MARKETING ASSIGNMENT

Group Members:

Alina Nadeem FA17-BBA-031

Ahmad Khawaja FA17-BBA-021
Aqsa Zaheer Janjua FA17-BBA-038
Shahbaz Waseem Malik FA17-BBA-153

Given to
Ayyas Reshi
Sector: Lubricants

A lubricant is a substance, usually organic introduced to reduce friction between

surfaces in mutual contact, which ultimately reduces the heat generated when the
surfaces move. It may also have the function of transmitting forces, transporting
foreign particles, or heating or cooling the surfaces. The property of reducing
friction is known as lubricity. Lubricants are primarily used to reduce friction
between moving surfaces and for better performance of machines. Lubricants can
be mainly divided into three types including mineral, synthetic and bio-based
lubricants. They are being used across a host of industries including automotive,
agriculture, shipping, forestry, and railways. Increasing automobile demand is
fueling the demand for lubricants.

Brand: Shell

Introduction:
Shell Pakistan Limited (SPL) is a Pakistani subsidiary of the Royal Dutch Shell and
has been in South Asia for over 100 years. Shell’s flagship business in Pakistan is
the downstream retail marketing company, Shell Pakistan Limited, which has
interests in downstream businesses including retail, lubricants and aviation. SPL is
the largest lubricant marketing company in Pakistan with over 20% share of the
total lubricant market in the country. SPL’s lubricant business is the second most
profitable within Shell’s Global Lubricant portfolio. The business is focused on
sales of key Shell brands (Rimula, Helix & Advance) to high street traders and the
transportation sector as well as heavy-duty brands to industrial customers and
power sector customers. Shell Pakistan Limited (SPL) has more than 850 retail
stations in more than 330 cities, having 20% market share and is the largest foreign
investor in Pakistan’s oil marketing sector. Shell has been the leader in the
lubricants sector since 2002, currently with more than 40% share of the organized
sector. Shell’s Commercial Fuels business (including commercial transport) is a
significant opportunity for growth.
Target Audience:
Motorist (Car, bikes, trucks etc.) and Industries
Gender: Male Income: 20000/month and above
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Age: 20+
IMC plan:
Abstract:
This is an integrated marketing communication plan for Shell Lubricants, an oil and
natural gas producer under the brand Royal Dutch Shell plc. Under this plan we will
study the IMC plan of Shell in Pakistan.
Shell is currently the market leader in Pakistan for manufacturing best lubricants for
auto engines and industrial machinery. Shell Lubricants brings world-class
technological insights to its products, offering you the best formulations for the
vehicle.
It produces Helix for cars, Advanced Motorcycle engine oil for bikes and Rimula
for Truck Engines.
Situation Analysis: Current Position of the Brand
 Shell Pakistan has partners with Faysal Bank Limited to introduced
unmatched benefits for Faysal Bank customers.
 Shell Pakistan held a first of its kind ‘Shell Technology Leadership
Conference’ in Islamabad, showcasing energy solutions in lubricants, fuel and
technology advancement in the energy industry.
 Shell Pakistan in partnership with Layton Rahmatulla Benevolent Trust
(LRBT) has been working for over 15 years to ensure healthy eyesight of
drivers, customers and community members by offering eye testing for truck
drivers as part of its road safety outreach programme. This year, nearly 400
drivers along with nearby communities were provided free medical treatment
for eye aliments at the eye camp.

SWOT Analysis:
Strengths:
 Strong Market Position: It is one of the largest lubricant company in
Pakistan producing since 2002.

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  Vertically integration: Shell has successfully integrated its business
operations vertically by engaging in exploration and production of natural gas,
crude oil etc.
 Strong exploration capability: Shell has invested heavily in developing and
implementing technology for exploration.
 Strong Research and Development: Shell has been constantly trying to
improve its technologies in order to gain competitive advantage and reducing
expenditure.

Weakness:
 Growing Debt: Shell has experience increase in debt in the past few years.
Increasing debt increases business risks and a subsequent portion of the cash
flow is paid in interest. Increasing financial obligations may affect the
business in future.
 Money Spent on R&D: Many of the profits earned by Shell lubricants is
being used in the research and development leaving behind less profit margin.
 Not offering any bonus Scheme: While competitors are far ahead at giving
extra bonus to the users Shell lags behind.

