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Marketing Research
Report
On

Submitted by
Muhammad Shahnawaz

This report contains information that is not to be shared, copied, disclosed or

otherwise compromised without the consent of the group.

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ACKNOWLEDGEMENT

We are very grateful to our teacher Dr. Akif Hassan for teaching us curriculum of
Marketing Research. His versatile knowledge in marketing field and unique
teaching style has developed our knowledge and cleared many marketing
concepts.

We are all the most grateful to him for assigning this project, which has further
helped us in evaluating many interrelated dimensions of research in marketing
field.

Finally we bestow our thanks to PSO and all the people who has directly or
indirectly supported us with their assistance and guidance to compose this report
and accomplish broader vision to visualize things in marketing Research
concepts.

Group members

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TABLE OF CONTENTS

Title Page

Preface 3

INTRODUCTION
Background of the Pakistan State Oil 4
Background of the problem 13
Statement of the problem 19
Research problem 20
Research hypothesis 21

RESEARCH METHODOLOGY
Research design 23
Sources of information 24
Methods of data collection 25
Research instrument 26
Sampling technique 27
Sample size 28
Profile of the respondents 29

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

Findings of the market research 31

SUMMARY OF FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS
Summary 50
Recommendations 51

BLANK QUESTIONNAIRE

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PREFACE

This report is prepared for the course of “Marketing Research” on Image study
of PSO.

In this report we have discussed different aspects of the marketing research and
marketing. Other than that we have different findings and figures regarding the
opinion of customers. All data and findings are based on the marketing research.

Report also contains the data regarding our research sample and the profile of
the respondents.

We had covered almost every aspect of the image study and consumer
perception in this research report.

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Introduction

History of the company

Pakistan State Oil has come to this stage after 25 years of developments and
continuous improvement. The company’s development started from 1974 when

01-01-1974 Federal Government takes over management of PNO

(Pakistan National Oil) and DPL.
(Dawood Petroleum Limited), renamed into POCL (Premier Oil Company
Limited) under marketing of Petroleum Products (Federal Control) Act, 1974.

03-06-1974 Government incorporates "Petroleum Storage Development

Corporation" PSDC.

23-08-1976 Name of PSDC changed to State Oil Company Limited (SOCL).

15-09-1976 Government purchases ESSO Undertakings, vests the same in

SOCL.

30-12-1976 Government merges PNO and POCL into SOCL. (State Oil
Company Limited), and named it as, Pakistan State Oil Company Limited. (PSO).

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As the largest oil marketing company of Pakistan, PSO is engaged in the
storage, import, distribution and marketing of petroleum products,
petrochemicals, Aviation & Bunker fuels, LPG and CNG dominates the country’s
fuel and energy need. Since its inception in 1976 the company has been meeting

more than 70% of the country’s fuel needs. PSO’s 3805 outlets all across the
country markets more than 12 million tons of fuel products annually. This network
is supported by PSO’s 28 storage facilities with a capacity of more than 800,000
tons. PSO took a major step in improving its distribution facilities by acquiring
12% equity in the 800km long Karachi-Mehmoodkot White Oil Pipeline.

As part of PSO’s policy of providing better customer service it has embarked

upon its New Vision retail development program. Equipped with the most modern
facilities like electronic dispensing units, auto car wash, convenience stores,
internet facilities and business centers these state of the art designed stations
provide greater customer confidence and a friendlier environment.

As a manifestation of PSO’s greater customer focus a PSO 24hr PSO Customer

Service has been launched where customer’s can lodge their queries and
suggestions about various PSO products and services.

Along side its retail network PSO is playing an equally important role in the
industrial sector. From the locomotives of Pakistan Railways to the giant turbines
of power projects, all are fuelled by PSO. Being fully alive to its responsibilities
towards the agriculture sector PSO’s 700 strong agency network helps keep the
farm machinery running. Further, its kerosene sales are a major source of energy
for the rural and lacking gas facilities.

PSO remains equally strong in Aviation and Bunker Sales. PSO has been

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constantly upgrading its facilities to serve a wide range of commercial aircrafts.
Through a chain of eight Aviation Service Stations scattered all across the
country PSO fuels the aircrafts of many local and international airlines.
Acquisition of new Lahore Terminal Complex at the Lahore International Airport
has enabled PSO to serve the busiest corridor of East/West bound flights
benefiting the airlines in shape of time saving and lesser fuel burn off. While it’s
bunkering facilities at all the major ports of country fill up the ocean liners of
many nationalities facilitating the nation’s international trade.

In its endeavor to provide quality lubricants, PSO has formed an alliance with
world-renowned company Castrol whose products are manufactured at PSO’s
own ISO 9000 certified facilities ensuring the highest quality standards for both
retail and industrial sales.

