Table of Contents

I. INTRODUCTION A. Company Background. B. Research, Design and Methodology. C. Scope and Delimitation II. EXTERNAL ANALYSIS A. Economic Situation B. Socio-Cultural Forces C. Demographic D. Technological E. Political, Legal and Governmental Forces.. F. Natural or Environmental Forces III. INDUSTRY ANALYSIS A. Definition of the Industry Size ROI (industry)

B. Marketing Mix 1. Market 2. Target Market 3. Product/Services

4. Price 5. Promotion 6. Channels of Distribution 7. Competition C. Operation/Production Process Capacity Quality Technology Research and Development D. Industry Financial Performance Growth Ratios Profitability Ratios Liquidity Ratios Leverage Ratios Efficiency Ratios E. Industry Trends F. Industry Problem IV. COMPANY ANALYSIS A. History V-M-G B. Ownership C. Management D. Culture

E. Organizational Structures Human Resources Strategies.. V. STRATEGY FORMULATION A. Input Tools 1. EFE Matrix 2. CPM Matrix. 3. IFE Matrix B. Matching Tools SWOT analysis. GS matrix.

VI.

STRATEGY IMPLEMATION A. Recommendation B. Define your objectives: a. Short-run b. Long-run

I.

INTRODUCTION
A. Company Background TOTAL is one of the worlds biggest enterprises, with a network spanning morethan 100 countries across 5 continents. Its activities cover the entire spectrum of the energy industry, from exploration to refining and production to distribution.With over 20,000 service stations and 29 refineries, TOTAL poses acommanding presence all over Europe, the Americas and Africa. Through its bold moves at expansion, it is fast gaining recognition in the Mediterranean and the Asia-Pacific rim.

The TOTAL subsidiary in the Philippines was established in 1997 as the second largest investment in the downstream oil sector in Asia, with $80-million worth of infrastructure already in place.This includes the state-of-the-art oil distribution terminal in Mariveles, Bataan, capable of storing up to 50-million litres of fuel, and another at the Manila Harbor Center in Tondo, Manila, with a storage capacity of 9-million litres of fuel. Both depots support the Companys thrust to strengthen its retail network, TOTAL has currently 62 service stations all over Luzon.

B. Research, Design and Methodology C. Scope and Delimitation Our group decided to have a research about strategies that we may recommend to our chosen company. We choose a gasoline company because our group mates think of a company that only has a few competitors that competes around their market. We pick Total Gas Company because it is a company that is in the middle of the competition with the possibility of competing with the three big oil companies that we know it has a potential to grow like the top competitors. Majority in our group has a knowledge about total gas company that this company has a cheaper price and reachable by a low class motorist and most preferable by jeepney drivers when it comes to gasoline. The product and services provided by the gasoline companies are similar to each other, thats why our research is not that conflict regarding to its cost or prices, the only differ to the other oil company is that, how they sell their product to the market. Thats why our group would like to find out how total gas company can increase their sales and compete to the big 3 company. Our study will focus only in metro manila because as you can see there are 62 stations of total gasoline and majority of them are compose of the big three company and sum are other competitors around the city and in metro manila has a lot of vehicles roaming around unlike in the provinces, and majority of the public utility vehicles are always use by the people with the population of 111,566,325 which means that the service of the vehicles never stops.

II.

EXTERNAL ANALYSIS

A.

Economic Situation The Philippine economy grew at its fastest pace in 2010 expanding 7.3% this well surpassed the governments target of 5.0% to 6.0% and jumped up from growth of just 0.9% in 2009, reported newspapers in the Philippines. It means that the economy in the Philippines grows fast and the oil companies are one of the reasons why it grows fast because if there are always transactions or delivery that happens they need a vehicle and those vehicles needed gasoline. The economy increase while the sales of the private company also increase because the people are in needs of the commodity or services that they provide. While the demand is low the supply is low and the prices gets high, if that happens the people will suffer for the lacking of supply and demands then the companies will increase their sales and if that happens the economic percentage will go down.

B.

