Ch. 16 -Integrated Marketing Communications

When it comes to promotional strategy, Bp New Zealand has a rigorous planning process for all their marketing and promotion. They take a long-term approach, and generally work six months in advance in designing and implementing their programs. With fuel margins declining Bp includes shops at all its service stations because they feel the Bp shops provide a valuable income stream and offers customers an extremely convenient shopping option. The Bp shops earns up to 50% of some of Bp's service station's incomes. 

As far as Business and Marketing communications Bp uses ''BTL'' below the line mix which means they use media which is more niche focused. BTL communication gives Bp the ability to tailor their message in a more personal manner to the audience. Approximately 70% of Bp's marketing spend is below the lines in activities such as in-store promotions and loyalty programs. Product, Price, Place, and Promotions the 4p's that every company needs in order to become effective in any industry. Place is something Bp try's to stay consistent with, having some the best locations in New Zealand, having a significant investment in ensuring the right number and quality locations. Customers respond well to their promotions campaign such as the AA rewards program. Bp's fuel product distinguish itself from other by having fuel such as petrol and diesel that is better for the environment. Price is the only thing Bp claims is difficult to differentiate.

Integrated Marketing Communications

What is Integrated Marketing communication? Easy!! it is a careful coordination of all promotional messages for a product or a service to assure to consistency of messages at every contact point where a company meets a consumer. It has been two years since the Bp deep water  Horizon Oil Spill that dumped nearly five million barrels of ''black stuff'' into the Gulf Of Mexico. So to help ease the transition , the company that is now the second largest gasoline marketer in the U.S planned to invest 500 million over the next two years for an American marketing push. The plan was centered around a distinctive fuel offer, improved customer experience, and a more compelling loyalty reward program with the hope BP can become the No.1 fuel marketers east of the Rookies. One part of the plan was to relaunch its ad campaign for Bp gaseoline with Invigorate, which cleans your engine while driving and improves long-term health of a car. This was Bp first new fuel related television commercials since 2009. The campaign consist mostly of TV commercials but also included spot radio, digital support and local public relations. Bp in the mist of all this also launch a pump rewards program which allow its customers to instantly redeem cents per gallon rebates by rolling back the price that appears at the gas pump. The launch will come with the ability of Bp marketers to ''distribute one-time-us- rebate numeric codes that can be entered directly at the pump, along with option to produce third party direct and bulk promotional cards that customers can personalize for their own site offers.

Ch. 10 - Product Concepts

BP has a numerous amount of products from road product to its LPG ''liquid petroleum gas''  that is used in a variety of ways,from powering your barbeque to refueling your vehicle. I begin with Bp's widely known Ultimate fuel; which is a range of advanced performance fuels designed to be better for your vehicle whatever the make or model. Ultimate fuels contain high octane and high cetane formulation which are put      in to clean your engine as you drive. This specific product allows your engine to gain more power, reduce exhaust emission and go further on a tank of gas compared to ordinary fuels. BP just like other companies such as UPS ''What Can Brown Do For You'' used slick slogans that attracts consumers attention like ''Looking After The Heart Of You Car''. Bp Ultimate  unlike some fuels, won't leave sooty deposits in your engine, in fact Ultimate is specially formulate to break them down; cleaning and protecting your engine to keep it fitter and healthier. Bp's LPG is a liquid gas that can be used in a domestic environment,  automotive, and industrial companies. The advantage of using LPG is it burns cleanly, no soot, no smoke, no smell, and easy to light. It is also easy to control as far as size of flame, non-poisonous and safe use. This automotive product and domestic product is modern, attractive, efficient, and easy to use and clean. In 2010 with the oil spill Bp's company spokesman Sir Lionel Hardwick Grosvenor stated the company need to expand revenue in the face of a changing market place, which all companies try when facing hard times. The company was losing millions of dollars each day as a result of the oil spilling on the Gulf Of Mexico. So as a example of product mix Bp outlined some new lines which the company would hope to soon offer. That included Bp's own sparkling water ''Princess Fergie Sparkling water'' which would be distributed in Bp-brown bottles, the pure unfiltered Gulf water. BP even wanted to start putting foods in restaurants around the Gulf like the 'Insta Fry Shrimp and Scallops, directly from the Gulf Of Mexico.These treats can reach their toasty goodness in less than 14 seconds. They even came up with the idea of a tanning lotion saying things like ''for those who loves the outdoors, there's no better protection from harmful rays''. The idea was to basically promote products that related to the water surrounding the Gulf.

Ch. 18 - Sales Promotion and Personal Selling

Bp is the leading marketers of petroleum gas products in New Zealand through a network of 420 services stations. Some are privately owned some are lessees and some are agents operating the service stations under agreements with Bp. This means that Bp only control prices at about third of it stations; the rest pay a wholesale price for products, and are free to set their own prices, depending on their cost structures, market forces in their business aspirations. Independently owned Bp service stations must meet Bp's standards for product and service. This way all Bp customers receive consistently high standards of service. There are many benefits for joining Bp including instant access to industry expertise and resources, branding and customer recognition updates, tips and hints on industry issues.In New Zealand Bp is the fuel retail marketing leaders which shows a good reflection on their marketing and sale promotion tactics.  Price reduction has become difficult because prices between competitors are easily matched, which means it is difficult to differ their product based on price. So instead Bp sell petroleum and diesels that is better for the environment making them the only superior oil providers to do so.

When pertaining to ''promotion'' research shows that customers respond well to Bp's promotion campaign. Things like the AA rewards program, as well as their loyalty program which is said to be very valuable because it allows them to drive sales and counter their competitors activity. According to a independent research, customers value three key things when shopping for fuel which is location, loyalty program, and service. Bp's main loyalty programme is AA Rewards.With AA rewards, New Zealand automobile associations (AA) members earn two drive points when they spend $10 at participating Bp service stations when they present their AA membership card. When you earn a total of 200 drive points, the customer recieve a 20$ discount coupon or a reduction in their AA membership subscription. The coupons can be used at Bp (and other AA reward partners) for a wide range of products including fuel and food, and they are also elgible for other promotion and prizes. Since also associated with Walt Disney glasses, soft toys and books can also be brought. AA has a wide membership throughout New Zealand and many members are of course Bp customers. This relationships combines Bp's mutal strenghth and offer benefits to both parties. Instead of just reducing gas prices Bp rather spends money on promotions because it is a essential part of their business and costs only around .2 percent of their total revenue. Bp claims it not economically sensible to stop promotional acitivities because it plays a major role in generating business for the company.

This is not all Bp does for its sales promotion. Bp also runs a coffee center name 'WILD BEAN CAFE' and since it was started it had appear to Bp that the company wasn't doing to good far as generating revenue. So What the company did was start a sweapstake ''SIP TO WIN'' scratch card campaign which offers customers the chance to win a trip to New York. The Competition was able to be played online or on its scratch card and additional prizes included,Thousand dollars cash, and a Senseo coffee machine. 13,000 people registered and played online.