More cordial relationship with its dealers is one of the important objectives of
PSO’s New Vision programme. To give them a sense of participation PSO has
instituted “Top Dealer Awards” and “Million Liter Awards” whereby efforts of the
high performing dealers are recognized.

Emergence of Health Safety & Environment (HSE) as the corner stone of PSO’s
corporate governance testifies to its commitment to environmental protection.
Complete HSE certification of all its facilities and installations is one of its major
goals for the coming months which are being vigorously pursued.

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Current position

Financial & Operational Highlights of the year: 1999-2000

• All time record sales revenue of Rs.135 billion, ($2.10 billion) up 17% over
prior the year

• Growth of 5% in its sales volume that touched 12.7 million tons

• Profit before tax of Rs.3.6 billion ($ 56 million); up 7% over prior year

• Highest ever cash dividend of 100% Rs.1.4 billion

• Successfully took over the fuel oil imports from the Government of
Pakistan

• Signed long term product off-take agreement with Pak Arab Refining
Company (PARCO).

• Ranked as No.1 performing company in Pakistan by Karachi Stock

Exchange received award for the 16th consecutive year.

• Board of Management reconstituted by Government of Pakistan;

principles of corporate governance established.

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HEALTH, SAFETY & ENVIRONMENT

POLICY

Pakistan State Oil Company Limited will ensure that

The health of its employees, its contractors, its customers and the public is
protected.

All its activities are carried out safely.

Environmental performance meets legislative requirements.

To implement HSE Policy, Pakistan State Oil Company Limited will

Comply with relevant laws and regulations.

Ensure that required Health, Safety and Environment Standards and

Procedures are developed and established

Ensure that all its activities are carried out in accordance with Company's
Health, Safety and Environment Standards and Procedures.

Set demanding targets and measure progress to ensure continuous

improvement in Health, Safety and Environment performance.

Require every employee to exercise personal responsibility in preventing

harm to themselves, to others and to the environment.

Provide appropriate Health, Safety and Environment training / information to

all employees, contractors and others who work with the company

Ensure provision of safe working environment.

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Promote awareness and give due recognition to performance in the area of
Health, Safety and Environment.

PSO's Network

PSO's network of outlets and other facilities

comprehensively covers Pakistan - from the bustling
metropolis of Karachi and Lahore to the mountain valleys of
Chitral and Gilgit. Our coverage includes privately and
company owned outlets guaranteeing our market share and
profitability.

Product movement will play a vital role in strengthening Pakistan's economic

development. With the burgeoning demands of the Power generation sector,
enhancement of existing facilities and development of new infrastructure -
especially pipelines, which are the safest, efficient & most environment friendly
mode of transportation, takes top priority.

Pakistan Railway also has to be geared for moving more products upcountry.
This is very important to reduce the pressure on road movement.

Listed below is a summary of our product movement network:

Numbers
Tank Lorries 13400
Railway Tank wagons 1120
Pipelines 13
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(172.68 km, between 6"to 42" dia.)

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Management profile

The federal Government has constituted the Board Of Management (Oil) to

control, manage and direct affairs of the Company; whereas the direct
management is vested in the Managing Director who exercises and performs all
the powers and function of the Board Of Directors of the Company.

Human Resources - Our Greatest Asset

Total Strength as of 01/07/1998

2795

Bargainable employees
1830

Management Staff
965

The Company has maintained the tempo of achievements through whole hearted
commitment & hard work of its Human Resources and full support of its dealers /
agents and customers. PSO is one of the top 25 companies as the recipient of
TOP 25 Companies Award every year, for the last 13 consecutive years. PSO is
the only company from Pakistan, which is being listed as one of the Top- 1000
companies in Asia (as per Asia Week Magazine).

All these attributes endorse one thing; grow with grace and sound earnings,
along with all those associated with PSO, i.e. its customers, business partners,

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manpower and share holders. This has been the greatest asset of the Company's
Management, able guidance from its Board of Management (Oil), Ministry of
Petroleum & Natural Resources, and from all cadres putting in combined efforts
with commitment with excellence.

PSO & Continuous Growth

PSO is the largest of the three

marketing companies in Pakistan; it
has consistently maintained an edge
over its competitors Shell and Caltex.
With an overall market participation of
over 72% in 1997-98 it sold 6.244
million tonnes of petroleum products
during the half year ended 31st
December 1999 against 5.633 million
tonnes sold during the corresponding
period last year, showing an increase
of 10.8%.

Continuous Growth

PSO continues to expand its physical, technical and marketing

resources to meet the requirements of the country. To keep
pace with growth PSO has maintained International
Collaborations to import latest technology, they are:

I. Castrol (UK)
Blending and marketing of lubricants in Pakistan.

II. Air Total (France)

Technical & commercial agreements in Aviation Services & technology.

