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ENTE5003 Business Consulting Project

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ENTE5003 Business Consulting Project

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Course Code: ENTE5003
University: De Montfort University

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Country: United Kingdom

Question:
Marketing models and concepts, critically examine the current market position offshore vessel to support oil and gas industry in offshore 
 
 

Answer:
Description of company
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 (Emas Offshore Company, 2017).   
Marketing models and concepts, critically examine the current market position offshore vessel to support oil and gas industry in offshore 
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 (Emas Offshore Company, 2017).
Issues and resolution
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.  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). The marketing of the Emas Offshore must focused on the process of planning, executing, promotion and distribution  of the offshore services to clients to create customers and satisfy them with their optimum needs and demand in market (Bobocea, et al.., 2016). 
Two direct competitors of the Emas Offshore Company

Rivals name

Revenue

 Market share

MMA offshoe

196.5 Million

12%

BW offshore

658.4 Million

13%

(Source: Emas Offshore Company, 2017)
Segmentation and Positioning
Product and offer offshore services- Anchor Handling Towing Supply vessel support services in market.
Targeting for the product

Target Segment

Client Need

Feature and Benefit

International Clients

Low fuel consumptions

Lower down the fuel consummation, reduce the cash outflow of clients and customize its services as per the client’s needs in market

Southeast Asia Market -Domestic Requirement’s

Local registry vessel

Change vessel registry as per local requirement.  To hire more local crew.

Long Term Charter

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

Positioning
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).
Current and aspire position of Emas Offshore company.
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 Emas 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. 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 (Emas Offshore Company, 2017).
SWOT analysis

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

Growth Share Matrix
This growth share matrix assists Emas Offshore Company to formulate and implement the effective strategic growth while offering Anchor handling Towing Supply vessel services in market. This strategic growth plans will be based on the market factors. Currently, company has strong market share and growth of the offshore service industry is high which reflects that company falls under the star category and strategies of company should be formulate accordingly (Gaspar, Hagen, and Erikstad, 2016).
It is the marketing model which assists Emas Offshore Company to identify the existing business issues and future busienss plans. As per the growth Matrix, Company needs to follow the product development strategy if it wants to win over the market. It will not only add value to existing off shore services but also make the business process more unique in market.
Therefore, it could be inferred that Emas Offshore Company firstly needs to develop strong position in market by developing cost leadership and product differentiation strategy. It will not only strengthen the overall product growth. This two main strategy will boost the attraction of its offshore services in market and strengthen the market share of company (Hårde, 2016).
Three Marketing objectives that Emas Offshore Company should pursues for its vessel supporting offshore services
 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
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.
Second year objective
The main second year objective of company is to increase the overall market share by 25% in Southeast Asia by focusing on preventing and reducing the overall cash outflow of the clients and changing the vessel flag in the offshore service program. By second year, aim is to cut the consumption of the Emas 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 changing 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. 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 business, company needs to take local assistance of charter and hire more local competent crew.
Third year objective
The market share of company is highly dependent upon the overall turnover of the business by long term charter based on trust and quality in Corporate Policy Statement on Health, Safety and Environment (HSE).  It is analyzed that company could attract overall market by Promoting the HSE measures and reducing the risk of life of employees and strength safety standards onboard as per client requirement. 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).
Smart
SMART objective of Emas Offshore Company
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 down the fuel consummation, reduce the cash outflow of clients and customize its services as per the client’s needs in market and increase overall share market by 25%.
Measurable- It divulges the measures 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. Emas 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.
Realistic- It focused on the areas which will make sense with the broader business goals of company. It focused on complying the all applicable rules and achieving market share by 25%.
Time bound- It gives the target or time to achieve the set goals and objectives. All set objective will be achieved within 3 years 
Ansoff Matrix
It is strategic planning tool that provides frameworks to managers of Emas offshore to customize its offshore services as per the local clients and lower down the overall cash outflow of clients. It is analyzed that the business operation of Emas is exposed to sevrisks such as adverse weather conditions, oil spills, collisions resulting in damage to and/or loss of vessels and on-board vessel failure. The new Anchor handling Towing Supply vessel service it could strengthen its brand image and increase the overall output.
 
