IMC

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IMC

  1. 1. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis) Name: Student Number: Date: Academic Year: TABLE OF CONTENTSSr no Contents Page No
  2. 2. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis) 1 Brief introduction to the report 4 2 Context Analysis 6 2.1 Internal audits 6 2.2 External audits 7 3 SMART marketing objectives of the proposed communication plan 11 4 Proposed marketing communication strategies 13 5 Implementation and action plan 15 6 Control and evaluation of the proposal 17 7 Budget sheet 18 9 References 191. Brief introduction to the report:Over the last decade or so British Petroleum has faced a lot of criticism in regards to theissues that is have risen due to issues revolving around the corporate social responsibities Name: Student Number: Academic Year: Page 2
  3. 3. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)(CSR), these issues have and led to BR facing social agendas and leading to poor publicopinion and a negative PR, which has eventually questioned the social standing of thebusiness.The role of BP is often highlighted in stark contrast to companies that have been accused oflobbying intensively against efforts to mitigate the risk of global warming. Alongsideheated debates about global environmental issues and corporate responsibilities in thatrespect, the last decade has also witnessed the emergence of a potentially much wider andbroadening social agenda, oftentimes framed by the concepts of corporate socialresponsibility (CSR) or corporate citizenship.With the help of this report the researcher, would explore the different challenges BP facedover the years and most significant it would help and recommend BP with an appropriatemarketing communication plan, that would eventually aim to uplift the social status of BPin the market today.This report is prepared on the basis of the secondary information that is available fromvarious secondary sources, which includes official publications, market intelligence,journals, press reports etc.The entire proposed marketing communication plan would be structure as per the COSTACframework and can be best studied with the help of the illustration below: Name: Student Number: Academic Year: Page 3
  4. 4. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)A generic framework for marketing communication planningSource: DSH digital Shanghai Name: Student Number: Academic Year: Page 4
  5. 5. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)2. Context analysis:This section of the report would aim to best understand the cause of the problem thatoccurred at BP and with the help of this section the report would be able to set a welldefine and structure set of marketing communications aims and objectives that wouldaddress the situation promptly. The main of the situation analysis would be to answer thefollowing set of questions with great clarity:• What exactly went wrong?• Who takes the responsibities and accountability for what?• How does this situation affect British Petroleum?The report aims to answer these questions with the help of various internal and externalanalyses as discussed in the sub-sections below: 2.1 Internal Audits:What exactly went wrong?The internal audit section of the report would aim to address the following questions thatwould look into answering the question of what exactly went wrong, this question isanswered as below: Name: Student Number: Academic Year: Page 5
  6. 6. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)During the post-war period, the world has witnessed momentous increases in the value andpower of transnational companies. The emergence of global economic integration,commonly framed in the concept of globalisation, has also helped draw new attention toissues that transgress companies’ traditional concerns and responsibilities. Over the lastdecades, the business agenda has expanded by the inclusion of environmental issues, mostnotably the threat of global climate change, and more recently, growing concerns over thesocial impact of international commerce. The latter has brought to the fore increasingattention to social problems such as human rights violations, corruption, and transparency.Demands for openness and reporting on this ‘triple-bottom-line’ - economic, environmentaland social performance - have particular relevance for companies that operate in countriesand regions with poor governance and human rights records, such as BP, whose operationsand activities span across six continents.In brief, BP has received moderate negative attention on CSR issues, at least compared toother transnational like Shell, BP has in recent years received growing recognition in termsof its positive contributions to the CSR agenda, by demonstrating leadership, and in someways acting as a catalyst for changes in the oil industry as a whole. For instance, severalNGOs have publicly acknowledged BP for being among the first oil transnational toendorse a human rights policy, for its early position on the climate change issue, its exitfrom the Global Climate Coalition, and for setting new standards in areas such astransparency. That said, the following sections outlines in some detail incidents andaccusations raised against BP in relation to macro-CSR issues Name: Student Number: Academic Year: Page 6
