2. B2B
Project
History1
2
3
4
5
6
Business Strategy
Market and Segments
Channel Selection
CRM Strategy
Deep Dive
Q & A
Effort Scope

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

9. Segment # 3
Textile Sector
 40%+ contribution to exports
 Nashat
 Gull Ahmad
 Kohinoor
 Chenab
 Price Conscious

10. Segment # 4
Cement Sector
 Growing Sector
 Extensive Demand of Lubricants
 1 Cement Unit
 Power Plant
 Cement Mills
 Quarry Unit
 High Volumes
 Premium and Flagship Products
 High Margins

11. Channel Selection

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

18. Product Demand in Cement Industry

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

21. Value Selling – Total Cost of Ownership (TCO)

22. Questions