MODULE CODE:

BD 315 013 S

MODULE TITLE:

Marketing Consultancy

WORD COUNT:

7000

STUDENT IDs:

Definitive Marketing Solutions Think Different, Be Different...

Presents Its: Recommendations To Phoenix Park Gas Processors Limited

Executive Summary:

Project / Team Details

TEAM Name:

DEFINITIVE MARKETING SOLUTIONS

Slogan:

Think Different, Be Different....

Project Team Members:

Project Interface/Client Contact Project Planner/ Scheduler Project Research Strategy Officer Project Coordinator/ Team Leader Project Document Controller

Richard Mungalsingh Neera Moonesar Marcus Sookram and Natalie Samaroo-Bachan Delicia Villaroel Arlene Balkaran

Case Study Company (Client): Phoenix Park Gas Processors Ltd. (Referred to within this report as PPGPL)

TABLE OF CONTENTS
1.0 INTRODUCTION ..................................................................................................................... 1.1 Introduction to Company ........................................................................................................ 1.1.1 Background to Industry and Environment .............................................................. 1.2 Research Problem ................................................................................................................. 1.3 Working Title ......................................................................................................................... 1.4 Objectives .............................................................................................................................. 1.5 Justification ........................................................................................................................... 2.0 METHODOLOGY .................................................................................................................. 2.1 Types of Research ................................................................................................................. 2.1.1 Descriptive Research ............................................................................................. 2.1.2 Explanatory Research ........................................................................................... 2.1.3 Archival Research ................................................................................................. 2.1.4 Justification of Research Methods ........................................................................ 2.2 Types of Data ........................................................................................................................ 2.2.1 Qualitative Data .................................................................................................... 2.2.2 Quantitative Data ................................................................................................. 2.2.3 Justification of Select Data Type .......................................................................... 2.3 Methods of Data Collection .................................................................................................. 2.3.1 Secondary Methods ............................................................................................. 2.3.2 Primary Methods .................................................................................................. 2.4 Analysis of Data .................................................................................................................. 2.5 Limitations to Research ....................................................................................................... 2.6 Ethical Issues ...................................................................................................................... 3.0 RESEARCH FINDINGS .......................................................................................................

1.0 INTRODUCTION

1.1 Introduction to the Company/ Client: Phoenix Park Gas Processors Limited (PPGPL) is one of the largest gas processing facilities in the Americas. Operating since 1991 out of the heart of Point Lisas Industrial Estate, PPGPL provides an essential natural gas conditioning service for the National Gas Company of Trinidad and Tobago (NGC).

NGC currently holds 51% shares of PPGPL, ConocoPhillips Incorporated (39%), and Pan West Engineers & Constructors Incorporated (10%). Even though being majority owned by a State Enterprise, PPGPL operates similar to a private company buying, transporting and selling its products, managing its finances, employing staff, paying taxes and planning for its future.

Being an excellence driven, customer focused company PPGPL has successfully maintained its core business for over 16 years in natural gas processing, NGL aggregation, fractionating and marketing natural gas liquids from the Atlantic LNG Trains 1, 2, 3 and 4 facilities. With continuous improvement focused on its people and business PPGPL has an excellent track record in health and safety as evident by its 14 year safety record. Much emphasis is also placed on Corporate Social Responsibility, making meaningful contributions to national and community projects within the island, maintaining one of its CORE VALUES of Valuing all People.

[Source: www.ppgpl.com; client interview]

1.1.1 Background of the Industry and Environment: Trinidad and Tobago is one of the most prosperous, highly diversified and industrialised countries in the Caribbean with an energy based economy responsible for 42.5% of the nations GDP (Gross Domestic Product). PPGPL being a major competitor within the petrochemical sector plays an integral role with its strong operating efficiencies manifested in very low operating costs. This principle enables PPGPL to provide its major products of Propane, Butane and Natural Gasoline at exclusively low prices, always holding a competitive advantage to its rivalry. Dominating its market position, PPGPL supplies the Caribbean with propane and butane whilst supplying its natural gasoline to the North and South America. Having distinguished itself with a reputation both locally and internationally, for efficient, highquality and reliable service, PPGPL also derives a significant advantage from its ability to service its regional customers with requisite volumes and product specifications required for this market and strong customer loyalty for over a decade. However, over recent times the find of Shale Gas has been a point of concern for PPGPL. Research originally indicated that Shale Gas is a cleaner and more environmentally friendly product than Natural Gas, in addition to being marketed along the lines of highly economical and cost effective drilling operations. This can pose negatively on Natural Gas Processors and by extension the sale of natural gas.
[Source: www.ppgpl.com; client interview; ministry of trade and industry 2011 booklet]

1.2 Research Problem: With the introduction of Shale Gas on the market, Natural Gas could experience sales decline which would directly impact the operations of PPGPL. However, it is in the power of PPGPL to ensure their product offerings remain at highest standards delivering a high quality product and service experience to its customers at all times. With the need to control and encourage better relationships and communication with customers, PPGPL designed an internal customer survey report to manage and track customers views of the organisations performance. When compared 2008 to 2009 surveys, marketing department saw a 1% decline in customers perception of overall performance. Even though a very small decline, management believes some attention should be given to prevent a further slide as they are on a drive to encourage better customer/client relationships. Major areas of concerns identified by the survey: - Products - Facilities - Reliability of Supply - Communication Based on the above, Marketing Officer of PPGPL Mrs. Kellee Richards identified the following areas of major concern when interviewed (See Appendix1). Mrs. Richards wishes to have Definitive Marketing Solutions analyse the identified areas and present recommendations to her department. Marketing Department holds the strongest relationships with customers. However, the department wishes to have some measures implemented with the aim of covering the following areas retaining customers, attracting new customers and dealing with difficult customers. In addition, measures to encourage the entire organisation in sharing the same holistic view of the customer. As appointed consultants for PPGPL, the team analysed the indicated areas and found each one to be a different theoretical area of study. However, to meet the expectations of the client by providing recommendations to outline all areas of concern, Definitive Marketing Solutions

strategically linked the problem to the newly developed theoretical area of Customer Relationship Management which covers each area identified above. 1.3 PROJECT WORKING TITLE An evaluation of the effectiveness of Phoenix Park Gas Processors Limited (PPGPL) Customer Relationship Management (CRM) Plan

1.4 PROJECT OBJECTIVES - To analyse the internal and external environment of the organisation within its industry - To examine Customer Relationship Management within the organisation - To determine the effectiveness of the organisations Customer Relationship Management Systems - To present recommendations and conclusions on the basis of strengths and/or weaknesses of the analysed data 1.5 Justification of Objectives: - The environmental scan will be carried out to develop a better understanding of the environment in which the organisation operates. This will help determine the current position, future direction, identify trends and changes which will be used in the analysis of the research problem. - The existing Customer Relationship Management processes will be examined to identify strengths and weaknesses within the organisation. The results will help to draw conclusions and recommendations to the problems identified. - By assessing the effectiveness of the current Customer Relationship Management Plan, recommendations can be made based on the findings enabling maximum effectiveness. - Recommendations and conclusions will be drawn based on strengths and weaknesses of the research carried out. This will provide for improvements where needed within the organisations Customer Relationship Management, developing improved company/client relationships and achieving success of PPGPLs Overall Performance.

