CHAPTER: 01

Misbah jabbar

1915172

BSMS 7C
Thesis Title: Advertising strategy for ROYAL BIO ENERGY BRAND

Introduction 

In Pakistan, the winter season indicates by the typical fog, worsening smog, and increasing

natural gas shortages. Natural gas contains 94.7% methane which is frequently used in homes. It

is a colorless gas used to provide heat for cooking. Biogas (Carbon dioxide and methane), CNG

(around 93.4 % methane and remaining other gases including carbon dioxide, nitrogen, propane,

and butane traces), and LPG (comprise the mixture of propane and butane) this gases are

delivered in cylinders or tanks. Natural gas demand rises by 300% in the winter due to various

factors (Malik, Qasim, Saeed, Youngho, & TaghizadehHesary, 2019). 

Energy Crisis

Our country has been encountering the issue of a non-supply of gas for the past several years. It

has evolved into a fast-growing import market as local supply has dwindled over the past few

years. Emerging nations, including Pakistan, have developed LNG import policies, assuming that

the fuel will remain productive and cheap for the foreseeable future. However, there is currently

a gas shortage in Pakistan due to the growing use of natural gas in initiatives, household life, and

transportation - Consumption and demand for gas are rising, which seems to be a sign of trouble

in the future.
Karachi is one of Pakistan's most important cities and is vital to the economy, contributing

around 12-15% of GDP (Ismail, 2022). Due to the economic hub, people from all over the

country have been moving to Karachi for employment.

The people of Karachi are severely affected by the gas outage during meal hours throughout the

day. In some areas where gas is not readily available, hotels have raised their rates in response to

increased demand. The non-availability of piped gas supply from the Sui Southern Gas Company

network has forced citizens to start using Liquefied Petroleum Gas (LPG) - It has led to a rise in

LPG demand during the winter - However, it sold for Rs. 212. Due to this, the cost of gas

cylinders is also increasing during winter; most people cannot bear gas cylinders or refills. We

can reduce this shortage by effectively using alternative energy sources. Otherwise, the crisis is

increasing rapidly. As a result, Pakistan's industrial and domestic sectors are negatively affected

(Kiani, 2022). For several reasons, including creating a mismatch between supply and demand,

some commercial industries claim that the government needs to make the most of its gas

production infrastructure to maximize production.

Economic Crisis

There has been a significant increase in liquefied natural gas imports into Pakistan; growing

dependency in the country is becoming a nightmare. We have become completely enmeshed and

addicted to energy scarcity and distribution conflicts. From power outages to gas load-shedding,

all the problems emerge in one form or another. 

There is no doubt that the recent era has entered a very critical phase. The entire world is facing

various economic problems affecting every aspect of life. Pakistan's failure to procure LPG at
affordable prices will worsen the impending crisis and energy situation. Globally natural gas

shortages have raised the risk of shocks in the country's community market, due to which petrol

prices have reached the highest. Minister of Petroleum Musadik Malik says that Pakistan cannot

compete with the purchasing power of European countries; they are the potential user of these

reserves, which our country desperately needs (Mariko, 2022)

Natural gas index among the top ten consumption of all resources on Earth - Less than 1% of the

global market belongs to Pakistan. It meets its energy needs from domestic and imported

resources in the ratio of 44:56. More than 40% of the country's energy mix consists of imported

natural gas, including gas sources used to generate electricity (Box, 2022). The insufficiency of a

solid operational and regulatory framework for LNG and shortages have made the government

aware of rising supply costs. 

Livestock

Livestock waste or manure is considered a modern and abundant source of biogas production.

Pakistan's economy is mainly based on agriculture. To meet the needs of the farmers and their

families, the farming community rears a large amount of livestock. This sector emerged as the

largest sub-sector in the last few years. This industry contributed 60.1% to agriculture and 11.5%

of GDP in 2019. 1,461 The total value added of livestock increased by 3.0 per cent to Rs 1,505

billion (2019-20). (IQBAL, 8th June, 2022).

