I. II.

EXECUTIVE SUMMARY MARKETING OVERVIEW A. Business Environment

Social Political Institutional Technological Economic Ecological World Oil Prices The price of crude oil in the world market depends largely on the supply/demand parameters. Since oil is a valuable commodity, its increase or decrease affects the movement of the prices of other commodities such as food, water and electricity. The deregulation of the Philippines downstream oil industry took place in 1998. This had the significant effect of increasing the players of the downstream oil industry. In fact in 2005, about 367 new players entered the industry. The deregulation was able to yield actual investments totalling
eregulation has brought in, as of FY 2005, about 367 new players in the downstream oil industry, engaged in one or more activities, with actual investments totalling P 28.35 billion. Market share of new players from year 2002 were sustained at 15.3%. Todays market reflects more competitiveness. Presence of New Players is felt more in the LPG business earning a high market share of about 44.5% of the total LPG demand. New players in the LPG trade are all over the country, with players getting higher market shares in areas where they have import terminals. The entry of many independent refillers and marketers has resulted in malpractices in the industry and the proliferation of poor quality cylinders (not conforming to the standards for manufacture, requalification/maintenance or repair required by the BPS). Congress is now crafting a bill to also consider LPG cylinders and other ancillary equipment such as hoses and valves as critical to safety, thus as significant as the LPG product itself.

Petron and Pilipinas Shell are the two major oil refining and marketing companies that dominate the industry.
The Philippines downstream oil industry had been deregulated since1998 and is currently dominated by two (2) major oil refining and marketing companies; Petron and Pilipinas Shell. A third oil refiner and marketer, Caltex Philippines Inc. converted its 86,500 bbl/d refinery into an import terminal in 2003 and now operates as a plain marketing and distributing company under the name Chevron, but maintains its Caltex brand. Philippine National Oil Company (PNOC), a state-owned company, and Saudi Aramco jointly own Petron; each with a 40 percent stake while the public holds the remaining 20 percent share. Petron operates a 180,000 bbl/d refinery and over 1,200 gasoline stations nationwide; Pilipinas Shell has a 110,000 bbl/d refinery and about 800 gasoline stations; and Caltex/Chevron has 2 import terminals, and around 850 retail gas stations nationwide. Caltex built the first petroleum refinery in 1954. Followed by Stanvac in 1960, with the construction of what is now the biggest oil refinery in the country the Bataan Refining Corporation. Shell Refinery started operations in July 1962 while a local player, Filoil Refinery, began operations in September 1962. Currently there are 3,472 registered gasoline dispensing stations ,182 LPG refilling plants, 28.30 MB of storage capacity and 16.62 MMB depots (import and export terminals). A 135 km white-oil and 100 km black-oil pipelines are used to transport oil from the refineries in Batangas to Manila and vice versa.

B. C. D.

Industry Performance Competitive Climate Our Market Performance

1. Product 2. Price 3. Place 4. Promotion III. MARKETING OBJECTIVES Focus primarily on sales volume (units) by size, type, and/or sales revenue. Other objectives can be on: 1. Market Share 2. Product, e.g. Brand Awareness Level 3. Distribution Presence/Placement/Reach 4. Promotion, e.g. Advertising Recall IV. STRATEGIC MARKETING DIRECTIONS A. Product B. Price C. Promotion D. Place V. MARKETING PROGRAMS A. Product B. Price C. Promotion D. Place VI. MONTHLY SALES FORECAST A. Volume Sales Forecast Broken Down By: 1. Product 2. Distribution Area 3. Distribution Channel Type B. Sales Revenue Projections VII. PROMOTION PLAN (MEDIA AND SALES PROMOTION) WITH MONTHLY BREAKDOWN VIII. LOGISTICS PLAN A. Specify by type of vehicle B. Number of warehouse C. Others IX. MANPOWER PLAN Specify by function X. BUDGET SUMMARY / APPENDICES Shown versus current year