Business Consultancy Project For Oil And Gas Industry Report

Description of Company

Discuss about the Business Consultancy Project for Oil and Gas Industry.

With the change in time and economic factors, each and every organization needs to take proper marketing acts and activities to run the business effectively. The company undertaken in this report is Emas Offshore which has been operating its busienss in the oil and gas industry. This company is providing offshore vessel to support oil and gas industry in offshore and indulge in supporting vessel activities on international level.  . The marketing plan is undertaken to promote its Anchor handling tug Supply vessel services in market. The main objective of marketing strategy of company is to showcase the unique quality intents of company which may be beneficial for the clients if they avail Anchor handling tug Supply vessel services from the company. Emas Offshore could use social media, loyalty card, strategic alliance with other organizations and conducting the seminars and survey as its marketing strategies in market.

Emas Offshore is one of the biggest Asia’s pacific offshore support service providers having headquartered in Singapore and founded in 2007. This company has been operating its business on international level and offering international offshore services to its clients (Emass Offshore Company, 2017). 

The current market position of Emas Offshore is not effective and company is consistently failing its business due to high competition and strict legal compliances (Emass Offshore Company, 2017).

It is analyzed that the main issue in the marketing position of company is based on the non-effective marketing strategies and non-experienced employees indulged in its offshore vessel to support oil and gas services (Bobocea, et al., 2016).  The main problem which Emas Offshore has been facing in its current marketing model is related to its start activities. Most of the employees are less focused on analyzing the consumer’s needs, securing information and design the offshore services as per the clients need and demand in market (Crowley2015 

Two direct competitors of the Emass Offshore Company

Rivals name	Revenue	Market share
MMA offshoe	196.5 Million	12%
BW offshore	658.4 Million	13%

(Source: Emass Offshore Company, 2017)

Target marketing and positioning

Product and offer shore services- Anchor handling tug Supply vessel support services in market.

Targeting for the product

Target Segment	Client Need	Feature and Benefit
International Clients	Low fuel consumptions	Target to reduce Emas vessel fuel consumptions by 20% to 40% by Install 24 hours online flowmeter to monitor fuel consumption of vessel.
Southeast Asia Market -Domestic Requirement’s	Local registry vessel	Change vessel registry as per local requirement.
Long Term Charter	Clean HSE track record. High health, safety and environment (HSE) standards.	Promoting the HSE measures and reducing the risk of life of employees and strength safety standards onboard as per client requirement

The Emas Offshore Company needs to maintain the effective work approach to identify all the applicable internal and external factors which are affecting the business (Paterson, et al. 2018). After that, company needs to develop proper strategic approach to meet these business issues. However, the main issue of the Emas Offshore Company is related to the complexity of the offshore services costing offered in the Asian market. Emas Offshore needs to develop proper action plan to identify the timeframe required to implement the strategic approach and install 24 hours online fuel flow meter to monitor vessel fuel consumption.  It will not only strengthen the overall business output but also assists in creating strong brand image in long run (Perreault, Cannon, and McCarthy, 2015). 

Marketing Models and Concepts, Critically Examine the Current Market Position of Offshore Vessel to Support Oil and Gas Industry in Offshore

As per the annual report of company, the current cost of sales of its all offshore services US$28.million which includes the penalties and taxes incurred by company in the last year. It is analyzed that if Emass Offshore Company installs 24 hours online fuel flow meter to monitor ship fuel consumption then it will surely satisfy clients will with the daily usage of the ship. It will also lower down the cash outflow of clients at large. Nonetheless, the Emas Offshore Company has been currently focused on fleet of 51 vessels comprising AHTs, AHTSs, PSVs, barges, OAVs, FPSOs and a heavy lift and pipe laid construction vessel. The new support oil and gas services in market and develop marketing strategic plans with several agencies for setting up strong shipping lines will focus on installation of  24 hours online fuel flow meter to monitor ship fuel consumption then it will surely satisfy clients will with the daily usage of the ship However, it will result to high level of cash outflow from the business which negatively impacted the project acceptance capacity of the business in long run (Emass Offshore Company, 2017).

