saqib report(1)

COMSATS Institute of Information Technology

COMSATS Institute of Information TechnologyRaiwind Road, Off Defense Road. Lahore

Pakistan State OilPSO House Lahore, Gain Mandar

Muhammad Saqib MurtazaMBA-FA08-092

Dated 3 September 1, 2009

Madam Rubina AslamLecturer CIIT Lahore

PSO Internship Report 1

Internship Report

Pakistan State Oil Ltd

Submitted By: Muhammad Saqib Murtaza Mba-fa08-092

Submitted To: Madam Rubina Aslam Lecturer CIIT Lhr

Muhammad Saqib Murtaza


To Allah,My Mom

&My love

Who were always there with me



Acknowledgments

I was not alone. Anil Kumar (Karachi) was the first person to call me about my internship approval. He guided me and helped me a lot. I was referred to Business Manager Mr. Mansoor Ismail In Lahore. Now here comes the name of DPT BMR Mr. Ch Rafique Ahmed, who was to run the whole program. He reffered me to all the departments to fulfill the who functions of rotaion in the organization.

Cards Department

Manager Cards Mr. Akram Chahal Of cards was more supportive and appreciative than all. Under his guidingMr. Hassan Chaudry Senior Sales OfficerMr. Abdullah(Bhai) Senior Sales OfficerMr. Bilal Maqsood Sales OfficerMr. Shahzad Sales Officer (Special task)Mr. Asim Shah Sales Officer

Operations Department

Manager Operations Mr. NasirMr. Khwaja Haris Senior Executive OperationsMr. Qamar Central zonal Engineer (Special motivation)Mr. Kafiat ullah Abid Executive OperationsMr. Ali Rehan Field Engineer (Machike)Mr. Furqan Field Engineer (Machike)

Retail Department

Business Manager Mr. Mansoor Ismail Always with Ch. Rafique sahib DBMrMr. Nadeem Shameem DBMrMr. Asif MashwaniMr. Imran Farooq

MQTUMr. Tahir ShahMr. SaqibHow can I forget my favorite Mam. Madam Rubina Aslam, without his support and cooperation it was never possible.Lots of thanks to lower staff.



Table of Contents

1. Abbreviations……………………………………………………6

2. Executive Summary…………………………………….………7

3. Introduction….………………………………….………………..8

4. Company Introduction…....……………………………………11

5. Departmental Introduction5.1 Cards Department……………………………………….…..145.2 Operations Department….……………………………….….215.3 HSE….…………………………………………………….…..235.4 MQTU.……………………………………….........................265.5 Industrial Consumers.………………………………………..285.6 Retail Department.……………………………………………31

6. Projects......……….…………………………………………….36

7. Competitor Review...…………………………………………..38

8. Company SWOT……………………………………………….40

9. Suggestions...……..…………………………………………...41

10. Glossary.………………………………………………………42

11. Annexure.……………………………………………………..43

12. Bibliography….………………………………………………..50



Abbreviations

CF Company Financed Chevron Calterx LtdCO-CO Company Owned-Company OperatedCNG Compressed Nitrogen Gas CRM Customer Relationship Management

DBMr Deputy Business Manager DF Dealer FinancedDisCO. Distribution Companies

E-10 10% Ethanol

FBP Final Boiling PointFBR Federal Board of RevenueF/S s Filling Station (Petrol Pump)

GST General Sales Tax

HCY Half Current YearHFY Half Fiscal YearHOBC High Octane ButaneHSD High Speed DieselHSE Health & Safety EnvironmentHSFO High Sulphor Furnace Oil

IBP Initial Boiling Point IC Industrial ConsumersIDPs Internal Displaced PeopleIPPs Independent Power ProducersISO International Standard Organization

JP Jet PetroleumKPI Key Performance Indicators



LPG Liquid Petroleum GasLSFO Light Sulphor Furnace OilLUBE Lubricants

LPS Late Payment Surcharge

NCR Non Confirmation ReportNRL National Refinery Ltd

PARCO Pak Arab Refinery CompanyPMG Petro Moto GasPOL PetroleumPOST Point of Sale Terminal (Cards swipe)PSO Pakistan State Oil

QFY Quarter Fiscal YearQMS Quality Management System

ROCs Receipt of Charges RON Research Octane Number

SAE Society of American EngineersSAP SKO Superior Kerosene OilSOPs Standard Operating ProceduresSSO Senior Sales Officer

VIS Vehicle Identification System



Executive Summary

I have done my summer internship regarding MBA in Pakistan State Oil Ltd. In PSO House Lahore I had moved through different departments of the whole organization.In the start the vision was to explore the diversities of marketing but as I entered the organization the facts and procedures were so interesting that my aim changed and my sense of curiosity forced me to move towards them. During my stay I went through different concerned places and sites. The departments I worked in were; Cards Department, Retail Department, Operations Department, HSE and MQTU.The stay was also full of Sales meetings, Workshop on awareness of ISO 9001-2008, Workshop on Effective Leadership. Luckily the first visit of new MD was also in my presence and it was too a tremendous pleasure.