  7. 7. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)Who takes the responsibities and accountability for what?The key responsibility for the situation at BP is the management.How does this situation affect British Airways?The situation has led to a lot of negative publicity for BP, reflecting as unethical traders. 2.2 External Audits:BP is one of the largest vertically integrated oil and gas companies in the world. Thecompany’sOperations primarily include the exploration and production of gas and crude oil, as well asthe marketing and trading of natural gas, power, and natural gas liquids. BP isheadquartered in London, the UK and employs about 80,300 people. The company recordedrevenues of $239,272 million in the financial year ended December 2009 (FY2009), adecrease of 33.7% compared with FY2008. The operating profit of the company was$28,152 million in FY2009, a decrease of 24.1% compared with FY2008. The net profitwas $16,578 million in FY2009, a decrease of 21.6% compared with FY2008.The external macro and micro environment had a big effect on the functionality and overalloperations of the business, which led to loss of consumer and significantly stakeholder Name: Student Number: Academic Year: Page 7
  8. 8. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)confidence on British Petroleum deliverables. The negative publicity for BP did well for thecompetition and they gained on competitive advantage, winning the trust and business ofcustomers that were long loyal to BP. In order to best understand the influence of micro,macro environment and the threats that could possibly be an area of concern for BP in thenear future can be best analyzed by employing one of best market analysis tool, which isconducting the SWOT analysis for BP,SWOT analysis: Strengths Weaknesses Oil spill in the Gulf of Mexico: BP is • Dominant market position Oil spill in the Gulf of Mexico: BP has a strong involved in one of the worst environmental market position. It is one of the disasters in the US. In April 2010, an world’s leading oil companies on the explosion occurred on the Transoceans rig basis of market capitalization and proved reserves. The company is the which was drilling and exploration well on largest producer of oil, the second BP operated license. The largest producer of gas and the rig was located approximately 41 miles largest overall producer of hydrocarbons in the UK. BP is the offshore Louisiana on Mississippi Canyon largest producer of oil and gas in block 252 North America • Vertically integrated operations • Vertically integrated operations • Explosion in the Texas refinery Explosion in the Texas refinery • Wide geographical presence Violation Name: Student Number: Academic Year: Page 8
  9. 9. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)• Wide geographical presence of tax laws in Turkey Opportunities Threats• Acquisition of Devon Energy’s assets • Saturation of resources in the North Sea Brazil, Azerbaijan, and the US • Instability in some oil-producing deepwater regions• Gulf of Mexico • Environmental regulations• Oil and gas exploration projects Risks • Risks related to exploration and related to exploration and production production activities• Investments in the alternative energy • business Threat of a takeover activities o business Name: Student Number: Academic Year: Page 9
  10. 10. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)3 SMART objectives of the proposed communication plan:The report keeping the findings from the internal and external audit above has proposedmarketing communication objectives that are based on the SMART framework of settingmarketing objectives these are discussed as below:S- Specific:The first object of the proposed marketing plan is being very specific to the problem, whichin this case would be: • Working very closely with the R&D and the other teams like HR, Testing etc ensuring that all the compliances are met regularlyM-Measurable: Name: Student Number: Academic Year: Page 10
  11. 11. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)The second objective of the research would be to measure the changes and theimprovements. This objective is as follows: • Addressing the general public with the correct and true scenario of the blunder that occurred.A- Achievable:The objectives that are set by the business are completely achievable, and is something thatthe staff and management at BP can achieve easily over a set period of time.R- Realistic and Relevant:The objective that are set to achieve the desired success from the marketing communicationplan should have objectives that that not only relevant but are very much realistic to achieveover the pre-define period of time with the available internal and external resources.Keeping this into consideration the next object is: • Emphasizing on the current state of operation for BP, emphasizing on the achieved objectives in different spheres of the businessT- Time based:All objectives set should always be formulated to be achieved and the outcomes deliveredwithin a well defined time, this makes the objective more challenging and compelling to Name: Student Number: Academic Year: Page 11
  12. 12. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)achieve, like in the case of BP the objective discussed and described above are set to bereached within a time frame of one year.Further to this the main audience to these objectives and the outcomes becoming a successare discussed as internal and external audiences as below:Internal audience: • The global workforce of BP • Senior management of BP, at country and territory levels • shareholdersExternal audience: • customers • media, environment and human resources organisations. Name: Student Number: Academic Year: Page 12
