On 3 July 2006, Texaco Limited became Chevron Limited. But Chevron is still committed to the Texaco brand and the Texaco name will continue to be seen at service stations, on road tankers and on Havoline lubricant packaging. The move is part of a global project to change the corporate name to Chevron Corporation. Chevron is best known for selling petrol and its Havoline brand of motor oil products at Texaco branded service stations. But alongside its top motor vehicle products, it supplies fuels and lubricants to major airlines and shipping customers. It also provides products and services for industrial and commercial use.
I have been asked to produce a plan of a marketing strategy for a petrol station in my local area. As it goes by the name of a big company like Texaco, it doesn’t necessarily mean that the shop is of the same brand. The name of the store is 24/7. The shop is self employed by one man Mr Patel. The main aim of my report is to research and then advise the owner to endorse a new product(s) to attract potential customers around the local area. I have chosen this local petrol station in particular to focus on as it has promise as well as a vase amount of potential. It has recently been refurbished and now is planning to introduce cafA© style food inside the station as this is ever-growing in the petrol stations of today with places like Somerfield and shell offering these services already. This has not yet been inputted into the Texaco’s of the local area but Mr Patel is eager to do something new with his store. The Plan of my strategy for the store will be that this station will offer food such as, sausage rolls, fresh sandwiches, cookies, pastries, cakes as well as other hot and cold food accompanied by both hot and cold drinks. This strategy will first be recommended to the business and then left with the owner for consideration on whether to input these ideas into practice if they feel it is beneficial for their long term plans. I have chosen to focus on Texaco as it is my local petrol station and I believe in doing this would only have positive outcomes for the business such as higher profits and also word of mouth making them a good prospect in the local area. The station is located in the centre of wood green and has a lot of important links around the area.
Tube: Wood Green (0.36mi, 0.58km) Railway: Alexandra Palace (0.78mi, 1.25km) Airport: London City Airport (9.26mi, 14.91km) Every business, small or large, will be more successful with a business plan. And the key component of a business plan is the marketing plan. A good marketing plan summarizes the who, what, where, when, and how much questions of company marketing and sales activities for the planning year:
A good working marketing strategy should not be changed every year. It should not be revised until company objectives (financial, marketing, and overall company goals) have been achieved or the competitive situation has changed significantly, e.g., a new competitor comes into the category or significantly different or new products emerge from existing competitors. Although the brand of petrol being sold at the store is Texaco, the shop goes by its own name of 24/7; this shop is independent and is not owned by Texaco. For 24/7 selling petrol brings many advantages such as attracting customers to the store through the Texaco brand. This is good as the marketing side of the store is helped by this. When promoting the store 24/7 may promote the store as ‘Texaco wood green’ rather than 24/7 as people seem not to notice this sign as the petrol one is huge. The idea to bring in cafA© style food could do wonders for the success of 24/7 in long term. The hardest part is to get people to hear about it and take notice and for them to choose 24/7 instead of local competitors such as Morrisons and A1 cafA© just a short distance away. This is where the marketing has to be spot on and a plan would have to initially be created. Before you can meet a customer’s needs, you must first identify what these needs are. These will differ depending on the type of customer. I have already found out my target market through my questionnaire and my own observations of the store.
The first objective of any business is to make a profit. Without profit, a business like 24/7 cannot do all that it wants to achieve. Profit is defined as the difference between the total revenue of the business and the total cost of running it. If the business fails to make a profit, it can have a number of serious consequences 24/7 have not experienced high profits as of yet and will be hoping something will happen for them soon. If this does not happen for them, they cannot keep its shareholders happy, it cannot invest in better technology and therefore improve its products, customer confidence in the business drops, and staff morale also drops as they start to worry about their jobs and also worry about being paid in this case only one but is still the same procedure as Mr Patel is very wary about wage prices as he likes to give as little away as possible. It also means that they cannot reward their employees for good work or give money to charities, as that is a good chance to improve their public relationships.
Many businesses such as 24/7 strive to be market leaders and will fight very hard to achieve it. Most of them are too aware of the importance of this as the business that does this is best placed to make large profits. A company which has a large market share can mass produce products and can buy products and materials at a discount from suppliers, this is the sort of offer that 24/7 have received from their bagel suppliers and they will offer 24/7 more discount as they order more. This is because 24/7 has remained loyal to the bagel company and never fails to order on a regular basis. 24/7 can then spend more on advertising etc. Once the business has established itself as a market leader, if it ever does, it puts money into investment, product promotion and research and development to keep hold of the status that they have achieved. Market share can also lead to lower costs as if the total output produced increases over time, the cost of producing each unit will fall. The more you do something the more experience you get, and so next time it is likely to be better as you can iron out any faults. Subsequently, companies that have a high market share should have accumulated more experience, and therefore companies should try and get a high market share. The best indicator is the ratio of one company’s market share to that of its nearest competitor.