Socio-Cultural Forces Our industry now a day is straggling in the prices of gasoline in the market. The ups and downs of the price because of the companies reasons that the Department of Energy agreed on and we dont have the rights to complain because all of as needed a gasoline to provide our

fastest ways to travel. The people didnt choose a brand, company or types of gasoline; it depends on their choices because some of them are in needs and some are in their most preferable because some reasons like Good in services, low cost compare to the other competitor gasoline station, popularly known gas station by motorist, having a lot of branches that the motorist can easily go to, having a good advertisement in the television, having an Icon and artist that they like and a gasoline station with great promo or discount. Our culture today are evolving and increasing in numbers, it shows that all the time gasoline is needed to provide their transportation 24 hours and if the gasoline price increases always we dont have other alternative for the transportation that uses gases. There are alternative like LPG type of cars but some says that it is not good for the health and some have adopted diseases not knowing by the drivers and some vehicles that is a LPG type are not good and always broken thats why it some of our transportation companies prefer or uses a gasoline type of engine or car and the LPG types needs more improvements for use to use it and some oil companies improve their LPG types of gasoline to a eco-friendly. The gasoline take a big part of our economy today, if the prices of gasoline increase or decrease it takes an impact to our commodities because the transfer of good in the provinces or shipment of goods uses gasoline if the gasoline increases the earning of the seller will decrease because it will go to the gasoline expense and if it will go along all of the things that is related to a needs of gasoline will

increase and the lower types of people can never go along because they will rather prefer walking instead of riding and it will take them the risk of being tired and late in their appointments. As you can see the images of the gasoline are negative or having a bad impression to the consumers, we have nothing to do with that because the nature provides gasoline not the oil companies they just have a machine that can find and create gasoline that they found deep in our planet. If we all be patient and understanding the risk of having a other alternatives like for example using a public utilities vehicle by not using own cars, walking instead of riding, conserving gasoline like not using a vehicle if it is not important and for the companies to be more considerate for the consumer because if the companies will continue telling the people that they dont earn or they always didnt meet their said earnings the people could not trust anymore their sayings and it would take a hard time for the people that will be affecting their problem like individual commuters, students, employees and small family that earns lower the minimum wages.

C.

Demographic

Population (2007 Local Government unit census) Caloocan Las Pias Makati Malabon Mandaluyong Manila Marikina Muntinlupa Navotas Paraaque Pasay Pasig Pateros Quezon City San Juan Taguig Valenzuela Total 1,381,610 532,330 567,349 363,681 305,576 1,660,714 424,610 452,943 245,344 552,660 403,064 627,445 61,940 2,679,450 125,338 613,343 568,928 11,566,325

Area (km2) 53.33 41.54 27.36 15.76 11.26 38.55 21.50 46.70 10.77 47.69 19.00 31.00 2.10 161.12 5.94 47.88 44.58 638.55

Annual pop. Growth Pop. Density (per km2) rate 25,907 12,815 20,736 23,076 27,138 43,079 12,500 9,699 22,780 11,589 21,214 20,240 29,495 16,630 21,101 12,810 12,762 18,113 3.06 1.65 3.41 0.98 1.29 0.68 1.14 2.48 0.87 2.88 1.77 3.04 1.05 2.92 0.87 3.82 2.21 2.12

D.

Technological The age of "easy" oil is over. Today, oil and gas resources must be tracked down in less familiar environments and tapped in unconventional forms.There are still huge quantities of hydrocarbons to be discovered around the world, but they will be increasingly difficult to produce. To develop these technology-intensive resources, we are marshaling substantial financial and human resources, as well as our world-class

R&D organization. We are taking all possible steps to limit the environmental impact of this production and accompany our projects by a roster of community development initiatives. This approach is consistent with our business model and reflects our vision of corporate social responsibility.

