B2B Project

History 1

2

3

4

5

6

Business Strategy

Market and Segments

Channel Selection

CRM Strategy

Deep Dive

Q & A

Effort Scope

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

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

Local Operations

Entered 1997

Not Blended in Pakistan

Every Product from Singapore

Karachi, Corporate Head office

MAL Pakistan Pvt. Ltd.

Local Market & Segmentation

Local Market is flooded with low priced Products

Dominated by Small Scale Industries

Trend to use reused/reclaimed oil

Segment # 1

Power Generation Independent Power Plants

Captive Power Plants

Many private and government funded

organizations

K Electric

Hubco

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

Segment # 3

Textile Sector 40%+ contribution to exports

Nashat

Gull Ahmad

Kohinoor

Chenab

Price Conscious

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

Channel Selection

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

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

Oil & GAS Segment

Categorized in Category A Customers

Expectations Management Cosponsor ship of events Customized Trainings

Onsite Offsite

Collaborative Value Added Services

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

Cement Segment

Categorized in Category A & B Customers

Collaborative Intense Value Add

Regular Business Meals Regular Social Events Regular Seminars Regular Trainings

Cement Segment

2011 Oil &

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

Product Demand in Cement Industry

Demand Drive in Cement Industry

Cement Industry Product

Mix

Mining Lubes

Quary Lubes

Plant Lubes

Captive Lubes

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

Value Selling – Total Cost of Ownership (TCO)

Questions