...Assignment Report Introduction The following report will examine the 4 elements of the marketing mix and their relevance and importance within the retail petroleum industry. The marketing mix elements are often referred to as the 4 p’s of marketing and are product, price, promotion and place (Solomon, et al. 2011, p. 21). These 4 elements are the building blocks of an effective marketing strategy and are useful in gaining an understanding of marketing in the retail petroleum industry. This report will deal with each of these elements individually and discuss how the macro and micro environments of the retail petroleum industry in Australia affect the way marketers approach these 4 elements. Reference will be made to texts, industry reports, and an internet news article. These references will help to provide a complete understanding of the implications of the marketing mix on this industry. Product A product is ‘a tangible good, service or idea that satisfies consumer or business customer needs through the exchange process’ (Solomon, et al. 2011, p. 11). Products can be referred to as having three levels. These levels are the actual, the core and the augmented product (Solomon, et al. 2011, p. 22). An actual product is the tangible good or service that delivers the desired benefit to a customer. In the retail petroleum industry we have a number of actual products that are offered to customers. Firstly, there is petrol and diesel, as well as related products including LPG...
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...total land area) * Water: large water surface. Fisheries sector employ 6 million people. * Production of minerals: 89 minerals produced. Coal, Iron ore, Manganese ore. * Oil: indian oil meet 25% of the country’s demand. India’s total merchandise trade has increased to 794 in 2012 according to the Export-Import Bank of India. Exports: Indian exportations are moving towards southern countries (Asia and Africa regions). Asia represent almost 40% of the exports whereas Europe has seen a decline in its share (19% in 2012). Nevertheless, UK is the eight biggest export market for the country. In 2012, petroleum products generated 56bn dollars and gems and jewerlly 47. In addition to that, India also export pharma products, transport equipment, machinery and readymade garments. Concerning imports: in 2012 India spent 155bn of dollars for crude petroleum, which represent the biggest importation for the country. India also imports gold and silver, electronic goods and pearls and precious stones. The UK came in at 21st place in 2012. Consumption trends: * More than 40% of the consumers in India are between 20 and 49. Less than 20% are over 49. * The majority of consumers are young Classification of consumers. They could be divided according to different ways. * Upper middle class consumers (need experiences that...
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...STRATEGIC PROFILE ONGC is not only the number one Exploration and Production Company in Asia today, but is also the number 3 E&P Company in the world. It is in the Oil and Gas Drilling and Exploration Industry. In the oil and gas industry ONGC does a lot of research and development as well as refining and marketing. In 2007 they entered the energy field researching and developing alternative fuels. The company is currently recognized as the “Best Oil and Gas Company in Asia”, by the ‘Global Finance’ magazine. In 2007 it was ranked 369th by the Fortune Global 500 list of largest corporations by turnover. This is only a small measure of their performance thus far. By looking at this and many other achievements it is obvious that ONGC is not slowing down any time soon. When taking into account that it is doing business in what will soon be the most populated country in the world, they will only be growing from here. Our analysis will look at the internal and external factors that affect the business. It will show how strong they are in the Oil Industry but also focus on what they need to do to stay competitive. Strategic Profile ONGC is not only the number one Exploration and Production Company in Asia today, but is also the number 3 E&P Company in the world. It is in the Oil and Gas Drilling and Exploration Industry. In the oil and gas industry ONGC does a lot of research and development as well as refining and marketing. In 2007 they entered the energy field...
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...Reliance industries set up a new subsidiary, Reliance Refineries Private Ltd. The subsidiary later changed its name to Reliance Petroleum Limited, and in 1993 launched a public offering, which at that time was India's largest ever IPO. Reliance continued to pioneer financing channels in India. In 1993, for example, the company became the first Indian company to raise capital on the foreign market, through a Global Depositary Receipt(GDR) issue in Luxembtheirg. The company completed a second successful GDR issue in 1994. The company used the new capital in part to expand its petrochemicals wing, building the world's largest multi-feed cracker at the Hazira site. The company also added production plants for mono ethylene glycol, polyethylene, and purified terephthalic acid. The new units launched production in 1998.Reliance's opportunity for entry into petroleum refining came in 1997, when the Indian oil industry reached a state of near collapse. Unable to fund further exploration operations, and lacking the capital to expand its existing production, the government was forced to liberalize the sector. In that year, Reliance announced a plan to build one of the world's largest and most modern petroleum refining complexes in Jamnagar, Gujarat, at a cost of some $6 billion. The government agreed to the plan, and granted the company the right to import petroleum directly, rather than going through Indian Oil, which helped Reliance greatly drive down operating costs. Constructed in record...
