Green Gas Limited Company Marketing Plan

Marketing Plan for Green gas limited

company

Submitted By:

Muhammad Saddam Sajid 08110059

Adeel Muhammad Uppal 08110014
Mudassar Umer 05108044

Bsc Accounting & Finance and MBA

GIFT University Gujranwala

Date: 25-05-2010

1
Green Gas Limited Company Marketing Plan

Acknowledgement

First of all, we thank to Allah Almighty to provide us

courage to complete this first part of project. We also
thank to our honorable Professor Sir Shoaib-Ul-Haq
to provide us opportunity to make the topic on such
interesting project.

Table of contents
2
Green Gas Limited Company Marketing Plan

Title no Particulars Page no

1 Introduction 1-4
2 Objectives 5
3 The state of Bio gas…. 6
4 Demand & Supply 7
5 Market Segmentation 8-9
6 Target market 10
7 Competition 11-13
8 Marketing Mix 14-19
9 Individual Marketing
Promotions

Introduction
Green Gas limited Company is a company which is providing the bio gas as a substitute
of Sui gas, LP gas to the people of Gujranwala and near by villages. The company is
situated on the Noshehra Saansi Road, Near Malhi Chowk GT Road Gujranwala.The

3
Green Gas Limited Company Marketing Plan

Company has its distribution centers in the main and important areas of the city to
provide the gas.

Vision
4
Green Gas Limited Company Marketing Plan

“To make Green Gas Limited an unparalleled natural gas distribution company,
providing eco-friendly, less priced and clean fuel to domestic, with a total commitment to
provide quality service to its customers”

Mission

“To provide safe, convenient and reliable gas supply to our customers for domestic usage
and to provide a cleaner and environment friendly fuel to clients”

The logo and slogan of Green Gas

Company

5
Green Gas Limited Company Marketing Plan

Logo:
This is the logo which represents naturalism.

Slogan:
“Environment Friendly, its green gasp limited”

The objectives of Green Gas Company

The Green Gas company has set the following goals to succeed and satisfy their
customers:
• Providing safe, convenient & reliable natural gas supply to it's customers for the
domestic use in Gujranwal and nearby villages.

6
Green Gas Limited Company Marketing Plan

• Providing a cleaner, environment-friendly alternative as fuel to the residents of

Gujranwala for the domestic purposes.
• This will considerably bring down the alarmingly high levels of pollution.
• Providing the cheap and reliable substitute of Sui Gas and Liquefied Petroleum
Gas.
• To cope with the energy crises prevailing in the country.

The state of bio gas in Pakistan

Despite a huge technical potential of about five million, the total number of biogas plants
installed in the country remained very small, about 6,000 units by the end of 2006. In
early 2007, UNDP (United Nation Development Program) Pakistan, Winrock
International (WI) and SNV (Synovas Financial Corporation) carried out a feasibility
study for establishing a large-scale household biogas programs. Furthering on the
findings of this study, an implementation document has been finalized by WI and SNV in

7
Green Gas Limited Company Marketing Plan

2008. This document details technological, organizational and institutional aspects for a
national biogas programs, including an activity schedule and budget requirements. In
January 2009, the implementation of the Domestic Biogas Programs in Pakistan was
launched. The program activities will initially take place in four provinces of Pakistan
(Punjab, Sindh, Khyber Phaktoonkhawa and Baluchistan), supporting the construction of
30,000 installations over a period of four years.

The Demand and Supply Relationship

The main actors at the supply side are private biogas construction enterprises providing
biogas construction and after sales service as well as MFIs providing credit to
households. At the demand side, Rural Support Programs organized under the Rural
Support Program Network (RSPN) will be engaged as the main implementing partners,
supplemented by NGOs, farmers’ organizations and dairy organizations. They execute
important programs tasks that contribute to the sustainability of biogas activities,
including awareness rising. In August 2009, RSPN signed an agreement with the

8
Green Gas Limited Company Marketing Plan

Ministry of Environment of the Government of Pakistan for the facilitation of the

implementation of the Domestic Biogas Programs.

The goal of the Pakistan Domestic Biogas Programs is to improve the livelihoods and
quality of life of rural farmers in Pakistan through exploiting the market and non-market
benefits of domestic biogas. The purpose of the programs is to develop a commercially
viable domestic biogas sector. The programs has forecast a production of 275,000
domestic biogas installations over a period of 10 years, out of which the proposed first
phase of 4 years aims to install 30,000 digesters.