Strength Strong brand image and team of highly experienced employees in its process. Mr. Ranjeet, CEO of company undertook idea of agency support service to strengthen several shipping lines to promote its offshore services and offshore vessel to support oil and gas industry (Bobocea, et al.., 2016).	Weakness High complexity and business issues in its developed operational marketing plan. It increases the complexity of  Company to plan to adopt the Zero Accident / incidents and Health safety program which put emphasizes upon more experiences seafarer in the filtration process of oil and gas products
Opportunity After installation of 24 hours online fuel flow meter to monitor ship fuel consumption then it will surely satisfy clients will with the daily usage of the ship then it will not only attract more clients in shipping offshore busienss but also lower down the costing of its offshore services	Threat Issue of high cash outflow and increased cost of capital due to re-engineer is value chain activities to customize its offshore services as per the Corporate Policy Statement on Health, Safety and Environment (HSE). It may be big failure if company fails to undertake this issue effectively

BCG matrix is a strategic framework of four dimensions in which each dimension states the position of firm’s segments (Hambrick, MacMillan and Day, 2012). This framework can help Emas Offshore Company to formulate and implement the effective strategic growth while offering Anchor Handling Tug Supply vessel services in market. BCG Matrix of Emas Offshore is discussed below:

This is the segment that competes in high growth sector and holds high market share. About Emas Offshore, it can be stated that it holds a reputable market position in West Africa and Asia Pacific region (?irjevskis, 2017). This segment has generated higher revenues in this market segment. Thus, currently Emsa Offshore is star in this segment.

After its establishment, the company has made various efforts to establish its brand image in the country. The organization has made track record in HSE (Health, Safety and Environment) and operations that has allowed it to establish powerful relationships with major international and national oil firms. To stay in this category, the company needs to implement effective strategies and develop more offshore services.

Unfortunately, currently Emas Offshore lies in this category as its position is bad in the country. The major reasons behind this is that its services are exposed to many risks like oil spills, loss of vessels, on-board vessel failure, collision, negative weather conditions etc. It has declined the growth and market share of company (Suksantilap, Leelasantitham and Glesner, 2017).

Issues and Resolution

 In the light of above finding, there are main three marketing objectives that Emas Offshore Company needs to pursue for the offshore services and products offered by company (Kaiser, 2015).

First year objective of Emas Offshore Company (lower down the fuel consumption of vessel)

The first year objective of company would be focusing on installation of 24 hours online fuel flow meter to monitor ship fuel consumption which will lower down the fuel consumption costing and also satisfy with the daily usage of the ship.  The ultimate impact of this change would be on the clients as it will lower down their cash outflow. In addition to this, the positioning of the Emas Offshore Company in the market will depend upon the marketing strategies and marketing tools used by company to attract more clients in long run.  This marketing objective is based on the brand image and upcoming business plan of company to win over the market within three years (Kaiser, 2018). The main agenda of marketing plan of company to convey the message to stakeholders that by using the advance system and installation of 24 hours online fuel flow meter to monitor ship fuel consumption will lower down the overall costing and assist organization to achieve the desired goals and objectives. 

The main second year objective of company is to increase the overall market share by 25% in Asia Specific by focusing on preventing and reducing the overall cash outflow of the clients and changing the vessel flag in the offshore service program. Many of its clients such as PETRONAS, Exon, Shell are using the traditional Vessel flag which increases the overall  fuel consumption pay by clients to reduce the cash outflow of the clients.  By second year, aim is to cut the consumption of the Emass Fleet of vessel by 20% to 40% depending on the type of vessel and the saving which will be passed on to the client  in full. Therefore, by install 24 hours online fuel flow meter to focus on standardization of the fleet and by chaing the vessel flag will increase the overall efficiency of the offshore services and lower down the cost of capital. It is the base strategy which will be the main outcome after re-engineering of the business process of Emas Offshore. It is analyzed that if company wants to win over the market then it will first have to re-engineer by changing the vessel flag is value chain activities to customize its offshore service. This strategy will be helpful in setting up the strong and unique brand image in market.  It has marketing objective to create core competency in market and offer high quality off shore products and services to attract more clients (MacMillan, Hambrick, and Day, 2012).