2.0 METHODOLOGY

2.1 TYPES OF RESEARCH This area of the report will explain how Definitive Marketing Solutions aims to carry out research on the client company and the methods which will be utilized for data collection.

Saunders et al 2007:602 defines methodology as the theory of how research should be undertaken, including the theoretical and philosophical assumptions upon which research is based and the implications of these for the method or methods adopted.

2.1.1 Descriptive Research Descriptive research is to portray an accurate profile of persons, events and situations (Robson 2002: 59). The main goal of this type of research involves gathering data that describe events and then organizes, tabulates, depicts, and describes the data. It is quantitative and uses surveys, interviews, observations and portfolio. Descriptive research also known as statistical research, describes data and characteristics about the population or phenomenon being studied. This answers the questions who, what, when, where and why. [www.sensagent.com]

2.1.2 Explanatory Research Explanatory research can be defined as a method or style of research in which the principal objective is to know and understand the trait and mechanisms of a situation or problem in order to explain the relationship and association between the independent and dependent variable. [Saunders 2009]. It builds on exploratory and descriptive research and goes on to identify the reasons for something that occurs. Explanatory research looks for causes and reasons. This research is done through the use of questionnaires, interviews, group discussions and random sampling.

2.1.3 Archival Research This methodology is primarily concerned with the examination of historical documents. It is concerned with any recorded data. [Milton and Jenkins 1985] In addition Archival Research strategy allows research questions which focus upon the past and changes over time to be answered via exploratory, descriptive or explanatory methods. [Saunders et al 2009]

2.1.4 Justification of Research Methods Definitive Marketing Solutions will apply all the above research methods as follows: Descriptive Research will be used to focus on the strengths and weaknesses of the

companys current situation in order to make appropriate recommendations. By gathering descriptions of what is and comparing them to what the organisation would like managers at PPGPL can see the relevant areas that needs to be addressed and improved. This can be achieved by the use of visual aids such as graphs and charts. - Explanatory Research methods will be used to allow researchers to conduct research and gather information which will explain the possible downfall in the current Customer Relationship Management Plan identifying the level of effectiveness and enabling the researchers to achieve its objectives through the use of the following methods - questionnaires, interviews, group discussions and random sampling. - For this research project Archival Research is recommended, since, all the data/ information collected will be acquired via the companys database (Financial reports, surveys, company overview etc.)

2.2 TYPES OF DATA Data analysis techniques are divided into descriptive (Quantitative) and statistical (Qualitative) analysis. Tukeys, 1977 states the uses of diagrams are essential when exploring and understanding data. For example: charts, graphs, surveys etc. 2.2.1 Qualitative Data Qualitative researchers aim to gather an in-depth understanding of human behaviour and the reasons that govern such behaviour. This method investigates the why and how of decision making, not just what, where and when. Qualitative data analysis allows the researchers to develop theory from data collected. [Saunders et al 2009] 2.2.2 Quantitative Data Quantitative research uses sampling techniques (such as customer surveys) whose findings may be expressed numerically, and are amenable to mathematical manipulation enabling the researcher to estimate future events or quantities.
[http://www.businessdictionary.com/definition/quantitative-research.html]

2.2.3 Justification of Select Data Type Qualitative Data - This type of data collection will be used allowing researchers to investigate the why and how of the research problem. The analysis will identify customer and employees perception of the company, identifying the perceived need for improvement with the existing Customer Relationship Management Plan. This will be done by gathering data through mainly interviews and questionnaires. Stutelys (2003) statement - a minimum number of 30 for statistical analyses provides a useful rule of thumb. However, based on size of customer base, sample population will be restricted to no more than twenty. Quantitative Data - This type of data will enable the researchers to analyze the data collected from the research design (samples, statistics, graphs, charts etc.) identifying the problematic areas of the companys Customer Relationship Management Plan. This analysis can be used by the company to improve or recommend long-term strategies for building and improving future relationships.

2.3 METHODS OF DATA COLLECTION Data can be defined as the facts or things used as a basis for inference or reckoning, (Collis and Hussey, 2009 p.160). The following were the chosen methods/research tactics to collect the relevant data to satisfy the research objectives: 2.3.1 Secondary Methods Secondary data is described by Collis and Hussey (2009) as data or information that already exists somewhere having been collected for another purpose. The secondary data sources used were the companys annual reports, customer surveys, internet data, stored data, and other existing sources. Saunders et al., (2009) explains that secondary data can provide comparative and contextual data. The group collected information from these sources and compared the results obtained with the data collected from actual practices. Additionally, secondary data was obtained quickly and required fewer resource requirements. Data collected from secondary sources are more open to public scrutiny and therefore should be reliable. 2.3.2 Primary methods According to Cooper and Emory (1995, p.240), Primary data comes from original sources and are collected especially to answer our research question. Primary Data Collection Tools: focus groups, interviews and group discussions, semi-

structured interviews, unstructured interviews, questionnaires, texts, pictures, other materials. Interviews Kahn and Cannell (1957) as cited in Saunders et al., (2009, p. 213) define an interview as a purposeful discussion between two or more people. Of the three categories of interviews; structured, semi-structured and unstructured, the one chosen for the groups data collection was the semi-structured interview. This allowed flexibility in interviewing personnel from the various departments across the company. A list of questions, highlighting the relevant themes to be covered was compiled. For each interviewee, a variety of questions was selected from the list, varying with the specific organizational context. In some instances, the order of the questions varied with the flow of the interview, allowing persons to give their general perception and views of the company in a free flow of information.

The interviews were conducted by the group and notes taken by the Project Document Controller and later transcribed. The interviews were executed at a restaurant after working hours to facilitate the participants time schedule avoiding undue pressure in evaluating and answering the questions. The individuals chosen for these interviews were from functional departments across the company. This was done to get feedback on the type and level of interaction between the company and customers. These persons included: The Chemical Analyst Mr. Dean Clarke The Shipping Coordinator Mr. Aaron Ramnath The Marketing Officer Mrs Kellee Ann Richards Product Loader Mr. Javed Hosein Human Resource Officer Ms. Joanne Sampath