Introduction



Vision

To excel in delivering Value to customers as an innovative and dynamic energy company that gets to future first.

Mission

Committed to leadership in energy market through competitive advantage in providing the highest quality petroleum products to our customers, based on:

Professionally trained, high quality, motivated work force, working as a team in an environment which recognizes and rewards performance, innovation and creativity, and provides for personal growth and development.

Lowest-Cost operations and assured acess to long-term and cost-effective supply sources.

Sustained growth in earning in real terms.

Highly ethical, safe, environment friendly and socially responsible business practices.

Values

Excellence

We believe that excellence in our core activities emerges from a passion for satisfying our customers’ need in terms of total quality management. Our foremost

goal is to retain our corporate leadership.

Cohesiveness

We endeavor to achieve higher collective and individual goals through team work. This is indicated in organization through effective communication.



Respect

We are an equal opportunity employer attracting and recruiting the finest people around the country. We value contribution of individuals and teams. Individual contributions are recognized through our reward and recognition program.

Integrity

We uphold our values and business ethics principles. Professional and personal honesty, dedication and commitment are land marks of our success. Open and transparent business practices are based on ethical value and respect for employees, communities and environment.

Innovation

We are committed to continuous improvement, both in new products and processes as well as those in existing already. We encourage creative ideas from our shareholders.

Corporate Responsibility

We promote health, safety and environment culture both internally and externally. We emphasize on community development and aspire to make society a better place to live in.



Company Introduction



PSO came into being in the mid-70s when the Government of Pakistan amalgamated three “Oil Marketing Companies”: Esso Eastern, Pakistan National Oil (PNO) and Dawood Petroleum as part of its “Nationalization Plan”.

From 1999 to 2004, PSO had undergone radical changes, both internal and external and has emerged with a new look and as a market leader with a long term vision. The company is the only public sector entity in Pakistan that has been competing effectively with three multinationals (Shell, Caltex and Total) which are supported technically by their parent organizations.

Pakistan State Oil Company Limited (PSO) is a Karachi based energy company. The company is engaged in import, storage, distribution and marketing of fuel oil, jet fuel, kerosene, LPG, CNG and petro-chemicals. The company has 3,612 distribution outlets across the country, including 1,610 new visions outlets. PSO has a storage capacity of 76% of total national storage. PSO has a market share of over 82.1% in Black Oil and 61.2% in White Oil. The company has a vast infrastructure of 9 installations and 13 storage depots from south to north and a supply chain supported by a strong tank-lorry fleet and railway wagons. The company is headquartered in Karachi, Pakistan.

PSO operates at 8 airports and serves 4 domestic and 14 international carriers with 64% of market participation in aviation fuel.PSO enjoys 36% market participation in lubricants (15-20% unofficially); it is also engaged in blending and marketing of lubricants for Castrol and Total.PSO has a retail network of more than 3800 branches including 1800 New vision and 1200 Old vision outlets. Round about 2.8 million customers visit PSO outlets daily.PSO is ranked as a blue-chip organization. Winner of KSE Top Companies Award. PSO has 80% of the country’s oil storage capacity through a network of 23 Depots and 9 Installations.


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


Departmental Introduction



Cards Department

It is one of the finest examples of research & value added services. There is a vast range of cards available for customers of different segments. And still the continuous process of change and progress is going on in the department.Company Offers types of cards

1) Fleet Cards2) Corporate Cards3) Commercial Cards4) Prepaid Cards5) Individual Customers6) Loyalty Cards7) Privilege Loyalty Cards8) PSO-UBL Auto Credit Card

Fleet Cards

These cards are ‘Vehicle Specific’ Cards. Which have defined vehicle Plate number on them. The card has also amount, quality and type of product described for a specific period which is usually month i.e 400 liter petrol, 2 liter Oil for LZR 2343 for a month. The amount can be altered but can’t be exceeded without amendments. Government sector is the major customer for these cards. 1.65% service charge are levied on these cards which are justified with the credit limit of 45 days and sharing with software partners.Government entities are not charged the amount because they purchase and are ordered to purchase at original price.The negotiators are allowed to negotiate at minimum of 1% charges not less than this.

