ACKNOWLEDGMENTIN THE NAME OF ALLAH, THE MOST BENEFICENTAND MOST MERCIFUL"WE RISE IN DEGREE OF RANK WHOM SO EVER WEPLEASED; AND OUR EVERY PRESSURE OFKNOWLEDGE IS ONE, MOST KNOWING".(AL-QURAAN)We are grateful to ALMIGHTY ALLAH, for enabling us to fulfill this report.We would not be going justice in presenting this report without mentioning thepeople around us who have been inextricably related with the completion of thisreport.The long and tough task of developing this report was made easier by the helpand guidance of our teacher. The whole practice of collecting material for thereport compiling and composing was enjoyable.We extended our deep gratitude and heartiest thanks to our teacher“MR.VIJAY KUMAR”As their experience and wisdom, skill constructive criticism and valuablesuggestions guided us through out.
DEDICATIONWe would like to dedicate this report to our Respected Teachersand instructors who help us at every stage of our life, ourParents & siblings who always clasp us and sit beside us toencourage at any cliffhanging situation, also we would like todedicate this report our friends, classmates and love ones.Authorization:-We are thankful to our respected MR. Vijay Kumar who trust in our capabilitiesand give us permission to prepare this knowledgeable report.
Executive SummaryThe purpose of this report is to analyses the important of marketing budget forincreasing the revenue.This report considered two petrol companies who also have their outlets. Thesecompanies are Shell and PSO.We consider that how much marketing budget increase and decrease in year,how they affect the revenue of the companies, increasing and decreasing themarketing budget increase and decrease the revenue respectively, increasing anddecreasing the marketing budget decrease and increase the revenue respectivelyor there is some other factors of revenue. Other factors which reduce therevenue is out of limitation of our report.We compare the marketing budget and revenue of each year of each companyand analyze from the charts from 2009 to 2012. After that we compare both thecompanies on the basis of each result. At last we give a conclusion of each year.
ABOUT SHELLPakistan business structureShell prides itself on supplying our customers with the quality products and serviceyouve come to expect over the years. We aim to make doing business with us assmooth as possible, which is why we can offer a range of service solutions to makeyour operations run more efficiently.Shell has a rich legacy and long association with Pakistan. As one of the oldestmultinational companies in the country, Shell has been a partner in the region’sgrowth and development for over a century.Shell Pakistan Limited leads the industry when it comes to the introduction of newtechnology and services that make us a world renowned provider of energy. Shellis the largest international player in retail outlets in Pakistan and we provide fuel toaround 1 million customers daily.The goal of our company is to constantly improve on our customer’s experience,and in an increasingly competitive environment, Shell’s commitment to providingtop quality, right quantity and superior service has been the driving strength of ourbusiness in Pakistan.
We believe winning hearts and minds is as important as winning markets. As achoice, Shell cares for the environment around us, and the impact our business canmake in the community. We believe strongly that business has a fundamental rolein delivering society’s goals – be it economic, social or environmental. In line withthis pledge, Shell Pakistan Limited leads the oil industry through a structuredsocial investment programme that focuses on education, health and sustainabledevelopment.Being at Shell Pakistan Limited is about values, our core values of honesty,integrity and respect for people are at the heart of the way we manage our business.These principles embody our commitment to society and to our country.Our contribution to PakistanShell in Pakistan is committed to the principle of sustainable development that canmeet the needs of the present generation without compromising the ability offuture generations to meet their own needs. Our actions are therefore guided by theneed to make business decisions that demonstrate economic, social andenvironmental responsibility for which our stakeholders and society at large canhold us accountable.Through sustainable development, we integrate the economic, environmental andsocietal aspects of our business to achieve sustained financial success, safeguardour environment and develop our reputation as partner and provider of first choicefor all of our shareholders, customers, employees, those with whom we dobusiness, society and future generations - all of whom expect us to engage withthem, listen to them and evolve to meet their changing expectations.
