launching of bio gas in gujranwala

Green Gas Limited Company Marketing Plan

Marketing Plan for Green gas limited company

Submitted By:

Muhammad Saddam Sajid 08110059Adeel Muhammad Uppal 08110014Mudassar Umer 05108044

Bsc Accounting & Finance and MBAGIFT University Gujranwala

Date: 25-05-2010

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Acknowledgement

First of all, we thank to Allah Almighty to provide us

courage to complete this first part of project. We also

thank to our honorable Professor Sir Shoaib-Ul-Haq

to provide us opportunity to make the topic on such

interesting project.

Table of contents

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Title no Particulars Page no1 Introduction 1-42 Objectives 53 The state of Bio gas…. 64 Demand & Supply 75 Market Segmentation 8-96 Target market 107 Competition 11-138 Marketing Mix 14-199 Individual Marketing

Promotions

Introduction

Green Gas limited Company is a company which is providing the bio gas as a substitute

of Sui gas, LP gas to the people of Gujranwala and near by villages. The company is

situated on the Noshehra Saansi Road, Near Malhi Chowk GT Road Gujranwala.The

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Company has its distribution centers in the main and important areas of the city to

provide the gas.

Vision

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“To make Green Gas Limited an unparalleled natural gas distribution company,

providing eco-friendly, less priced and clean fuel to domestic, with a total commitment to

provide quality service to its customers”

Mission

“To provide safe, convenient and reliable gas supply to our customers for domestic usage

and to provide a cleaner and environment friendly fuel to clients”

The logo and slogan of Green Gas Company

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Logo:This is the logo which represents naturalism.

Slogan:“Environment Friendly, its green gasp limited”

The objectives of Green Gas Company

The Green Gas company has set the following goals to succeed and satisfy their

customers:

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Providing safe, convenient & reliable natural gas supply to it's customers for the

domestic use in Gujranwal and nearby villages.

Providing a cleaner, environment-friendly alternative as fuel to the residents of

Gujranwala for the domestic purposes.

This will considerably bring down the alarmingly high levels of pollution.

Providing the cheap and reliable substitute of Sui Gas and Liquefied Petroleum

Gas.

To cope with the energy crises prevailing in the country.

The state of bio gas in Pakistan

Despite a huge technical potential of about five million, the total number of biogas plants

installed in the country remained very small, about 6,000 units by the end of 2006. In

early 2007, UNDP (United Nation Development Program) Pakistan, Winrock

International (WI) and SNV (Synovas Financial Corporation) carried out a feasibility

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study for establishing a large-scale household biogas programs. Furthering on the

findings of this study, an implementation document has been finalized by WI and SNV in

2008. This document details technological, organizational and institutional aspects for a

national biogas programs, including an activity schedule and budget requirements. In

January 2009, the implementation of the Domestic Biogas Programs in Pakistan was

launched. The program activities will initially take place in four provinces of Pakistan

(Punjab, Sindh, Khyber Phaktoonkhawa and Baluchistan), supporting the construction of

30,000 installations over a period of four years.

The Demand and Supply Relationship

The main actors at the supply side are private biogas construction enterprises providing

biogas construction and after sales service as well as MFIs providing credit to

households. At the demand side, Rural Support Programs organized under the Rural

Support Program Network (RSPN) will be engaged as the main implementing partners,

supplemented by NGOs, farmers’ organizations and dairy organizations. They execute

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important programs tasks that contribute to the sustainability of biogas activities,

including awareness rising. In August 2009, RSPN signed an agreement with the

Ministry of Environment of the Government of Pakistan for the facilitation of the

implementation of the Domestic Biogas Programs.

The goal of the Pakistan Domestic Biogas Programs is to improve the livelihoods and

quality of life of rural farmers in Pakistan through exploiting the market and non-market

benefits of domestic biogas. The purpose of the programs is to develop a commercially

viable domestic biogas sector. The programs has forecast a production of 275,000

domestic biogas installations over a period of 10 years, out of which the proposed first

phase of 4 years aims to install 30,000 digesters.

Market SegmentationWe have three main segments in the market to serve:

Companies:

Biogas plants are currently booming in South Asian states like Pakistan, India, Nepal,

Srilanka, Europe, USA, and China and becoming more popular all the time. The share of

biogas is comparatively low in Pakistan, despite the great potential worldwide. The

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potential can not only be seen in the use of renewable resources, but also in the use of

refuse from agricultural and industrial waste that currently pose a big problem for most

countries especially Pakistan. 32 percent of the Bio plants show poor results, which are

not state of the art, show poor efficiency in heat and energy production. Thatswhy large

companies in Pakistan are reluctant to use that resource for the energy production.

