Option #1: Comprehensive International Marketing Plan – Product

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IMPORTANT NOTE: THE ASSIGNMENT IS COMPLETED! I JUST NEED THE CORRECTIONS BELOW MADE.

Please make sure to include all of the headings that are listed in the syllabus (and include those in your final portfolio).
This is off to a good start.
Please make sure to review the rubric posted in Module 8 before you make your final submission.

How will you pay for your marketing strategy? Metrics? How will you evaluate whether or not it is effective? What about surveys?

Tactics should be short term and strategy should be long-term goals.
Please make sure to identify any tactics and strategies clearly in your paper.
Please include a timeline with your implementation plan.

Running Head: ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobilADVANCE DUCATI 1 ExxonMobil International Marketing for ExxonMobil Advance Ducati Dillion Pitcock Dr. Aubry Colorado State University December 22, 2017 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI Company and Product ExxonMobil is an American Company dealing in petrochemicals, petroleum, oil and natural gas. It has its headquarters in Irving, Texas USA. It is the eight largest publicly owned oil and gas companies and the largest oil company in terms of revenues. Its operations and services are present in over 70 countries globally with over 73,500 employees. It revenue as at 2016 was US$218.6 Billion with an operating income of US$7.969 Billion. The net profit of the company was US$7.84 Billion with total assets amounting to US$411.2 Billion and total equity amounting to US$330.3 Billion. And total equity of US$167.3Billion The Company has launched a new product, the ExxonMobil Advance Ducati, which is new motorcycle oil that has been specifically developed for Ducati motorbikes. The Company is listed in NYSE as XOM and is also listed as a component of DJIA, S&P 100 and S&P 500 Components (ExxonMobil, 2017). o Objectives and Goals Overview of Netherlands The Netherlands was founded by Julius Caesar initially inhabited by the Germans before the Spanish occupied it. Today, Amsterdam is the capital city of Netherlands and its national language is Dutch. It relies on the Euro and USD as the national currency and has an ethnic composition comprising of the Dutch as the majority and the Indonesian, Turks, Caribbean and other ethnic communities forming the remaining population (Birkinshaw, 2013). The country has a total population of 16,856,620 million people and a GDP of US$798,106 Billion. The per capita of the country stands at US$47,365. The political system of the country is ruled by a constitutional monarchy. Amsterdam, Roternderm, The Hague, and Utrecht are among the four major cities with a population of 800,000, 600,000, 500,000 and 300000 respectively. 2 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI The oil and gas sector is a well-developed sector in the country contributing up to 34% to the country’s economy with oil, natural gas, petrochemicals and other petroleum products forming the main products. The Netherlands is among the world’s largest exporter of petroleum products amounting to 0.25 of the world's export. The country has well established and developed green genomics and greenhouse horticultural practices (Doole & Lowe, 2013). The country has managed to attract more investors in the oil and gas market through an effective supply chain and logistics network. Oil refinery, mining, chemicals, food processing and metal work form the major secondary industry in the Netherlands. The BarbantStad are of Netherlands was voted as the most innovative industrial area in Europe. The tertiary industry of the country comprises of telecommunication, transpiration, financial services and logistics and distribution services. The economy of Netherlands is 78.2% dominated by the service sector that generates 80.71% of the country’s GDP although the government contributes 19.8% of this GDP. However, the country has embarked on diversification strategies that will see its education, health, oil and gas and infrastructure sectors open up new investment opportunities (Inkpen & Moffett, 2014). It has come up with development goals that are aligned with the UN sustainable development goals which have led to the prioritization of capital investment to create jobs for its citizens in the oil sector. Its major focus is the implementation of tax reforms that will be used to encourage consumer spending as a way of achieving sustainable economic growth. It faces political stability with a constitutional monarchy and a decentralized state system of government. Its foreign exchange earner is export of agricultural products and mineral oils. It has however initiated large infrastructural projects to open up more economic growth opportunities. 3 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI • Situation Analysis o PEST Analysis Political Netherlands economy is internationalized with less government interference and open trade investment policies. It has opened up investments, commercial and economic policies to spur economic growth in the oil sector. It has a liberal oil and gas industry which has been deregulated to allow more investors to venture into the industry. As a result, the political environment of Netherlands supports the investment in oil and gas sector (Inkpen & Moffett, 2014). The country has implemented legal tax reforms that have seen it charge 20% as corporation tax and 22% as income tax. It has the lowest rate of crimes and a strong drug policy that's has seen most of its prison remain empty. Investors in the oil and gas sector get tax and capital incentives to encourage more investment in the oil and gas sector. Economy The country's inflation rate is 1.1% with an unemployment rate of 8%. The labor force in the country's oil and gas sector stands at 8.35 million with the service sector taking up the majority, followed by the industries and the agricultural sector taking the smallest portion. The Netherlands is the Europe gateway due to its geographical location that has opened it for international markets. Thus, the country’s economy is ripe for more