Creating a Five-Year Business Plan for a Petroleum Provider in the Philippines

Client

A key player in the Philippines’ downstream petroleum industry. 

Glance

Create a comprehensive five-year business plan for a petroleum product provider covering four important business segments, allowing the client to expand its business efficiently in different parts of the Philippines where it was targeting to capture more growth. 

Issue

The client asked YCP to create a five-year business plan for its retail, wholesale, and commercial petroleum businesses, focusing on the following key segments:

This plan included recommendations for expansion within certain areas of the Philippine archipelago, as well as analysis of each of the stakeholders involved in the business, including its major competitors and possible B2C and B2B customers. 

There was also a need to estimate the value that could be created by this expansion, and the overall Return on Investment (ROI) based on several expansion scenarios. 

Approach

YCP has a keen understanding of the different segments within the Oil & Gas industry, having worked with clients from the list of the Top 25 Global Companies in Oil & Gas and petrochemical products. This allowed YCPS Professionals to create a comprehensive three-step process with a detailed methodology for each key area of the client’s business:

The project team also conducted extensive research to validate its expansion hypothesis. The team held over 100 interviews with relevant stakeholders to discover where the client could expand its retail business within the Philippines’ geography, with a detailed understanding of the growth opportunities per segment and related market barriers. 

Part of the analysis was also to recommend which areas the company should prioritize in its B2B expansion. Using different indicators to understand where demand for diesel would come across various sectors such as agriculture, mining, and construction, the team was able to determine where the company could focus its commercial efforts to grow its B2B business. 

Engagement ROI

YCP research, analysis, and advisory allowed the client to select strategic areas for retail expansion, as well as helped determine the right gas station format and size for each. The retail expansion was also supported with new marketing and promotion action plans, and new training and onboarding policies for Dealer Operated Gas Stations (DODO). 

The project also allowed the client to target which fleet companies to go after for B2B diesel product sales. The different presented growth scenarios factored in the risks to pay attention to, especially with gasoline and diesel prices and margins, for this expansion project to create value for the company on a five-year horizon. 

Two years after the project was delivered, the client had opened ~25 new gas stations across the Philippines.