One of the main objectives for 24/7 is primarily to survive. The survival of the business depends on it making enough profit in order to make it worthwhile to continue. Many businesses go out of business because they are not making enough profit and the owner/owners lose interest and feel that it is not worth investing more money or putting more time and effort in. You don’t have to make a profit to survive; just simply avoiding making a loss can help a company survive but in a business such as 24/7 cost is involved throughout. Some businesses may have to obey new legislation and if don’t they could lose favour with consumers then they could also disappear. 24/7 can make little or no profit but at least it will survive to compete in the market well in to the future.
Businesses do not exist just to make a profit; there are other businesses that exist to also provide other services. 24/7 offers a self car wash service for the public to use for free as well as offering free tyre pressure. The local and friendly atmosphere helps the feeling of the area and gives a positive feel in the store.
|Morrison’s Morrisons is a huge competitor in the area and offer a huge edge in competition in their huge establishment. On top of this they have their own cafA© as well as a restaurant just a minute walk away from 24/7.|
|Sainsbury’s Sainsbury’s give obviously compete very well against its other companies. It has been around for longer than most and in wood green has stood strong and held its place by the top. It offers everything besides having a cafA© it still offers a good competing attitude in the local area|
|A1 cafA© This is a cafA© that the locals love and wouldn’t take it away for anything, the price is reasonable but is still on the higher side of normal by reaching the higher average prices. The locals love the feel of the place and this is a big competition in the area. Other cafA©s have tried to open in the area but all have failed. Morrison’s are the only ones still standing in the local area.|
|Star Bucks This place has grown ever so quickly in the local area and has offered a good competing wave in the way it has come in and done wonders in the way they have taken the coffee market to a whole new level. The drinks that 24/7 will be much cheaper but wont have the same level of comfort that star bucks offer.|
With these different types of competition jus local to 24/7 it has almost forced them into making a vital change and into becoming known competitors in the area. Also 24/7 may feel if they don’t, there is only one way they will be heading. The thing is that wood green has almost every thing you are looking for, not just once but many times. The products and services that 24/7 offer has become almost an everyday thing for the area of wood green. Businesses are finding it hard to create USP’s in the way that there is nothing left to think of whatever competitors are coming up with has already been done in the local area. 24/7 need a fresh idea and need it fast if they are to survive in this area. 24/7 was one of the first stores to set up in this area. The locals love it in a way that they don’t want to let it go but are feeling they may have to. The supermarkets such as Sainsbury’s and Morrison’s are offering a better range as well as some better offers. If 24/7 have seen the building of these companies but didn’t ever experience competition. I believe competition is good for 24/7 as they would not have changed things as they believe customers didn’t have anywhere else to shop. Now that there is, I believe it can only be positive and 24/7 will build greater and stronger for the coming future. The fact that there is so much pressure to do well for the cafes in a congested area urges the managers of Bon Appetit on to keep working hard and keep maintaining progress to earn sales.
There are 4 types of market warfare; this is almost a fight to the top. The way in which business can compete vary and this give an edge as some companies may use different ones to their rivals but when they clash there could really be a battle to becoming a market leader.
24/7 can try and attack there competition directly by shocking them and winning over customers not just short term but for them to remain loyal and give competition such as the A1 cafA© and Morison’s a run for their money. This could work very well but could also lead to disaster in the way it could back fire and customers may go elsewhere, sometimes even existing ones. They are currently using this style of marketing but aren’t fully emphasising their need.
When businesses such as 24/7 are under this type of attack they usually tend to go into this type of defence as their small backbone may not be able to cope with it. This can be carried out in several ways such as offering a product mix and sometimes even changing the marketing mix. This would include something such as 24/7 offering the goods into the car while people fill their petrol (like a drive through) this is something that any other business would never try at a petrol station but this is what sometimes happened when small businesses like 24/7 are under attack. This tyoe of stragegy intends to keep the level of the business at the one it is currently at instead of trying to increase market share because this could easily cause the decrease of it.
