Entrepreneurship in the Downstream Petroleum
Industries
By Labi Francis Onuformi
Department of Gas Engineering University of Portharcourt,PMB 5323 Portharcourt- Nigeria
•INTRODUCTION
•FOCUS
•BUSINESS PLAN
•CONCLUSION
•Entrepreneurship in the downstream petroleum
industries has to do with the refining, marketing
and distribution of petroleum products to satisfy
customer needs. Every enterprise seeks to make
profit by the exchange of value which in the case of
the downstream sector of the petroleum industries
are oils and lubricants such as compressor oils,
industrial oils, Grease, Hydraulic fluids, power
engine oils, turbine oils and hydraulic fluids which
add value to customers.
Our focus is going to be on the marketing and
distribution of these products to customers through
the use of the internet. In 2004 the number of
internet users was 910,060,180 and in 2014 the
number increased to 2,925,249, 355 and at least
35% use petroleum products from live stats. This
shows that petroleum products can be marketed
with ease to these users.
The first step is to have an online oil store e.g.
www.francisoilproducts.com (examples of online
stores are jumia and konga but deal in electronics,
clothing’s and other accessories) and put all our oil
products (e.g. oando oil) online.. The online store
will have a payment gateway such as paypal,
mastercard and others for customers to pay online
to get their products delivered to their door post by
delivery and shipping companies. These oil store
will be serving the whole world since live stats
shows that 48.4% of Asians use the internet , 21.8%
Americans , 19% Europeans and 9.6% Africans use
the internet.
COST OF SET UP FOR START UP
1. THE WEBSITE 20,000
2. PRODUCT 100,000
3. PAYMENT GATE WAY 150,000
4. STAFF SALARY (4 PERSONS) 100,000
5. DISTRIBUTION COST 100,000
TOTAL
470,000
OUR TARGET MARKET WILL BE FOR THOSE
WHO STAY IN PORTHARCOURT GRA FOR EASE OF
DELIVERY OF THESE PRODUCTS AND WE BELIEVE
WE WOULD GROW TO SERVICE THE WHOLE
WORLD BY HOME DELIVERY.
QUESTIONS AN ENTREPRENEUR ASK HIMSELF.
•WHERE IS THE MONEY
•WHO IS WITH THE MONEY
•HOW DO WE REACH HIM
•WHAT DO WE SAY WHEN WE REACH
HIM
The Internet answers the 3rd Question
The site will also attract, convert visitors to
customers and also retain and grow them by having
a membership portal for all the customers’ .These
customers will be given a monthly newsletter of our
products. The site will also be promoted by using
the giant social network Facebook since 1,320
billion persons use Facebook.
CONCLUSION
Bill Gates said “ Any Business that does not
have an online presence will not thrive in this
Generation, that is why the online oil store will
be an opportunity for graduates to start up
since it has a very cost of starting up. It took
radio broadcasters 38 years to reach an
audience of 50 million, television 13 years,
and the Internet just four
THANK
YOU
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