Project of EMBA 2K14 Class (NUST Business Project)
Scope of project was to identify B2B customers of Exxon Mobil in Pakistan , explore segments withing B2B customers portfolio , study and prioritization of sales channel and CRM strategies across different segments.
Group Members
Shiraz Abbasi
Mohsin Khan
Ali Raza Anjum
Mutahir Javed
Raphae Fahim
Ahsan Iqbal
EMBA 2K14 NBS
3. Present
Start
1866
1999 2003
2016
2016
• American Multinational Company
• 200 + Countries
• Fortune 500 – Number 2
• Share Price 89$
History
Vacuum Oil
Exon Mobil Emergence
World Largest Oil and Gas
Corporation
Strongest Earning Performance
Net Income, Cashflows
4. Innovation
Petrochemicals
Refiner
Distributor
Distributor Well developed distribution
network followed by stringent quality &
training requirements
Refiner Largest global refiner & they are
fully integrated with Exon Product line
Petrochemicals Leader in almost every aspect of
energy and especially petrochemicals
Innovation Rely on innovation to meet
growing needs of worlds growing energy
needs
Products and Strategy
5. Local Operations
Entered 1997
Not Blended in Pakistan
Every Product from Singapore
Karachi, Corporate Head office
MAL Pakistan Pvt. Ltd.
6. Local Market & Segmentation
Local Market is flooded with low priced Products
Dominated by Small Scale Industries
Trend to use reused/reclaimed oil
7. Segment # 1
Power Generation
Independent Power Plants
Captive Power Plants
Many private and government funded
organizations
K Electric
Hubco
8. Segment # 2
Oil & GAS
Exploration and Production
Government OGDL
Semi Government
MNC (OMV, ENI, MOL etc.)
Servicing Companies
Schlumberger, Halliburton, Weatherford
Prefer Quality over Price
Strong Global Alliance
12. Channel Selection
Power Oil & GAS Textile Cement
Dual Channel Strategy
Mostly Directly Served
Limited Distributors exists
Depends upon Account
Credit Risk
Big Accounts Direct Selling
KESC
Hubco
Nishat Chunnian
Only Direct Channel
Dedicated Workforce
Trained Workforce
Commissioned Agents
Train the Trainer to
train clients
Premium Products Low Priced Products
Dual Channel Strategy
Mostly Indirectly Serviced
Geographically Spread Clients
Credit Risk is high
Small Organizations
DUAL Channel Strategy
Maximize Profit/Market Share
Close Follow-ups Required
Trained Workforce
Quarry Section Through
Indirect Channel
13. Power Segment
Close Follow-ups
Discounts
Social Engagement
Business meals, Special Events
Categorized in Category A, B, C Customers
Value Added – Category A & B
Transactional – Category C
14. Oil & GAS Segment
Categorized in Category A Customers
Expectations Management
Cosponsor ship of events
Customized Trainings
Onsite
Offsite
Collaborative
Value Added Services
15. Textile Segment
Categorized in Category A,B,C,D
Category A & B (Nishat, Gul Ahmed) – Direct
Low Revenue Generation Customers - Indirect
Value Added – Category A & B
Transactional – Category C & D
Incentives to convert
transactional Relationship
Discounts
Business Meals
16. Cement Segment
Categorized in Category A & B Customers
Collaborative Intense
Value Add
Regular Business Meals
Regular Social Events
Regular Seminars
Regular Trainings
17. Cement
Segment
2011Oil
&
Gas Textile
Deep Dive Into One Segment
Why Cement Segment is preferable
Premium & Flagship Products Market
High Margin Products
Exponential Growth Expected in Future – CPEC
Customized Technical Services Opportunity
19. Demand Drive in Cement Industry
Cement
Industry
Product
Mix
Mining
Lubes
Quary
Lubes
Plant
Lubes
Captive
Lubes
20. Value Selling – Total Cost of Ownership (TCO)
Total Cost of Ownership
Competitor Grease Mobilgrease XHP 222
Expenditure Reduction(A)
Grease Consumption /days Kg 6 0.49
Total Consumption /month Kg 180 14.7
Cost of Grease per Kg Rs. 630 780
Cost of Lubricant /Month Rs. 113400 11466
Annual cost of Lubricant Rs. 1360800 137592
Total Annual Savings Rs. 1223208
Total Annual Savings USD 11222.1
Revenue Enhancement(B)
Bearing Failures/ Year No's. 2 0
Cost of bearing Rs. 30000 0
Total Cost of Bearing Failures Rs. 60000 0
Cost of savings by Bearing Failures Rs. 60000
Production loss due to Per Bearing
failure
Rs. 100000 0
Production loss due to Bearing
failures
Rs. 200000
Total Savings (PKR) Rs. 260000
Total Savings (USD) USD 2385.3
Total Cost of Ownership -Summary
PKR USD
Expenditure Reduction(A) 1223208 2880
Revenue Enhancement(B) 260000 6900
Total Associated Savings 1483208 13607.4