E. F.

Political, Legal and Governmental Forces Natural or Environmental Forces Globalization is the first and probably the strongest environmental force that product- and service-oriented firms must cope with is the increased competition and emerging markets resulting from the globalization of most businesses. This phenomenon has resulted in increased competitive pressures in a firm's home country and increased opportunities in foreign markets. This trend will have a negative impact on firms unable to mobilize and seek new markets, but firms wishing to expand their markets will perceive this as a wide-open field in which they can excel. However, it's important to remember that along with expansion into emerging markets comes risk associated with political unrest, unknown competitive forces in those markets, unexpected expectation for products and services, and uncertainties associated with transportation, supplies, labor, and financial exchange rates.The globalization of business has substantial effects on operations. Moving into global markets with products and services creates

new definitions of value. As value changes, so does the creation of value, and so do requirements for processes and capabilities as well as cost, quality, and timeliness. It creates new objectives, but it also creates new challenges. Geographic distances translate into time differences, creating an entirely new set of challenges for managing all resources.

III.

INDUSTRY ANALYSIS A. Definition of the Industry Size ROI (industry) B. Marketing Mix 1. 2. Market Target Market The Companys Target Market is the motorist around the Metro Manila. It aims the Public and Private utilities like Jeepney, SUVs, Trucks, Buses and Cars that goes around the city. The main target that attracts our services and gasoline are the Jeepney because they prefer to our price that is more affordable and having a good services unlike the other gas station that is having a hard time on

entertaining the customer because of not giving them fast services. The Jeepney always goes to the gas station thats why it helps the company to be motivated on franchising more and gives the company the reason for staying in the competition. Next to the Jeepney are the trucks because as you can observed few of trucks are going to the big three gas stations because of being crowded, meaning some of the motorist are only staying for a rest and some are using the comfort room, some are eating and some are not entertained motorist. They likely prefer to go to a gas station that is having the least visited but giving the motorist the full extended services that they need and they can stay for a while because of not being crowded. The Secondary Market are the private utilities like owned cars that is passing along and some are in needs of gasoline and other services that a gasoline station may provide. The potential market could be the buses and SUVs because we all know that some of buses are intact with a contract to some of the gas station that they go if they needed a gasoline and some of the SUVs are a private use vehicle of a company that having a connection to a gas company.

3.

Product/Services

4.

Price

5.

Promotion

Total is giving its customers a chance to own limited edition Transformers toys and drive home a Chevrolet Spark with its Fuel Up and Roll Out promo. Customers get the chance to drive home a Chevrolet Spark 1.2L MT by simply loading up P500.00 worth of any Total fuel (Total ProTec, E10 and Premier Unleaded, Regular gasoline or Diesel) or 4 liters of Total lubricants (Quazrtz or Rubia) or avail of a single purchase receipt worth P500.00 at Bonjour or Caf Bonjour. Any of these purchases also entitles the customer to buy a Transformers 3 limited edition toy for only P100.00 and a raffle coupon. This exciting promo is in line with Totals promise of delivering Total Performance and Total Satisfaction in everything it does, from the services rendered by the crew, convenience of its facilities and performance of its products. At the Transformers screening, Total takes the opportunity showcase the high performance of its fuels and lubricants that are trusted by world renowned experts in motorsports. Giving them a card that they may use or register the cash that they purchase as a point and later they can use the points on redeeming items, prices or free gasoline.

6.

Channels of Distribution

Mariveles, Bataan Total Branches Manila Harbor Center in Tondo, Manila

Consumer

The channel of Distribution starts at Marivles, Bataan having a state-of-the-art oil distribution terminal with a storage capacity of 9-million liters of fuel and Manila Harbor Center in Tondo, Manila having a storage capacity of 9-million liters of fuel. Then it will go to the branches nationwide to provide a gasoline and after that it will go to the consumer like jeepney, SUVs, Trucks, Buses and cars.

7.

Competition

C.

Operation/Production 1. Process Gasoline is a form of refined petroleum that is used primarily as a fuel. Crude oil is pumped from the earth and turned into gasoline

and other products like kerosene and benzene. Gasoline is essential to the world's transportation network. The primary fuel of cars, it powers the internal combustion engines that move most vehicles along the planet's highways and byways. Gasoline is highly flammable and must be handled with care.

