1.

Introduction
SAUDI ARAMCO
Saudi Aramco - the state state-owned oil
company of the Kingdom of Saudi Arabia
- is a fully integrated, global petroleum
enterprise and a world leader in
exploration, production, refining, distribution, marketing and petrochemicals
manufacturing. It manages the world's largest proven conventional crude oil and
condensate reserves of 260.2 billion barrels and the world's fourth-largest natural gas
reserves of 288.4 trillion standard cubic feet. Saudi Aramco is also among the top
producers of natural gas, maintaining the fourth-largest natural gas reserves in the
world.

Saudi Aramco –At a Glance

Type State-owned enterprise

Headquarters Dhahran, Saudi Arabia

Founder(s) 1933 (as California-Arabian Standard Oil Co.)
1944 (as Aramco)
1988 (as Saudi Aramco)
Key people Khalid A. Al-Falih[1]
(President & CEO)Ali Al-Naimi[2]
(Minister of Petroleumand Mineral
Industry Oil and gas
Product Petroleum, natural gas and other petrochemicals
Website www.saudiaramco.com
Employees 61,907 (2014)
Advertising Google  and Others
Revenue US$ 378 billion (2014)

Current Active
status
 Area served Worldwide

2.Defining Marketing Management relates with

Company’s Marketing Management
Marketing management is the art and science of choosing target markets and
getting, keeping, and growing customers through creating, delivering, and
communicating superior customer value. (Theory 2000-2010).
Marketing management depends on the size of the business and the industry in
which the business operates. Effective marketing management will use a company's
resources to increase its customer base, improve customer opinions of the company's
products and services, and increase the company's perceived value. (Theory 2011-
2015).

Saudi Aramco believes that professional marketing is the hallmark of their

commitment to customers. Saudi Aramco accomplishes marketing objectives
through efficient and innovative techniques which compiles market Research. Saudi
Aramco also has mission and vision to achieve success in the long run in the
international market. Saudi Aramco is currently exporting its quality products to
many countries. Currently Saudi Aramco is following the Business-to-Business
communication strategy. It is a known fact that petroleum products are commodities
that can hardly be branded and the price is strictly regulated but Saudi Aramco is
effectively servicing the customer well. The future plan for Saudi Aramco includes
that by 2020, “Saudi Aramco is the world’s leading integrated energy and chemicals
company, focused on maximizing income, facilitating the sustainable and diversified
expansion of the Kingdom’s economy, and enabling a globally competitive and
vibrant Saudi energy sector.”

3.Mission

Maximize added value and meet our stakeholder’s expectations by:

 Building and operating a full conversion refinery.

  Being reliable and cost efficient in our business.
 Conforming to the highest safety, health, environment and quality standards .

4.Vision
We believe energy is opportunity

“Whether it is the energy of our resources or the intellectual and creative energy of
our people, we are focused on harnessing their full potential. This belief is at the core
of everything we do.”

5. Business Plan
The investment is part of the state-owned company’s target of spending $150 billion
at home and internationally through 2019.Saudi Aramco will shift their focus on
Asia, particularly China and Korea.

Saudi Aramco is expanding in refining and petrochemicals and seeking to boost ties
with Asia as part of its ambition to become both the world’s largest oil and chemicals
producer by the end of the decade. Last year, it bought a $2 billion stake in S-Oil
Corp., South Korea’s third-largest oil refiner.

The company has joint-venture plants in China, owns stakes in refining businesses in
South Korea, Japan and the U.S. and markets its crude and refined products globally.
Aramco secured a $10 billion loan in March that could be used to fund potential
acquisitions.

6.Corporate Strategy
As the global population grows, economies expand, and standards of living increase,
energy will continue to be an essential enabler of opportunity. Saudi Aramco is
executing a wide-ranging strategy to ensure that we are at the forefront of providing
the needed energy — today and tomorrow. Guided positively by the Strategic Intent
and determination, SA’s business strategy will not only do welfare for millions of
people it serves but it will also enhance the job enrichment of each and every
employee who works or are somehow connected to this company.

7. SWOT Analysis
The strength of Saudi Aramco lies in its leading edge of science and creativity,
helping to bring to life the ideas that make energy more beneficial and sustainable.
The real value of energy lies in its potential to serve the needs of human development
and progress. Doing so with the most impact requires the energy of petroleum
resources. It is the one of the pioneer company to supply crude oil all over the world.

