PSO Image

Study

Marketing Research

ReportOn

Submitted byMuhammad Shahnawaz

This report contains information that is not to be shared, copied, disclosed or otherwise compromised without the consent of the group.

- 1 -

PSO Image

Study

ACKNOWLEDGEMENT

We are very grateful to our teacher Dr. Akif Hassan for teaching us curriculum of

Marketing Research. His versatile knowledge in marketing field and unique

teaching style has developed our knowledge and cleared many marketing

concepts.

We are all the most grateful to him for assigning this project, which has further

helped us in evaluating many interrelated dimensions of research in marketing

field.

Finally we bestow our thanks to PSO and all the people who has directly or

indirectly supported us with their assistance and guidance to compose this report

and accomplish broader vision to visualize things in marketing Research

concepts.

Group members

- 2 -

PSO Image

Study

TABLE OF CONTENTS

Title Page

Preface 3

INTRODUCTION Background of the Pakistan State Oil 4Background of the problem 13Statement of the problem 19Research problem 20Research hypothesis 21

RESEARCH METHODOLOGY Research design 23Sources of information 24Methods of data collection 25Research instrument 26Sampling technique 27Sample size 28Profile of the respondents 29

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA Findings of the market research 31

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

Summary 50

Recommendations 51

BLANK QUESTIONNAIRE

- 3 -

PSO Image

Study

PREFACE

This report is prepared for the course of “Marketing Research” on Image study of PSO.

In this report we have discussed different aspects of the marketing research and marketing. Other than that we have different findings and figures regarding the opinion of customers. All data and findings are based on the marketing research.

Report also contains the data regarding our research sample and the profile of the respondents.

We had covered almost every aspect of the image study and consumer perception in this research report.

- 4 -

PSO Image

Study

Introduction

History of the company

Pakistan State Oil has come to this stage after 25 years of developments and continuous improvement. The company’s development started from 1974 when

01-01-1974 Federal Government takes over management of PNO (Pakistan National Oil) and DPL. (Dawood Petroleum Limited), renamed into POCL (Premier Oil Company Limited) under marketing of Petroleum Products (Federal Control) Act, 1974.

03-06-1974 Government incorporates "Petroleum Storage DevelopmentCorporation" PSDC.

23-08-1976 Name of PSDC changed to State Oil Company Limited (SOCL).

15-09-1976 Government purchases ESSO Undertakings, vests the same in

SOCL.

30-12-1976 Government merges PNO and POCL into SOCL. (State Oil Company Limited), and named it as, Pakistan State Oil Company Limited. (PSO).

- 5 -

PSO Image

Study

 As the largest oil marketing company of Pakistan, PSO is engaged in the storage, import, distribution and marketing of petroleum products, petrochemicals, Aviation & Bunker fuels, LPG and CNG dominates the country’s fuel and energy need. Since its inception in 1976 the company has been meeting

more than 70% of the country’s fuel needs. PSO’s 3805 outlets all across the country markets more than 12 million tons of fuel products annually. This network is supported by PSO’s 28 storage facilities with a capacity of more than 800,000 tons. PSO took a major step in improving its distribution facilities by acquiring 12% equity in the 800km long Karachi-Mehmoodkot White Oil Pipeline.

As part of PSO’s policy of providing better customer service it has embarked upon its New Vision retail development program. Equipped with the most modern facilities like electronic dispensing units, auto car wash, convenience stores, internet facilities and business centers these state of the art designed stations provide greater customer confidence and a friendlier environment.

As a manifestation of PSO’s greater customer focus a PSO 24hr PSO Customer Service has been launched where customer’s can lodge their queries and suggestions about various PSO products and services.

Along side its retail network PSO is playing an equally important role in the industrial sector. From the locomotives of Pakistan Railways to the giant turbines of power projects, all are fuelled by PSO. Being fully alive to its responsibilities towards the agriculture sector PSO’s 700 strong agency network helps keep the farm machinery running. Further, its kerosene sales are a major source of energy for the rural and lacking gas facilities.

PSO remains equally strong in Aviation and Bunker Sales. PSO has been

- 6 -

PSO Image

Study

constantly upgrading its facilities to serve a wide range of commercial aircrafts. Through a chain of eight Aviation Service Stations scattered all across the country PSO fuels the aircrafts of many local and international airlines. Acquisition of new Lahore Terminal Complex at the Lahore International Airport has enabled PSO to serve the busiest corridor of East/West bound flights benefiting the airlines in shape of time saving and lesser fuel burn off. While it’s bunkering facilities at all the major ports of country fill up the ocean liners of many nationalities facilitating the nation’s international trade.

In its endeavor to provide quality lubricants, PSO has formed an alliance with world-renowned company Castrol whose products are manufactured at PSO’s own ISO 9000 certified facilities ensuring the highest quality standards for both retail and industrial sales.