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...Business and Society Social Performance of Organizations: British Petroleum (BP) Professor Jeannette Wood Christopher Casselman Week 4 11/02/2014 Social Performance of Organizations My chosen organization is British Petroleum. Nature of the Entity British Petroleum is one of the world’s leading international oil and gas companies. The company offers customers with fuel for transportation, lubricants to keep their engines moving, energy for heat and light, and the petrochemicals used to make everyday items. The company uses highly developed technologies and tried-and-tested solutions to find oil and gas beneath the earth’s surface. Structure of the Entity British Petroleum is present everywhere on the globe. From Europe to Africa and Middle East Asia, the company’s branches are operating effectively. The company has approximately eighty thousand employees, a turnover of $297 billion and operating branches in 100 countries in six continents. (Cambridge University Press, 1982) Types of products The principal activities of British Petroleum are exploration and extraction of natural gas and crude oil; refining the crude oil, marketing the refined product, supply and logistics; as well as production and marketing of petrochemicals. It also has a growing activity in gas and power, and in solar power generation. The group is organised into two major business sectors: i.e. Exploration, production, and Refining & Marketing. Exploration and Production The...
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...You can’t go anywhere in this modern world without being affected by the oil industry. We depend on the oil industry to maintain or comfortable way of living. The oil business is all about finding, extracting, transporting, marketing and refining petroleum products. The main petroleum based product is gasoline. We use gasoline everyday in our vehicles. We count on gasoline to get us to our important destinations, because most of these destinations would be time-consuming and exhausting to reach on foot alone. Petroleum is pretty much vital in many of today’s industries. 40% of America’s energy consumption is oil and 30 billion barrels of oil are used every single year. In 2005, the United States of America consumed 21,930,000 barrels of oil in a single day. The production, distribution, refinement and retailing of petroleum make the petroleum industry the largest profit making industry in the world. In America we pay a gasoline tax for the gasoline we buy. This gasoline tax is collected by the Federal Highway Trust fund and is used to pay for road maintenance and other transportation projects or needs here in our country. Therefore, gasoline tax can be described as a “user’s fee”. You drive on the roads, which increases wear and tear on the roads, so you pay the tax on your gasoline in order to maintain the roads. There has been a tax on gasoline since 1919. The initial tax rate was only 1 cent on the gallon, but today, more then 50 years later, we pay around 18-19...
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...INTRODUCTION This Market Update breakdown the Uk advertise for forecourt retailing, furnishing information and understanding into the quality, size and structure of the industry in the course of recent years from 2008 to 2012, and in addition determining patterns in the commercial center up until the year 2017. It has been assessed that a decay of 1.4% was seen in business sector esteem in 2012, as the economy and fuel costs remained moderately precarious, yet the generally speaking industry seems positive, having recorded a generally speaking development in worth since prerecession 2008. Forecourt retailing blankets two key spaces which offer altogether different administrations to the Uk shopper. Engine fuel retailing straightforwardly serves the particular transport customer, including the offer of diesel and petrol, although the much more modest non-fuel segment includes the trivial items retailed inside the going hand in hand with forecourt outlet, frequently random to the transport business. The engine fuel part has confronted numerous challenging circumstances lately because of the political agitation in universal oil supplier areas, and the issues with supply that this lack of determination has brought on. Government impose climbs and beyond reconciliation rates of supply and interest have initiated fuel costs to rocket lately, which, when joined by budgetary challenges inside the Uk framework, have made the business sector troublesome for the Uk shopper. Worldwide...