According to Jankowicz (1995, p.210), rich and supportive data can be obtained from the interview as it facilitates the asking of more complex questions that could not be asked on the questionnaire. The interviewer was able to clear up any ambiguity in the question and determine face-to-face how individuals thought and felt about the issue. Other advantages were that the interviewer asked additional questions and changed the order of questions to better explore the research question and objectives Questionnaires Another method of data collection used was the questionnaire. According to Collis and Hussey (2009, p.354) a questionnaire is a method for collecting data in which a selected group of participants are asked to complete a written set of structured questions to find out what they do, think or feel. Mainly closed questions were used for ease of analysis. These collected factual data to make it easier for respondents to answer as well as to minimize non-response rate. A few open ended questions were used to give participants the opportunity to express their opinions. The questionnaires were administered to both local and international customers (100% of the population) and were self-administered. The method chosen for administering of questionnaires

was delivery and collection within a three day period. All questionnaires were electronically administered and retrieved in the time allotted. According to Sekeran (2009, p.251), the questionnaire avoids interviewer bias and saves time and expense as a large number of persons can be surveyed together, in a short time. Response is generally higher because of anonymity. The group achieved an 80% response rate on the effectiveness of PPGPLs customer relationship management. 2.4 ANALYSIS OF DATA Data was analyzed using quantitative and qualitative methods. Zeithaml, Parasuraman and Berrys (1988) SERVQUAL model was used as the guide for the analysis of data for this research because of its emphasis on the quality of service offered to customers. Empathy, reliability, tangibility, responsiveness, assurance were analyzed using tabulation and descriptive methods. Investigating CRM involved both inductive and deductive reasoning processes at some time in the project. A deductive approach develops a theory and hypothesis (or hypotheses) and designs a research strategy to test the hypothesis. An inductive approach collects data and develops theory on the basis of the data analysis. Inductive reasoning, by its very nature, is more open-ended and exploratory, especially at the beginning. Deductive reasoning is narrower in nature and is concerned with testing or confirming hypotheses Saunders et al. (2007).

2.5 LIMITATIONS TO RESEARCH Collis and Hussey (2009) explain that a limitation identifies potential weaknesses in the research. Some of the difficulties faced during the course of the research have been identified. PPGPL was also in the process of carrying out their internal Customer Survey Report at the same time the researchers required executing questionnaires, as a result questions were kept brief and to the point to avoid confusion between PPGPL and Customer. Analytical methods -----Time and cost constraints.

2.6 ETHICAL ISSUES Ethics is defined as the norms or standards of behaviour that guide moral choices about our behaviour and our relationships with others. (Cooper and Schindler, 2008: p.34) Research ethics therefore relates to the questions about the formulation and clarification of the research topic; how the research is designed, gain access, collect data, process, and store, analyze data and write up the findings in a moral and responsible way. (Saunders et al, 2009: p. 184) The researcher proposes best practice in ethical conduct for the completion of the proposed subject under investigation. The author will ensure moral responsibility is maintained, protect the rights of people involved in the study as well as their privacy and sensitivity. The confidentiality of those involved in the observation, ensuring anonymity and privacy, honesty, openness, objectivity, integrity.

3.0 RESEARCH FINDINGS

OBJECTIVES OF COLLECTING DATA Definitive Marketing Consultants presents results of research conducted on PPGPL. Data collected, both qualitative and quantitative will be analysed with the aim of achieving the objectives of the research.

3.1 Marketing Research Findings The environmental audit was executed through the use of the understated frameworks: Internal Analysis Mc. Kenzies Seven Ss, Marketing Mix and SPICC Factors

External Analysis SWOT PESTLE and Porter Five Forces

3.1.1 Internal Analysis Mc Kenzies Seven Ss The internal environment or micro environment of Phoenix Park Gas Processors Limited (PPGPL) was analyzed by the use of the following frameworks. Data was collected and analyzed through secondary research and was retrieved via the companys websites. [http://www.ppgpl.com/company.html]. The Mc Kinsey Seven S Model incorporates different perspectives and mediates an overview on the relationship and dependencies of organizational factors (Kerth and Putman 2005 p. 59). PPGPL aims to position itself as the leader in the energy sector and is committed to STRATEGY become the number one in the natural gas liquid business globally by 2020. Also to be number one in safety & environment and customer focus. The organization consists of layers which are headed by the board of directors, leadership team, supervisory team, technicians, and contract employees. The daily operations of PPGPL are carried out by all the relevant departments of the business; Operations, Human Resource, Finance, Marketing and Sales department etc. SYSTEMS Each business unit is required to maintain systems of internal control which is appropriate to the nature and scale of its activities and addresses all significant operational and financial risks they face and to safeguard shareholders. The company applies participative/democratic style management, which encourages STYLE employee participation before a decision is made by management. They are trained in operations, finance, customer focus, leadership and innovation PPGPL employs one hundred and sixty people. They are trained in operations, finance, STAFF customer focus, leadership and innovation. It is management's responsibility to ensure the presence of a safe and healthy workplace. Employees include specialist in operations, engineering, and maintenance skills. The success of the organization is tied directly to the adherence of the following core values: safety and environmental preservation, customer satisfaction valuing all People, ethical business conduct, quest for excellence, The company budget for high overseas training for high tech equipment and specialist SKILLS function. The skills required includes; Managers, Supervisors, Lab Technicians, Process Technicians and Maintenance Technicians.
SOURCE: [http://www.ppgpl.com/company.html].

STRUCTURE

SHARED VALUES

3.1.2 Internal Analysis Marketing Mix

PRODUCT - PPGPL provides gas of high quality standard to its customers by processing raw, natural gas. PPGPL supplies propane, commercial butane and natural gasoline. PRICE - Industrial prices track international oil market prices. PLACE/ DISTRIBUTION - The Companys gas processing and loading dock facility is located at Point Lisas, Trinidad. Delivering its product via pipelines to customers. PROMOTION - PPGPL has a very active corporate social Responsibility program which includes gifts to the nation and sponsorship. PHYSICAL EVIDENCE - The facility at Point Lisas delivers all the products and is equipped with air conditioned team rooms; it is centrally located and has two loading docks at Yara approximately one mile from its office. PROCESS - The Company operates its facility according to international standards and codes which informs its procedures and policies. It is governed by the best practices in the oil and gas industry. PEOPLE - PPGPL has been able to attract and keep professionals mainly due to its safety accomplishments, reliable reputation and efficient operations. The company offer competitive salary, specialist training, and a work environment which allows the employee to grow and develop.

3.1.3 Internal Analysis SPICC Factors

MARKET SITUATION SUPPLIERS - Natural Gas is supplied to PPGPL by the National Gas Company of Trinidad and Tobago. NGC will network the offshore producers, eg, British Petroleum of Trinidad and Tobago, British Gas, and Broken Hill Proprietors to ensure a reliable supply to PPGPL. Petrotrin and Atlantic LNG will supply low pressure and Natural Gas Liquids for fractionating. PUBLICS - The organization that has ventured in the business include; shareholders, civil society, groups, governments and the community. PPGPL has upgraded computer labs in the schools and refurbish cricket grounds. INTERMEDIARIES - The Company utilizes both direct and indirect modes of distribution. PPGPL will liaise with agents for vessels in shipping as well as charterers of vessels when required. CUSTOMERS - The customer base is local, Caribbean and Central America. Target markets for propane and butane are the Caribbean, markets for gasoline is North America. Customers are B2B. COMPETITORS - Venezuela is the companys main competitor for all products. Petrotrin is the local competitor for Propane and Butane.