STRENGTHS
 Spending on alternative energy
 Investment in high profile project
 The brand image they have created sustaining over 80
years.
 Management who are highly skilled and to operate
the company
 Integrated its business across the hydrocarbon value
chain to create impact Lead in technology
development and innovation
 Highly skilled sales forces and very efficient and wide
distribution channels
WEAKNESSES
 Declining profit over the years
 Aramco is declining replacement rates in recent years
 Future profitability
 Aramco lacks the ability to compete with existing
competitors which in turn declining its sales of
refined products, resulting in lowering top line
growth
 Rapidly increasing costs of skilled manpower and cost
of mining and refining crude oil is pushing up the cost
of innovation

 Lower barriers of market entry. As it supplies crude

oil, which is raw material of all kinds of oil and
petroleum, barriers of market entry was very low at
that time.

OPPORTUNITIES THREATS
 Growing Asian-Pacific population and expansion of  Prolonged global recession
their economy will lead to greater demand for energy  International Union Strikes and other global political
 Bio-fuels and alternative energy methods events (Environmental issues)
 New markets for oil and gas in various cities  Global economy
 Growing demand of crude oil day by day  Increasing costs of mining and refining crude oil
 Growth rates and profitability can be increased if SA  Growing competition and lower profitability
can meet the growing demand  Increase in labor costs
 Incredible export potential & New innovative  Unexpected problems arising anywhere SA supplies
products its product
 Environmental Regulation that can be a threat of oil
mining
 8.PESTEL Analysis
The macro environment tends to have a long term impact and requires extensive
research. PESTEL analysis is one of the major analytical tools to find out the impact
of politics, society, economic system, technology, environment and legal issues. For
the study purpose we have conducted a PESTEL analysis on the oil and gas industry
which mainly focuses Saudi Aramco. The facts and findings are discussed below.
Political Factors Economic Factors
-Governments controlling world
-Interdependence between worldeconomy and oil
hydrocarbon reserves → significant impact
industry: economic growth → growing demand
- OPEC controlling 75.5% of world reserves →
for oil; but also: continual supply of oil at
highly influential
reasonable prices → stable economy
- Political risks:
- Inelastic demand → positive effect
Instability,expropriation/nationalization of
- Exchange rates → impact on buyers and
property, terrorism, civil conflicts, strikes, wars,
suppliers
etc. → adverse effect
- Environmental treaties→ negative impact

Socio-cultural Factors Technological Factors

- Values and beliefs shape preferences for energies - Extremely technology-driven: improved
→ energy mix changing towards greener energies
- Need for companies to show social responsibility
→ supporting sustainable human development
through investments in education, training, social
and environmental activities
Environmental Factors
upstream technologies → better recovery of
hydrocarbon, recovering oil from reserves
considered exhausted → improved profitability
(gains)
- Breakthrough technology in ultra deep-
water extraction → competitive advantage for
Petro bras
- Advanced technology → profound impact on
long-term sustainability
Legal Factors

- One of the most polluting industries in the world
→ requirements for covering environmental
damages and restoration of inactive sites →burden
for companies’ profitability
- Special care of safety and quality of products and
transportation →greater reputation and sustainable
- Subject to strict legal regulations: drilling,
environmental-health-and safety protection
controls, controls over development and
decommissioning of fields, etc.
- Large upfront concession fees and special
royalties for oilfields →burden for companies
 value creation → positive impact - Obligations relating to environment and climate
change → negative effect on profitability

Political Factors:
Political environment of the country plays significant role for Saudi Aramco. The
company is backed by the state therefore the policies are often influenced by the
governmental rules, regulations and other socio-political needs. The policies of Saudi
Aramco are dependent on the governmental plans for the oil production in order to
maintain the prices.

Another important issue that can affect the company’s operations is the growing
political unrest in the world. Changes to the political and state controlled system will
have profound impact on the operation and function of the company.