Vehicle Specific 14 days for card issuance Rs 100 Membership fee for single card 1.5% Security due to credit limit 1.65% charges 45-55 days credit facility 5-7 of month bills are issued 2% Late Payment Surcharge No GST Refund Payment in RBS (former ABN-Amro)



Customers

Traffic Police CCPO VU (In Progress) PIFRA (In Progress) NEXTERA (In Progress) WAPDA etc

Corporate Cards

These are the cards which are for organizations and are ‘Employee Specific’ cards. All the details are same and similar as the fleet cards but the facilities which were provided with reference to the vehicle plate are now converted to the person.

Customers

Warid Mobilink Wateen SNGLtd Nishat Ltd etc

Commercial Cards

These are the cards which are issued for the vehicles of the organizations engaged in the manufacturing process to save them from dual taxation. Basically the sales tax registered customers. Invoices provided by PSO are taken to FBR for GST refund.

Prepaid Cards

These are the cards which are quit similar to the cards provided by telecommunication companies. The cards are issued on payment of the described amount. PSO is not responsible in case the card is lost from the customers.

Individual Customers

These cards are issued on the demand of individual customers. These cards are issued on name of customers with security taken from estimation of consumption provided by customers.



Loyalty Cards (Obsolete)

These cards were issued and points were gained by the customer on their bases free amount of product was offered. The cards failed by faulty use of the attendants to gain points and enjoy the product.

Privilege Loyalty Cards

This was the campaign for buying from brand partners but wasn’t effective too.

PSO-UBL Auto Credit Card

From march 2009 this new addition in PSO’s portfolio. The card offers 5% free fuel at every purchase from PSO outlet and 1% from any other outlets. It also special discounts on Vehicle tracking devices, PSO’s lubricants and CNG installation kits.

Vehicle Identification System

PSO is fourth in the world to introduce VIS.

1. America2. Canada3. Turkey4. Pakistan (Only by PSO)

PSO has imported the system from turkey. The device is a set which is fixed on the tank of car, which is than connected to the odometer with a device in the middle. Device is usually placed under the seat which provides all the information regarding fueling and mileage.The device is also placed on the dispensing unit which matches the details with the vehicle otherwise the fueling is not done. Following are the specifications

No involvement of the attendant Rs 15000 for the device 2.25% charges for the facility

Customers

Itehad Chemicals Shalamar Hospital Shezan

PC Lahore etc



Fleet Management System

It is an online SMS system which provides information about fuel consumption, remaining balance and other handy information.

Send SMS to 776 For mobilink, Ufone, Warid, and Telenor customers Rs 5 per SMS

Partners in Cards Facility

ORIX Tech Alson Tech

ORIX is the provider of the software through which Cards are swiped. The details are matched with the system inside and ROCs are issued. Two receipts: one for the customer and one for PSO record of ROCs which is kept for three months.Four types of devices are linked with the software for supportive action.

ICE ICE Plus (Rs PTCL billing) GPRS (Rs 5000 varied) VSAT (RS 18500 fixed)

ICE and ICE plus are the devices which work on land line PTCL.In GPRS Sim is used which is of Telenor or Warid.In VSAT the communication process completes by a radar which works by satellite.

Alson is a technology partner in providing software for VIS. Through which the data is matched between the vehicle and the dispensing unit.

Marketing Strategies

Overall as the department provides value added services so the campaigns were basically awareness ones for the target market.

Procedure


PSO Internship Report 18 Approaching transport department of the target market. Making way to the higher authorities Making a formal presentation for awareness of the facility Filling up the forms 4-6 weeks for card issuance Call 0800-03000 for card activation

Barrier

Main barrier the negotiator had to face was to make them agree for the surcharge (service charges).The government sector was also levied this amount from November 2008 and they were never ready to pay for it because the government takes the product on original price.