Opportunities:
 Increasing global energy demand: Demand for cleaner energy resources is
increasing in the world rapidly. Shell is well positioned to take control of the
potential demands in the future.
 Expansions: Shell has been focusing on expanding its operations strategically
across Pakistan in order to cater to energy demands of the rural as well as
urban areas in the future.

Threats:
 Climate change concerns: With increasing energy demands, carbon dioxide
emission in production as well as upstream is expected to increase
which needs to be under control for Shell. Shell needs to find a solution to
reduce its carbon dioxide emissions otherwise Shell may have to face
increasing costs and/or stricter regulations.

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  Competitors: PSO and CALTEX are regularly improving their technology
giving a big competition to Shell in the market.

Communication Objectives:
 Creating Brand Awareness among existing and potential customers.
 Creating Brand Loyalty in the existing customers.
 Avoid Customer Retention
 Conveying Better knowledge about the performance of their products.
 Influencing Customers to buy Shell.

Communication Tools:
Shell uses the following communication tools in order to achieve their objectives:
 Advertisements:
Advertising is a highly prevalent marketing communication tool. Shell uses
advertisements to efficiently get their message to large audiences. Shell uses a
number of different types of advertising, including magazine, newspaper,
television, billboards and internet advertising.
They aware their customers about the new improved technology and products
For Example: Shell recently launched Shell Advance a motorcycle engine oil
and to make people aware about their new product they are frequently placing
ads.
Shell also gives a constant reminder of their product line to the customers.

 Sales Promotions:
Sales promotions are another effective communication marketing tool. Sales
promotions include product demonstrations, contests, displays, free samples,
premiums like buy one/get one free, coupons and other types of incentives.
Shell gives its customer to get free oil change for the first time as a free
sample.
It is recently doing sale promotion in which if a customer buys a pack of Shell
Helix Ultra then he can get a chance to get 2 free tickets to Paris.
It is also doing a lucky draw contest in which if you buy Shell Advance then
upon scratching the card you get Rs. 10, 20, 100 and 200 back and enter a
lucky draw to get 50 CD150 bike and 2 Heavy Bike.
  Direct Marketing:
Shell sends personal emails and SMS to its regular customers as a reminder to
get their oil changed. Also they aware customers about the new schemes they
are using now a days. Direct Emails are sent to convince potential customers.

 Personnel Selling:
Shell sells its lubricants on their own petrol pumps to the consumers directly
and answer all the queries of the consumer at the spot.
They also give retail distributions in different cities from customers can
directly purchase their product.

Budget for Marketing:

According to the financial reports of 2018 the marketing and distribution expense of
shell in 2018 was 6,482,137,000, of which 35% remained for marketing which
equals 2,268,747,950 .
Keeping in mind previous year’s budget for marketing activities, budget allocation
for marketing in 2019 would be:
Daily Marketing Activities : 6,215,748
1 week of marketing activities : 43,510,235

Budget Allocation on 1 week of marketing:

Duration/ Channel Time Slot No. of Ads Price

Date (Reach) (Frequency) (Rs.)
1 week GEO News 09:00 to 24:00 45 4,000,500
Samaa News 09:00 to 24:00 40 3,400,000
ARY News 09:00 to 24:00 50 4,550,000
Express News 09:00 to 24:00 45 2,925,000
Dawn News 09:00 to 24:00 35 1,925,000
PTV Sports 12:00 to 24:00 60 5,560,000
Tens Sports Selected by Selected by 2,100,000
channel channel
24,460,500
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Television Advertising: For a 60 seconds ad the
Via: https://nation.com.pk/23-Dec-2018/info-ministry-slashes-ad-rates-for-tv-channels

Newspaper Advertising: For a display ad (with logo)

Duration Newspaper No. of Ads Rates

(Reach) (each day) (Rs.)
1 week Dawn 1 185,000
The News 1 26,250
Daily Jang 1 40,000
Express 1 24,500
275,750
Via: https://awamiweb.com/advertisement-rates-pakistani-english-urdu-newspaper-84540.html

Billboards / Banners: Throughout Pakistan

Duration Type Number Rates

(Reach) (Frequency) (Rs.)
1 week Roadside Billboard 70 (different 5,850,000
rates)
Shop Banners 300 1,200,000
7,050,000
Internet Advertising:

Duration Website Reach Price

1 week Facebook 6400 to 40,000 14,000
YouTube 100000/ video 48,000
62000

Total cost on advertising for a week is 31,786,250

The company can easily do the advertising in the budget.

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