REPORT Information for Marketing Edit Version Final

MODULE CODE: BD 315 013 S

MODULE TITLE: Marketing Consultancy

WORD COUNT: 7000

STUDENT ID’s:

Presents Its: Recommendations

To

Phoenix Park Gas Processors Limited

Definitive Marketing SolutionsThink Different, Be Different...

Executive Summary:

Project / Team Details

TEAM Name: DEFINITIVE MARKETING SOLUTIONS

Slogan: Think Different, Be Different....

Project Team Members: Project Interface/Client Contact Richard MungalsinghProject Planner/ Scheduler Neera Moonesar Project Research Strategy Officer Marcus Sookram and

Natalie Samaroo-BachanProject Coordinator/ Team Leader Delicia VillaroelProject Document Controller Arlene Balkaran

Case Study Company (Client): Phoenix Park Gas Processors Ltd. (Referred to within this report as PPGPL)

TABLE OF CONTENTS

1.0 INTRODUCTION .....................................................................................................................

1.1 Introduction to Company ........................................................................................................

1.1.1 Background to Industry and Environment ..............................................................

1.2 Research Problem .................................................................................................................

1.3 Working Title .........................................................................................................................

1.4 Objectives ..............................................................................................................................

1.5 Justification ...........................................................................................................................

2.0 METHODOLOGY ..................................................................................................................

2.1 Types of Research .................................................................................................................

2.1.1 Descriptive Research .............................................................................................

2.1.2 Explanatory Research ...........................................................................................

2.1.3 Archival Research .................................................................................................

2.1.4 Justification of Research Methods ........................................................................

2.2 Types of Data ........................................................................................................................

2.2.1 Qualitative Data ....................................................................................................

2.2.2 Quantitative Data .................................................................................................

2.2.3 Justification of Select Data Type ..........................................................................

2.3 Methods of Data Collection ..................................................................................................

2.3.1 Secondary Methods .............................................................................................

2.3.2 Primary Methods ..................................................................................................

2.4 Analysis of Data ..................................................................................................................

2.5 Limitations to Research .......................................................................................................

2.6 Ethical Issues ......................................................................................................................

3.0 RESEARCH FINDINGS .......................................................................................................

1.0 INTRODUCTION

1.1 Introduction to the Company/ Client:

Phoenix Park Gas Processors Limited (PPGPL) is one of the largest gas processing facilities in

the Americas. Operating since 1991 out of the heart of Point Lisas Industrial Estate, PPGPL

provides an essential natural gas conditioning service for the National Gas Company of Trinidad

and Tobago (NGC).

NGC currently holds 51% shares of PPGPL, ConocoPhillips Incorporated (39%), and Pan West

Engineers & Constructors Incorporated (10%). Even though being majority owned by a State

Enterprise, PPGPL operates similar to a private company buying, transporting and selling its

products, managing its finances, employing staff, paying taxes and planning for its future.

Being an excellence driven, customer focused company PPGPL has successfully maintained its

core business for over 16 years in natural gas processing, NGL aggregation, fractionating and

marketing natural gas liquids from the Atlantic LNG Trains 1, 2, 3 and 4 facilities. With

continuous improvement focused on its “people” and “business” PPGPL has an excellent track

record in health and safety as evident by its 14 year safety record. Much emphasis is also

placed on Corporate Social Responsibility, making meaningful contributions to national and

community projects within the island, maintaining one of its CORE VALUES of “Valuing all

People”.

[Source: www.ppgpl.com; client interview]

1.1.1 Background of the Industry and Environment:

Trinidad and Tobago is one of the most prosperous, highly diversified and industrialised

countries in the Caribbean with an energy based economy responsible for 42.5% of the nations

GDP (Gross Domestic Product).

PPGPL being a major competitor within the petrochemical sector plays an integral role with its

strong operating efficiencies manifested in very low operating costs. This principle enables

PPGPL to provide its major products of Propane, Butane and Natural Gasoline at exclusively

low prices, always holding a competitive advantage to its rivalry. Dominating its market position,

PPGPL supplies the Caribbean with propane and butane whilst supplying its natural gasoline to

the North and South America.

Having distinguished itself with a reputation both locally and internationally, for efficient, high-

quality and reliable service, PPGPL also derives a significant advantage from its ability to

service its regional customers with requisite volumes and product specifications required for this

market and strong customer loyalty for over a decade.

However, over recent times the find of “Shale Gas” has been a point of concern for PPGPL.

Research originally indicated that “Shale Gas” is a cleaner and more environmentally friendly

product than Natural Gas, in addition to being marketed along the lines of highly economical

and cost effective drilling operations. This can pose negatively on Natural Gas Processors and

by extension the sale of natural gas.

[Source: www.ppgpl.com; client interview; ministry of trade and industry 2011 booklet]

1.2 Research Problem:

With the introduction of Shale Gas on the market, Natural Gas could experience sales decline

which would directly impact the operations of PPGPL. However, it is in the power of PPGPL to

ensure their product offerings remain at highest standards delivering a high quality product and

service experience to its customers at all times.

With the need to control and encourage better relationships and communication with customers,

PPGPL designed an internal customer survey report to manage and track customers’ views of

the organisations performance. When compared 2008 to 2009 surveys, marketing department

saw a 1% decline in customer’s perception of overall performance. Even though a very small

decline, management believes some attention should be given to prevent a further slide as they

are on a drive to encourage better customer/client relationships.

Major areas of concerns identified by the survey: -

- Products

- Facilities

- Reliability of Supply

- Communication

Based on the above, Marketing Officer of PPGPL– Mrs. Kellee Richards identified the following

areas of major concern when interviewed (See Appendix1). Mrs. Richards wishes to have

Definitive Marketing Solutions analyse the identified areas and present recommendations to her

department.

Marketing Department holds the strongest relationships with customers. However, the

department wishes to have some measures implemented with the aim of covering the following

areas – retaining customers, attracting new customers and dealing with difficult customers. In

addition, measures to encourage the entire organisation in sharing the same holistic view of the

customer.

As appointed consultants for PPGPL, the team analysed the indicated areas and found each

one to be a different theoretical area of study. However, to meet the expectations of the client

by providing recommendations to outline all areas of concern, Definitive Marketing Solutions

strategically linked the problem to the newly developed theoretical area of – “Customer Relationship Management” which covers each area identified above.

1.3 PROJECT WORKING TITLEAn evaluation of the effectiveness of Phoenix Park Gas Processors Limited (PPGPL)

Customer Relationship Management (CRM) Plan

1.4 PROJECT OBJECTIVES - To analyse the internal and external environment of the organisation within its industry

- To examine Customer Relationship Management within the organisation

- To determine the effectiveness of the organisations Customer Relationship Management

Systems

- To present recommendations and conclusions on the basis of strengths and/or

weaknesses of the analysed data

1.5 Justification of Objectives: - The environmental scan will be carried out to develop a better understanding of the

environment in which the organisation operates. This will help determine the current position,

future direction, identify trends and changes which will be used in the analysis of the research

problem.

- The existing Customer Relationship Management processes will be examined to identify

strengths and weaknesses within the organisation. The results will help to draw conclusions and

recommendations to the problems identified.