More cordial relationship with its dealers is one of the important objectives of PSO’s New Vision programme. To give them a sense of participation PSO has instituted “Top Dealer Awards” and “Million Liter Awards” whereby efforts of the high performing dealers are recognized.

Emergence of Health Safety & Environment (HSE) as the corner stone of PSO’s corporate governance testifies to its commitment to environmental protection. Complete HSE certification of all its facilities and installations is one of its major goals for the coming months which are being vigorously pursued.

- 7 -

PSO Image

Study

Current position

Financial & Operational Highlights of the year: 1999-2000

All time record sales revenue of Rs.135 billion, ($2.10 billion) up 17% over prior the year

Growth of 5% in its sales volume that touched 12.7 million tons

Profit before tax of Rs.3.6 billion ($ 56 million); up 7% over prior year

Highest ever cash dividend of 100% Rs.1.4 billion

Successfully took over the fuel oil imports from the Government of Pakistan

Signed long term product off-take agreement with Pak Arab Refining Company (PARCO).

Ranked as No.1 performing company in Pakistan by Karachi Stock Exchange received award for the 16th consecutive year.

Board of Management reconstituted by Government of Pakistan; principles of corporate governance established.

- 8 -

PSO Image

Study

HEALTH, SAFETY & ENVIRONMENT POLICY

Pakistan State Oil Company Limited will ensure that

The health of its employees, its contractors, its customers and the public is protected.

All its activities are carried out safely.

Environmental performance meets legislative requirements.

To implement HSE Policy, Pakistan State Oil Company Limited will

Comply with relevant laws and regulations.

Ensure that required Health, Safety and Environment Standards and Procedures are developed and established

Ensure that all its activities are carried out in accordance with Company's Health, Safety and Environment Standards and Procedures.

Set demanding targets and measure progress to ensure continuous improvement in Health, Safety and Environment performance.

Require every employee to exercise personal responsibility in preventing harm to themselves, to others and to the environment.

Provide appropriate Health, Safety and Environment training / information to all employees, contractors and others who work with the company

- 9 -

PSO Image

Study

Ensure provision of safe working environment.

Promote awareness and give due recognition to performance in the area of Health, Safety and Environment.

PSO's Network

PSO's network of outlets and other facilities comprehensively covers Pakistan - from the bustling metropolis of Karachi and Lahore to the mountain valleys of Chitral and Gilgit. Our coverage includes privately and company owned outlets guaranteeing our market share and profitability.

Product movement will play a vital role in strengthening Pakistan's economic development. With the burgeoning demands of the Power generation sector, enhancement of existing facilities and development of new infrastructure - especially pipelines, which are the safest, efficient & most environment friendly mode of transportation, takes top priority.

Pakistan Railway also has to be geared for moving more products upcountry. This is very important to reduce the pressure on road movement.

Listed below is a summary of our product movement network:

Numbers

- 10 -

PSO Image

Study

Tank Lorries 13400Railway Tank wagons 1120Pipelines  13

(172.68 km, between 6"to 42" dia.)

- 11 -

PSO Image

Study

Management profile

The federal Government has constituted the Board Of Management (Oil) to control, manage and direct affairs of the Company; whereas the direct management is vested in the Managing Director who exercises and performs all the powers and function of the Board Of Directors of the Company.

Human Resources - Our Greatest Asset

Total Strength as of 01/07/1998

2795

Bargainable employees

1830

Management Staff

965 

The Company has maintained the tempo of achievements through whole hearted commitment & hard work of its Human Resources and full support of its dealers / agents and customers. PSO is one of the top 25 companies as the recipient of TOP 25 Companies Award every year, for the last 13 consecutive years. PSO is the only company from Pakistan, which is being listed as one of the Top- 1000 companies in Asia (as per Asia Week Magazine).

All these attributes endorse one thing; grow with grace and sound earnings, along with all those associated with PSO, i.e. its customers, business partners,

- 12 -

PSO Image

Study

manpower and share holders. This has been the greatest asset of the Company's Management, able guidance from its Board of Management (Oil), Ministry of Petroleum & Natural Resources, and from all cadres putting in combined efforts with commitment with excellence.

PSO & Continuous Growth

PSO is the largest of the three marketing companies in Pakistan; it has consistently maintained an edge over its competitors Shell and Caltex. With an overall market participation of over 72% in 1997-98 it sold 6.244 million tonnes of petroleum products during the half year ended 31st December 1999 against 5.633 million tonnes sold during the corresponding period last year, showing an increase of 10.8%.

