Emarat petroleum is one of the leading and one of the most respected companies across the United Arab Emirates. It is leading company in selling of the oil products. The company’s product includes various types of automotive lubricants, industrial lubricants, and marine lubricants. Now in the automotive lubricants difference types of fuels like petrol engine oil, Diesel engine oil, gear and transmission oil, brake fluid and multipurpose grease are includes. Now the industrial lubricants include several types of emOils and Hydramax. Hydramax is a processed type of fuel which is very useful for the industries. Marine lubricants are the type of fuels that are used in the engines of the marine vehicles. Apart from petroleum products, Emarat also provides various types of services like it runs continence stores called Emarat supermarket, bakery, car services, and cafeteria. The headquarters of the company is situated at Dubai, United Arab Emirates. (emaratmisr.com, emaratmisr)
The strength of the company is that the Emarat petroleum is surrounded by the well – established and well maintained and credited organizations. In addition to these, the trademark of the company is that it is determined to provide its customer with highest value of the products and services. The operations and the processes conducted by the company are also supported and surrounded by the excellent infrastructure, excellent operational strategies, and superior training program for the employees, its marketing plans, and so on. (Emirates)
The weakness of the company is that it is not ruling alone across gulf countries for the petroleum and other such products. It faces competition from the companies like Emirates natural oil company and Abu Dhabi National Oil Company
The need of the customer is to get petrol or diesel which holds superior types of quality and makes the engine life good. For that the Emarat provides high octane petrol which makes their vehicle life better. Apart from getting highest quality of the fuel, the fuel should also be cheap and efficient. So Emarat makes constant efforts to meet their demands.
Existing segments and segmentation
Segmentation means division of the total market into small parts or may be segments which are small enough that they could be individually be executed, maintained and accessed. Segmentation generally takes place when the market of the company is very large and it is hard to maintain the strategies. (Emirates)
As mentioned above Emarat makes three different types of fuels for the different segments of the market. The primary segment is the vehicle users. Companies provide various types of fuels like petrol, diesel, gasoline etc. Here in the petroleum section, company also provides different types of petrol depending upon the quality.There are different type of laboratory modified petrol for average cars and two wheelers. And apart from this if a customer uses a sports car or some kind of exotic cars then there is different kind of petrol available for them. The users can choose the product which is the best for them and then they can purchase from it. Now the company also provides the industrial fuels which aregood for running machines in the industries. Here also there is variation in the types of fuels depending upon the heavy or light machinery. And lastly company also manufactures the marine fuels. This type of fuels is used in large ships, passenger ships, cargo ships, steamers, hovercrafts and other such marine vehicles. (emarat.ae)
Emarat Petroleum being a company of the oil industry has many prospects for marketing their products. They area company which specifically serves the purpose of marketing the oil and they do not indulge in drilling which places them in the retail sector. Emarat Petroleum is based in UAE which gives it a factor of advantage considering the resources it is provided as it is established by the government. Every person driving a vehicle is a potential customer but some of its products can only be used in specific segment or industries only. To expand its customer base, it can choose to provide more quality services like fast services, waiting area for people servicing their vehicle.
They can also provide more services in their petrol pumps which provide recreational services for the children that are accompanying the parents when they arrive for services. Special cards should be introduced for filling petrol in which cash need not be handed personally and it can be deposited as balance which saves the time for people. General products for car/home use and food packets can be sold at petrol pumps to provide convenience to people. ATM services can also be provided at the pump by aligning with a specific bank. The products Super (95) and Super (98) should be provided with offers related to low prices at a bulk purchase as they are used for naval ships and other special purposes.
The oil marketing industry has many players in UAE currently which makes It highly recommendable for Emarat to initiate an advertisement campaign over printed media like newspapers or digital media like television. This will provide the company with a cemented brand image. The new services introduced at the petrol pumps should be included in the advertisement campaigns to increase brand knowledge among people. Providing offers for bulk purchases is recommendable for certain days of the week. Emarat can also introduce new products which can include highly refined petrol of superior quality which enhances vehicle performance is an option for new products.
The increase in the demand of petroleum in the Dubai industries and companies , as well as other plants have provided an enormous opportunity to the Emarat petroleum services to provide its product in the maximum companies. The major problem that poses in front of Emarat is reaching the companies and ensuring that the product is provided on time and its quality and other offers satisfies the client (Lev & Murphy, 2007).
