EXCUTIVE SUMMARY

This report highlights my internship of lubricants in PSO house Karachi.

The

internship was begun from 20th of June and came to end at 2nd of August. I did my internship practice in marketing department under the primary supervision of Sir Vaqar-A-Khan. I was assigned two main projects regarding in which make a detailed report on PSO lubricants market and the other one was to conduct an in-house survey about the lubricants awareness. Moreover it was also assigned in which I organized a market activity, named as Lube Hanagama at different petrol pumps. I also participated in PSO CSR 2011 Project regarding collection for NICH Karachi. PSO is the largest oil company in Pakistan having the advantage to conduct large internship programme, in fact there are few companies that offers anything that PSO is going to offer. The present PSO tag line, PSO,Apna Hai, coated by CEO is all about maintaining client satisfaction in long term brand loyalty towards PSO. During my stay at PSO headquarter Karachi, I became of the opinion that PSOs strong and through planning has always worked as win-win strategy in its all scenarios and critical situations. It has faced so far. In my opinion; PSO has give empowerment to its lower coder employees up to some extent. Therefore if they come up with better strategies or plans of action, the top management may consider them after through analysis.

Table of Contents
EXECUTIVE SUMMARY ...................................................................................................... a 1 BACKGROUND OF THE ORGANIZATION ....................................................................... 1 1.1 History ......................................................................................................................... 1 1.2 Vision of The Company ............................................................................................... 1 1.3 Mission ........................................................................................................................ 1 1.4 Companys Profile.........................................................Error! Bookmark not defined. 2 ORGANIZATION STRUCTURE......................................................................................... 3 2.1 Organization structure ................................................................................................. 4 2.2 Operation Departments ............................................................................................... 5 2.3 Training & Organizing Development Department ........................................................ 5 2.4 Retail & Sales Department .......................................................................................... 5 2.5 Industrial Consumers Department ............................................................................... 6 2.6 Lube Sales and Agency Trade Department ................................................................. 6 2.7 Brand Management Department ................................................................................. 6 2.8 Operation Department ................................................................................................. 7 3 Marketing Strategy ............................................................................................................. 8 3.1 Business Process Analysis. ......................................................................................... 8 3.1.1 Lubricant Group ..................................................................................................... 8 3.1.2 Lubricant market in Pakistan ................................................................................. 8 2008-2009 ...................................................................................................................... 8 3.1.3 Report Samples ..................................................................................................... 9 3.1.4 Problems ............................................................................................................... 9 3.1.5 Brand Image and ATL ......................................................................................... 10 3.1.5 Counterfeiting and Laser Coding ......................................................................... 10 3.2 Marketing Mix ............................................................................................................ 11 3.2.1 Products .............................................................................................................. 12 3.2.2 Pricing Strategy ................................................................................................... 14 3.2.3 Placement ..............................................................Error! Bookmark not defined. 3.3 SWOT Analysis ......................................................................................................... 16
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3.3.1 Strengths ............................................................................................................. 17 3.3.2 Weakness............................................................................................................ 18 3.3.3 Opportunities ....................................................................................................... 20 3.3.4 Threats ................................................................................................................ 20 3.4Competitive Strategies................................................................................................ 22 3.4.1 PSO Logo ............................................................................................................ 23 3.4.2 Industrial Cluster ................................................................................................. 24 4 LEARNING AS AN INTERNEE ........................................................................................ 25 4.1 My Duties at PSO HOUSE ........................................................................................ 25 4.2 Accomplishments....................................................................................................... 26 4.2.1 Tabular In-house data ......................................................................................... 27 4.2.2 Pie charts ............................................................................................................ 30 4.3 My Learning Experience ............................................................................................ 37 4.4 Problem Encountered ................................................................................................ 38 4.5 My Career Pathway ................................................................................................... 38 CONCLUSION .................................................................................................................... 39 ANNEX 1 ............................................................................................................................... i PSO House Survey Questionnaire ..................................................................................... i

TABLE OF FIGURES

Figure 1: Organization Structure ........................................................................................... 3 Figure 2: Hierarchy ............................................................................................................... 4 Figure 3: Supply Chain ....................................................................................................... 15 Figure 4: SWOT Analysis Matrix ......................................................................................... 17 Figure 5: Car's Oil Change.................................................................................................. 30 Figure 6: Brand of Oil .......................................................................................................... 30 Figure 7: Uniform Quality .................................................................................................... 31 Figure 8: Gender ................................................................................................................. 31 Figure 9: Recently Launched PSO Product ........................................................................ 32 Figure 10: What is Carient Used For?................................................................................. 32 Figure 11: Reference to PSO .............................................................................................. 33 Figure 12: Difference between Carient Ulta and Extra ........................................................ 33 Figure 13: How you Improve Brand Image ......................................................................... 34 Figure 14: Awareness of Laser Coding ............................................................................... 34 Figure 15: Perception of Brand Image ................................................................................ 35 Figure 16: Awareness of Variants Deo ............................................................................... 35 Figure 17: Venue of Oil Change.......................................................................................... 36

1 Background of the organization

1.1 History

PSO is formed by three companies, named as, ESSO, Pakistan National Oil & Dawood petroleum on December 1976. Board of Management, Managing Director, Management Committee, Executive Committee, Code Leadership Team, and Employer Leadership Team are the part of this organization & nineteen individual departments working under these committees. 1On December 1976, government merged PNO and POCL into SOCL and named it as PSO.2

