Marketing Strategy of SHELL – SHELL Marketing Strategy: Shell is an international energy company with expertise in the exploration, production, refining, and marketing of oil and natural gas, and the manufacturing and marketing of chemicals. It was established in 1907 after the merger of two businesses Royal Dutch Petroleum Company (a public limited company from England) along with the Shell trading and transport co. Ltd. The company is officially called Royal Dutch Shell Plc. Although it is famous for its the name “Shell”. Shell is the fifth-largest energy and oil business in the globe as measured in terms of revenue (2015-16 figures).
SHELL At A Glance – Marketing Strategy of SHELL
Company: Shell plc
CEO: Ben van Beurden
Founder: Hugo Loudon
Year founded: February 1907
Headquarters: London, United Kingdom
Annual Revenue: US$261.5 billion
Profit | Net income: US$20.6 billion
Number of employees : 80000
Products & Services: Conventional fuels for road, Aviation and Shipping; Low-carbon fuels such as Biofuels, Renewable Natural Gas (RNG), Hydrogen and Electric-vehicle charging, Lubricants, Bitumen, Sulphur and Petrochemicals
SHELL Fun Facts: In 2012, Greenpeace activists shut down 53 Shell stations in the United Kingdom to protest their drilling in the Arctic.
Marketing Strategy of SHELL
SHELL’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of SHELL? Let us discuss.
Segmentation, Targeting, Positioning – SHELL Marketing Strategy
Shell utilizes a lot of geographical segments strategies to work in partnership with its customers. Naturally, as a company from their industry of Oil business, they are a product that is popular and in demand all over the world. Therefore, they must focus on geographic regions to sell their product.
A differentiated targeted method is utilized by the business to meet the demands of customers from the respective segments. They offer various value-added services that allow them to be in a position to distinguish their business from others in the same market.
It employs the concept of value-based positioning strategies to establish relationships with communities and organizations through its products and services across the world. With greater differentiated offerings and more value generated, thereby positioning the company more effectively.
SHELL Mission Statement
“To work closely with Partners, policymakers, and customers in order to advance efficient and sustainable use of energy and natural resources”
SHELL Vision Statement
“To meet the energy needs of society in ways that are economical, socially and environmentally viable today and in the future too”
“You can be sure of Shell”
Competitive Advantage – Marketing Strategy of SHELL
Research and development: The expenses of the company for research and development are more than 1050 million in 2016. It performs research via technology centers located in Canada, Germany, India, China, Norway, the Netherlands, Oman, Qatar, and the USA. Shell has around 12000 patents granted and pending applications.
Strategic alliances and partnerships: Collaborations and partnerships helped the company gain expertise in various economies as well as expand its technical and service delivery expertise. Some of the collaborations that have been successful include China National Petroleum, Intel, Cyber Hawk, Gordon Murray Design, Geo technology, Gazprom, and many others.
Diversified Portfolio of Products Portfolio: Its presence in diversifying businesses aids the company with the mitigation of risk due to price fluctuations and exchange rates.
Constance and confidence Due to its constant delivery of quality goods and services for a prolonged period over time Shell earned the confidence of clients. In fact, many customers choose the Shell outlet over others.
BCG Matrix – SHELL Marketing Strategy
Shell is a business that operates in the downstream, upstream, Projects and technology as well as Integrated Gas and new energies companies.
Its downstream and upstream business is a highlight within BCG’s matrix. BCG diagram, however, Projects and technology, as well as Integrated Gas & new energies business, is a red flag on the BCG matrix since these are overseen by British Petroleum and other companies within the sector.
Distribution Strategy – Marketing Strategy of SHELL
Its integrated and collaborative cost-effective value delivery system to deliver its services and products across the globe helps the business in staying ahead of competitors.
Different functions of the company are integrated to communicate in real-time to discover the most promising potential markets and to make the product accessible to customers via the closest refineries or manufacturing facilities of third-party suppliers.
Brand equity – SHELL Marketing Strategy
Shell is ranked 50 on the list of 2000 top global brands published by Forbes publication. Shell has been valued at 210 billion dollars in accordance with its market method of capitalization (of May 2016).
A strong association with sports events such as Formula One, various racing events, and its distinctive and ever-changing logo has contributed to its increasing recognition in the market.
Competitive Analysis – SHELL Marketing Strategy
There is a small number of companies operating in the market within the field due to the huge technological and infrastructure costs of establishing the business. Additionally, the barriers to entry for this business are extremely steep. But once a business is in the market, it will only survive if it has a high volume, which can increase the level of competition.
Its competitors include British Petroleum, Z energy, OMP, Exxon, etc. The companies in this sector collaborate with companies that are not related to competing against their rival firms.
Market Analysis – Marketing Strategy of SHELL
Industries that operate through shells face challenges including government regulations, non-renewable sources of energy and fluctuating prices, changes in exchange rates, shifting lifestyles and rising costs for raw materials, and the limitation of resources.
These elements are hindering the expansion of companies within the sector, while forward integration and backward integration are helping businesses in the sector to adapt to the evolving demands of customers.
Customer Analysis – SHELL Marketing Strategy
Shell’s customers Shell are private as well as government-owned organizations (in the B2B market) that deal in energy and oil products and related products around the world.
In the Business to Business (B2B) section, It provides businesses with transport fuel, power to light and heat, lubricants that can be used to make other products and to keep engines running efficiently, and the petrochemicals needed for the production of everyday items.
In the retail segment, Shell’s customers include auto service outlets as well as oil pumps.
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