Subject category:
Marketing
Published in:
2001
Length: 20 pages
Data source: Field research
Notes: To maximise their effectiveness, colour items should be printed in colour.
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Abstract
The case is set in Paraguay where Shell have a long history retailing petrol and lubricants through their service station network. In 1990, Shell Paraguay purchased a liquid petroleum gas (LPG) business comprised of a filling plant and a selling operation to domestic customers who bought LPG to cook with in a country where there was no piped natural gas. Sales to customers were made either direct from the filling plant, from service stations or through small grocery stores. In 1990 the market had slumped to commodity status delivering margins that were never going to be acceptable to the Shell Group. The new GM at Shell Gas, arriving in 1992 has to decide what to do with the business. He and his team, who know nothing about selling LPG, decide to try to turn it around. The case describes the marketing strategy they pursued. The case is presented in four parts which allows for learning to be taken from each stage in the turn-around process. This case contains colour exhibits.
About
Abstract
The case is set in Paraguay where Shell have a long history retailing petrol and lubricants through their service station network. In 1990, Shell Paraguay purchased a liquid petroleum gas (LPG) business comprised of a filling plant and a selling operation to domestic customers who bought LPG to cook with in a country where there was no piped natural gas. Sales to customers were made either direct from the filling plant, from service stations or through small grocery stores. In 1990 the market had slumped to commodity status delivering margins that were never going to be acceptable to the Shell Group. The new GM at Shell Gas, arriving in 1992 has to decide what to do with the business. He and his team, who know nothing about selling LPG, decide to try to turn it around. The case describes the marketing strategy they pursued. The case is presented in four parts which allows for learning to be taken from each stage in the turn-around process. This case contains colour exhibits.