4 elements of marketing mix and how there apply to retail petrol outlets
As of December 2010, there were 207 petrol stations in Singapore. These stations are owned and operated by four major players in the petroleum retail industry. They are; Shell Eastern Petroleum Pte. Ltd (Shell), ExxonMobil Asia Pacific Pte. Ltd (Esso), Chevron Corporation (Caltex) and Singapore Petroleum Company (SPC). In this essay, we’ll be looking at how these four players apply the Marketing Mix in running their petrol stations across Singapore. Marketing Mix is defined as “A combination of the product itself, the price of the product, the place where it is made available and the activities that introduce it to consumers that creates a desired response among a set of predefined consumers.” (Soloman, 2011). Using the ‘Four Ps’ (McCarthy, 1981, p 42) of Product, Price, Promotion and Place is probably the best way to express it. Each element of the ‘Four Ps’ will affect each other, and they must be used together in combination to satisfy customers need. Marketing Mix
Marketers use a combination of marketing tactics from the marketing mix to develop marketing strategies. The marketing mix is a set of controlled variables that formulate the strategic position of a product or service in the market place. The primary goal of marketing is to optimise the marketing mix, offering the best possible combination of the four P's to maximise the effectiveness of marketing efforts. Product
Difficult to enter the petol retail market
Retail petrol markets do not have room to be compitive to a certain extent. There is a high market concentration of petrol in Singapore because that is a lack of independent players. A petrol retailer requires a number of petrol stations located in Singapore to be a viable player in Singapore. This makes it difficult for new players to enter the market today. The four players are vertically integrated with their refineries here in Singapore. This save transportation costs. Subject to crude oil controlled by exporting countries. A new player need to manage its petrol inventory in short amount of time to avoid high storage cost. Market structure and conditions of retail petrol in Singapore is pro- competitive.
3 level core actual and augmented. Petrol is a consumable product. It is a non durable good that provide for a short time before it need to be refueled. Petrol is the main product considered a convenience product as it is non- durable good which consumers frequenty purchases with little or no effort. Some petrol players introduce new products such as fuel with higher octane rating that would benefit your automobile. More information under promotion later on. The core refers to the benefits for the customer.
The actual product is petrol.petrol has various level of octane ratings. Octane rating is a standard measure of motor fuel. The higher the number the more compression the fuel can withstand before detonating. Depending on the type of engine the customer uses, a fuel with a higher octance rating when use to power high-compression engines can lead to better performance. The pumps at the petrol station provides fuel for your vehicle. The pump service attendant who assist you with refilling your vehicle. Due to vehicle engine specification different grades of petrol are not interchangeable. Leaving less room for substitutes. The core product of petrol is to help run vehicles. There are different grades of petrol RON 95 accounts for the largest in petrol sales in Singapore market. Augmented product is the petrol station as a whole. Depending on the size and location of the petrol station, sometimes there maybe additional facilities included at the station. More details under the Place header.
Petrol prices always undergo fluctuations. Mainly due to taxations in Singapore. Price is the value that customers use to exchange to obtain a desired product. The price is...
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