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European & International Marketing
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European & International Marketing
Marketing Mix Adaptation: Total’s Gas
Jean
Introduction
Total SA produces and markets fuels, natural gas and low-carbon electricity. It engages in the
exploration and production of oil and gas, refining, petrochemicals and the distribution of energy
in various forms to the end customer. The company operates through the following business
segments: Exploration & Production; Gas, Renewables & Power; Refining & Chemicals and
Marketing & Services. The Exploration & Production segment encompasses oil and gas
exploration and production activities. The Gas, Renewables & Power segment develops
downstream gas and low carbon electricity as well as the energy efficiency businesses. The
Refining & Chemicals segment engages in refining, base petrochemicals, polymer derivatives,
the transformation of biomass and the transformation of elastomers. This segment also includes
the activities of Trading and Shipping. The Marketing & Services segment includes worldwide
supply and marketing activities of oil products and services. Total was founded on March 28,
1924, and is headquartered in Courbevoie, France. [Forbes]
1
Aim
The Marketing Mix aims at covering the 4Ps (Product, Price, Place, Promotion) and expounding
the marketing strategy of a company. This document will elaborate the product, pricing,
advertising & distribution strategies used by Total on its gas.
Total’s Gas is dispensed through gas stations, therefore he has not a proper packaging and the
material also comes with services in their stations. This is why this “item” will be interesting to
discuss. However, we will only be focusing on refined petroleum, sold as oil gas to consumers.
Marketing strategies assists organisations with accomplishing business objectives and targets,
and marketing mix (4Ps) is the broadly utilised structure to characterise the procedures.
1st P: Product.
Total offers products and services for the field of Oil and Gas, Solar Power and Bioenergies. Its
item range incorporates safe and reliable cylinders, automotive lubricants, special lubricants for
racing cars and also for industrial purposes. Total offers a full scope of an item as a one-stop
answer for all modern necessities including Crumb Rubber Modified Bitumen Emulsions, and
Polymer Modified Bitumen. It has specific items in modern greases for concrete, synthetic
compounds, food and refreshment, and iron and steel industry. All out fabricates and supplies
most exceptional items, for example, Cationic Bitumen Emulsions for street developments. It has
been attempted, tried and perhaps the most encouraging provider for F1 racing cars.
Service stations.
Service stations offer so much more than a full tank of gas – they are genuine convenience centres
for mobility and transportation. Designed as one-stop shops, Total’s service stations offer their
customers customised services for every step of their journey, including meals, Bonjour shops,
access to different types of energy and digital solutions.
Thanks to their dense network of more than 15,000 service stations located in 71 countries, they
can welcome and have direct contact with more than 8 million individual and business customers
every day.
Being close to customers also means making ever-changing mobility trends easier for them. This
is why their service stations provide them with an increasingly wide range of alternatives to
conventional fuels, such as natural gas fuels, ultra-fast electric vehicle charging stations and
facilities for refuelling hydrogen vehicles.
2
A Digital Customer Experience
To make their customers' visit to their service stations easier, they are constantly working on an
extensive range of digital solutions. Below are just some of their latest innovations:
The Total Services app offers
a wide array of useful services
so the user can begin his trip
with peace of mind, including
a service station finder, a
geolocation tool and a Club
Total members’ area.
Total eWallet is a 100%
digital, connected solution
that enables drivers to fill up their tanks and pay for their purchases with just a few taps of their
mobile device. The solution is aimed at both individual and business customers of Total service
stations, bringing the Internet of Things to service stations that are now fully connected. Part of
the Total Services app, this new feature provides customers with a smoother, more streamlined
experience. Going into the store or using a conventional automatic pump is no longer a must –
drivers can now select their desired fuel directly using their smartphone, unlock the pump to fill
up their tank, choose their payment method and pay for fuel automatically and securely.
3
Product level, typology and quality:
Total sells a core benefit product; it is the fundamental value of everything. Petroleum products
include transportation fuels, fuel oils for heating and electricity generation, asphalt and road oil,
and feedstocks for making the chemicals, plastics, and synthetic materials that are in nearly
everything we use. Oil is a consumer product as well as an industrial product. Meaning, for
consumers, it is relatively inexpensive and has a uniform price, it is widely distributed, has a
standard quality and is frequently purchased. And for industries, it is categorised under raw
materials, because the oil is used to manufacture other products such as chemicals or plastics.
Total’s product has the function of performance quality, in other words, Total sells a product’s
ability to perform its function. However, numerous companies sell petroleum, this is why Total
accompanies the customer with services like
previously explained, they offer services within
their gas station and they offer useful services
through their app, Total Services. Therefore, with
this added value, they are more competitive.
Their product is the same sold everywhere, and
services provided by their gas station are the same
also.
Life cycle:
Regarding the lifecycle of Oil and Gas, the average lifespan of an onshore oil field goes from 15
years to 30 years. As explained by a 2015 article from the website Planet Energies, the life cycle
of oil and gas fields can be broken down into three stages:
-
-
-
4
Start-up (two to three years). During this
period, production increases gradually as
more and more wells are drilled.