3.1.4 External/ Internal Analysis - SWOT

This framework analyzes the strengths, weaknesses, opportunities and threats of the organization.
Created by: Definitive Marketing Solutions (2011). [http://www.ppgpl.com/company.html]

STRENGTHS
Flexibility in responding to customers requests e.g. dock capabilities, varying cargo sizes. Preferred call of duty by LPG customers. Quick turnaround of vessels. Highly skilled and competent management operating its physical assets in a safe, reliable, flexible and efficient manner that preserves the environment and staff. Excellent financial ratings.

WEAKNESSES
In ability to influence governments decisions High maintenance costs. Barriers to entry are high. Effective communication channels with clients in different time zones and different cultural backgrounds Insufficient use of technology Inability to change cargo nominations at late requests Supplied cargo bounded by contracts

OPPORTUNITIES
Faster access to products via the internet, online growth. The company is looking at expansion in global market (Americas and Europe). Opportunities along the value chain downstream industries. Joint venture with customers and suppliers. Availability and introduction of new technology financial crisis.

THREATS
Economic slowdown due to global recession and Loss of sales as alternative and renewable energy becomes more predominant. New marketing trend of exploring the option of finding Shale Gas. The introduction of Shale Gas suppliers in strategic locations. Uncertainty of Trinidads gas reserves. Change in governments energy policy and tax structures. High competition (Venezuela).

3.1.5 External Analysis PESTLE Factors The external environment/ macro environment was analyzed through the use of the PESTLE Analysis and Porters Five Forces framework. These framework analyses the factors surrounding the industry in which PPGPL operates. Data was collected and analyzed through secondary research and was retrieved via the companys and government websites.

POLITICAL - Government heavily relies on the energy sector when forecasting budgets which has placed the country in a relatively stable position making very attractive to Multinationals. It also encourages constant growth for members of the energy sector. ECONOMIC - The need for cleaner fuel by downstream petrochemical users opened doors for MNCs as they were invited to submit proposals to the Government of Trinidad and Tobago for joint venture arrangements to meet the demand. However, Government maintains majority share within industries of this nature. SOCIOLOGICAL - Terrorism emanating from Trinidad may deter the US and other investors from investing in the country adversely impacting on Foreign Direct Investment. TECHNOLOGICAL - Technological advancements have changed the reserve picture of hydrocarbons eg. Improved ways of finding oil & shale gas, cost reductions, new drilling techniques by advancing pneumatic control systems to distributed and programmable logic controls. LEGAL - Government requires statutory reports in accordance to regulatory standards. All local statutory taxes are paid and PPGPL operates in compliance with guidelines set by local and international bodies, conducting business in compliance to guidelines set forth by these institutions.

ENVIRONMENTAL - Changing climate conditions in global warming can have negative effects in this region in increased hurricanes, skin cancer etc. Trinidad and Tobago is signatory to the Kyoto Protocol agreement to cap emissions.

3.1.6 External Analysis Porter Five Forces Model

5 Forces of Competitive Advantage

HIGH Potential Entrants (Threat of Mobility)

HIGH

Suppliers (Supplier Power)

Industry Competitors (Segment Rivalry) HIGH

Buyers (Buyer Power)

HIGH

Substitutes (Threat of Substitutes) LOW

Source: From M.E. Porter (1985) Competitive Advantage

Evaluation of Porters 5 forces on the Oil and Gas Industry

INDUSTRY FORCE

LIKELYHOOD

COMMENT

Threat of new entrant

High

Multinationals operates in the country, and has the revenue, technology, and experience in the country to build similar gas processing facilities.

Bargaining power of suppliers Threat of Substitute product Bargaining power of buyers Rivalry among existing firms

High

Few specialist suppliers are required for equipment and gas supply to the facility. They can dictate the profitability of the company.

Low

The products derived from oil and gas is certified for use in specific process designs. This is regulated by international quality control.

High Low

High competition exists with new gas finds and flexible payment schemes. There is only one gas processor in Trinidad and Tobago and the Caribbean.
Created By: Definitive Marketing Solutions (2011)

3.2 Qualitative Data Findings Findings from Interviews

Data was collected from interviews with Senior Staff at PPGPL in order to collate findings in response to research objectives. Interviews were conducted with three (3) representatives of PPGPLs internal staff, whereby participants were selected based on their level of customer interaction. CHARACTERISTICS OF PARTICIPANTS Category Gender Male Female Years of Experience at PPGPL 1 5 years 6 10 years Over 10 years 0 2 1 00% 67% 33% 2 1 67% 33% # participant % of Sample Size

# 1 2 3

Respondent Lab Technician Marketing Officer Shipping Coordinator

Response Y/N Y Y Y

3.2.1 Prcis of Interview Findings: The understated outlines the findings from each question asked to the interviewees. See Appendix 2, 3 and 4 - for copy of transcripts.

Q&A Q1 A1

Summary of Response To what extent do you interact with customers? Marketing has the most direct customer interaction in the organisation followed by Shipping (which is employed under the Marketing Department). All customer complaints are addressed and follow ups executed by Marketing. What are some of the customer relationship issues you encounter?
Pricing Issues, Cargo Nomination (changes), quality issues, unscheduled demands Do you think that CRM can assist you in meeting the changing needs of customers?

Q2 A2 Q3 A3 Q4 A4 Q5 A5

By making the organisation more marketable to meet change in demands How do customers address problems they encounter with PPGPL? All customer problems/issues are being addressed and handled by Marketing What do you think is your role in keeping customers satisfied? Vessel turnaround time crucial for customer satisfaction, specification of cargo, keeping the customer well updated (time difference can be a challenge)

Q6 A6

What is presently being done to strengthen customer relationships? Strengthen relationships by encouraging more client visits to allow face to face contact building better relationships, customer appreciation ceremony, customer interaction programs. What more can be done to strengthen customer relationships? Operating procedures, timely feedback, shared information within the organisation, enhanced customer awareness, employee training, more flexibility Do you believe that customers are satisfied with the service they get from PPGPL? Yes, based on good service, quick vessel turnaround, high quality product How do you access customers information? Customer database is confidential, info is shared via email and phone calls How do you view your relationship with customers? General consensus good What are the CRM related activities in your Company? Customer client visits, specially structured yearly surveys, customer database, customer appreciation What would be the benefits to your company of adopting a CRM Plan?

Q7 A7 Q8 A8 Q9 A9 Q10 A10 Q11 A11 Q12

A12 Q13

Improving service to customers by building on relationships and customer loyalty What are some of the external factors that affect customer relationship management?

A13 Q14

Cultural difference (language), time difference, restriction by governed contracts Do you think that the present CRM activities are sufficient to ensure good customer relationship with PPGPL?