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III. Exxon Chemicals (Singapore)

Petro chemicals business & technology.

Privatization of PSO

Privatization of PSO is underway whereby JP Morgan’s financial advisory

consortium is assisting the Government of Pakistan in the privatization process.
They have undertaken the initial due diligence including financial and regulatory
issues and subsequent to which the interest of the potential investors in the
transaction will be solicited

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Background of the problem

The company maintained its strong focus on New Vision Retail Development
Programme and expanded the network to 343. During July –Dec 2001, 10 CNG
facilities were commissioned brining the total to 36 while Lube shop network
expanded to 74. The company embarked on an ambitious program to promote
the Internet specifically in inaccessible areas all over Pakistan. Total 500 retail
outlets are being provided with Internet facility out of which 150 are already
covered. With strong media support, new lubricant grades like Castrol GTX-XL,
Castrol CR 40 Plus and PSO CNG oil were introduced. Various successful sales
promotion campaigns have been launched to further improve the brand image of
the company.

In order to have assured long-term cost-effective supplies the company signed a

10-year sale and purchase agreement with NRL while negotiations with KPC for
HSD premium for the first half of FY-2001 concluded successfully. In an effort to
efficiently distribute Mogas and HSD to retail outlets, the company acquired 16
new tankers equipped with satellite tracking system for Karachi and gradually
major cities and towns will be fed through company tank lorries. The company
has been successful in achieving ISO 9000-2000 distinction for its six terminals
while operations at other installations and depots are being standardized to
qualify for ISO certification.

Given the resolution of outstanding stuck up claims with upward revision in

OMCs margins and complete deregulation of POL products i.e. free from price
control combined with the strategic initiatives undertaken by the company, your
company is well positioned to face the challenges of impending deregulation and
maintain its leadership in the downstream sector.

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Customer intimacy provides to senior management a new vision of the future, a
strategy which is realistic and implementable. Marketing and sales personnel will
have the opportunity to build profoundly meaningful relationships with selected
key customers. Customer satisfaction and intimacy offers a great challenge to
human resource professionals of the PSO, who have the challenge to integrate
supplies. This is required for customer intimacy to work and a most sensitive
challenge.

To deliver results consistently, requires a great commitment. It requires all the

imagination, initiative, empathy and dedication a company can create. Along side
its retail network PSO is playing an equally important role in the industrial sector.
From the locomotives of Pakistan Railways to the giant turbines of power
projects, all are fuelled by PSO. Being fully alive to its responsibilities towards the
agriculture sector PSO’s 700 strong agency network helps keep the farm
machinery running.

Further, its kerosene sales are a major source of energy for the rural and lacking
gas facilities. Customer-intimate managers, understand that each customer's
needs are unique and an opportunity is available to deliver a unique solution as
well. In business a promise is a commitment, to accomplish something. In a
customer-intimate company, a promise becomes something very special.

Results promised must be results you will deliver, at all costs. This is the intricacy
of customer intimacy. Customer intimacy also requires a different approach, to
cultivating and managing business-to-business relationships.
PSO continues to expand its physical, technical and marketing resources to meet
the requirements of the country.

To keep pace with growth PSO has maintained International

Collaborations to import latest technology, they are:

Castrol (UK)
Blending and marketing of lubricants in Pakistan

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Many business managers keep their suppliers at arm's length, pitting vendor
against vendor in search of temporary advantage. Intimacy, demands a better
way of treating suppliers.

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The new logo of the company was designed with refreshing colors
After all these developments and improvements has been done in the operations
Management style:

The
outlook of pumping station has been changed. The services has been improved
and extra services (automatic car service, email, telephone) offered by the PSO
pumps. Question arise in the minds of the PSO management that “Does the
PSO has improved its image”? In order to find out this research has been
conducted in all the areas of Karachi.

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Background Problem is Customer intimacy

Being a local organization the people’s perception about the PSO is not very
good. The majority of consumers of Pakistan thought that the multinational
organizations are good and they have fantastic services to offer in the industry.
It’s not the matter of satisfaction they are getting from the organizations it’s more
on the field of friendship or intimacy of the organization with their customers.
Customer satisfaction means you are doing OK, but alone it is not adequate in a
fiercely competitive business environment, where your competitors are waiting to
grab your customers for good.

Especially in the petroleum industry where there is no product differentiation.

What it requires is taking responsibility for customers' performance, by staunch
solidarity and exchange of useful information. Critics of customer intimacy are of
the view, that customer-intimate companies are merely baby-sitting their
customers and are blurring real and useful distinctions between suppliers and
buyers. Neither of these criticisms are true. Customer intimate companies
discover how to provide complete solutions to customer needs rather than simply
attempting to satisfy customers.