Continuous Growth

PSO continues to expand its physical, technical and marketing resources to meet the requirements of the country. To keep pace with growth PSO has maintained International Collaborations to import latest technology, they are:

I. Castrol (UK)   Blending and marketing of lubricants in Pakistan.

II. Air Total (France)    Technical & commercial agreements in Aviation Services & technology.

- 13 -

PSO Image

Study

III. Exxon Chemicals (Singapore)     Petro chemicals business & technology.

Privatization of PSO

Privatization of PSO is underway whereby JP Morgan’s financial advisory consortium is assisting the Government of Pakistan in the privatization process. They have undertaken the initial due diligence including financial and regulatory issues and subsequent to which the interest of the potential investors in the transaction will be solicited

- 14 -

PSO Image

Study

Background of the problem

The company maintained its strong focus on New Vision Retail Development Programme and expanded the network to 343. During July –Dec 2001, 10 CNG facilities were commissioned brining the total to 36 while Lube shop network expanded to 74. The company embarked on an ambitious program to promote the Internet specifically in inaccessible areas all over Pakistan. Total 500 retail outlets are being provided with Internet facility out of which 150 are already covered. With strong media support, new lubricant grades like Castrol GTX-XL, Castrol CR 40 Plus and PSO CNG oil were introduced. Various successful sales promotion campaigns have been launched to further improve the brand image of the company.

In order to have assured long-term cost-effective supplies the company signed a 10-year sale and purchase agreement with NRL while negotiations with KPC for HSD premium for the first half of FY-2001 concluded successfully. In an effort to efficiently distribute Mogas and HSD to retail outlets, the company acquired 16 new tankers equipped with satellite tracking system for Karachi and gradually major cities and towns will be fed through company tank lorries. The company has been successful in achieving ISO 9000-2000 distinction for its six terminals while operations at other installations and depots are being standardized to qualify for ISO certification.

Given the resolution of outstanding stuck up claims with upward revision in OMCs margins and complete deregulation of POL products i.e. free from price control combined with the strategic initiatives undertaken by the company, your company is well positioned to face the challenges of impending deregulation and maintain its leadership in the downstream sector.

- 15 -

PSO Image

Study

Customer intimacy provides to senior management a new vision of the future, a strategy which is realistic and implementable. Marketing and sales personnel will have the opportunity to build profoundly meaningful relationships with selected key customers. Customer satisfaction and intimacy offers a great challenge to human resource professionals of the PSO, who have the challenge to integrate supplies. This is required for customer intimacy to work and a most sensitive challenge.

To deliver results consistently, requires a great commitment. It requires all the imagination, initiative, empathy and dedication a company can create. Along side its retail network PSO is playing an equally important role in the industrial sector. From the locomotives of Pakistan Railways to the giant turbines of power projects, all are fuelled by PSO. Being fully alive to its responsibilities towards the agriculture sector PSO’s 700 strong agency network helps keep the farm machinery running.

Further, its kerosene sales are a major source of energy for the rural and lacking gas facilities. Customer-intimate managers, understand that each customer's needs are unique and an opportunity is available to deliver a unique solution as well. In business a promise is a commitment, to accomplish something. In a customer-intimate company, a promise becomes something very special.

Results promised must be results you will deliver, at all costs. This is the intricacy of customer intimacy. Customer intimacy also requires a different approach, to cultivating and managing business-to-business relationships. PSO continues to expand its physical, technical and marketing resources to meet the requirements of the country.

To keep pace with growth PSO has maintained International Collaborations to import latest technology, they are:

Castrol (UK) Blending and marketing of lubricants in Pakistan

- 16 -

PSO Image

Study

Many business managers keep their suppliers at arm's length, pitting vendor against vendor in search of temporary advantage. Intimacy, demands a better way of treating suppliers.

- 17 -

PSO Image

Study

- 18 -

PSO Image

Study

The new logo of the company was designed with refreshing colors After all these developments and improvements has been done in the operationsManagement style:

The outlook of pumping station has been changed. The services has been improved and extra services (automatic car service, email, telephone) offered by the PSO pumps. Question arise in the minds of the PSO management that “Does the PSO has improved its image”? In order to find out this research has been conducted in all the areas of Karachi.

- 19 -

PSO Image

Study

Background Problem is Customer intimacy

Being a local organization the people’s perception about the PSO is not very good. The majority of consumers of Pakistan thought that the multinational organizations are good and they have fantastic services to offer in the industry. It’s not the matter of satisfaction they are getting from the organizations it’s more on the field of friendship or intimacy of the organization with their customers. Customer satisfaction means you are doing OK, but alone it is not adequate in a fiercely competitive business environment, where your competitors are waiting to grab your customers for good.

Especially in the petroleum industry where there is no product differentiation. What it requires is taking responsibility for customers' performance, by staunch solidarity and exchange of useful information. Critics of customer intimacy are of the view, that customer-intimate companies are merely baby-sitting their customers and are blurring real and useful distinctions between suppliers and buyers. Neither of these criticisms are true. Customer intimate companies discover how to provide complete solutions to customer needs rather than simply attempting to satisfy customers.