- By assessing the effectiveness of the current Customer Relationship Management Plan,

recommendations can be made based on the findings enabling maximum effectiveness.

- Recommendations and conclusions will be drawn based on strengths and weaknesses of the

research carried out. This will provide for improvements where needed within the organisation’s

Customer Relationship Management, developing improved company/client relationships and

achieving success of PPGPL’s “Overall Performance.”

2.0 METHODOLOGY

2.1 TYPES OF RESEARCH

This area of the report will explain how Definitive Marketing Solutions aims to carry out research

on the client company and the methods which will be utilized for data collection.

Saunders et al 2007:602 defines methodology as “the theory of how research should be

undertaken, including the theoretical and philosophical assumptions upon which research is

based and the implications of these for the method or methods adopted.”

2.1.1 Descriptive Research

Descriptive research is “to portray an accurate profile of persons, events and situations”

(Robson 2002: 59). The main goal of this type of research involves gathering data that

describe events and then organizes, tabulates, depicts, and describes the data. It is quantitative

and uses surveys, interviews, observations and portfolio.

“Descriptive research also known as statistical research, describes data and characteristics

about the population or phenomenon being studied. This answers the questions who, what,

when, where and why”. [www.sensagent.com]

2.1.2 Explanatory Research

“Explanatory research can be defined as a method or style of research in which the principal

objective is to know and understand the trait and mechanisms of a situation or problem in order

to explain the relationship and association between the independent and dependent variable”.

[Saunders 2009]. It builds on exploratory and descriptive research and goes on to identify the

reasons for something that occurs. Explanatory research looks for causes and reasons. This

research is done through the use of questionnaires, interviews, group discussions and random

sampling.

2.1.3 Archival Research

“This methodology is primarily concerned with the examination of historical documents. It is

concerned with any recorded data”. [Milton and Jenkins 1985]In addition “Archival Research strategy allows research questions which focus upon the past

and changes over time to be answered via exploratory, descriptive or explanatory methods”.

[Saunders et al 2009]

2.1.4 Justification of Research Methods

Definitive Marketing Solutions will apply all the above research methods as follows: -

- Descriptive Research will be used to focus on the strengths and weaknesses of the

company’s current situation in order to make appropriate recommendations. By gathering

descriptions of “what is” and comparing them to “what the organisation would like” managers at

‘PPGPL’ can see the relevant areas that needs to be addressed and improved. This can be

achieved by the use of visual aids such as graphs and charts.

- Explanatory Research methods will be used to allow researchers to conduct research and

gather information which will explain the possible downfall in the current Customer Relationship

Management Plan identifying the level of effectiveness and enabling the researchers to achieve

its objectives through the use of the following methods - questionnaires, interviews, group

discussions and random sampling.

- For this research project Archival Research is recommended, since, all the data/ information

collected will be acquired via the company’s database (Financial reports, surveys, company

overview etc.)

2.2 TYPES OF DATA

Data analysis techniques are divided into descriptive (Quantitative) and statistical (Qualitative)

analysis. Tukey’s, 1977 states “the uses of diagrams are essential when exploring and

understanding data”.

For example: charts, graphs, surveys etc.

2.2.1 Qualitative Data

Qualitative researchers aim to gather an in-depth understanding of human behaviour and the

reasons that govern such behaviour. This method investigates the” why” and “how” of decision

making, not just “what”, “where” and “when”. Qualitative data analysis allows the researchers to

develop theory from data collected. [Saunders et al 2009]

2.2.2 Quantitative Data

“Quantitative research uses sampling techniques (such as customer surveys) whose findings

may be expressed numerically, and are amenable to mathematical manipulation enabling the

researcher to estimate future events or quantities”. [http://www.businessdictionary.com/definition/quantitative-research.html]

2.2.3 Justification of Select Data Type

Qualitative Data - This type of data collection will be used allowing researchers to investigate

the “why” and “how” of the research problem. The analysis will identify customer and

employees’ perception of the company, identifying the perceived need for improvement with the

existing Customer Relationship Management Plan. This will be done by gathering data through

mainly interviews and questionnaires. Stutely’s (2003) statement - “a minimum number of 30 for statistical analyses provides a useful rule of thumb.” However, based on size of

customer base, sample population will be restricted to no more than twenty.

Quantitative Data - This type of data will enable the researchers to analyze the data collected

from the research design (samples, statistics, graphs, charts etc.) identifying the problematic

areas of the company’s Customer Relationship Management Plan. This analysis can be used by

the company to improve or recommend long-term strategies for building and improving future

relationships.

2.3 METHODS OF DATA COLLECTION

“Data can be defined as the facts or things used as a basis for inference or reckoning,” (Collis and Hussey, 2009 p.160). The following were the chosen methods/research tactics to collect

the relevant data to satisfy the research objectives:

2.3.1 Secondary Methods

Secondary data is described by Collis and Hussey (2009) as “data or information that already

exists somewhere having been collected for another purpose”. The secondary data sources

used were the company’s annual reports, customer surveys, internet data, stored data, and

other existing sources. Saunders et al., (2009) explains that secondary data can provide

comparative and contextual data. The group collected information from these sources and

compared the results obtained with the data collected from actual practices. Additionally,

secondary data was obtained quickly and required fewer resource requirements. Data collected

from secondary sources are more open to public scrutiny and therefore should be reliable.

2.3.2 Primary methods

According to Cooper and Emory (1995, p.240), “Primary data comes from original sources and

are collected especially to answer our research question.”

Primary Data Collection Tools: focus groups, interviews and group discussions, semi-

structured interviews, unstructured interviews, questionnaires, texts, pictures, other materials.

Interviews

Kahn and Cannell (1957) as cited in Saunders et al., (2009, p. 213) define an interview as “a

purposeful discussion between two or more people.” Of the three categories of interviews;

structured, semi-structured and unstructured, the one chosen for the group’s data collection was

the semi-structured interview. This allowed flexibility in interviewing personnel from the various

departments across the company. A list of questions, highlighting the relevant themes to be

covered was compiled. For each interviewee, a variety of questions was selected from the list,

varying with the specific organizational context. In some instances, the order of the questions

varied with the flow of the interview, allowing persons to give their general perception and views

of the company in a free flow of information.

The interviews were conducted by the group and notes taken by the Project Document

Controller and later transcribed. The interviews were executed at a restaurant after working

hours to facilitate the participant’s time schedule avoiding undue pressure in evaluating and

answering the questions.

The individuals chosen for these interviews were from functional departments across the

company. This was done to get feedback on the type and level of interaction between the

company and customers. These persons included:

The Chemical Analyst – Mr. Dean Clarke

The Shipping Coordinator – Mr. Aaron Ramnath

The Marketing Officer – Mrs Kellee – Ann Richards

Product Loader – Mr. Javed Hosein

Human Resource Officer – Ms. Joanne Sampath

According to Jankowicz (1995, p.210), “rich and supportive data can be obtained from the

interview as it facilitates the asking of more complex questions that could not be asked on the

questionnaire.” The interviewer was able to clear up any ambiguity in the question and

determine face-to-face how individuals thought and felt about the issue. Other advantages were

that the interviewer asked additional questions and changed the order of questions to better

explore the research question and objectives

Questionnaires

Another method of data collection used was the questionnaire. According to Collis and Hussey (2009, p.354) a questionnaire is “a method for collecting data in which a selected group of

participants are asked to complete a written set of structured questions to find out what they do,

think or feel.” Mainly closed questions were used for ease of analysis. These collected factual

data to make it easier for respondents to answer as well as to minimize non-response rate. A

few open ended questions were used to give participants the opportunity to express their

opinions.

