The abysmal image of the global oil industry has made it difficult for the Irving Oil brand to thrive. Brand differentiation is imperative, but hard to execute because of the simplicity of the product. The oil industry is receiving backlash for several reasons that include; price, power, and lack of consumer empathy. Consumers feel as though they are being taken advantage of by the government and by gas retailers. The Irving Oil brand has received accolades from its consumers, but there has been no significant growth in the profit margin after implicating a new positioning strategy.
The ZMET data depicts that price is consumers’ largest issue with any gas retailer. The price of a basic necessity has been increased so high that their quality of life is being negatively affected. A theme throughout the data is sacrifice; customers are forced to give up something of importance to them so they can afford fuel prices. Some sacrifice vacations and one even considers finding a job closer to home.
Irving is surpassing IPSOS standards, but their profit margin is not increasing; this reveals that customer service and environment may not be as important to the consumer as researchers may have believed. Customers are not saying what they actually want out of an oil company other than lower prices. Customers do not feel as if they are being taken care of by the government or by the oil companies. Until consumers feel safe and secure they are not going to be happy with the brand.
Meaning Map Critique
Exhibit 1 does not show enough data to get a full consumer insight. Research about the consumers’ opinions is depicted, but the only problems shown are price and power. There is another factor missing because if consumers only cared about price they would just go to the cheapest gas station, but brand loyalist do not. Why do some people choose to be loyal to the Irving Oil brand and why do others choose not to be? The...