investments in oil and gas sector since it is stables and experiences less financial and economic crisis. Social Cultural The country has a high standard of living with the lowest level of poverty in the world. The per capita income stands at $47,210 and literacy level as high as 99%. Equally, the mortality rate of the country stands at 8.8/1000 people. The staple food of the country fresh fruits and 4 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI vegetables while its rats and culture remain the most famous due to the highest number of museums in the country. Many people in Netherlands love motorcycles both for private and sporting activities. This has increased the potential of the countries motorcycle oil market. Technology The Netherlands has high technological advancements in oil and gas exploration that enables investors to undertake cost-effective production of petroleum products. It has developed land reclamation and rehabilitation techniques that led to the recovery of 2/3 of former oil mines for settlement and farming. Its oil and gas exploration technologies have led to sustainable practices and use of alternative source of energy. The country has invested so much resource in research and development on the sustainable use of water scarce energy and petroleum product. Sustainable energy has seen the country produce its electricity from wind and biomass. It was the first country to introduce the first world solar road. Environment The country has implemented a waste management policy that has seen sustainable practices being implemented in all sectors of the country’s economy. Inland navigation, industries, aviation, and traffic contribute to 260mn metric tonnes of CO2 emissions in the country. Conservation of major ecosystem has seen the country’s biodiversity conserved and protected. The endangered and rare species have been protected due to the reliance on renewable sources of energy. o SWOT Analysis Strengths ExxonMobil has a strong market position in the energy industry with both downstream and upstream operations in more than 70 countries globally. The ExxonMobil Advance Ducati 5 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI is a new oil brand that has given it a strong market position and bargaining power in the global energy industry. The company has implemented vertical integration that has seen it engage in the crude oil business, natural gas production and exploration in the upstream market and marketing the refined oil products in the downstream market. As a result, the company has a competitive advantage in controlling the price of oil. In addition, ExxonMobil has a strong financial and technological ability that increases its capability in the exploration of oil and natural gas. It uses advanced technology including geophysical data that is airborne to increase its efficiency in oil and gas explorations. It has invested a lot of resources to build a strong R&D to reduce its carbon footprint and explore the ExxonMobil Advance Ducati in a cost-effective manner. As a result, it has managed to reduce its operational costs and achieve competitive advantage in the global market. Weaknesses ExxonMobil has faced numerous allegations of violating corruption laws which have led to huge fines that affect the goodwill and brand image of the company. The company is also facing the threat of a growing debt level that is becoming almost unbearable for the company. This has resulted in an increase in the financial obligation which has adversely affected the company's financial stability. It has also been accused of violating human rights through oil spill (Noreng, 2014). The quality and standard of the ExxonMobil Advance Ducati product are also facing challenges due to the large-scale nature of its operations. Opportunities The company has implemented partnerships that will see it undertake Prelude Floating Liquidified Natural Gas Technology to access gas fields in the offshore which is difficult for its competitors to manage. This will lead to an increase in its productivity of the ExxonMobil Advance Ducati by 5.3 million tons of liquid petroleum annually. The demand for the 6 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI ExxonMobil Advance Ducati has also increased globally, with cleaner energy being a major demand. All these factors have led to an increase in the market potential of the company’s products (Noreng, 2014). The strategic partnership with BG increased its market dominance in the motorcycle oil market. It also has sufficient technology, supply chain networks and financial resources that will see it undertake international expansion easily to exploit new markets in the Netherlands for its ExxonMobil Advance Ducati product. The strong supply chain network has improved the delivery of the ExxonMobil Advance Ducati product, thus increasing its market dominance in the Netherlands. Threats The issue of climate change is a major concern for the sustainability and financial viability of the company. With increasing demand and use of the ExxonMobil Advance Ducati, the rate of carbon dioxide emissions also increases, thus making it a responsibility of the company to find solutions to the emissions (Noreng, 2014). The ExxonMobil Advance Ducati product is susceptible to volatility revolving around politics since it is a major subject of discussion in the world. Thus, it faces a major threat of political victimization should such issues arise. Strict environmental regulation and government interventions may curtail its efforts to undertake oil explorations and the effective production of the ExxonMobil Advance Ducati (Birkinshaw, 2013). Weak industrial refining conditions and economic instability have reduced the profitability of the product over the past years. The rising cost of producing oil coupled with the fluctuating crude oil process also threated its profitability due to increased production costs and reduced profits. The oil and natural gas industry are facing stiff competition that the ExxonMobil Advance Ducati product sometimes finds it difficult to cope with. 7 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI Competitive and Industry Analysis The oil and natural