1. To produce gasoline you need to find its ultimate source-- this is crude oil. Crude oil, or petroleum, comes mostly from wells drilled in the earth. While once very common in the US, the largest supplies of crude oil are now found in the Middle East. Crude Oil is moved from the well to the refinery. This may be done either through pipes or in a vehicle such as a tanker truck or tanker ship. Crude oil ranges from the "light sweet" variety to varieties that are heavy and sludgy, almost like asphalt or tar.

2. To refine your crude oil into gasoline you will need a rather large facility known as an oil refinery. The traditional process is known as fractional distillation. With fractional distillation, oil--or whatever substance you want to refine-- is boiled in a kind of gigantic hollow tube or column. Different substances have different boiling points. The lower the boiling point the lighter the material. The lighter the material the higher it raises in the giant tube. The petroleum

substances that make up gasoline boil at temperatures of anywhere from 40 to as much as 200 degrees Celsius. This means that, in the usual oil refining process, they are the second from the top in the column--just below petroleum gas and just above kerosene.

3. To get to the next stage of the process, you siphon off the gasoline-type petroleum from the column. This means that you let it flow into a pipe and collect it in another tank. Most gasoline that we actually use is a blend of different petroleum substances with possibly a few other substances added. High-octane gasoline is produced with the help of a catalytic reformer. The catalytic reformer transforms low-octane gasoline from the fractional distillation process into the high-octane gasoline that meets many engine requirements. The hydrocarbon molecules in gasoline are rearranged to make bigger molecules of "reformulate" that are higher in octane and so burn more cleanly. Different streams of gasoline--or naphtha--are blended together to make just the right mixture.

4. To complete the process you will probably have to meet some environmental requirements. These are increasingly strict as because of concerns over global warming and pollution. You will

need to remove some foreign substances from your gasoline. These may include sulfur and ethers. Also, other grades of petroleum such as aromatics like benzene are likely to prohibited. Most of these contaminants are highly toxic and tend to damage the environment. Once you get the gasoline to the proper grade and meet all local and national requirements, you have produced a fully-useable substance. You now have fuel for whatever you need.

2. 3.

Capacity Quality Access to energy As an energy producer, we believe it is our responsibility to facilitate access to energy, particularly for communities neighboring our sites. We want to promote access to affordable, reliable and sustainable energy sources for low-income populations. Energy, a Driver of Development Two thirds of the global population does not have access to modern, reliable energy sources, even though energy is a key driver of economic development and crucial for cooking, communicating and medical care. As an energy producer, we have

an important role to play in this area and have been testing various solutions for more than a decade.

4. 5. D.

Technology Research and Development

Industry Financial Performance 1. 2. 3. 4. 5. Growth Ratios Profitability Ratios Liquidity Ratios Leverage Ratios Efficiency Ratios

E. F.

Industry Trends Industry Problem We all know that Total Gasoline is not that popular in the market because they have lack in advertisements, promotions and etc. that will help them to be recognized. They dont have TV commercials and the objective of the company is not well known that's why the consumer didn't pay attention and not interested when they see a total gasoline station. the next problem is that they are a new competitor when it comes from comparing it to the top oil companies because the total is establish in1997 that can be a small problem and not having a signature figure on determining the company. Because the top oil companies are very wellknown by the motorist and because of that they are entrusted by the consumers. How can a consumer give his/her Trust to a product that is not

well-known by the market? Thats why our group decided to give strategies on how they will grow and to be well-known by the market.

IV.

COMPANY ANALYSIS A. History V-M-G Vision Total reflects global background and experience that brings value to customer worldwide. We are working together as a family; creating relationships that understands and satisfies the needs of customers, partners, our people and shareholders.

Mission Our mission is to provide customer satisfaction throughout the world with the highest level of service. We are working together with fun and integrity, committed ourselves in understanding and living a principled-centered leadership.

Core Values Integrity our customers can assure to themselves that our company is always giving them the finest petroleum products and the cheaper price with the highest quality.

Innovation our company is committed to give our customers the best products in its most innovative form to help them in engaging the fast changing environment.

