Strategic Marketing Bp

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Strategic Marketing

DEEPWATER HORIZON INCIDENT

WORD COUNT: 6000
Executive Summary

On April 20th 2010 bp had a major oil spill off the Gulf of Mexico coined the “Deepwater Horizon Incident” in which eleven (11) person’s loss their lives. This incident negatively affected the company’s brand and bp brand equity plummeted by $7.4bn, representing a 61% fall (Brand Finance 2010).

BPTT which is a subsidiary of bp Global had to treat with the negative impact of this crisis on the local market while keeping its reputation, bp brand and local aspiration alive and treating with any negative fall-out of the event.

The local aspiration encompasses bp brand values of wanting to be progressive, performance driven, innovative and responsible (appendix 2) as stated: “We are pioneers within the BP global Group with a distinctively Trinidad & Tobago identity. In delivering extraordinary business performance, we will actively participate in the development of the country by positively impacting the life of everyone who works for the company, every citizen and the global environment” A mounted crisis response was necessary which included stakeholder engagement, responding to negative publicity, relationship management, brand management and brand equity to combat the effects of the incident in Trinidad and Tobago.

The following pages seeks to analyze the bpTT position relative to its brand values and aspiration and make recommendations for dealing with future high risk incidents on the anniversary of this event having occurred. Table of Contents

Executive Summary2
1 Introduction4
2 Crisis Response to Deepwater Horizon6
2.1 The Dilemma – Negative Brand Equity6
2.2 The Social Media Response7
2.3 Relationship Marketing and Stakeholders8
2.4 Marketing Research Conducted10
3 Did BP get it Right?12
3.1 The Corporate Directive12
3.2 Did the social media campaign work effectively13
3.3 Brand Equity – Can we live up to the brand values14 3.3 Understanding the B2B relationships and stakeholders15 3.4 Findings of the Research and actions plans developed16 4 Recommendations for future action18

4.1 Mapping the environment – micro and macro18
4.2 Crisis Communication Strategy19
4.3 Business to Business Marketing20
4.4 Brand Management for the future22
4.5 Marketing Information System23
4.6 Green Consumerism26
5 Interdependencies and reflection28
6 References30
7 Bibliographies31
8 Appendix33
Appendix #1 – Key Facts and Figures33
Appendix #2 - Core Values “What we stand for “34
Appendix #3 – “The Helios” bp Brand Logo35
1 Introduction

bp Trinidad and Tobago (bpTT) LLC is one of the largest producers of Gas to the domestic market and accounts for 25% Government Revenue and 10% of GDP (2009 statistics) for Trinidad and Tobago (see appendix 1). The company’s local aspiration seeks to positively impact the people and environment in which we operate.

bpTT is a pioneer in the Oil and Gas industry with 50years of experience and a strong brand. The company has a long established relationship and reputation with stakeholders and collaborates with the Government in shaping long term agreements such as the development of the Atlantic Liquefied Natural Gas (LNG) trains to supply gas to the markets they serve. The company therefore prides itself as being Market Driving (Hollensen S, 2005) and continues to lead the energy industry locally in many aspects including Brand management and corporate social responsibility.

It is on the backdrop of this history bpTT guided by Communication and External Affairs (C&EA) was able to respond to the tragic incident of April 20th 2010 where 11 persons loss their lives and a massive Oil Spill occurred off the Gulf of Mexico – “Deepwater Horizon”.

Coming out of this incident bp corporate image suffered negative brand equity. It was quoted in Branding Strategy Insider July 19, 2010 “BP will...
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