ACCO 20193

CASE 2: MARKET ANALYSIS

Submitted by:

Adofina, Andrea
Amponin, Jewel Sherin
Arce, Mikko Enrick
Bestal, Ana Marie
Guevarra, Micaela
Illustrisimo, Evamel
Mangabat, Rianna
Maravilles, Ia Kirsten
Rejuso, Paulo
Sapungan, Felix

BSMA 4-4
 Executive Summary

Petron Corporation is engaged in the refining of crude oil and the marketing and distribution of
refined petroleum products. Petron Corporation is the largest oil refining and marketing company in the
Philippines and is a leading player in the Malaysian market. They have a combined refining capacity of
nearly 270,000 barrels-per-day, producing a full-range of premium fuels and petrochemicals to fuel the
lives of millions of Filipinos and Malaysians. As one of the many companies that has been long-established
in the country, Petron Corporation went through a lot of innovations and improvements to secure their
market standing.
Petron Corporation operates through the following segments: Petroleum, Insurance, Leasing,
Marketing, and others. This project will focus on its Petroleum segment, which includes gasoline, diesel
and kerosene offered to motorists and public transport operators.
For this marketing proposal, two leading Filipino brands – Petron and Jollibee, have partnered to
offer a promotion for their loyal customers. For a minimum purchase of 300 pesos worth of Petron products
at any participating Petron stations nationwide, customers will get a coupon with QR code for free Jollibee
products redeemable from December 1, 2021 to January 31, 2022 at any participating Jollibee stores
nationwide. A customer with a coupon will have a chance to receive any of the following: Jollibee Fries,
Jollibee Peach Mango Pie, Jolly Hotdog, Jolly Spaghetti, Free Yum Burger, Jollibee Burger Steak, 2
Sundae, Drinks of any choice (Regular size), or Chicken bucket (Note that the chance to have a free Chicken
Bucket meal will be limited to 50 slots only.)
The target market for this proposal are Petron customers availing fuel and engine oil. Petron
Corporation offers a full range of petroleum products such as; gasoline, kerosene, LPG, diesel, jet fuel and
petrochemicals. But the promo is only valid for fuel and engine oil.
Promotional campaigns will be done through direct sales and social media marketing. Different
social media platforms such as Facebook, Twitter, and Instagram will be used for the promotion of this
collaboration between Jollibee and Petron. This project is a way for Petron Corporation to give back to their
customers the gratitude for their loyalty and at the same time, start to increase their sales for the first quarter
of year 2022.

Product Description

PETRON-JOLLIBEE JOURNEY WITH JOY PROMO

Jollibee now joins our journey! Purchase 300 pesos worth of Petron products at participating
Petron stations to get a coupon for free Jollibee products. Promo runs from December 1, 2021
to January 31, 2022.

Promo Mechanics:

1. For a minimum of P500 single receipt purchase of any Petron fuel or Petron Engine Oils
at participating Petron stations, customer's receipt will have a QR Code that they can
scan for a chance to have one serving of the following:
1. Free Jollibee Fries;
2. Free Jollibee Peach Mango Pie;
3. Free Jolly Hotdog;
4. Free Jolly Spaghetti;
5. Free Yumburger;
6. Free Jollibee Burger Steak;
 7. Free 2 Sundae;
8. Drinks of any choice (Regular size); or
9. Chicken bucket
Note that the chance to have a free Chicken Bucket meal will be limited to 50 chances
only.

2. To redeem, go to the Jollibee app and scan the QR code presented in the receipt. After
scanning the QR code, the free Jollibee menu acquired will be presented. Note that the QR
code can only be scanned once.
QR Codes are not transferable for cash and are not for resale.
Promo runs from December 1, 2021 to January 31, 2022.
QR Code redemption is until March 31, 2022 only.

RISK MANAGEMENT PLAN

The Risk Management Plan details the organization’s risk management procedure. Identifying
risk indicators, identifying risk sources, and defining the concerns are all part of this method. This
chapter explains how the company assesses possible threats and develops a risk treatment plan
as well as a risk mitigation strategy.

Risks and Challenges

Strategic Risk

· Loss of Autonomy

A joint project means the responsibilities are shared with people from a different organization
whose corporate leadership culture is different from that of your organization. The challenge
is in the process of decision-making and implication of accountability. To agree on business
matters, both teams must work together to build consensus.

· Conflict of Interest/Vision Alignment

A course of action may not always be parallel with the interest of both parties. Some decisions
may be right for the partnership project itself, but it may be at odds with the individual interest
of the parties.

Marketing Risk

· Influence of Negative Reputation

Associating your brand with another company might have an impact on how your customers
perceive it. The risk of an organization’s reputation is scarred if one of the partnering
organizations screwed up is presumable as the project is jointly implemented, thus carrying
with it both the image of the organizations involved.
 Operational Risk

· Implementation Challenges

One of the challenges of a collaborative project is the need to deliver a day-to-day partnership
program as a collaborative project with all the associated administration, tracking, reporting,
and evaluation requirements.

