Marketing Strategy For The Golar LNG Company - Report Example

TABLE OF CONTENTS ………………………………………………………………………… 2 PART A: MARKET ANALYSIS 2. Introduction ……………………………………………………………………. 3 3. Market’s Analysis ……………………………………………………………... 3 3.1. Analysis of Market ……………………………….……………… 3 3.2. SWOT Analysis ………………………………………………….. 3 4. STP Approach to Marketing …………………………...................................... 4 4.1. Market Segmentation …………………………………………… 4 4.2. Market Targeting ………………………………………………... 5 4.3. Market Positioning ………………………………………………. 5 5. The Marketing Strategy ……………………………………………………….. 5 6. Relationship Marketing ……………………………………………………….. 6 7. Internet Marketing ……………………………………………………………. 7 8. Conclusion ……………………………………………………………………... 7 PART B: IMPLEMENTING NEW TECHNOLOGY 9. Implementing New Technology ………………………………………………. 8 9.1. Plant Web ………………………………………………………… 8 9.2. Importance of IS in Business ……………………………………. 8 9.3. Failure of IS ………………………………………………………. 9 9.4. Implementation of Successful IS ………………………………... 9 10. Conclusion ……………………………………………………………………. 10 11. Bibliography ………………………………………………………………….. 11 ABSTRACT This report contains two parts. The first part contains the market action plan for Floating Storage and Regasification Unit of Golar LNG. The analysis of market is done. The market plan is made by the use of STP approach. The strategy involves various promotion mix tools. The second part contains the importance of information systems in today’s business, and how they lead to business advancement. It contains the details of a digital infrastructure of a plant system, PlantWeb. Later in the report, the causes of failures and steps to avoid failure are mentioned. INTRODUCTION Floating Storage and Regasification Unit is a product of GolarLNG. According to their website, it is based on the conversion of an existing LNG carrier into a floating terminal that can be situated offshore or at a new or purpose-built jetty/pier. It will receive liquid natural gas (LNG) from offloading LNG carriers, and the onboard regasification system provides gas send-out through flexible risers and pipeline to shore. It has an inexpensive infrastructure, and is basically a short cut for pumping fuel straight into the short-side gas grid. MARKET’S ANALYSIS ANALYSIS OF MARKET: According to statistics, Asian imports of LNG rose 1.8 bcf/d. Japan was leading the way by +0.8 bcf/d and South Korea at +0.7 bcf/d was close behind European imports rose 0.9 bcf/d, where Spain led by +0.5 bcf/d and Italy by +0.1 bcf/d. The entire shortfall was absorbed by the US with import s down 1.7 bcf/d year-on-year. In 2009, overall 22 countries were importing LNG. The imports are expected to grow by a large amount in the coming years. SWOT ANALYSIS: The Floating Storage and Regasification Unit have become really popular in the last few years. It is relatively a new concept, and Golar LNG is the first one in the world to deliver it. With this fact that they are the first one to introduce it, they have a competitive edge. Golar LNG has a huge market share in the overall market. They have many importers who are now expecting Floating Storage and Regasification Unit service. The reasons for this demand are: A solution in 2 years rather than 3 to 5 years. Less risk of delays in case of land acquisition It is less expensive It can be relocated It has improved technology It is accepted and promoted by Oil Majors Flexibilty in changing the location of the unit It has a fast startup With these advantages, Golar LNG has to market its service in a way that it maintains its market share in FSRU. They haven’t marketed their service greatly in order to attract and retain their customers. For this purpose, they need to create a proper marketing plan. STP APPROACH TO MARKETING MARKET SEGMENTATION: Although this service does not have any specific customer. This service is for all the importers of LNG. But in order to start marketing, Golar has to cater to individual regions needs first. This marketing action plan will be the segment catering to the importers in Asia. The segment is made according to the demographics. MARKET TARGETING: After the segment has been chosen, there is a need to think up a strategy for marketing. Differentiation is the market strategy for this service, because it is a unique and relatively new service. MARKET POSITIONING: The FSRU service is for providing ease and comfort to the importers, who would easily be able to import LNG with the help of these floating terminals. The Service is positioned to be inexpensive, yet having a highly advanced technology. THE MARKETING STRATEGY Any kind of product or service needs marketing. In maritime industry, marketing is considered to be unimportant. But experts say that marketing is important even in shipping industry because competition is increasing. Small actions must be taken in order to market the service. Specially for the fact that FSRU is a new service, it needs to be marketed. Out of the promotion mix tools, this action plan will involve personal selling majorly. The import of LNG is done in large amounts. Therefore representatives of Golar LNG shall be meeting the importers personally and convincing them to buy their service. It will also involve Public Relations and Direct Marketing tools. Golar LNG will publish a quarterly newsletter which will have news about their services and products. These newsletters will be distributed among the importers of Asian countries. This will update the importers about the news of the company. Social Media marketing is also very important. Golar will be creating web pages. These web pages will be according to the demographics. Webpages for Asian countries will have content according to them. Direct mail will also help in marketing the service. It will create a personal relationship with the customers, which will obviously beneficial for the service. When such a huge service or product is taken, direct marketing or personal selling is always fruitful. There will be a campaign to create awareness on the benefits and new technology of FSRU. There will be videos made on the topic which will be available of youtube and company’s website. Besides these, there will be notebooks, calendars, diaries, stationary items with the Golar LNG’s FSRU logo printed. RELATIONSHIP MARKETING Relationship marketing is a concept where strong and long lasting relationships are built between customers and the company. It does not mean that the organization and the customers become buddies. In this approach, organizations reach out the customers