Two Direct Competitors of the Emass Offshore Company

The market share of company is highly dependent upon the overall turnover of the business.  It is analyzed that company could attract more Southeast Asia market by follow local company requirement. Info – Local laws have been implement to protect local OSV operator as Peteronas will prioritize Malaysian flagged vessel over foreign vessel  The marketing objective of company is to achieve at least 25% market share of the Asian Specific by using its strategic plans in market (Mikkelsen, Lützen, and Jensen, 2016). However, in order to expand the busienss, company needs to take local assistance of charter and hire more local competent crew.

Specific- It is accompanied with the specific goals of company what it wants to accomplish in certain period of time. The specific goal of company is to focus on lower dowon the fuel consummation, reduce the cash outflow of clients and customize its services as per the client’s needs in market.

Measurable- It divulges the measures and matrix which are going to be used by Emass to achieve its goals. It has focused on use of installation of 24 hours online fuel flow meter to monitor ship fuel consumption which will lower down the fuel consumption costing and also satisfy with the daily usage of the ship.

Achievable- It reflects how important a goal is to company and how to make it attainable. Emass has focused on using 24 hours online fuel flow meter to monitor ship fuel consumption to lower down the fuel consumption and reduce the cash outflow of clients. It will attract more clients and increase the market share in Asian market.

Relevant- It focused on the areas which will make sense with the broader busienss goals of company. It focused on complying  the all applicable rules and achieving market share by 29 %.

Time- It gives the target or time to achieve the set goals and objectives. All set objective will be achieved within 3 years

Ansoff matrix is strategic planning tool which assists the management of Emas Offshore to customize its offshore services as per domestic clients and lower down the overall cash outflow of clients (Filippov, 2017). Emas Offshore Company can use different growth strategies from Ansoff Matrix. Different strategies are discussed below:

Considering the competitiveness, Emas Offshore needs to use innovation in its products. The company is introducing Anchor Handling Tug Supply vessel service that will help the organization to strengthen its brand image and increase the overall output (Boote, et al, 2015). Additionally, it can use the bio fuels which are produced in the sustainable manner.

Target Market and Positioning

Currently, this company is headquartered in Singapore and holds the market in West Africa and Asia Pacific. In the future, Emas Offshore can expand its operations in other nations like Thailand, Indonesia, Malaysia and Indonesia as their oil and gas firms need more vessel support. It needs to focus its marketing and communication strategies in targeting the partners as per geographical segments (Croasdale, et al, 2016). 

In order to enhance its position, it is the best strategy for Emas Offshore Company. It should offer new products in international markets. In new markets, company should launch its 24 hours online fuel flow meter so that it can monitor the consumption of ship fuel. It can assist to decrease the fuel consumption and clients’ cash flow (Widiatama, Hamid and Matrono, 2018).

Growth Projection on the basis of three years business objectives

If company cut down the inappropriate cost of the business  then it will lower down the overall cash outflow of clients while buying offshore services from the Emass.

The segmentation consumer market focuses on the identifying the target markets of the company (Wolfe, Silmon, Plesko. and Miller, 2014).

The Emas Offshore Company could easily attract its domestic and international clients as it has endeavored to meet its Corporate Policy Statement on Health, Safety and Environment (HSE) to strengthen its health and safety of clients. The main target clients would be PETRONAS, Exon, Shell who would take the cost effective services from company.

Company will focus mainly on the Asia Specific companies which are looking for the cost effective Anchor handling tug Supply vessel services in market. By change of vessel registry, will get more charter in local because it’s one of the major requirement by Asia countries. Indonesia, Malaysia and Thailand required all supply vessels to be they own flagged. Therefore, strongly suggest changing Emas Vessel flag as per local requirement to get more charter in Asia country (Bobocea, et al.., 2016).

Products- Emas Offshore Company has been offering the offshore vessel to support oil and gas services in market. However, in order to strengthen the products and services in market, company needs to undertake using 24 hours online fuel flow meter to monitor ship fuel consumption to lower down the fuel consumption and reduce the cash outflow of clients (Emass Offshore Company, 2017 

Process- The main process functioning of the Emas Offshore Company is related to its value chain activities and procedural work. However, the main process issue which Emas Offshore Company has faced is related to less effective Corporate Policy Statement on Health, Safety and Environment (HSE) in the organization. Emas Offshore Company needs to adopt the international Corporate Policy Statement on Health, Safety and Environment (HSE) to mitigate the clients’ health safety issues (Borch, and Batalden, 2015).  

