COMPANY PROFILE

Gazprom is a global energy company. Its major business lines are geological

exploration, production, transportation, storage, processing and sales of

gas, gas condensate and oil, sales of gas as a vehicle fuel as well as

generation and marketing of heat and electric power. Gazprom views its

mission in reliable, efficient and balanced supply of natural gas, other

energy resources and their derivatives to consumers.

Gazprom holds the world’s largest natural gas reserves. The Company’s

share in the global and Russian gas reserves makes up 17 and 72 per cent

respectively. Gazprom accounts for 12 and 72 per cent of the global and

Russian gas output accordingly. At present, the Company actively

implements large-scale projects aimed at exploiting gas resources of the

Yamal Peninsula, Arctic Shelf, Eastern Siberia and the Far East, as well as

hydrocarbons exploration and production projects abroad.

Gazprom is a reliable supplier of gas to Russian and foreign consumers. The

Company owns the world’s largest gas transmission network – the Unified

Gas Supply System of Russia with the total length of over 168 thousand

kilometers. Gazprom sells more than half of overall produced gas to Russian

consumers and exports gas to more than 30 countries within and beyond

the former Soviet Union.

The Company is among Russia’s five largest oil producers and it is the

largest owner of power generating assets in the country. These assets

account for 15 per cent of the total installed capacity of the national energy

system.

COMPANY HISTORY

Year Event

1993 Pursuant to the Russian Government’s Resolution, in furtherance of the Presidential Decree, Gazprom Gas Concern was reorganized into a Russian Joint Stock Company.

1994 Privatization of Gazprom started.

1995 Gazprom’s first annual General Shareholders Meeting was held.

1998 According to the decision of the General Shareholders Meeting, Gazprom Russian Joint Stock Company was reorganized into Gazprom Open Joint Stock Company.

1999 Gas supply started via the Yamal – Europe gas pipeline running across Russia, Belarus, Poland and Germany.

2001 Gas production was initiated at the Zapolyarnoye – one of the largest fields in the world.

2002 Pursuant to the Russian Government’s Order, Gazprom was tasked with coordinating the Eastern Gas Program execution.

2003 Commercial gas supplies started via Blue Stream.

2005 Gazprom took control over 75.679 per cent of Sibneft that laid the foundation for further development of Gazprom’s oil business (from June 2006 – Gazprom Neft).

2007 The Board of Directors approved Gazprom’s Power Generation Strategy, the implementation of which made the Company a prominent power producer in Russia.

2009 The first Russian LNG plant was commissioned in Sakhalin.

2010 The first segment of the Sakhalin – Khabarovsk – Vladivostok gas transmission system – the first interregional GTS in the Far East – was put into operation.

2012 Gazprom started advancing the Russian NGV fuel market to a completely new level of development.

2013 Oil production started at the Prirazlomnoye field. It is the first Russian project for developing the Arctic shelf.

2014 By the start of the 2014 Winter Olympics in Sochi Gazprom had commissioned a number of key sports and power facilities. The Dzhubga – Lazarevskoye – Sochi gas pipeline and the Adler TPP secured reliable power supply to the city and its vicinities

DEFINATION OF MARKETING MANAGEMENT

Definition of Marketing Management (Theory 2000 – 2011)

Marketing management is the art and science of choosing target markets

and getting, keeping, and growing customers through creating, delivering,

and communicating superior customer value.

Definition of Marketing Management (Theory 2012 – 2015)

Marketing management depends on the size of the business and the

industry in which the business operates. Effective marketing management

will use a company's resources to increase its customer base, improve

customer opinions of the company's products and services, and increase the

company's perceived value.

Theory Related With Company’s Marketing Management

After analyzing Gazprom’s marketing management, we think the definition

of marketing management theory 2012-2015 is mostly relates with Gazprom

marketing management system. As Gazprom is gas explorer and distributer.

