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
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BP OIL
12
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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
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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.
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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
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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
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BP OIL
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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.
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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:
.
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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:
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Figure 3
This shows the 2011 yearend financial performance for BP. Retrieved from:
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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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