Positioning

People- The main clients for the Emas Offshore Company are the ship companies who are indulged in the off shore services program and operate their business in port. These clients could be attracted if Emas Offshore Company takes effective strategic alliance with the companies in ship yards (Elisabeth, 2016).

Place- Company should be less worried about the place where it should off its products and services to its clients. Emas Offshore Company could use its online dashboard mechanism to sell its products and services to clients. It will not only strengthen its overall outcomes but also strengthen the process system activities of business (Crowley, 2015).  

To introduce its products and services in the market and communicate its brand message to targeted market, Emas Offshore Company needs to develop an effective marketing communication plan (Gaspar, Hagen and Erikstad, 2016). This plan will assist this oil and gas firm to communicate its marketing message to its potential customers.

Communication plan for its services is given below:

Action	Explanation	Time Frame
Establishing Communication objectives: · To increase the awareness about Emas Offshore as well as sales of AHTS vessel. · To build good relationships with existing clients. · To become one of the leading organizations in oil and gas industry by attracting a large customer base.	Before creating this plan the company will establish some communication objectives. These goals will assist the company to attain above-mentioned marketing objectives. In order to attain above objectives, the company needs to develop a communication plan that includes different marketing and promotion strategies (Hårde, 2016).	6 months
Identification of different communication strategies and marketing channels: · Advertising strategy (Online and offline media) · Website Promotion · User Generated video platform	· Advertising strategy (Online and offline media) Emas Offshore Company will implement effective advertising strategies and promote its offshore services by using online and offline media. Under this, it can promote its services by using social media sites like Facebook, Twitter and Instagram. It can create a page on these sites and upload the pictures and videos of its offshoring processes and vessels. Under offline mode, the organization can promote its products by placing the ads in newspaper and business magazines (Shoham and Paun, 2015). This strategy will assist the company to approach both national and international clients like PETRONAS, Exon, Shell, who are seeking for offshore services. · Website Promotion Moreover, Emas Offshore Company can adopt this mode to promote its services to attract and retain its channel partners. It needs to make its website that much informative and attractive so oil and gas companies get enticed towards it. It can spread its website URL through blogs, mails etc. that will enable it to focus on clients who are seeking for reasonable Anchor handling tug supply vessel services (Wolfe et al, 2014). · User Generated video platform: Additionally, the company can use this platform as it will provide it valuable exposure and boost its credibility (Plomaritou and Papadopoulos, 2017). Through this, it can showcase that how company provides offshore and vessel supports to oil and gas clients during oilfield life cycle, bridging the exploration and production stages.	6 Months 7 Months 6 months
Implementation of communication plan and Strategies	Under this step, top management of Emas Offshore will implement above promotional and communication techniques in the process so that they can attract, retain and encourage the channel partners to use their services. Different resources will be used to implement the plan.	5 Months
Evaluation	After the implementation, the team of company will evaluate the effectiveness of above marketing communication plan considering different KPIs like client base, sales of AHTS vessel, revenues etc.	6 months

The main recommendation to Emass offshore company is related to performance monitoring program which could be used to track and reported for strengthen the business functions are given as below.

• Setting up internal control system in the value chain activities of the Emass Offshore Company and installing fuel flow meter checkup program to lower down cost of process.  
• Arrangement of the legal compliance program to comply with the Corporate Policy Statement on Health, Safety and Environment (HSE) to strengthen the safety program for clients.
• The company should adopt effective growth strategies and introduce new products and services in nearby countries. It will enable the firm to create a large client base.
• Install 24 hours online fuel flow meter to monitor ship fuel consumption then it will surely satisfy clients will with the daily usage of the ship. It would assist clients to lower down their cash outflow while buying services from the clients.

Conclusion

After analysing all the detail and case study of Emas Offshore Company, it could be inferred that company could use the strategy to change the process work by installing 24 hours online fuel flow meter to monitor ship fuel consumption then it will surely satisfy clients will with the daily usage of the ship. It will also lower down the overall cash outflow from its offering in market. In addition to this, company has also adapted its Corporate Policy Statement on Health, Safety and Environment (HSE) to strengthen the employees and clients health safety program which will increase overall business outputs. 

References

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Current and Aspire Position of Emass Offshore Company

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