Strength, Weakness, Opportunities, Threats

Strength

Vast Network Automated Cards which competitors never offer No competitor on motorways 7000 customers 100000 cards issued CRM8

Weakness

Long time for card issuance Problem in the devices Marketing by HRS employees Non acceptance by few filling stations Dealer issues

Opportunities

Large share of market still to capture VIS

Threats



International Competitors

Task Allocation as an Internee

Meetings

In the cards department the clients are followed and given presentations on the cards facilities, advantages and the whole detail of charges and procedures.During my time in the cards department I went on presentations with

Virtual University NEXTERA Fauz Engineering PIFRA (AG Office)

There I learned about those organizations and the way of presentation and negotiations in a very sophisticated manner.The information which was very interesting for me was at NEXTERA;

NEXTERA

These are the manufacturers of High Efficiency (HE) devices CMOS and the company is working under the umbrella of globally renowned company ELTEKVALERE (everywhere telecom exists) which provides 96% efficiency which is ever high while ideal efficiency is 80% and its example is transformer. The products are very sensitive and even the human charge is removed while it’s manufacturing.They provide energy in order to fulfill a continuous process which needs to be carried on otherwise it will cost time cost as well as money cost. i.e

Telecom Service providers need a continuous amount of Direct Current (DC) for the clarity of voice and running of system.

Dehydrogenizing process done in oil industry. If there is a gap in the process the bubbles will spread and all process will need to be done again.

These devices (particular batteries) fulfill this GAP.

Their clients

National Telecommunication Cybernet


PSO Internship Report 20 Link Dot Net International Islamic University Comsats Internet Service (CIS) Motorollan Wateen Ufone Telenor

Visits to F/S

The visits to filling stations were for the awareness of devices and soft wares used in the process.

Friends Motors (Gain Mandar) Mian Latif Brother (Near to Gain Mandar) Sunshine (Cantt ) Fortress Auto Service (Near Fortress Stadium)

Problems

The situation of fraud cards was tackled with ultimate blockage and then other actions.

Operations Department


PSO Internship Report 21The department is the working in PSO as blood in human body. The department deals two functions and both have very crucial part in the competitive market. It deals with storage and distribution of product4. Three zones are made

1. North Zone2. Central Zone3. South Zone

The central Zone Deals with

8 Depots

1. Gujrawala2. Sargodha3. Faisalabad4. Habibabad5. Sahiwal6. Vehari7. Shershah8. Lalpir

2 Installations

1. Mehmood Kot2. Machikee

Daily Stock Report and Gauge Reports are made for the terminals and depots. Currently Pakistan is at the 1:5 situations, means local refineries meet one fifth of the total demand and all of the else is being imported and mainly imported from Qatar.

Working at the Terminals and Depots

Allocation is made The customers who are allocated the product take a demand draft to the

storage area. Monitoring Unit receives the token and matches with the allotment list. The right persons are allowed to fuel the described amount. Health and Safety measures are carefully seen mean while.

Five Points (Mandatory for entry)

1. Vehicles must be self starter


PSO Internship Report 222. Plastic covers on batteries3. 6 kg or 12 kg fire extinguisher on the front4. Fire less on silencers5. Copper earth plates attached with

Visits as an Internee

Machikee Terminal (Near Shaikupura)10,11

The teminal consists of 11 vertical and 8 horizontal tanks. Each tanker had capacity of 10880 Kl approximately. It is a terminal where product is received through PARCO pipline. Nearby SHELL CALTEX and TOTAL terminals exists. At PSO’s terminal workers work in three shifts and is the largest in its vicinity with an overall capacity of 1 crore liters.Whole of the canting, decanting and supply procedures were explained.

Lalpir Depot ( Near Multan)

The product was received through tank lorries. It is one of the important terminals of PSO because it deals with IPPs. So a huge set back can be experienced when ever this depot is effected.Health Safety and environment rules were somehow followed. There other departments such as Accounts, Monitoring Room, Logistics and Engineering side was seen in detail.

Extra Learning

I was gone through the HR manual but to mention its details is beyond the scope of my report. I had gone through ISO 9001- 2000 & 2008 which I have over gone in annexure. The introduction of technology timely was fully briefed

Fox Pro in 2001 Oracle in 2002 System Application Procedure (SAP) in 2004 Individual locations were now connected with the head office in 2005 Afterwards Enterprise Resource Planning7,9

Mobile Quality Testing Unit


PSO Internship Report 23To meet the requirements of customer in a very satisfactory manner the department was made functional. The main purpose of MQTU is ‘Quality Assurance’. For the fulfillment of purpose the MQTU has been provided with mobile vans through which the products are tested, verified and failed. The tests and procedures are verified from Moody’s International. MQTU is first in PSO to be awarded ISO 9001 2008 Moody’s International Award (A) The tests are done on the filling station to save the customers from any effect. The products which are tested are