By providing complete solutions, customers and suppliers, become indispensable

partners, and suppliers take a major stake in their customers' success. When two
organizations move from a simple buyer-supplier relationship to the overall
complexities of a customerintimate relationship, the unique responsibilities of
each partner become quite clear and understood. Each partner develops a new
business mindset, resulting in new ways of conducting business.

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Customer intimacy is very essential for an organization like PSO, who is looking
to secure a competitive advantage. Customer intimacy is the only way to
compete against these larger resourceful multinational organizations like Shell,
Caltex.

For the multinational, large and resourceful organizations, customer intimacy

offers a surefire way to long-term success, because of their origin of existence as
an advantage.

Traditionally people or management thought that customer satisfaction or

customer intimacy is just for the marketing people. But now we said customer
intimacy is for everyone in an organization, irrespective of functional and
operational differences.

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Statement of the problem

The changes are taking place in the market continuously at the global and
national level. In order to deal and compete with these changes you need to up-
to-date yourself in every aspect of the business, like customer preferences,
perception, competitor’s move, and the technological changes

The problem situation arises at PSO after the changes they had made in their
system. PSO has done overhauling of its system and now they want to know the
response of the consumers in respect of the changes they have made. They are
interested in knowing that what customers think of PSO in terms of services and
products both. For this purpose they are conducting a marketing research.

Future strategies of the PSO will be based on the results of the research.

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Research problem

“Does the PSO has improved its image after the establishments of new
vision and revolution in its outlets”

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Research Hypothesis

We assumed that the pso has gained the reputation and improved its image.
PSO has been gaining mind share of the consumer since these developments
and changes are taking place in the company. The consumer’s response to
these changes is positive.

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Research Methodologies

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Research Design

Research design is about how to get what we have just decided we need
to get. Research design has several levels. In a broad sense it is about the
philosophy of how to approach the problems of finding out about the
things.

There are the marketing problems and the research problems to consider.
But the problem of how to do the research well is also critical if we are to
address those marketing and research problems.

The research design we are using is descriptive research. The reason for
choosing this method that we need to describe the matter at hand with
more precision in more qualitative and quantitative terms. We have the
ideas now the understanding of different viewpoints, trends. It is time for
some numbers to verify that what we think (research hypothesis) we now
know is actually true. One common focus of descriptive research is to
describe characteristics of certain groups.

The groups may be people, consumers. The marketing manager could ask
for a profile of the fuel consumption patterns of the Karachi drivers and
owners of cars.

Another common use of descriptive research is to estimate the proportion

of customers in the population those who are using different types of fuel.

A common use of the descriptive data is to make predictions about the

future.

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Sources of information

Source of information is the Personal source

We are not using secondary source of information. We are getting data from the
personal sources. We are delivering questionnaires to the individuals personally
and get them filed. Our main objective of the study is to see the perception of the
people about the PSO.

For such type of the problem it is necessary to have an independent opinion from
the respondents. It should be free of any influence and biasness of the
researcher. That’s why we have chosen this source of information.

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Data collection methods

Data collection method is Survey method.

Survey method is self-administered by the respondents. In surveys respondents

complete their questionnaires without any influence of the researcher at their own
convenience.

In order to have a better and fair result we have choose this method because the
respondents have more independence in this method than other methods. The
problem of biasness is less than personal interviews and telephone surveys. The
type of the research problem we have is related to the consumer behavior. It is
appropriate to give independence to the consumers for getting information.

In this method first we have delivered the questionnaires to the respondents after
giving them certain time (at their own convenience), we got filled questionnaires
back.

That‘s how we got the information by this method.

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Research Instrument

The research instrument is Questionnaire. The questionnaire is a semi flexible

and structured approach is basic to all research instruments which involve
questioning.

This instrument has predefined variable in it about the specific response.

Answers that result from any question may reflect what the respondent really
thinks about an issue. The task of questionnaire construction is to make sure that
answers do reflect respondents feeling as much as possible. But answers also
depend upon on how questions are asked and an important part of how they are
asked is tied up with the scale used in the question.

Quantitative data are not all alike in terms of their quality or the amount of
information that they carry. Some numbers carry great deal of information.
Different scales are used in the questionnaire include:

 Multiple choice questions

 Likert scale
 Horizontal numerical scales
 Semantic differential scales
 Verbal frequency

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Sampling Technique

Convenience sampling technique is used in this research.

It’s a very major technique in non probability sampling. Not every one in
the population has an equal chance of being in the sample. In this
technique the respondents distinguished by the fact that people get into
the sample depending on where they happen to be at the time that the
sample is taken.

Convenience samples were not drawn by random methods, but they are very
frequently used. It is quite reliable and quite valid. There are many good reasons
for gathering them not the least of which is that they can be quite convenient and
easy to gather.