By providing complete solutions, customers and suppliers, become indispensable partners, and suppliers take a major stake in their customers' success. When two organizations move from a simple buyer-supplier relationship to the overall complexities of a customerintimate relationship, the unique responsibilities of each partner become quite clear and understood. Each partner develops a new business mindset, resulting in new ways of conducting business.

- 20 -

PSO Image

Study

Customer intimacy is very essential for an organization like PSO, who is looking to secure a competitive advantage. Customer intimacy is the only way to compete against these larger resourceful multinational organizations like Shell, Caltex.

For the multinational, large and resourceful organizations, customer intimacy offers a surefire way to long-term success, because of their origin of existence as an advantage.

Traditionally people or management thought that customer satisfaction or customer intimacy is just for the marketing people. But now we said customer intimacy is for everyone in an organization, irrespective of functional and operational differences.

- 21 -

PSO Image

Study

Statement of the problem

The changes are taking place in the market continuously at the global and national level. In order to deal and compete with these changes you need to up-to-date yourself in every aspect of the business, like customer preferences, perception, competitor’s move, and the technological changes

The problem situation arises at PSO after the changes they had made in their system. PSO has done overhauling of its system and now they want to know the response of the consumers in respect of the changes they have made. They are interested in knowing that what customers think of PSO in terms of services and products both. For this purpose they are conducting a marketing research.

Future strategies of the PSO will be based on the results of the research.

- 22 -

PSO Image

Study

Research problem

“Does the PSO has improved its image after the establishments of new vision and revolution in its outlets”

- 23 -

PSO Image

Study

Research Hypothesis

We assumed that the pso has gained the reputation and improved its image. PSO has been gaining mind share of the consumer since these developments and changes are taking place in the company. The consumer’s response to these changes is positive.

- 24 -

PSO Image

Study

Research Methodologies

- 25 -

PSO Image

Study

Research Design

Research design is about how to get what we have just decided we need to get. Research design has several levels. In a broad sense it is about the philosophy of how to approach the problems of finding out about the things.

There are the marketing problems and the research problems to consider. But the problem of how to do the research well is also critical if we are to address those marketing and research problems.

The research design we are using is descriptive research. The reason for choosing this method that we need to describe the matter at hand with more precision in more qualitative and quantitative terms. We have the ideas now the understanding of different viewpoints, trends. It is time for some numbers to verify that what we think (research hypothesis) we now know is actually true. One common focus of descriptive research is to describe characteristics of certain groups.

The groups may be people, consumers. The marketing manager could ask for a profile of the fuel consumption patterns of the Karachi drivers and owners of cars.

Another common use of descriptive research is to estimate the proportion of customers in the population those who are using different types of fuel.

A common use of the descriptive data is to make predictions about the future.

- 26 -

PSO Image

Study

Sources of information

Source of information is the Personal source

We are not using secondary source of information. We are getting data from the personal sources. We are delivering questionnaires to the individuals personally and get them filed. Our main objective of the study is to see the perception of the people about the PSO.

For such type of the problem it is necessary to have an independent opinion from the respondents. It should be free of any influence and biasness of the researcher. That’s why we have chosen this source of information.

- 27 -

PSO Image

Study

Data collection methods

Data collection method is Survey method.

Survey method is self-administered by the respondents. In surveys respondents complete their questionnaires without any influence of the researcher at their own convenience.

In order to have a better and fair result we have choose this method because the respondents have more independence in this method than other methods. The problem of biasness is less than personal interviews and telephone surveys. The type of the research problem we have is related to the consumer behavior. It is appropriate to give independence to the consumers for getting information.

In this method first we have delivered the questionnaires to the respondents after giving them certain time (at their own convenience), we got filled questionnaires back.

That‘s how we got the information by this method.

- 28 -

PSO Image

Study

Research Instrument

The research instrument is Questionnaire. The questionnaire is a semi flexible and structured approach is basic to all research instruments which involve questioning.

This instrument has predefined variable in it about the specific response. Answers that result from any question may reflect what the respondent really thinks about an issue. The task of questionnaire construction is to make sure that answers do reflect respondents feeling as much as possible. But answers also depend upon on how questions are asked and an important part of how they are asked is tied up with the scale used in the question.

Quantitative data are not all alike in terms of their quality or the amount of information that they carry. Some numbers carry great deal of information. Different scales are used in the questionnaire include:

Multiple choice questions Likert scale Horizontal numerical scales Semantic differential scales Verbal frequency

- 29 -

PSO Image

Study

Sampling Technique

Convenience sampling technique is used in this research. It’s a very major technique in non probability sampling. Not every one in the population has an equal chance of being in the sample. In this technique the respondents distinguished by the fact that people get into the sample depending on where they happen to be at the time that the sample is taken.

Convenience samples were not drawn by random methods, but they are very frequently used. It is quite reliable and quite valid. There are many good reasons for gathering them not the least of which is that they can be quite convenient and easy to gather.