A14

Current factors can only maintain, time to have something more structured that can build relationships. Customer Service Training happens as needed, by department. There is no organization-wide training in customer relationship management How does senior management view the adoption of a formal CRM Plan? Implementation will be challenging based on employee mindset Does your company employ an IT system that can support a CRM plan? No comprehensive computerized database, room for upgrade

Q15 A15 Q16 A16

Customer Relationship is a business strategy built on three important aspects: People Processes Technology

In order to examine PPGPLs Customer Relationship Management systems, focus was placed on these areas to determine what is currently being used and how. PEOPLE The organisations core value heavily surrounds Customer Satisfaction as a result staff is well grounded in understanding this concept. However, there has been little evidence that indicates the entire organisation (from top to bottom) shares the same holistic view of their customers. Findings indicated that there is no organisation wide training in Customer

Relationship Management and Customer Service Training is presently being carried out only by departments. PROCESSES Currently Customer Surveys are being used to track and record Customer activities in areas of satisfaction, dissatisfaction and change in demands. However, Marketing Department and Management are the only persons within the organisation aware of the results and implement measures working towards improvements. A database also exists to keep employees informed of customer activities but is also restricted to the marketing department for the sake of confidentiality. In support of customer relationship management, PPGPL offers yearly Customer Appreciation Ceremonies, encourages more customer/client visits as a form of building relationships on a face to face basis. TECHNOLOGY Organisation has at present intranet services used to communicate within the organisation but based on the close knit staff, tendencies of phone calls has shown more precedence. Information of PPGPL can be accessed from their external website but is also a bit limited not allowing much customer interaction. Staffs are well trained in the use of organisation wide technology, allowing all users to maximize on the usage of equipment and software.

3.3 Quantitative Data Findings Definitive Marketing Consultants conducted its distribution of questionnaires to PPGPLs customers during the period: 26th October to 01st November, 2011. The questionnaire was built on the determinants of the ServQual Model: tangibles, reliability, responsiveness, assurance and empathy. See appendix 5 for sample questionnaire. Overall response rate from a sample size of 20 surveys 80%

# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Company Aerogas ALNG - Dept 1 ALNG - Dept 2 British Gas - Dept 1 British Gas - Dept 2 British Petroleum Offshore - Dept 2 British Petroleum Offshore Dept 1 Carib LPG Caribbean Gas Chevron Geogas Gulf Stream - Dept 1 Gulf Stream - Dept 2 National Gas Company National Petroleum Petrotrin Repsol RYTTSA Shell Vitol TOTAL RESPONDENTS

Response Y/N Y Y Y N N Y Y Y Y Y Y N N Y Y Y Y Y Y Y 16

Local/ Regional L L L L R R R R R R R R R L L L L R R R 8 locals/ 12 regional

The findings will be presented on the basis of distributed questionnaires capturing customer views through the use of both open ended and closed ended questions.

3.3.1 Findings for SECTION 1 and 2 of Questionnaire SECTION 1 Questions were asked on a scale of 1 to 10: 1 to 2 Never 3 to 4 Seldom 5 to 6 Sometimes 7 to 8 Often 9 to 10 Frequently All graphs and tables are compiled on the basis of the questionnaire by Definitive Marketing Consultants. Question 1 PPGPL is a reliable supplier Table 1
Rating Sometime s 5 6 0 0% 1 6%

Never 1 2 Respons e % Respons e 0 0% 0 0%

Seldom 3 4 0 0% 0 0%

Often 7 2 13% 8 3 19%

Frequently 9 10 10 63% 0 0%

Graph 1

63% respondents rated PPGPL as a frequently reliable supplier, whereas 32% rated their reliability as often and 6% as sometimes. Question 2 PPGPLs facility is well equipped to meet clients needs Table 2
Never 1 2 Respons e % Respons e 0 0% 0 0% Seldom 3 4 0 0% 0 0% Rating Sometimes 5 6 0 0% 0 0% Often 7 8 0 0% 1 6% Frequently 9 10 7 44% 8 50%

Graph 2

Findings shows that PPGPLs clients rated their facility as being frequently equipped to meet clients needs with a rating of 94%, whereas 6% rated them as often.

Question 3 PPGPL consistently delivers contracted volumes and quantities Table 3

Rating Sometime s Often 5 6 7 8 0 0% 0 0% 2 13% 2 13%

Never 1 2 Respons e % Respons e 0 0% 0 0%

Seldom 3 4 0 0% 0 0%

Frequently 9 10 10 63% 2 13%

Graph 3

Findings show that PPGPL consistently delivers contracted volumes and quantities as 75% indicated frequently and 25% often.

Question 4 PPGPLs staff is helpful and efficient in responding to customer complaints

Table 4
Rating Sometime s 5 6 0 0% 1 6%

Never 1 2 Respons e % Respons 0 0% 0 0%

Seldom 3 4 0 0% 0 0%

Often 7 3 19% 8 5 31%

Frequently 9 10 7 44% 0 0%

Graph 4

PPGPLs efficiency to customer complaints was rated as - 44% respondents rated frequently, 50% often and 6% sometimes.

Question 5 PPGPLs staff possess the skills and knowledge to perform their duties

Table 5
Rating Sometimes 5 6 0 1

Respons

Never 1 2 0 0

Seldom 3 4 0 0

Often 7 0 8 7

Frequently 9 10 8 0

e % Respons e

0%

0%

0%

0%

0%

6%

0%

44%

50%

0%

Graph 5

Respondents show that 50% frequently, 38% often and 13% sometimes agrees to PPGPL possessing the skills and knowledge to perform their duties.

Question 6 PPGPL understands customers and is flexible in meeting their needs Table 6
Rating Sometimes

Never

Seldom

Often

Frequently

1 Respons e % Respons e 0 0%

2 0 0%

3 0 0%

4 0 0%

5 0 0%

6 1 6%

7 2 13%

8 13 81%

9 0 0%

10 0 0%

Graph 6

94% of respondents believe PPGPL often understands and flexible in meeting their needs whilst 6% rated sometimes.

Question 7 Where applicable PPGPLs management and staff are easily accessible.

Table 7
Rating Sometime s 5 6 0 0% 1 6%

Never 1 2 Respons e % Respons e Graph 7 0 0% 0 0%

Seldom 3 4 0 0% 0 0%

Often 7 6 38% 8 6 38%

Frequently 9 10 3 19% 0 0%

19% respondents agree to PPGPLs staff and management being accessible frequently while 75% rated often and 6% sometimes.

Question 8 PPGPL maintains timely and effective communication channels.

Table 8
Rating Sometimes 5 6 0 0% 3 19%

Never 1 2 Respons e % Respons e 0 0% 0 0%

Seldom 3 4 0 0% 0 0%

Often 7 5 31% 8 8 50%

Frequently 9 10 0 0% 0 0%

Graph 8

Respondents rated PPGPLs communication effectiveness as 81% often and 19% sometimes.

SECTION 2

Questions were asked on a scale of 1 to 5: 1 Strongly Disagree 2 Disagree 3 Neutral 4 Agree 5 Strongly Agree Question 1 Do you think PPGPLs long term contracts should have specific account representatives and why? Table 9
Stron gly Disag ree Stron gly Agree 5

Disag ree 2

Neut ral 3

Agr ee 4

QUESTIONS
Do you think PPGPL's long term contracts should have specific account representatives and why?

