Marketing Plan, strategy

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Marketing Plan

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Utilize all headings in (Attached) Sample Marketing Plan SWOT

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EXECUTIVE SUMMARY This marketing plan proposal introduces the need and solution for J.C. Penney Company. It will identify the purpose for the program by outlining the actual problems, background, proposed solutions, and specific steps needed in order to implement these programs. PROBLEM J.C. Penney declining sales is a representation it has presumably failed to identify its target market. JCP has announced it plans to close over 20 stores spanning about 13 states. Retail overall is generally strong and JCP will need to articulate a strategy to regain their competitive niche in the market. BACKGROUND JCP founded in 1902, operated under the key principle—"treat other as they would like to be treated.” They maintained a diversified supplier base, acquiring a plethora of merchandise from domestic and global suppliers. In the early 1990s, they were one of the pioneers of e-commerce establishing jcp.com. JCP was a leading retail chain maintaining a competitive edge over competitors like Kohl’s, Nordstrom, and Macy’s. However, over the years JCP has struggled to maintain that competitive advantage and misplaced the identity of its core customer. PROPOSED SOLUTION (Redesign Digital and Physical presence-Omnichannel Strategy) J.C. Penney has struggled for several years with defining their business identity. To compete, redesign physical and digital presence. Reinvent Omnichannel Strategy- an aggressive marketing strategy attracting target market and connect needs, wants, and desires regaining a strong footprint in the retail industry they once led. Key objective to avoid bankruptcy and define a plan, attract, maintain, and become a dominant force in the retail market place. J.C. Penney can achieve this by reminding and convincing consumers they are the best option to shop. Running head: BP OIL 1 BP Oil: Marketing to Repair the Damage Author’s Name: University: Date: BP OIL 2 BP Oil: Marketing to Repair the Damage Overview: British Petroleum’s (known as BP) discovery of oil in the Gulf of Mexico in 2009 brought them to the top three of oil producers in the United States, reaching a goal of 300,000 barrels of oil per day (Reed, 2009). This discovery, although very profitable to BP, also lead to the Deepwater Horizon Catastrophe on April 20, 2010 where a drilling rig exploded off the coast of Louisiana. It took BP three months to be able to seal the pipeline while excessive amounts of oil were gushing into the Gulf’s water. Luc Bardin, BP’s Chief Marketing Officer conceded that the company had a difficult road ahead to repair the damage done by the spill in the Golf; for the first time the company is not at the top of its market (Durrani, 2010). BP is a company that has marketed green initiative and positive environmental impact; the company had “flooded the media with advertisements showing solar panels, windmills and waving fields of grass without a drop of oil in sight” for nearly ten-years prior to the spill (Daley, 2010, p. 73). Green marketing for BP pulled blinders onto consumer’s eyes, shielding them from the image of it being one of the largest oil producers in the United States. The green marketing initiative for BP Oil was very successful. BP’s white gloves were oil soaked as soon as some of the consequences of the oil spill began to emerge in the media and this significantly damaged its brand image with consumers. This environmental disaster brought a lot of negative publicity to BP and the company faced heavy criticism from both consumers and the government (Harlow, 2011). BP’s social responsibility and ethics have come into question, many debating whether it is ethical for a company to market themselves green if in fact they are not (Balmer, 2011). Green marketing is no longer going to be enough for BP to sustain and to regain the public’s trust. BP needs a new BP OIL 3 marketing plan that will focus on gaining back some of what was lost in the tragic Deepwater Horizon Catastrophe. BP needs a plan that will not hide behind green marketing or ignore past mistakes. The focus of this marketing plan is to repair BP’s brand image, regain the trust of consumers, and provide some innovation to keep pace with changing technology. Situational Analysis BP Oil is still working on recovering from the Deepwater Horizon oil spill in 2010. Consumers have a bad taste in their mouth from the spill and the brand image needs to be revamped with new positive associations. BP Oil has been in the public eye a great deal since the oil spill. Although the image portrayed by the media has not made BP look like a shining star, the publicity has kept its name in consumer’s minds. Luckily the company is still strong, but marketing needs to take the spotlight away from the actual spill (and its negative effects) and find a different positive focus for the company to aid in complete revival within the market. BP will distinguish itself from other oil companies by showing that it is not going to hide from past mistakes; BP will continue research on long-term effects of the spill and by focusing on ways to improve safety and risk out on the oil rigs and acting to do so. BP Oil will continue to be committed to giving aid to help restore the environment and economy of the Gulf. The company no longer needs to hang its head in shame over what happened, it needs to show consumers that it is acting to ensure that something like this does not happen again. Additionally, BP will also be moving forward with innovative technology to find cleaner fuel options and to provide consumers with energy alternatives. (Durrani, 2010) Market Summary BP Oil knows a lot of information about its target markets. The company knows what types of consumer or company attributes make a good customer. BP uses this information to find BP OIL 4 out what consumers are