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.
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