1.2 Vision of the Company

To excel in delivering value to customers as an innovative and dynamic energy company that gets to the future first. 3

1.3 Mission
To ensure availability and security of sustainable supply of oil and gas for economic development and strategic requirements of Pakistan and to coordinate development of natural resources of energy and minerals.4

AMCY5. (n.d.). Retrieved September 11, 2011, from www.amcy5.com: http://www.amcy5.com/projects/marketing/ 2 Pakistan state oil. (n.d.). google. Retrieved september 22, 2011, from www.pso.pk.com: http://www.psopk.com/about_us 3Pakistan state oil. (n.d.). google. Retrieved september 22, 2011, from www.pso.pk.com: http://www.psopk.com/about_us

4Pakistan state oil. (n.d.). google. Retrieved september 22, 2011, from www.pso.pk.com: http://www.psopk.com/about_us

1.4 Companys Profile

PSO is playing very important role in Pakistans economy. It is a progressive organization in Pakistans energy sector. It is the largest oil based organization and recently working on distributing and marketing of different products in different ways. It has also a strong network chain of retail outlets that facilitates automotive sector. It was the first one that become member of world economic forum and was graded with the award named as, Karachi stock exchange top award Being Pakistans largest oil company PSO has 3612 outlets. Out of them 1610 are upgraded by its vision retail programme. This vision retail programme help to give the new features like electronic dispensing, business centers, convenience stores, easy payments center and customer friendly staff which serves and support its customers in a unique way by adding more value to its value chain system. PSO, as its name explains is Pakistan state oil; it is not just helping only in one way but also support the whole country by meeting the fuel requirement of Pakistan railway, Pakistan army, WAPDA, agriculture sector and many government sectors. For the quick access of services PSO is trying to become at the top oil distribution of the list to facilitate its customers. To improve this, PSO introduced PSO loyalty cards that have been awarded to their loyal retail customers. It also make easy to its customers by launching fleets cards and corporate cards.

Pakistan state oil. (n.d.). google. Retrieved september 22, 2011, from www.pso.pk.com: http://www.psopk.com/about_us

2 Organization Structure5 Board of management

Senior Manager

Management committee

Executive committee

Staff leadership team

Code leadership team

Marketing

Finance and it

Supply chain Retail business Consumer business HR and services

Finance

Operations

Corporate affairs

IT and communication

Supply Aviation, Marine, Export Chemicals Construction and Retail facilities

Corporate planning

HR and IR

Logistics

Procurement services

Admin and Security T and OD

Legal affairs

Figure 1: Organization Structure

Corporate and fleet cards, brand managemen t Lubricants

Corporate communication

asif, s. k. (2011, july 10). (f. sadiq, Interviewer)

2.1 Organization structure

In PSO, for each department there are general managers. Company uses mostly decentralized system for it each department is handle by its department general manger and decisions but some time in some situations it has to take centralized decisions in some cases. The general manager is working under the supervision of deputy managing directors.

Hierarchy 6

Chairman

Managing director

Management committee

Board audit committee

Executive committee

Employee leadership team

Figure 2: Hierarchy

Board human resource committee

Board, finance & operation committee

Core leadership team

Hierarchy. (n.d). retrieved July 01,2011, from Pakistan annual report 2009

2.2 Operation Departments

PSO house consists of nine floors where different departments are working. ground floor is also reserve by working departments.PSO has five main departments that are working for the quality selection, better services, promotion strategies and easy access of products. These all departments are handling the data of all PSO petrol stations situated in entire country.7 The departments are as follows. Training and Organizing Development department Retail and seals department Industrial consumer department Brand management department

2.3 Training & Organizing Development Department

According to its newly modified vision statement, the company has implemented many organizational changes. After restoring its international slandered, new management come handling under the T&OD and this department is working under the supervision of Sir Vaqar-a-khan. He is supervising this department along with their, skilled, energetic training officers who are greatly taking part in materializing new vision.

2.4 Retail & Sales Department

Retail department is actually working with the petrol pumps. It plans to increase the sale of existing petrol pumps and also plan for new petrol pumps. It gives some targets to pumps owner which they have to achieve in specific time. The main focusing task for retail is making new vision programme of outlets. It makes decision
7

Operation department (n.d). retrieved July 10,2011,from http://www.amcy5.com/projects/marketing/

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on the basis of outlets location, sales capacity. There are three points under the observation of retail department when it is going to make a new vision.

100% contribution by company 50% contribution by company 100% contribution by dealer It is restricted by the government of Pakistan to change the vision but as shell is its competitor and adopting this policy to change its vision so PSO also has to adopt this policy.

2.5 Industrial Consumers Department

Industrial sector is very important for PSO. It deals with product marketing for example oil, diesel, lubricants and petrol. Its main consumers are WAPDA, army, railway, sugar mills etc.pso also helping in agriculture sectors. It has 700 agency networks working for it.

2.6 Lube Sales and Agency Trade Department

This department is working with lubricants. Lube sales and agency department plays very important role in manufacturing and promotion of lubricants. Different version of lubricants for different machinery is manufacture by this department.pso lubricants are manufactured in Pakistan. It has 10 blending plants: 3 in Karachi, 1 in Lahore 5 are on partnership. Promotion activities are always performed on petrol pumps. The reason is that petrol pumps are very directed to its customers and this strategy always gives quick response to company by its customers.