looking for in an oil company and also discover what needs to be done to regain trust. BP focuses on a global target market who utilizes fuel and energy. (Balmer, 2011) Market Demographics The profile for the typical consumer is anyone who uses fuel or energy. Geographics. BP oil is a global company that targets people of every geographic location. The company is already present on every continent except for Antarctica (BP). Demographics. According to a Rasmussen poll, demographics that favored BP the most are white males, those over the age of 65, Conservatives, and Republicans (See Figure 1) (Nelson, 2010). Marketing will continue to strengthen the bond with these demographics, but it will also focus on building a relationship with other demographics that do not currently support BP Oil. The company plans to strengthen support from a wider variety of races, liberals, and those in the age group of 16 - 26. Market Needs BP Oil is providing the market with petroleum products at competitive prices that will help consumers get where they are going (BP). Additionally, BP Oil is working on the forefront of creating new sustainable energy technology to bring consumers with the newest energy resources on the market. The company is responding to consumer’s needs by its efforts to: enhancing safety and risk management, supporting long-term oil spill research, providing consumers a competitive priced quality product, and using innovative technology to find a sustainable energy for years to come. (BP) Market Trends BP will continue to push innovation and will keep up with the current market trends by adding Electric Vehicle Charging Ports at all its gasoline stations. Additionally, BP plans to have a low carbon fuel available at its stations as early as 2014 (BP). One of the big marketing pushes will be towards those with electric cars and desire for low carbon fuels – the potential for growth BP OIL 5 through this is quite large, especially if BP is the only company with these things available to consumers on the market. Market Growth There will not be an increase in demand for petroleum products; oil, especially gasoline has been heavily used for a long time. There is however, potential for market share growth because BP Oil has the capability to win back consumers that have strayed away from the brand. Additionally, as consumers purchase more alternative fuel vehicles, there will be strong market growth in the products that make those cars run (low-carbon fuel, electric, etc) and BP will be there to provide these products to consumers. SWOT The following SWOT analysis pinpoints the Strengths and Weaknesses of the company as well as the Opportunities and Threats the BP may have to face. Strengths. 1. R&D skills and leadership, heavily engaged in innovation 2. Has brand recognition 3. Executive Board determined to maintain position of one of the top three oil producers globally. 4. Ability to manage strategic change 5. Good financial management, able to financially handle fines and costs of cleanup. Weaknesses. 1. The negative associations with the brand image due to the Deepwater Horizon Oil spill. 2. This was not the first incident for the company where proper precautions had not taken place BP OIL 6 3. Need to set and enforce new safety standards in its workplace. 4. Loss of customer goodwill 5. Poor materials management system Opportunities. 1. Widen target market 2. New and innovative technology 3. Make profitable new acquisitions of new oil reserves 4. Apply R&D skills in new areas of production (BP). Threats. 1. Increase in industry competition 2. New forms of industry competition 3. Rise in new and substitute products 4. Accidental oil spills 5. Rising labor costs Analysis of SWOT SO Strategies – Leverage strengths to maximize opportunities – attacking strategy S2/O1+W1 Use brand recognition to widen target market. Tactics include additional promotional advertising; increase payback for use of credit card S1/O2 BP is already engaged in innovation. If BP adds more money and effort to R&D innovation, the company will have new innovations. S5/O3 Invest in new oil reserves with the money that BP has managed to save WO Strategies – Counter weaknesses through exploiting opportunities – build strengths for attacking strategy W2/O2 BP has experienced other oil spills. With improved technology, BP can improve its chances of not having another oil spill, and being able to help other companies if they experience a spill. W5/O4 BP’s poor materials management system meant that tools that were needed onsite BP OIL 7 to mitigate the spill were not available immediately. With R&D skills in new areas of production, the management system can be improved. ST Strategies – Leverage strengths to minimize threat – defensive strategy S5/T1+T5 Because BP has excellent financial management, it can be prepared for rising labor costs, and increased industry competition by raising salaries for employees and staff now. S4/T3+T4 BP has demonstrated its ability to manage strategic change. If there are future oil spills, the company has plans for dealing with media and alleviating the mechanical problems. Further when new and substitute products appear on the market, BP can organize a team of experts to deal with this situation. A tactic that can be implemented immediately is to create teams now to deal with simulations of difficulties. WT Strategies – Counter weaknesses and threats – build strength for defensive strategy. W3/T4 BP must improve its safety regulations to improve record of accidental spills. Tactics include forming a corporate wide strategic safety commission, it can begin to address the possibility of future spills. Product Offering BP Oil offers several products to consumers: natural gas, biofuels, oil, liquid petroleum (for homes), chemicals (for making clothing, plastic, detergent, etc), and energy (BP). The company’s diverse portfolios help keep the company strong and enables them find ways to meet most consumer’s needs. Keys to Success BP’s has several keys to success. First, BP