- 30 -

PSO Image

Study

Sample size

Sample size is 100 respondents. Determine sample size is very important issue. In a qualitative sense there are a number of guidelines for this which depends on survey objectives and methods. Generally any time marketing manager needs very precise estimates of values, large samples are needed. But in many cases the rough estimate is sufficient. If the decisions are smaller in nature the benefits of higher precision may not the worth of getting high precision.

- 31 -

PSO Image

Study

Profile of the respondents

The basic criteria for respondents that they are the driver of car or motorcycle

Age: 18 years and above

Gender both

Income: doesn’t matter

City Karachi

- 32 -

PSO Image

Study

Analysis & Interpretation of Results

- 33 -

PSO Image

Study

Type of the vehicle mostly driven

12

19

27

22

8

6

6

Motor Bike

800cc Car

1000cc Car

1300cc Car

1500cc Car

1600cc Car

Higher than 1600cc Car

Count

Type ofVehicle mostlydriven

Out of our 100 respondents the:

27% of the respondents have 1000cc cars 22% of the respondents have 1300cc cars 19% of the respondents have 800cc cars 12% of the respondents are drivers of motorcycle or bikes 8% of the respondents those who have 1500cc cars

6% of the respondents have 1600cc cars

6% of the respondents have above than 1600cc cars

Type of Vehicle mostly driven CountMotor Bike

800cc Car

1000cc Car

1300cc Car

1500cc Car

1600cc Car

Higher than1600cc Car

- 34 -

PSO Image

Study

Type of fuel

73

10

17

Petrol

Diesel

CNG

Count

Type of FuelMosly Used

The majority of our respondents are users of the petrol.

73% of the respondents are users of Petrol 17% of the respondents are users of the CNG 10% of the respondents are users of Diesel.

Type of Fuel Mosly Used Count

0

20

40

60

80

Petrol Diesel CNG

Type of FuelMosly UsedCount

- 35 -

PSO Image

Study

Fuelling Brand

46

30

24

Shell

PSO

Caltex

Count

consumersUsually gofor Fuelling

The majority of our respondents are customers of the Shell:

Out of our 100 respondents 46% get fuel from Shell. 30% get fuel from PSO. The Caltex customers are 24% among are respondents.

The shell has more market share in Karachi especially in porch areas like Clifton, Defense and Tariq road

- 36 -

PSO Image

Study

consumers Usually go for Fuelling Count

Shell

PSO

Caltex

The pso has more market share in other areas of the Karachi and country.

sLocation of frequently visited petrol pump

12

13

3

6

1

5

1

2

21

4

1

9

22

No Response

Phase 4 Defense

Express Way

Gulshan -e- Iqbal (DriveIn)

Gulshan -e- Iqbal B-16

Behria

Mughal Darbar

Tariq Road

Shara Faisal

Rashid Minhas Road

Gulistan e Juhar

F B Area

clifton

Count

Location of petropump usually visited

Mostly the consumers are visiting the petrol pumps near their residence or where ever they thought it’s convenient. Most of the residents of areas like Defense and Clifton the consumer get fuel from the petrol pump which is nearest to their home.

- 37 -

PSO Image

Study

clif ton

F B Area

Gulistan e Juhar

Rashid Minhas Road

Shara FaisalTariq Road

Mughal Darbar

Behria

Gulshan -e- Iqbal B

Gulshan -e- Iqbal (

Expres s Way

Phase 4 Defense

No Res ponse

Reason for going to a particular pump

Out of our 100 respondents majority has given 4 reasons for going to the particular pump.

75 respondents have chosen the reason for going to a particular pump is because of convenience. There are other major reasons got responses:

they are satisfied with the quality of the pump’s fuel (45points) they are satisfied with the quantity (41points) they got best services on the pump (41points)

So we can say that the customer’s selection criterion is mainly depending on the above stated three reasons.

There are other factors involved in the selection like outlook or extra services but those factors are secondary to the above stated four factors.

- 38 -

PSO Image

Study

25 58 75 63 54 58 89 99

75 41 25 36 45 41 10 1

1

.0

Yes

10.0

Count

Going toPetrol Pump because of Convenience

Count

Going toPetrol Pump because of

Better Service

Count

Going to PetrolPump becauseof Courteous

Staff

Count

Going to PetrolPump because

of PumpCondition

Count

Going toPetrol Pump because of

Better Quality

Count

Going toPetrol Pumpbecause of

Better Quantity

Count

Going to PetrolPump

because of Convenience

Store

Count

Going toPetrol Pump because of

Other Reasons

- 39 -

PSO Image

Study

Switched petrol pump in the recent past

75 of the respondents said no they haven’t switched their brand. 25 respondents have switched their brands. Out of those 25 respondents

8 respondents have switched from Shell to PSO, 4 From Caltex to PSO

So we can say 50 % (12 is 50% of 25) of the switching is from other brands to PSO. Ii implies that the PSO is gaining market share and creating new opportunities.

