Oil & Gas Industry: A Marketing Analysis of Saudi Aramco's Strategies

This report provides a detailed marketing analysis of Saudi Aramco, a state-owned oil and gas company operating in the UAE and internationally. It evaluates the company's current marketing approaches and activities, focusing on achieving growth and competitive advantages. The analysis includes an overview of the organization, its mission and vision, and its product portfolio. The report also examines the industry's current scenario, identifying major players and investment opportunities. A PEST analysis explores the political, economic, social, and technological factors impacting Saudi Aramco, while Porter's Five Forces model assesses competitive rivalry, the threat of new entrants and substitutes, and the bargaining power of customers and suppliers. The report concludes with recommendations for target market selection, positioning strategies, and marketing mix adjustments to strengthen market position and increase market share, particularly in the Asian market, such as India.

Marketing Management
Marketing Analysis of Oil and Gas Industry
Saudi Aramco

Introduction
 The following report provides a detailed analysis of the marketing and business
activities of the organization Saudi Aramco- is running the operation in UAE and in
the international market. The Purpose of the report is to evaluate the current
marketing approaches and activities which helps the company to run the operation
achieving growth and competitive advantages

Overview of the organization
 Saudi Aramco is a state owned oil and company
of the Saud Arabia and it is fully integrated global
as well as global petroleum enterprise
 The headquarter of the organization is located in
Dahran in Saudi Arabia and with its extending
operation, the organization employs more than
65,000 staff worldwide (Saudi Aramco 2018).
 The organization is known as world’s fourth-
largest natural gas reserves of 288.4 trillion

Mission and Vision Statement
 Vision- The major vision of the company is to become
world’s leading integrated energy and Chemicals Company
and strengthening its fouls on the long-term future.
 Mission- The mission of the organization is to diversify
the national economy beyond oil and establish a thriving
private sector which could minimize market reliance on oil
and gas. Tis mission will help the organisation to enable Saudi
Aramco to develop the operation to the next level.

Products of the organization
 Gasoline
 Diesel
 Crude oil
 Sulphur
 LPG
 Propane
 Butane
 Natural Gasoline (NG)

Overview of the industry
 When digging into industry’s current scenario, it has been found out that even
though the price seems to be recovering, the crude was up nearly 90% ii
2016, which is over US$50 for each barrel (Calixto 2016)
 The major players in the industry are now Abu Dhabi National Oil and Gas
Company, Royal Dutch Shell and British Petroleum (Cordes et al. 2016).
 The foreign investors have the opportunity to invest in oil and gas project
which worth US$300 billion in India because the nation is supposed to cut
reliance on the import of gas and oil (Ruqaishi. and Bashir 2013)

PEST Analysis
 Governments have a strong control over the operation of oil and gas and the reserve of
hydrocarbon which has a significant impact on OPEC which controls almost 76.4% of
world reserves
 Downfall of World Bank, Brexit and demonization in India have broadly affected the
world economy, which has a strong influence on Saudi Aramco’s operation and even in
the entire oil and gas industry (Mohanty et al. 2011)
 Observing the response of the citizens, the governments of UK, UAE and Australia
have started pushing the organizations to show their CSR roles

Porter’s five forces
 Competitive rivalry – Moderate: It has been identified that Saudi
Aramco does not have to face any high state of competitive rivalry
because the organization is state owned player and they will get the
preference when making a major deal in the area of expansion and
refining
 Threats of new entrants: Low- The operation of oil and gas requires broad initiatives.
Digging in the oil fields, establishing production and distribution network require time
and huge amount of effort, which further requires large investment (Mitchell, Marcel
and Mitchell 2012)

Contd..
 Threats of substitute products: Low- The
depletion of the oil research created the urge for
using the substitutes such as bio fuels, solar power,
and nuclear power
 Bargaining power of the customers:
Moderate-Saudi Aramco is the member of
OPEC’ thereby, it can control the oil and the global
price.
 Bargaining power of customers: Saudi Aramco
does not have to deal with any supplier because the
organization is its own supplier.

Choice of target market:
 In order to strengthen the market positions
and increase the market share, the
organization Saudi Aramco will have to
choose a market where customer
responses are high. For example, the firm
can pay attention to Asian market such as
India because in the recent time, the NDA
government in India is approaching the
foreign investors. This welcoming news
confirms that Saudi Aramco could receive
governmental support once it enters the
market. India is a broad market, the
organization will have a large customer

Positioning statement for the target
market
 “If you are looking for the best energy solution within the
affordability, Saudi Aramco is the solution- providing
customers with highest value”.

Marketing Mix:
 Saudi Aramco needs to trade some its core products such oil, petrochemicals, gasoline in the target
market-India because there is a growing demand of petrochemical products in the chosen market
 Price- India is a price sensitive market, therefore, to acquire this broad new market, the organization
should develop penetrative pricing strategy which enable the company to charge low price for the
product to increase customer base
 The consumption of internet is currently in India is 71% which is 9% higher than the previous year
(Statista.com 2018).