is ahead of other oil/energy producers in creating new technology to create a cost-effective, sustainable bio fuel and energy source. This will offer consumers something that the competition cannot provide them with. BP needs to ensure that a major spill does not happen again in the future and repair the brand image with consumers. Critical Issues BP Oil is well established as a company; however, it needs to repair its brand image due to the impact that the Deepwater Horizon oil had on it. This is the biggest issue the company will BP OIL face in the next year. Additionally, the company needs to take appropriate steps to ensure that another catastrophic spill does not happen again. Marketing Objectives The main marketing objectives are: bringing back consumers that strayed after the Deepwater Horizon Oil Spill, maintain growth each quarter, and increase positive brand image for the company. Marketing Program BP Oil’s marketing program will use the following approaches to: pricing, distribution, advertising, and customer service. • Pricing. The pricing will be based on competitive market value of barrel price. Additionally, for innovative energy options and alternative fuel, BP is going to price them so that they are economical for the average user to enable more consumers to be able to purchase the new technology. In addition, BP will increase the payback to consumer’s percentage on its credit card from one percent to three percent. This is intended to attract new customer’s. • Distribution. The gasoline and alternative fuels at BP stations will be direct to consumers, however, other products like home fuels or solar panels will distributed through other retailers. The company can open more re-fueling stations, including stations that will refuel electric vehicles. • Advertising and Promotion. Several different methods will be used for the advertising efforts. BP will utilize television, social media, magazines, and its website for the promotion of its products. Specifically improving its positive presence on Facebook, requesting more likes from customers, may improve the current poor image of BP. BP 8 BP OIL 9 may want to work with Public Broadcasting to produce a documentary of efforts taken to clean up oil spills. • Customer Service. BP will have an excellent customer service team; the goal will be for low wait time and very knowledgeable staff providing a quick response to any questions or issues. Marketing Research BP has a well-recognized brand. This will be a good advantage because the company does not have to start from scratch with its promotional approaches– the consumer already knows the company and the message in the advertising will stick more clearly in their mind. (Thompson et al, 2010) This will enable the consumer to create new positive brand associations at a more rapid pace. The other positive thing that BP has going for it is that there is a great need within the market for alternative energy options. There are a couple of options being studied that are either too pricy or they don’t go far enough without a charge. With BP being at the forefront of alternative energy research with a low carbon fuel option in 2014 they are moving back to the top of its market. Financials This section will offer a financial overview of BP related to company health. BP will address marketing costs, cash flow forecast, and its financials year end 2011. Financial Objectives The company’s financial objectives are: to increase cash flow by 50% by the end of 2014 (only half of this increase should be from an end in the Deepwater Horizon payments), continue investing in alternative energy research, and continue to be committed to the Gulf restoration projects. BP OIL 10 Year end 2011 The year end of 2011 ended much better than 2010 due to the oil spill. Although the company had not fully recovered from the Deepwater Horizon oil spill it showed signs of improvement since a lot of the payments and costs that were associated with the spill had ended. See Figure 3. Marketing Costs The marketing costs for BP immediately after the oil spill soared to $100 Million per year (BP). BP plans to reduce this to $75 Million for 2013 and then down to $40 Million for 2014. There was an increased need to marketing and public relations after the spill. Currently the company needs to continue an aggressive marketing campaign to re-build a positive brand image. After re-established the company will taper the marketing funds back to normal. Cash Flow Forecast BP forecasts that its cash flow will increase up to 50% by 2014 (BP). This is because both the trust payments to the Deepwater Horizon spill will be complete and because the company expects its sales to increase by 25% (See Figure 4). The company will plan to use half of this for growth and the other half for research. Controls The purpose for BP’s marketing plan is to serve as a guide for the company to keep them on track with its goals. The company will frequently monitor: positive brand recognition with consumers, company revenue both quarterly and annually, company expenses both quarterly and annually, progress towards the new low carbon fuel being market ready in 2014, use of Electric Vehicle Charging Ports at stations, and research and design in new technology. Implementation BP OIL 11 The marketing plan discusses many important elements to help the company reach its goals. All of them need to be implemented in a timely and efficient manner, beginning with marketing to consumers and installing the Electric Charging Ports at all stations. Marketing Organization Luc Bardin is BP’s Chief Marketing Officer and will oversee the marketing team through the implementation of this plan, its strategies, and tactics. Contingency Planning Difficulties and Risks. One of the biggest difficulties that the company will need to overcome is the negative brand image that they received from the oil spill. Additionally, the other risks are that consumers will not be interested in its low carbon gasoline or other alternative fuels/energy supplies after BP has invested millions into them. Worst-Case Risks. Worst case the company may not be able to fully repair its brand image and will not re-gain all its consumers back and that its alternative energy research was a waste. Conclusion and Recommendations – You need to complete Xmxnxmxnx xnxhn xnsmxns xnenx, Thndks ckisn skicl skrekch sketch etndmsk snd sne andosn fineeenn dimen. Because xnendmc snmsc snems and smend, it is recommended that: 1. Rsmednllgbiendkcie. Evencieschec xme xne csslos sjenckd snd eklwme ckendci.di disnels cklmen. Ckns snkdl xmxmx xmxmx xmxmxm xmxm xmxm, (Citation) 2. Dsk xmcmx xmcndmxl emdncksd sken. “Ceidnhts skelejc cklsle ejcekst sld smce, and ckenskld ckc skens skjend smcns snsnsn dnf dnf wnfffss cnbe” (Citation, page 43). 