gas industry have limited players due to the high cost of technology, skills, and expertise required to explore and produce the ExxonMobil Advance Ducati products. This has led to many entry barriers for new entrants and in case a company manages to enter the industry, it has to struggle to achieve a high volume of productions and sales (Doole & Lowe, 2013). Thus, the intensity of competition in the oil and natural gas industry is very high. Among the major competitors of ExxonMobil include the Z energy, Royal Dutch Shell Plc. British Petroleum, and OMP. These companies have mastered the art of collaborating with unrelated companies to increase their supply chain and distribution networks and out-compete their rivals in the industry. They also have alternative products for the Ducati motorbikes which will pose a threat to the ExxonMobil Advance Ducati oil in the Netherlands market. Industry Analysis The industry faces constraint such as stringent regulation by various governments, regulations, high costs of capital for investments, fluctuating crude oil prices, high interest and exchange rate, increasing the cost of raw material, limited sources of non-renewable energy (Noreng, 2014). As a result, the industry has restricted the growth of the companies’ necessitating the need to implement backward integrations. As a result, the ExxonMobil Ducati Oil will face challenges in the Netherlands market. Market Entry Mode and Why It Was Selected Since the company seeks to exploit a foreign market with a new product in the Netherlands, it is evident that its internationalization strategy will be very successful. For the ExxonMobil Advance Ducati product, it will apply the wholly owned subsidiary as the most 8 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI appropriate market entry strategy for the new product yet to be launched in Netherlands (Noreng, 2014). This entry mode is preferred because it will endear well with the legal systems of Netherlands, political stability, monetary and fiscal policies and well as respect to the human rights in the country. The wholly owned subsidiary market entry mode will also give the company an opportunity to build strong supply chain networks in the Netherlands markets early. It will be regarded as an insider company and will gain market knowledge enabling it to have maximum control over the product and its customers. This mode also provides the company with ease of setting operating process and facing fewer risks of losing intellectual property rights because it will remain in control of security and data protocol. This mode of market entry will give the company cost synergy and control over all assets. Marketing Strategies o Product The ExxonMobil Advance Ducati product has been diversified into three main categories to cater to the needs of its customers. At the upstream product diversification, the company undertakes natural gas and oil exploration to identify new and potential oil and gas reserves for its production (Stevens & Markaz, 2014).The second product portfolio is the new energies and integrated gas which involve refining the oil to obtain the ExxonMobil Advance Ducati product that its ships into the market. At the downstream of the product, diversification is the crude oil that the company refines to obtain a wide range of products including diesel, aviation fuel, gasoline, heating oil, lubricants, sulfur, marine fuel, ExxonMobil Advance Ducati, bitumen and LNG used for transportation (Stevens & Markaz, 2014). The major product mix in ExxonMobil product 9 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI portfolio serves domestic, industrial and transportation use while the lubricants are mainly used by industrial machinery, personal cars, and transportation vehicle. Its aviation fuel is used in more than 40 countries while the LPG is used for retail and commercial purposes. o Price Duct ExxonMobil Sets the price of its products in a competitive range depending on the nature of the product. The ExxonMobil Advance Ducati oil is used for commercial purposes and is therefore competitively priced depending on the market trends. The prevailing inflation rates and taxation in the Netherlands also determine the price of this product in the Netherlands. Global economic condition as well as the level of production by OPEC countries also detre4isns the price charge don its products (John, 2014). The price of natural gas varies from one geographical region to another depending on the demand and supply while the refined product is priced deepening in the price of oil and gas. This is an indicator that ExxonMobil has no control over the prices of the ExxonMobil Advance Ducati oil and has to rely on the prevailing market conditions as well as government policies and regulations to set its prices o Place ExxonMobil will set its stores and outlets in strategic locations within Netherland and a well-organized supply chain, logistics and distribution network to ensure that the ExxonMobil advance Ducati oil is available to its customers all over the world enabling due to the timely, effective and efficient delivery of the products (Czinkota & Ronkainen, 2013). The company has set up more than 100 distribution points and 770 supply terminals over the world. Its pipeline company facilitates transportation of over 1.6 Billion barrels of oil in the US through the Gulf of Mexico. It has also branded over 44,000 retail stations in over 70 countries to make its products 10 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI and service readily accessible and available to its customers. Its advance Ducati oil brand is available in over 60 locations in the Netherlands. o Promotion ExxonMobil Advance Ducati oil has a strong brand accompanied by a recognizable and distinctive logo that has successfully promoted the quality of the product. The company has used very effective marketing and promotional activities that communicate the benefits of this product to its customers (John, 2014). It has signed deals with celebrities and singers who promote its brands worldwide. The company has also engaged in sustainability activities as well as corporate social responsibility activities that also serve