Attached is the marketing plan. It’s for a make believe product for Chevron Texaco. It’s a robotic pump so that you do not need to pump your gas. For this, I need To Outline the conversion path and include appropriate calls to action, and a business model. Keep it to the point and not over board on information. APA format and citations. Maybe a page long
Explanation & Answer length: 300 Words
– Chevron Corporation RobPump | Product Research MKTG 6320 | Digital Marketing Plan Prepared by: Shelby DuPre, Ashley Dillon and Daniela Ramos October 11th, 2020 RoboPump| Product Research ABSTRACT 2 RoboPump| Product Research HTTPS://OWL.PURDUE.EDU/OWL/RESEARCH _AND_CITATION/APA_STYLE/APA_FORMATT ING_AND_STYLE_GUIDE/GENERAL_FORMAT. HTML 3 RoboPump| Product Research 4 RoboPump| Product Research 5 RoboPump| Product Research 6 RoboPump| Product Research 7 RoboPump| Product Research 8 RoboPump| Product Research 9 RoboPump| Product Research 10 RoboPump| Product Research 11 RoboPump| Product Research 12 RoboPump| Product Research
1. EXECUTIVE SUMMARY A marketing plan helps a company promote its products by making sure that the products are available in the market and meeting customer needs. It requires a company to perform market research to identify the things to include in a marketing plan. Marketing planning needs commitment from the company because it requires funding as well as human resources. When marketing planning is performed effectively, it improves the chances of the company’s success. The company can use the plan to implement changes in marketing whenever threats in the target market are identified. An example of a company that needs a marketing plan is Chevron. It is because the company’s market is in need of new technologies. It is also my proposal for the company to be selling RoboPumps, which will use the customer’s data to automatically perform gas refilling services. A marketing plan can help a company to address this issue by ensuring that customers can access quality products as advertised.
The marketing plan has the following goals in all businesses. First, it focuses on bringing new customers to the company. The marketing plan contains strategies that the company is supposed to implement to improve marketing status. Therefore, these strategies can make marketing more effective, thus convincing new customers. Secondly, a marketing plan helps to identify new opportunities in the market. That is, the marketing plan presents an analysis of the current marketing position, which can indicate the things that are lacking in business as opportunities. 13 RoboPump| Product Research 2. COMPANY ANALYSIS Background information Apart from the benefits that a marketing plan can present to Chevron, it is necessary to analyze the company’s ability to succeed in the market.
Chevron is a multinational company that has been very successful since it was founded. It deals with products like gasoline, natural gas, crude oil, and petrochemicals. The proposed product is RoboPump, which can make the company more successful by utilizing technology to satisfy customers. The target market of Chevron Company is anyone who owns or operates a gasoline or diesel vehicle. It is because the company has invested more in selling gasoline, which is used in both business and personal vehicles. The current brand image of Chevron products is very positive. It is because gasoline from this company is known for its low emission and high performance (Hasan, 2020). Company Objectives Chevron ‘s mission statement is to become an international company that satisfies its customers through better performance and partnership.
The mission has inspired the company toward becoming the world’s most popular energy company (Tang, 2018). The business model of the company is B2B. It is because the company produces and sells its products to other businesses. Therefore, if the company can produce RoboPumps or robotic gasoline pumps, the products can be sold to retailers who sell gasoline to consumers. In conclusion, a marketing plan is crucial for the success of a business. The plan consists of the status of the market and the strategies that the business must adopt. Chevron has a better opportunity to invest in technology because the market to which it provides products is developing. 14 RoboPump| Product Research That is, people need real solutions to the technological problems they face. For example, a RoboPump can be very helpful in reducing the need for human resources in the oil and gas industry. Business Model -drilling & reserves -Whole -process of refining products selling (b2b) -transportation nationally/internationally -retail (B2B) gasoline 15 RoboPump|
Product Research 3. CURRENT MARKETING SITUATION Market & Industry Analysis The oil and gas industry is composed of a series of global companies with a wide network of international operations which handle drilling, processing, retail of oil, petroleum and other fuels. In 2019, the oil industry saw an approximate total revenue of $3.3 trillion dollars. Chevron’s direct competitors include, China Petroleum and Shell, BP and Exxon Mobil. China Petroleum is the leading global company with an annual sales revenue of $437 Billion dollars followed by Chevron with $146 Billion dollars in revenue. While it might seem that oil and gas operations are evenly scattered across the world, Brazil takes the lead with 22.52% of oil company investments.