The questionnaires were administered to both local and international customers (100% of the

population) and were self-administered. The method chosen for administering of questionnaires

was delivery and collection within a three day period. All questionnaires were electronically

administered and retrieved in the time allotted.

According to Sekeran (2009, p.251), “the questionnaire avoids interviewer bias and saves time

and expense as a large number of persons can be surveyed together, in a short time. Response

is generally higher because of anonymity.” The group achieved an 80% response rate on the

effectiveness of PPGPL’s customer relationship management.

2.4 ANALYSIS OF DATA

Data was analyzed using quantitative and qualitative methods. Zeithaml, Parasuraman and

Berry’s (1988) SERVQUAL model was used as the guide for the analysis of data for this

research because of its emphasis on the quality of service offered to customers. Empathy,

reliability, tangibility, responsiveness, assurance were analyzed using tabulation and descriptive

methods.

Investigating CRM involved both inductive and deductive reasoning processes at some time in

the project. A deductive approach develops a theory and hypothesis (or hypotheses) and

designs a research strategy to test the hypothesis. An inductive approach collects data and

develops theory on the basis of the data analysis. “Inductive reasoning, by its very nature, is

more open-ended and exploratory, especially at the beginning. Deductive reasoning is narrower

in nature and is concerned with testing or confirming hypotheses” Saunders et al. (2007).  

2.5 LIMITATIONS TO RESEARCH

Collis and Hussey (2009) explain that “a limitation identifies potential weaknesses in the

research.” Some of the difficulties faced during the course of the research have been identified.

PPGPL was also in the process of carrying out their internal Customer Survey Report at

the same time the researchers required executing questionnaires, as a result questions

were kept brief and to the point to avoid confusion between PPGPL and Customer.

Analytical methods ------

Time and cost constraints.

2.6 ETHICAL ISSUES

Ethics is defined “as the norms or standards of behaviour that guide moral choices about our

behaviour and our relationships with others”. (Cooper and Schindler, 2008: p.34)

“Research ethics therefore relates to the questions about the formulation and clarification of the

research topic; how the research is designed, gain access, collect data, process, and store,

analyze data and write up the findings in a moral and responsible way”. (Saunders et al, 2009: p. 184)

The researcher proposes best practice in ethical conduct for the completion of the proposed

subject under investigation. The author will ensure moral responsibility is maintained, protect the

rights of people involved in the study as well as their privacy and sensitivity. The confidentiality

of those involved in the observation, ensuring anonymity and privacy, honesty, openness,

objectivity, integrity.

3.0 RESEARCH FINDINGS

OBJECTIVES OF COLLECTING DATA

Definitive Marketing Consultants presents results of research conducted on PPGPL. Data

collected, both qualitative and quantitative will be analysed with the aim of achieving the

objectives of the research.

3.1 Marketing Research Findings

The environmental audit was executed through the use of the understated frameworks: -

Internal Analysis

Mc. Kenzie’s Seven S’s,

Marketing Mix and

SPICC Factors

External Analysis

SWOT

PESTLE and

Porter Five Forces

3.1.1 Internal Analysis – Mc Kenzie’s Seven S’s The internal environment or micro environment of Phoenix Park Gas Processors Limited

(PPGPL) was analyzed by the use of the following frameworks. Data was collected and

analyzed through secondary research and was retrieved via the company’s websites. [http://www.ppgpl.com/company.html].

The Mc Kinsey Seven S’ Model “incorporates different perspectives and mediates an overview

on the relationship and dependencies of organizational factors” (Kerth and Putman 2005 p. 59).

STRATEGY PPGPL aims to position itself as the leader in the energy sector and is committed to

become the number one in the natural gas liquid business globally by 2020. Also to be

number one in safety & environment and customer focus.

STRUCTUREThe organization consists of layers which are headed by the board of directors, leadership

team, supervisory team, technicians, and contract employees.

SYSTEMS

The daily operations of PPGPL are carried out by all the relevant departments of the

business; Operations, Human Resource, Finance, Marketing and Sales department etc.

Each business unit is required to maintain systems of internal control which is appropriate to

the nature and scale of its activities and addresses all significant operational and financial

risks they face and to safeguard shareholders.

STYLEThe company applies participative/democratic style management, which encourages

employee participation before a decision is made by management. They are trained in

operations, finance, customer focus, leadership and innovation

STAFFPPGPL employs one hundred and sixty people. They are trained in operations, finance,

customer focus, leadership and innovation. It is management's responsibility to ensure the

presence of a safe and healthy workplace. Employees include specialist in operations,

engineering, and maintenance skills.

SHARED VALUES

The success of the organization is tied directly to the adherence of the following core

values: safety and environmental preservation, customer satisfaction valuing all People,

ethical business conduct, quest for excellence,

SKILLS The company budget for high overseas training for high tech equipment and specialist

function. The skills required includes; Managers, Supervisors, Lab Technicians, Process

Technicians and Maintenance Technicians.

SOURCE: [http://www.ppgpl.com/company.html].

3.1.2 Internal Analysis – Marketing Mix

PRODUCT - PPGPL provides gas of high quality standard to its customers by processing raw,

natural gas. PPGPL supplies propane, commercial butane and natural gasoline.

PRICE - Industrial prices track international oil market prices.

PLACE/ DISTRIBUTION - The Company’s gas processing and loading dock facility is located at

Point Lisas, Trinidad. Delivering its product via pipelines to customers.

PROMOTION - PPGPL has a very active corporate social Responsibility program which

includes gifts to the nation and sponsorship.

PHYSICAL EVIDENCE - The facility at Point Lisas delivers all the products and is equipped

with air conditioned team rooms; it is centrally located and has two loading docks at Yara

approximately one mile from its office.

PROCESS - The Company operates its facility according to international standards and codes

which informs its procedures and policies. It is governed by the best practices in the oil and gas

industry.

PEOPLE - PPGPL has been able to attract and keep professionals mainly due to its safety

accomplishments, reliable reputation and efficient operations. The company offer competitive

salary, specialist training, and a work environment which allows the employee to grow and

develop.

3.1.3 Internal Analysis – SPICC Factors

MARKET SITUATION

SUPPLIERS - Natural Gas is supplied to PPGPL by the National Gas Company of Trinidad and

Tobago. NGC will network the offshore producers, eg, British Petroleum of Trinidad and

Tobago, British Gas, and Broken Hill Proprietors to ensure a reliable supply to PPGPL. Petrotrin

and Atlantic LNG will supply low pressure and Natural Gas Liquids for fractionating.

PUBLICS - The organization that has ventured in the business include; shareholders, civil

society, groups, governments and the community. PPGPL has upgraded computer labs in the

schools and refurbish cricket grounds.

INTERMEDIARIES - The Company utilizes both direct and indirect modes of distribution.