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Sample size

Sample size is 100 respondents. Determine sample size is very important issue.
In a qualitative sense there are a number of guidelines for this which depends on
survey objectives and methods. Generally any time marketing manager needs
very precise estimates of values, large samples are needed. But in many cases
the rough estimate is sufficient. If the decisions are smaller in nature the benefits
of higher precision may not the worth of getting high precision.

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Profile of the respondents

The basic criteria for respondents that they are the driver of car or motorcycle

Age: 18 years and above

Gender both

Income: doesn’t matter

City Karachi

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Analysis & Interpretation of

Results

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Type of the vehicle mostly driven

Type of
Vehicle
mostly
driven
Count
Motor Bike 12
800cc Car 19
1000cc Car 27
1300cc Car 22
1500cc Car 8
1600cc Car 6
Higher than 1600cc Car 6

Out of our 100 respondents the:

• 27% of the respondents have 1000cc cars

• 22% of the respondents have 1300cc cars
• 19% of the respondents have 800cc cars
• 12% of the respondents are drivers of motorcycle or bikes
• 8% of the respondents those who have 1500cc cars
• 6% of the respondents have 1600cc cars
• 6% of the respondents have above than 1600cc cars

Type of Vehicle mostly driven Count

Motor Bike

800cc Car

1000cc Car

1300cc Car

1500cc Car

1600cc Car

Higher than
1600cc Car

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Type of fuel

Type of Fuel
Mosly Used
Count
Petrol 73
Diesel 10
CNG 17
The majority of our respondents are users of the petrol.

• 73% of the respondents are users of Petrol

• 17% of the respondents are users of the CNG
• 10% of the respondents are users of Diesel.

Type of Fuel Mosly Used Count

80
60
Type of Fuel
40 Mosly Used
Count
20
0
Petrol Diesel CNG

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Fuelling Brand

consumers
Usually go
for Fuelling
Count
Shell 46
PSO 30
Caltex 24

The majority of our respondents are customers of the Shell:

• Out of our 100 respondents 46% get fuel from Shell.

• 30% get fuel from PSO.
• The Caltex customers are 24% among are respondents.

The shell has more market share in Karachi especially in porch areas like Clifton,
Defense and Tariq road

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c ons um ers U s ually go for F uelling C ount

S hell
PSO
C altex

The pso has more market share in other areas of the Karachi and country.

sLocation of frequently visited petrol pump

Location of petro
pump usually visited
Count
No Response 12
Phase 4 Defense 13
Express Way 3
Gulshan -e- Iqbal (Drive
6
In)
Gulshan -e- Iqbal B-16 1
Behria 5
Mughal Darbar 1
Tariq Road 2
Shara Faisal 21
Rashid Minhas Road 4
Gulistan e Juhar 1
F B Area 9
clifton 22

Mostly the consumers are visiting the petrol pumps near their residence or where
ever they thought it’s convenient. Most of the residents of areas like Defense and
Clifton the consumer get fuel from the petrol pump which is nearest to their
home.

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No Response
clifton

Phase 4 Defense

F B Area Express Way

Gulistan e Juhar Gulshan -e- Iqbal (

Rashid Minhas Road Gulshan -e- Iqbal B

Behria

Mughal Darbar
Shara Faisal
Tariq Road

Reason for going to a particular pump

Out of our 100 respondents majority has given 4 reasons for going to the
particular pump.

75 respondents have chosen the reason for going to a particular pump is

because of convenience. There are other major reasons got responses:

• they are satisfied with the quality of the pump’s fuel (45points)
• they are satisfied with the quantity (41points)
• they got best services on the pump (41points)

So we can say that the customer’s selection criterion is mainly depending on the
above stated three reasons.

There are other factors involved in the selection like outlook or extra services but
those factors are secondary to the above stated four factors.
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G o ing to G oing to G oing to Pe tro l G oin g to

G oing to G oing to G oing to Petrol G oing to Petrol Petrol Pu m p Petro l Pum p Pum p Petrol Pu m p
Petrol Pum p Pe tro l Pum p Pum p because Pum p becau se because of because o f becau se of because of
be cause of because of of Cou rteous of Pum p Better Better Convenience O ther
Con venience Be tter Service Staff Condition Q uality Q uantity Store Reasons
Count Count Co unt C oun t Count Count C ount C ount
.0 25 58 75 63 54 58 89 99
Yes 75 41 25 36 45 41 10 1
10.0 1

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Switched petrol pump in the recent past

75 of the respondents said no they haven’t switched their brand. 25 respondents

have switched their brands. Out of those 25 respondents
• 8 respondents have switched from Shell to PSO,
• 4 From Caltex to PSO
So we can say 50 % (12 is 50% of 25) of the switching is from other brands to
PSO. Ii implies that the PSO is gaining market share and creating new
opportunities.