The United States comes in second with 18.24% followed by China with almost 13% of the world’s oil and gas companies. Industry Trends In the past decade, the oil industry has faced endless volatile threats to the stability of the market. For example, a strong push to innovate in renewable energy solutions, political tensions and trade barriers. These external factors are quickly becoming a serious threat to the industry and leaders must act and innovate ways to adapt to these macroeconomic changes. One popular emerging trend is the effort to find alternative renewable energy solutions. According to (PWC, 2019) by 2040, it is projected for renewable energy to see a 7% growth as the world’s primary energy source along with a decrease in the coal and oil sectors. Oil 16 RoboPump| Product Research companies must be cognizant of the projected market shrink which highlights the importance of portfolio diversification.
A potential solution to securing the financial future of the oil and gas industry is to strategically partner or acquire companies pioneering in renewable energy or charging stations that could be integrated to Chevron’s current retail strategy. An acquisition of this magnitude would ensure a swift transition into the new market that is renewable energy. Value Chain Analysis The Chevron Corporation is an industry expert of successful vertical integration. Due to Chevron’s positioning, they have been able to advance in the industry by a series of acquisitions which set them ahead of the competition as they reduce production costs. Currently, Chevron oversees refining, transportation, production, supply and trading of all oil and gas products. By internalizing these operations, Chevron has been able to invest in other industry sectors such as technology and development. Emerging technologies is actually a main focus for Chervon which has continuously allowed them to deliver cleaner and more efficient oil products in comparison to their competitors.
Customer Segmentation 17 RoboPump| Product Research Chevron conducts business all around the globe, allowing them to have a wide range of customers in many markets. Currently, Chevron has launched operations in 27 countries. In the U.S alone, Chevron operates over 7,800 retail locations and four refineries which can process up to 932,000 barrels of oil per day. Chevron’s target customers are all individuals who are of the ages of 16 – 65+ and either own and or operate a vehicle. The Chevron customer is one who seeks quality fuel in a quick and convenient manner. Chevron has positioned itself as the top tier and lower emissions product in the market and now customers identify the brand as a higher quality brand against the competition. Competitor Analysis Globally Chevron’s top competitors are China Petroleum, Shell, BP and Exxon Mobil Corporation. China Petroleum is by far Chevron’s largest competitor with $437 Billion dollar revenue compared to Chevron’s $146 Billion. In the United States, Chevron lags behind its three top competitors who are each earning between $200 – $420 billion dollars in revenue. On the other hand, one of Chevron’s key strategies has been to place their products as the top quality performer which has earned them that distinction nationally.
Chevron has continued to invest in technology and processes to continuously improve their offerings. While Chevron advances in it’s strategy to gain market share for competitors, there are multiple indicators of new market entrants and various market substitutes. In the last 5 years, electric vehicles have become more popular than ever. We are now seeing the electric vehicle model scaling it to other niches such as trucking and public transportation. As oil and gas growth is expected to decrease in the next 20 years, Chevron must quickly determine a strategy 18 RoboPump| Product Research of growth or it could face a steeper decline in the global. market. They can, for instance, acquire a shale player, a utility, a green energy provider or even an electric car charging facility at a moment’s notice, without having to build these product lines organically. (Corrigan, 2020). Customer Lifecycle Analysis Reach Given Google’s updates on search engines, local search is now the primary way in which customers find Chevron retail locations.