Without construction of biogas plant new enterprise anyway need to have waste storage

facilities or treatment systems. For example untreated manure storage is 2 times larger

then storage of digested biomass after biogas plant. Manure in combination with water

forms colloid compounds. Due to that water evaporates rather hardly and in case of

precipitations Biogas is accumulated and it will be the good source of energy for the

corporations in Pakistan.

Small Businesses:

Use of digesters at industrial complexes (to treat the waste generated at the factory) is

also increasing. For the small businesses concerned, this is an excellent avenue to dispose

of waste in a cost effective manner while at the same time generate heat and/or

electricity. Small businesses that have an especially high potential for using anaerobic

digestion include cattle and poultry industry, small business setups of breweries, pulp and

paper, leather, and the fruits & vegetables. As pointed out earlier, some of these small

businesses are already producing electricity from biogas, and this trend is likely to grow

further in future.

Many Pakistani small businesses, in their quest for becoming more environment

conscious, are turning to biogas one of their energy sources. In 2009, Biogas plants are

installed and continue its operations to use biogas. Small businesses can use those novel

biogas digesters for their small businesses as a renewable energy resource.

Residential Homes:

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Biogas production has been quite dominant in Pakistan at household and community

levels (especially in rural areas) than on large scales. In villages especially, thousands of

small biogas plants use the cattle waste (especially cow dung) and provide biogas used

for home heating and cooking. It is estimated that over 2 million such biogas plants will

have been estimated to installed all over Pakistan.

Such use of biogas systems in agrarian communities can increase agricultural

productivity. This is because producing heat using biogas is more efficient than

producing it using combustion, and hence more agricultural and animal waste can be

returned to the land by farmers as organic fertilizer. Moreover, the slurry that is returned

after methanogenesis is superior in terms of its nutrient content and can be used as a soil

conditioner and plant nutrient (fertilizer).

Target Market:

Our main target market is domestic people. The green gas company has decided to target

the domestic people first because initially the company wants to penetrate in the market

to create a market share and other fact to target this section is that the company in its

initial stages will have such infrastructure that it can provide this gas only to the

household people for domestic use.

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The greatest demand at domestic level, because of the shortage of energy sources is the

main reason to select this section as target customers.

On other side the gas may be used for the commercial purposes but according to our

research the machinery which being used in the factories is very heavy.

But if any factory or business wants this facility we will provide this gas to them after

making a contract and provide them the complete plant structure to them.

CompetitionCompetitively, markets are still developing and a high degree of fragmentation is

apparent across Pakistan. New entrant companies are uncommon in this niche sector and

opportunities for companies to progress from smaller system installations to larger ones

are apparent. As a result companies are striving hard for position under current market

growth conditions and it's likely that some consolidation will occur into the medium

term. This scenario will be compounded if the larger OEM (original equipment

manufacturer) and OEM packagers of gas engines become interested in developing a

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large share of the market as it develops. Various factors are to be considered in order to

study the competition of Biogas in Pakistani market. These factors are described in the

diagram below:

Our Main Competitors:The main competitors of Green Gas Company are:

Sui Gas

LPG Gas

Wood keepers

Sui Gas:

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Increasing competition

Growing interest

from larger companies

Growing niche

market

Room for company

development

New entrantsAcquisitions and

mergers

Fragmented markets


Sui Northern Gas Pipelines Limited (SNGPL) is the largest integrated gas company

serving more than 3.4 million consumers in North Central Pakistan through an extensive

network in Punjab and NWFP. The Company has over 46 years of experience in

operation and maintenance of high-pressure gas transmission and distribution systems.

Our main competition is with the Sui gas which is prevailing in the whole market from a

longer period of time. This is being used for many purposes such as cooking, and to

produce the electricity etc. The customers are well familiar with this kind of energy

source. According to our survey most of the people and probably all the people are using

this kind of source. So this will be a great competition for us to make our product

successful.

LPG Gas (Liquefied Petroleum Gas):The second main competition the Green Gas Company will face is in the form of LPG

Gas. Liquefied petroleum gas (also called LPG, GPL, LP Gas, or auto gas) is

a flammable mixture of hydrocarbon gases used as a fuel in heating appliances and

vehicles, and increasingly replacing chlorofluorocarbons as an aerosol propellant and

a refrigerant to reduce damage to the ozone.

LPG is widely available and can be used for hundreds of commercial and domestic

applications. Moreover, LPG is now being used alongside renewable technologies, as

well as with decentralized electricity generation (Combined heat and power systems).

Wood Keepers:At this stage we have a small competition with the wood keepers who provide the wood

for the purpose of burning for cooking etc. But we think that this is a small portion in the

cities like Gujranwala. So this is not a strong force for us to compete with.