Switched
Petrol
Pump in
the
recent
Past
Count
.00 1
Shell To PSO 8
Shell To Caltex 4
PSO To Shell 4
PSO To Caltex 1
Caltex to PSO 4
Caltex To Shell 3
Not Switched 75

0
Switched Petrol Pump in the recent Past
Count Yes
Shell To PSO
Shell To Caltex
PSO To Shell
PSO To Caltex
Caltex to PSO
Caltex To Shell
Not Switched

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Ranking of the three brands

Preference Preference Preference

for Shell for PSO for Caltex
Count Count Count
.0 1 1 1
1 51 30 17
2 33 33 34
3 15 36 48

In the ranking or grading of the all three brands the shell got the highest score as
no # 1 brand.
Shell graded as no 1 by 51 respondents and the PSO and Caltex graded as no #
1 by 30, 17 respondents respectively
For the 2nd position all three brands got the equal score

The graph is representing the score components of all three companies in each
category.

120
100 Preference for
Caltex Count
80
Preference for
60
PSO Count
40
Preference for
20 Shell Count
0
0 1 2 3

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Reasons for trying new petrol pump

Switch ed
because
th ere is No Switch ed Switched Switched Switched Switched Switched
Difference because because because b ecause of because o f because
between of bad of Lucky of free lack of tru st lack o f trust o f other
Petro l Pump s service Draws gifts in qu ality in quantity reason s
Count Co unt Cou nt Co unt Co unt Coun t Coun t
.0 83 63 92 96 61 58 96
Yes 17 36 8 4 39 42 4

In this question we have provided the list of reasons for switching the petrol
pump.

The three main reasons for switching come out after analyzing the responses:
 The first one is lack of trust in quantity (42 points)
 Second is lack of trust in quality (39 points)
 Third main reason is bad service (36 points)

So another reason which does not score very high but its considerable is there is
no difference in patrol pumps that’s why people switch petrol pumps. It’s true up
to some extent but it’s not the reason in most of the cases.

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Comparison of PSO with Shell

The table is presenting facts on the comparison of the PSO with Shell on
different attributes.

Staff C onv enience Petrol pum p Q ua lity o f Q ua ntity o f Lubricant O verall

Behav io ur Store as condition as petrol a s petro l a s as service a s
a s com pa re co m pa re w ith com pa re with co m pare co m pare com pa re com pa re
w ith Shell Shell Shell w ith Shell w ith Shell w ith Shell w ith Shell
C ount C o unt C o unt C o unt C o unt C o unt C ount
N o R espo nse 4 7 7 6 5 10 7
Better 29 27 28 24 21 18 29
Sam e 44 47 45 47 49 56 42
W o rse 23 18 20 22 25 15 22
1

Almost in all the attributes PSO got a better score than the Shell or got the same
score as Shell. But if you look at the worst scores they are also in a substantial
amount so it may possible people think both as same but they are not the same
at all the attributes.

The worse score is more than better in the case of the quantity of fuel people
thought they are not giving right quantity. The reason behind this factor is the old
non-digital pumps because of that people are not still sure of the right quantity at
PSO.
The PSO got a bigger worse score on services that mean people think that the
services of the PSO are not as good as Shell.

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Comparison of PSO with Caltex

The table is representing the scores of the comparison of PSO with Caltex.

Staff Convenienc Petrol pump Quality of Quantity of Lubricant Overall

Behaviour e Store as condition as petrol as petrol as as service as
as compare compare compare compare compare compare compare
with Caltex with Caltex with Caltex with Caltex with Caltex with Caltex with Caltex
Count Count Count Count Count Count Count
No Response 4 7 8 7 6 5 5
Better 34 35 34 29 35 35 35
Same 49 48 43 48 42 50 44
Worse 13 10 15 15 15 10 15
1 1
1
1

The majority of the respondents respond positively in this comparison. The better
scores are higher than the worse scores.

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Response of the customers in respect of new vision scheme

Effect of
Change
Made by
Pso
Count
No Response 21
Positive 54
Negative 10
Netural 14
The 54% of the respondents respond positively and said welcome to the
changes. Most of them said it’s a sign of improvement in national organization
and it’s good.
14 % of the respondents said it’s normal they have to change themselves right
now otherwise pso will be no more in the market.

Only 10% said PSO is just copying the competitors and following them.

Effect of Change Made by Pso Count

No Response
Positive
Negative
Netural

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Personal data of the respondents

Gender

Gender of
Respondents
Count
Male 83
Female 17
The majority of our respondents are males (83% of our respondents are males).

Only 17% of the respondents are females. It’s because of small no of female
drivers in our society.