Its major business lines are geological exploration, production,

transportation, storage, processing and sales of gas, gas condensate and oil,

sales of gas as a vehicle fuel as well as generation and marketing of heat

and electric power. Gazprom management views its mission in reliable,

efficient and balanced supply of natural gas, other energy resources and

their derivatives to consumers. As their business is developed, they are

advancing the Russian NGV fuel market to a completely a new level of

development. Their marketing management are so effective that they start

oil production at the Prirazlomnoye field. It is the first Russian project for

developing the Arctic shelf.

MISSION-VISION-BUSINESS PLAN-CORPORATE STRATEGY

Mission

The mission of Gazprom is “To provide consumers with high-quality energy

resources, conduct business honestly and responsibly, care for its

employees, and be a leader in efficiency, ensuring long-term and balanced

Company growth.”

Vision

Gazprom vision are:

Maximize oil recovery from the current resource base.

Gain leadership in the North of Yamal-Nenets Autonomous District in

terms of liquid hydrocarbon production.

Create growth centers on the basis of non-conventional reserves.

Develop the Company’s own sales network (sales BUs and retail

business) to sell the maximum possible volume of its refining output

with added value.

Develop new production centres in the Russian Federation beyond the

2020 horizon.

Consolidate efforts and competencies to actively develop outside

Russia.

SWAT ANALYSIS OF GAZPROMStrengths

Dominant market share globally in the natural gas business as a result of having large natural gas and hydrocarbon reserves in Russia, which gives it a huge platform of growth

Sponsorship of sports teams and events gives good visibility to the brand

Products are admired around the globe.

They have major operating margins due to which their customer base is very strong and due to which their

Weaknesses

Old deteriorating pipeline systems which are still in use can lead to operational accidents and other leakages etc., which can impact its finances and revenue

Due to the Russian Government control on their assets, they cannot solve any matter on their own.

The clients have confirmed that they are using low quality products.

The client has confirmed that they are using low quality products

products are admired around the globe.

which cost same as the original products.

Opportunities

Science and Technology agreements (with United Metallurgical company, Severstal, Chelyabinsk Pipe Rolling Plant, Petro Vietnam, VNG, Gasunie) will help it develop newer technologies to reduce operating costs and increase efficiency.

They will grow internationally as well if they spread the pipeline scheme in other countries.

Growth in the market expanding their business internationally.

Gazprom is able to start of this option if it is successful in competently providing streaming pleased to a client which relatively than a per-screening basis

Threats

Governmental Regulation leading to unfavorable pricing policies can result in losses for the company and hamper its growth plans.

Fluctuation in crude oil and natural gas prices due to Grow-politics and other reasons can cause heavy losses to the company

If Gazprom were to drop its ordinary, responsible image, it might not know how to jeep enough of the market to prolong to exist.

They may face some technical problems in their industry and this thing may delay their work.

PESTEL ANALYSIS OF GAZPROM

Political Russian Federation is successor of the

USSR. Taxation – moderate .but one-time

windfall tax is used in Russia on occasions representing a risk.

Governments have great influence on the health, education, and infrastructure.

GAZPROM follows public policy and other legislative priorities that are reviewed regularly.

Economical

Russian economy dependent on the global commodity prices fluctuation.

Annual GDP growth rate 3.5-4% GAZPROM increase Russia

economic level because of Gazprom 50% share are Russian Government holds.

Oil and gas represent 25% GDP; 50% federal budget, 80% of export. 

Social/Socio-cultural

GAZPROM supports various social projects contributing to culture, science etc.

Egalitarianism- mutual support, principal of sharing equal distribution of benefit.

Health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety.

GAZPROM also host the European Karate Cup.

Technological

 GAZPROM and Perm machine builders address equipment upgrading their technology.

Ecological and environmental aspects, such as R&D activity, automation, technology incentives and the rate of technological change.

Nanotechnology is a stumbling priority.

Siemens supply control tools and electrical systems for South Stream’s offshore section of GAZPROM.

Environmental/Ecological

Weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance.

68% of energy produced in the country pollutes the fossil fuels.

Air pollution is the caused for 18% childhood and 10% adult diseases.

Legal

Discrimination law, consumer law, antitrust law, employment law, and health and safety law.

GAZPROM follows Code of Corporate Governance.

Intellectual property –ambiguity of the legislation.

They follow environmental policy 0f ISO 14001.