16

Graph 9

100% of the population of respondents strongly agreed on the basis that the customer believes some attention needs to be focused on the communication channels and it would be much easier on the customer to have focus placed on dealing with a specific representative rather than just the Marketing Officer. (See Appendix 6)

Question 2 Do you think having an online database to access vessel loading updates etc will enhance operations and communications? Table 10
Stron gly Disag ree Stron gly Agree 5

Disag ree 2

Neut ral 3

Agr ee 4

QUESTIONS
Do you think having an online database to access vessel loading updates etc will enhance operations & communications?

16

Graph 10

100% of the population of respondents strongly agreed. One regional customer clearly indicated it would help to alleviate the issues of time differences across the globe. (See Appendix 7)

Question 3 Do you think PPGPL keeps all parties updated (timely) of situations affecting product availability (disruption or supply)?

Table 11
Stron gly Disag ree Stron gly Agree 5

Disag ree 2

Neut ral 3

Agr ee 4

QUESTIONS
Do you think PPGPL keeps all parties updated (timely) of situations affecting product availability (disruption in supply)?

10

Graph 11

37.5% of respondents strongly agreed and 62.5% agreed.

Question 4 Do you think PPGPL maintains good relationships with their customers and how? Table 12
Stron gly Disag ree Stron gly Agree 5

Disag ree 2

Neut ral 3

Agr ee 4

QUESTIONS
Do you think PPGPL maintains good relationships with their customers and how?

12

Graph 12

25% of respondents strongly agreed and 75% agreed.

Most of the ratings found were relatively high on the graph determinant level for negative and positive ratings would be set at a 75% marker.

Based on the determinants of the Questionnaire, the following are our findings on a pass marker of < 75%being positive and under >75% being negative: Table 13 Determinants Tangible Reliability Responsiveness Assurance Empathy 6% 12.5% 3% 12.5% Less than 75% More than 75% 100% 94% 87.5% 97% 87.5%

Representing Determinants Tangible physical evidence Reliability dependability, delivering on promises, accuracy, consistency Assurance competence, courtesy, credibility, security Responsiveness promptness, helpfulness Empathy easy access, good communication, customer understanding, personalized attention

4.0 ANALYSIS OF DATA

4.1 Qualitative Analysis of Questionnaires Customer Interaction and Support Based on interviews, the customers interactions are limited to the marketing department only; this department is currently responsible for customer queries and complaints. The marketing department focuses on customer relationship building via interactive co-mingling at international sporting events and other avenues where customers can freely interact and enjoy the hospitality of the host (PPGPL). A mechanism for understanding the customer or recording unique requirements for each individual customer so as to better understand the customer over a period time, such as a central database does not exist. Customer satisfaction are measured via customer surveys, this however coupled with the non existence of a central database makes understanding the customer a reactive rather than proactive process as customers has to provide feedback for the company to understand their customer relationships and react accordingly. CRM can solve difficulties in customer interaction by providing a framework where a customer can make queries or complaints and they are provided timely feedback by the respective departments. Interaction of customers with the CRM system can improve relationships as the customer needs are addressed. This is supported by Wilson, et al., (2002) who indicated that CRM can be used to create personalized, one on one experience that will give the individual customer a sense of being cared for. The CRM framework also allows for data gathering of individual customers where the information gathered over time can be utilized to effectively provide a customized service to customers. This is supported by Fayerman, (2002) who indicated that CRM can be used as a customer focused business strategy to increase customer satisfaction by providing a customized service to each customer. The data gathered can also be used to proactively manage customer relations rather than a reactive approach. Customer Retention PPGPL currently has no formal customer retention policy hence, no supportive system for such. Customer retention strategies are informal and are initiated by marketing in a proactive context to promote existing contract extensions or renewal. Customer retention is critical with the era of hyper-competition; organizations are forced to be more concerned with customer retention and

loyalty (Dick & Basu, (1994). There is a cost associated with attracting new customers and actually cost less to retain customers than to compete for new ones, Rosenberg & Czepiel, (1984). CRM can retain customer based on facts discussed above under Customer Interaction and Support, this is supported by Vavra, (1992) who indicated that CRM is a powerful customer retention tool based on customer bonding or staying in touch with the customer after a sale is made. Challenges with Customers There are several challenges when dealing with customers such as price determination, timings of cargo nomination, unscheduled demands, cultural differences, time differences and inflexibility with contractual arrangements. Many of these items are not easily resolved however; through CRM information can be easily accessible to the customer, Brady (1995). This information can allow the customer to make strategic decisions which can result in reduced conflicts and challenges with customers. Cultural differences can be managed using CRM as CRM allows the accumulation of customer data over time which can be used to effectively manage customers of diverse cultures. This is supported by Adebanjo, (2003) indicated that CRM allowed mountains of customer data to be analysed to refine customer-facing practices to increase loyalty. Significant time differences can also be addressed by CRM with the integration of departments; any department (especially the 24hour operations department) can respond to customer needs or even provide some sort of feedback to indicate that it will be addressed within a few hours. Kim et al., (2002) suggested that integration of business processes and departments and providing appropriate responses to customer request is vital part of the CRM system. Departmental Integration The critical departments that the customer integrated with namely marketing, operations and finance are not interconnected from a customer management perspective. This places significant responsibility on the marketing department as they are the single point contact for all customers. Turn round times for business transactions are also increased as all customer requirements are channelled to the respective departments via marketing.

A CRM system has an integrated approach encompassing critical departments for customer satisfaction. This would allow better responses to customer requirement and it can also improve turnaround times for business transactions. Kim et al., (2003) indicated CRM can improve information channels between departments thereby maximizing the effectiveness and efficiency of organizational operations. Integration of Core Values within Departments One of PPGPLs core values is customer satisfaction, the communication of this value and its importance is not effectively made within the organization. There is no formal framework such as training structures to facilitate this type of edification to employees. There is also no integrated system (Information Technology) that supports the core values of the company. As mentioned previously in departmental integration, Kim et al., (2003) suggested that CRM can improve information channels between departments. PPGPL can use this aspect to their advantage and integrate a training system within the CRM system in the design stages. This will allow training of employees to be monitored and updated using the CRM facilities. The CRM can be used not only to track customers but also employees as well. Policy and Procedures No policy exist which is in alignment to support the core values of the company to guide employees on how they should interact with customers, the standard of service to provide or even a strategy document to guide priorities on customers based on profits generated from them. Qualitative data from the questionnaires specifically questions 5 and 10 were rated lower than average. Several customers indicated that there are inconsistencies with respect to PPGPLs employees having the necessary skills and knowledge required to perform their duties effectively. Question 10 indicated that communications in response to customer concerns/quires were not consistently timely. CRM can provide the information to develop a strategy to maintain high profit customers. According to Wilson et al (2002) the influential study by Reichheld and Sasser (1990) indicated a large impact on profitability for small increases in customer retention rates. Chye and Gerry, (2002) indicated that the CRM system will enable the organization to calculate the profitability of

individual accounts. This information can then be used to identify and effectively manage the customers who generate significant profits to the organization. Policies and procedures should be implemented by PPGPL to support the capabilities of the CRM system to maximize profitability. PPGPL as a company should implement competency based training programs to allow competencies to be measured against a standard thereby improving overall performance. Curtain & Hayton, (1995) indicated that competency based training is accepted by many industries. Long Term Growth Strategy PPGPLs core value is to maximize long term growth. Supporting systems to achieve this core value is inadequate as indicated by responses from the interviews. The CRM system can support the long term growth strategy as it can be used to attain customer retention for the long term. This view is supported by Peppers & Rogers, (1993) whose study indicated that the information technology capability of CRM can focus on individual or one-to-one relationships with customers that integrate database knowledge with a long term customer retention and growth strategy.