Plateau production, when output stabilizes.
This stage also lasts two to three years, or
sometimes longer in the case of larger fields.
Decline, during which production falls at a
rate of 1% to 10% a year. When production
ends, large quantities of oil and gas remain
underground. Oil and gas companies are
therefore constantly seeking to improve recovery rates using enhanced recovery
techniques (see Close-up: "Developing Oil and Gas Fields"). Oil field recovery rates
range from 5% to 50%. The rate is higher (60% to 80%) for fields that produce only
natural gas, as its lower density and greater flow rate make production more efficient.
Product lines:
In sum, Total has numerous ranges of diesel and gasoline fuels to offer to consumers through
their service stations, each of these products has its particularities:
For diesel vehicles
-
TOTAL EXCELLIUM DIESEL GRAND FROID
o Available in more than 1000 stations next to cold regions, from December to March of each year
o The fuel can fight off cold up to -20°C
o Limits fouling
o 100% diesel compatible
-
TOTAL EXCELLIUM DIESEL
o Cleans the injectors of all kinds of deposits
o Protects the fuel system against wear and corrosion
o 100% diesel compatible
o The removal of 45% of existing fouling from the second fill.
o Regain engine power and performance in just 6 hours
-
TOTAL DIESEL PREMIER
o Only compatible with general-purpose cars and passion cars
o High-quality diesel fuel
o Allows the tank to be filled more easily and quickly thanks to an anti-foaming agent.
o
o
-
TOTAL DIESEL B10
o High-quality diesel fuel
o 100% diesel compatible
o It helps to reduce the vehicle's carbon footprint.
o Allows an easier and quicker filling of the tank thanks to an anti-foaming agent
o Maintains the cleanliness of the engine's fuel system over the long term
o Prevents rust and corrosion
o
5
Keeps the engine fuel system clean over the long term.
Prevents rust and corrosion.
Contributes to the reduction of greenhouse gas emissions (due to its reinforced biofuel composition: +3%)
And for gasoline vehicles
-
TOTAL EXCELLIUM 98
o 100% compatible
o Maintains optimum engine performance whatever the type of road or driving conditions thanks to its 98octane rating
o Thanks to its reinforced action, TOTAL EXCELLIUM SP98 prevents up to 99% of the fouling of the intake
valves of indirect injection engines and protects sensitive engine parts. It is also:

Up to 90% of the existing soiling in indirect injection engines can be cleaned

For direct injection engines a 79% reduction in injector soiling and up to 51% cleaning of existing
soiling
-
TOTAL SUPER PREMIER 95 - E10
o 100% compatible
o It keeps the engine components (valves, injectors) clean, compared to a non-additive fuel
o The latter contributes to the reduction of greenhouse gas emissions due to its biofuel composition
o TOTAL SUPER PREMIER 95-E10 also helps to reduce CO2 emissions by 4.3%
-
TOTAL SUPER PREMIER 95
o 100% compatible
o Keeps engine components (valves, injectors) clean.
-
SUPERETHANOL E85
o Only compatible with general-purpose cars and passion cars
o
o
o
It allows a 42.6% reduction in CO2 emissions
A specific tax system allows a lower price than other petrol
A Flex-Fuel vehicle can run on E85 super ethanol, SP95-E10, SP95 E-5, SP98 or any mixture of these fuels
in any proportion
Packaging:
The main packaging of gas could be its gas station, because, before
consumed by a consumer, gas is stocked in a gas station. However,
one could choose to stock it elsewhere before putting it in a gas
tank. A jerrycan could be used.
6
The jerrycan comes with regulation to guaranty its safety use. In the US, As of January 10, 2009,
all portable fuel containers are required to conform to two new regulations:
-
They must meet new federal Mobile Source Air Toxic regulations, based on the California
Air Resources Board's regulations.
They must meet the requirements of the Children's Gasoline Burn Prevention Act.
In the state of California, the following colours are mandated: red for petrol, yellow for diesel
and blue for kerosene.
And in Europe, The UN European Agreement concerning the International Carriage of
Dangerous Goods by Road (ADR) sets performance standards for packaging and specifies what
standard of packaging is required for each type of dangerous good, including petrol and diesel
fuels. The traditional jerrycan is available in UN-marked approved versions which satisfy the
requirements of the ADR.
Jerrycans have no advertisement purpose, it is sold everywhere, only mainly used by a small
proportion of consumers and is unbranded, though it can be possible to find company-branded
jerrycans. But the advertisement on the packaging would not be shown on a jerrycan but rather
on the gas pump or gas stations. To show the customer all types of gasoline and diesel fuels sold
here as well as their perks, the brand has created.
7
2nd P: Price.
Total’s price strategy is unconventional, they are extremely dependent on the prices of the market
and have to adapt all the time.
Being exceptionally affected by the changes in the costs in the worldwide market for unrefined
petroleum. Total receives different methodologies relying on the market price, demand and the
sector to which it is conveying its products and services.
The pricing strategy for Total is reliant on the cost of crude oil, demand and government valuing.