PMG HSD HOBC

All of them are passed through different tests which result in failure or pass of test.The tests done are below

1. Critical Flash Point Test2. Kero Test3. Density Test4. Color Test5. Volume Test

Critical Flash Point Test (PMG)

Critical Flash Point Test is done for PMG. In this test Initial Boiling Point and Final Boiling Point are noted. The success of test depends on following criteria

IBP………….……………………………...max 30c-45c10% Product Recovery…………………...max 80c50% Product Recovery……………………max 125c90% Product Recovery……………………max 180cFBP 100% Product Recovery..……………max 205c

Basically the test is done in an automated device and the product recovery and the results are yet positive below the maximum temperature.The test point is called so because at the FBP the flash light blows but it can not be seen in sun light.

Kero Test (PMG & HSD)


PSO Internship Report 24Kero test is done by putting kerosene into the product which removes the dyes from the product. The original colors of the product are seen and the amount of dyed portion must be same as the quantity of kerosene. Usually 10 ml of it is mixed.

Naturally PMG is ColorlessHSD is yellowish in colorOrange PARCO Product, Flesh Attock Refinery Product, Pinkish is standard and imported color o HSD.

Density Test (PMG & HSD)

A device called hydrometer is put in a defined quantity of product through which measures are taken to check the density of the product.

Density= Mass/volume

PMG 0.855 per literHSD 0.745 per liter

Color Test

A round disk with colors is matched with the original color of the product. Not done.

Volume Test

The amount of product is taken in a metered empty flask of one liter. The product is taken from all the nozzles of dispensing units. Usually one line is short means one small measure.

Procedure Adopted by MQTU

A confidential list which is issued by the head office is mailed to the staff. They did not know about anything unless the inspection F/S is defined.

The team members take the van making the way most suitable. The target point is reached. A very useful discussion is made with the dealer

about his experience of the product.

Electric wire from the mobile van is attached to the power supply. That’s why the inspection is not done in rain to avoid any earth.

Video from the monitor in the van is run to educate the working staff. Automated Flash Point Test is done. Kero Detection Test is done. Density Test of HSD & PMG.


PSO Internship Report 25 Volume Test for Products. The overall situation of the F/S is noted: Canopy, Dispensing units, Staff

Uniform, Wall Display. Lubes Tested: Display, Date, Price and Originality. All the report was furnished to another computer in the van. Two copies were

taken from the printer both signed by the dealer, one for him and other for PSO.

The actions are taken on the bases of the records against the guilty dealers but it is above from the authorities of MQTU.

Suggestions

Somehow make it possible to interact with customers:a. Questioners to at least the car ownersb. Taking suggestions from the customersc. Taking complaints from customers with PSO/Dealer

More need for automation in the results of tests so that the data of the results may be transferred automatically to the computer (Removal of human interference).

Movie must be made more effective. The staff must be penalized so that required interest may be gained.

Some other experiences may be connected with the van. For consumer affiliation and attraction small campaigns may be run asa. Distribution of prizes (pollution masks etc)b. Small organized event c. PSO Cards promotion

Visits as Internee

Once again after sometime I had to see towards head office because no authority to make me move in the MQTU van. there wasAt 3;pm the list was received and I moved with the van for inspection.All the tests were physically performed in front of me and I from the start became a huge acknowledger of the performance. Few things which need to be done were suggested.

Health Safety & Environment


PSO Internship Report 26HSE is a department which not only works for health and safety in working area but also for the environment. The awareness campaigns are run and the things which are good or bad for health safety & environment are projected. A very comprehensive manual for guidance in related issues has been provided, ‘HSE Manual’.Following are the examples and their taglines

We can make a difference

Smoking

Quit now to breath easySmoking means risking your life and around you

Safety

Buckle up for securitySeat belts mean safer drive for all

Helmet

Mind your headA hard hat means avoiding injury

Driving

Road sense is common senseObey traffic signs for safety

Environment

Protect itEnvironment is life

Pakistan Environment Protection Act 1997 is also followed.Weekly journals are issued with very informative facts for healthy life i.e



A triangle ∆ is formed below the bottles of drinking water which has numbers from 1….5. If the number is less than five means it is not safe for use of two or

three days or maximum a week. It causes cancer. Usually mineral water . bottles has 1 number.

Smoking a cigarette after meal is 10 times more injurious.

Never walk after meal.

Don’t eat fruits abruptly after meal.