HistoryAfter the independence of Pakistan in 1947, the name was changed to the BurmahShell Oil Distribution Company of Pakistan. In 1970, when 51% of theshareholding was transferred to Pakistani investors, the name of changed toPakistan Burmah Shell (PBS) Limited.The Shell and the Burmah Groups, retained the remaining 49% in equalproportions. In February of 1993, as economic liberalisation began to take root andthe Burmah divested from PBS, Shell Petroleum stepped into raise its stake to51%. The years 2001-2 have seen the Shell Petroleum Company successivelyincreasing its share, with the Group now having a 76% stake in Shell Pakistan Ltd(SPL)- an expression of confidence.
About PSOPakistan Business StructurePSO is the market leader in Pakistan’s energy sector. The company has the largestnetwork of retail outlets to serve the automotive sector and is the major fuelsupplier to aviation, railways, power projects, armed forces and agriculture sector.PSO also provides Jet Fuel to Refueling Facilities at 9 airports in Pakistan and shipfuel at 3 ports. The company takes pride in continuing the tradition of excellenceand is fully committed to meet the energy needs of today and rising challenges oftomorrow.PSO possesses the largest distribution network in the country comprising of 3,689outlets out of which 3,500 outlets serve the Retail sector and 189 outlets serve ourbulk customers. Out of the total of 3,689 outlets, 1,691 Retail and 167 ConsumerBusiness outlets have been upgraded with the most up-to-date facilities as per thevisualization of the New Vision Retail Programme.PSO also operates 31 company-owned and company-operated (Co-Co) sitesserving the retail sector. Co-Co sites are flagship stations which combine highlevels of supervision and top quality products to maintain the highest level of
efficiency, service and customer care. These sites act as benchmark for all otherretail outlets.HistoryThe creation of Pakistan State Oil (PSO) can be traced back to the year 1974,when on January 1st; the government took over and merged Pakistan National Oil(PNO) and Dawood Petroleum Limited (DPL) as Premiere Oil Company Limited(POCL).Soon after that, on 3rd June 1974, Petroleum Storage Development Corporation(PSDC) came into existence. PSDC was then renamed as State Oil CompanyLimited (SOCL) on August 23rd 1976. Following that, the ESSO undertakingswere purchased on 15th September 1976 and control was vested in SOCL. The endof that year (30th December 1976) saw the merger of the Premier Oil CompanyLimited and State Oil Company Limited, giving way to Pakistan state Oil (PSO).After PSO’s inception, the corporate culture underwent a comprehensive renewalprogram which was fully implemented in 2004. This program over the yearsincluded the revamping of the organizational architecture, rationalization of staff,employee empowerment and transparency in decision making through crossfunctional teams. This new corporate renewal program has divided the company’smajor operations into independent activities supported by legal, financial,informative and other services. Inorder to reinforce and monitor this structuralchange, related check and balances have been established by incorporatingmonitoring and control systems.Human Resource Development became one of the main priorities on thecompany’s agenda under this corporate reform.It is due to this effective implementation of corporate reform and consistent application of thebest industrial practices and business development strategies, that PSO has been able to maintainits market leadership in a highly competitive business environment.
Comparing Revenue and marketing expenseof Shell 2009As see below the revenue of shell in 2009 is 180 billion, which low from 2008 i.e.182 billion.Marketing expense in 2008 and 2009 is 496,098 million and 401,551 millionrespectively0100,000200,000300,000400,000500,000600,0002008 2009RUPEES IN MILLIONRUPEES IN MILLION
If we compare both the years marketing expense decreasing in 2009 whereasrevenue is also decreasingComparing Revenue and marketing expenseof PSO 2009As seen below the revenue of PSO in 2009 is 13.2 billion, which high from 2008i.e. 13 billionMarketing Expense in 2008 and 2009 is 285,152 million and 310,861 millionrespectively024681012142006 2007 2008 2009rupees in billionrupees in billion270,000280,000290,000300,000310,000320,0002008 2009Rupees in millionRupees in million