2.7 Brand Management Department

This department is very important for advertising. All promotional activity is implemented by this department. It is also concerned with packaging. The main focusing work of branding is to tell the different between pso products and its
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competitors especially SHELL and CALTEX. Advertising and packaging is a companys promise of differentiation from other competitors.

2.8 Operation Department

The designing of new petrol pumps, the choice of new area, expenditure, size, budget estimation and all other facilities are provided by this department but the finance department pays this amount and the construction is done by the construction department there are two types of budget.8 1) Capital Budget (annual) 2) Revenue Budget

Operation department (n.d). retrived july 10,2011,from http://www.amcy5.com/projects/marketing/

3 Marketing Strategy
3.1 Business Process Analysis.

3.1.1 Lubricant Group

I do my work practice in marketing lubricant group. I was not only observed the work but participate in it. I learned here how to take interview, how to get information, what the mode we have to use when we are taking feedback. The detail I have gather from retail and high street visits, I want to share. 3.1.2 Lubricant market in Pakistan 9 2008-2009 Total demand of the Pakistani market in terms of lubricants is 390,000 Metric Tons. It includes all the major cities and villages across the country. In 2008 there were several brand building campaigns for PSO lubricant range Deo and Carient. There were trade schemes were introduced that offered free products, gifts and discounts to channel members. There were 45 Shamiyana meetings that were held in different divisions to have direct interaction with customers. It was in this year that PSO won the lubes tender for Railways and Navy. It had launched new SKUs, these includes Carient Ultra 4 litres, Carient Plus 1 liter and 3 liters, DEO 8000 1 liter and 10 liters, DEO 5000 4 liters, DEO 5000 4 liters, DEO 3000 10 liters and DEO 2000 4 liters. PSO also sponsored 43rd Annual sugar convention for the 7th consecutive year.10

2009-2010 In the year lubricant market has increased to 26.6% from 23.3% comparison to last fiscal year. It was the 44th annual sugar convention for the 8th consecutive year

lubricant market in Pakistan. (n.d). retrieved July 6,2011, from personal interview sir asif

while maintaining the market leader position with 60%. It was in this year that PSO had won tender for Pakistan Railways for 3680Kls and Pakistan Army for 462 KLS.

2010-2011 It was in this year that PSO had launched its Diesel Engine Oil Range in small packs with new colors. Furthermore for the first time in Pakistan, Generator Oil has also been launched in 1 liter pack keeping in view the generator usage. Furthermore Lubricant technology has developed different lubricant grades as per requirement of OEMs. CNG Lubricant Conference has been conducted 3.8 million liters were sold in May breaking the record of the last 3 years sales in month.

Demand breaks up and market share Year by year market progress since 2008bricant Share holders report 2008, 2009, 2010 Market share progress over these many years

3.1.3 Report Samples This report is based on visits to the Akhtar colony market and trips to the two distribution centers in Federal B Area and near Baloch colony. FMCG model (Ideal situation)

3.1.4 Problems One of the major problems we noticed during a visit to the Akhter Colony market was the distribution of lubricants and the availability of stocks. This was mentioned by the people at the Abbasi Autos. Even though they were visibly on very good personal terms with the PSO sales team, they had no PSO products on the shelf. We enquired as to why this was so, considering they were professing loyalty to the brand PSO. The shopkeeper remarked that he had been asking for Deo 3000 and Carient but stocks were not available. He had contacted the TSO of the area, Noor Iqbal but even he was unable to help because there were no stocks at the distribution centre
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either. The BM, Mr.Zakir was not adequately informed of this problem. Of course we cannot rule out the possibility that this was a one-off incident but if this were not to be the case, then there is also another issue of communication within the sales team and the managers here. More effective communication within the team could improve service and coordination in delivery.

3.1.5 Brand Image and ATL11 Shopkeepers work in two different ways on hi-street, one segment which is demand based and the other which is inclined towards more persuasive methods of selling. Shopkeepers who base their operations and sales on demand insist that PSO does not work to create enough demand in the market through ATL activities and thus, even with the best profit margins, they find it infeasible to keep and sell PSO. They stressed that PSO needed to improve its brand image and product awareness through ATL activities as well take measures to counter fake products and such suspicions present among customers. These ties in with the next issue we will be raising.

3.1.5 Counterfeiting and Laser Coding A big issue that was raised by all the people we met is that the credibility associated with PSO products does not translate into sales because of counterfeit products available in market. Now this is in major part only a perception as PSO has taken innovative measures to counter such counterfeits. Where PSO has failed is to create awareness about the measures taken to distinguish its products from counterfeits. This includes the innovative laser-coding on the packaging which many people dont know about and these needs to be promoted more actively. This was witnessed by us as the sales team was proactive in pointing out the laser-coding feature in the PSO packaging. However the sample is too small to accurately assess whether this is being done effectively. However there was an opinion among shopkeepers that PSO isnt doing enough to counter fake products which suggests that PSOs

11

Brand Image and ATL. (n.d). retrieved july 12,2011, from lubricants market visit

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measures against counterfeit products especially laser-coding are not promoted enough and thus not recognized by the general consumer. No teams engaging mechanics in particular (other companies do)