Achievement as an Internee

Study of HSE manual was completed and fully discussed

Industrial Consumers Department



It is a department which deals with industrial sector and huge power producers. The function remains the same as supply of the product.Furnace Oil is the main product of the department with the Lubricants. Furnace Oil is a also POL product which is separated in the distillation process.

Lubricants

There is a chemical department which deals with additives which are mixed with the base oil to form a complete range of products.Base Oil + Additive = Lubricants

Competitors CALTEX CASTROL SHELL MOBIL TOTAL

Industrial Lubricants

General purpose Machinery Oil Spindle Oil Hydraulic Oil Turbine Oil Industrial Gear Oil Sugar Mill Oil Open Gear and Wire Rope compound Refrigeration Oil Refrigeration Oil Imported Heat Transfer Oil Slide Way Oil Quenching Oil Metal Cutting Oil Emulsifiable Cutting Oil Transformer Oil

Compressor Oil

Consumers


PSO Internship Report 29Major Consumers are

PIA New Khan Daewoo WAPDA Textile Sector Automobile Sector

Korangi Lube Manufacturing Terminal is state of the art additive mixing laboratory in Pakistan under supervision of PSO. Few of other competitors also take advantage of this facility.


Pull Strategy

IC follows a pull strategy for its customers. In case of furnish oil no other competitor is able to fulfill such a huge orders i.e WAPDA needs 28000 M/T of furnace oil per day and currently PSO can supply 25000 M/T per day.


Strength

Huge Supplies Large Network Wide range of Products with very sophisticated differences High Margins

Weakness

Lack Of promotion in LUBE Lack of awareness in customers LUBES not real focus

Opportunities

LUBE is not the market of PSO so lot of margin to enter new segments



Threats

Highly financed campaigns of competitors Image of Competitors Internationally Recognized products with international brands

As an Internee

This was a very high profiled department but unfortunately it was not situated in the PSO house and I had a very little time left from my completion to be there.

Retail Department


PSO Internship Report 31Retail is one of the front end fighters for PSO. It basically deals with the retail outlets which are the source of main supply for large number of customers. The main F/S whom all the people get used to for fuelling of cars, bikes, buses and other vehicles.

Retail fulfills following three functions

1. Development of New Outlets2. Maintenance of existing window outlets 3. Promotion of LUBES in this channel

Development of New Outlets

The development of new vision outlets has three categories

a. New Buildb. Conversionc. Ground Up

It is important to know the difference between New Vision Outlet & Old Vision Outlet.Now all the outlets with old PSO monogram and with lack of facilities are OVPs and the outlets with new monogram and which meet and fulfill the international standards are NVPs.

New Build

All the outlets which are being now built are new vision outlets

Conversion

When the Old Vision Outlets are converted into new ones they pass through conversion process. From early past conversion has been stopped to avoid difference which was created in the process. This action was very useful for the sake of uniformity.

Ground Up


PSO Internship Report 32To maintain the uniformity now the old outlets are fully destroyed and are build newly, this is ground up.

Maintenance of existing window outlets

The maintenance of existing outlets is also a very important task. For this purpose site engineers are being appointed. They check overall condition of the F/S and all the technical issues accordingly. In maintenance flowing things are considerable

Engineers Responsibility Proper working of Dispensing Units Proper working of cards machines Proper working of generators

Retail Department’s Responsibility Uniform of Staff Cleanliness of ground Horticulture items Non Fuel Retailers Wall Display

Promotion of LUBES The promotion of lube is also responsibility of retail. For the fulfillment of this purpose few methods and techniques are used.

Quotas regarding new and old vision outlets are being set which are included in the agreement to be fulfilled.

720 liters per month for New Vision360 liters per month for Old Vision

The supply for HSD and PMG can be stopped for non fulfillment of any mandatory clause but it is one of the last options which can be used.

Procedure for setting up outlet

Any person can approach the retail department for his wish to set an outlet he needs to provide an application with papers of ownership of land.



Each application is entertained and a survey team is appointed for making feasibility of land. In the feasibility report following points are considerable;5

a. No. of vehicles passing through that vicinity b. Competitor’s outlets

c. Minimum 5 Km from PSO’s own outletd. Projected salese. Plot Areaf. Return of investment time

These points are to secure the profit expected from an investment.