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...ARAB ACADEMY FOR SCIENCE & TECHNOLOGY & MARITIME TRANSPORT College of International Transport & Logistics (Cairo) Energy Logistics Management British Petroleum Submitted to: Dr Ahmed Gheith Ashraf Mohamed Fathi Aly 10103283 Ahmed Fouad El-Tohamy 10103131 Ahmed Mohamed Fahmy 10103338 Youssef Roshdy Naguib 7104341 Abdulrahman Adel Youssef 3101363 1. History of BP A British multinational oil and gas company headquartered in London, England. It is the sixth-largest energy company by market capitalization, the fifth-largest company in the world measured by 2012 revenues, and the sixth-largest oil and gas company measured by 2012 production. It is one of the six oil and gas "supermajors". BP is vertically integrated and operates in all areas of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It also has renewable energy activities in biofuelsand wind power. Starting in 1908 with oil found in a rugged part of Persia after a long and difficult search. Since then, discoveries large and small (and sometimes just in the nick of time) have fuelled our progress. Back in England, William D’Arcy was close to despair. He had gambled his considerable fortune on oil, and now he was on the verge of losing it all (both country houses, the mansion on Grosvenor Square). It seemed that the geologists and experts who had wagged their heads encouragingly at him since 1901 had all been...
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...The first oil well (known as The Grand Old Lady) which was discovered by Shell, started with a production of 83 barrels per day (bbls/d) and reached a maximum of 15,000 bbls/d in 1929. There were no other drilling activities elsewhere in Borneo or Peninsular Malaya until the 1950s. [1, 2, 3] Petroleum activities began increasing significantly in 1960s due to the discovery and development of offshore fields in Borneo. The late 1960s saw the beginning of offshore oil exploration in the east coast of Peninsular Malaysia. In the 1970s, some oil fields in Malaysia were producing 90,000 to 99,000 bbls/d. [2] In the early days, foreign oil companies dominated the oil and gas industry in Malaysia with Shell and Esso being the two major players. This was followed by several other foreign companies such as Conoco, Mobil, Aquitaine, Oceanic and Teiseki. The national company, Petronas came on to the scene in 1974. [2] In return for royalties and taxes, the foreign companies were given petroleum concessions by state governments, which accorded them exclusive rights to explore and produce resources. However, exploration licences of these companies ceased to have effect with the passing of the Petroleum Development Act in Parliament in 1974, which granted Petronas ownership and control of the...
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...ENSURING MORE EFFICIENT MARKETING OF PETROLEUM PRODUCT; THE ROLE OF PHYSICAL DISTRIBUTION A Graduate Seminar Paper Submitted to the Department of Marketing Faculty of business administration University of Nigeria Enugu Campus In partial fulfillment of the requirements for the degree Master of Business Administration (MBA) Graduate seminar (MKT 803) By Onah Godfrey C. PG/MBA/12/62555 AUGUST 2014 APPROVAL PAGE This review by: GODFREY. C. ONAH Titled: Ensuring efficient marketing of petroleum product; the role of physical distribution Has been approved for meeting the research requirement for the award of Degree of master of Business Administration (MBA) in Marketing Prof. Ogwo E. Ogwo Date Approved SupervisorProf. Ugwuonah | Date Approved Head, Department of Marketing | INTRODUCTION The marketing of petroleum products in Nigeria has been inefficient and has faced a lot of problems over the years. Therefore this paper examines the role of physical distribution and how it can help to ensure greater efficiency in the marketing of petroleum products. We shall be reviewing the problems of inefficiency in the marketing of petroleum products in Nigeria, the essence or thrust of physical distribution...
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...that there are several main reasons for that: 1. Transition to cleaner diesel fuels made the production more expensive. 2. Global demand for diesel fuel is very high and the refining capacity is tight. 3. There is a difference in terms of on-highway fuel tax between diesel and gasoline. 4. Variability in terms of raw material prices. Another important part of this paper will be the analysis of the competitive landscape in this industry. We will discuss how the competition might be affecting the prices of both types of fuels. The role of costs (supply) Upstream Petroleum industry can be divided in two major segments: upstream and downstream. The value chain for petroleum products consists of the following stages: 1. Prospecting and Extraction 2. Downstream Refining or Importing of Road Fuel 3. Wholesale Transportation and Bulk sales of refined products 4. Retailing The main determinants for prices are cost of crude oil, refining, taxation and profit margin. While different sources report different percentage contributions from each of the above factors, we can still determine the similarities and analyse their effect on the price (Anderson and Kahya, 2014; Policy Roundtables: Competition in Road Fuel, 2013): In the upstream sector, the main factor affecting the price of diesel and petrol is the price of crude oil. The figures above demonstrate that the contribution into the price by crude oil is uneven...