  13. 13. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)4 Proposed marketing communication strategies:The word strategy originates from the Greek literature where the meaning stands to be theart of leading an army as cited in the work done by Obolensky and Sadlers (1998). In thecase of this marketing communication plan it would refer to the tools and tactics that wouldbe used and implemented to achieve the long and short term business objectives for BritishPetroleum.Pull strategy:The pull strategy would always aimed to target the end user customer, and this strategyprocesses to achieve the objectives through stages like generating levels of awareness, and Name: Student Number: Academic Year: Page 13
  14. 14. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)information exchange, it principally aims to influence and change the attitude of both theinternal and external audiences, and generates momentum in the process of enquiring andexperimenting, eventually leading to repetitive purchase behavior (Fill, 2002)BA with this strategy could:• Direct marketing• Use internet as a medium of bidirectional communicationPush Strategy:The push strategy concentrates on creating some additional values through value activities,these activities eventually leads to a repetitive purchase behavior among customers (Fill,2002), in the case of BP this strategy can be employed as below:• Campaigns that would enrich and push public relations• Capitalize on using media as a communication channelProfile Strategy:BP could employ this strategy by:• Regular media presence through press releases and other forms of communication. Name: Student Number: Academic Year: Page 14
  15. 15. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)• Getting involved in local support activities, encouraging campaigns, organisations that work in support of green environment.The above discussed strategies have their own unique advantages associated with them, andwith BP employing these strategies, differences in performance and customer attitudewould be profound and visible.5 Implementation and action plan:Promotional mix: Name: Student Number: Academic Year: Page 15
  16. 16. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)• Comprehensive media relations that are highly visible: BP should create clear communication with both its internal external customers ensuring everyone is clear of the businesses mission as well as vision o To develop media advocacyThe strategy employed would be a mixture of pull, push and profile strategy. The employedtactic would be setting a new information based website, which would act as a channel tointeract with media reporters and also act as a face to issue regular updates about thebusiness.• Paid media campaigns: the strategy that would be applied would be a mixture of push and profile strategy, media channels based on GRP, which is based on reach and frequency are selected and the different channels for media exposure.Organizing Media-Press releases:BP should continually organize to have press release to ensure they have good mediarelation with the key spokespersons in the industry. This would also act like a positivecommunication channel for BP, ensuring that everyone is aware of the ethical standardsfollowed at BP Name: Student Number: Academic Year: Page 16
  17. 17. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)6 Control and evaluation of the proposed plan:Measurement and continual evaluation is one of the key characteristics of any plan, it isvery important that the proposed pan for marketing communication is evaluated and therequired changes made regularly and promptly to ensure that the there is no deviation fromthe main objectives of the proposed plan. The control and evaluation for this proposed planis as discussed below:Process measures:• Ensuring that the communication programs are executed on time and within budget• Checking media content analysis, this would check for accuracy, impact, reach and balance• Checking for stakeholder engagement, business partnership and response from the influencers• Analysing and studying media influence and impressionOutcome measurement:• Ensuring that proper plans are in place in regards to issues relating to environmental concerns Name: Student Number: Academic Year: Page 17
  18. 18. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)• Taking regular employee feedbacks and conducting HR audits in order to make sure that the workforce is efficient and complacent• Monitoring customer feedback and developmental suggestions and bringing them to implementation at regular intervals. Name: Student Number: Academic Year: Page 18
  19. 19. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis) 7 Budget Sheet: Total budget allocation £15million for the marketing communication Campaign:Marketing communication Proposed budget Total activity Media relations £1.5 million £ 1.5 million Paid Media campaign TV: £5.8million £ 5.8 million Radio: £0.75 million Print: £ 2million Outdoor: £0.5 million Online: £1 million Media relations £0.7 million £0.7 million Working with other £1.5 million £1.5 million organisations Measurement and £1.25 million £1.25 million evaluation Name: Student Number: Academic Year: Page 19
  20. 20. Integrated Marketing Communication Marketing communication plan (British Petroleum a case analysis)8 References:• Fill C (2002), Marketing Communications: Contexts, Strategies and Applications, Harlow, Pearson Education Limited.• Obolensky N (1998), Strategy Formation Models; In: Sadler P, Eds, Management Consultancy: a handbook for the best practice, London: Kogan Page Limited. Name: Student Number: Academic Year: Page 20

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