Economic Factors:
The economy of Saudi Arabia is dependent on the oil production and distribution.
The Saudi economy is petroleum centric. 75 per cent of its revenues come through
petro products and it constitutes 90 per cent of its imports. This makes large state
owned oil companies such as Saudi Aramco significant players in the market. It also
plays its part in controlling imitational oil process as it owns significant proven oil
reserves with ability to control Global oil production.

Social Factors:
Saudi Arabia is an Islamic country where Islamic methods are followed in the society
and in various aspects of life. Being a state owned company, it is therefore, expected
from Saudi Aramco to provide the jobs to the nationals and generate considerable
amount of revenues for the betterment of the country. Saudi Aramco has fulfilled its
duty by creating jobs for the domestic market and by creating wealth. It will be
desirable for the company to build and implement active Corporate Social
Responsibility (CSR) strategy to take part in the overall improvement of the
community and people.
Technological Factors:
In recent years Saudi Aramco has shown significant technological advancement
which can be seen in successful implementation of large scale projects before
schedule. At the same time the global shift towards cleaner and greener technology
as well as alternatives fuels can be one of the reasons to ponder upon for Saudi
Aramco as well as other oil companies.

Environmental Factors:
Environmental issues are the most curtail one for oil manufacturing companies like
Saudi Aramco. Because of the nature of Saudi Aramco’s business emission and
pollution are inevitable and hence they are bound to get into controversies. But Saudi
Aramco has done well by taking steps in emission reduction and pollution control. It
has taken initiatives to reduce harmful lead content in its products.

Legal Factors:
There has been lot of legal implication for the oil companies regarding environmental
allegation around the globe. This trend is getting high in Saudi Aramco as well. The
first comprehensive environmental legislation came into existence in 2001.
Nevertheless it has taken a strong stance against pollution and industrial wastes and
all the companies must abide by it. Also most major international oil markets have
different regulation of their own.

9.Michael Porter’s 5 Force Model:

Porter’s 5 force model is a standard analysis process to identify the external
environment of a company. We have analyzed the external environment of the oil
and gasindustry which focuses Saudi Aramco and the analysis revealed the following
result.
Porter’s Five Forces Analysis of Saudi Aramco
 
Supplier Power: Low
>Saudi Aramco  have no
supplier concentration
>Saudi Aramco have
differentiation of inputs
>Absence of substitute of
inputs

Threat of New Entrants: Low Threat of Substitutes:

Very Low
>Saudi Aramco have no cost > Saudi Aramco have no
advantage of their customer switching cost
> Price performance trade
> Saudi Aramco have no Rivalry of substitutes
switching cost
> Saudi Aramco have no expect
relation
>Huge investments

Buyer Power: Low
> Saudi Aramco have brand
identity
> Saudi Aramco have no
price sensitivity
>Unavailability of substitute
Degree of Rivalry:
Medium
>Low exit barrier
>High industry growth
>Low product differences
>Brand identity
>Diversity of rivals

Degree of rivalry: Medium

Competition in the domestic market is minimal for Saudi Aramco as it is the state
owned player and hence will always get the preference during major deals in the field
of expansion and refining. But for finished foods like hydrocarbon products, it has
significant competition from other domestic players such as SABIC. Also in the
overseas markets it must compete with global giants such as Shell, BP and Exxon etc.
but its holds large oil reserves in the home country offering it a competitive edge.

Threat of New Entrants: Low

The oil industry is very intensive industry. Exploring oil fields, setting up production
facilities and distribution networks is a cumbersome and time consuming task that
also requires huge investments and backing from government and regulatory bodies.
Saudi Aramco have no threat of new entrants in the domestic market due to these
above mentioned capital requirement and the governmental support needed to set
up the business.

Threat of Substitutes: Very Low

Depleting oil reserve has accelerated the hunt for substitutes such as bio fuels, solar
power and nuclear power. But the technology is yet to develop to an extent where
these sources can be utilized to completely substitute petro products. In the long run,
this substitution will be inevitable.

Bargain Power of Supplier: Low

Saudi Aramco has no supplier related issues as it is its own supplier. The company
explores and drills its oil. Therefore Saudi Aramco does not face any significant
problem in the form of supplier power.

Bargain Power of Customer: Low

Due to its stirring reserves and monopoly in the domestic markets backed by the
government, it can control the market and has significant hold over the buyers. The
organization of Petroleum Exporting Countries (OPEC), of which Saudi Aramco is a
member, controls the production and global prices of oil, thus the buyer power is not
significant here as the buyers have no impact on the pricing of this essential product
whose sources are limited to few countries only.

