Chevron Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of Chevron through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
Chevron Product Strategy:
Chevron deals with all products related to oil, geothermal energy and natural gas. Their marketing mix product strategy includes lubricants, petrochemicals, additives and fuels. Chevron sells renewable sources of energy such as Hydrogen, Geothermal, Wind power, fuel cells, bio fuel and solar. It has classified its products separately for individual customers whom they call motorists and businesses. Products for motorists include fuels and stations while the businesses include special fuels for Marine businesses, Aviation businesses, additives, chemicals, fuels, Base Oils and process fuels. The aviation supplies include Jet fuels and aviation gasoline. For marine businesses it has exclusive marine lubricants. Chevron's base oil includes ISODEWAXING while its process oil includes ParaLux. The company’s some other products are Ursa, Oronit and Delo.
Image: company website
This concludes the product strategy in Chevron marketing mix & strategy.
Chevron Price/Pricing Strategy:
Below is the pricing strategy in Chevron marketing mix strategy:
Since Chevron and Exxon Mobil are close competitors for the market leader position and Chevron been second, both influence the prices of the products in the market. Chevron has the capability of raising the prices of fuel and affecting the market prices.
The company is a price maker rather than a price taker. The company is influenced by the world per barrel dollar prices for fuel because that becomes the basis of pricing of all the petroleum products of the company. The business products are priced competitively to retain the loyalty of its business customers. Its massive oil resources and major global presence gives it the power to influence prices. The marketing mix pricing strategy for Chevron is based on competition but being a fuel company, the prices are also monitored and influenced by government pricing, demand etc.
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Chevron Place & Distribution Strategy:
Following is the distribution strategy in the Chevron marketing mix:
Chevron has its operations South Africa, Australia, U. S., Gulf Coast, Southeast Asia, South Korea, west Coast of North America. The company delivers its products to the customer through its stations placed at places to distribute their fuel and lubricants. The company also uses its Chevron Pipeline Company to transport fuel. It also has its standalone shipping company that manages fleet of ships to transport its fuel. They either own the ships or they are chartered ships used for the transportation of fuel and petroleum products.
There are wholesalers too involved in the distribution system of the company to whom fuel is supplied by GSAT.
Chevron Promotion & Advertising Strategy:
The promotional and advertising strategy in the Chevron marketing mix is as follows:
Unlike its competitor Exxon Mobil who is highly aggressive in its promotions as well as its place, the basis of promotions for Chevron is its CSR. The company uses its corporate social responsibility activities to promote itself through print-ads. The print ads carry sensitive, community friendly messages that convey the importance of supporting the local community and helping small businesses. Chevron asserts on the importance of helping the community of which the company is a part or how it is the moral responsibility of a big business to sustain and help small businesses. Hence, this covers the Chevron marketing mix.
About Chevron:
Chevron corporation is a US based multinational energy corporation. It is also involved in natural gas, oil and related activities, geothermal energy etc. As of year 2014 Chevron has been one of the largest oil companies in the world securing third rand in the Fortune 500 list of top public corporation from US and sixteenth rank in Fortune Global 500 list of top companies worldwide. Employing over 64,700 employees it has been spending huge quantum of money that ranges up to 2 billion USD on acquisitions and research in renewable power generation. Chevron has been the largest producer of geothermal energy in the world.
It has been highly active in CSR activities contributing 41 USD for various constructive purposes involving a strong base of over 329,000 volunteers active across the United states. Chevron also received the prestigious 2015 Catalyst Award for its initiative in development, recruitment and advancements of women.
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