In our visit, we also found that there was no particular PSO team engaging mechanics specifically like other companies were. In the Akhter Colony market, there were a lot of mechanic shops which tended to cars and thus demanded petrol engine oil, a segment apart from the truck-wala diesel segment. These mechanics were customers to the shops dealing in lubricants. PSO through its high street network has managed to penetrate shops such as Abbasi autos but smaller scale mechanic shops are not yet being engaged, which is very important because their recommendation plays a huge role in

Competitor efforts (Shell, Total) Price distortion

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3.2 Marketing Mix

3.2.1 Products12 Single Grade Petrol (Premier Plus) High Speed Diesel (HSD) Castrol GTX

3.2.1.1 Single Grade petrol

Mineral and synthetic oils are the most hydraulic oils. Blends with most greases, pastes, 2-stroke fuel oil, cutting oil, chain oil, compressor oil, axle oil, drilling lubrication, tapping fluids, hydraulic oil, mining fluids, petrol, diesel, marine fuel oil, scour able oils, coolants, anti freeze, soluble cutting fluids, penetrating oils, flushing oils, general purpose lube oils. Benefits SGP does not flake, melt, crack, expand, creep, scuff, drag out, contract, migrate, wash off and it helps to be well, and prevent from irritation, vibration, noise, frictional heat and weight loss. Moreover it improves loading on bearings and product finishing. So SGP, which is known as petrol, is PSOs fast moving product. It also claimed that it is profitable product as its consumption is very high.13 3.2.1.2 Castrol GTX

Multigrade super high performance oil for use the thickness range of SAE 20W-50, gives the fast circulation and adds protection during set up from cold, where 80% engine sport may occur, with extra protection for engines operating in hot and dusty climates.

12

Products. (n.d). retrieved July 15,2011, from http://www.amcy5.com/projects/marketing/

13

benefits. (n.d). retrieved July 15,2011, from http://www.amcy5.com/projects/marketing/

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Benefits It increase engine life, Improves oil pressure and consumption It is also considered as one of the fast moving product. Independent power plants, WAPDA and etc mostly demand for it. It is used as lubricant in the petrol consumption cars.14

3.2.1.2.1 Range of lubricants15 There are three categories for PSO lubricants. Automotive oil Industrial oil Fuel oil The company used aggressive promotional activity to shift the demand of customers of other companies. As for the pricing, so always use low price of lubricants as compared to its customers but the petrol prices are set by the government 3.2.1.3 High Speed Diesel

High speed diesel is one of the best moving products among other products of PSO. It is usually used by heavy engine vehicles and automobiles. It is used in these areas: Agriculture Industry General Public

It is used in large, slow speed marine engines and automotive engines as well.16
14

benefits. (n.d). retrieved July 15,2011, from http://www.amcy5.com/projects/marketing/ 15 range of lubricants. (n.d.). Retrieved july 22, 2011, from http://www.psopk.com/about_us

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3.2.2 Pricing Strategy

3.2.2.1 Petrol & Diesel

Petrol and diesel are placed under the head of fuel oil, so that the pricing strategy of both is same which shall be discussed below: The OCAC (Oil Companies advisory committee)regulates the price of oil all over the country: because of it the oil prices offered by PSO,SHELL,CALTEX remain same17 3.2.2.2 Castrol GTX

There is also no hard and fast rule for the pricing strategy of castor GTX. But still there is a defined strategy of pricing. In case of Castrol GTX is a lubricant, all oil companies set their own prices which means prices of lubes vary from PSO, Shell and Caltex. These prices are based upon. Cost Handling charges Storage charges

Because some companies have to bear less cost handling charges as well as storage charges thats why; this product of PSO has greater demand in the market. Being a government company, PSO has to bear less cost and handling and storage charges. Lubricant prices are recalled after ever 4 to 6 months.PSO has defined its pricing strategy as competitive prices. There are two factors are in front of company when they have to set the prices Profit services Company set their prices lower than their competitors In case of lubricants.

16

High speed diesel. (n.d). retrieved July 22,2011,from http://www.amcy5.com/projects/marketing/ . 17 Petrol & diesel. (n.d). retrieved July 22,2011,from http://www.amcy5.com/projects/marketing/

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3.2.3 Placement

Supply Chain18

Supply

Imports

Oil refinery

Operations

Logistics

Pipeline

Tank lorry

Railway

Customers

Aviation

Locomotive

Automotive

Power sector

Figure 3: Supply Chain

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Supply chain. (n.d) retrieved July 26,2011, from PSO annual report 2009

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3.2.3.1 Distribution Channel or Intermediary

For Single Grade Petrol (SGP) and High Speed Diesel (HSD), the most possible placement channel is the products movement from wholesalers to retailers. For general retail outlets; this facility is available in the form of tank Lorries. For industrial needs, railway tank, wagons are the most appropriate source19. Previously Government of Pakistan had been paying the cargo charges of their placement but now for the product movement, retailers have to pay themselves the cargo charges. When the placement of Castrol GTX is concern, different lube vans are available which takes the lubes from producers to dealers of petrol pumps. Many agencies are formed to deliver the lubricants from producers to consumers as an easy access. For the delivering of product PSO has.

Tank Lorries 13400

Railway tank wagons 111111 1120 112011

pipelines 13

Table 1: Logistics

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Distribution Channel or Intermediary. (n.d) retrieved June 25, 2011. from http://www.amcy5.com/projects/marketing/...