Practical our company is dedicated to give high quality products with the lowest price compare to other company. B. C. D. E. Ownership Management Culture Organizational Structures Human Resources Strategies V. STRATEGY FORMULATION A. Input Tools 1. 2. 3. B. EFE Matrix CPM Matrix IFE Matrix

Matching Tools 1. SWOT analysis

STRENGTHS
 To all the jeepney drivers, having low cost compare to other competitors.

WEAKNESSES
 The branches are limited, causing their product to be not well distributed to the customer.  Total gas stations are not common or popular to the customers because of its poor advertisement.

 Like the big 3 companies Total

has the same quality but the price is cheaper.

 Not totally known in the OPPORTUNITIES

 Having more stations around the country.  Build more promotions.  Give more opportunities both from customers and employees.  Can avail high quality products because of its cheaper price.

country, lack of advertisement.

THREATS
 The big 3 Companies.  Don t have other types of gasoline.

2. GS matrix

VI.

STRATEGY IMPLEMATION A. Recommendation

Our group has a plan on suggesting the company to promote more in the television ads because as you can see there are few gasoline stations that promotes well in the television. It may help the company in the way that they will always recognize by the television viewers regarding on what they see in the television and if they saw the gasoline station they would always recognize it easily whether the station is so far away and if they saw the glimpse on the part of it they will say that it is a total gas station. Having a good song and trademarks, songs can always sang by the customer and whenever they will hear the song they will always say that the song is all about total gasoline station that runs thru their mind while thinking and singing the song, while the trademark is also a factor that if they see, hear and say it they will recognize the company and they can use the trademark in their daily lives like using it as a joke or having fun while saying or seeing the trademark of total gasoline. Having a stand out Icon or popular known artist so that the fans of the Icon or artist will always prefer the gas station that they introduce to promote and it would be a big impact to the company because if you will imagine how many followers he/she have and the majority of them will patronize what their Icon or artist have and advise to them the earning of the company will increase and will cause to gain more profit. Improvements on producing branches around the country and near a land mark because most of the motorist now a day doesnt have the consistency on choosing a gasoline station, thats why if total company produces more branches in land mark they will be more

popularize that will give them more customer because it is known places by the motorist. Lastly promotions like having a pick time or a time that the gasoline will have a less price because if the price is low the demand and supply will be high. As you can see the competition there is not always the prices base, they would use also the demand of it because there are plenty motorist complained about a gas station that if they saw that gas station they will say that it is expensive and will prefer to a known low class gas station because the high class gas station is always on the news that they play the prices up and down and the customer always angry about the way they manage the prices. Supply also is a factor because do you saw a gas station that dont have a gas? Or havent you imagine that the 24 hours gasoline station close because of lacking of gasoline like the top gasoline always say that they dont earn more and do they say that the supply of gasoline is few? No because it is their own way on having a strategy that the other competitor may do because if they dont go near the prices of the top companies their market will go down and the big companies will improve more because they dont use the standard price while not having a lacking of gasoline supply and instead they use their stack gasoline or the gasoline that they buy expensive and they let the consumer risk the expensiveness they cause.

B.

Define your objectives: 1. Short-run

a. Increasing more earning that will give the company the stability on competing in the market, making them a more competitive and known by the industry that they are producing services and products like the top oil companies. b. Deployment of gasoline branches around the NCR and find them the right spot where their services can be likely known like some commercial place with a good market and people that they serve as a consistent consumers. c. By maintaining and improving an image to the people and make them feel that total gasoline is the same company that will provide them the services that is reachable and a low cost type of gasoline station. d. Giving promotion that the consumer may try or give them the attention that they may use and giving them some advantages that they may see that their money will not be wasted. 2. Long-run a. Creating more opportunity to the people by having an institution where the people could be a trainee or making some training for people that cant afford a vocational course that later could be a step for them for having the job and being a family of total gasoline corporation. b. Producing more branches around the country and finding people that is more interested in creating a branch because if they trust their faith in this company they may be encourage more and

sharing the achievement when they get rich, the succession that they may receive would be a big impact to the image of the total company. When they purchase the total gasoline station or in short if they achieve their dreams by purchasing a total gasoline branch their willingness and motivation may give the company a good feedback on the people around the nation.