10. Marketing Strategy

Marketing Strategy is an organization's strategy that combines all of its marketing
goals into one comprehensive plan. The marketing strategy is the foundation of a
marketing plan.

Saudi Aramco has led through the way in terms of marketing strategy on its industry.
From producing approximately one in every eight barrels of the world’s crude oil
supply to developing breakthrough energy technologies, Saudi Aramco are driven by
the core belief that energy is opportunity.

The marketing strategy is driving Aramco Trading which is a new unit set up to trade
in refined products, maximize downstream integration and generate value by
leveraging its growing global system. Named Saudi Aramco Product Trading Co. and
based in the kingdom, this will enhance the system of balancing refined petroleum
products and back SA's expanding local and overseas downstream investment
portfolio.

11. Core Marketing Concept & Market

Segmentation

Saudi Aramco is a fully-integrated, global petroleum enterprise and a world leader in

the exploration, production, refining, distribution, shipping and marketing of oil and
gas. Their core values are Excellence, Accountability, Citizenship, and Safety &
Integrity which drives the company forward.

They’ve grown into the largest integrated global petroleum enterprise in the world,
with extensive domestic and international operations in:

• Exporting and marketing crude oil, petroleum products, natural gas liquids and
sulfur.

• Shipping crude oil internationally through an affiliated company.

• Refining crude oil, producing petrochemicals and marketing both products with
joint and equity venture partners and other affiliates at home and abroad.

Teamwork is at the heart of what they do, working in close partnership with a global
network of affiliates in:
• Sales & marketing

• Refining & chemicals

• Distribution & shipping: Vela International Marine Limited

• Exploration & production: Upstream Gas Joint Ventures

• Sourcing and procurement of materials and services

To maintain their ability to provide a safe and reliable supply of energy to the world,
an array of affiliates and subsidiaries support their activities all over the globe. Those
offices play a pivotal role in providing their company with purchasing, supply chain
management, logistics and contracting, inspection, engineering, finance, legal, public
relations, human resources, international staffing and other areas of support.

12. Marketing Mix

7P
The marketing mix will be presented as product, price, place, and the promotion as

portrayed by Kotler et al (2006).

Product

Saudi
Aramco trades in
products
such as
petrochemicals, oil, and natural gas. As far as petrochemicals are concerned, the
company has eight local refineries with a collective crude capacity of 1.8 million
bbl/d.

Price

Due to domestic supply shortages, Saudi Aramco faces international pressure

to subsidize its local natural gas prices which happen to be among the lowest in the
entire Persian Gulf. Saudi Aramco is responsible for determining the official selling
price (OSP) depending on the quality of the crude oil and the location of the
consumer.

Place

Saudi Aramco’s oil is moved through pipelines, tankers, and ships. Some of
the company’s shipping subsidiaries include the Vela International Marine Ltd., and
the National Shipping Company of Saudi Arabia also called the Bahri. The major
shipping ports include: Port of Ras Tanura in the Persian Gulf with an average
handling capacity of almost 3 million bbl/d; Ras al-Juaymah facility; and Yanbu
terminal in Red Sea.

Promotion

The company’s current plan to increase product knowledge and awareness

enables the brand to grow as the market learns more about the products, enabling
future growth as a hedge against future competition.

People

The term “Saudization” entered Aramco’s vernacular in the years after World
War II, when the company launched programs to train Saudi employees as skilled
workers and, through company-sponsored university educations, to enable them to
assume professional positions. There are approximately 61907 employees in Saudi
Aramco.

Process
 Saudi Aramco led in technology development and innovation and strengthens
its position as an employer of choice. Saudi Aramco has reinforced their preeminent
position in oil and gas exploration and production. They integrate the business
across the hydrocarbon value chain to create impact.

Physical evidence

Physical evidence comprises of the elements which are incorporated into a

service to make it tangible and somewhat measurable. For Saudi Aramco physical
evidence is its various refineries and gas plants which continuously contribute to
fulfill the customer demand.