4.2 Quantitative Analysis of Questionnaire Section 1 The questionnaire was built on the ServQual Model supported by the areas identified during client interview; questions were placed into the relevant determinants identifying the areas of satisfaction. Section one being used to represent the level of Satisfaction based on an 80% response rate of a 20 member population.

Table 14

Determinants Tangible Assurance Reliability Empathy Responsiveness

Mean Satisfactio n > 75% 0.00 0.08 0.17 0.34 0.34

Mean Satisfactio n < 75% 4.00 3.90 3.83 3.66 3.66

On the basis of the above findings, the mean for the satisfaction factor begins at 4.00; therefore the table identifies the area of Tangible and Assurance as the highest ranked satisfactory factors. Emphasis would need to be placed on Reliability, Empathy and Responsiveness with the two latter showing the greater differing factor.

Section 2 Section two of the questionnaire was used to focus on areas of importance to the customer for improvement in relationships and communication. Graph 13

From the above graph, it can be determined that all participants strongly agree that PPGPL should have specific account representatives for long term contracts. It was also strongly agreed by all that an online database should be created to enhance operations and communications.

(4500 words)

5.0 RESEARCH CONCLUSIONS

PPGPL holds a strong position in the energy sector being the only Gas Processing Company of Trinidad and Tobago. Known for its quick turnaround of vessels, PPGPL has been able to attract customers both regionally and internationally. With the opportunity to form joint ventures, mergers and acquisitions, PPGPL can further penetrate the international market with its direct presence. However, the recent discovery of shale gas has raised awareness within the industry as the product offering can give customers a choice based on cost and availability. An analysis of the qualitative and quantitative data suggests that the customer relationship management within the organization is relatively effective as the findings indicated relatively good ratings. However, the data suggest that the members within the organizations are not in alignment with the companys core value of customer satisfaction. PPGPL as a company does not have the necessary framework and infrastructure in place to effectively support customer relationship management. Customer relationship management in PPGPL is not a companywide system; it is currently the sole responsibility of the marketing department. The effectiveness of PPGPLs customer management systems is perceived by customers as generally good based on the customer surveys. There was however, a small number of customers who were dissatisfied with their relations with PPGPL. The effectiveness can be considered to be relatively good with several areas for improvement. Based on the ServQual model, areas for improvement are responsiveness and empathy (personalized attention and effective communication). An overall analysis of the individual objectives indicated that there was a need to significantly improve the infrastructure and framework to effectively manage customer relationship. Integration across critical departments is required and training in the effective use and management of customer relationship systems. The following recommendations were formed based on the concerned areas identified.

6.0 RECOMMENDATIONS

The understated recommendations are based on the above analysis and findings. The recommendations will be presented outlining a systematic approach to increase overall organisational performance through the use of a structured Customer Relationship Management Plan. The plan shall be designed for a one year period; however, the full effects of the results cannot be measured within the short term. The plan would follow continuity over a three year period to maximize benefits. The traditional concept of the marketing mix establishes a system where a buyer purchases from a seller via straight forward transaction. In todays global environment of fierce competitiveness, relationship building with customers is critical for companies to survive. A paradigm shift is required to integrate relationship management with the traditional marketing mix. Kotler, (1991) concludes that companies must move from a short term transactional oriented goal to a long term relationship building goal. A hybrid marketing strategy can be developed where the marketing mix can be used to initially attract customers and relationship management utilized to establish customer loyalty for the long term. In PPGPLs case the CRM system is intended to build long term customer loyalty.

OBJECTIVES: 1. Maintain 80% existing high valued customers within the first year with an increase to 90% over the next three (3) years. 2. 75% of all contracts to be long term within the first year with existing and new customers increasing to 90% over the next three (3) years. 3. Improve information link between PPGPL and its customers to increase communications in one (1) year with continual improvements over the next three (3) years. 4. Interlink all departments via CRM within six (6) months to respond to 95% of customer queries and complaints.

ASSUMPTIONS: 1. Competitors advancing operational efficiency to improve quality and customization of products, increased reliability and offering flexible payment plans to the customer.

2. Rapid development of LNG plants globally, increases the requirement for natural gas processing facilities. These facilities can become competitors in the future based on the quality of products, location and price offered to PPGPLs existing and potential customers.

TARGET MARKET: PPGPL targets both existing and potential long and short term contract customers. POSITIONING: PPGPL seeks to position itself to be a customer focused organization, supplying superior customized products, with the intent of becoming a preferred supplier. MARKETING STRATEGY: Ansoff Matrix: PRODUCTS CURRENT CURRENTLY OPERATING PENETRATION: PPGPLS DESIRED MARKET STRATEGY MARKET DEVELOPMENT PRODUCT REPLACEMENT NEW

MARKETS

NEW ENTRY

DIVERSIFICATIO N

Source: Adapted from Ansoff (1957) Strategies for Diversification, Harvard Business Review.

Strategy: Market Penetration The market penetration strategy will be used to maintain high profit customers to achieve the marketing objectives.

MARKETING MIX Product/Service Offer a product that can be standardized or customized to customers needs. Promote a first class service based on the strength of the Customer Relationship Management Plan that is superior to the competitors and tailored to individual customers. Justification: The integrated approach between product and superior service is required in building long term relationships. Long term contractual relationships allows greater visibility of projected revenue, this data is critical in the formulation of both strategic and tactical business decisions for future growth. Pricing Pricing strategies are twofold in nature. Adhoc customers are subjected to current global gas commodity prices and long term customer prices are based on contractual agreement. Justification: Prices in the natural gas industry are based on supply and demand factors in the global environment. It is critical that PPGPL anticipates global future demand and the respective prices as well as the local gas supply when developing long term contractual agreements.

Place The place of distribution shall be the existing loading docks at Point Lisas. The CRM system shall be integrated such that the customer at the point of loading can make formal enquires or complaints and the various departments can respond and act in a timely manner.

Justification: The place is critical as this is an interaction point between the customer and dock loading representative.

Promotion Market penetration in existing markets shall be promoted using several methods. PPGPL can inform the existing customer base via email of their ability to customize product offerings to meet customer specific requirements as well as launch the CRM initiative, its capabilities and positive real time benefits to the customer. PPGPL can also advertise in the popular Oil and Gas Journal, promoting its products and the ability to flexibly meet customer needs. It can also advertise its CRM system to illustrate how it can improve the efficiency of the customers operations by having real time information services. PPGPL can ensure participation in local trade shows highlighting customer focus initiatives tailored for the customers needs. Justification: The promotional aspects are vital to communication with existing and potential customers.