3. Kssksksken. Djdjdjdn dsdjskd snd snekc snekd. 4. Rdsps.skdjlksldm cncn xnxnxnx xnx xnxnxnx xhxhxhx dndndnd sdsdsds ererere BP OIL 12 mwmwmw sdj sdj sduuke snjud and sjsjsn, Since it is evident that BP Oil xmxmxm xmx xmxmxmx sjsjsudt to tself, it is vital that the company xmxnv and xmxndns. Because xksnekdkcn snsn der eneksi skilk sksks andkgland sekd, it can be that skckcks. Therefore, sksksncksl.skcisl xmxmxmx xmxm xmxmxmxnxmxnx xnxmxnb xnb xnxmn xnenc sence. With these steps, BP Oil can xkemck snsns snd shshs. Rthed xhxhx dgd shen shejd cshe9s dsecer snskdic and cidnsiot. Finally, cksss sndmd sns sne sndem sjen sjelwns sjejdjc siret sfor all. Klstedn sisk sks sidicmk wdjske skdicn smsms smsm cecde. References Balmer, J., Powell, S., & Greyser, S. (2011). Explicating Ethical Corporate Marketing. Insights from the BP Deepwater Horizon Catastrophe: The Ethical Brand that Exploded and then Imploded. Journal of Business Ethics, 102(1), 1-14. BP. (2014.). BP Homepage. Retrieved from: Daley, J. (2010). Green Fallout. Entrepreneur, 38(8), 72-75. Durrani, A. (2010). BP faces up to brand damage. Marketing (00253650), 1. Harlow, W., Brantley, B. C., & Harlow, R. (2011). BP initial image repair strategies after the Deepwater Horizon spill. Public Relations Review, 37(1), 80-83. Morrissey, B. (2010). BP Gets Aggressive. Adweek, 51(25), 4. Nelson, J. (2010). Who are the 22% of Americans who view BP favorably? Retrieved from: Reed, S. (2009). BP keeps rolling the dice. Businessweek, (4146), 46-49. Thompson, Arthur, Strickland III, A.J., Gamble, John Crafting and Executing Strategy, McGraw Hill, New York, 2010. Why BP's brand can now move on. (2011). Marketing (00253650), 27. BP OIL 13 Figure 1 Note. This was data from Rasmussen’s poll on how many people in the United States still favor BP after the Deepwater Horizon oil spill. Nelson (2010) reviewed the information to generate what demographics were associated with the continued support of BP. Graph was retrieved from: . BP OIL 14 Figure 2 The figure shows an estimate for the world’s population increase in the year 2030 and how much of an increase in the amount of energy required to sustain the additional people. Graph was retrieved from: BP OIL 15 Figure 3 This shows the 2011 yearend financial performance for BP. Retrieved from: BP OIL 16 Figure 4 This is the estimate for the operating cash flow for 2014. Retrieved from: Running head: BP OIL 1 BP Oil: Marketing to Repair the Damage Author’s Name: University: Date: BP OIL 2 BP Oil: Marketing to Repair the Damage Overview: British Petroleum’s (known as BP) discovery of oil in the Gulf of Mexico in 2009 brought them to the top three of oil producers in the United States, reaching a goal of 300,000 barrels of oil per day (Reed, 2009). This discovery, although very profitable to BP, also lead to the Deepwater Horizon Catastrophe on April 20, 2010 where a drilling rig exploded off the coast of Louisiana. It took BP three months to be able to seal the pipeline while excessive amounts of oil were gushing into the Gulf’s water. Luc Bardin, BP’s Chief Marketing Officer conceded that the company had a difficult road ahead to repair the damage done by the spill in the Golf; for the first time the company is not at the top of its market (Durrani, 2010). BP is a company that has marketed green initiative and positive environmental impact; the company had “flooded the media with advertisements showing solar panels, windmills and waving fields of grass without a drop of oil in sight” for nearly ten-years prior to the spill (Daley, 2010, p. 73). Green marketing for BP pulled blinders onto consumer’s eyes, shielding them from the image of it being one of the largest oil producers in the United States. The green marketing initiative for BP Oil was very successful. BP’s white gloves were oil soaked as soon as some of the consequences of the oil spill began to emerge in the media and this significantly damaged its brand image with consumers. This environmental disaster brought a lot of negative publicity to BP and the company faced heavy criticism from both consumers and the government (Harlow, 2011). BP’s social responsibility and ethics have come into question, many debating whether it is ethical for a company to market themselves green if in fact they are not (Balmer, 2011). Green marketing is no longer going to be enough for BP to sustain and to regain the public’s trust. BP needs a new BP OIL 3 marketing plan that will focus on gaining back some of what was lost in the tragic Deepwater Horizon Catastrophe. BP needs a plan that will not hide behind green marketing or ignore past mistakes. The focus of this marketing plan is to repair BP’s brand image, regain the trust of consumers, and provide some innovation to keep pace with changing technology. Situational Analysis BP Oil is still working on recovering from the Deepwater Horizon oil spill in 2010. Consumers have a bad taste in their mouth from the spill and the brand image needs to be revamped with new positive associations. BP Oil has been in the public eye a great deal since the oil spill. Although the image portrayed by the media has not made BP look like a shining star, the publicity has kept its name in consumer’s minds. Luckily the company is still strong, but marketing needs to