The livestock sector is being re-focused to boost the economy, provide food security and

alleviate poverty in the country. The government's main objective is to work on this industry and

strengthen it. Currently, livestock accounts for 61.3 per cent of agriculture and 14.14 per cent of

GDP (Naqvi, 2022) 

Agriculture

According to statistics, 140 Billion tons of agro waste are produced annually (MónicaDuque-

Acevedo, 2020); this vast amount has remarkable potential to be converted into renewable

energy sources.

Pakistan is predominantly an agricultural economy and has a large amount of agricultural waste

generated from various crops such as rice, sugarcane, cotton, sunflower and so on at every

district and village level in Pakistan. The agricultural industry is essential for the country's

economic development, food and employment opportunities, especially for reducing poverty in

rural areas. Approximately 38.5% of the labour force is engaged in this sector. It contributes

19.2% to the GDP (Ashok Parikh, 2022)

Since Pakistan is one of the economies in the world that depends on livestock, livestock can

produce methane. The developing world, particularly Asia, will continue to experience

substantial growth. Countries like China and India are investing heavily in eco-friendly products

to meet the needs of the growing population. Pakistan also has many brands that are working on

eco-friendly themes. 

It would be great if we could move on to which energy sources could be considered renewable.

The brand "Royal Bioenergy" provides eco-stoves that produce carbon-neutral fuel from biomass

residues. It has easily replaced other harmful uses of energy, such as LPG, diesel, kerosene, and
wood or wood chips, for cooking and other purposes. Eco-stoves produced by this brand are

made with pallets and use animal dung, agricultural waste, and sawdust as fuel for their stoves. 

The purpose of this research is to investigate the readiness and willingness of karachiities in

adopting an eco-friendly bio mass stoves. The research will also explore what factor can

motivate change in life style, keeping in mind current consumer behavior.

1.1 Thesis Statement

This study aims to elucidate to the people of Karachi about the eco-friendly brand "Royal

Bioenergy", which provides eco-stoves that run on carbon-neutral fuel made from biomass

residues, a renewable source of energy.

1.2 Problem Statement

Scarcity and load-shedding, along with rising costs of all kinds of cooking fuels, have adverse

detrimental effects on the lives of common people.

1.3 Research Objective

 To study the effects of energy crisis on a common man in Karachi.

 To determine the awareness of masses regarding Biomass stoves.

 To assess public opinion to determine the acceptability of biomass stoves.

  

1.4 Research Questions 

1. Why is there a need for an eco-friendly stove brand in the market?

2. Which socioeconomic class will be more receptive to this product?

3. How do biomass stoves preserve forests and their associated ecosystems?

1.5 Limitations

 Due to the research being conducted by a student budget will be constrained.

 Due to the limited resources, interviews couldn’t be collected from all over the Karachi

Districts.

 Shortage of time made it problematic for further research. As expected, such as research

requires immense amount of time, which unfortunately was not possible thus becoming

one of the major limitation.

 The demographic with the research are also mostly limited mainly to Karachi.

References:

Ashok Parikh, F. A. (2022). Measurement of Economic Efficiency in Pakistani Agriculture.

Box, O. (2022). Marketed as Natural, this Gas is Complicated.

Ismail, D. M. (2022). PAKISTAN ECONOMIC SURVEY. Islamabad: 09th June .

Kiani, K. ( 2022 , October 6). Minister warns of gas shortage as winter nears.
Malik, S., Qasim, M., Saeed, H., Youngho, C., & TaghizadehHesary, F. (2019). Energy security

in Pakistan: A quantitative approach to a sustainable energy policy.

Mariko. (2022, March 11). War in Ukraine:. How Asian economies are divided over Russia

sanctions.

MónicaDuque-Acevedo. ( 2020, June ). Global Ecology and Conservation. Agricultural waste:

Review of the evolution, approaches and perspectives on alternative uses.

Naqvi, M. A. (2022). LIVESTOCK RESOURCES OF PAKISTAN: PRESENT STATUS AND

FUTURE TRENDS. p. 14.