Gender of Respondents Count

Male
Female

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Age

Age of
Respondents
Count
18 - 20 Years 7
21 - 30 Years 71
31 - 40 Years 11
41 - 50 Years 7
51 Years and above 4

Our respondents are belongs to all age categories of the research. We have
taken respondents from all age groups in order to have comprehensive
information on the problem.
74 % of the respondents belong to 21 to 30 years age group.
The pie chart is showing the different age group of the respondents.

18 - 20 Years
Age of Respondents Count

21 - 30 Years

31 - 40 Years

41 - 50 Years

51 Years and
above

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Family’s Average Monthly Income
The people from different income categories have different perceptions about the
companies because of that we took respondents from all the income categories.

Average
Household
Income of
Respondents
in Rs
Count
Below 11,000
11,00 - 20,000 19
21,000 - 30,000 14
31,000 - 40,000 16
41,000 - 50,000 15
51,000 and above 30

The average family’s monthly income of our respondents is ranges from almost
Rs.10, 000 to Rs.51, 000 and above. We have respondents from all income
categories
 30% of our respondents belong to the income category Rs. 51,000 and
above.
 19% of the respondents belong to Rs. 11, 000 – 20 ,000 income category
 16% of the them are from Rs. 31 ,000 – 40, 000 income category
 15% of the them are from Rs. 41,000 – 50,000 income category
 14% of the them are from Rs. 21,000 – 30,000 income category

The pie chart is presenting the different income categories in a summary form.
Average Household Income of Respondents in
Rs Count

Below 11,000
11,00 - 20,000
21,000 - 30,000
31,000 - 40,000
41,000 - 50,000
51,000 and above

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Area of residence

More than half of the respondents (52% of the respondents) are from three areas
22 respondents are from Clifton
21 respondents from Defense
11 respondents from Gulshan-e-Iqbal
Another major chunk (28% of the respondents) covered by others option. It
includes all areas adjacent to the Shara-e Faisal and other small areas.

Area of
Resident
Count
Defence 21
Clifton 22
Tariq Road 7
Gulshan-e-Iqbal 11
Nazimabad 10
Others 28

Area of Resident Count

Defence
Clifton
Tariq Road
Gulshan-e-Iqbal
Nazimabad
Others

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Brands versus family’s average monthly income

In this cross tabulation we are analyzing the customers of all three brands with
their family’s average monthly in come. We want to find out that is there any
relationship between the different brands and income of its customers.

The table shows that the Shell has more high income category (51,000 and
above) customers than PSO, and Caltex.
PSO has the second highest no of customers in almost all the income classes

Average Household Income of Respondents in Rs

Below 11,00 - 21,000 - 31,000 - 41,000 - 51,000 and
11,000 20,000 30,000 40,000 50,000 above

consumers consumers consumers consumers consumers consumers

Usually go Usually go Usually go Usually go Usually go Usually go
for Fuelling for Fuelling for Fuelling for Fuelling for Fuelling for Fuelling
Count Count Count Count Count Count
Shell 2 9 5 11 4 15
PSO 2 2 7 3 7 9
Caltex 2 8 2 2 4 6

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Area of residence versus Brands

Area of residence is also influences the choice of the petrol pump brand. Table is
presenting the cross of both the factors. It shows that in Defense and Clifton
customers give more preference to Shell over PSO and Caltex.

Out of 43 respondents of defense and Clifton 24 respondents are customers of

Shell. 10 of them are customers of PSO and 9 are customers of Caltex.

In these areas more educated class is living those who are more influenced by
their perception. So in these areas shell has the major chunk of customers
because of their excellent services.

consumers Usually go for Fuelling

Shell PSO Caltex
Area of Area of Area of
Resident Resident Resident
Count Count Count
Defence 10 4 7
Clifton 14 6 2
Tariq Road 4 2 1
Gulshan-e-Iqbal 4 3 4
Nazimabad 5 3 2
Others 8 12 8
7.0 1

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Relationship between area of residence and convenience

Most of the customers have convenience is the reason for going to any particular
petrol pump. Especially in Clifton and Defense customers usually preferred to go
to the petrol pump which is convenient.

A re a o f R e side nt
G ulsha n-e-Iqb
D efe nc e C lifto n T a riq R o a d al N a zim a ba d O ther s 7 .0

G o ing to G o ing to G o ing to G o ing to G o ing to G o ing to G o ing to

Petr o l Pum p Petro l Pum p Pe tro l Pum p Petro l Pum p Petr o l Pum p Pe tr o l Pum p Petro l Pum p
be ca use o f bec a use o f be ca use o f bec a use o f be ca use o f be c a use o f bec a use o f
C o nv enienc e C o nv enience C o nv e nienc e C o nv e nie nce C o nv enience C o nv enienc e C o nv enienc e
C o unt C o unt C o unt C o unt C o unt C o unt C o unt
.0 6 5 2 3 4 5
Yes 15 17 5 8 6 23 1

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Preference of PSO, Shell and Caltex

The following table shows that the rating for all three brands.

