulshan-e-Iqbal 4 3 4 Nazimabad 5 3 2 Others 8 12 8 7.0 1

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Relationship between area of residence and convenience

Most of the customers have convenience is the reason for going to any particular petrol pump. Especially in Clifton and Defense customers usually preferred to go to the petrol pump which is convenient.

A re a o f R e side nt D efe nc e C lifto n G ulsha n-e-Iqb T a riq R o a d al N a zim a ba d O ther s 7 .0

G o ing to G o ing to G o ing to G o ing to G o ing to Petr o l Pum p Petro l Pum p Pe tro l Pum p Petro l Pum p Petr o l Pum p be ca use o f bec a use o f be ca use o f bec a use o f be ca use o f C o nv enienc e C o nv enience C o nv e nienc e C o nv e nie nce C o nv enience C o unt .0 Yes 6 15 C o unt 5 17 C o unt 2 5 C o unt 3 8 C o unt 4 6

G o ing to G o ing to Pe tr o l Pum p Petro l Pum p be c a use o f bec a use o f C o nv enienc e C o nv enienc e C o unt 5 23 1 C o unt

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Preference of PSO, Shell and Caltex
The following table shows that the rating for all three brands.

60

60
40

50 30 40

50

40

30

20

30

20 10 10

20

10

Count

Count

Count

0 .0 1 2 3

0 .0 1 2 3

0 .0 1 2 3

P r e f e r e n c e f o r S h e ll

P r e fe r e n c e fo r P S O

P r e f e r e n c e f o r C a lt e x

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Summary of findings

The summary of this research is that the PSO has improved its image and its perception in the eyes of the consumer. Most of the respondents have given the positive opinion about the changes and new vision scheme of the PSO. The respondents said the PSO should improve its services. They should improve the outlook of the pumps in other areas except Karachi. It is satisfactory in the Karachi. The simple but radical commitment of customer intimacy by PSO is needed to deliver results. Companies that truly love their customers know that their customers don't buy a product or service. What they buy is a bundle of benefits. The greater the benefits the more product or service is purchased, resulting in a mutually satisfying position for both customer and PSO.

To deliver results consistently, requires a great commitment by the management and staff of the PSO. It requires all the imagination, initiative, empathy and dedication PSO can create. Most of the respondents said that they don’t have efficient staff and their services are not of good quality. The company maintained its strong focus on New Vision Retail Development Programme and expands its network.

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Recommendations
We are recommending these strategies after gone through the questionnaires and analyzing the research results. The following recommendations are based on the research. PSO should act upon these things. Just be a good service provider Improvement in Quantity and quality More friendly service Service needs to be more faster Come up with a unique promotional schemes Courtesy and cooperation at the outlet should increase Increase in customer services New efficient and trained staff Improve the lubricant’s quality Start collecting utility bills Improvement in staff attitude New vision scheme should be implement on all the outlets They should increase no of pumps Availability of CNG should be improved They should improve the quality of the fuel Differentiate your services as compare to your competitors Work for the betterment of the society

                

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1. Which type of vehicle do you mostly drive?

            

Motor bike 800cc car 1000cc car 1300cc car 1500cc car 1600cc car higher than 1600cc car

2. Which type of fuel is mostly used in your vehicle?
Petrol Diesel CNG Shell PSO Caltex

3. Where do you mostly go for fuelling your vehicle?

4. Please specify the location of the petrol pump where do you mostly go for fuelling? 5. Why do you go to this pump for fuelling?

    

it is near my home/ convenience provide better services courteous staff better petrol pump condition provide better quality fuel
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              

provide right quantity convienience sore others (please specify)-----------------------

6. Have you switched petrol pump in the recent past?
Previously using----------------------currently using-------------------. No, I have not switched

7. What would be the reason for you to try a new petrol pump?
No difference between petrol pump Bad service at the old pumps Lucky draws Free gifts Lack of trust in quality Lack of trust in quantity Others (please specify)--------------------------------

8. Based on your preference for fuelling vehicle rank the following on the scale of 1-3?
Shell Pso Caltex

9. How do you compare the PSO with Shell in terms of following? (Tick only one in each case)
Staff behavior Convenience store Petrol pump conditions Quality of petrol Better Better Better Better
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Same Same Same Same

Worse Worse Worse Worse

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Study Quantity of petrol Lubricant Overall service Better Better Better Same Same Same Worse Worse Worse

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10.How do you compare the PSO with Caltex in terms of following? (Tick only one in each case)
Staff behavior Convenience store Petrol pump conditions Quality of petrol Quantity of petrol Lubricant Overall service Better Better Better Better Better Better Better Same Same Same Same Same Same Same Worse Worse Worse Worse Worse Worse Worse

Pso has begun implementation of the new vision scheme replacing the decade’s old attire with new logo refreshing color combination and structural design changes into pumps (quick lube change, shop stop, tyre shop, CNG facility, service station/ car wash, internet facility).

11.So what do you think about the changes made by PSO?(please specify): 12.Please give your recommendations for bringing improvement in petrol pumps? 13. Gender?

    

Male Female 18 years – 20 years 21 years – 30 years 31 years – 40 years
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14. Age?

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             

41 years – 50 years 51 years and above

15. What is your family’s average monthly income in Rs.?
Below 11,000 11,000- 20,000 21,000- 30,000 31,000- 40,000 41,000- 50,000 51,000 and above

16. What is your area of residence?
Defense Clifton Tariq Road Gulshan-e-Iqbal Nazimabad Others (please specify):-------------------

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