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Internal

Product quality Storage capacity Innovation Strength Strengths

Old retail outlets Untrained staff

weakness Weakness

Enter in new business Utilization of disaster element Agencies in urban areas Opportunities Opportunities

External

Unexpected low prices Availability of alternatives Untimely delivery of stock Threats Threats

Positive Figure 4: SWOT Analysis Matrix

Negative

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3.3.1 Strengths20 3.3.1.1 Product Quality

Product quality is very important in the progression of any industrial sectors. PSO Product quality is very high. Because it adds multigrade super high performance oil for use of thickness range of SAE 20W-50, gives the fast circulation and also adds protection to the engine. It is a positive point that converts its value in to its strength. Customers loyalty with PSO product is prove of its better product quality.PSO quality reputation increases its strength day by day. 3.3.1.2 Innovation Innovation is a PSOs very important and old strength. It always represents PSO very customer caring as compared to its competitors. It is the first one who came with the Innovation like auto car wash and also innovation of fleet cards as compared to its competitors. It helps PSO to differentiate with its main competitors like SHELL & CALTEX. It is the strength that attracts the customers and builds the loyalty with the organization. 3.3.1.3 Storage Capacity

PSO has 80% of total oil storage capacity in Pakistan. It is a positive point that adds in PSO SWOT analysis as strength. The organization just not only fulfills individuals but also helps Pakistan to make it, financially, economically and socially strong.

20

Strength (n.d). Retrived July 18, 2011. From sir fedrik personal interview

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3.3.2 Weakness21 3.3.2.1 Old Retail Outlets

Old retail outlets are PSO weakness. Old retail outlets do not attract the customer even the permanent customers some time seems very fade up with the old retail outlets. Some lubricants dealers are satisfy with the margin given by PSO to them. But they were saying, PSO should redesign its old retail outlets so that it can attract the new customers. They said that total offered them a package to reinstruct their shops and expand it up to 3rd floor and also moderate their shops with electric lift systems but they refused to give first rack to their stock because they are satisfy with its margin. On the other hand they said just a stock margin is not enough for a dealer but also customers demand for this stock is also very important. So its old retail outlets are giving a chance to its competitors to come up.

3.3.2.2 Untrained Staff Untrained service staff at the PSO petrol stations is also an alarming point as compared to its competitors. A customer needs both services and product quality. Its untrained staff members cause more weakness to the organization. I participated in a marketing activity, Lube Hangama on PSO petrol stations. I observed employees on stations were under stress. They were misbehaving to the customers. This is a weak point about this organization that there is no any training programme of service staff at pumps.

21

Weakness (n.d). Retrived July 18, 2011. From sir fedrik personal interview

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3.3.3 Opportunities22

3.3.3.1 Enter In New Business

Opportunity to enter in a new market with new business is best for PSO. It is a well reputed organization. Its reliability expressed through the number of its loyal customers. It can enter a new business like automotives. 3.3.3.2 Utilization of Disaster Components

PSO has the best opportunity to utilize the disaster component. For example it can save the flood water and generate the power. It is selling oil to WAPDA for power generation. It can create its demand also in power sector as in industrial sector. 3.3.3.3 Agencies in Urban Areas

PSO is investing a huge amount on the petrol stations. It is a plus point but if it provides easy access of its lubricants by making small agencies in urban areas then it will enter in a new way of leading market. 3.3.4 Threats23

3.3.4.1 Unexpected Low Prices Sale

Unexpected and unusual sale of lubricants at sudden low prices is a harmful threat for it. According to Sir Fadrik, it happens when anyone theft the stock and sold it at low price in the market. When customers come to know about the low prices of lubricants, they demand the same product from PSO at the low prices. Prices are actually high but because of the customer demand, it has to decrease lubricants prices. It is very alarming threat for PSO.

22 23

Opportunities (n.d). Retrived July 18, 2011. From sir fedrik personal interview Threats (n.d). Retrived July 18, 2011. From sir fedrik personal interview

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3.3.4.2 Availability of Alternative Availability of alternative at low price is a threat for the organization. It may be possible that the competitors facilitating the customers with low price and better quality then it will decline the sales example .TOTAL is offering low prices of lubricants as compared to PSO and SHELL. It may be possible that it will shift the demand of price conscious customers towards itself.

3.3.4.3 Untimely Delivery of Stock Untimely delivery of stock to customers is also a threat for it. During my stay at PSO, I came to know customers feedback. Customers were claimed about the late delivery of products or access to products. As a result, customers go to its alternatives. Same the case with staff at pumps stations. If the staff servers are untrained, unethical and dont know about the products they are selling then they are unable to satisfy the customers, unable to providing proper customer feedback to company and cant explain to the company that what is the demand of customers so it will be a threat for the PSO of low sales.

Conclusion and Recommendation Pakistan State Oil is playing an important role in the economic development of the country. PSO is not only a national marketing company but also serves as vehicle of government energy policy. PSO not only shoulders the responsibility of meeting the petroleum needs in all sectors of economy and defense but also undertakes all measures for the conservation of energy by reducing stocks, trans-shipment in handling losses. PSO is supplying oil in even those areas where other companies have refused due to security reasons. My perception about the company have totally changed during my six weeks internship, I met to the point that this is a professionally focused and full organized and developed company. Even it is totally a government sector but it has

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successfully managed its corporate culture.PSO has an edge all over the government sectors. I observed the positive points in PSO that was its strengths and near to be its opportunities in future but as I observed weakness it will be a harmful threat for this organization. After the SWOT analysis I have come with these recommendations that I would like to explain. PSO should redesign its old retail outlets. The old outlets are the reason of sale decline up to some extend. New and fresh presenting of products always attracts the customers. And it is very important for PSO because it is already facing its competitors in the same market. PSO should also hire trained staff or give training to existing staff. Through this way PSO can win customers satisfaction. Every organization in the market want to get customers satisfaction but there is no need for PSO to adopt different way to do so because PSO already satisfy its customers but to increase the loyalty and make strong customer relationship it is compulsory for PSO to give uncompetiable service to its customers.