After the survey the application is rejected or being selected for following categories;

a. CF (Company Financed)b. DFA (Dealer Financed category A)c. DFB (Dealer Financed category B)d. CO-CO (Company Owned-Company Operated)

In CF all the major expanses are beard by the company the dealer provides the land. CF is done on the bases of location of land. For a highly profiled or profitable location company does this kind of agreement.

In DFA civil works are done by the dealer and the signage and dispensing units are provided by the company. It costs the dealer 7-8 million approximately.

In DFB all the expenses are beard by the dealer. This agreement is done while the feasibility report is so weak but yet the dealer wants to have an F/S.

The CO-CO sites are the sites which the company runs itself. The owner provided the site and shares the profit but the site is run by PSO. This agreement is mostly done on the dealer request that is willing to provide the land but does not wants to run it.




Customer Relationship Groups6

The retail department has formed CR groups and on their bases decisions of supply and advancement are made. Dealers are customers of retail. All the allocations, F/S improvement, Credit time etc are provided on these bases.

Push Strategy

The sales of LUBES in this department are totally made on push strategy. The dealer is made bound to take a defined stock of lubricants whatever the case is.

Cross Selling

Non Fuel retail outlets are being formed on F/S. Which include tuck shops, atms, Pizza huts etc.


Strength

Automated Processes SAP Channel and Sales people Coordination1,2,3

Weakness

Low supply Lubricants Issues

Opportunities

E-10 Non Fuel Retails



Threats

Growth of competitors with international names

Visits as Internee

As it is most related to the outlets, I was moved through different outlets i.e

Shah Noor Filling Station (Multan Road)

Arrow Head ( Near Bhaikay wal) Tiger (Ferozpur) Intikhab ( Faisal Town) Railway Site CO-CO (Australia Chowk)

Same was everything but different was the vision to visit was different. Now I came to know about the ideal conditions for any kind of filling station.There are two types of dispensing units which any of the company uses

1. Tatsuno Service provider Alson2. Wayne Service provider Atlas

Both work with complete satisfaction.I was honored to run a CO-CO site from 9 to 5. In which the fuel was received, issues were tackled, few of the customers were interviewed, the tire shop and car wash places were completely explored.It was a 80% dealer and 20% company profit sharing site. The Following were generation from

Tire shop Rs 12000 Car Wash Rs 35000 50000 were for petty expenses CO-CO sites are less profitable and profit of PSO at the end of June was

43775



Projects

Ethanol-10

It is a product which consists of ethanol blended gasoline. Few of the countries of Europe have gone through this technique. It has two main advantages



Cost Effective No Bad effect on engine

Ethanol is by product of sugar industry and is totally wasted, so it’s not very expensive but the real customer will get a huge relief in PMG price after its introduction. Still 10% is introduced and up to 25% of ethanol can be added. And finally its also environment friendly.

Bio Diesel Nurseries

It is a very fine project which is being moved with a complete support of government uder the umbrella of PSO and it’s a project of Alternate Energy Resources. Yet Pakistan has huge amount of unexplored resources but it’s a very fine project and it is also cheaper than the formal means.

Virtual University PSO

VU PSO Campus is going to be established in District Badin. The project is headed as a social responsibility of the company.

Internal Displaced People

IDPs as humans as well as our national fellows have been provided 10 million donation by PSO in Prime Minister Special Fund for IDPs.



Competitor Review

CASTROL

It is a product of British Petroleum and was marked by PSO. International Brands Ltd bought it from PSO. Still IC department is dealing with the product.CASTROL separation is a major set back for PSO lubricants.



SHELL

Shell having 45000 outlets all over the world with largest in number. The company was incorporated in 1900. The new logo was introduced in 1992. The company was a joint venture of Shell Petrol Company and Royal Dutch Petroleum Company. Shell having 160 outlets in Pakistan (where PSO having 350 only in Lahore division). Shell has also its cards but they are just like credit cards that can be punched manually.

TOTAL

It is a France based company which is fourth largest oil in the world. For working Total have done joint ventures;

Total and Atlas Group Joint Venture Total Atlas Lubricants Pakistan

Total and PARCO Joint Venture Total PARCO Pakistan Ltd

Total PARCO has 200 Retail Outlets in Pakistan and has growth rate 30-35 outlets each year.

Chevron Chevron Pakistan Ltd is the Fifth largest integrated company in the world. Previously known as CALTEX entered subcontinent in 1938. Chevron Pakistan Ltd has 598 outlets and it also fuels to Quaid e Azam airport Karachi.