It is purchasing resources in LNG (Liquefied Natural Gas) and offshore oil. For its excellent
products, for example, supplies for modern purposes that incorporates boilers, large equipment
and so forth. The company has deliberately eliminated its customary techniques for power age
and changed to coal-terminated force plants for the age of intensity needed in the energy area.
What is important is:
-
8
Like most commodities, the fundamental driver of oil's price is supply and demand in the
market.
Oil markets are composed of speculators who are betting on price moves, and hedgers
who are limiting risk in the production or consumption of oil.
Oil supply is controlled somewhat by a cartel of oil-producing nations called OPEC.
Oil demand is driven by everything for gasoline for cars and airline travel to electrical
generation.
3rd P: Place.
Total is settled in France. This 92-yearold organisation has extended its
business worldwide through its serious
and developed distribution channels. It
works its oil sand venture in Athbasca
area of Alberta, Canada reducing its
operational expenses. Total has a few of
its stockists and wholesalers the nation
overdoing its deals generally as B2B. It
has its Research and Development focus
in Navi Mumbai which has been first of
its sort in quite a while other than France which is practical in offering specialised help and
explicit necessities of Asian Markets.
The company gives extreme business development and broad establishment uphold for its
merchants as far as site determination, preparing and advertising taking into account tapping and
serving customers of the separate geographical territories across the globe.
Total’ stores
As previously shown in the 1st P, gas
stations or service stations are where gas is
sold, they can be counted as part of gas’
packaging, but these stores are also a
product and service where Total meets its
“regular” consumers. These stores are part
of convenience stores because they have
extended hours, they are opened usually,
24/7, they are small, under 5 000 square ft.,
Total will try and sell other items
regarding the gas they already sell outside, like car-regarded items (motor oil, lubricants), but
also food (beverages, snacks) and more (books, coffee, toys, clothes). And most importantly, just
like convenience stores, prices are way higher than normal stores, because these stores are smartly
placed near roads without other types of stores.
9
The Total stores are a franchise, a service-firm sponsored retailer franchise system, meaning that
franchisers license individuals or firms to provide services under trading name and specific
guidelines.
These stores are available in 153 countries and will still sell the same gas and offer services.
4th P: Promotion.
Total makes the promotion of its brands
through different online web-based media
platforms, for example, Facebook, Twitter
and so forth. It additionally offers vehicle
tips, coordinates rivalries, tests making
buzz across its buyers a well as
understudies. It regularly pronounces
appealing prizes like Apple iPads to
numerous winners. Total participates in disconnected media such papers and driving automagazines grabbing the opportunity to increase its visibility amongst its prospective consumers.
The company also includes itself in CSR activities demonstrating for its partners and includes
them in keeping up the connections. It additionally does different exercises among the networks
that carry social and monetary upliftment to them.
The target audience of Total
Total’s target audience is pretty clear and simple. Total’s gas is intended for everyone owning a
gasoline or diesel vehicle (as well as compatible with one of Total’s fuel). On the contrary to
clothes brands or car brands, people don’t buy different brands of gas to brag are differentiating
themselves from others. People will mainly buy gas from another based on the cost of it or if a
perk from gas interests them, like gas not freezing in the cold, one of the gas Total sells.
Additionally, customers may choose Total’s gas because there is no other choice on the road. Or
in contrast, customers may choose Total’s service stations and their gas because they are fond of
the services provided and items, they can be found instore.
Advertisement
10
Total’s advertisements have pretty much two objectives. On the 1st ad shown above, the objective
is cognitive, meaning that it communicates a brand’s attributes or benefits, here the fuel cleans
the engine km after km. However, on the 2nd ad, the objective is effective, because the ad has a
purpose of adding itself to the consumer, it understands that someone might work hard in the cold
and want to help the person with unfreezeable fuel. Those kinds of ads are placed on billboards
next to roads, or might even be shown inside those gas stations, to incite people and try new fuels.
For these two ads, the message strategy is a product/brand communication, explaining Total’s
products benefits, as a one-sided argument, this is their creative strategy. The frameworks here
are part of the slice of life, the
product is the solution to the
problem, “gas frozen in the
cold”, “engine getting dirty
km after km”.
To cite another type of
advertisement, Total has put up; the following ad has been explained on Total’s website.
Total is launching its new international multimedia advertising campaign simultaneously in 21
countries on October 2nd 2014 to develop the Group’s brand awareness. The campaign highlights
Total’s operations in oil production, refining and marketing, as well as its role as a major player
in natural gas (50% of its output) and as the global number two in solar power, through its affiliate
SunPower.
The campaign provides a tangible illustration of the meaning behind the Group’s new baseline,
“Committed to Better Energy”, which emphasizes producing “better”, not “more”. In this way,
the Group is sharing its conviction that the path to a responsible energy future lies first and
foremost in energy that is safer, cleaner, more efficient, more innovative and accessible to as
many people as possible.
To help shoulder this commitment, a large number of Group employees were involved in
producing the campaign, and most of the scenes in the commercial were filmed at Total sites.
11
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