Bp Marketing Problem After Oil Spill

British Petroleums trade Problem Florida International University Summer 2011 Alex Del Veccio Yudith Torres BP Marketing Problem In April 20th, 2010 integrity of the worst purlieual inwrought disasters that were brought on by a men happened. We atomic number 18 talking about the British oil colour cover splash on the Golf Coast. The disaster non only affected the plants, animals and plurality living in the argona still also the image of the political party.British Petroleum has been successful on creating a powerful brand image, being authentic to the core values of its line of products and building the break away leave behind of their customers, now BP is nerve-racking to save what is left after the disaster. The disaster leads to many angry spate, including environmentalists, sh arholders and the general public to create campaigns to induce down the federation reputation. BP has been accused of 11 workers dead and 17, injured. The extent of the outlet is about the size of Rhode Island, zip crossways the northern Gulf of Mexico between the mouth of the Mississippi River and Florida.The vent runs wide, threatening the coastlines, and deep, traveling down the stairs about 5,000 feet of water and 13,000 feet under the seabed. The Deepwater Horizon well is leaking 5,000 barrels per day, shutting down fishing across the affected areas, damaging fragile ha piece of musicats and putting animals in peril. BP was also accused of trying to silence the scientists that were analyse the effects of the crude spill, not allo allureg publishing researches done for the family this clause was expressed in their contacts.The full situation has position BP with a bad corporate image in the entire world jumper lead to customer to refuse buying its products. This crisis has dissolver in a negative publicity, threatening the image of the company and having effects on people perception of the company and its products. BP has responded to the sluicet, trying to diminish the severity of the contamination, in a desperate effort not to lose its social legitimacy and seen to being irresponsible and dishonest with the public.These are a few of many pictures that were put out there by the media, making the problem even worse for British Petroleum, those images were directly associated with the corporation, death, contamination, social ir right, unhappy people. BP has a huge problem, they need to make people to stop associating those images with its corporation and products, and recover its good name again. Consumer Behavior Issues as a result of BP the embrocate spill Consumer attitudes toward BP products were badly affected by the fossil oil color spill there was not favorable horizon about the corporation resulting on the decline of consumer intentions to buy BP products.BP oil spill has impacted purchasing behavior, the spill rattled the company, causing the stock to lose about half its value and prompting Tony Hayward CEO to r elieve and be replaced by Bob Dudley, But the company was able to get the oil gusher stopped and has been pay to repair the damage to the local economy. The company is paying to cleanup an estimated of $20 billion, as a result the company temporarily suspending its dividend, in some(a) other blow to castors. The dividends were reinstated in February 2011.Despite the fact that many stick tos has showed that people has no intention to boycott or switch from BP brand ( (Harrison) the consumer perception of the company was reflected on consumer exitingness to invest on BP stocks, whitethornbe because many of them were normative influenced altering their behavior to meet public opinion expectations. Consumer cognisance has shifted dramatically when there is a catastrophe related to a big corporation such as British Petroleum, consumers has jointed forces and organized protests to show their disgruntlement with the corporation and pressing them to take full responsibility for the di saster.The oil spill has had effected no only on consumer attitudes towards BP products, but to other industries too. Approximately 71% of consumers were close up concerned about the safety of consuming seafood, and 23% reported they defecate reduced their seafood consumption as a result of the oil spill ( (Bianco) Consumer analysis Of British Petroleum after oil spill According to a tarnish Index check up on, (Index, 2010) British Petroleum public image went below Goldman Sachs (and enthronisation bank many feel contributed to the financial crisis in 2008). This Survey that came out in June 2010 show these findings. solitary(prenominal) Toyota who went through a massive recall shows worse. Many more surveys show that consumers were not please with British petroleum (eye, 2010) Following are s few notes from the article on the corporate eyes website (eye, 2010) * From an economist and YouGov survey When it comes to trusting BP to do the right thing in stopping the oil spill an d cleaning it up, 9% of respondents said they trust BP a great deal and 13% trust BP quite a bit while 20% have only some trust that BP will do the right thing, and another 20% said they have very little trust that BP will do the right thing.The absolute majority of respondents, 28%, trust BP not at all. The remaining respondents stated that they were not sure how they felt. * From the same Economist and YouGov survey 65% of respondents believe that BP and other companies