to promote its services and the product in the Netherlands. It has made good use of the internet, mainstream media and outdoor advertising. The company has undertaken may sponsorship deals that has laid a strong brand presence in many sectors of the economy. Measurement and Control When launching the new product, the company should consider implementing improved standards of operation to remain sustainable in the market. Managers should also ensure that there is an organizational culture that will promote the new product in the market. The introduction of this product in the Netherlands is therefore viable and should be implemented since it will lead to a balance between responsible energy and environmental conservation. Ethical Considerations When launching the ExxonMobil advance Ducati product, the company should consider the possibility of facing environmental and sustainability issues. The product should efficient with the ability to reduce emissions of carbon into the atmosphere (Czinkota & Ronkainen, 2013). The company should also consider tracking the effect of the ExxonMobil advance Ducati 11 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI product to its carbon footprint before launching the new product in the Netherlands. Additionally, it is recommended that the company looks at the human rights and welfare in terms of the safety precaution measures related to the use of the ExxonMobil advance Ducati product. Implementation Steps and Recommendations The implementation steps for the ExxonMobil Ducati Oil should be done in a progressive manner to monitor its progress in the country. Market penetration strategy such as competitive pricing should be used in the first few months before setting very high prices upon gaining market in the Netherlands. It is recommended that the company sets the market penetration pricing strategy since the products face stiff competition in the Netherlands market. It should also engage in sponsorships and corporate social responsibilities to increase the presence of the company in the new market (John, 2014). Additionally, involving the community members in the product launch will earn the product success in the new market. It should also remain competitive and observe strict environmental rules to make the product more successful. 12 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI References Birkinshaw, J. M. (2013). Future of the multinational company. Chichester: John Wiley & Sons. Ltd. Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Mason, OH: SouthWestern Cengage Learning. Doole, I., & Lowe, R. (2013). International marketing strategy: Analysis, development, and implementation. London: Cengage Learning. ExxonMobil (2017). Brands and Products. Available at. http://corporate.exxonmobil.com/en/company/worldwide-operations/brands-andproducts/overview. Accessed on 22/12/2017. Inkpen, A. C., & Moffett, M. H. (2014). The global oil & gas industry: Management, strategy & finance. Tulsa, Okla: PennWell. John, R. (2014). Global business strategy. London: International Thomson Business Press. Linde, C. (2013). The State and the International Oil Market: Competition and the Changing Ownership of Crude Oil Assets. Boston, MA: Springer US. Noreng O. (2014). The Oil Industry and Government Strategy in the Netherlands. Boston, MA: Springer US. Stevens, P., Markaz, & Markaz Al-Imārāt . (2014). Strategic positioning in the oil industry: Trends and options. Abu Dhabi, United Arab Emirates: Emirates Center for Strategic Studies and Research. 13
Running Head: ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobilADVANCE DUCATI 1 ExxonMobil International Marketing for ExxonMobil Advance Ducati ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI Company and Product ExxonMobil is an American Company dealing in petrochemicals, petroleum, oil and natural gas. It has its headquarters in Irving, Texas USA. It is the eight largest publicly owned oil and gas companies and the largest oil company in terms of revenues. Its operations and services are present in over 70 countries globally with over 73,500 employees. It revenue as at 2016 was US$218.6 Billion with an operating income of US$7.969 Billion. The net profit of the company was US$7.84 Billion with total assets amounting to US$411.2 Billion and total equity amounting to US$330.3 Billion. And total equity of US$167.3Billion The Company has launched a new product, the ExxonMobil Advance Ducati, which is new motorcycle oil that has been specifically developed for Ducati motorbikes. The Company is listed in NYSE as XOM and is also listed as a component of DJIA, S&P 100 and S&P 500 Components (ExxonMobil, 2017). o Objectives and Goals Overview of Netherlands The Netherlands was founded by Julius Caesar initially inhabited by the Germans before the Spanish occupied it. Today, Amsterdam is the capital city of Netherlands and its national language is Dutch. It relies on the Euro and USD as the national currency and has an ethnic composition comprising of the Dutch as the majority and the Indonesian, Turks, Caribbean and other ethnic communities forming the remaining population (Birkinshaw, 2013). The country has a total population of 16,856,620 million people and a GDP of US$798,106 Billion. The per capita of the country stands at US$47,365. The political system of the country is ruled by a constitutional monarchy. Amsterdam, Roternderm, The Hague, and Utrecht are among the four major cities with a population of 800,000, 600,000, 500,000 and 300000 respectively. 