take the spotlight away from the actual spill (and its negative effects) and find a different positive focus for the company to aid in complete revival within the market. BP will distinguish itself from other oil companies by showing that it is not going to hide from past mistakes; BP will continue research on long-term effects of the spill and by focusing on ways to improve safety and risk out on the oil rigs and acting to do so. BP Oil will continue to be committed to giving aid to help restore the environment and economy of the Gulf. The company no longer needs to hang its head in shame over what happened, it needs to show consumers that it is acting to ensure that something like this does not happen again. Additionally, BP will also be moving forward with innovative technology to find cleaner fuel options and to provide consumers with energy alternatives. (Durrani, 2010) Market Summary BP Oil knows a lot of information about its target markets. The company knows what types of consumer or company attributes make a good customer. BP uses this information to find BP OIL 4 out what consumers are looking for in an oil company and also discover what needs to be done to regain trust. BP focuses on a global target market who utilizes fuel and energy. (Balmer, 2011) Market Demographics The profile for the typical consumer is anyone who uses fuel or energy. Geographics. BP oil is a global company that targets people of every geographic location. The company is already present on every continent except for Antarctica (BP). Demographics. According to a Rasmussen poll, demographics that favored BP the most are white males, those over the age of 65, Conservatives, and Republicans (See Figure 1) (Nelson, 2010). Marketing will continue to strengthen the bond with these demographics, but it will also focus on building a relationship with other demographics that do not currently support BP Oil. The company plans to strengthen support from a wider variety of races, liberals, and those in the age group of 16 - 26. Market Needs BP Oil is providing the market with petroleum products at competitive prices that will help consumers get where they are going (BP). Additionally, BP Oil is working on the forefront of creating new sustainable energy technology to bring consumers with the newest energy resources on the market. The company is responding to consumer’s needs by its efforts to: enhancing safety and risk management, supporting long-term oil spill research, providing consumers a competitive priced quality product, and using innovative technology to find a sustainable energy for years to come. (BP) Market Trends BP will continue to push innovation and will keep up with the current market trends by adding Electric Vehicle Charging Ports at all its gasoline stations. Additionally, BP plans to have a low carbon fuel available at its stations as early as 2014 (BP). One of the big marketing pushes will be towards those with electric cars and desire for low carbon fuels – the potential for growth BP OIL 5 through this is quite large, especially if BP is the only company with these things available to consumers on the market. Market Growth There will not be an increase in demand for petroleum products; oil, especially gasoline has been heavily used for a long time. There is however, potential for market share growth because BP Oil has the capability to win back consumers that have strayed away from the brand. Additionally, as consumers purchase more alternative fuel vehicles, there will be strong market growth in the products that make those cars run (low-carbon fuel, electric, etc) and BP will be there to provide these products to consumers. SWOT The following SWOT analysis pinpoints the Strengths and Weaknesses of the company as well as the Opportunities and Threats the BP may have to face. Strengths. 1. R&D skills and leadership, heavily engaged in innovation 2. Has brand recognition 3. Executive Board determined to maintain position of one of the top three oil producers globally. 4. Ability to manage strategic change 5. Good financial management, able to financially handle fines and costs of cleanup. Weaknesses. 1. The negative associations with the brand image due to the Deepwater Horizon Oil spill. 2. This was not the first incident for the company where proper precautions had not taken place BP OIL 6 3. Need to set and enforce new safety standards in its workplace. 4. Loss of customer goodwill 5. Poor materials management system Opportunities. 1. Widen target market 2. New and innovative technology 3. Make profitable new acquisitions of new oil reserves 4. Apply R&D skills in new areas of production (BP). Threats. 1. Increase in industry competition 2. New forms of industry competition 3. Rise in new and substitute products 4. Accidental oil spills 5. Rising labor costs Analysis of SWOT SO Strategies – Leverage strengths to maximize opportunities – attacking strategy S2/O1+W1 Use brand recognition to widen target market. Tactics include additional promotional advertising; increase payback for use of credit card S1/O2 BP is already engaged in innovation. If BP adds more money and effort to R&D innovation, the company will have new innovations. S5/O3 Invest in new oil reserves with the money that BP has managed to save WO Strategies – Counter weaknesses through exploiting opportunities – build strengths for attacking strategy W2/O2 BP has experienced other oil spills. With improved technology, BP can improve its chances of not having another oil spill, and being able to help other companies if they experience a spill. W5/O4 BP’s poor materials management system meant that tools that were needed onsite BP OIL 7 to mitigate the spill were not available immediately. With R&D skills in new areas of production, the management system can be improved. ST Strategies – Leverage strengths to minimize threat – defensive strategy S5/T1+T5 Because BP has excellent financial management, it can be prepared for rising labor costs, and increased industry competition by raising salaries for employees