· Interpersonal Conflicts

The partnership will not only depend on the business ideals between brands but also on the
positive interpersonal relationships between the employees who work for the brands. The
project's performance may be harmed by conflict among marketing specialists. Every
business has its own culture, which influences how they work and how they reach out to
customers.

Compliance Risk

Contract Violation

A partnership project cannot exist without a contract between the partnering organization. The
contract contains the regulations that will govern the process of planning and implementing the
project as well as the obligations of the partnering organizations in attaining the objectives and
desired outcome of the project. However, there is a chance that one party might violate a
regulation or fail to fulfill their obligation. Disputes regarding accountability may also arise between
partners.

Financial and Economic Risk

High Capital Requirement

Partnering may incur high transaction costs due to the need for run-abouts and management of
the partnership for a project. Parties must first consider each other’s interests and expectations
from the project and contribute to the goal of the project. In partnering, the project team must
evaluate the opportunity cost to be incurred and establish benchmarks of their hoped outcome.

Financial Resources Complications

While improved profitability might benefit brand partnership participants, allocating those shared
gains can be a time-consuming process. Interpersonal conflict will emerge when employees in
one organization believe their shares are less valuable than those of their partners.
Risk Assessment

Risk/Challenges Probability of Level of Risk

Impact Impact Index

Loss of Autonomy 1 5 Medium

Conflict of Interest/Vision 2 3 Medium

Misalignment

Influence of Negative Reputation 3 5 Critical

Implementation Challenges 5 3 Critical

Interpersonal Conflicts 3 1 Low

High Capital Requirement 4 5 Critical

Financial Resource Complication 3 5 Critical

Risk Impact Index

Inherent Risk Score Impact Description Risk

Index
(Probability*Level
Rating)
 1-4 Require continuous assessment and monitoring of the Low
existing controls

5-9 Require review and possibly change in certain policies Medium

that may affect the project

Change in certain strategy, policies and tactics where

10-12 benefits will be realized and mitigation may be made High

Above 12 Mitigation is highly imperative Critical

Risk Mitigation

Risk

Implement a responsibility chart where all members of the project team composed of
representatives from all the partnering organizations are assigned to a specific task or
responsibility.

Marketing Risk

Consider doing some research on the potential partner's activities. Determine whether or not their
reputation will constitute a threat to the brand before forming an arrangement with them.

Operational Risk

Build a positive relationship with the staff from your collaborating organization to avoid
interpersonal issues. To ensure you understand their perspectives and demonstrate your
commitment to working with them, practice comprehensive and transparent communication.
Consider examining their culture to see if they’ll fit in with your team.

Compliance Risk

Enforce regulations and compliance ordinances to be strictly followed by all partnering

organizations. The said regulations must be established in the presence of representatives from
all organizations and must be agreed by the same. Sanctions and penalties must also be
stipulated in the contract pertaining to violation of the established laws.

Financial and Economic Risk

Consider compiling legal documentation that expressly specify how each brand engaged receives
remuneration for their work before officially committing to collaborate.
 Marketing Strategy

Product

Petron company offers a full range of petroleum products such as; gasoline, kerosene, LPG,
diesel, jet fuel and petrochemicals. But the promo is only valid for fuel and engine oil.

Price

A customer can join the promo for a minimum Php 300 single receipt purchase of any Petron
fuel or any Petron Engine Oil.

Promotion

Consists of Online and Offline promotion

For online promotion, we will use our social media pages on Facebook, twitter, and Instagram.

For offline promotion, we will use tarpaulins that are posted at every branch of Petron.

Place

The promo is available at all Petron branches nationwide and participating Jollibee outlets
nationwide.
 Questionnaire:

1. How often do you buy our products?

a. 1-3 times a week

b. More than 3 times a week

c. Never

2. How much do you spend on our products every time you visit?

a. P100 - P500 a week

b. P500 - P1,000 a week

c. More than P1,000 a week

3. If your answer in number 1 is “Never”, how much are you willing to spend for our products
in exchange for a free product from Jollibee?

a. Minimum of P100.

b. Minimum of 300.

c. Minimum of P500.
 Appendices

Probability of Occurrences

Probability of Impact Impact Description Rating

Certain ü Will occur with more than 80% chance of happening 5

Likely ü Will occur with more than 50% -80% chance of happening 4

Possible ü Will occur with 50% chance of happening 3

Unlikely ü Will occur with less than 50% chance of happening 2

Remote ü Will occur with less than 10% chance of happening 1

Scale of Risk

Level of Impact Impact Description Rating

Catastrophic ü The risk has significant contribution on the failure of the project 5

Moderate ü The risk affects a portion of the project 3

Insignificant ü The risk has least to no effect on the project 1