Caltex Bio E-10 Unleaded Petrol

Topics: Marketing, Petroleum, Oil refinery Pages: 8 (2381 words) Published: November 26, 2010
Table of Contents

Silver water Terminal Upgrade at NSW2
Bio E-10 Unleaded Petrol3
Marketing Budget4
Marketing forecast and Budget4
Different Business Analytical Methods5
Breakeven Point Analysis5
Return on Investment-ROI5
Importance of Marketing Budget6
Viability of Marketing Budget6
Recommendation and Conclusion10

Caltex Australia Limited deals with oil refinery as well as marketing group and has about 30% market share. It has two refineries which are situated within Queensland and NSW, in addition to several distribution points allover Australia. Caltex Australia Limited also has a national network of service stations which are branded as Caltex or Ampol. US Chevron Texaco refining joint enterprise owns about 50% of the company. Caltex Australia Limited is the leading company in market within strategic refinery of petroleum on top of being the leading distribution industry within Australia. It runs two key refineries at Kurnell in Sydney and also at Lytton in Brisbane. The company is still investing to make sure that it sustains market leadership. The extent of the market business facilitates the company in taking advantage of the developing essentials of the industry (Caltex 2008). The marketing operation is involved in the promotion and sale of Caltex products using a global network of about 2,000 Caltex, Caltex Woolworths, Ampol branded services stations and also branded resellers. Moreover, marketing makes sales directly to a big number of commercial clients. In this report, we will be analyzing the recent launch of Caltex Bio E-10 unleaded petrol which has brought high performance fuel to the forecourt. This petrol has approximately 10% ethanol. Specifically, we will be looking at the investment in Silverwater terminal whose main objective is to support the growth of Caltex in biofuels within New South Wales (Archibald 2010).

Silverwater terminal upgrade at New South Wales
The most recent $8 million upgrade of the Silver water terminal, whereby Caltex invested $5million, is a part of the company’s efforts to meet the New South Wales ethanol mandate. This will also facilitate addition of more Caltex service station within Sydney as well as regional New South Wales to provide Bio E-10 unleaded petrol. The New South Wales government is that four percent of the volume of petrol sold should be ethanol. This will progress the replacement of all regular unleaded petrol within New South Wales with E10 by July 2011. Caltex gets its ethanol from producers within New South Wales as well as Queensland which manufacture ethanol from renewable sources, assisting in reducing Australia’s greenhouse gas emissions in addition to reliance on fossil fuels. Caltex has invested more than $16 million in bringing biofuels to its clients, through developing its service stations and also its biofuels distribution potentials at Banksmeadow, Newcastle and Queensland terminals and at the present at Silverwater (Archibald 2010).

The terminal upgrade will enable Caltex to dispense its Bio E10 Unleaded from Silverwater which will in turn lower congestion at Banksmeadow and Newcastle terminals and offer a third alternative for dependable distribution by truck in New South Wales. Caltex provides its clients with numerous alternative fuels which consist of Bio E10 Unleaded, Bio E-Flex as well as variety of biodiesel blends and LPG autogas. Most new and numerous old cars, SUVs and light commercial petrol vehicles can utilize E10 which is there at about four hundred Caltex service stations within New South Wales, the ACT in addition to Queensland. Caltex is steadily replacing regular unleaded petrol with E10 allover New South Wales (Archibald 2010).

Bio E-10 unleaded petrol
It is important to give a brief description of the product that Caltex plans to launch before creating the marketing budget. Bio E-10 unleaded petrol is improved...
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