2 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI The oil and gas sector is a well-developed sector in the country contributing up to 34% to the country’s economy with oil, natural gas, petrochemicals and other petroleum products forming the main products. The Netherlands is among the world’s largest exporter of petroleum products amounting to 0.25 of the world's export. The country has well established and developed green genomics and greenhouse horticultural practices (Doole & Lowe, 2013). The country has managed to attract more investors in the oil and gas market through an effective supply chain and logistics network. Oil refinery, mining, chemicals, food processing and metal work form the major secondary industry in the Netherlands. The BarbantStad are of Netherlands was voted as the most innovative industrial area in Europe. The tertiary industry of the country comprises of telecommunication, transpiration, financial services and logistics and distribution services. The economy of Netherlands is 78.2% dominated by the service sector that generates 80.71% of the country’s GDP although the government contributes 19.8% of this GDP. However, the country has embarked on diversification strategies that will see its education, health, oil and gas and infrastructure sectors open up new investment opportunities (Inkpen & Moffett, 2014). It has come up with development goals that are aligned with the UN sustainable development goals which have led to the prioritization of capital investment to create jobs for its citizens in the oil sector. Its major focus is the implementation of tax reforms that will be used to encourage consumer spending as a way of achieving sustainable economic growth. It faces political stability with a constitutional monarchy and a decentralized state system of government. Its foreign exchange earner is export of agricultural products and mineral oils. It has however initiated large infrastructural projects to open up more economic growth opportunities. 3 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI • Situation Analysis o PEST Analysis Political Netherlands economy is internationalized with less government interference and open trade investment policies. It has opened up investments, commercial and economic policies to spur economic growth in the oil sector. It has a liberal oil and gas industry which has been deregulated to allow more investors to venture into the industry. As a result, the political environment of Netherlands supports the investment in oil and gas sector (Inkpen & Moffett, 2014). The country has implemented legal tax reforms that have seen it charge 20% as corporation tax and 22% as income tax. It has the lowest rate of crimes and a strong drug policy that's has seen most of its prison remain empty. Investors in the oil and gas sector get tax and capital incentives to encourage more investment in the oil and gas sector. Economy The country's inflation rate is 1.1% with an unemployment rate of 8%. The labor force in the country's oil and gas sector stands at 8.35 million with the service sector taking up the majority, followed by the industries and the agricultural sector taking the smallest portion. The Netherlands is the Europe gateway due to its geographical location that has opened it for international markets. Thus, the country’s economy is ripe for more investments in oil and gas sector since it is stables and experiences less financial and economic crisis. Social Cultural The country has a high standard of living with the lowest level of poverty in the world. The per capita income stands at $47,210 and literacy level as high as 99%. Equally, the mortality rate of the country stands at 8.8/1000 people. The staple food of the country fresh fruits and 4 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI vegetables while its rats and culture remain the most famous due to the highest number of museums in the country. Many people in Netherlands love motorcycles both for private and sporting activities. This has increased the potential of the countries motorcycle oil market. Technology The Netherlands has high technological advancements in oil and gas exploration that enables investors to undertake cost-effective production of petroleum products. It has developed land reclamation and rehabilitation techniques that led to the recovery of 2/3 of former oil mines for settlement and farming. Its oil and gas exploration technologies have led to sustainable practices and use of alternative source of energy. The country has invested so much resource in research and development on the sustainable use of water scarce energy and petroleum product. Sustainable energy has seen the country produce its electricity from wind and biomass. It was the first country to introduce the first world solar road. Environment The country has implemented a waste management policy that has seen sustainable practices being implemented in all sectors of the country’s economy. Inland navigation, industries, aviation, and traffic contribute to 260mn metric tonnes of CO2 emissions in the country. Conservation of major ecosystem has seen the country’s biodiversity conserved and protected. The endangered and rare species have been protected due to the reliance on renewable sources of energy. o SWOT Analysis Strengths ExxonMobil has a strong market position in the energy industry with both downstream and upstream operations in more than 70 countries globally. The ExxonMobil Advance Ducati 5 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI is a new oil brand that has given it a strong market position and bargaining power in the global energy industry. The company has implemented vertical integration that has seen it engage in the crude oil business, natural gas production and exploration in the upstream market and marketing the refined oil products in the downstream market. As a result, the company has a competitive advantage in controlling the price of oil. In addition, ExxonMobil has a strong financial and technological ability that increases its capability in the exploration of oil and natural gas. It uses advanced technology including geophysical data that is airborne to increase its efficiency in oil and gas explorations. It has invested a lot of resources to build a strong R&D to reduce its carbon footprint and explore the ExxonMobil Advance Ducati in a cost-effective manner. As a result, it has managed to reduce its operational costs and achieve competitive advantage in the global market. Weaknesses ExxonMobil has faced numerous allegations of violating corruption laws which have led to huge fines that affect the goodwill and brand image of the company. The company is also facing the threat of a growing debt level that is becoming almost unbearable for the company. This has resulted in an increase in the financial obligation which has adversely affected the