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...oil was generally under $25. In 2003 the price reached $30 per barrel and by 2005 was up to $60. It peaked in 2008 at almost $150 per barrel and has been causing great economic hardship for societies across the globe. There are several reasons for the increase such as declines in petroleum reserves, tension in the Middle-East and oil price speculation. (Wikipedia.com) The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of twelve developing countries including Saudi Arabia, Nigeria and Venezuela, who pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations. It secures a steady income for its members while ensuring an efficient and reliable supply of petroleum to consuming nations and a fair return for investors in the petroleum industry. OPEC’s influence has been criticized since it became effective in determining production and prices. (Wikipedia) Even though this paper focuses on gasoline prices, it is impossible for me to speak about gas and not also mention oil. Economies around the world are very dependent on oil which is vital to providing petroleum for motor vehicles as well as generating electricity. A decade ago, when oil was in the region $25 per barrel, gasoline was very affordable and so consumers did not feel the need to conserve or change their behavioral patterns. However, now that prices are high, societies have been...
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...Canada economic system is also referred to mixed economy because it involves both private and public ownership of resources, and good and services are produced and provided by both the government and privately owned companies. Canada’s system is often referred to a capitalist system because we allow and also encourage the private ownership of capital, that is, the plants, factories, equipment, and so forth that are used to produce and provide goods and services. India has a Mixed Market economy meaning it uses a variety of government regulation to control the economy, but relies primarily on market that forces to set prices and demand and uses general principles of capitalism. India is having a mixed economic structure. It is neither fully capitalist nor fully socialistic. It is neither completely an open system nor a fully free market system. The key variables in the choice of this economic design are: people's welfare, equitable distribution of wealth and income, a logical link between employment and incomes, restraining monopolies and concentration of power and wealth, and supporting health and education sectors through government subsidies and political strength. India has a mixed economy. Half of India's workers rely on agriculture, the signature of a traditional economy. One third of its workers are employed by the services industry, which contributes two-thirds of India's output. The productivity of this segment is made possible by India's increasing move...
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...terms of size,” he hastened to add, lest “dinosaur” be read to mean something else. The occasion was the IPO of the re-born Reliance Petroleum (RPL). Reliance moves to merge Petroleum with itself Three years hence and with RPLs new 29-million-tonne refinery commissioned, a dinosaur is indeed in the making through the merger of Reliance Petroleum (RPL) and RIL. The combined entity will boast a refining capacity of 62 million tonnes (1.24 million barrels a day) and status as India’s largest company in terms of revenue and earnings. DéjÀ vu The proposed merger fits in perfectly with the style perfected by the Reliance group in the last three decades and it is a feeling of déjÀ vu for those following the company and its fortunes. The Reliance Industries we now know is an amalgam of several companies that were floated for executing specific projects and then merged with the parent. Thus, you had Reliance Petrochemicals Ltd., Reliance Polyethylene Ltd. and Reliance Polypropylene Ltd., all of which were floated to execute specific petrochemical projects in Hazira in the late 1980s and early 1990s but later merged with Reliance Industries. RPL merger inevitable and expected: Experts The original Reliance Petroleum, which made its IPO in 1993, was merged with Reliance Industries in 2002. And now comes the merger of the re-born Reliance Petroleum with RIL. The classic strategy of the group has been to execute and commission large, capital-intensive projects on the balance-sheet...
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...elements that constitute the makeup of the overall marketing mix and then applies them to the practical real world workings of the Australian automotive fuel retailing industry – retail petrol outlets. The four elements making up the overall marketing mix include product, price, place and promotion. Collectively they are referred to as the four P’s of marketing as their significance makes them the very foundations and building blocks of marketing. This report affords each individual element its own discussion section opening with the definition of the discussed element before delving deeper into what each element brings to the overall marketing mix and ultimately applying them to the retail petrol industry. MARKETING MIX PRODUCT A product is ‘anything tangible or intangible that satisfies the consumer or business customers’ needs as a result of an exchange process’. A product can be physical goods, services, ideas, people or places. A product has three layers beginning with the core consisting of the benefits that the product provides for consumers (or business customers), the actual product, that is the physical good or the delivered service that supplies the desired benefit and the augmented product which is the ‘actual product plus other supporting features’ (Solomon, et al. 2011, p. 181-185). In the automotive fuel retailing industry, Convey (2011, p. 11) found that ‘retail sales of petrol and diesel, together with related products, such as LPG, oil and kerosene, account for...
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