4C

Clients
Saudi Aramco has built Global research network for achieving global
leadership in energy-related technologies and supporting the creation of a knowledge
economy in the Kingdom. Saudi Aramco is discovering new oil and gas field to
contribute to the universal need for energy.
Costs

In cost Saudi Aramco has considered their clients by establishing Aramco

Services company where they solve different problems of their customers regarding
their business.

Communication

People aspire. People create. People achieve. At Saudi Aramco, value and
cultivate these basic human attributes. They underscore our fundamental belief that
energy is opportunity and they drive to continuously do more with its resources for
the benefit of people around the world.

Convenience

In crude oil, Saudi Aramco is the largest single producer in the world:
Roughly one out of every 10 barrels of oil anywhere comes from Saudi Aramco.

13. VALUE CHAIN MODEL

SA has only one supplier which is the government or state municipals. As a crude oil
supplier, SA’s value chain would be different from others which include Exploration,
Production, Transportation, Refining, and Distribution. The chart below provides an
overview of some of the policies and initiatives which the Group has integrated into
its business activities to effectively address.
Exploration includes using technology to find out the oil resources.

In Production stage, SA brings out oil to the surface using natural and artificial
methods.

SA then Transfers the oil to refineries and consumers with tankers, long roads, and
pipelines.

In refineries, SA converts crude oil into finished products, such as petroleum, mobile
oil, engine oil etc.

Then SA distributes all those refined oil to government who are its consumers. For
selling SA’s products, they do not need to promote or advertise the products, as SA
sells it only to a fixed customer.

At Upstream level, SA’s expertise is exemplified by facilities such as Khurais.

In today’s environment, there are limited growth opportunities to companies

available in the downstream sector. SA believe that large, integrated energy and
chemicals companies can build and withstand a dynamic and profitable downstream
business that yields returns across the entire hydrocarbon value chain. In 2014, SA
has made significant steps toward achieving this goal.

14. TQM-LOYALTY-QUALITY & CONTROLL

TQM

The Total Quality Management of Saudi Aramco consists of more than 61907
qualified, trained and skilled personnel who are drawn from different disciplines that
have a bearing on the oil and gas industry. The teams of dedicated professionals
include Engineers, Machine Operators, Chemists, Managers, Business Management
Experts, Hard workers etc.

Quality

Quality for Saudi Aramco does not depend on the market demand, but depend on
their value of corporate citizenship. When people expect quality product, the
manufacturer should always provide it. SA has a very good reputation for exploring,
producing and refining quality products in competitive price. It is exporting very
high quality oil and gases worldwide.

Loyalty

Aramco’s core values are based on Integrity, safety, accountability, excellence, and
citizenship. SA’s aim is to maximize the impact of its resources. SA’s Motiva, a joint
venture with Shell, and supplies fuel to millions of customers in the United States.

Saudi Aramco cares about the expectations and concern of its shareholders,
employees, customers, and public at large in its social behavior.

Control

Saudi Aramco’s management believes in effectiveness of a quality system based on

the principle of continuous improvement, progress and prevention as per scientific
recommended guidelines. The procedure assures consistent high quality, improved
safety of the work environment.

14. Brand and Branding

Brand is a distinguishing symbol, mark, logo, name, word, sentence or a combination
of these items that companies use to distinguish their product from others in the
market.

Saudi Aramco is a well-known brand across the globe and a leader in its industry
which is known as the largest integrated global petroleum enterprise in the world
and which manages the fourth largest gas reserve. Their slogan speaks volumes
about the kind of company it is and the robust industry it operates in, which states
that:

“Energy is opportunity.”
 15. Box Analysis of Brand Elements
Brand elements are devices, which can be trademarked, that identify and
differentiate the brand. In our case with Saudi Aramco the company uses its trade
name. It legitimizes the company with its vast reputation while the logo
individualizes the products and gives it a sense of identity.

MEMORABLE MEANINGFUL

LIKEABLE TRANSFERABLE

ADAPTABLE PROTECTABLE

Saudi Aramco can be categorized under Memorable, Meaningful, Transferable, and

Protectable brand elements. The reason for such classification is elaborated below:

1. Memorable: To be memorable the brand must be easy to recognize and easy

to recall. The roots of Saudi Aramco go back more than seven decades. The
logo is well known and has been used for a very long time, ensure to improve
recall when people see it on promotional material and at the same its unique
design has distinguished it from the competition.

