FPT UNIVERSITY- CAMPUS CAN THO



Individual Assignment [MKT101]

TOPIC: MAKETING OF PETROLIMEX

Student name: NGUYEN NGOC NHU

Code: CS171811

Class: IB1708

Phone: 0763.246.229

Email: NhuNNCS171811@fpt.edu.vn

Cần Thơ, 10/03/2022

 TABLE OF CONTENTS

A. PLEASE DESCRIBE THE SITUATION OF MARKETING SUCCESS OR

FAILURE IN A REAL COMPANY YOU KNOW (IN REAL LIFE OR SEARCH
ON THE INTERNET OR OTHER SOURCE)?............................................................1
I. INTRODUCTION.......................................................................................................1
II. SWOT ANALYSIS OF PETROLIMEX........................................................................2
1. Strengths:............................................................................................................2
2. Weaknesses:........................................................................................................2
3. Opportunities:.....................................................................................................2
4. Threats:............................................................................................................... 2
III. THE MARKETING MIX OF PETROLIMEX.................................................................2
1. Product strategy:.................................................................................................2
2. Price Strategy:....................................................................................................3
3. Distribution Strategy:.........................................................................................4
4. Promotion Strategy:............................................................................................4
B. ACCORDING TO YOU, WHAT DOES THIS MARKETING SITUATION
RELATE TO IN WHICH CONTENTS IN PRINCIPLES OF MARKETING
COURSE?......................................................................................................................... 5
C. WHAT DO THE MARKETING LESSONS YOU LEARN FOR BUSINESS
MARKETING?................................................................................................................ 5
D. REFERENCES:........................................................................................................6

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 A. Please describe the situation of marketing success or failure in a real
company you know (In real life or search on the internet or other source)?

I. Introduction
Name of the organization
- Add: 1 Kham Thien, Kham Thien Ward,
Dong Da District, Hanoi, Vietnam
- Phone: (024) 3851-2603
- Fax: (024) 3851-9203
- Email: banbientapweb@petrolimex.com.vn

Vietnam National Petroleum Group (Petrolimex) was formed from the equitization and
restructuring of the Vietnam National Petroleum Corporation, specializing in import and
export business and trading in petroleum, refining and petrochemicals, capital investment
in other businesses to do business.

As one of the first companies to organize a lubricant business in the market, with the
strong backing of Petrolimex, it gained the largest market share in the early years of
its establishment. However, with the rapid penetration and growth of competitors who
are multinational companies with strong brands and potentials along with competition
from domestic lubricant companies Vilube, Orient Oil, etc. Mekong.... Petrolimex has
gradually lost its leading position. Although sales and output have increased steadily
over the years, it has not been commensurate with the growth rate of the market and
the potential of the Company.

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 II. SWOT analysis of Petrolimex
The SWOT matrix model method is applied to select the marketing strategy of lubricants
at Petrolimex Petrochemical Joint Stock Company because it has an overview in
determining the location and is easy to apply to a single business unit business:

1. Strengths:
- Petrolimex's prestige.
- Wide range of products.
- Low investment cost.
- System of warehouses, yards and distribution throughout the country.
- Laboratory system of national and international standards.

2. Weaknesses:
- Lack of strategic products.
- The quality of high-end products is not stable.
- High selling price, low competition.
- Marketing activities are not dynamic, and not suitable for the rapidly changing
business environment.

3. Opportunities:
- High economic growth, and large lubricant demand.
- Economic integration promotes import and export activities.
- Industry priority policies.

4. Threats:
- New competitors are likely to emerge.
- The global crisis reduces the demand for lubricants.
- Production costs are increasing.

III. The marketing mix of Petrolimex

1. Product strategy:
The product strategy is to help Petrolimex reposition its product lines, maintain dominant
product lines, and develop new product lines while eliminating obsolete product lines.

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With the attention of the customer segment, Petrolimex focuses on products that best
satisfy customers' needs while creating a variety of product lines to increase choices for
customers when using. The product has the following characteristics:
- Extend the life of the engine, and save fuel, especially in the case of long-distance
travel, continuous operation time, heavy load, and harsh climate, ...
- Save on repair and warranty costs.
Currently, Petrolimex has many main product lines. In addition to maintaining stable
products, it is necessary to eliminate obsolete product lines and develop new product
lines:
- Medium product line: Products that meet API standards, save production costs,
and cost 10% to 15% lower than current prices, in order to be able to compete with
other brands Domestically, these products focus on customers in suburban, remote
areas, and low-income customers.
- Highly specialized product line: JASO standard products with high quality and
specificity for each type of engine, such as lubricants for high-end vehicles, and
with specialized features on fragrant, colorful, and environmentally friendly.
Petrolimex's products have technical standards from API SD to API SJ, with this standard
having met the good technical requirements of the engine. Product innovation,
technology, and improvement only need to focus on improving anti-wear and anti-
oxidation properties, improving the product's small quantity value to respond to changes
in weather and high temperatures. and under high engine operating conditions.
The packaging design of Petrolimex products cannot be compared with foreign brands.
Currently, the packaging of Petrolimex products is designed not to be eye-catching,
easily deformed by weather changes or strong collisions, causing many difficulties in
transportation, loading, and unloading, and losing the trust of customers. on product
quality. Therefore, it needs to be redesigned and replaced with better materials.