PPGPL will liaise with agents for vessels in shipping as well as charterers of vessels when

required.

CUSTOMERS - The customer base is local, Caribbean and Central America. Target markets for

propane and butane are the Caribbean, markets for gasoline is North America. Customers are

B2B.

COMPETITORS - Venezuela is the company’s main competitor for all products. Petrotrin is the

local competitor for Propane and Butane.

3.1.4 External/ Internal Analysis - SWOT

STRENGTHS WEAKNESSES

Flexibility in responding to customers requests e.g.

dock capabilities, varying cargo sizes.

Preferred call of duty by LPG customers.

Quick turnaround of vessels.

Highly skilled and competent management operating

its physical assets in a safe, reliable, flexible and

efficient manner that preserves the environment and

staff.

Excellent financial ratings.

In ability to influence governments decisions

High maintenance costs.

Barriers to entry are high.

Effective communication channels with clients in

different time zones and different cultural backgrounds

Insufficient use of technology

Inability to change cargo nominations at late requests

Supplied cargo bounded by contracts

OPPORTUNITIES THREATS

Faster access to products via the internet, online growth.

The company is looking at expansion in global market

(Americas and Europe).

Opportunities along the value chain – downstream

industries.

Joint venture with customers and suppliers.

Availability and introduction of new technology

Economic slowdown due to global recession and

financial crisis.

Loss of sales as alternative and renewable energy

becomes more predominant.

New marketing trend of exploring the option of

finding Shale Gas.

The introduction of Shale Gas suppliers in strategic

locations.

Uncertainty of Trinidad’s gas reserves.

Change in governments energy policy and tax

structures.

High competition (Venezuela).

This framework analyzes the strengths, weaknesses, opportunities and threats of the

organization.

Created by: Definitive Marketing Solutions (2011). [http://www.ppgpl.com/company.html]

3.1.5 External Analysis – PESTLE Factors The external environment/ macro environment was analyzed through the use of the PESTLE

Analysis and Porter’s Five Forces framework. These framework analyses the factors

surrounding the industry in which PPGPL operates. Data was collected and analyzed through

secondary research and was retrieved via the company’s and government websites.

POLITICAL - Government heavily relies on the energy sector when forecasting budgets – which

has placed the country in a relatively stable position making very attractive to Multinationals. It

also encourages constant growth for members of the energy sector.

ECONOMIC - The need for cleaner fuel by downstream petrochemical users opened doors for

MNC’s as they were invited to submit proposals to the Government of Trinidad and Tobago for

joint venture arrangements to meet the demand. However, Government maintains majority

share within industries of this nature.

SOCIOLOGICAL - Terrorism emanating from Trinidad may deter the US and other investors

from investing in the country adversely impacting on Foreign Direct Investment.

TECHNOLOGICAL - Technological advancements have changed the reserve picture of

hydrocarbons – eg. Improved ways of finding oil & shale gas, cost reductions, new drilling

techniques by advancing pneumatic control systems to distributed and programmable logic

controls.

LEGAL - Government requires statutory reports in accordance to regulatory standards. All local

statutory taxes are paid and PPGPL operates in compliance with guidelines set by local and

international bodies, conducting business in compliance to guidelines set forth by these

institutions.

ENVIRONMENTAL - Changing climate conditions in global warming can have negative effects

in this region in increased hurricanes, skin cancer etc.  Trinidad and Tobago is signatory to the

Kyoto Protocol agreement to cap emissions.

3.1.6 External Analysis – Porter Five Forces Model

5 Forces of Competitive Advantage

HIGH

HIGH HIGH

LOW

Source: From M.E. Porter (1985) Competitive Advantage

Potential Entrants(Threat of Mobility)

Industry Competitors

(Segment Rivalry)HIGH

Substitutes(Threat of

Substitutes)

Suppliers(Supplier Power)

Buyers (BuyerPower)

Evaluation of Porter’s 5 forces on the Oil and Gas Industry

INDUSTRY FORCE LIKELYHOOD COMMENT

Threat of new entrant High Multinational’s operates in the country, and has the

revenue, technology, and experience in the country to

build similar gas processing facilities.

Bargaining power of

suppliers

High Few specialist suppliers are required for equipment and

gas supply to the facility. They can dictate the profitability

of the company.

Threat of Substitute

product

Low The products derived from oil and gas is certified for use in

specific process designs. This is regulated by international

quality control.

Bargaining power of

buyers

High High competition exists with new gas finds and flexible

payment schemes.

Rivalry among existing

firms

Low There is only one gas processor in Trinidad and Tobago

and the Caribbean.

Created By: Definitive Marketing Solutions (2011)

3.2 Qualitative Data Findings

Findings from – Interviews

Data was collected from interviews with Senior Staff at PPGPL in order to collate findings in

response to research objectives.

Interviews were conducted with three (3) representatives of PPGPL’s internal staff, whereby

participants were selected based on their level of customer interaction.

CHARACTERISTICS OF PARTICIPANTS Category # participant % of Sample Size Gender

Male 2 67%

Female 1 33%

Years of Experience at PPGPL

1 – 5 years 0 00%

6 – 10 years 2 67%

Over 10 years 1 33%

# Respondent Response Y/N

1 Lab Technician Y

2 Marketing Officer Y

3 Shipping Coordinator Y

3.2.1 Précis of Interview Findings: -

The understated outlines the findings from each question asked to the interviewees. See

Appendix 2, 3 and 4 - for copy of transcripts.

Q&A Summary of Response

Q1 To what extent do you interact with customers?

A1 Marketing has the most direct customer interaction in the organisation followed by Shipping (which is employed under the Marketing Department). All customer complaints are addressed and follow ups executed by Marketing.

Q2 What are some of the customer relationship issues you encounter?

A2 Pricing Issues, Cargo Nomination (changes), quality issues, unscheduled demands

Q3 Do you think that CRM can assist you in meeting the changing needs of customers?

A3 By making the organisation more marketable to meet change in demands

Q4 How do customers address problems they encounter with PPGPL?

A4 All customer problems/issues are being addressed and handled by Marketing

Q5 What do you think is your role in keeping customers satisfied?

A5 Vessel turnaround time crucial for customer satisfaction, specification of cargo,

keeping the customer well updated (time difference can be a challenge)

Q6 What is presently being done to strengthen customer relationships?

A6 Strengthen relationships by encouraging more client visits to allow face to face contact – building better relationships, customer appreciation ceremony, customer interaction programs.

Q7 What more can be done to strengthen customer relationships?

A7 Operating procedures, timely feedback, shared information within the organisation, enhanced customer awareness, employee training, more flexibility

Q8 Do you believe that customers are satisfied with the service they get from PPGPL?

A8 Yes, based on good service, quick vessel turnaround, high quality product

Q9 How do you access customers’ information?

A9 Customer database is confidential, info is shared via email and phone calls

Q10 How do you view your relationship with customers?

A10 General consensus – “good”

Q11 What are the CRM related activities in your Company?

A11 Customer client visits, specially structured yearly surveys, customer database, customer appreciation

Q12 What would be the benefits to your company of adopting a CRM Plan?

A12 Improving service to customers by building on relationships and customer loyalty

Q13 What are some of the external factors that affect customer relationship

management?

