Sui Southern Gas Company LTD

1. AN INSIGHT ON
SSGC (LTD)
MARKETING MANAGEMENT

2. SSGC - INTRODUCTION
Sui Southern Gas Company (SSGC), Pakistan's premier
natural gas utility, with majority ownership by the
Government of Pakistan.
Operating since 1954 in Sindh and Balochistan, SSGC
focuses on transmission, distribution, and high-pressure
system installation.
It purchases gas from over 24 local and foreign Exploration
and Production Companies for supply across its franchise
areas.

3. VISION
MISSION
To meet the energy requirements of customers through reliable,
environment-friendly, and sustainable supply of natural gas, while
conducting the business professionally, efficiently and ethically and
with responsibility to all our stakeholders, community, and the nation.
To be a model utility providing quality service by maintaining a high
level of ethical and professional standards and through optimum use
of resources.

4. SSGC’s
CURRENT MARKETING SITUATION
SSGC caters to five major segments, with domestic being the
largest. The others include commercial, industrial, captive
power, and CNG. Notably, the company distinguishes between
natural gas and LNG-based consumers.

5. SSGC holds a monopoly in its franchise provinces, facing no direct competitors.
However, SSGC LPG serves as an alternative, competing with various distributors
like SLL. Safety concerns arise with LPG, and SSGC emphasizes the advantages of its
products, including blast-proof fiber cylinders.
Covering 45,000 kilometers across Sindh and Balochistan, SSGC boasts
the world's only pipeline-based network, supplying gas directly to
homes. The aging infrastructure, about 60 years old, poses challenges.
In areas where affordability allows, SSGC recommends considering
alternative options like LPG cylinders.

6. Balochistan poses unique challenges, where many
customers face difficulties paying, yet gas is crucial for
their livelihood, especially during cold winters. SSGC's
winter campaign in Balochistan focuses on raising
awareness about gas safety, reducing accidental deaths
due to gas leakage.
Due to insufficient natural gas resources, the government
has imposed a moratorium on new connections. SSGC
advises against new connections until the gas supply can
adequately meet the needs of existing consumers.

7. O
T
W
S
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
Exploration & Extraction
Innovation in gas production
Exchange rate vulnerability
Untapped natural gas reserves
Policy constraints
SWOT
ANALYSIS
Extensive Distribution Network
Monopoly in Franchise Provinces
Widespread Workforce
Infrastructure Hub
Diversification
Privatisation Risks
Potential Market Entry
Policy Changes

8. SSGC’s OBJECTIVES
Image Building Gas Conservation
Awareness
Counter Gas Theft
Enhance SSGC's image through
effective communication on multiple
platforms.
Utilize social media, print, and
electronic media for transparent
communication on internal initiatives.
Promote awareness about gas conservation
practices.
Emphasize efficient gas usage, such as
cooking on low flames to reduce
consumption
Run safety campaigns to educate the public
on proper gas appliance usage.
Combat gas theft through the Counter
Gas Theft Operations Department.
Identify theft-prone areas, conduct
raids, and take legal actions against
offenders, imposing penalties and
imprisonment.

9. Encounter challenges due to a prolonged procurement
process.
Deal with extensive approval procedures, audits, and
bureaucratic delays
.
This extended process consumes a considerable part of
the year, hindering the timely execution of marketing
plans.
Budget Constraints:
Face significant budget
reductions exceeding 50%
annually.
Impacted by organizational
financial losses, resulting in
cuts across various areas,
especially marketing.
Lengthy Procurement Process:
ISSUES FACED BY SSGC

10. Experience difficulties in
implementing planned marketing
initiatives.
Face uncertainty due to delays in
budget approval, impacting the
ability to execute strategies
effectively.
Specific projects, like TV
advertisements, face hurdles in
finalization and execution.
Execution Delays: Budget Approval Status Uncertainty:
Current budget approval status adds
uncertainty to project execution.
Despite efforts to finalize initiatives,
delays in budget approval affect the
seamless implementation of marketing
strategies.

11. The emphasis of the communication strategy is not just marketing but
educating consumers about responsible gas usage. It includes
highlighting the illegality and dangers associated with using gas on
generators and compressors.
Consumers are often unaware of the risks, such as explosions leading to
loss of life, associated with improper use of gas on certain devices. The
strategy aims to raise awareness to prevent such incidents.
Positioning of the Product
SSGC is actively exploring alternative energy and seeking products to
address gas shortages.
The alternatives must meet the specific criteria - compatibility with the
network, sufficient density, and usability in existing stoves - to be viable
and cost-effective.
Product Strategy & Launches
SSGC’S
MARKETING
STRATEGY

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SSGC employs three distinct communication channels, ecompassing
print media, digital PR, and electronic media.
Within digital media, platforms such as LinkedIn, Facebook, Twitter,
and Instagram are leveraged for marketing campaigns. In the realm
of print media, SSGC engages with various newspapers and
magazines.
OGRA, the regulatory authority, governs decisions on gas
pricing, leaving the company with no control over the rates set.
The company hasn't reached a tariff rate in rupee terms that
covers the $6 purchase cost, resulting in persistent losses and
not even breaking even.
Pricing Strategy
Marketing Communication Channels

13. SSGC’S ACTION PLAN
Campaigns
Awareness Initiatives
Marketing campaigns throughout the year with a
specific timeline such as the default & theft
awareness campaigns.
Executing campaigns like the conical baffle awareness
initiative, emphasizing conservation and transitioning
from hard copy to e-billing.

14. BUDGET ALLOCATION ACROSS THE PLAN
Another 30% designated for print media, covering
materials like brochures, pamphlets, and newspaper
advertisements.
Digital Media:
Print Media:
Electronic Media:
Approximately 30% of the budget allocated to digital
media for online campaigns and promotions.
The remaining budget portion dedicated to electronic
media, encompassing TV and radio advertisements,
ensuring a comprehensive marketing approach.

15. Employing three to
four monitoring
agencies for assessing
campaign and
communication tool
effectiveness.
Monitoring agencies
provide feedback on
campaign
performance,
collaborating with
electronic agencies to
analyze metrics,
impressions, views,
and overall impact.
MONITORING MARKETING STRATEGIES
Utilising a mix of
traditional print media
and electronic
channels, including
display ads in print
and TVCs or DVCs.
Engaging in activities
like printing tickets,
securing news coverage,
and fostering
relationships with
reporters for timely and
accurate news
dissemination.
Covering various
events, from
significant
announcements to
CSR initiatives, to
gauge the impact of
marketing efforts.

16. Conducting evaluations
after each campaign to
assess its effectiveness,
with a more prominent
focus on digital
marketing.
Reviewing resource
allocation, for example,
assessing whether
excessive resources
were allocated to
specific platforms like
YouTube.
Adjusting strategies
based on the analysis of
platform effectiveness,
shifting focus to
platforms yielding
better results.
Shaping future
marketing strategies
based on the analysis of
optimal coverage and
favorable response from
different mediums.
REVEWING THE MARKETING CONTROLS