2. Price Strategy:
While foreign brands build high prices based on strong brands and product specialization
strategies with high-end product lines, Petrolimex pursues a cost-optimized strategy to
obtain competitive prices. compete with mid- and low-end product lines. However, the
price strategy of Petrolimex has some limitations as follows:
- Pricing method: Petrolimex's pricing method is based on the parent company's
delivery price plus the minimum cost and profit. Therefore, branches cannot be
proactive about prices, the selling price is dependent on the delivery price of the
parent company, which is not attached to and is not sensitive to the market price.

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 Therefore, in times of market fluctuations, the delivery price could not be
adjusted, leading to the selling price of Petrolimex not keeping up with the market
price.
- Price: The selling price must be very competitive with the market price. According
to the survey results, the price of Petrolimex is only slightly lower than that of
foreign brands. Besides, with that selling price, Petrolimex cannot compete with
other domestic brands of the same type, when their selling price is much lower.
Petrolimex needs to develop a unified published price to limit the price difference
between regions and intermediate distributors. On the contrary, the wholesale price must
be flexible and separately applied to each intermediary distributor with different discount
rates depending on each region, each locality, production level, etc. interest, encouraging
customers to buy in bulk or have preferential discounts for priority areas.

3. Distribution Strategy:
Direct distribution channel: The company's customers in the direct distribution channel
include two types:
- The first type is the service points that sell and change oil directly or are
authorized by Petrolimex. That is, the company directly develops retail points.
These retail points mainly aim to solve redundant labor in warehouses and
factories...
- The second form is the individual supply contracts for industrial customers who
need to use lubricants such as transport enterprises or in the maintenance systems
of cars and motorbike companies. This number of customers is not large and
unstable for Petrolimex.
Sales channel through commercial intermediaries: Currently, the distribution system of
cans through intermediaries includes 2 types:
- Single level channel: Petrolimex - reseller - consumer: As for the intermediate
level 1 channel system through resellers, similar to the direct retail channel, these
retailers are directly managed by PLC's sales representatives.
- 2-level channel: Petrolimex - Distribution agent - reseller - consumer: For the 2-
level intermediary channel system: including distribution agents and retailers.

4. Promotion Strategy:
Advertising: Currently, the advertising activities of Petrolimex are very poor compared to
other foreign competitors. Every year, the company spends its budget on advertising
activities, but these activities are very spread and not focused, so the effectiveness is very

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low. Advertising is often spread evenly for all business lines such as lubricants, asphalt,
and chemicals, and is often combined with advertising activities of the parent company,
so it does not make an impression and attract the attention of customers. In recent years,
realizing the importance of advertising activities for the lubricant business in particular
and the long-term branding goal in general, Petrolimex has dedicated a part of its budget
to the operation. advertisement.
Community relations: Using internal and external information channels: icons, banners,
publications, seminars, event sponsorship... to build and promote promotion of products
and services, and brands. Community activities such as: organizing customer
conferences, sponsoring events, holding press conferences, and seminars,...
Direct sales: This is a direct communication channel between sales representatives and
customers of the company. Sales representatives must promptly grasp the requirements,
reactions, difficulties, and advantages of customers about the company's products and
services.
Sales promotion: Combining many forms of promotion in the implementation of "push
push" and "pull-pull" strategies, including cash bonuses, in-kind rewards, winning scratch
cards, coupons, Sales discounts, sales subsidies, sales training program sponsorships, etc.
In the red highlight the forms of cash bonus promotions, scratch-off tickets, and coupons.

B. According to you, what does this marketing situation relate to in which

contents in principles of marketing course?
In the principles of marketing course, this marketing case involves content:
- The marketing mix
- SWOT analysis

C. What do the marketing lessons you learn for business marketing?

Petrolimex is a leading petroleum trading company in Vietnam, and it has applied various
marketing activities to its business to promote its products and services to customers.
Some of the marketing activities that Petrolimex has used include:

Advertising: Petrolimex has invested heavily in advertising through various mediums,

including television, newspapers, billboards, and online advertising. The company uses
advertising to create brand awareness and promote its products and services to potential
customers.

Sales promotions: Petrolimex has implemented various sales promotions, such as

discounts, loyalty programs, and contests, to encourage customers to purchase its

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products. These promotions are aimed at retaining existing customers and attracting new
ones.

Delivery services: Petrolimex has a well-established network of delivery services that

ensure its products reach customers in a timely and efficient manner. The company has a
fleet of tankers and trucks that deliver petroleum products to its customers across
Vietnam.

Branding: Petrolimex has created a strong brand identity through consistent branding
efforts, such as creating a distinctive logo, slogan, and color scheme. The company's
branding efforts are aimed at creating a strong association between the brand and the
quality of its products and services.

Sponsorship and community involvement: Petrolimex has sponsored various events, such
as sports tournaments and cultural festivals, to increase brand exposure and build
goodwill in the community. Additionally, the company has been involved in various
community projects, such as building schools and hospitals, to demonstrate its
commitment to social responsibility.

Overall, Petrolimex has implemented a comprehensive marketing strategy that includes a

mix of advertising, sales promotions, delivery services, branding, and community
involvement. These marketing activities have helped the company build a strong brand
identity, attract and retain customers, and achieve sustained growth in the highly
competitive petroleum trading market in Vietnam.

D. References:
- Introduction
- SWOT
- The marketing mix
- What do the marketing lessons you learn for business marketing?

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