60
60 40

50
50

30
40
40

30 30
20

20 20

10

10 10
Count
Count

Count

0 0 0
.0 1 2 3 .0 1 2 3 .0 1 2 3

P r e f e r e n c e f o r S h e ll P r e fe r e n c e fo r P S O P r e f e r e n c e f o r C a lt e x

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Summary of findings

The summary of this research is that the PSO has improved its image and its
perception in the eyes of the consumer. Most of the respondents have given the
positive opinion about the changes and new vision scheme of the PSO. The
respondents said the PSO should improve its services. They should improve the
outlook of the pumps in other areas except Karachi. It is satisfactory in the
Karachi.

The simple but radical commitment of customer intimacy by PSO is needed to

deliver results. Companies that truly love their customers know that their
customers don't buy a product or service. What they buy is a bundle of benefits.
The greater the benefits the more product or service is purchased, resulting in a
mutually satisfying position for both customer and PSO.

To deliver results consistently, requires a great commitment by the management

and staff of the PSO. It requires all the imagination, initiative, empathy and
dedication PSO can create.

Most of the respondents said that they don’t have efficient staff and their services
are not of good quality.

The company maintained its strong focus on New Vision Retail Development
Programme and expands its network.

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Recommendations

We are recommending these strategies after gone through the questionnaires

and analyzing the research results. The following recommendations are based
on the research.

PSO should act upon these things.

 Just be a good service provider

 Improvement in Quantity and quality
 More friendly service
 Service needs to be more faster
 Come up with a unique promotional schemes
 Courtesy and cooperation at the outlet should increase
 Increase in customer services
 New efficient and trained staff
 Improve the lubricant’s quality
 Start collecting utility bills
 Improvement in staff attitude
 New vision scheme should be implement on all the outlets
 They should increase no of pumps
 Availability of CNG should be improved
 They should improve the quality of the fuel
 Differentiate your services as compare to your competitors
 Work for the betterment of the society

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1. Which type of vehicle do you mostly drive?

 Motor bike
 800cc car
 1000cc car
 1300cc car
 1500cc car
 1600cc car
 higher than 1600cc car

2. Which type of fuel is mostly used in your vehicle?

 Petrol
 Diesel
 CNG
3. Where do you mostly go for fuelling your vehicle?
 Shell
 PSO
 Caltex
4. Please specify the location of the petrol pump where
do you mostly go for fuelling?

5. Why do you go to this pump for fuelling?

 it is near my home/ convenience
 provide better services
 courteous staff
 better petrol pump condition
 provide better quality fuel

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 provide right quantity
 convienience sore
 others (please specify)-----------------------

6. Have you switched petrol pump in the recent past?

 Previously using----------------------currently using-------------------.
 No, I have not switched
7. What would be the reason for you to try a new petrol
pump?
 No difference between petrol pump
 Bad service at the old pumps
 Lucky draws
 Free gifts
 Lack of trust in quality
 Lack of trust in quantity
 Others (please specify)--------------------------------
8. Based on your preference for fuelling vehicle rank
the following on the scale of 1-3?
 Shell
 Pso
 Caltex
9. How do you compare the PSO with Shell in terms of
following? (Tick only one in each case)

Staff behavior Better Same Worse

Convenience store Better Same Worse

Petrol pump conditions Better Same Worse

Quality of petrol Better Same Worse

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Quantity of petrol Better Same Worse

Lubricant Better Same Worse

Overall service Better Same Worse

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10.How do you compare the PSO with Caltex in terms of
following? (Tick only one in each case)

Staff behavior Better Same Worse

Convenience store Better Same Worse

Petrol pump conditions Better Same Worse

Quality of petrol Better Same Worse

Quantity of petrol Better Same Worse

Lubricant Better Same Worse

Overall service Better Same Worse

Pso has begun implementation of the new vision scheme replacing the decade’s
old attire with new logo refreshing color combination and structural design
changes into pumps (quick lube change, shop stop, tyre shop, CNG facility,
service station/ car wash, internet facility).
11.So what do you think about the changes made by
PSO?(please specify):

12.Please give your recommendations for bringing

improvement in petrol pumps?

13. Gender?
 Male
 Female
14. Age?
 18 years – 20 years
 21 years – 30 years
 31 years – 40 years

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 41 years – 50 years
 51 years and above
15. What is your family’s average monthly income in
Rs.?
 Below 11,000
 11,000- 20,000
 21,000- 30,000
 31,000- 40,000
 41,000- 50,000
 51,000 and above

16. What is your area of residence?

 Defense
 Clifton
 Tariq Road
 Gulshan-e-Iqbal
 Nazimabad
 Others (please specify):-------------------

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