1

8

4

4

1

4

3

75

.00

Shell To PSO

Shell To Caltex

PSO To Shell

PSO To Caltex

Caltex to PSO

Caltex To Shell

Not Switched

Count

SwitchedPetrol

Pump inthe

recentPast

Switched Petrol Pump in the recent Past Count

0

Yes

Shell To PSO

Shell To Caltex

PSO To Shell

PSO To Caltex

Caltex to PSO

Caltex To Shell

Not Switched

- 40 -

PSO Image

Study

Ranking of the three brands

.

1 1 1

51 30 17

33 33 34

15 36 48

.0

1

2

3

Count

Preferencefor Shell

Count

Preferencefor PSO

Count

Preferencefor Caltex

In the ranking or grading of the all three brands the shell got the highest score as no # 1 brand. Shell graded as no 1 by 51 respondents and the PSO and Caltex graded as no # 1 by 30, 17 respondents respectively For the 2nd position all three brands got the equal score

The graph is representing the score components of all three companies in each category.

0

20

40

60

80

100

120

0 1 2 3

Preference forCaltex Count

Preference forPSO Count

Preference forShell Count

- 41 -

PSO Image

Study

Reasons for trying new petrol pump

83 63 92 96 61 58 96

17 36 8 4 39 42 4

.0

Yes

Count

Switchedbecause

there is NoDifference

betweenPetrol Pumps

Count

Switchedbecauseof bad service

Count

Switchedbecauseof Lucky

Draws

Count

Switchedbecauseof freegifts

Count

Switchedbecause oflack of trust

in quality

Count

Switchedbecause oflack of trustin quantity

Count

Switchedbecauseof otherreasons

In this question we have provided the list of reasons for switching the petrol pump.

The three main reasons for switching come out after analyzing the responses: The first one is lack of trust in quantity (42 points) Second is lack of trust in quality (39 points) Third main reason is bad service (36 points)

So another reason which does not score very high but its considerable is there is no difference in patrol pumps that’s why people switch petrol pumps. It’s true up to some extent but it’s not the reason in most of the cases.

- 42 -

PSO Image

Study

Comparison of PSO with Shell

The table is presenting facts on the comparison of the PSO with Shell on different attributes.

4 7 7 6 5 10 7

29 27 28 24 21 18 29

44 47 45 47 49 56 42

23 18 20 22 25 15 22

1

No Response

Better

Same

Worse

Count

Staff Behaviour as comparewith Shell

Count

ConvenienceStore as

compare withShell

Count

Petrol pumpcondition as compare with

Shell

Count

Quality ofpetrol as compare

with Shell

Count

Quantity ofpetrol as compare

with Shell

Count

Lubricant as

comparewith Shell

Count

Overall service as compare

with Shell

Almost in all the attributes PSO got a better score than the Shell or got the same score as Shell. But if you look at the worst scores they are also in a substantial amount so it may possible people think both as same but they are not the same at all the attributes.

The worse score is more than better in the case of the quantity of fuel people thought they are not giving right quantity. The reason behind this factor is the old non-digital pumps because of that people are not still sure of the right quantity at PSO. The PSO got a bigger worse score on services that mean people think that the services of the PSO are not as good as Shell.

- 43 -

PSO Image

Study

Comparison of PSO with Caltex

The table is representing the scores of the comparison of PSO with Caltex.

4 7 8 7 6 5 5

34 35 34 29 35 35 35

49 48 43 48 42 50 44

13 10 15 15 15 10 15

1 1

1

1

No Response

Better

Same

Worse

Count

Staff Behaviour

as comparewith Caltex

Count

Convenience Store as

comparewith Caltex

Count

Petrol pumpcondition as

comparewith Caltex

Count

Quality ofpetrol as compare

with Caltex

Count

Quantity ofpetrol as compare

with Caltex

Count

Lubricant as

comparewith Caltex

Count

Overall service as

comparewith Caltex

The majority of the respondents respond positively in this comparison. The better scores are higher than the worse scores.

- 44 -

PSO Image

Study

Response of the customers in respect of new vision scheme

21

54

10

14

No Response

Positive

Negative

Netural

Count

Effect of Change

Made by Pso

The 54% of the respondents respond positively and said welcome to the changes. Most of them said it’s a sign of improvement in national organization and it’s good. 14 % of the respondents said it’s normal they have to change themselves right now otherwise pso will be no more in the market.

Only 10% said PSO is just copying the competitors and following them.

Effect of Change Made by Pso Count

No Response

Positive

Negative

Netural

- 45 -

PSO Image

Study

- 46 -

PSO Image

Study

Personal data of the respondents

Gender

83

17

Male

Female

Count

Gender of Respondents

The majority of our respondents are males (83% of our respondents are males).