A13 Cultural difference (language), time difference, restriction by governed contracts

Q14 Do you think that the present CRM activities are sufficient to ensure good customer

relationship with PPGPL?

A14 Current factors can only maintain, time to have something more structured that can build relationships. Customer Service Training happens as needed, by department. There is no organization-wide training in customer relationship management

Q15 How does senior management view the adoption of a formal CRM Plan?

A15 Implementation will be challenging based on employee mindset

Q16 Does your company employ an IT system that can support a CRM plan?

A16 No comprehensive computerized database, room for upgrade

Customer Relationship is a business strategy built on three important aspects: -

People

Processes

Technology

In order to examine PPGPL’s Customer Relationship Management systems, focus was placed

on these areas to determine what is currently being used and how.

PEOPLE – The organisation’s core value heavily surrounds “Customer Satisfaction” as a result

staff is well grounded in understanding this concept. However, there has been little evidence

that indicates the entire organisation (from top to bottom) shares the same holistic view of their

customers. Findings indicated that “there is no organisation wide training in Customer

Relationship Management and Customer Service Training is presently being carried out only by

departments.”

PROCESSES – Currently Customer Surveys are being used to track and record Customer

activities in areas of satisfaction, dissatisfaction and change in demands. However, Marketing

Department and Management are the only persons within the organisation aware of the results

and implement measures working towards improvements. A database also exists to keep

employees informed of customer activities but is also restricted to the marketing department for

the sake of confidentiality. In support of customer relationship management, PPGPL offers

yearly Customer Appreciation Ceremonies, encourages more customer/client visits as a form of

building relationships on a face to face basis.

TECHNOLOGY – Organisation has at present intranet services used to communicate within the

organisation but based on the close knit staff, tendencies of phone calls has shown more

precedence. Information of PPGPL can be accessed from their external website but is also a bit

limited not allowing much customer interaction. Staffs are well trained in the use of organisation

wide technology, allowing all users to maximize on the usage of equipment and software.

3.3 Quantitative Data Findings

Definitive Marketing Consultants conducted its distribution of questionnaires to PPGPL’s

customers during the period: 26th October to 01st November, 2011.

The questionnaire was built on the determinants of the ServQual Model: tangibles, reliability,

responsiveness, assurance and empathy. See appendix 5 for sample questionnaire.

Overall response rate from a sample size of 20 surveys – 80%

The findings will be presented on the basis of distributed questionnaires capturing customer

views through the use of both open ended and closed ended questions.

# Company Response

Y/N Local/ Regional1 Aerogas Y L2 ALNG - Dept 1 Y L3 ALNG - Dept 2 Y L4 British Gas - Dept 1 N L5 British Gas - Dept 2 N R6 British Petroleum Offshore - Dept 2 Y R7 British Petroleum Offshore Dept 1 Y R8 Carib LPG Y R9 Caribbean Gas Y R

10 Chevron Y R11 Geogas Y R12 Gulf Stream - Dept 1 N R13 Gulf Stream - Dept 2 N R14 National Gas Company Y L15 National Petroleum Y L16 Petrotrin Y L17 Repsol Y L18 RYTTSA Y R19 Shell Y R20 Vitol Y R

TOTAL RESPONDENTS 16 8 locals/ 12 regional

3.3.1 Findings for SECTION 1 and 2 of Questionnaire

SECTION 1

Questions were asked on a scale of 1 to 10: -

1 to 2 – Never

3 to 4 – Seldom

5 to 6 – Sometimes

7 to 8 – Often

9 to 10 – Frequently

All graphs and tables are compiled on the basis of the questionnaire by Definitive Marketing

Consultants.

Question 1 – PPGPL is a reliable supplier

Table 1

Rating Never Seldom Sometimes Often Frequently

1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 1 2 3 10 0% Response 0% 0% 0% 0% 0% 6% 13% 19% 63% 0%

Graph 1

63% respondents rated PPGPL as a frequently reliable supplier, whereas 32% rated their

reliability as often and 6% as sometimes.

Question 2 – PPGPL’s facility is well equipped to meet client’s needs

Table 2

Rating Never Seldom Sometimes Often Frequently

1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 0 0 1 7 8% Response 0% 0% 0% 0% 0% 0% 0% 6% 44% 50%

Graph 2

Findings shows that PPGPL’s clients rated their facility as being frequently equipped to meet clients needs with a rating of 94%, whereas 6% rated them as often.

Question 3 – PPGPL consistently delivers contracted volumes and quantities

Table 3

Rating Never Seldom Sometimes Often Frequently

1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 0 2 2 10 2% Response 0% 0% 0% 0% 0% 0% 13% 13% 63% 13%

Graph 3

Findings show that PPGPL consistently delivers contracted volumes and quantities as 75% indicated frequently and 25% often.

Question 4 – PPGPL’s staff is helpful and efficient in responding to customer complaints

Table 4

Rating Never Seldom Sometimes Often Frequently

1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 1 3 5 7 0% Response 0% 0% 0% 0% 0% 6% 19% 31% 44% 0%

Graph 4

PPGPL’s efficiency to customer complaints was rated as - 44% respondents rated frequently, 50% often and 6% sometimes.

Question 5 – PPGPL’s staff possess the skills and knowledge to perform their duties

Table 5

Rating Never Seldom Sometimes Often Frequently

1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 1 0 7 8 0% Response 0% 0% 0% 0% 0% 6% 0% 44% 50% 0%

Graph 5

Respondents show that 50% frequently, 38% often and 13% sometimes agrees to PPGPL possessing the skills and knowledge to perform their duties.

Question 6 – PPGPL understands customers and is flexible in meeting their needs

Table 6

Rating Never Seldom Sometimes Often Frequently

1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 1 2 13 0 0% Response 0% 0% 0% 0% 0% 6% 13% 81% 0% 0%

Graph 6

94% of respondents believe PPGPL often understands and flexible in meeting their needs whilst 6% rated sometimes.

Question 7 – Where applicable PPGPL’s management and staff are easily accessible.

Table 7

Rating Never Seldom Sometimes Often Frequently

1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 1 6 6 3 0% 0% 0% 0% 0% 0% 6% 38% 38% 19% 0%

Response

Graph 7

19% respondents agree to PPGPL’s staff and management being accessible frequently while 75% rated often and 6% sometimes.

Question 8 – PPGPL maintains timely and effective communication channels.

Table 8

Rating Never Seldom Sometimes Often Frequently

1 2 3 4 5 6 7 8 9 10Response 0 0 0 0 0 3 5 8 0 0% Response 0% 0% 0% 0% 0% 19% 31% 50% 0% 0%

Graph 8

Respondents rated PPGPL’s communication effectiveness as 81% often and 19% sometimes.

SECTION 2

Questions were asked on a scale of 1 to 5: -

1 – Strongly Disagree

2 – Disagree

3 – Neutral

4 – Agree

5 – Strongly Agree

Question 1 – Do you think PPGPL’s long term contracts should have specific account

representatives and why?