When customers are traveling or simply running low on gas they rely on GPS or Google Maps to suggest nearby fueling locations. Local search along with Chevron’s own station locator tool, are the ways in which customers rely to locate gas stations within the United States. Acquisition As customers visit retail locations, both in market and at the pump, they are constantly targeted during their visit as Chevron showcases other ancillary products the company offers. For example, Chevron with Techron which enhances gasoline to maximize mileage, improve acceleration and lower emissions. Chevron also displays their credit card and gas rewards programs to incentivize new customers to convert. Conversion For Chevron customer conversion can be tracked in various ways. The most important conversion is at the retail level which is basically a consumer pumps gas or shops in the gas station market. Another form of conversion would be customers following Chevron social media 19 RoboPump| Product Research channels like Facebook, Instagram, or YouTube as well as signing up to receive their email newsletter. Retention The best retention strategy Chevron has to their advantage is the element of convenience. Chevron’s wide network of gasoline stations allow users to effortlessly find Chevron stations regardless of their location. Another great retention strategy is the marketing of the Chevron advantage card.
This credit card incentivizes consumers to continue to prioritize Chevron as their preferred gasoline provider. Loyalty The Chevron Advantage credit card is the most important tool Chevron utilizes to cultivate loyal consumers. This credit card offers discounts, savings and fuel points that can be utilized by consumers outside of Chevron gas stations. This is a crucial strategy as it reinforces consumers that by shopping with Chevron they will receive a greater perceived value within each visit. Positioning Statement For individuals who seek the most safe and convenient automatic fueling experience, Chevron is the industry leader that delivers the most revolutionary way to fuel so that customers feel empowered to get back to driving safer, faster and more efficiently. 20 RoboPump| Product Research 4. SWOT ANALYSIS Strengths Global Operations & Reserves Chevron handles manufacturing, production and distribution of oil and gas products in 27 countries.
This has allowed them to place as the second largest oil company per offshore operations. Vertical integration Vertical integration is one of Chevron’s core competencies. Throughout the acquisition of a series of niche companies, Chevron built robust global operations which allowed them to become a world leader. Chevron can capitalize on past experiences to strategically acquire smaller companies which would become a danger to the mission on the brand. Liquidity to Invest Chevron has the ability to tap into their assets and invest in new technologies and operations without hesitation. This is a very favorable position to be in as Chevron can quickly use it’s cash reserves to benchmark or exceed a competition’s strategic efforts. Weaknesses Social Responsibility 21 RoboPump| Product Research The oil and gas industry is not very well perceived globally due to the series of oil spills and the irrefutable harm it has caused to the environment. Many countries around the world are seeking to heavily invest in clean energy to replace nonrenewable resources.
Increasing Operational Cost In the FY2019, Chevron reported an increase in its operating costs as a percentage of sales, which increased to 97.8% from 90.3% in FY2018. As a result, the operating margin decreased to 2.2% in FY2019 from 9.7% in FY2018. Due to increase in operating costs, the company reported an 80% decline in operating income, which fell to US$3,093 million in FY2019 from US$15,451 million in FY2018. (D&B Hoovers, 2020) Opportunities Portfolio Diversification & Renewable Energy In the next few years, Chevron will face the challenge of emerging competitors which will attempt to replace their products with renewable and clean energy. Threats Global Trade Tensions In addition to macro environment threats, trade tensions between countries severely impact the success of oil companies around the world due to multinational operations and investments. Renewable Energy Gaining Market Share Renewable energy is a growing market which will only receive more private and governmental support as the global warming issue heightens.