Only 17% of the respondents are females. It’s because of small no of female drivers in our society.

Gender of Respondents Count

Male

Female

- 47 -

PSO Image

Study

Age

7

71

11

7

4

18 - 20 Years

21 - 30 Years

31 - 40 Years

41 - 50 Years

51 Years and above

Count

Age of Respondents

Our respondents are belongs to all age categories of the research. We have taken respondents from all age groups in order to have comprehensive information on the problem. 74 % of the respondents belong to 21 to 30 years age group. The pie chart is showing the different age group of the respondents.

Age of Respondents Count18 - 20 Years

21 - 30 Years

31 - 40 Years

41 - 50 Years

51 Years andabove

- 48 -

PSO Image

Study

- 49 -

PSO Image

Study

Family’s Average Monthly Income The people from different income categories have different perceptions about the companies because of that we took respondents from all the income categories.

19

14

16

15

30

Below 11,000

11,00 - 20,000

21,000 - 30,000

31,000 - 40,000

41,000 - 50,000

51,000 and above

Count

Average HouseholdIncome of

Respondentsin Rs

The average family’s monthly income of our respondents is ranges from almost Rs.10, 000 to Rs.51, 000 and above. We have respondents from all income categories

30% of our respondents belong to the income category Rs. 51,000 and above.

19% of the respondents belong to Rs. 11, 000 – 20 ,000 income category 16% of the them are from Rs. 31 ,000 – 40, 000 income category 15% of the them are from Rs. 41,000 – 50,000 income category 14% of the them are from Rs. 21,000 – 30,000 income category

The pie chart is presenting the different income categories in a summary form.

Average Household Income of Respondents in Rs Count

Below 11,000

11,00 - 20,000

21,000 - 30,000

31,000 - 40,000

41,000 - 50,000

51,000 and above

- 50 -

PSO Image

Study

Area of residence

More than half of the respondents (52% of the respondents) are from three areas 22 respondents are from Clifton 21 respondents from Defense11 respondents from Gulshan-e-Iqbal Another major chunk (28% of the respondents) covered by others option. It includes all areas adjacent to the Shara-e Faisal and other small areas.

21

22

7

11

10

28

Defence

Clifton

Tariq Road

Gulshan-e-Iqbal

Nazimabad

Others

Count

Area of Resident

Area of Resident Count

Defence

Clifton

Tariq Road

Gulshan-e-Iqbal

Nazimabad

Others

- 51 -

PSO Image

Study

Brands versus family’s average monthly income

In this cross tabulation we are analyzing the customers of all three brands with their family’s average monthly in come. We want to find out that is there any relationship between the different brands and income of its customers.

The table shows that the Shell has more high income category (51,000 and above) customers than PSO, and Caltex. PSO has the second highest no of customers in almost all the income classes

2 9 5 11 4 15

2 2 7 3 7 9

2 8 2 2 4 6

Shell

PSO

Caltex

Count

consumersUsually gofor Fuelling

Below11,000

Count

consumersUsually gofor Fuelling

11,00 -20,000

Count

consumersUsually gofor Fuelling

21,000 -30,000

Count

consumersUsually gofor Fuelling

31,000 -40,000

Count

consumersUsually gofor Fuelling

41,000 -50,000

Count

consumersUsually gofor Fuelling

51,000 andabove

Average Household Income of Respondents in Rs

- 52 -

PSO Image

Study

Area of residence versus Brands

Area of residence is also influences the choice of the petrol pump brand. Table is presenting the cross of both the factors. It shows that in Defense and Clifton customers give more preference to Shell over PSO and Caltex.

Out of 43 respondents of defense and Clifton 24 respondents are customers of Shell. 10 of them are customers of PSO and 9 are customers of Caltex.

In these areas more educated class is living those who are more influenced by their perception. So in these areas shell has the major chunk of customers because of their excellent services.

10 4 7

14 6 2

4 2 1

4 3 4

5 3 2

8 12 8

1

Defence

Clifton

Tariq Road

Gulshan-e-Iqbal

Nazimabad

Others

7.0

Count

Area of Resident

Shell

Count

Area of Resident

PSO

Count

Area of Resident

Caltex

consumers Usually go for Fuelling

- 53 -

PSO Image

Study

Relationship between area of residence and convenience

Most of the customers have convenience is the reason for going to any particular petrol pump. Especially in Clifton and Defense customers usually preferred to go to the petrol pump which is convenient.

6 5 2 3 4 5

15 17 5 8 6 23 1

.0

Yes

Count

Going toPetrol Pump

because of Convenience

Defence

Count

Going toPetrol Pump

because of Convenience

Clifton

Count

Going toPetrol Pump

because of Convenience

Tariq Road

Count

Going toPetrol Pump

because of Convenience

Gulshan-e-Iqbal

Count

Going toPetrol Pump

because of Convenience

Nazimabad

Count

Going toPetrol Pumpbecause of

Convenience

Others

Count

Going toPetrol Pump

because of Convenience

7.0

Area of Resident

- 54 -

PSO Image

Study

Preference of PSO, Shell and Caltex

The following table shows that the rating for all three brands.