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http://en.wikipedia.org/wiki/Refrigerant

http://en.wikipedia.org/wiki/Aerosol_propellant

http://en.wikipedia.org/wiki/Chlorofluorocarbon

http://en.wikipedia.org/wiki/Fuel

http://en.wikipedia.org/wiki/Gas

http://en.wikipedia.org/wiki/Hydrocarbon

http://en.wikipedia.org/wiki/Flammable

http://en.wikipedia.org/wiki/Autogas


Marketing mix

According to the marketing mix elements like Product, Price, Place and Promotion the

Green Gas Company has decided launch the product in the market.

Product:

Biogas is created when organic waste is placed in a “biodigester”, a machine designed to

capture methane gas released by decomposing material. When properly treated, biogas

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can be used to generate power or fed into the grid and used as a clean, renewable energy

source for homes and businesses in place of some fossil fuels. Currently, biogas can be

produced only in limited quantities but hopefully, one day will become a viable

renewable energy source for Pakistan. The companies may also upgrade their well-know

and marketing share through supporting some social activities and scholastic conferences.

Price:

The price is the amount a customer pays for the product. It is determined by a number of

factors including market share, competition, material costs, product identity and the

customer's perceived value of the product. The business may increase or decrease the

price of product if other stores have the same product.

According to our survey and research our customers are willing to pay price less than the

competitors so according to the Penetration pricing strategy the Green Gas Company has

decided to penetrate in the market so the range of price will be much lesser than the

competitors prevailing in the market.

Place:

Place represents the location where a product can be purchased. It is often referred to as

the distribution channel. It can include any physical store as well as virtual stores on the

Internet.

Methods of Distribution:

Biogas will be able to provide at least ten per cent of the need for natural gas and be used

with the same degree of flexibility as fossil fuels. After treatment, biogas has the same

gas quality as conventional natural gas and can be fed directly in the natural gas

distribution system. Feeding bio-methane into the natural gas system is of particular

interest where there are no local consumers of heat. This option makes the use of biogas

more versatile. Farmers, municipal utilities and energy supply companies can share the

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profit of feeding bio-methane into the natural gas distribution system. Depending on the

gas quality in the distribution system, the calorific value and other characteristics must

also be adjusted.

In Pakistan as an entrepreneur we have two methods of mechanized distribution systems

of Bio gas:

Distribution via piping systems

The Biogas is pumped directly from the storage tank onto the field and is

distributed there. If the pump is rather small and the pressure and transported

amounts are low, the distribution can be done by hand. With increasing pressure

and transported amounts, the distribution system is attached to a tractor. The

tractor does not have to be very powerful as there is no need to pull a heavy

tanker. The main advantage of this method is the low ground pressure and the

ability to enter into fields of steep slope, of fragile soil structure and during bad

weather. This method is only economic for fields close to the slurry storage

container. But it requires high cost and labor.

Distribution via tanker

The tanker is filled with Biogas and pulled to the field for distribution. At initial

stage we will install 2 plants to produce the gas.

Green Gas Company’s method to distribute the gas:

The distribution method of tanker is very beneficial as compared to piping system

because it have the advantage of a higher degree of quality gas and less nutrient losses to

the atmosphere. We are going to use the second one (Distribution through Tanker) in this

method we will generate the bio gas with the help of plant then we will fill it into the

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tanker with the help of pipes then the gas will be filled to the cylinders of different sizes

according to the need.

This is the structure of Bio Gas plant.

The Green Gas Company has decided that we will open our shops in the different areas of

the Gujranwala like Model town, GT road etc.

Promotion:

Promotion represents all of the communications that a marketer may use in the

marketplace. Promotion has four distinct elements:

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http://en.wikipedia.org/wiki/Promotion_(marketing)


Advertising:

Advertising covers any communication that is paid for, from cinema commercials, radio

and Internet adverts through print media and billboards. The Green Gas Company has

decided that we will adopt the following methods to advertise our product:

TV: We will use the local media like cable network.

Radio: We will also use FM-106 as an advertising tool because a lot of people

also listen the radio.

Print Media: Different news papers and magazines like Jang, Sunday

Magazine, and Akhbar-e-Jahan etc will be used for the advertisement tool.

The following tools will also be used:

Hand books: To explain the benefits of the product to the customers.

Cartoon books: To develop the interest of the customers we will use

different kind of cartoons to explain the process and benefits of the product.

Pictures: The pictures of the whole product and process will be shown to the

customers to develop the interest of the customers, like:

Bill Boards: We have decided that we will use this tool also and we will

convey our message to the consumers through bill boards along other ways.

Posters: This tool is also a very impressive tool to gabber the intention of the

customers so we will also distribute and paste the posters in the whole city to

create more awareness.

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http://en.wikipedia.org/wiki/Advertising


Public relations:

Public relations are where the communication is not directly paid for and includes press

releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events.