2. Meaningful: Brand should be inherently meaningful to convey information

about the nature of the product category, the particular attributes and benefits
of a brand, or both. In the coming decades, more and more energy from many
 different sources will be required to meet the needs of a rapidly advancing
world.
3. Transferable: Saudi Aramco is producing petrochemical products, building
export refineries and advancing the development of technologies that will
result in cleaner fuels designed for the new generation of internal combustion
engines.Their global operations and markets are served through subsidiaries,
joint-venture and shareholding relationships with other international
partners.

4. Protectable: The company is in the industry where legal protection, rules are
very important and Saudi Aramco is strictly follow them to ensure their
quality services.

16. Brand Dynamic Pyramid

Bonding: Saudi Armco’s position in Brand Dynamic Pyramid is BONDING, because

it has started its journey in 1988 as Saudi Armco. It has built a strong bonding with
its worldwide customers in last 27 years through its rational performance and
emotional attachments.

17. Five M’s of Advertising

The organizations handle their advertising in different ways. A large company will
often set up its own advertising department or else hire an ad agency to do the job of
preparing advertising programs. In developing a program, marketing managers must
always start by identifying the target market and the buyer’s motives. Then they can
make the five major decisions in developing an advertising program, known as the
five M’s of advertising.

The 5Ms of Advertising

Checklist for planning of a marketing or advertising campaign.

 What are the objectives?
Mission  What is the key objective?
 How much is it worth to reach my objectives?
Money
 How much can be spent?
 What message should be sent?
Message
 Is the message clear and easily understood?
 What media vehicles are available?
Media
 What media vehicles should be used?
 How should the results be measured?
Measurement
 How should the results be evaluated and followed up?

Message
The 5 M’s for Saudi Aramco: Most
important
reason for
making your
workplace safe
is not a little
 Mission Money Measurement
To ensure BDT 10 crore -Internal
“Safety is our # per year newsletters
1 priority”, not
just a saying -Time period
Media
Safety First statistics
(Insurance cost,
-TVC
Legal cost etc)
-Print Media
-Performance
-Workshops Appraisal

-Social Media

-Public
Relation

18. Mass Communication

Advertising Budget & Campaign Cost

Saudi Aramco’s typical advertising budget will take into account all advertising costs.
These are:

 Advertising agency commissions cost

 Purchasing all advertising and promotion media, including internet,
newspaper, TV etc.
 Outdoor advertising cost
 Collateral material cost (Brochures, mailing pieces, catalogs, etc.)
 Direct Marketing Costs

The company spends over 10 crore BDT annually on all kinds of advertising
campaigns, the percentage wise distribution of budget across channels can be
summarized as:
 Cost

30%
35% Media Buying
Agency Cost
Public Relation
Workshops

15%

20%

Sales Promotion & Budget

Saudi Aramco does not follow any rigorous regime sales promotion or campaign. But
they take part on the major trade fairs across the world for brand awareness and the
products and services they have at their disposal.

Now the oldest continuously published cultural magazine in the Arab world, Saudi
Aramco’s bimonthly is also among the best known. At the time of its founding, Arabic
publications were hard to find in the kingdom, and Al-Qafilah usually published
stories related to Saudi Arabia and the Gulf region. Later, prominent writers began
contributing articles, making it the international medium for discussion and
inspiration it is today.

Events & Experiences/Sponsors

Saudi Aramco employs various events and sponsorship opportunities to comply with
its core value and increase its brand identity:
  Saudi Aramco College Continuation Sponsorship Programme: This is a
scholarship program for high-calibre Saudi students currently pursuing a
bachelor’s degree in the United Kingdom.

 Saudi Aramco offer career development program to the various students who
are on assignment in North America for educational development.
 The College Degree Program for Non-Employees is a highly selective
scholarship program for Saudi male and female high school graduates.

Public Relation/Government Lobbying

Public Relations are the engine for all official Saudi Aramco corporate
communications. Saudi Aramco Comprise highly creative, business astute
individuals – writers, editors, graphic designers, event management specialists,
videographers, digital and social media practitioners, communications strategy
specialists, media relations and crisis communications officers - they oversee the
production of the weekly newspapers, international magazines and other
publications such as the Annual Review. As well as producing many company related
videos, the department looks after our corporate Internet site and employee intranet
site.