company's financial stability. It has also been accused of violating human rights through oil spill (Noreng, 2014). The quality and standard of the ExxonMobil Advance Ducati product are also facing challenges due to the large-scale nature of its operations. Opportunities The company has implemented partnerships that will see it undertake Prelude Floating Liquidified Natural Gas Technology to access gas fields in the offshore which is difficult for its competitors to manage. This will lead to an increase in its productivity of the ExxonMobil Advance Ducati by 5.3 million tons of liquid petroleum annually. The demand for the 6 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI ExxonMobil Advance Ducati has also increased globally, with cleaner energy being a major demand. All these factors have led to an increase in the market potential of the company’s products (Noreng, 2014). The strategic partnership with BG increased its market dominance in the motorcycle oil market. It also has sufficient technology, supply chain networks and financial resources that will see it undertake international expansion easily to exploit new markets in the Netherlands for its ExxonMobil Advance Ducati product. The strong supply chain network has improved the delivery of the ExxonMobil Advance Ducati product, thus increasing its market dominance in the Netherlands. Threats The issue of climate change is a major concern for the sustainability and financial viability of the company. With increasing demand and use of the ExxonMobil Advance Ducati, the rate of carbon dioxide emissions also increases, thus making it a responsibility of the company to find solutions to the emissions (Noreng, 2014). The ExxonMobil Advance Ducati product is susceptible to volatility revolving around politics since it is a major subject of discussion in the world. Thus, it faces a major threat of political victimization should such issues arise. Strict environmental regulation and government interventions may curtail its efforts to undertake oil explorations and the effective production of the ExxonMobil Advance Ducati (Birkinshaw, 2013). Weak industrial refining conditions and economic instability have reduced the profitability of the product over the past years. The rising cost of producing oil coupled with the fluctuating crude oil process also threated its profitability due to increased production costs and reduced profits. The oil and natural gas industry are facing stiff competition that the ExxonMobil Advance Ducati product sometimes finds it difficult to cope with. 7 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI Competitive and Industry Analysis The oil and natural gas industry have limited players due to the high cost of technology, skills, and expertise required to explore and produce the ExxonMobil Advance Ducati products. This has led to many entry barriers for new entrants and in case a company manages to enter the industry, it has to struggle to achieve a high volume of productions and sales (Doole & Lowe, 2013). Thus, the intensity of competition in the oil and natural gas industry is very high. Among the major competitors of ExxonMobil include the Z energy, Royal Dutch Shell Plc. British Petroleum, and OMP. These companies have mastered the art of collaborating with unrelated companies to increase their supply chain and distribution networks and out-compete their rivals in the industry. They also have alternative products for the Ducati motorbikes which will pose a threat to the ExxonMobil Advance Ducati oil in the Netherlands market. Industry Analysis The industry faces constraint such as stringent regulation by various governments, regulations, high costs of capital for investments, fluctuating crude oil prices, high interest and exchange rate, increasing the cost of raw material, limited sources of non-renewable energy (Noreng, 2014). As a result, the industry has restricted the growth of the companies’ necessitating the need to implement backward integrations. As a result, the ExxonMobil Ducati Oil will face challenges in the Netherlands market. Market Entry Mode and Why It Was Selected Since the company seeks to exploit a foreign market with a new product in the Netherlands, it is evident that its internationalization strategy will be very successful. For the ExxonMobil Advance Ducati product, it will apply the wholly owned subsidiary as the most 8 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI appropriate market entry strategy for the new product yet to be launched in Netherlands (Noreng, 2014). This entry mode is preferred because it will endear well with the legal systems of Netherlands, political stability, monetary and fiscal policies and well as respect to the human rights in the country. The wholly owned subsidiary market entry mode will also give the company an opportunity to build strong supply chain networks in the Netherlands markets early. It will be regarded as an insider company and will gain market knowledge enabling it to have maximum control over the product and its customers. This mode also provides the company with ease of setting operating process and facing fewer risks of losing intellectual property rights because it will remain in control of security and data protocol. This mode of market entry will give the company cost synergy and control over all assets. Marketing Strategies o Product The ExxonMobil Advance Ducati product has been diversified into three main categories to cater to the needs of its customers. At the upstream product diversification, the company undertakes natural gas and oil exploration to identify new and potential oil and gas reserves for its production (Stevens & Markaz, 2014).The second product portfolio is the new energies and integrated gas which involve refining the oil to obtain the ExxonMobil Advance Ducati product that its ships into the market. At the downstream of the product, diversification is the crude oil that the company refines to obtain a wide range of products including diesel, aviation fuel, gasoline, heating oil, lubricants, sulfur, marine fuel, ExxonMobil Advance Ducati, bitumen and LNG used for transportation (Stevens & Markaz, 2014). The major product mix in