Preference for Shell

321.0

Coun

t

60

50

40

30

20

10

0

Preference for PSO

321.0

Coun

t

40

30

20

10

0

Preference for Caltex

321.0

Coun

t

60

50

40

30

20

10

0

- 55 -

PSO Image

Study

Summary of findings

The summary of this research is that the PSO has improved its image and its perception in the eyes of the consumer. Most of the respondents have given the positive opinion about the changes and new vision scheme of the PSO. The respondents said the PSO should improve its services. They should improve the outlook of the pumps in other areas except Karachi. It is satisfactory in the Karachi.

The simple but radical commitment of customer intimacy by PSO is needed to deliver results. Companies that truly love their customers know that their customers don't buy a product or service. What they buy is a bundle of benefits. The greater the benefits the more product or service is purchased, resulting in a mutually satisfying position for both customer and PSO.

To deliver results consistently, requires a great commitment by the management and staff of the PSO. It requires all the imagination, initiative, empathy and dedication PSO can create.

Most of the respondents said that they don’t have efficient staff and their services are not of good quality.

The company maintained its strong focus on New Vision Retail Development Programme and expands its network.

- 56 -

PSO Image

Study

Recommendations

We are recommending these strategies after gone through the questionnaires and analyzing the research results. The following recommendations are based on the research.

PSO should act upon these things.

Just be a good service provider Improvement in Quantity and quality More friendly service Service needs to be more faster Come up with a unique promotional schemes Courtesy and cooperation at the outlet should increase Increase in customer services New efficient and trained staff Improve the lubricant’s quality Start collecting utility bills Improvement in staff attitude New vision scheme should be implement on all the outlets They should increase no of pumps Availability of CNG should be improved They should improve the quality of the fuel Differentiate your services as compare to your competitors Work for the betterment of the society

- 57 -

PSO Image

Study

1. Which type of vehicle do you mostly drive?

Motor bike

800cc car

1000cc car

1300cc car

1500cc car

1600cc car

higher than 1600cc car

2. Which type of fuel is mostly used in your vehicle?

Petrol

Diesel

CNG

3. Where do you mostly go for fuelling your vehicle? Shell

PSO

Caltex

4. Please specify the location of the petrol pump where do you mostly go for fuelling?

5. Why do you go to this pump for fuelling? it is near my home/ convenience

provide better services

courteous staff

better petrol pump condition

provide better quality fuel

provide right quantity

convienience sore

others (please specify)-----------------------

- 58 -

PSO Image

Study

6. Have you switched petrol pump in the recent past?

Previously using----------------------currently using-------------------.

No, I have not switched

7. What would be the reason for you to try a new petrol pump? No difference between petrol pump

Bad service at the old pumps

Lucky draws

Free gifts

Lack of trust in quality

Lack of trust in quantity

Others (please specify)--------------------------------

8. Based on your preference for fuelling vehicle rank the following on the scale of 1-3? Shell

Pso

Caltex

9. How do you compare the PSO with Shell in terms of following? (Tick only one in each case)

Staff behavior Better Same Worse Convenience store Better Same Worse

Petrol pump conditions Better Same Worse

Quality of petrol Better Same Worse

Quantity of petrol Better Same Worse

Lubricant Better Same Worse

Overall service Better Same Worse

- 59 -

PSO Image

Study

10. How do you compare the PSO with Caltex in terms of following? (Tick only one in each case)

Staff behavior Better Same Worse Convenience store Better Same Worse

Petrol pump conditions Better Same Worse

Quality of petrol Better Same Worse

Quantity of petrol Better Same Worse

Lubricant Better Same Worse

Overall service Better Same Worse

Pso has begun implementation of the new vision scheme replacing the decade’s old attire with new logo refreshing color combination and structural design changes into pumps (quick lube change, shop stop, tyre shop, CNG facility, service station/ car wash, internet facility).

11. So what do you think about the changes made by PSO?(please specify):

12. Please give your recommendations for bringing improvement in petrol pumps?

13. Gender? Male

Female

14. Age? 18 years – 20 years

21 years – 30 years

31 years – 40 years

41 years – 50 years

- 60 -

PSO Image

Study

51 years and above

15. What is your family’s average monthly income in Rs.? Below 11,000

11,000- 20,000

21,000- 30,000

31,000- 40,000

41,000- 50,000

51,000 and above

16. What is your area of residence? Defense

Clifton

Tariq Road

Gulshan-e-Iqbal

Nazimabad

Others (please specify):-------------------

- 61 -