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3.4 Competitive Strategies

PSO entered in a new way where petroleum product has been treated now as FMCG model. Marketing played very important role in it as we can say that its all about marketing. PSO is not creating its demand but actually shifts their demand. There is no as such segmentation as far as fuel is concerned, but services are targeted towards different segments. PSO introduced Fleet Cards for different companies. The customer can buy the fuel on credit for the month by this card and have to pay back at the end of the month. Same is the case with corporate loyalty cards that are offered in the market for the same services as fleet card is performing the only difference of individual car. Its target market is a common man; moreover there are different type of lubricants and different target market for each, but there major target market is truck drivers, so also has different forms of the same products for different category of consumption like for 3000cc vehicle, for 8000cc vehicle, for petrol vehicle, for CNG running vehicles and also for generator.

3.4.1 PSO Logo

PSO logo conveys a massage to its customers that PSO is providing a progressive and environmental friendly organization.PSO indicate this in its new corporate logo.

In this logo there are three colors, yellow, blue and green. The green color represents that PSO is a patriotic, united and domestic organization as this color represents all this in Pakistani flag. The background is of blue color that represents sky and yellow color is used to represent the sun light.
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In short, the colors selected in PSO logo is actually representing that it is completely conversant with environmental needs and PSO operations behavior is most in eco friendly manners. As compared to its competitor SHELL logo, it is not using green color. It is not showing the patriotism, unity as this all is present in Pakistani flag and PSO logo.

3.4.2 Industrial Cluster PSO has many competitive advantages .It has the advantage of industrial cluster. Its LMT plant is basically managing this activity. All the process from manufacturing to finished goods is occur in the LMT. The competitive advantage in this process is its industrial cluster. It is manufacturing its lubricants bottles in its lubricants manufacturing plant with the manufacturing of lubricants but its competitors, SHELL & CALTEX are importing these bottles from other countries. This industrial cluster gave edge of low price to PSO.

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4 Learning as an Internee
4.1 My Duties at PSO House

1. High-Street visits on lubricants 2. Conduct In-house survey to know about employees awareness about lubricants 3. Find out the problems and loops of PSO lubricants by its competitors 4. Make a short report of pie chart on in-house survey 5. Make a long report on PSO lubricants 6. Organize marketing activity, LUBE HANAGAMA on different PSO COCO sites 7. Visit to LMT (lubricants manufacture terminal) 8. Attend Shamiana meeting I had to visit different PSO terminals for getting information for my lubricants report. This information helped me a lot to make my short and long reports. I had to conduct in-house survey for checking employs awareness about lubricants and presented it to my supervisor, Sir Asif. I had to visit high streets, attend Shamiyana meeting, took personal interviews from Sir Asif, Sir Vaqar-a-khan, Sir Khawja Amir, Madam Kinza, Madam Rabia for getting more information about PSO. Submitted report to supervisor. I also participated in marketing activities like Lube Hanagama at AB Ghazi petrol pump. It was a competition between four groups that which group will win the large numbers of lubricants sale. My group name was lubricants group 3 and I am very glad to share my competition experience that we are the winner of this competition. We sell 325 lubricants in a day. I also contact staff, find out the problem or loops, and evaluate the finding.

25

4.2 Accomplishments

I tried my best to accomplish all the responsibilities or targets which assigned to me during my internship. The supervisor assigned me duties and I fulfill the requirements on time and they admire my capabilities of work. I accomplished following the tasks during my internship. Daily report to Sir Asif in detail of last day work Completeion of pie charts of In-house survey Completion of detailed report on lubricants Complete the excel sheet on in-house survey Win the high seals by marketing activitry, Lube Hangama.

26

4.2.1 Tabular In-house data

Brand of Vehicle T/M oil

uniform quality

recently launched CNG Oil Plus 1

usage Carient

of

preference to pso

differ

PSO

litre CNG Oil Plus 1

petrol engine

Y Y

M T

PSO PSO

N N

litre Blaze

petrol engine petrol engine

Y Y

Y Y

Y N N Y Y Y

O Caltex

N Y N

Blaze CNG Plus 1 litre CNG Plus 1 litre Blaze CNG Plus 1 litre Carient

D petrol engine petrol engine petrol engine petrol engine petrol engine

N N Y Y Y Y

N N N N Y

M M M

PSO PSO

Y N N

Y Y Y

M M M

Shell PSO PSO

N N Y

DEO Carient Carient

petrol engine petrol engine P/C

Y N

Y Y

M M

PSO PSO

N N

CNG Plus 1 litre CNG Plus 1 litre

P P

Y Y

N N

Y Y Y Y Y Y Y Y N Y Y

M M M T T M T M M M T

Shell PSO PSO PSO PSO Castrol PSO Shell Castrol PSO PSO

N Y N Y N N N N N N N

DEO Carient Blaze DEO CNG Plus 1 litre CNG Plus 1 litre CNG Plus 1 litre Blaze Blaze Blaze DEO