This is a way of differentiating and making the offering of your product or brand unique. When guiding the local market to a product that is different and at the same time unavailable elsewhere in the local supermarket sector, it will be easier to acquire more customers and cut short the dominance of the market leaders in the local area such Morison’s
This is a type of strategy that consists at a type of no danger and consequence for the business. This could be something like targeting different markets. I have demonstrated this in the way that I will be recommending that 24/7 target different segments of the markets at different times. This will have no danger as it will not involve competitors and also they may not even see this while it is happening or even happened.
Unconventional marketing intended to get maximum results from minimal resources. As 24/7 cannot compete with the resources that their competitors have they can only do with what they have and try build on this. This may be in the form of flyer being posted out around the local area about their recent offers. This is a low budget activity but may have a better outcome than others.
The age group in which I will be targeting would be usually drivers stopping off for petrol and maybe a snack. This would mean that the age group would be 17+. This is because this is the legal age for drivers to be on the road. This could affect the performance of the product. This is just most people that would be purchasing these products, but there will also be people that will go in just to shop for their normal things. So this is hard to tell as the audience that would be targeted are the drivers that will be using the station frequently.
I believe that the targeted gender would be male as most drives are males these days. As women would also be driving in and filling up I still believe that the male population would browse more around the store whereas the female population are in more of a hurry when filling up petrol. This is me personally saying this as I had observed that station for only one day but this is what I had found out. Also I had found out that nearly every male has to purchase at least one thing before leaving the petrol station.
Firstly I believe that most people will have own cars, this is an automatic boost in their social class. They must be above the lowest to have a legal car on the road as cars come with many expenses. Also, in general, petrol station prices for their non petrol products are seen as being higher than most local stores. This also affects the social class of the people who visit the stations.
This means where the customer comes from, I believe that this will not affect the target market as all the people that will be buying products would be drivers or general local residents of the area, this area doesn’t have a population of one race that over powers another. It is quite clearly a multi – cultural area and this would reflect on the geography of its customers. The income of the area also has an impact on whether people are even shopping in their local stores. Supermarkets are running this sector by having a branch on almost every corner of every street.
|Family income||Very high|
|Interest in current affairs||Very high|
|Housing – with mortgage||Medium|
|Educated – to degree||Very high|
|Couples with children||Low|
|Have satellite TV||Low|
Here is an overview of the likely preferences and features of the neighborhood: According to upmystreet.com many of the people who live in this sort of postcode will be affluent urban professionals living in flats. These are known as type 15 in the ACORN classification and 1.17% of the UK’s population live in this type. The relevance of this table is to show the overall income of the area, this has and effect on the way that people spend and to the extent that they do. People in this type are very highly qualified; one in four people have postgraduate and professional qualifications. They work in professional and senior managerial occupations, with many spending very long hours at work. This population graph clearly shows that the age range that is over powering all others in the local area of wood green is the range of 25-29 years of age. This is down to the amount of people coming into the area who are single, own a flat and have a job in the area. The advantage of this graph is that it shows me the area of market in which I should be targeting and also the different numbers in ages that exist. This may also help me when trying to differentiate the market at different times. I could target different age groups of the market at various times during the week. Most residents are either young singles or couples. There are very few children and those there are tend to be under five, which suggests that young families move on from these areas. This graph shows the house prices in the wood green area compared to the national average and it is clearly stating that housing prices are increasing heavily by year in this area and is becoming a much more popular area of residence. This could affect prices in general around the local area. I am hoping to differentiate the market at different times. In saying this I mean that I will target different segments of the market during the weekdays, evenings and also weekends. I believe that in doing this 24/7 will have the ability to please different markets with for example different offers on at different times. At the moment I am targeting the current market of single males ages 18 – 25. This area of the market is very popular in the local area as shown in the population graph.
Introduction – this is where the product has first been introduced into the market, and has not really built up much of a reputation for itself, as people don’t really know about it.
The Boston Matrix is another marketing tool used to help look at the position of the product in the market. Used with the product life cycle it can help to confirm the results. This is the Boston box and this when used in sync with the product life cycle can be a very strong set of marketing tools to define where a product stands within a market. Will be very useful for both me and 24/7 in finding out how successful the product range could be. This The Boston matrix is a portfolio analysis that assists with decision making
Different forms of marketing that I will consider for 24/7:
These are the only four types of marketing a product and no matter what 24/7 does to marketing; it will always fall into one of these categories.
These are objectives that 24/7 already have but have not been able to achieve. The new targets have been set and the recommended strategy will contribute into helping the achievement of these.