Market Segmentation
We have three main segments in the market to serve:

• Companies:
Biogas plants are currently booming in South Asian states like Pakistan, India, Nepal,
Srilanka, Europe, USA, and China and becoming more popular all the time. The share of
biogas is comparatively low in Pakistan, despite the great potential worldwide. The
potential can not only be seen in the use of renewable resources, but also in the use of
refuse from agricultural and industrial waste that currently pose a big problem for most

9
Green Gas Limited Company Marketing Plan

countries especially Pakistan. 32 percent of the Bio plants show poor results, which are
not state of the art, show poor efficiency in heat and energy production. Thatswhy large
companies in Pakistan are reluctant to use that resource for the energy production.

Without construction of biogas plant new enterprise anyway need to have waste storage
facilities or treatment systems. For example untreated manure storage is 2 times larger
then storage of digested biomass after biogas plant. Manure in combination with water
forms colloid compounds. Due to that water evaporates rather hardly and in case of
precipitations Biogas is accumulated and it will be the good source of energy for the
corporations in Pakistan.

• Small Businesses:

Use of digesters at industrial complexes (to treat the waste generated at the factory) is
also increasing. For the small businesses concerned, this is an excellent avenue to dispose
of waste in a cost effective manner while at the same time generate heat and/or
electricity. Small businesses that have an especially high potential for using anaerobic
digestion include cattle and poultry industry, small business setups of breweries, pulp and
paper, leather, and the fruits & vegetables. As pointed out earlier, some of these small
businesses are already producing electricity from biogas, and this trend is likely to grow
further in future.

Many Pakistani small businesses, in their quest for becoming more environment
conscious, are turning to biogas one of their energy sources. In 2009, Biogas plants are
installed and continue its operations to use biogas. Small businesses can use those novel
biogas digesters for their small businesses as a renewable energy resource.

• Residential Homes:

Biogas production has been quite dominant in Pakistan at household and community
levels (especially in rural areas) than on large scales. In villages especially, thousands of
small biogas plants use the cattle waste (especially cow dung) and provide biogas used
10
Green Gas Limited Company Marketing Plan

for home heating and cooking. It is estimated that over 2 million such biogas plants will
have been estimated to installed all over Pakistan.

Such use of biogas systems in agrarian communities can increase agricultural

productivity. This is because producing heat using biogas is more efficient than
producing it using combustion, and hence more agricultural and animal waste can be
returned to the land by farmers as organic fertilizer. Moreover, the slurry that is returned
after methanogenesis is superior in terms of its nutrient content and can be used as a soil
conditioner and plant nutrient (fertilizer).

Target Market:

Our main target market is domestic people. The green gas company has decided to target
the domestic people first because initially the company wants to penetrate in the market
to create a market share and other fact to target this section is that the company in its
initial stages will have such infrastructure that it can provide this gas only to the
household people for domestic use.

The greatest demand at domestic level, because of the shortage of energy sources is the
main reason to select this section as target customers.

11
Green Gas Limited Company Marketing Plan

On other side the gas may be used for the commercial purposes but according to our
research the machinery which being used in the factories is very heavy.

But if any factory or business wants this facility we will provide this gas to them after
making a contract and provide them the complete plant structure to them.

Competition
Competitively, markets are still developing and a high degree of fragmentation is
apparent across Pakistan. New entrant companies are uncommon in this niche sector and
opportunities for companies to progress from smaller system installations to larger ones
are apparent. As a result companies are striving hard for position under current market
growth conditions and it's likely that some consolidation will occur into the medium
term. This scenario will be compounded if the larger OEM (original equipment
manufacturer) and OEM packagers of gas engines become interested in developing a
large share of the market as it develops. Various factors are to be considered in order to

12
Green Gas Limited Company Marketing Plan

study the competition of Biogas in Pakistani market. These factors are described in the
diagram below:

Growing
interest
from larger
companies
Increasing
Fragmented markets
competition
Room for
company Growing
development niche
market
New entrants
Acquisitions and
mergers

Our Main Competitors:

The main competitors of Green Gas Company are:
• Sui Gas
• LPG Gas
• Wood keepers

Sui Gas:

13
Green Gas Limited Company Marketing Plan

Sui Northern Gas Pipelines Limited (SNGPL) is the largest integrated gas company
serving more than 3.4 million consumers in North Central Pakistan through an extensive
network in Punjab and NWFP. The Company has over 46 years of experience in
operation and maintenance of high-pressure gas transmission and distribution systems.

Our main competition is with the Sui gas which is prevailing in the whole market from a
longer period of time. This is being used for many purposes such as cooking, and to
produce the electricity etc. The customers are well familiar with this kind of energy
source. According to our survey most of the people and probably all the people are using
this kind of source. So this will be a great competition for us to make our product
successful.

LPG Gas (Liquefied Petroleum Gas):

The second main competition the Green Gas Company will face is in the form of LPG
Gas. Liquefied petroleum gas (also called LPG, GPL, LP Gas, or auto gas) is
a flammable mixture of hydrocarbon gases used as a fuel in heating appliances and
vehicles, and increasingly replacing chlorofluorocarbons as an aerosol propellant and
a refrigerant to reduce damage to the ozone.
LPG is widely available and can be used for hundreds of commercial and domestic
applications. Moreover, LPG is now being used alongside renewable technologies, as
well as with decentralized electricity generation (Combined heat and power systems).