The strategies and plans developed for improving the quality of the service that they provide have to be analysed on a pivot level before implementing it on large basis. The promotion of the company is also necessary to maximize its reach to the number of customers across the globe and this serves to be another P of marketing mix that refers to the promotional element. The company needs to obtain customized offers and concessions after evaluating the consumption from its contracts and orders from the current customers (Petit & McEnally, 1985). This offer would not only serve to attract more customers, but also lead to considerable amount of increase in sales from the long term perspective. For example, the petroleum industry that is the potential customers of the company involves daily consumers and few companies that purchase in bulk. So, for the daily consumers, they can develop various schemes that combine with the purchasing of petrol at the station. This involves providing food coupons for the bakeria, that is the cafeterias existing at the station and coupons that provide free service or concession on the use of various other services that is the automated car wash, change of oils, lubricants, etc.
The element of the marketing mix that needs to be focussed on a large scale here promotion of the service and merging it with attractive offers and schemes that would provide them with a niche over the other petrol service stations.
New marketing mix proposal
The marketing mix refers to creating plans, strategies and analysis to increase the sales of the product and result in the growth of the business. The standard marketing mix has been developed by Jerome McCarthy in 1960 and is been widely adopted by the market researchers cross the globe. It has four P’s in it and they are namely (Kotler, 1964):
• Product- It refers to the needs and wants of the customers that they expect the product to fulfil.
• Price- It refers the cost of the product and service that the company provides to the customers.
• Promotion- It refers the advertisement and spreading awareness about the people among the masses.
• Place- it refers to the distribution of the product and service, means used for that and the ease in the method of availing the product to the customers.
Here, for the Emarat petroleum, we need to develop a plan that adopts mix marketing and involves considering the importance of obtaining and understanding customer needs and demands accurately and this serves to be the first aspect of the marketing mix, that is, the first P of marketing mix that refers to the product. It also needs to focus on the convenience that they can provide to the customer in terms of the delivery of their order and this refers to the 4th P of marketing mix that is related to the place. With the proper understanding of the above two elements, Emarat needs to develop and implement strategies that would provide the best combination of the above two elements.
The research can be conducted as a primary research in which the researcher would collect and evaluate data of his own. Also, most of this data is researched and calculated by the researcher and formed into graphs and charts and thus turned into quantitative data. The research is usually done with the help of questionnaires, surveys and interviews that would help the researcher in finding answers that would be able to help the researcher in finding more appropriate and relative results.
In this case, the research would be carried out by a primary research, which would then be supported by secondary research as evidence. Emarat Petroleum is one of the biggest petroleum companies in UAE which makes it one of the most popular choices for Emiratis. In this context, we would take surveys of 10 customers and ask them about different aspects of Emarat Petrol which would give us an idea about the current market scenario of the company.
1) Gender: Male, Female
2) Age : 18-30, 31-40, 41-50, 51+
3) Which vehicle do you drive?
4) What is your occupation? (student, entrepreneur, service, others)
5) Which petrol do you use?
6) What is the most important factor when you choose a company for petrol? (Quality, Price, Reputation, Credibility)
7) What is the frequency of your petrol refill?
8) How much would you spend for 1 liter of petrol?
9) What are the purposes for which you use petrol? (Industrial, Marine, Personal)
10) What other services that you would want Emarat to introduce in their petrol stations?
While most of the customers are Males, with a percentage of 75%, most of the drivers seen around UAE are men. Beyond this, some of the customers are females with a a minority of 25% and most of them drive cars for personal use as mentioned below.
As shown in the figure, almost 50% of the people use petrol for their personal use, while the second highest majority is of people using petrol for Industrial purposes with at 30%. They are followed by people who use the petrol for Marine activities ay 20%. This proves that there is a segment each for each one of the users in Emarat.
Moreover, the criterion which is used by the users, for selecting a petrol company is based on price, quality, credibility and reputation. Most of the companies that are in the petrol sector have to take care of the above factors.
It was also apparent that the people who worked in service sector have the highest usage in UAE , while people belonging to the student section are the second highest number of users. Furthermore, entrepreneurs are the third largest users in UAE.
Also the above figure represents that regular refill makers are 32% and the second largest user limit is 28%. The third largest frequency is at 25% of rarely refill makers.
The secondary method of research includes the sources of research which have predefined data about a research. This research method is opted at times when primary research is not possible or resources are not available. Secondary research utilizes research data which is readily available through books, journal articles and past research papers. This method of research is opted for its easy nature as sources of data have to be found through either a library or through the internet. It is not always ideal to adopt the secondary method of research because at times the exact data as required for the research might not be available through the sources of readily available data which reduces the accuracy of the research which is critical to be maintained at times. Secondary research is critical at times when literary sources are to be used and it is necessary to make sure that the sources utilized in the research are credible in nature.
(n.d.). Retrieved November 9, 2014, from emarat.ae: http://www.emarat.ae/index.php
emaratmisr.com. (emaratmisr). Retrieved November 9, 2014, from Products: http://www.emaratmisr.com/
Emirates. (n.d.). Retrieved November 9, 2014, from emarat.ae: http://www.emarat.ae/includes/about/fullstory.php?id=469¤tItem=true