24/7 already offer light packed snacks in their store such as well known crisps and chocolates. I believe in adding the warm fresh snacks, it will give them that little bit extra in the selection in what they offer. A lot of people now care about what they are eating and seem to pick something freshly made rather than these so called packed snacks. Here is a range of products that I insist 24/7 input into their local business for the boost of overall sales.
These are some of the products that will be on offer at 24/7 once the equipment has been inputted into the store. If Mr Patel is serious about putting this into his store he will have to do a 2 week training course on how to provide these services himself. Its is a simple 3 day course over 2 weeks which teaches him how to use all the appliances and then he may do it himself of sub contract someone into doing this while he serves other customers.
Also their will be a self service machine for hot drinks which will give the customers a choice of 12 different types of drinks to choose from and purchase. I have designed a drinks menu for this as a prototype for the business. This is what I came up with: These are the drinks that the customers can choose from and with each drink on the menu come a description of what the drink consists of. Marketing research can be defined as the collection, collation and analysis of data relating to the marketing and consumption of goods and services. Market research aims to identify product development opportunity by providing information about customers as well as their wants and needs. Market research:
Primary research is information which does not already exist. In other words, it has to be collected by the researcher. Most primary information is gathered by asking consumers questions or by observing their behaviour. The most accurate way to do this would be to ask or observe all consumers of a particular product usually known as the population. It is usual to carry out a survey of a sample of people who are thought to be representative of the total market. There are various types of primary data’s used by organisations which are listed below.
Advantages of interviews that I could have carried out for 24/7 are that
Market research is necessary to lower risk of failure and to refine and acknowledge where and if there is a demand for the product. Market research can tell a business where and how to present or introduce the product to the public. It finds out which people would be interested according to gender, age and socio economic groups. Market research can inform you and businesses of what type of people already use a similar product, this can help businesses accurately predict a good location, where these people prosper, to begin business in.
Firstly the market research helps a business understand the key features of their needs. To understand the key features of buyer behaviour
Secondly market research can add to an understanding about the marketing activities of the business and its competitors.
In relation to 24/7 I have already completed my first part of market research by firstly doing an observation and also handing out a collection of 50 questionnaires with valid results. I am going to devise a questionnaire to help my awareness of the current customers and the target market for the business. Firstly I will ask Mr Patel to hand out one of my questionnaires to every customer on a regular working day and as an incentive I have offered a free key ring to ensure customers participate as freebees always go down well with the public in this local area.
Here are the results along with the questions. I had given Mr Patel 50 copies along with 50 hey rings and he didn’t fail to impress.
15 35 Male Female 2. Which age group do you fall under? 8 10 25 7 0-18 18-25 25-35 35+ 3. Your marital status? 10 5 35 Married SingleOther 4. How many times do you shop at 24/7 a week? 3 32 15 Once TwiceThree+ 5. Is 24/7 your local? If not what is? 28 22 YesNo ____Morrison’s____ Every single person that answered no to this question had given me the answer of Morrison’s as their local supermarket. 6. Would you like 24/7 to offer cafA© style food? 10 6 34 YesNo don’t mind 7. What ethnic group do you come under? 17 11 16 6 English Asian BlackOther 11 0 1 38 8. How do you get to 24/7? CarBikeBusWalk 14 4 10 22 9. What is your prime use of the station? Petrol cigarettes groceriesAll 10. Do you like the location of 24/7? 18 32 YesNo 11. If there was one thing you could change about the shop, what would it be? To have more of a range of products There were many people who had skipped this question as most people only wanted to tick the boxes. The people who had filled out this question, this was the most popular outcome. Here I have analysed a selection of my questions to further the explanation of these.
This will help 24/7 when deciding on targeting their products at both genders. Here they will be able to see the percentage of their market on a small scale as well as being able to analyse and target it.
24/7 will look at this graph and find out the age in which they could rather be targeting than the ones they already are. It also gives them an idea on what products are going to no use and they can also get an idea on what proportion of people and their age shop at their store.
Here there is area for 24/7 to see who is married single or probably in a relationship, this could help them to also see who has families and may target their market at different times to children as their kids with special offers and rewards.