PSO Strength, Weakness, Opportunities, Threats

Strength



Leader in card modern technology and devices Continuous progress and improvement Wide range of outlets Wide storage capacity Employee loyalty & facilities

Weakness

Centralization Brand Image not well promoted

Opportunities

PSO Cards large segment yet to be captured E-10 Alternate Source of energy Bio-Diesel

Threats

Competitor Advertising Campaigns Increase in number of competitors (3 to 11)

Suggestions


PSO Internship Report 41 There is a serious need of empowerment and decentralization

The procedures need to be more networked not individualized

MQTU should bring up with different other extravaganzas with the van in same cost

Need for large promotion campaigns in lubricants

The allocation of product needs to be more automated

Until now it should come out of political interference on ground level

The senior management appointed before the change in organization should be replaced with more competent and deserving people

ISO 9001-2008 certifiacation must be attained in all departments

Glossary

AdditiveAny material added to base oil to change its properties, characteristics or performance.



DensityMass per unit volume

DistillationThe basic test use to characterize the volatility of gasoline oil or distillate fuel.

InstallationA place where product is received through pipeline

DepotA place where product is received through tank lorries and tank vegans

Tank LorriesTrucks and other vehicles moving on the road

Tank VegansSupply received through railway

ViscosityA measure of a fluid’s resistance to flow

White OilHighly refined lubricant stock used for specialty applications such as cosmetics and medicines



Annexure

A1



VIS Application Form

A2



PSO Fleet and Corporate cardsAccount Opening Form

Individual Account Opening Form

A3



Sales Officer’s Daily Call Sheet

A4

ISO 9001-2000Quality Management System



A5

ISO 9001-2008Quality Management System



It is an eight principle standards system. The main difference between the previous one and this one is not about the theme but the clauses are made clearer in this version.

A5



Daily Stock Report



Stock PhysicalDate Product opening Receipt Total Off Take As per Book stock

11/7/2009 HOBC 161440 0 161449 0 161449 161449PMG 1539814 820328 2360142 1130478 1229664 1227925SKO 2919231HSD 29261002 7222796 36483798 5529512

Working Transit Total Today Yesterday0 0 0 Temperature Density Temperature Density

-270 331 -1739 36.2 774 36.2 77433.5 715 34.5 713

Gauge Report

Tank Density Temperature M Cm MM

Bibliography

1. Consumer Marketing Channel By Author Philip Kotler in Principles of Marketing Chapter, Design a customer Driven Marketing Strategy and Integrated Marketing Mix.Page No. 314


PSO Internship Report 51 2. Business Marketing Channel

By Author Philip Kotler in Principles of Marketing, Chapter Design a customer Driven Marketing Strategy and Integrated Marketing Mix.Page No. 314

3. Channel ConflictBy Author Philip Kotler in Principles of Marketing, Chapter Design a

customer Driven Marketing Strategy and Integrated Marketing Mix.Page No. 315

4. Marketing Logistics and Supply chain By Author Philip Kotler in Principles of Marketing, Chapter Design a customer Driven Marketing Strategy and Integrated Marketing Mix.

Page No. 328

5. Place Decision By Author Philip Kotler in Principles of

Marketing. Chapter No. 13 Design a customer Driven Marketing Strategy and Integrated Marketing Mix.Page No. 352

6. Customer Relationship Groups

Harvard Business School Review “Mismanagement of Customer Loyality” Werner Ronald & V.Kulmar 2002

7. Information Management System By James O. Brien & George M. Maracks 7th

Edition Fig 7.11. Chapter 7 Business Applications Page 228

8. Customer Relationship Management By James O. Brien & George M. Maracks 7th Edition Acquire, Enhance , RetainPage No. 254


PSO Internship Report 529. Enterprise Resource Planning ERP By James O. Brien & George M. Maracks 7th Edition Page N0. 265

10. Why did OPEC failed to keep the oil prices high? By N. Gregory Mankiw 3rd Edition Page No. 106

11. Supply Demand & Govt. Policies Effect of tax on Buyer & Seller

By N. Gregory Mankiw 3rd Edition



Life is no straight and easy corridor alongWhich we travel free and unhampered

But a maze of passagesThrough which we must seek our way

Lost and confused now and againChecked in a blind alley

But always, if we have faithGod will open a door for us

Not perhaps one that we ourselvesWould ever have thought of

But one that ultimatelyProve good for us

A.J Cronin


saqib report(1)

Documents

muhammad saqib

integrated

pso internship

dealer financed

health safety

pakistan state

feasibility

kero test