People A Customer Relationship Management Team should be developed comprising of Information Technology, Marketing and a third party consultancy firm who shall design and implement the CRM system. The team shall ensure that all employees undergo training in the CRM system to guarantee consistency in the quality of service and promote the core value of customer satisfaction. The training should also include responding to the customer requirements and queries in the shortest possible time not exceeding 24 hours. Justification: Without people the CRM system cannot be implemented, it is imperative that they are properly educated in this area as their actions can make the CRM initiative a success or failure.

Physical Evidence

There will be no change in physical evidence.

Process The integration of departments will be governed by Standard Operating Procedures which will inform all personnel of their roles and responsibilities. Processes will be simplified with real time access to client/customer information via the online Customer Relationship Management System.

Justification: Processes are critical as this set the guiding principles of how the system shall be managed. Data security protocols will be implemented to ensure client/customer confidentiality.

MARKETING BUDGET (All values quoted in US Dollars) MARKETING EXPENCE BUDGET FINANCIAL YEAR 2012 PUBLIC RELATIONS Participation in International Industry Conference ( 3 industrial conferences carded for 2012) $30,000 COMPONENT ALLOCATION BUDGET

$30,000

ADVERTISEMENT Local Industry Conference Oil and Gas Journal (monthly article) E-Mail $10,000 $30,000 $0.00

$40,000

NETWORKING TOTAL Client Visits Client Contract negotiations $20,000 $20,000 $30,000

$40,000

CONTINGENCY BUDGET TOTAL MARKETING EXPENSE

$30,000 $140,000

SALES FORECAST (All values quoted in US Dollars)

YEAR
Q1 QUARTER
TOTAL SALES (EBIT) COST OF PRODUCTION OVERHEADS INSURANCE EQUITY INVESTMENTS TOTAL QUARTERLY EXPENCES QUARTERLY NET PROFIT
$260,833,920 $75,215,638 $10,256,422 $23,658,952 $102,702,908 $211,833,920

2012
Q2
$213,409,570 $75,215,638 $10,256,422 $23,658,952 $52,278,558 $161,409,570

2013
Q3 Q4
$308,258,269 $75,215,638 $10,256,422 $23,658,952 $134,127,257 $243,258,269

2014
Q3 Q4
$310,523,304 $80,568,975 $12,563,487 $25,365,487 $112,400,355 $230,898,304

Q1
$262,750,488 $80,568,975 $12,563,487 $25,365,487 $89,252,539 $207,750,488

Q2
$214,977,672 $80,568,975 $12,563,487 $25,365,487 $34,479,723 $152,977,672

Q1
$273,456,789 $84,365,987 $13,015,896 $28,326,589 $89,748,317 $215,456,789

Q2
$225,654,951 $84,365,987 $13,015,896 $28,326,589 $34,946,479 $160,654,951

Q3
$175,632,587 $50,000,000 $13,015,896 $28,326,589 $14,290,102 $105,632,587

Q4
$325,369,258 $84,365,987 $13,015,896 $28,326,589 $124,660,786 $250,369,258

$165,985,221 $60,321,456 $10,256,422 $23,658,952 $8,748,391 $102,985,221

$167,204,856 $75,000,000 $12,563,487 $25,365,487 $4,275,882 $117,204,856

$49,000,000

$52,000,000

$63,000,000

$65,000,000

$55,000,000

$62,000,000

$50,000,000

$79,625,000

$58,000,000

$65,000,000

$70,000,000

$75,000,000

ANNUAL NET PROFIT

$229,000,000

$246,625,000

$268,000,000

The above sales forecast, based on the module guide should capture projected data for one year. In the case of PPGPL where the contemporary marketing mix has to be integrated with a CRM system that is intended to foster long term relationships. It is impractical to project revenues for a one year period. Based on the time spread of existing contractual agreements and the potential new contract awards that can be attained with the implementation of the CRM system a period of minimum three years is required for the benefits to materialize.

The graph below illustrates the Sales Forecast tabulated data

The above graphical projected representation of, total revenues, expenses and net profit indicate a long term growth in revenue with the implementation of the CRM system.

TIME SCHEDULE

MARKETING PROMOTION SCHEDULE

PUBLIC RELATIONS International Industry Conference ( 3 industrial conferences carded for 2012) ADVERTISEMENT Local Industry Conference Oil and Gas Journal (monthly article) E-Mail
JA JA JA JA JF Jan Feb Mar Apr May

2012
Jun Jul Aug Sep Oct Nov Dec

IC

IC

IC

LC

JA

JA

JF

JA

JA

JF

JA

IE

U E

U E

U E

UE

U E

U E

UE

UE

U E

UE

UE

NETWORKING Client Visits Client Contract negotiations C V C N C V CN C V CN

LEDGEND
IC LC JA JF IE

U E C V

Industry conference where PPGPL can form relations with potential and existing customers. Local Conference where PPGPL promotes it CRM system to the local energy and manufacturing industries. Published article in the popular industry oil and gas journal promoting PPGPL CRM system and its benefits to the customers Published article highlighting the success and interaction of the customers with the PPGPL CRM system. Initial E-mail to inform existing customers of the introduction of the CRM system and how this system will positively impact the customer. Update E-mails to inform customers of how they can interact, communication of individual pass codes, and re-enforced the stringent security the CRM system offers to maintain customer confidentiality and information. Client Visits shall be managed by the marketing representative to ensure clients have a pleasant stay and memorable experience which will enhance the relationships

C N

Contract negotiations are sensitive and the marketing representative must be aware of cultural diversities and how to best manage to foster relationship building at the time of negotiations.

13.0 MONITORING AND CONTROL Continuous monitoring of the marketing plan is essential, comparing actual versus budgeted/projected values, completion of preparatory work for upcoming events and ensuring activities are completed as scheduled are critical for the success of CRM. This data shall be used to formulate informed decisions to guide the marketing plan in the direction it was originally intended. Several methods shall be used to monitor are: Monthly meetings to discuss present status of the CRM system. Monitor advertising schedule to ensure activities are conducted as per assigned schedule. Monitoring the progress of training of relevant staff in the CRM system. Monitor the interaction of customers with the CRM system; educate customers as necessary via e-mail. Monitoring of the data exchange between customer and PPGPLs employees, analyze situation and communicate recommendations to improve as necessary. Monitor customer satisfaction via quarterly surveys which includes the aspect of evaluating the CRM system from a customers perspective. Monitor the data attained while interacting with customers and use the data to better manage future engagements with the customer. Ensure information is tailored to the individual customer. Monitor renewal of long term contracts for existing customers as well as new customers. This is the intended purpose of the CRM system and must be monitored closely. Monitor profits on a quarterly basis Comparison of actual versus expected revenue and marketing cost.

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