This above given chart reflects that Emas Offshore company by using the install 24 hours online fuel flow meter to focus on standardization of the fleet and efficient management of fuel consumption, it could easily lower down the cost of its production and services.
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 Emas.  
Marketing plan of Emas Offshore Company
4 P’s Marketing Mix
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 (Emas 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).  
People- The crew’s professionalism, care and commitment to quality of service also have impact on fuel consumption. 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- Should establish more local partnership company in 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).
Segmentation consumer market
The segmentation consumer market focuses on the identifying the target markets of the company (Wolfe, Silmon, Plesko. and Miller, 2014).
Geographic
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 Total, Chevron, Petronas, Exxon, Shell and PTTEP who would take the cost effective services from company.
Demographics
Company will focus mainly on the Asia Specific companies which are looking for the cost effective Anchor handling Towing 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).  
Detailed communication plan of company
The detailed communication plan of company will be based on the social media loyalty card and online website channel which could be used to attract clients (Plomaritou, and Papadopoulos, 2017).
Formulating the communication strategies- Firstly, Emas offshore company will focus on using the offline and online promotional channel to communicate with its clients and other stakeholders. It will include use of social media loyalty card and online website channel (Shoham, and Paun, 2015). Emas could use following methods to communicate with clients. 
Arrangement of resources- Emas Offshore Company could raise fund for newly developed reporting process and strengthen its safety measures from its retained earnings and issue of debts in market. It will be the best method to raise funds at least cost of capital (Suksantilap, Leelasantitham, and Glesner, 2017).
Implementing the strategies formulated- It will require hiring of more experienced employees who could manage the oil and gas spill if in case arise in effective manner. Company providing offshore vessel to support oil and gas industry in offshore will be easy after adopting these strategies (Widiatama, Hamid, and Matrono, 2018).
Follow up- The managers of company needs to consistently check the issues and problems faced by employees in their work. It will strengthen the overall effectiveness of newly effective reporting and health and care program in the best interest of stakeholders (Wolfe, et al. 2014). The main focus of company would be to use loyalty card and website dashboard mechanism to attract clients. It needs to communicate all of its developed core competency to its clients to attract them.
These above detailed communication plan has shown that Emas Offshore Company providing offshore vessel to support oil and gas industry could easily mitigate its high complexity busienss issues and strengthen it markeing plan. However, adoption of Corporate Policy Statement on Health, Safety and Environment (HSE) in the business process will strengthen the employees and clients health safety program.
Recommendation
The main recommendation to Emas 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 Emas 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.
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
Bobocea, L., Spiridon, S., Petrescu, L., Gheorghe, C.M. and Purcarea, V.L., 2016. The management of external marketing communication instruments in health care services. Journal of medicine and life, 9(2), p.137.
Boote, D., Galleggioni, F., Colaianni, T., McCartan, S., Thompson, T., Iliopulos, F., McFarlane, I., Rose, D., Verheijden, B., Anderberg, C. and Phalm, H., 2015. design-driven innovation: next generation wind farm mothership for the north SEA.
Borch, O.J. and Batalden, B.M., 2015. Business-process management in high-turbulence environments: the case of the offshore service vessel industry. Maritime Policy & Management, 42(5), pp.481-498.
?irjevskis, A., 2017. Unbundling dynamic capabilities in successful Asian-Pacific shipping companies. Journal of Asia Business Studies, 11(2), pp.113-134.
Croasdale, K., Frederking, R., Jordaan, I. and Noble, P., 2016. Engineering in Canada’s Northern Oceans Research and Strategies for Development.
Crowley, R.A., 2015. Electronic nicotine delivery systems: executive summary of a policy position paper from the American College of Physicians. Annals of internal medicine, 162(8), pp.583-584.
Elisabeth, C., 2016. Norwegian value creation related to development of offshore oil and gas fields (Master’s thesis, University of Stavanger, Norway).
Emas Offshore Company, 2017, Annual report. [Online]., Available at https://emasoffshore.listedcompany.com/, [Accessed 19th, July, 2018].
Filippov, D.V., 2017. Positioning of the Organization in the Target Markets Using the Modified Three Dimensional Matrix Model on the Example of Transport Education Market of the Republic of Sakha (Yakutia) of the Russian Federation. Advanced Science Letters, 23(10), pp.9861-9865.
Gaspar, H.M., Hagen, A. and Erikstad, S.O., 2016. On designing a ship for complex value robustness. Ship Technology Research, 63(1), pp.14-25.
Hambrick, D.C., MacMillan, I.C. and Day, D.L., 2012. Strategic attributes and performance in the BCG matrix—A PIMS-based analysis of industrial product businesses. Academy of Management Journal, 25(3), pp.510-531.
Hårde, H.M., 2016. The competition between Norwegian and Far East yards in the fabrication of offshore platforms and modules (Master’s thesis, University of Stavanger, Norway).
Kaiser, M.J., 2015. Offshore service vessel activity forecast and regulatory modeling in the US Gulf of Mexico, 2012–2017. Marine Policy, 57, pp.132-146. Environmental, D. and Planner, A.Q., 2018. Marine Transportation and the Environment. TR NEWS, 313, p.12.
Kaiser, M.J., 2018. The global offshore pipeline construction service market 2017–Part I. Ships and Offshore Structures, 13(1), pp.65-95.
MacMillan, I.C., Hambrick, D.C. and Day, D.L., 2012. The product portfolio and profitability—a PIMS-based analysis of industrial-product businesses. Academy of Management Journal, 25(4), pp.733-755.
Mikkelsen, L.L., Lützen, M. and Jensen, S., 2016. Energy Efficient Operation of Offshore Supply Vessels–A Framework. In 15th Conference on Computer Applications and Information Technology in the Maritime Industries, COMPIT’16.
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Paterson, J., D’Amico, F., Thies, P.R., Kurt, R.E. and Harrison, G., 2018. Offshore wind installation vessels–A comparative assessment for UK offshore rounds 1 and 2. Ocean Engineering, 148, pp.637-649.
Perreault, W.D., Cannon, J.P. and McCarthy, E.J., 2015. Essentials of marketing: A marketing strategy planning approach. McGraw-Hill Education.
Plomaritou, E. and Papadopoulos, A., 2017. Shipbroking and chartering practice. Informa Law from Routledge.
Shoham, A. and Paun, D., 2015. Small business marketing strategies: A call for customization. In Proceedings of the 1993 Academy of Marketing Science (AMS) Annual Conference(pp. 553-557). Springer, Cham.
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Widiatama, Y., Hamid, A.A. and Matrono, M., 2018. Business Environmental Analysis with Competitive Profile Matrix Method on Market Optimization in Real Estate Company (A Case Study at Tangerang Selatan Area). International Journal of Economics and Financial Issues, 8(4), p.222.
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