on a more personal level. This approach is used to build profitable relationships, to make the customers loyal with the organization, and retain a good image of the organization in their minds. In maritime industries, it is again very helpful. Since Golar LNG’s business is B2B, there are very few but big customers. And reaching those customers personally is very vital to its business. The different forms of relationship marketing include telephone marketing, email marketing, catalog marketing etc. INTERNET MARKETING Internet marketing is vital for any business nowadays. Internet is a platform that brings people from different locations, age, interests and cultures at one place. This helps to interact with the customers more and more. In maritime industry, and company like Golar LNG, internet marketing is very important. Golar maintains a website to reach out its customers online. This helps them to keep a contact with customers through websites, emails, catalogs etc. CONCLUSION The increasing demand for LNG has led to innovations in this industry. Floating Storage Regasification Unit has reduced costs, and more advantages. Golar LNG needs to market this service more and more in order to retain its position of market leader, and taking FSRU service to unprecedented heights. If the above mentioned strategies are applied, then they will help in improving the value of the organization. IMPLEMENTING NEW TECHNOLOGY Today is world of technological change. New and advanced technologies are introduced in markets, and organizations are opting for new technologies that will help them in the overall process of business including operational activities as well as decision making. PLANT WEB: PlantWeb is a digital plant architecture that uses predictive intelligence to improve plant performance. It helps in the operational activities of the business, by improving quality, reducing conversion costs, and sustaining the resulting performance gains. It’s a strategy that builds a digital architecture, and provides solutions that optimize plant performance. It has various functions. The most common function of PlantWeb are leveraging digital Intelligence, Connecting the plant, Controlling the Process, and Optimizing assets. It is different from other automation architectures. It has proved to be successful in thousands of projects. It enables the users to detect and avoid conditions that could cause problems. Implementing PlantWeb in the organization will give the organization competitive advantage. It uses intelligent tools, gather information from different sources, provide these information to users, and help them to make right decisions that will b productive for the organization. IMPROTANCE OF IS IN BUSINESS: Information systems nowadays are very important in running a business. These systems help the managers at all level in improved decision making. Operational and decision making activities that were previously done manually, are now done with the help of different kinds of Information systems. They surely improve the managers in business. Information systems help in decision making, improving overall productivity, entering into a niche market, derive innovation in technology, give competitive advantage over competitors, help in saving time, and reduce the long term costs. Therefore Businesses nowadays are implementing Information systems which increase everyday activities quality,and improve their overall productivity. FAILURE OF IS: As implementing Information system leads to a huge number of benefits, it is not easy to be implemented successfully. The various factors that cause failure are the following: Misunderstanding of objectives by the implementation team Lack of commitment by the top managers Lack of client/end user commitment involvement Improper definition of roles and responsibilities Inadequate project management Conflict among stakeholders Poor planning and estimation Shortage of knowledge or skills in the project team IMPLEMENTATION OF SUCCESSFUL IS: In order to implement a successful Information System, the following factors shall be kept in mind: Support from top management Training of end users More commitment from users Project management training Aligning IT project initiatives with business strategy Establish a supportive project office Clarify business objectives Minimize the scope Take reliable estimates CONCLUSION Information systems today are crucial to business advancement. They help the organizations in every aspect of business. But there is a need to implement them with great caution and organizations should keep the above mentioned points in head in order to implement successful Information Systems. BIBLIOGRAPHY Awatif Amin Qassim, AQ. Why Information systems projects fail: Guidelines for successful projects, Information Technology Department State Audit Institution. Emerson Process management. What is PlantWeb. [Online] Available at: http://www2.emersonprocess.com/en-US/plantweb/whatisplantweb/Pages/WhatIsPlantWeb.aspx [Accessed 6 May, 2010] Emerson Process management. Operational Benefits. [Online] Available at: http://www2.emersonprocess.com/en-US/plantweb/operationalbenefits/Pages/OperationalBenefits.aspx [Accessed 6 May, 2010] Emerson process management. Project Benefits. [Online] Available at: http://www2.emersonprocess.com/en-US/plantweb/projectbenefits/Pages/ProjectBenefits.aspx [Accessed 6 May, 2010] Wong, Philip Hung Kai, HK, 2010. CRM implementation in a shipping company. [Online] Available at: http://www.gccrm.com/eng/content_details.jsp?contentid=1781&subjectid=42 [Accessed 5 May, 2010] ‘Relationship Marketing’. Drilling down. Web http://www.jimnovo.com/Relationship-Marketing-more.htm viewed on May 05, 2010 Blake Blackwell, B.B, 2009. Delivering the world’s first Floating Storage Regasification Units. Golar LNG Capt. Wei Jiafu, W.J. COSCO and shipping industry in the 21st century. Brad S.Hubbard, B.H, 2004. A fresh approach to LNG. Mustang LNG market analysis, assessment and forecasting.(Anon). ICF international Shipping industry updates. (Anon, May 2009). Deloitte Jorge A Restrepo, JP. Segmentation-Targeting-Positioning. Eureka Facts Cahoon, S. C. 2004. Seaport Marketing: A Census of Australian Seaports. University of Tasmania , Australia , pp. 74-89. Linda Cook, L.C, 2010. LNG will play an Increasingly important role in gas market. EngineerLive. [Online]. Available at:. http://www.engineerlive.com/Oil-and-Gas-Engineer/Interview_Opinon/LNG_will_play_an_increasingly_important_role_in_gas_market/14824/ [Accessed 3 may, 2010] Read More