If we compare both the years marketing expense increasing where as revenue isalso increasingComparing the figures of Shell & PSO 2009In 2009 Shell decrease its marketing budget from 496,098 Million to 401,551Million which decrease its sale which affect directly the revenue of Shell and itsrevenue decreases from 182 Billion to 180 Billion.Whereas, PSO increase its marketing budget from 285,152 million to 310,861million which increases its sale which affect directly the revenue of PSO and itsrevenue increases from 13 Billion to 13.2 Billion.Comparing Revenue and marketing expense ofShell 2010As see below the revenue of shell in 2010 is 225 billion, which high from 2009 i.e.180 billion
Marketing expense in 2009 and 2010 is 401,551 million and 185,485 millionrespectivelyIf we compare both the years marketing expense decreases in 2010 but revenueincreases050,000100,000150,000200,000250,000300,000350,000400,000450,000Rupees in Million2009 2010
Comparing Revenue and marketing expenseof PSO 2010As seen below the revenue of PSO in 2010 is 14.2 billion, which high from 2009i.e. 13.2 billionMarketing Expense in 2009 and 2010 is 310,861 million and 167,465 millionrespectively050,000100,000150,000200,000250,000300,000350,0002009 2010
Comparing the figures of Shell & PSO 2010In 2010 Shell decrease its marketing budget from 401,551 Million and 185,485Million but due to other factors and strong conditioning of the product its revenueincreasing from 180 Billion to 225 Billion.Whereas, PSO also decrease its marketing budget from 310,861 Million to 167,465Million but due to having customers like Pakistan Railway, Pakistan InternationalAirline, Pakistan Army etc. its revenue increases from 13.2 Billion to 14.2 Billion.Comparing Revenue and marketing expenseof Shell 2011As see below the revenue of shell in 2011 is 250 billion, which high from 2010 i.e.225 billionMarketing expense in 2010 and 2011 is 185,485 million and 329,815 millionrespectively
Comparing Revenue and marketing expense ofPSO 2011Marketing Expense in 2010 and 2011 is 167,465 million and 358,507 respectively050,000100,000150,000200,000250,000300,000350,0002010 2011RUPEESINMILLIONYEAR1212.51313.51414.52010 2011AxisTitleAxis TitleRUPEES IN BILLION
Comparing the figures of Shell & PSO 2011In 2010 Shell increases its marketing budget from 185,485 Million to 329,815Million which increase its sale which directly affect revenue which increases from225 Billion to 250 Billion.Whereas, PSO also increase its marketing budget from 167,465 Million and358,507 Million but due to the declining of Pakistan Railways, PakistanInternational Airline and its other customers its revenue decreases from 14.2Billion to 12.9 Billion.0100,000200,000300,000400,0002010 2011RUPEESINMILLIONYEAR
Current Year Performance:The current year financial report is not uploaded yet. But what data we concludedfrom the half year and quarterly report is given below:In 30thSeptember 2011 gross profit of Shell is 9,868,893 and sales is 187,958,915In 30thSeptember 2012 gross profit of shell is 7,520,946 and sales is 175,822,315So we can expect that revenue is decreased this year.PSO didn’t upload any data till now.Conclusion2009In 2009 Shell decrease its marketing budget from 496,098 Million to 401,551Million which decrease its sale which affect directly the revenue of Shell and itsrevenue decreases from 182 Billion to 180 Billion.Whereas, PSO increase its marketing budget from 285,152 million to 310,861million which increases its sale which affect directly the revenue of PSO and itsrevenue increases from 13 Billion to 13.2 Billion.2010In 2010 Shell decrease its marketing budget from 401,551 Million and 185,485Million but due to other factors and strong conditioning of the product its revenueincreasing from 180 Billion to 225 Billion.Whereas, PSO also decrease its marketing budget from 310,861 Million to167,465 Million but due to having customers like Pakistan Railway, Pakistan
International Airline, Pakistan Army etc. its revenue increases from 13.2 Billion to14.2 Billion.2011In 2010 Shell increases its marketing budget from 185,485 Million to 329,815Million which increase its sale which directly affect revenue which increases from225 Billion to 250 Billion.Whereas, PSO also increase its marketing budget from 167,465 Million and358,507 Million but due to the declining of Pakistan Railways, PakistanInternational Airline and its other customers its revenue decreases from 14.2Billion to 12.9 Billion.2012The current year financial report is not uploaded yet. But what data we concludedfrom the half year and quarterly report is given below:In 30thSeptember 2011 gross profit of Shell is 9,868,893 and sales is 187,958,915In 30thSeptember 2012 gross profit of shell is 7,520,946 and sales is 175,822,315So we can expect that revenue is decreased this year.PSO didn’t upload any data till now.