P P P

N Y

N N

Y P P P P C P P Y N Y Y N Y Y

N Y N Y Y Y

Y Y Y

T M M

PSO PSO PSO

N N N

Carient Blaze CNG Plus 1 litre

C P P

27

Shell

Blaze

Y Y

T T

Castrol PSO

Y N

N Y

N Y

Y Y Y Y Y Y Y Y

M T T T M T M M

Shell Shell PSO PSO PSO PSO Shell O

N Y N N N Y N N

Carient DEO CNG Plus 1 liter DEO DEO DEO CNG Plus 1 liter Blaze

P P P P P D D P

N Y Y N Y Y N Y

N N N Y N N N N

Y N Y Y Y Y

PSO PSO

N N Y Y Y N

DEO DEO

P P

Y Y

Y Y

M T M M

Castrol PSO Total PSO

Blaze DEO Carient

Y N N N

Y Y

M M

ZIC PSO

N N

DEO Blaze

CNG P

N Y

N Y

Y Y Y N Y

T T M NA M

PSO PSO PSO NA PSO

N Y Y N Y

Blaze Carient DEO CNG Plus 1 litre DEO

P P P P P

Y Y Y NA Y

N N N NA Y

Y Y N Y Y Y Y Y

T M NA M M T T T

PSO PSO NA Shell PSO PSO Caltex PSO

DEO CNG Plus 1 litre

P P P P P P

N Y NA N Y Y N

N N na N Y Y N N

NA N N N Y N

CNG Plus 1 litre CNG Plus 1 litre Blaze

CNG Plus 1 litre DEO C

Shell

Carient

28

Y Y Y y Y Y y

M T M M M T M

PSO Castrol PSO Castrol PSO ZIC PSO

N Y N Y N N Y

DEO

P P

Y N Y Y Y Y Y Y Y Y Y Y

Blaze DEO CNG Plus 1 litre CNG Plus 1 litre DEO

P P P P P

Y y N y

M t

PSO PSO

N Y DEO

P P

Y Y N

N N N

PSO

Carient

CNG

y Y Y

M M T

O Shell PSO

N N

DEO DEO

petrol engine petrol engine petrol engine

N N Y

N N N

Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y

T M M T M T M T M M M M M M M M M M M M M M M

Shell Castrol PSO ZIC Toyota PSO Castrol PSO PSO PSO PSO PSO CALTEX PSO PSO PSO PSO PSO PSO PSO PSO Caltex PSO

N N Y N N N N

CNG Plus 1 litre CNG Plus 1 litre DEO CNG Plus 1 litre CNG Plus 1 litre DEO DEO CNG Plus 1 litre

CNG P P P P P P

Y N Y N N Y N Quality

N N Y N N

N N Y Y Y N N N N Y N

N N N N Y Y N N

DEO CNG Plus 1 litre CNG Plus 1 litre Blaze Blaze

D P P P P P

Y Y Y Y Y Y Y Y Y

DEO Blaze

P P petrol engine

N N Y Y N N

DEO DEO CNG Plus 1 litre Carient CNG Plus 1 litre CNG Plus 1 litre

petrol engine petrol engine petrol engine petrol engine petrol engine petrol engine Y Y Y N Y Y Y Y N N

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4.2.2 Pie Charts

How often do you change your car's oil?

2 5 Time 29 Mileage Others 64 Not Answered

Figure 5: Car's Oil Change

Brand of Oil

20

PSO Caltex Zic 64 Shell Not Answered

11 1 4

Figure 6: Brand of Oil

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Uniform Quality
8 24 Yes

No
Not Answered 68

Figure 7: Uniform Quality

Gender
15 14 71 Male

Female
Not Answered

Figure 8: Gender

31

Recently launched PSO product

13 29 29 18 11 DEO Blaze Carient Cng Plus 1 litre Not Answered

Figure 9: Recently Launched PSO Product

What is Carient used for?

14 4 Petrol engine Cng engine diesel engone 82

Figure 10: What is Carient Used For?

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Preference to PSO
10 24 66 Yes

No
Not Answered

Figure 11: Reference to PSO

Difference between Carient Ulta and extra

4
42 54

Yes
No Not answered

Figure 12: Difference between Carient Ulta and Extra

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How can you improve brand image ?