To promote our product the Green gas Company has decided to go for following tools:

Seminars: We will go to most renowned and popular institutions (Gift

University, Punjab University, Punjab College, and Superior Science College etc)

and conduct the seminars over there.

Word of mouth:

Word of mouth is any apparently informal communication about the product by ordinary

individuals, satisfied customers or people specifically engaged to create word of mouth

momentum. Sales staff often plays an important role in word of mouth and Public

Relations. To create the positive word of mouth at initial stage we will use the following

tolls:

Train our sales force.

The employees and owners will create a positive buzz in the market.

Point of sale:

Point of sale (POS) or checkout is the location where a transaction occurs. A "checkout"

refers to a POS terminal or more generally to the hardware and software used for

checkouts, the equivalent of an electronic cash register. As a point of sale our shops will

be available in the different places of the city. The process will be in the following way:

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http://en.wikipedia.org/wiki/Computer_software

http://en.wikipedia.org/wiki/Hardware

http://en.wikipedia.org/wiki/Financial_transaction

http://en.wikipedia.org/wiki/Point_of_sale

http://en.wikipedia.org/wiki/Word_of_mouth

http://en.wikipedia.org/wiki/Public_relations


Individual Marketing Promotion:Telemarketing:

When we have decided to introduce the Biogas into the market of Gujranwala, We made

a survey by questionnaire of potential customers to get their opinion and determine the

demand before go into selling. We also have made interviews it could also call existing

customers of SUI Gas to get their opinion too. Telemarketing is a lot more economical

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and up to date than launching a new product on gut feel or paying for expensive industry

marketing data.

Larger farms with huge animal populations have created a need to manage massive

volumes of waste. The idea of turning this manure into electricity is appealing. It could

help us to gain value from manure, protect groundwater and local streams, reduce odors,

and recycle fertilizer nutrients, while generating a renewable source of electricity. With

all these benefits, it's easy to lose sight of the technical factors, economic barriers, and

manpower/management requirements associated with a successful biogas installation.

That phenomenon of Biogas can be marketed through telemarketing. That type of

marketing is used more in Pakistan. We can see various call centers where Tele sales

representatives provides information about the concerning products.

The role of the Telemarketers:

Telemarketers can be performed their tasks in order to promote the biogas regarding

when they contact consumers and what they disclose about themselves and about biogas.

For example, if Pakistani government launches are call centers for providing information

to the citizens that will be a good source of providing information about biogas.

Telemarketers are also required to identify themselves with their name, the company they

represent, and a phone number at which their company may be contacted so that the

customer can order the cylinder of biogas or to get full information about that cheap and

quality resource.

Training for Telemarketers:

Communication, customer management, and cross-selling skills are the three essential

components that are possessed by telemarketers when they are describing the customers

about biogas. Sales courses and sales training courses about the methods to sell biogas

are also created to train not only the one-on-one seasoned sales executive or the

ambitious company door to company door new sales person. Telemarketers are sales

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professionals. Sales training and especially about biogas awareness can turn

telemarketers into sales professionals. Courses in biogas awareness for telemarketers can

train a telemarketer how to define biogas or related products in a manner that will

uncover the key buying motives from the potential buyer.

Direct Mail:

Direct mailing campaigns are less visible to competitors – it is therefore possible to be

more creative for the biogas providers. The advertiser can target a promotional message

about the benefits of Biogas down to an individual level, and where possible personalize

the message. There are a large number of mailing databases might be available that allow

businesses to send direct mailing to potential customers based on household income,

interests, occupation and other variables

Businesses can first test the responsiveness of direct mailing (by sending out a test

mailing to a small businesses and domestic users that first they are offered to use biogas

and then based upon their results they can create the more significant cost of a larger

campaign. Direct mailing is based on the “mailing list” – a critical part in the direct

marketing process. The mailing list is created on the base on market research that

includes the mailing addresses of all the customers who want to use Biogas. This creates

a database which collects together details of past, current and potential customers. A

properly managed mailing database for biogas customers enables a business to:

Focus on the best prospective customers

Cross-sell related products

Launch new products to existing customers

The starting point is that the existing information about Biogas is communicated to the

customers. All forms of communication between a customer and the business need to be

recorded so that a detailed, up-to-date profile can be maintained. It is also possible to

“buy” mailing lists from elsewhere. There are numerous mailing list owners and brokers

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who sell lists of names. The Internet, directories, associations and other sources are good

sources.

Company must need to keep its customers database up to date and stay in touch with your

customers every 90 days. Have someone call to his customers every 3 months to update

the details and to get feedback about the quality of Biogas. It even asks from customers

what they think about Biogas and if they have any ideas how to improve it. Take note of

their favorable comments too.

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launching of bio gas in gujranwala

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