Corporate Social Responsibility

A company of the magnitude of Saudi Aramco does not only think about making
money but also indulges a lot of effort and commitment towards the society and
people. Some are really noteworthy like the program launched by the CEO and
Chairman like investing on the education and shifting a lot of focus on kindergarten
where kids are nurtured.

Another similar kind of program is the Mawhiba Summer Gifted Program which is
for children in high school which includes self awareness programs and building
engineering and math skills.
 19. Marketing budget
Marketing budget is an estimated projection of cost required to promote a business’s
products or services. A marketing budget will typically include all promotional,
production cost including marketing communication costs as well. Marketing is an
economy’s arbitrator between productive capacity and consumer demand. Although
marketing may be considered a passive function, it is instrumental in laying the
groundwork for effective distribution. An efficient distribution and channel system
and all the attendant middlemen match production capacity and resources with
consumer needs, wants and purchasing power.

20. Pricing Strategies

Crude-oil trading prices were set by a handful of major oil producers until March 30,
1983, when the New York Mercantile Exchange (NYMEX) began trading crude oil on
its commodities market. After that, oil prices depended much more on minute-by-
minute transactions for both “spot prices”—oil for immediate delivery—and
“futures,” or oil to be delivered in a month or more. In 1986, Saudi Arabia linked its
oil price to the spot market. Today, Saudi oil prices are tied to spot markets in the
United States, Dubai and Oman, and to Brent futures in Europe. (The Organization
of Petroleum Exporting Countries [OPEC] sets production quotas, not prices.)

21. Break Even Analysis

An analysis to determine the point at which revenue received equals the costs
associated with receiving the revenue. Break-even analysis calculates what is known
as a margin of safety, the amount that revenues exceed the break-even point.
The Chief Financial
Officer (CFO)
William Weideman
forecasts that they
can reach the cash-flow
break-even within five
years & additionally benefit from marketing fees and licensing royalties.

22. Recommendations
The following recommendations can be draw for the further development of the
Saudi Aramco -
 Saudi Aramco should always provide emphasis on customer demand. It
should always satisfy the dealers demand and arrange product availability.
 It should always pay heed to the dealers’ growth rate, take initiatives to
recover gap and always monitor their activities.
 Saudi Aramco should restructure its sales system. It can restructure through
employing more SOs, day to day sales and delivery system, enrich end-user
activists activities, frequent market visit, better communication with
distribution.
  Its general sales procedures like taking order, preparing invoice,
categorization of invoice, preparing rout plan, lining products for loading,
final check and loading of vehicles should be fast customer oriented.

23. Conclusion

The petroleum market is very much competitive although Saudi Aramco holds the
major market share. But the growth rates of the competitors and expansions of
company’s product to rural continent are great challenges for Saudi Aramco. It’s true
that Saudi Aramco is very prominent in the market because of its high quality
products, better customer response, variety of products, competitive price rate etc.

The world’s need for energy is growing, but so too is our ability to meet that demand.
Saudi Aramco’s strategic direction is closely linked with the needs and aspirations of
the Kingdom of Saudi Arabia, and is summarized in the company’s Corporate
Strategic Direction; to deliver maximum financial contribution to the enterprise and
to promote development of the local economy of the Kingdom of Saudi Arabia.
 24. Reference
1. http://www.saudiaramco.com
2. http://www.rigzone.com/news/oil_gas/a/115515/Is_Saudi_Aramco_B
ecoming_a_Role_Model_for_Corporate_Social_Responsibility#sthas
h.FxjAn9ZS.dpuf
3. https://en.wikipedia.org/wiki/Saudi_Aramco
4. http://www.zerohedge.com/news/2015-05-20/what-future-saudi-
aramco
5. http://www.saudiaramco.com/content/dam/Publications/annual-
review/2013/2013AR_Expanding_Our_Portfolio.pdf
6. http://www.saudiaramco.com/en/home/news-
media/publications/corporate-reports.html
7. http://www.saudiaramco.com/en/home/news-
media/publications/corporate-reports/annual-review-2014.html