ExxonMobil product 9 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI portfolio serves domestic, industrial and transportation use while the lubricants are mainly used by industrial machinery, personal cars, and transportation vehicle. Its aviation fuel is used in more than 40 countries while the LPG is used for retail and commercial purposes. o Price Duct ExxonMobil Sets the price of its products in a competitive range depending on the nature of the product. The ExxonMobil Advance Ducati oil is used for commercial purposes and is therefore competitively priced depending on the market trends. The prevailing inflation rates and taxation in the Netherlands also determine the price of this product in the Netherlands. Global economic condition as well as the level of production by OPEC countries also detre4isns the price charge don its products (John, 2014). The price of natural gas varies from one geographical region to another depending on the demand and supply while the refined product is priced deepening in the price of oil and gas. This is an indicator that ExxonMobil has no control over the prices of the ExxonMobil Advance Ducati oil and has to rely on the prevailing market conditions as well as government policies and regulations to set its prices o Place ExxonMobil will set its stores and outlets in strategic locations within Netherland and a well-organized supply chain, logistics and distribution network to ensure that the ExxonMobil advance Ducati oil is available to its customers all over the world enabling due to the timely, effective and efficient delivery of the products (Czinkota & Ronkainen, 2013). The company has set up more than 100 distribution points and 770 supply terminals over the world. Its pipeline company facilitates transportation of over 1.6 Billion barrels of oil in the US through the Gulf of Mexico. It has also branded over 44,000 retail stations in over 70 countries to make its products 10 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI and service readily accessible and available to its customers. Its advance Ducati oil brand is available in over 60 locations in the Netherlands. o Promotion ExxonMobil Advance Ducati oil has a strong brand accompanied by a recognizable and distinctive logo that has successfully promoted the quality of the product. The company has used very effective marketing and promotional activities that communicate the benefits of this product to its customers (John, 2014). It has signed deals with celebrities and singers who promote its brands worldwide. The company has also engaged in sustainability activities as well as corporate social responsibility activities that also serve to promote its services and the product in the Netherlands. It has made good use of the internet, mainstream media and outdoor advertising. The company has undertaken may sponsorship deals that has laid a strong brand presence in many sectors of the economy. Measurement and Control When launching the new product, the company should consider implementing improved standards of operation to remain sustainable in the market. Managers should also ensure that there is an organizational culture that will promote the new product in the market. The introduction of this product in the Netherlands is therefore viable and should be implemented since it will lead to a balance between responsible energy and environmental conservation. Ethical Considerations When launching the ExxonMobil advance Ducati product, the company should consider the possibility of facing environmental and sustainability issues. The product should efficient with the ability to reduce emissions of carbon into the atmosphere (Czinkota & Ronkainen, 2013). The company should also consider tracking the effect of the ExxonMobil advance Ducati 11 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI product to its carbon footprint before launching the new product in the Netherlands. Additionally, it is recommended that the company looks at the human rights and welfare in terms of the safety precaution measures related to the use of the ExxonMobil advance Ducati product. Implementation Steps and Recommendations The implementation steps for the ExxonMobil Ducati Oil should be done in a progressive manner to monitor its progress in the country. Market penetration strategy such as competitive pricing should be used in the first few months before setting very high prices upon gaining market in the Netherlands. It is recommended that the company sets the market penetration pricing strategy since the products face stiff competition in the Netherlands market. It should also engage in sponsorships and corporate social responsibilities to increase the presence of the company in the new market (John, 2014). Additionally, involving the community members in the product launch will earn the product success in the new market. It should also remain competitive and observe strict environmental rules to make the product more successful. 12 ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI References Birkinshaw, J. M. (2013). Future of the multinational company. Chichester: John Wiley & Sons. Ltd. Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Mason, OH: SouthWestern Cengage Learning. Doole, I., & Lowe, R. (2013). International marketing strategy: Analysis, development, and implementation. London: Cengage Learning. ExxonMobil (2017). Brands and Products. Available at. http://corporate.exxonmobil.com/en/company/worldwide-operations/brands-andproducts/overview. Accessed on 22/12/2017. Inkpen, A. C., & Moffett, M. H. (2014). The global oil & gas industry: Management, strategy & finance. Tulsa, Okla: PennWell. John, R. (2014). Global business strategy. London: International Thomson Business Press. Linde, C. (2013). The State and the International Oil Market: Competition and the Changing Ownership of Crude Oil Assets. Boston, MA: Springer US. Noreng O. (2014). The Oil Industry and Government Strategy in the Netherlands. Boston, MA: Springer US. Stevens, P., Markaz, & Markaz Al-Imārāt . (2014). Strategic positioning in the oil industry: Trends and options. Abu Dhabi, United Arab Emirates: Emirates Center for Strategic Studies and Research. 13