Table 9

Strongly Disagree Disagree Neutral Agree

Strongly Agree

QUESTIONS 1 2 3 4 5Do you think PPGPL's long term contracts should have specific account representatives and why? 16

Graph 9

100% of the population of respondents strongly agreed on the basis that the customer believes

some attention needs to be focused on the communication channels and it would be much

easier on the customer to have focus placed on dealing with a specific representative rather

than just the Marketing Officer. (See Appendix 6)

Question 2 – Do you think having an online database to access vessel loading updates etc will

enhance operations and communications?

Table 10

Strongly Disagree Disagree Neutral Agree

Strongly Agree

QUESTIONS 1 2 3 4 5Do you think having an online database to access vessel loading updates etc will enhance operations & communications? 16

Graph 10

100% of the population of respondents strongly agreed. One regional customer clearly indicated

it would help to alleviate the issues of time differences across the globe.

(See Appendix 7)

Question 3 – Do you think PPGPL keeps all parties updated (timely) of situations affecting

product availability (disruption or supply)?

Table 11Strongly Disagre

eDisagre

eNeutra

lAgre

eStrongly Agree

QUESTIONS 1 2 3 4 5Do you think PPGPL keeps all parties updated (timely) of situations affecting product availability (disruption in supply)? 10 6

Graph 11

37.5% of respondents strongly agreed and 62.5% agreed.

Question 4 – Do you think PPGPL maintains good relationships with their customers and how?

Table 12

Strongly Disagree Disagree Neutral Agree

Strongly Agree

QUESTIONS 1 2 3 4 5Do you think PPGPL maintains good relationships with their customers and how?

12 4

Graph 12

25% of respondents strongly agreed and 75% agreed.

Most of the ratings found were relatively high on the graph – determinant level for negative and

positive ratings would be set at a 75% marker.

Based on the determinants of the Questionnaire, the following are our findings on a pass marker of < 75%being positive and under >75% being negative: -

Table 13

Determinants Less than 75% More than 75%

Tangible 100%

Reliability 6% 94%

Responsiveness 12.5% 87.5%

Assurance 3% 97%

Empathy 12.5% 87.5%

Representing Determinants

Tangible– physical evidence

Reliability – dependability, delivering on promises, accuracy, consistency

Assurance – competence, courtesy, credibility, security

Responsiveness – promptness, helpfulness

Empathy – easy access, good communication, customer understanding, personalized attention

4.0 ANALYSIS OF DATA

4.1 Qualitative Analysis of Questionnaires

Customer Interaction and Support

Based on interviews, the customers’ interactions are limited to the marketing department only;

this department is currently responsible for customer queries and complaints. The marketing

department focuses on customer relationship building via interactive co-mingling at international

sporting events and other avenues where customers can freely interact and enjoy the hospitality

of the host (PPGPL). A mechanism for understanding the customer or recording unique

requirements for each individual customer so as to better understand the customer over a

period time, such as a central database does not exist. Customer satisfaction are measured via

customer surveys, this however coupled with the non existence of a central database makes

understanding the customer a reactive rather than proactive process as customers has to

provide feedback for the company to understand their customer relationships and react

accordingly.

CRM can solve difficulties in customer interaction by providing a framework where a customer

can make queries or complaints and they are provided timely feedback by the respective

departments. Interaction of customers with the CRM system can improve relationships as the

customer needs are addressed. This is supported by Wilson, et al., (2002) who indicated that

CRM can be used to create personalized, one on one experience that will give the individual

customer a sense of being cared for. The CRM framework also allows for data gathering of

individual customers where the information gathered over time can be utilized to effectively

provide a customized service to customers. This is supported by Fayerman, (2002) who

indicated that CRM can be used as a customer focused business strategy to increase customer

satisfaction by providing a customized service to each customer. The data gathered can also be

used to proactively manage customer relations rather than a reactive approach.

Customer Retention

PPGPL currently has no formal customer retention policy hence, no supportive system for such.

Customer retention strategies are informal and are initiated by marketing in a proactive context

to promote existing contract extensions or renewal. Customer retention is critical with the era of

hyper-competition; organizations are forced to be more concerned with customer retention and

loyalty (Dick & Basu, (1994). There is a cost associated with attracting new customers and

actually cost less to retain customers than to compete for new ones, Rosenberg & Czepiel,

(1984).

CRM can retain customer based on facts discussed above under Customer Interaction and

Support, this is supported by Vavra, (1992) who indicated that CRM is a powerful customer

retention tool based on customer bonding or staying in touch with the customer after a sale is

made.

Challenges with Customers

There are several challenges when dealing with customers such as price determination, timings

of cargo nomination, unscheduled demands, cultural differences, time differences and

inflexibility with contractual arrangements. Many of these items are not easily resolved however;

through CRM information can be easily accessible to the customer, Brady (1995). This

information can allow the customer to make strategic decisions which can result in reduced

conflicts and challenges with customers.

Cultural differences can be managed using CRM as CRM allows the accumulation of customer

data over time which can be used to effectively manage customers of diverse cultures. This is

supported by Adebanjo, (2003) indicated that CRM allowed mountains of customer data to be

analysed to refine customer-facing practices to increase loyalty. Significant time differences can

also be addressed by CRM with the integration of departments; any department (especially the

24hour operations department) can respond to customer needs or even provide some sort of

feedback to indicate that it will be addressed within a few hours. Kim et al., (2002) suggested

that integration of business processes and departments and providing appropriate responses to

customer request is vital part of the CRM system.

Departmental Integration

The critical departments that the customer integrated with namely marketing, operations and

finance are not interconnected from a customer management perspective. This places

significant responsibility on the marketing department as they are the single point contact for all

customers. Turn round times for business transactions are also increased as all customer

requirements are channelled to the respective departments via marketing.

A CRM system has an integrated approach encompassing critical departments for customer

satisfaction. This would allow better responses to customer requirement and it can also improve

turnaround times for business transactions. Kim et al., (2003) indicated CRM can improve

information channels between departments thereby maximizing the effectiveness and efficiency

of organizational operations.

Integration of Core Values within Departments

One of PPGPL’s core values is customer satisfaction, the communication of this value and its

importance is not effectively made within the organization. There is no formal framework such

as training structures to facilitate this type of edification to employees. There is also no

integrated system (Information Technology) that supports the core values of the company.

As mentioned previously in departmental integration, Kim et al., (2003) suggested that CRM can

improve information channels between departments. PPGPL can use this aspect to their

advantage and integrate a training system within the CRM system in the design stages. This will

allow training of employees to be monitored and updated using the CRM facilities. The CRM

can be used not only to track customers but also employees as well.

Policy and Procedures

No policy exist which is in alignment to support the core values of the company to guide

employees on how they should interact with customers, the standard of service to provide or

even a strategy document to guide priorities on customers based on profits generated from

them.

Qualitative data from the questionnaires specifically questions 5 and 10 were rated lower than

average. Several customers indicated that there are inconsistencies with respect to PPGPL’s

employees having the necessary skills and knowledge required to perform their duties

effectively. Question 10 indicated that communications in response to customer concerns/quires

were not consistently timely.

CRM can provide the information to develop a strategy to maintain high profit customers.

According to Wilson et al (2002) the influential study by Reichheld and Sasser (1990) indicated

a large impact on profitability for small increases in customer retention rates. Chye and Gerry,

(2002) indicated that the CRM system will enable the organization to calculate the profitability of

individual accounts. This information can then be used to identify and effectively manage the

customers who generate significant profits to the organization. Policies and procedures should

be implemented by PPGPL to support the capabilities of the CRM system to maximize

profitability.