and staff now. S4/T3+T4 BP has demonstrated its ability to manage strategic change. If there are future oil spills, the company has plans for dealing with media and alleviating the mechanical problems. Further when new and substitute products appear on the market, BP can organize a team of experts to deal with this situation. A tactic that can be implemented immediately is to create teams now to deal with simulations of difficulties. WT Strategies – Counter weaknesses and threats – build strength for defensive strategy. W3/T4 BP must improve its safety regulations to improve record of accidental spills. Tactics include forming a corporate wide strategic safety commission, it can begin to address the possibility of future spills. Product Offering BP Oil offers several products to consumers: natural gas, biofuels, oil, liquid petroleum (for homes), chemicals (for making clothing, plastic, detergent, etc), and energy (BP). The company’s diverse portfolios help keep the company strong and enables them find ways to meet most consumer’s needs. Keys to Success BP’s has several keys to success. First, BP is ahead of other oil/energy producers in creating new technology to create a cost-effective, sustainable bio fuel and energy source. This will offer consumers something that the competition cannot provide them with. BP needs to ensure that a major spill does not happen again in the future and repair the brand image with consumers. Critical Issues BP Oil is well established as a company; however, it needs to repair its brand image due to the impact that the Deepwater Horizon oil had on it. This is the biggest issue the company will BP OIL face in the next year. Additionally, the company needs to take appropriate steps to ensure that another catastrophic spill does not happen again. Marketing Objectives The main marketing objectives are: bringing back consumers that strayed after the Deepwater Horizon Oil Spill, maintain growth each quarter, and increase positive brand image for the company. Marketing Program BP Oil’s marketing program will use the following approaches to: pricing, distribution, advertising, and customer service. • Pricing. The pricing will be based on competitive market value of barrel price. Additionally, for innovative energy options and alternative fuel, BP is going to price them so that they are economical for the average user to enable more consumers to be able to purchase the new technology. In addition, BP will increase the payback to consumer’s percentage on its credit card from one percent to three percent. This is intended to attract new customer’s. • Distribution. The gasoline and alternative fuels at BP stations will be direct to consumers, however, other products like home fuels or solar panels will distributed through other retailers. The company can open more re-fueling stations, including stations that will refuel electric vehicles. • Advertising and Promotion. Several different methods will be used for the advertising efforts. BP will utilize television, social media, magazines, and its website for the promotion of its products. Specifically improving its positive presence on Facebook, requesting more likes from customers, may improve the current poor image of BP. BP 8 BP OIL 9 may want to work with Public Broadcasting to produce a documentary of efforts taken to clean up oil spills. • Customer Service. BP will have an excellent customer service team; the goal will be for low wait time and very knowledgeable staff providing a quick response to any questions or issues. Marketing Research BP has a well-recognized brand. This will be a good advantage because the company does not have to start from scratch with its promotional approaches– the consumer already knows the company and the message in the advertising will stick more clearly in their mind. (Thompson et al, 2010) This will enable the consumer to create new positive brand associations at a more rapid pace. The other positive thing that BP has going for it is that there is a great need within the market for alternative energy options. There are a couple of options being studied that are either too pricy or they don’t go far enough without a charge. With BP being at the forefront of alternative energy research with a low carbon fuel option in 2014 they are moving back to the top of its market. Financials This section will offer a financial overview of BP related to company health. BP will address marketing costs, cash flow forecast, and its financials year end 2011. Financial Objectives The company’s financial objectives are: to increase cash flow by 50% by the end of 2014 (only half of this increase should be from an end in the Deepwater Horizon payments), continue investing in alternative energy research, and continue to be committed to the Gulf restoration projects. BP OIL 10 Year end 2011 The year end of 2011 ended much better than 2010 due to the oil spill. Although the company had not fully recovered from the Deepwater Horizon oil spill it showed signs of improvement since a lot of the payments and costs that were associated with the spill had ended. See Figure 3. Marketing Costs The marketing costs for BP immediately after the oil spill soared to $100 Million per year (BP). BP plans to reduce this to $75 Million for 2013 and then down to $40 Million for 2014. There was an increased need to marketing and public relations after the spill. Currently the company needs to continue an aggressive marketing campaign to re-build a positive brand image. After re-established the company will taper the marketing funds back to normal. Cash Flow Forecast BP forecasts that its cash flow will increase up to 50% by 2014 (BP). This is because both the trust payments to the Deepwater Horizon spill will be complete and because the company expects its sales to increase by 25% (See Figure 4). The company will plan to use half of this for growth and the other half for research. Controls The purpose for BP’s marketing plan is to serve as a guide for the company to keep them on track with its goals. The