18 50 25 6 Advertising Packaging

Quality
All Not Answered

Figure 13: How you Improve Brand Image

Awareness of laser coding

3 38 59 Yes No Not Answered

Figure 14: Awareness of Laser Coding

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Perception of Brand Image

Reliable 33 46 Affordable

Premieum
Cheap alternative Not Answered

12

4 5

Figure 15: Perception of Brand Image

Awareness of variants Deo

25 3000/5000/8000 7 68

2500/5000/8000
Not Answered

Figure 16: Awareness of Variants Deo

35

Venue of oil change

6 30 43 1 20 Mechanic Petrol Pump Lube shop Others Not Answered

Figure 17: Venue of Oil Change

36

4.3 My Learning Experience

It was a great experience in PSO. I was very glad when I joined PSO as it was a great opportunity for me.PSO is not only a progressive organization but also has a great value as a best internship programme in all over the Pakistan. Internship programs are planed to give a practical experience to the students of what they have studied in their class rooms and books and they proved it was very happy to see the things in actual way that I read in my books or always listened about them. This was a great place. I met some well-known people. Working with my assigned group was scary at first, especially when come one week late was in lubricant group. Lubricant was boring at first till Sir Muzamal has given me its briefing. Then I got to do some market visits and survey. I would like to work in this sort of role as long as it is a busy place. It was really a wonderful experience to work in PSO.I saw here practically work that I had just read in book that how a large organization handle work actually. . This experience was really a pleasant surprise for me because from it I have learnt a lot and get a chance to met different people in the organization that how are they working and handling the whole organizations also came to know that what the corporate culture is. Throughout the course of my internship I was encouraged and guided by my supervisory staff. Their professional handling and trust made me to excel for continuous improvement and simultaneously gave me the confidence to accomplish my projects as a winner. It can also say that it was a period of self-discovery that I can identify my creativity, my skills, my working capacity and I realize that how far I can go. PSO is a government sector having its separate organization culture, rules and ethics. Equity and mutual respect are the core values which I observed. It was a great experience to do internship in PSO. This internship was full of working experience. During my internship got a lot of experience in PSO. During my internship, I observed that there are different units that are working under one shad
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but doing its work by the same mission to achieve the goals. PSO has latest products made by latest technology for its services and they are serving the local market very well. PSO has open door policy for all tackle all problems.

4.4 Problem Encountered

PSO is a developed organization in of Pakistan. The environment that was provided to us for our practice was really good. During my practical work, I also had suffered some problems. For example, when I had to visit oil market even it was totally for males only. Moreover I have to face some culture difference problems there. It was first time in my life to work with Oil Company; I did not know anything about oil when I entered in PSO. I have to face some problems because I could not identify, even I could not understand the language used for oil, for example lubricant but as the time started, I start working on it. My working main focus was on oil so I tried to get more and more information of oil.

4.5 My Career Pathway

This experience has been invaluable for me. It helps me to know about my guts and qualities that should be in a successful businessman. Now I have a much better understanding of how I can undertake jobs that will be in large or small industry but not limit me to one area within that industry.

38

Conclusion
Making an internship report of internship as being a member of lubricants group was really very great experience throughout my academic career. I visited the high streets to gather information about lubricants and customers response for lubricants. Usually there is a strong believe in consumers that retailers at high streets does not properly satisfied them when they asked about the products. But it is a false concept, as for as my experience was concerned. I was informed of everything I required. What I believe is that this type of practical study improves interpersonal and communication skills. So there should be assigned this type of assignments and projects to enhance our capabilities.

39

Annex 1
PSO House Survey Questionnaire

1. Do you own a vehicle / bike? a) Yes b) No

2. Do you change oil according to time period or mileage? a) Time period b) Mileage

3. How often do you change the oil, in terms of time period? a) 1 Month b) 2 Months c) 3 Months or More

4. How often do you change the oil, in terms of mileage? b) 0-3000 km b) 3000-6000 km c) More than 6000 km

5. Which brand of oil do you prefer? a) PSO b) Castrol c) Caltex d) Shell e) Total

f) Others Specify Brand Name ___________ 6. Do you believe all lubricants are produced through a uniform formula and procedures and are of the same quality? a) Yes b) No

7. Which was the most recently launched product of PSO? a) DEO b) Blaze 4T c) Carient d) CNG Plus 1 Ltr

8. Carient is used for which engine specifications? a) Diesel Engine b) Petrol Engine c) CNG Engine

9. Do you prefer PSO, if yes then why? If not, then why? a) Yes, Reason:______________________________ b) No, Reason:______________________________

10. Can you differentiate between Carient Extra and Carient Ultra? a) Yes b) No

State the difference ________________________________ 11. In order to improve PSOs brand perception what should be done? a) Focus on advertisement and promotions. b) Improve Quality. c) Improve Packaging. 12. Are you aware of the laser coding done in each of PSOs products? a) Yes b) No

13. What comes to your mind when hear the name PSO? a) Reliable b) Premier Brand c) Cheap Alternative d) Affordable 14. The automotive lubricant Blaze 4T is used for which kind of vehicle engine? a) Cars b) Motor bikes c) Trucks d) Rickshaw

15. What are three different variants of DEO series? a) 1500, 3000, 5000 b) 3000, 5000, 8000 c) 2500, 5000, 8000
ii

16. Which is your preferred means of oil change? a) Mechanic Shops b) Service Stations / Petrol Pumps c) Oil Change Outlets/Lube Shops 17. Rank the below mentioned lubricants of the scale of 1-6 (1 Lowest, 6 Highest) a) Shell Helix HX3/HX5/HX7 b) CNG Plus c) Mobil d) Carient Plus/Ultra e) Havoline / Havoline Formula f) GTX / Magnatec 18. Rank the below mentioned lubricants of the scale of 1-5 (1 Lowest, 5 Highest) a) Blaze 4T b) Shell Advance S4 c) Total 4T MCO d) Castrol Active 4T e) Caltex Havoline SF 19. What lubricants characteristics you look for while choosing motor oil? a) Brand Name b) Performance c) Reliability ____ ____ ____ ____ e) Price f) Packaging ____ g) Availability ____ ____

d) Recommendation

Rank the above on the rate of 1-7 (1 Lowest, 7 Highest)

Gender ________

Department ____________

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