PPGPL as a company should implement competency based training programs to allow

competencies to be measured against a standard thereby improving overall performance.

Curtain & Hayton, (1995) indicated that competency based training is accepted by many

industries.

Long Term Growth Strategy

PPGPL’s core value is to maximize long term growth. Supporting systems to achieve this core

value is inadequate as indicated by responses from the interviews. The CRM system can

support the long term growth strategy as it can be used to attain customer retention for the long

term. This view is supported by Peppers & Rogers, (1993) whose study indicated that the

information technology capability of CRM can focus on individual or one-to-one relationships

with customers that integrate database knowledge with a long term customer retention and

growth strategy.

4.2 Quantitative Analysis of Questionnaire

Section 1

The questionnaire was built on the ServQual Model supported by the areas identified during

client interview; questions were placed into the relevant determinants identifying the areas of

satisfaction.

Section one being used to represent the level of Satisfaction based on an 80% response rate of

a 20 member population.

Table 14

Determinants

Mean Satisfaction

> 75%

Mean Satisfaction

< 75% Tangible 0.00 4.00Assurance 0.08 3.90Reliability 0.17 3.83Empathy 0.34 3.66Responsiveness 0.34 3.66

On the basis of the above findings, the mean for the satisfaction factor begins at 4.00; therefore

the table identifies the area of “Tangible” and “Assurance” as the highest ranked satisfactory

factors. Emphasis would need to be placed on – Reliability, Empathy and Responsiveness with

the two latter showing the greater differing factor.

Section 2

Section two of the questionnaire was used to focus on areas of importance to the customer for improvement in relationships and communication.

Graph 13

From the above graph, it can be determined that “all” participants strongly agree that PPGPL

should have specific account representatives for long term contracts. It was also strongly

agreed by “all” that an online database should be created to enhance operations and

communications.

(4500 words)

5.0 RESEARCH CONCLUSIONS

PPGPL holds a strong position in the energy sector being the only Gas Processing Company of

Trinidad and Tobago. Known for its quick turnaround of vessels, PPGPL has been able to

attract customers both regionally and internationally. With the opportunity to form joint ventures,

mergers and acquisitions, PPGPL can further penetrate the international market with its direct

presence. However, the recent discovery of shale gas has raised awareness within the industry

as the product offering can give customers a “choice” based on cost and availability.

An analysis of the qualitative and quantitative data suggests that the customer relationship

management within the organization is relatively effective as the findings indicated relatively

good ratings. However, the data suggest that the members within the organizations are not in

alignment with the company’s core value of customer satisfaction. PPGPL as a company does

not have the necessary framework and infrastructure in place to effectively support customer

relationship management. Customer relationship management in PPGPL is not a companywide

system; it is currently the sole responsibility of the marketing department.

The effectiveness of PPGPL’s customer management systems is perceived by customers as

generally good based on the customer surveys. There was however, a small number of

customers who were dissatisfied with their relations with PPGPL. The effectiveness can be

considered to be relatively good with several areas for improvement. Based on the ServQual

model, areas for improvement are responsiveness and empathy (personalized attention and

effective communication).

An overall analysis of the individual objectives indicated that there was a need to significantly

improve the infrastructure and framework to effectively manage customer relationship.

Integration across critical departments is required and training in the effective use and

management of customer relationship systems. The following recommendations were formed

based on the concerned areas identified.

6.0 RECOMMENDATIONS

The understated recommendations are based on the above analysis and findings. The

recommendations will be presented outlining a systematic approach to increase overall

organisational performance through the use of a structured Customer Relationship Management

Plan. The plan shall be designed for a one year period; however, the full effects of the results

cannot be measured within the short term. The plan would follow continuity over a three year

period to maximize benefits.

The traditional concept of the marketing mix establishes a system where a buyer purchases

from a seller via straight forward transaction. In today’s global environment of fierce

competitiveness, relationship building with customers is critical for companies to survive. A

paradigm shift is required to integrate relationship management with the traditional marketing

mix. Kotler, (1991) concludes that companies must move from a short term transactional

oriented goal to a long term relationship building goal. A hybrid marketing strategy can be

developed where the marketing mix can be used to initially attract customers and relationship

management utilized to establish customer loyalty for the long term. In PPGPL’s case the CRM

system is intended to build long term customer loyalty.

OBJECTIVES:

1. Maintain 80% existing high valued customers within the first year with an increase to

90% over the next three (3) years.

2. 75% of all contracts to be long term within the first year with existing and new customers

increasing to 90% over the next three (3) years.

3. Improve information link between PPGPL and its customers to increase communications

in one (1) year with continual improvements over the next three (3) years.

4. Interlink all departments via CRM within six (6) months to respond to 95% of customer

queries and complaints.

ASSUMPTIONS:

1. Competitors advancing operational efficiency to improve quality and customization of

products, increased reliability and offering flexible payment plans to the customer.

2. Rapid development of LNG plants globally, increases the requirement for natural gas

processing facilities. These facilities can become competitors in the future based on the

quality of products, location and price offered to PPGPL’s existing and potential

customers.

TARGET MARKET:

PPGPL targets both existing and potential long and short term contract customers.

POSITIONING:PPGPL seeks to position itself to be a customer focused organization, supplying superior

customized products, with the intent of becoming a preferred supplier.

MARKETING STRATEGY:Ansoff Matrix:

Source: Adapted from Ansoff (1957) Strategies for Diversification, Harvard Business Review.

Strategy: Market Penetration

PRODUCTS

CURRENT NEW

PENETRATION:

PPGPL’S DESIRED MARKET STRATEGY

PRODUCT REPLACEMENT

DIVERSIFICATIONMARKET DEVELOPMENT

CURR

ENTL

Y O

PERA

TIN

GN

EW E

NTR

Y

MAR

KETS

The market penetration strategy will be used to maintain high profit customers to achieve the

marketing objectives.

MARKETING MIX

Product/Service

Offer a product that can be standardized or customized to customers’ needs. Promote a first

class service based on the strength of the Customer Relationship Management Plan that is

superior to the competitors and tailored to individual customers.

Justification: The integrated approach between product and superior service is required in

building long term relationships. Long term contractual relationships allows greater visibility of

projected revenue, this data is critical in the formulation of both strategic and tactical business

decisions for future growth.

Pricing

Pricing strategies are twofold in nature. Adhoc customers are subjected to current global gas

commodity prices and long term customer prices are based on contractual agreement.

Justification: Prices in the natural gas industry are based on supply and demand factors in the

global environment. It is critical that PPGPL anticipates global future demand and the respective

prices as well as the local gas supply when developing long term contractual agreements.

Place

The place of distribution shall be the existing loading docks at Point Lisas. The CRM system

shall be integrated such that the customer at the point of loading can make formal enquires or

complaints and the various departments can respond and act in a timely manner.

Justification: The place is critical as this is an interaction point between the customer and dock

loading representative.

Promotion

Market penetration in existing markets shall be promoted using several methods. PPGPL can

inform the existing customer base via email of their ability to customize product offerings to

meet customer specific requirements as well as launch the CRM initiative, its capabilities and

positive real time benefits to the customer.