Wood Keepers:
At this stage we have a small competition with the wood keepers who provide the wood
for the purpose of burning for cooking etc. But we think that this is a small portion in the
cities like Gujranwala. So this is not a strong force for us to compete with.

14
Green Gas Limited Company Marketing Plan

Marketing mix

According to the marketing mix elements like Product, Price, Place and Promotion the
Green Gas Company has decided launch the product in the market.

Product:

Biogas is created when organic waste is placed in a “biodigester”, a machine designed to

capture methane gas released by decomposing material. When properly treated, biogas
15
Green Gas Limited Company Marketing Plan

can be used to generate power or fed into the grid and used as a clean, renewable energy
source for homes and businesses in place of some fossil fuels. Currently, biogas can be
produced only in limited quantities but hopefully, one day will become a viable
renewable energy source for Pakistan. The companies may also upgrade their well-know
and marketing share through supporting some social activities and scholastic conferences.

Price:

The price is the amount a customer pays for the product. It is determined by a number of
factors including market share, competition, material costs, product identity and the
customer's perceived value of the product. The business may increase or decrease the
price of product if other stores have the same product.

According to our survey and research our customers are willing to pay price less than the
competitors so according to the Penetration pricing strategy the Green Gas Company has
decided to penetrate in the market so the range of price will be much lesser than the
competitors prevailing in the market.

Place:

Place represents the location where a product can be purchased. It is often referred to as
the distribution channel. It can include any physical store as well as virtual stores on the
Internet.

Methods of Distribution:

Biogas will be able to provide at least ten per cent of the need for natural gas and be used
with the same degree of flexibility as fossil fuels. After treatment, biogas has the same
gas quality as conventional natural gas and can be fed directly in the natural gas
distribution system. Feeding bio-methane into the natural gas system is of particular
interest where there are no local consumers of heat. This option makes the use of biogas
more versatile. Farmers, municipal utilities and energy supply companies can share the

16
Green Gas Limited Company Marketing Plan

profit of feeding bio-methane into the natural gas distribution system. Depending on the
gas quality in the distribution system, the calorific value and other characteristics must
also be adjusted.
In Pakistan as an entrepreneur we have two methods of mechanized distribution systems
of Bio gas:
• Distribution via piping systems

The Biogas is pumped directly from the storage tank onto the field and is
distributed there. If the pump is rather small and the pressure and transported
amounts are low, the distribution can be done by hand. With increasing pressure
and transported amounts, the distribution system is attached to a tractor. The
tractor does not have to be very powerful as there is no need to pull a heavy
tanker. The main advantage of this method is the low ground pressure and the
ability to enter into fields of steep slope, of fragile soil structure and during bad
weather. This method is only economic for fields close to the slurry storage
container. But it requires high cost and labor.

Distribution via tanker

The tanker is filled with Biogas and pulled to the field for distribution. At initial
stage we will install 2 plants to produce the gas.

Green Gas Company’s method to distribute the gas:

The distribution method of tanker is very beneficial as compared to piping system

because it have the advantage of a higher degree of quality gas and less nutrient losses to
the atmosphere. We are going to use the second one (Distribution through Tanker) in this
method we will generate the bio gas with the help of plant then we will fill it into the

17
Green Gas Limited Company Marketing Plan

tanker with the help of pipes then the gas will be filled to the cylinders of different sizes
according to the need.

This is the structure of Bio Gas plant.

The Green Gas Company has decided that we will open our shops in the different areas of
the Gujranwala like Model town, GT road etc.

Promotion:

Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements:

18
Green Gas Limited Company Marketing Plan

Advertising:

Advertising covers any communication that is paid for, from cinema commercials, radio
and Internet adverts through print media and billboards. The Green Gas Company has
decided that we will adopt the following methods to advertise our product:

• TV: We will use the local media like cable network.

• Radio: We will also use FM-106 as an advertising tool because a lot of people
also listen the radio.
• Print Media: Different news papers and magazines like Jang, Sunday
Magazine, and Akhbar-e-Jahan etc will be used for the advertisement tool.
The following tools will also be used:

Hand books: To explain the benefits of the product to the customers.

Cartoon books: To develop the interest of the customers we will use

different kind of cartoons to explain the process and benefits of the product.

Pictures: The pictures of the whole product and process will be shown to the
customers to develop the interest of the customers, like:

• Bill Boards: We have decided that we will use this tool also and we will
convey our message to the consumers through bill boards along other ways.
• Posters: This tool is also a very impressive tool to gabber the intention of the
customers so we will also distribute and paste the posters in the whole city to
create more awareness.

