Client Name

Wafi Energy - Shell Licensee

Faculty Advisor

Ms. Madeeha Omer Lakhani

SBS Thought Leadership Areas

Behavioural Studies

SBS Thought Leadership Area Justification

Alignment with the Thought Leadership Area: Behavioral Studies

This Experiential Learning Project (ELP) aligns closely with the thought leadership area of Behavioral Studies because its primary focus was understanding how consumers make decisions regarding fuel purchases and convenience retail usage. Behavioral Studies examines the factors that influence human decision-making, including perceptions, motivations, attitudes, preferences, and responses to external stimuli. Throughout the project, the analysis sought to understand why customers choose specific fuel grades, what drives switching behavior, and what factors influence their interactions with convenience retail stores.

The fuels component of the project particularly reflects behavioral principles through the examination of consumer responses to fuel price changes, inflation, and perceived product value. The analysis found that many consumers view Shell V-Power (SVP) as a discretionary purchase rather than a necessity. During periods of high inflation and rising fuel prices, customers often switched from SVP to Main Grade (MOGAS) to reduce expenditure. This behavior reflects concepts such as price sensitivity and perceived value, which are central topics within consumer behavior research. Conversely, in periods of greater economic stability, consumers were more willing to pay a premium for SVP due to perceived benefits such as better engine performance, fuel quality, and brand trust.

The project also explored behavioral drivers beyond price. Discussions with customers and industry stakeholders suggested that fuel choice is influenced by psychological factors such as confidence in fuel quality, perceptions of engine protection, and trust in the Shell brand. For example, many SVP users associated premium fuel with improved vehicle care and driving experience, even when they could not directly quantify the economic benefits. This demonstrates how consumer perceptions and beliefs shape purchasing decisions beyond purely rational considerations.

Similarly, the convenience retail component of the project was heavily focused on customer behavior. Through store visits, observations, competitor benchmarking, and customer surveys, the project investigated why customers visit convenience stores and what factors influence repeat purchases. The findings showed that convenience, cleanliness, product availability, and service quality were among the strongest motivators for store visits. Conversely, high prices, poor service, and limited product variety discouraged repeat visits. These findings align with behavioral theories that suggest customer experiences and perceptions significantly influence satisfaction and loyalty.

The project contributes to the Behavioral Studies thought leadership area by providing practical insights into consumer decision-making within Pakistan's petroleum retail industry. It demonstrates how economic conditions, product perceptions, customer experience, and brand positioning influence purchasing behavior. Furthermore, the recommendations developed for Shell—including loyalty programs, customer education initiatives, dealership partnerships, and enhanced convenience retail experiences—are all based on influencing consumer behavior to encourage desired outcomes such as premium fuel adoption, customer retention, and increased store visitation.

Therefore, the project not only studies consumer behavior but also applies behavioral insights to solve real business challenges. The findings can help Shell and other organizations design more effective marketing strategies, customer engagement initiatives, and value propositions by understanding the underlying factors that drive consumer choices.

Aligned SDGs

GOAL 9: Industry, Innovation and Infrastructure

Aligned SDGs Justification

Alignment with Sustainable Development Goals (SDGs)

This project aligns with SDG 9: Industry, Innovation and Infrastructure by promoting innovation and efficiency within Pakistan's fuel retail sector. Through the analysis of fuel demand patterns, convenience retail operations, and the emerging EV ecosystem, the project identified opportunities for Shell to improve customer experience, strengthen retail infrastructure, and support the future transition towards sustainable mobility solutions.

The project also aligns with SDG 8: Decent Work and Economic Growth by contributing to the growth and competitiveness of Pakistan's petroleum retail industry. The recommendations developed for fuel retailing, convenience retail expansion, customer engagement, and EV infrastructure can support business growth, improve operational performance, and create economic opportunities across the value chain.

Furthermore, the project supports SDG 12: Responsible Consumption and Production by encouraging more efficient fuel consumption and informed consumer decision-making. The analysis of premium fuel adoption highlighted the importance of customer education regarding fuel quality, vehicle performance, and engine efficiency. Additionally, the exploration of Pakistan's EV ecosystem emphasized the long-term shift towards cleaner and more sustainable transportation alternatives, which can contribute to responsible energy use and reduced environmental impact.

Overall, the project contributes to sustainable industrial development, economic growth, and responsible consumption by combining data-driven insights, customer behavior analysis, and future mobility considerations to support strategic decision-making within the energy and retail sectors.

NDA

No

Abstract

This Experiential Learning Project (ELP) was conducted in collaboration with Shell Pakistan to analyze fuel consumption patterns, convenience retail performance, and emerging mobility opportunities within Pakistan's petroleum retail industry. The project primarily focused on understanding the volume dynamics of Main Grade Fuel (MOGAS) and Shell V-Power (SVP), identifying customer switching behavior, assessing competitor convenience retail offerings, and exploring opportunities for future growth, including developments in Pakistan's electric vehicle (EV) ecosystem.

A mixed-methods approach was adopted, combining quantitative analysis of Shell's station-level fuel sales data with qualitative insights gathered through field visits, customer surveys, stakeholder discussions, and competitor benchmarking. Secondary data from industry reports, regulatory bodies, and market publications was also utilized to provide broader industry context. Various analytical tools, including trend analysis, correlation analysis, customer behavior assessment, and competitive benchmarking frameworks, were employed to generate actionable insights.

The findings revealed that MOGAS remains the primary volume contributor due to its affordability, while SVP serves as a premium product with significant margin and growth potential. Correlation analysis demonstrated that SVP growth occurs through both customer migration from MOGAS and incremental demand generation. The convenience retail analysis highlighted the importance of customer experience, product availability, service quality, and digital payment integration in driving store visitation and loyalty. Competitor benchmarking identified opportunities for Shell Select to strengthen its market position through enhanced partnerships, customer engagement initiatives, and greater retail standardization.

Based on the findings, strategic recommendations were developed to support premium fuel adoption, strengthen convenience retail performance, improve customer retention, and prepare for future mobility trends. Overall, the project provided valuable insights into consumer behavior, retail strategy, and growth opportunities within Pakistan's evolving energy and retail landscape.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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