PPGPL can also advertise in the popular Oil and Gas Journal, promoting its products and the

ability to flexibly meet customer needs. It can also advertise its CRM system to illustrate how it

can improve the efficiency of the customers’ operations by having real time information services.

PPGPL can ensure participation in local trade shows highlighting customer focus initiatives

tailored for the customers’ needs.

Justification: The promotional aspects are vital to communication with existing and potential

customers.

People

A Customer Relationship Management Team should be developed comprising of Information

Technology, Marketing and a third party consultancy firm who shall design and implement the

CRM system. The team shall ensure that all employees undergo training in the CRM system to

guarantee consistency in the quality of service and promote the core value of customer

satisfaction. The training should also include responding to the customer requirements and

queries in the shortest possible time not exceeding 24 hours.

Justification: Without people the CRM system cannot be implemented, it is imperative that

they are properly educated in this area as their actions can make the CRM initiative a success

or failure.

Physical Evidence

There will be no change in physical evidence.

Process

The integration of departments will be governed by Standard Operating Procedures which will

inform “all” personnel of their roles and responsibilities. Processes will be simplified with real

time access to client/customer information via the online Customer Relationship Management

System.

Justification: Processes are critical as this set the guiding principles of how the system shall be

managed. Data security protocols will be implemented to ensure client/customer confidentiality.

MARKETING BUDGET (All values quoted in US Dollars)

MARKETING EXPENCE BUDGET FINANCIAL YEAR 2012

COMPONENT ALLOCATION

BUDGET

PUBLIC RELATIONS $30,000

- Participation in International Industry Conference ( 3 industrial conferences carded for 2012)

$30,000

ADVERTISEMENT $40,000

- Local Industry Conference $10,000

- Oil and Gas Journal (monthly article) $30,000

- E-Mail $0.00

NETWORKING TOTAL $40,000

- Client Visits $20,000

- Client Contract negotiations $20,000

CONTINGENCY BUDGET $30,000 $30,000

TOTAL MARKETING EXPENSE $140,000

SALES FORECAST (All values quoted in US Dollars)

YEAR 2012 2013 2014

QUARTERQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

TOTAL SALES (EBIT)$260,833,92

0$213,409,57

0$165,985,22

1$308,258,26

9$262,750,48

8$214,977,67

2$167,204,85

6$310,523,30

4$273,456,78

9$225,654,95

1$175,632,58

7$325,369,25

8

COST OF PRODUCTION$75,215,638 $75,215,638 $60,321,456 $75,215,638 $80,568,975 $80,568,975 $75,000,000 $80,568,975 $84,365,987 $84,365,987 $50,000,000 $84,365,987

OVERHEADS$10,256,422 $10,256,422 $10,256,422 $10,256,422 $12,563,487 $12,563,487 $12,563,487 $12,563,487 $13,015,896 $13,015,896 $13,015,896 $13,015,896

INSURANCE$23,658,952 $23,658,952 $23,658,952 $23,658,952 $25,365,487 $25,365,487 $25,365,487 $25,365,487 $28,326,589 $28,326,589 $28,326,589 $28,326,589

EQUITY INVESTMENTS$102,702,90

8 $52,278,558 $8,748,391 $134,127,257 $89,252,539 $34,479,723 $4,275,882 $112,400,35

5 $89,748,317 $34,946,479 $14,290,102 $124,660,786

TOTAL QUARTERLY EXPENCES

$211,833,920

$161,409,570

$102,985,221

$243,258,269

$207,750,488

$152,977,672

$117,204,856

$230,898,304

$215,456,789

$160,654,951

$105,632,587

$250,369,258

QUARTERLY NET PROFIT $49,000,000 $52,000,000 $63,000,000 $65,000,000 $55,000,000 $62,000,000 $50,000,000 $79,625,000 $58,000,000 $65,000,000 $70,000,000 $75,000,000

ANNUAL NET PROFIT $229,000,000 $246,625,000 $268,000,000

The above sales forecast, based on the module guide should capture projected data for one year. In the case of PPGPL where the contemporary marketing mix has to be integrated with a CRM system that is intended to

foster long term relationships. It is impractical to project revenues for a one year period. Based on the time spread of existing contractual agreements and the potential new contract awards that can be attained with the

implementation of the CRM system a period of minimum three years is required for the benefits to materialize.

The graph below illustrates the Sales Forecast tabulated data

The above graphical projected representation of, total revenues, expenses and net profit

indicate a long term growth in revenue with the implementation of the CRM system.

TIME SCHEDULE

MARKETING PROMOTION SCHEDULE

2012

PUBLIC RELATIONS Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

International Industry Conference ( 3 industrial conferences carded for 2012)

IC

IC

IC

ADVERTISEMENT

  Local Industry Conference

LC

Oil and Gas Journal (monthly article) JA JA JA JA JF JA JA JF JA JA JF JA

E-MailIE UE UE UE UE UE U

E UE UE UE UE UE

NETWORKING

Client Visits CV

CV

CV

Client Contract negotiations

CN

CN

CN

LEDGEND

ICIndustry conference where PPGPL can form relations with potential and existing customers.

LCLocal Conference where PPGPL promotes it CRM system to the local energy and manufacturing industries.

JA Published article in the popular industry oil and gas journal promoting PPGPL CRM system and its benefits to the customers

JFPublished article highlighting the success and interaction of the customers with the PPGPL CRM system.

IEInitial E-mail to inform existing customers of the introduction of the CRM system and how this system will positively impact the customer.

UEUpdate E-mails to inform customers of how they can interact, communication of individual pass codes, and re-enforced the stringent security the CRM system offers to maintain customer confidentiality and information.

CV Client Visits shall be managed by the marketing representative to ensure clients have a pleasant stay and memorable experience which will enhance the relationships

CNContract negotiations are sensitive and the marketing representative must be aware of cultural diversities and how to best manage to foster relationship building at the time of negotiations.

13.0 MONITORING AND CONTROL

Continuous monitoring of the marketing plan is essential, comparing actual versus

budgeted/projected values, completion of preparatory work for upcoming events and

ensuring activities are completed as scheduled are critical for the success of CRM. This data

shall be used to formulate informed decisions to guide the marketing plan in the direction it

was originally intended. Several methods shall be used to monitor are:

Monthly meetings to discuss present status of the CRM system.

Monitor advertising schedule to ensure activities are conducted as per assigned

schedule.

Monitoring the progress of training of relevant staff in the CRM system.

Monitor the interaction of customers with the CRM system; educate customers as

necessary via e-mail.

Monitoring of the data exchange between customer and PPGPL’s employees,

analyze situation and communicate recommendations to improve as necessary.

Monitor customer satisfaction via quarterly surveys which includes the aspect of

evaluating the CRM system from a customers’ perspective.

Monitor the data attained while interacting with customers and use the data to better

manage future engagements with the customer. Ensure information is tailored to the

individual customer.

Monitor renewal of long term contracts for existing customers as well as new

customers. This is the intended purpose of the CRM system and must be monitored

closely.

Monitor profits on a quarterly basis

Comparison of actual versus expected revenue and marketing cost.

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