company will frequently monitor: positive brand recognition with consumers, company revenue both quarterly and annually, company expenses both quarterly and annually, progress towards the new low carbon fuel being market ready in 2014, use of Electric Vehicle Charging Ports at stations, and research and design in new technology. Implementation BP OIL 11 The marketing plan discusses many important elements to help the company reach its goals. All of them need to be implemented in a timely and efficient manner, beginning with marketing to consumers and installing the Electric Charging Ports at all stations. Marketing Organization Luc Bardin is BP’s Chief Marketing Officer and will oversee the marketing team through the implementation of this plan, its strategies, and tactics. Contingency Planning Difficulties and Risks. One of the biggest difficulties that the company will need to overcome is the negative brand image that they received from the oil spill. Additionally, the other risks are that consumers will not be interested in its low carbon gasoline or other alternative fuels/energy supplies after BP has invested millions into them. Worst-Case Risks. Worst case the company may not be able to fully repair its brand image and will not re-gain all its consumers back and that its alternative energy research was a waste. Conclusion and Recommendations – You need to complete Xmxnxmxnx xnxhn xnsmxns xnenx, Thndks ckisn skicl skrekch sketch etndmsk snd sne andosn fineeenn dimen. Because xnendmc snmsc snems and smend, it is recommended that: 1. Rsmednllgbiendkcie. Evencieschec xme xne csslos sjenckd snd eklwme ckendci.di disnels cklmen. Ckns snkdl xmxmx xmxmx xmxmxm xmxm xmxm, (Citation) 2. Dsk xmcmx xmcndmxl emdncksd sken. “Ceidnhts skelejc cklsle ejcekst sld smce, and ckenskld ckc skens skjend smcns snsnsn dnf dnf wnfffss cnbe” (Citation, page 43). 3. Kssksksken. Djdjdjdn dsdjskd snd snekc snekd. 4. Rdsps.skdjlksldm cncn xnxnxnx xnx xnxnxnx xhxhxhx dndndnd sdsdsds ererere BP OIL 12 mwmwmw sdj sdj sduuke snjud and sjsjsn, Since it is evident that BP Oil xmxmxm xmx xmxmxmx sjsjsudt to tself, it is vital that the company xmxnv and xmxndns. Because xksnekdkcn snsn der eneksi skilk sksks andkgland sekd, it can be that skckcks. Therefore, sksksncksl.skcisl xmxmxmx xmxm xmxmxmxnxmxnx xnxmxnb xnb xnxmn xnenc sence. With these steps, BP Oil can xkemck snsns snd shshs. Rthed xhxhx dgd shen shejd cshe9s dsecer snskdic and cidnsiot. Finally, cksss sndmd sns sne sndem sjen sjelwns sjejdjc siret sfor all. Klstedn sisk sks sidicmk wdjske skdicn smsms smsm cecde. References Balmer, J., Powell, S., & Greyser, S. (2011). Explicating Ethical Corporate Marketing. Insights from the BP Deepwater Horizon Catastrophe: The Ethical Brand that Exploded and then Imploded. Journal of Business Ethics, 102(1), 1-14. BP. (2014.). BP Homepage. Retrieved from: Daley, J. (2010). Green Fallout. Entrepreneur, 38(8), 72-75. Durrani, A. (2010). BP faces up to brand damage. Marketing (00253650), 1. Harlow, W., Brantley, B. C., & Harlow, R. (2011). BP initial image repair strategies after the Deepwater Horizon spill. Public Relations Review, 37(1), 80-83. Morrissey, B. (2010). BP Gets Aggressive. Adweek, 51(25), 4. Nelson, J. (2010). Who are the 22% of Americans who view BP favorably? Retrieved from: Reed, S. (2009). BP keeps rolling the dice. Businessweek, (4146), 46-49. Thompson, Arthur, Strickland III, A.J., Gamble, John Crafting and Executing Strategy, McGraw Hill, New York, 2010. Why BP's brand can now move on. (2011). Marketing (00253650), 27. BP OIL 13 Figure 1 Note. This was data from Rasmussen’s poll on how many people in the United States still favor BP after the Deepwater Horizon oil spill. Nelson (2010) reviewed the information to generate what demographics were associated with the continued support of BP. Graph was retrieved from: . BP OIL 14 Figure 2 The figure shows an estimate for the world’s population increase in the year 2030 and how much of an increase in the amount of energy required to sustain the additional people. Graph was retrieved from: BP OIL 15 Figure 3 This shows the 2011 yearend financial performance for BP. Retrieved from: BP OIL 16 Figure 4 This is the estimate for the operating cash flow for 2014. Retrieved from: EXECUTIVE SUMMARY This marketing plan proposal introduces the need and solution for J.C. Penney Company. It will identify the purpose for the program by outlining the actual problems, background, proposed solutions, and specific steps needed in order to implement these programs. PROBLEM J.C. Penney declining sales is a representation it has presumably failed to identify its target market. JCP has announced it plans to close over 20 stores spanning about 13 states. Retail overall is generally strong and JCP will need to articulate a strategy to regain their competitive niche in the market. BACKGROUND JCP founded in 1902, operated under the key principle—"treat other as they would like to be treated.” They maintained a diversified supplier base, acquiring a plethora of merchandise from domestic and global suppliers. In the early 1990s, they were one of the pioneers of e-commerce establishing jcp.com. JCP was a leading retail chain maintaining a competitive edge over competitors like Kohl’s, Nordstrom, and Macy’s. However, over the years JCP has struggled to maintain that competitive advantage and misplaced the identity of its core customer. PROPOSED SOLUTION (Redesign Digital and Physical presence-Omnichannel Strategy) J.C. Penney has struggled for several years with defining their business identity. To compete, redesign physical and digital presence. Reinvent Omnichannel Strategy- an aggressive marketing strategy attracting target market and connect needs, wants, and desires regaining a strong footprint in the retail industry they once led. Key objective to avoid bankruptcy and define a plan, attract, maintain, and become a dominant force in the retail market place. J.C. Penney can achieve this by reminding and convincing consumers they are the best option to shop.