Oil & Gas Price Fluctuations 22 RoboPump| Product Research Historically crude oil prices have always fluctuated dramatically through the decades. Most notably in 1970, 1998, and 2020. In early 2020, the value of a barrel of crude oil dropped by 35.74 percent. These unpredictable drops in crude oil value can be pretty catastrophic for the industry if extended for a longer period of time. Operations costs would increase while revenue will shrink. Since 1990 we are seeing more frequent dips in oil prices, roughly every 3-5 years. This is a major threat to Chevron and competitors alike. 23 RoboPump| Product Research 5. CURRENT DIGITAL MARKETING EFFORTS Chevron’s foundation is built in its values, which distinguishes it and guides its actions to deliver results. It conducts its business in a socially and environmentally responsible manner, respecting the law and universal human rights to benefit the communities where we work. Being a company with one of the largest and most recognizable brands in its industry, and having a name associated with high quality products and services, Chevron remains very conscious about creating, delivering and communicating superior customer value by their dynamic marketing to its chosen target market.
The company recognizes that “everything matters” with its marketing the customers, employees, other companies, competitors, and society as a whole. These objectives include keeping an alignment with suppliers and partners, having a better understanding about the customer base, so as to target them accordingly, designing sales activities according to the needs and preferences of customers, and keeping an eye on the business strategies and structure of the competitors, and also being aware about their future prospects. Within the company’s website, www.chevron.com, consumers are able to view indepth information on the company’s activities, ongoing projects and corporate organization. No matter what efforts Chevron goes to in order to market its products and services, the company keeps its main focus on campaigns that will echo its image as a socially responsible company.
The company has a social presence on Facebook, Twitter, Instagram, Youtube, LinkedIn, and Email. Its social media accounts focus on sharing information about the company and what they stand for, as well as spreading awareness about current events and issues that are happening in 24 RoboPump| Product Research the world. On the company’s website, there is a link to every social media page, as well as a link to subscribe to Chevron’s email newsletter to receive monthly updates. As far as web pages go amongst Chevron and its competitors, Chevron easily knocks it out of the park. From a user perspective, Chevron’s webpage is extremely appealing and is unlikely to leave customers with any questions on what the company stands for. It has bright colors, graphics, is very well organized and easy to navigate, and its landing page focuses on how the company is trying to better the world in many more ways than just through their products and services. Other competing companies such as Shell, Exxon, and Valero, have websites that are far less personable, busy, and only seem to touch on what their products and services are rather than how they are trying to make a difference.
This strategy allows Chevron to connect on a deeper and human level with consumers. The basis of promotions for Chevron is its corporate social responsibility. The company uses its CSR activities to promote itself through print-ads. The print ads carry sensitive, community friendly messages that express the importance of supporting the local community and helping small businesses. The majority of the company’s acquisition is received from its electronic media across all of its social media pages, as well as its print media found on billboards, magazines, newspapers, etc. All of the company’s TV commercials can be found on its YouTube channel, as well as its webpage. Search ads through search engines are another huge source of acquisition for the company, and these ads consist of strong calls to action, and links to pages varying from information about the company, Chevron Sustainability, Products & Services, to locating the nearest Chevron station and how to contact the company. The ads listed 25 RoboPump| Product Research when the keywords “Chevron”, “Chevron Gas”, “Chevron Station”, etc. are searched through Google, are extremely straightforward, compelling, and easy to navigate. Chevron generates revenue through the sale of various oil and gas products, as well as the provision of related services. The company’s two core operating segments generate revenue both Upstream and Downstream.
The upstream segment comprises revenue derived from the production and sale of crude oil and natural gas, as well as the sale of third-party production of natural gas. The downstream segment is comprised of revenue derived from the refining and marketing of petroleum products and products derived from crude oil, the manufacturing and sale of fuel and lubricant additives, and the transportation and trading of refined products and crude oil. Chevron also generates a small amount of revenue from related insurance operations, real estate activities and technology operations (Cleverism). Chevron Corporation understands that it is in a very competitive market, and that its customers have other alternatives. Therefore, it takes coordination within its teams and with its customers to get the job done correctly. The company builds trusting and mutually beneficial relationships by collaborating with its communities, governments, customers, suppliers and other business partners. The customers also sell petroleum products directly to consumers through its network of service stations, where customers can purchase products in-person. Sales made through Chevron’s direct sales team require a greater degree of consultation, with…
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