Tutor Answer

TeacherSethGreg
School: Cornell University

Attached.

Running Head: ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobilADVANCE
DUCATI
1
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ExxonMobil International Marketing for ExxonMobil Advance Ducati
Students Name
Institution

ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI
2

1.0

Company and Product

Describe company and product/services offered
ExxonMobil is an American Company dealing in petrochemicals, petroleum, oil and
natural gas. It has its headquarters in Irving, Texas USA. It is the eight largest publicly owned oil
and gas companies and the largest oil company in terms of revenues. Its operations and services
are present in over 70 countries globally with over 73,500 employees. It revenue as at 2016 was
US$218.6 Billion with an operating income of US$7.969 Billion. The net profit of the company
was US$7.84 Billion with total assets amounting to US$411.2 Billion and total equity amounting
to US$330.3 Billion. And total equity of US$167.3Billion The Company has launched a new
product, the ExxonMobil Advance Ducati, which is new motorcycle oil that has been specifically
developed for Ducati motorbikes. The Company is listed in NYSE as XOM and is also listed as a
component of DJIA, S&P 100 and S&P 500 Components (ExxonMobil, 2017).

Objectives and Goals
The objectives of ExxonMobil are to foster environment of diversification and inclusion, to widen

its involvement in educational programs and recruiting activities and to achieve a worldwide
trust in the oil and gas industry.

2.0

Overview of Netherlands

Details about Netherlands
The Netherlands was founded by Julius Caesar initially inhabited by the Germans before
the Spanish occupied it. Today, Amsterdam is the capital city of Netherlands and its national
language is Dutch. It relies on the Euro and USD as the national currency and has an ethnic
composition comprising of the Dutch as the majority and the Indonesian, Turks, Caribbean and

ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI
3
other ethnic communities forming the remaining population (Birkinshaw, 2013). The country has
a total population of 16,856,620 million people and a GDP of US$798,106 Billion. The per
capita of the country stands at US$47,365. The political system of the country is ruled by a
constitutional monarchy. Amsterdam, Roternderm, The Hague, and Utrecht are among the four
major cities with a population of 800,000, 600,000, 500,000 and 300000 respectively.
The oil and gas sector is a well-developed sector in the country contributing up to 34% to
the country’s economy with oil, natural gas, petrochemicals and other petroleum products
forming the main products. The Netherlands is among the world’s largest exporter of petroleum
products amounting to 0.25 of the world's export. The country has well established and
developed green genomics and greenhouse horticultural practices (Doole & Lowe, 2013). The
country has managed to attract more investors in the oil and gas market through an effective
supply chain and logistics network. Oil refinery, mining, chemicals, food processing and metal
work form the major secondary industry in the Netherlands. The BarbantStad are of Netherlands
was voted as the most innovative industrial area in Europe. The tertiary industry of the country
comprises of telecommunication, transpiration, financial services and logistics and distribution
services.
The economy of Netherlands is 78.2% dominated by the service sector that generates
80.71% of the country’s GDP although the government contributes 19.8% of this GDP.
However, the country has embarked on diversification strategies that will see its education,
health, oil and gas and infrastructure sectors open up new investment opportunities (Inkpen &
Moffett, 2014). It has come up with development goals that are aligned with the UN sustainable
development goals which have led to the prioritization of capital investment to create jobs for its
citizens in the oil sector.

ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI
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Its major focus is the implementation of tax reforms that will be used to encourage
consumer spending as a way of achieving sustainable economic growth. It faces political stability
with a constitutional monarchy and a decentralized state system of government. Its foreign
exchange earner is export of agricultural products and mineral oils. It has however initiated large
infrastructural projec...

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