Here the store may be able to see how many people that are shopping in 24/7 are actually shopping their consistently. They may already be able to see a familiar face to one that isn’t but they can easily see how their competitors compare to other customers around the area.
|Strengths 24/7 has a lot of strengths in the way in which the area it is located, transport links, close neighbourhood and also they have the chance of hiring staff easily and get exactly what they are looking for. This is because of the opportunities n the area. They also have low salary coming out which benefits the overheads. They are quick to respond to market changes.||Weaknesses 24/7 has missing expertise in some areas such as marketing and planning. The project planning side is also non existent. The workload that they carry at the moment is hard for people to cope, especially with them having such a low employee rate. They do not have high profit. Also they are a small business. They are in need of human and physical resources.|
|Opportunities As many people in the are looking for jobs they are lucky that if they feel the need for a burst in employment, the resources are still there and are offered to all businesses of wood green and Haringey. They could also hire someone to hand out leaflets about offers in store and this could have a positive outcome.||Threats These weaknesses allow their competitors to move in and capitalise on these areas. This is also a place that an employee sees as negative with the workload on one person is great. Customers may go and find an alternative and move on and start shopping at a competitor. Overall the threats are huge for 24/7|
This looks at the four elements consisting of product, price, promotion and place. These are marketing tools that are used by many businesses when creating a strategy. 24/7 will asses the four p’s and then decide upon which one on more to input when deciding upon their strategy. Now I will go further into looking each tool to see which once is vital into the success of 24/7.
The new product range that will be offered by 24/7 will give the visiting customers a wider variety of choice when stopping off at the station. This type of range has not been inputted in any other petrol station or supermarket in the local area. This will create a bigger mix for the customers and give them a harder choice when choosing what to purchase at 24/7. These foods will give 24/7 that extra more whet they have been looking for and will also consist of some of the old favourites while still pleasing a new market. The drinks will offer a range of coffee’s and other hot drinks for customers to enjoy from a easy self service machine that will entice customers into using the store regularly.
When choosing the pricing for 24/7 ands its new range of products, I have to make sure that I am spot on while keeping its competitive and also reasonable. Just like any business 24/7 has to consider the 3C’s when choosing the correct prices. Here is the menu from a local competitor A1 cafA©. Looking at their prices can give me a guideline of margins when setting my prices. These are some of the products that will be offered at 24/7, as well as sandwiches and sausage rolls. These will be compared to competitor’s prices when choosing the ones for 24/7 to ensure that a reasonable yet competitive price is being set.
Here I have designed a perceptual map and shown the quality and price of local competition in the area.
In this part of the marketing mix I will be looking at gaining awareness of the new product range and the way I will get people to hear about it. One way in achieving this is word of mouth and just making people tell their friends and family about the new products. This is still not enough for 24/7 to promote their new range. I will be making flyers for the business to hand out in the store as well as being inserted in the local newspaper for a small price. This will help the business in achieving its aims.
This is the end of the chain and is where the customers will actually receive their products. 24/7 already has the store to distribute the products and there will be a new opening by the back of the store offering a drive through sort of procedure. They can purchase the new range through this window including snacks and their hot drinks. Customers will also receive a loyalty card and will be able to get it stamped while buying the products. The more that they purchase, they will receive more gifts, such as a free coffee or bagel.
I am giving you, Mr Patel, the change to help your business in a way that you haven’t seen it before, by saying this I mean that I have created a new product range for you to offer at 24/7 and use it to your ability. I believe that promotion was the problem in your store and not many people were getting to know either you or your business well enough to use it regularly. I had created a marketing mix and I believe that promotion will firstly boost the sales of existing products. The target market will be interested in what you have to offer and the new style will gasp a breath of fresh air around the area. I will be creating flyers and asking the local newspaper for an add that I can produce promotional activity around the borough of harinngey. Your have been almost throwing away your money on the recent marketing that oyu have been using. I believe with my help and direction you will be maximising the ability of your marketing capabilities along the right track there are many cheap ways of advertising and I believe that in using the cheaper options will give you a wider range of different activities you may use for 24/7. using one main activity and wasting all the money will be very dependant on that one task. I advise you to stop any activities that aren’t working and start fresh. Just because other businesses are doing it and it is working it doesn’t mean that you should too. Your business is unique to others and will have different marketing techniques. Many businesses use this procedure and fail when trying to make a healthy profit. This introduction to this new range will give 24/7 that extra competing edge that it lacked over the recent years. These strategies will help the business into being well known in the area and hopefully become popular with members of Haringey. 24/7 will now have that extra advantage of a fresh market and will hope to build on these strategies.
www.upmystreet.com www.google.com/images www.business.com www.morisons.com www.sainsburys.com www.bbc.com Book used
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