Chapter 11- Developing and Managing Products

Developing a product to put on the market is a vigorous process that takes step by step analysis. When a company decides to come up with an idea for a new product it takes a strong team, good timing, great value and last but not least profit. When introducing a new product my company Bp ask's its team a very profound question a question all good company's should ask and that is what can the product do for our consumers and who will be consuming it? Liquified Petroleum gas, Bio fuels,  Motor Fuels, Motor Oil and Lubricants  are all products that Bp produces yearly. I've taken a look at Bp Ultimate one of Bp's successful products. It got its success because its timing and location. It launch in 2000 but went through some type of a withdrawal because  of storage related issues and wasn't relaunch to May 2010. I say good timing because we all know in 2010 Bp went through one of its worst times with the Gulf Of Mexico oil spill and needed something positive to come out of all this. This was very vital for the consumers because it showed them that Bp even through rough times can still showcase there innovation skills. Bp has many type of consumers which spreads from your everyday car driver to motorist, road transport and professional drivers like race care drivers. The fuel is designed for better performance, lower consumption and less pollution. It also can keep new engines cleans and clean dirty ones, and reduces engine wear. Bp Ultimate is example of the commitment to the brand value. 

Moving on to a next product Bp calls Invigorate which also was designed to help cars run 'younger for longer' by providing a bottom-line cleaning effect on a cars fuel system. It was launched across the mid-west and east Gulf coast in 2008, following a pilot programme. The success was almost immediate, with sales of Bp gasoline exceeding the rest of the Industry by 2% and consumer brand rating increasing significantly in terms of perception of product quality and value for money. What was remarkable was that it occurred just as gasoline prices hit record highs and the economic downturn began to become dreadful. Beginning with the global fuels technology team to create the right base molecule, which would be added to all Bp gasoline, only with higher concentrations in the premium product. Also working with the marketing team who began consulting consumer focus groups. Naturally the strategy had to take into account public perception of Bp following the Gulf of Mexico oil spill but customer focus groups have also shown that while views of the company are lower, perception of product quality has increased slightly. The development and launch of Invigorate has strengthened Bp customer relationships and supported their sales volume through 2010.

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.

Ch. 17 - Advertising and Public Relations

Bp standing for ''Beyond Petroleum'' was founded in Britain. The first ad for Bp ''Motor Spirit'' appeared in the UK in the 1920's, when driving was only enjoyed by the wealthy. So therefore, when Bp was first getting started there were very little advertising planning because there were hardly any drivers to advertise to. The 1930's and 40's car ownership in Britain became more affordable so that now Bp advertising plans were able to take a much more wider appeal, with eye catching illustration to give new drivers imaginations; with ideas for exciting places they might go in their new automobile.

Service with a Smurf’ 

In the 1960's and 70's, Gas station's in Europe had stiff competition, and brands offered some unusual extras to attract customers. Bp stations in Netherlands gave customers a free ''Smurfs'' figurine with every fuel purchase. The smurfs, the creation of Belgian Cartoonist, had been enjoying a growing, underground celebrity in Europe.Using with the Book state's as common appeals, in the use of 'Admiration' Bp called on well-liked celebrities to do its promotions like Stirling Moss the celebrated British race car driver. 

''Commitment''

As Bp worked to stop the oil leak in the Gulf Of Mexico, the company was also spending $50 million on television adversting. One advertisement featured CEO Tony Hayward apologizing for the spill and promising that Bp would pay for the cleanup without any tax payer dollars. Bp hoped to quell some of the anger against the company by positioning itself as a group that made a terrible mistake, but one that is working very hard to correct this mistake. Using the techniques of both product adversting and instutional adversting to get consumers to buy into there product. Focusing more on the identity of the company especially after various incidents that brought the company negative critics Bp had found themselves in the position to fix there image. After getting over sort of a hump in this time period Bp decided to be front runner's in promoting tourism back in the Gulf. It's tourism commercial had many states around the Gulf explain why should people come back to the vacationing areas. Stating that places like Alabama were back and better than ever so is Florida, Mississippi  and Louisiana . ''These ad are not just a lot of fun, but as evidenced by the record number of visitors in some areas, extremely effective at letting people know the Gulf Coast is still a premiere tourist destination ''said Mike Utsler, head of Bp's Gulf Coast Restoration organization. Taking advantage of the Internet as most company do Bp ran an online campaign, known as ''My Gulf'' series, featuring a variety of people who live and work in the Gulf.

Also as a part of the Gulf Coast Tourism commitment, Bp in 2010 provided a total of $87 million in block grants to the states. Adding another additional $97 million over a three year period for the states to use to promote tourism, this was and still is an essential part of the Gulf Coast economy. Local and State reports now indicate tourism is rebuilding in many areas across the Gulf. In the Florida Panhandle for example, tourism officials reported some of the best month's on record in 2011.

Ch. 15 - Retailing

When walking into Target one of the world's largest retailers I felt right at home, not only because it was just built in my neighborhood in East Harlem but because of its comfortability. With all the space available, it allows its costumers to enjoy their shopping with out having to worry about the inconvenience of people breathing down your neck it also made my shopping experience worth wild. The first thing I notice when entering Target saturday afternoon was the Star Bucks and Pizza Hut it had in it; which made me think what a great idea to have these two restaurants so that customers can either enjoy a quick meal before or after they shop or even between shopping. With Star Bucks highly known reputation it gave Target a little bit of a boost of attraction when customers enter the retailing giant. Right of the back I noticed how much Target emphasis on their company's color bright red. With all the red in the store from the employers to the landscaping of the store it was hard not to think of Target when I saw the color red.

Target is a department store because it sales a wide variety of shopping and speciality goods, including apparel, cosmetics, housewares, electronics, and furniture. Target is also what you would call a ''Franchisor'' because it's granted the right to sell another party's product. Like WAL-MART  Target is also known for its data mining strategy to determine which products to stock, what price, how to manage the markdowns, and how to advertise to draw target customers. There advertisement department are similar to designer fashion advertisement; they depict high quality goods paired with ubiquitous red-target and tag line ''expect more pay less'' to aspire consumers to own products at prices they can afford. For promotion of exclusive products Target hires famous young designers for temporary partnership, during which they develop reasonably priced products lines available exclusively at Target Stores.