19
Green Gas Limited Company Marketing Plan

Public relations:

Public relations are where the communication is not directly paid for and includes press
releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events.
To promote our product the Green gas Company has decided to go for following tools:

• Seminars: We will go to most renowned and popular institutions (Gift

University, Punjab University, Punjab College, and Superior Science College etc)
and conduct the seminars over there.

Word of mouth:

Word of mouth is any apparently informal communication about the product by ordinary
individuals, satisfied customers or people specifically engaged to create word of mouth
momentum. Sales staff often plays an important role in word of mouth and Public
Relations. To create the positive word of mouth at initial stage we will use the following
tolls:

• Train our sales force.

• The employees and owners will create a positive buzz in the market.

Point of sale:

Point of sale (POS) or checkout is the location where a transaction occurs. A "checkout"
refers to a POS terminal or more generally to the hardware and software used for

20
Green Gas Limited Company Marketing Plan

checkouts, the equivalent of an electronic cash register. As a point of sale our shops will
be available in the different places of the city. The process will be in the following way:

Individual Marketing Promotion:

Telemarketing:

21
Green Gas Limited Company Marketing Plan

When we have decided to introduce the Biogas into the market of Gujranwala, We made
a survey by questionnaire of potential customers to get their opinion and determine the
demand before go into selling. We also have made interviews it could also call existing
customers of SUI Gas to get their opinion too. Telemarketing is a lot more economical
and up to date than launching a new product on gut feel or paying for expensive industry
marketing data.

Larger farms with huge animal populations have created a need to manage massive
volumes of waste. The idea of turning this manure into electricity is appealing. It could
help us to gain value from manure, protect groundwater and local streams, reduce odors,
and recycle fertilizer nutrients, while generating a renewable source of electricity. With
all these benefits, it's easy to lose sight of the technical factors, economic barriers, and
manpower/management requirements associated with a successful biogas installation.
That phenomenon of Biogas can be marketed through telemarketing. That type of
marketing is used more in Pakistan. We can see various call centers where Tele sales
representatives provides information about the concerning products.

The role of the Telemarketers:

Telemarketers can be performed their tasks in order to promote the biogas regarding
when they contact consumers and what they disclose about themselves and about biogas.
For example, if Pakistani government launches are call centers for providing information
to the citizens that will be a good source of providing information about biogas.
Telemarketers are also required to identify themselves with their name, the company they
represent, and a phone number at which their company may be contacted so that the
customer can order the cylinder of biogas or to get full information about that cheap and
quality resource.

Training for Telemarketers:

22
Green Gas Limited Company Marketing Plan

Communication, customer management, and cross-selling skills are the three essential
components that are possessed by telemarketers when they are describing the customers
about biogas. Sales courses and sales training courses about the methods to sell biogas
are also created to train not only the one-on-one seasoned sales executive or the
ambitious company door to company door new sales person. Telemarketers are sales
professionals. Sales training and especially about biogas awareness can turn
telemarketers into sales professionals. Courses in biogas awareness for telemarketers can
train a telemarketer how to define biogas or related products in a manner that will
uncover the key buying motives from the potential buyer.

Direct Mail:
Direct mailing campaigns are less visible to competitors – it is therefore possible to be
more creative for the biogas providers. The advertiser can target a promotional message
about the benefits of Biogas down to an individual level, and where possible personalize
the message. There are a large number of mailing databases might be available that allow
businesses to send direct mailing to potential customers based on household income,
interests, occupation and other variables

Businesses can first test the responsiveness of direct mailing (by sending out a test
mailing to a small businesses and domestic users that first they are offered to use biogas
and then based upon their results they can create the more significant cost of a larger
campaign. Direct mailing is based on the “mailing list” – a critical part in the direct
marketing process. The mailing list is created on the base on market research that
includes the mailing addresses of all the customers who want to use Biogas. This creates
a database which collects together details of past, current and potential customers. A
properly managed mailing database for biogas customers enables a business to:

• Focus on the best prospective customers

• Cross-sell related products
• Launch new products to existing customers

23
Green Gas Limited Company Marketing Plan

The starting point is that the existing information about Biogas is communicated to the
customers. All forms of communication between a customer and the business need to be
recorded so that a detailed, up-to-date profile can be maintained. It is also possible to
“buy” mailing lists from elsewhere. There are numerous mailing list owners and brokers
who sell lists of names. The Internet, directories, associations and other sources are good
sources.

Company must need to keep its customers database up to date and stay in touch with your
customers every 90 days. Have someone call to his customers every 3 months to update
the details and to get feedback about the quality of Biogas. It even asks from customers
what they think about Biogas and if they have any ideas how to improve it. Take note of
their favorable comments too.

24