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Running head: J.C. PENNEY

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J.C. Penney’s Marketing Plan to Regain a Dominant Position
Student Name
University
Course Title
Date

J.C. PENNEY

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Summary

J.C. Penney one of the most successful and oldest retail company in America is facing
an important financial crisis since 2012. Due to a change in its pricing strategy, the company’s
sales have started decreasing since 2012 and this phenomenon is still ongoing. The company
tried to bring back the old-fashioned pricing method but it seems that customers have already
moved to competitors because, in spite of this movement, J.C. Penney’s sales are still
decreasing. This issue has to be addressed by a new marketing plan aimed at increasing sales
by hyping customers’ emotions and creating a buzz around the company. In the American
retail industry, J.C. Penney is a well-known retailer with more than 100 years of operation.
Unfortunately, this strength is not sufficient to reverse the tendency because the company’s is
facing a very difficult financial condition, which limits its ability to fight back the threat of
competitors. Luckily, J.C. Penney has some opportunities represented by an increase in
customers’ disposable income and the acquisition of small retailers. To stand this difficult
context J.C. Penney must fight on the financial and commercial battlefields. Indeed, the
company needs to increase its business operations while finding the best strategy to retain and
attract customers. Since J.C. Penney’s public image is not that modern, the company must
adopt a marketing strategy aimed at giving a much more modern and innovative perspective
of itself. The use of technology is the best way to meet this objective since it has always been
something that raises up curiosity and attract people. In doing so, J.C. Penney can equip its
stores with the latest available technologies and partner with tech firms in order to distribute
their latest innovations. In this way, the company will focus its advertising efforts on its new
technological identity with the aim of attracting new customers during the promotions
organized in all stores. These promotions oriented towards technology will create a buzz
around the company and turn its public image into the most advanced technological retailer of
America.

J.C. PENNEY

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J.C. Penney’s Marketing Plan to Regain a Dominant Position
Overview

J.C. Penney is a Retail Company founded in 1902 by James Cash Penney. Since its
creation, the company experienced several changes ranging from changes in denomination to
the development of new product lines. J.C. Penney sells home furniture, clothes, jewellery,
and cosmetics between others. The company sells its products via physical retail stores and its
website, jcpenney.com. J.C. Penney is one of the biggest and oldest American retail company.
In 2017, the company was operating 1,013 stores in the United States, Alaska, and Puerto
Rico. Among these stores, 417 were directly owned by J.C. Penney. The company’s
headquarters are located in Plano, Texas, and in 2017, it was employing around 95,000
individuals (Kruger, 2014). J.C. Penney was incorporated in 2002. This process was highly
applauded by several investors and financial analysts who considered that it was an excellent
initiative to strengthen the leading position of the company. By the beginning of 2012, one
stock of J.C. Penney was sold for more than $40 (Wolf, 2018).
In spite of its wonderful and strong history in the American retailing industry, J.C.
Penney is facing serious challenges since the first quarter of the year 2012. What happened
this year is that, in 2012, the managing board of J.C. Penney appointed Ron Johnson, as the
new Chief Executive Officer. Ron Johnson was the pioneer of the concept of Apple Retail
Stores and Apple’s former senior vice president of retail operations. At J.C. Penney, Ron
Johnson decided to change the pricing policy to propose 40 percent lower prices (Tokosh,
2019). Unfortunately, this measure has adversely impacted the company’s sales and triggered
what will further become a financial nightmare. J.C. Penney’s stores across America began to
empty and the company’s sales started rapidly decreasing (Reinglod et al., 2014).
Situation Analysis

J.C. PENNEY

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Ron Johnson’s strategy eradicated completely what made the strength, the profitability
and the good reputation of the J.C. Penney. Before introducing this strategy, the company was
making most of its sales through coupons and limited offers. For instance, during special
offers, some articles were discounted of half of their original price, for only three hours.
Furthermore, the sale coupons granted customers some specific advantages and privileges
such as getting special gifts or not queuing during special offers (Lim & Winkenbach, 2019).
Although J.C Penney’s prices were deemed high by some business analysts and competitors,
the company’s sales technique were good because, over time, it hyped customers’ emotions
and created a buzz. For instance, it was not uncommon to see American teenagers or adults
discussing the techniques they employed to get better prices and articles (Wolf, 2018). By
installing steady ...


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