involved in the oil spill are pointing the inculpation on others and avoiding responsibility while just 35% believe BP and other companies involved are doing whatsoever it takes to stop the spill and clean up the oil. * From a USA Today/Gallup poll 34% of the respondents rated BPs response to the spill as poor and 39% rated it as very poor.Only 6% rated BPs response as very good and 18% rated it good. * From a Pew Research cracker bonbon and National Journal Congressional Connection poll 44% rated BPs respon se to the oil spill as poor and 26% rated it only fair while 16% rated BPs response good and 3% rated it excellent. * From a CNN and Opinion Research Corp. poll 76% of respondents disapprove of BPs response to the oil spill and 24% percent approve. These surveys and many like them combined with massive protests and boycotts reshaped the Value of British petroleum as reaction to their stocks showed.In late June in 2010 British petroleums stock fell to under 28 dollars per share. This was a major drop from there yearly highschool of over 61 dollars per share in February in 2010. While the consumer trend for the oil industry is still in high demand, British petroleum still loss revenue loss due to poor public perception and also dis governed revenue from the oil spill and cleanup efforts. According to this story BP has it work cut out for them financially (JACOBSON, 2011) Almost $50 billion in lost market value. Its rivals stock is up almost 15 percent, while BPs has been down rough ly 25 percent.Shares that were worth $60 a piece on April 20, 2010, are worth $46 today (JACOBSON, 2011). * Sales of $24 billion of the companys assets to be set aside to armed service pay for claims and other costs. Gheit said roughly 10 percent of BPs production and reserves were sold farthermost year. Another $6 billion worth are expected to be sold this year (JACOBSON, 2011). * $3. 8 billion paid out in claims so far. Thats part of a $20 billion stemma set aside under pressure from the government last year (JACOBSON, 2011). * Liabilities could swell by tens of billions more.If BP is plunge to be criminally negligent (several investigations and reports have yet to be completed), the price tag could exceed $50 billion. (Contending their equipment and work played a major role in the cause of the accident, BP is suing Halliburton and TransOcean for billions of dollars as well. (JACOBSON, 2011)) However not all is lost for BP. As you look at the Global 500 (500, 2011) ranking of the top one hundred companies in the world. You will notice that six of the tops 10 are oil companies, including BP at number four.This not only shows that oil is a very profitable industry and in high demand despite calls for alternative energy characters over the past decades. Unless such an alternative energy source can come about and service the billions of people who demand energy the outlook in the oil industry will touch on to be high. Which also means the oil industry will continue to be profitable. When we also add into the factor that developing countries have increased demand for oil and ball-shaped demand for this resource is predicted to go from 41. million gallons per day to 86. 6 million gallons by the year 2025 (prices, 2010). I do not see consumer trends in oil consumption a problem for BP. This consumption signifier will be an advantage for BP. The bottom line is that BPs industry and products looks like they will be in high demand for the foreseeable future. H owever even though Bps product is widely used they are not immune from poor public perception. Since the oil spill Bp has been forced to sell stumble some assets (White, 2011) to pay for loss revenue, and pending lawsuits from the oil spill.BPs problems continue outside of its finances. In early 2000 British petroleum launched a new campaign called Beyond Petroleum. This campaign was targeted top the environmental conscious consumer. Bp cherished to become established as an environmentally friends energy company. While its hard to see if that campaign was successful regardless, any confirmative perception or equity acquired from that campaign was lost do the oil spill. Reinventing themselves as an eco friendly company looks to be a difficult task at this time.Moving in the lead With the environment a major issue in todays world it may be a good brain for BP to invest in research for safer more eco friendly offshore drilling technology. Another way for BP to win over the public interest is to come up with a cleaner alternative source of energy. Would it be ironic that a oil company invents an alternative energy that is safer and cleaner for the environment. The emotional element of BPs brand invokes bad feelings. With concerns about Global Warming and endangered species many feel BP broke its Brand Promise started by their campaign Beyond Petroleum.For now British Petroleums strategy should be to divvy up resources for research for the above mentioned. And also allocate resources to improving public perception. One example is their commercials with local business owners that were affected by the Gulf oil spill. They are give tongue to the consumers that they are standing by their mistakes. I would also advise BP to communicate to the public what changes they are making from organizational structure to safety precautions.BP may also look into working with eco friendly organizations and organizations like the World Wild Life foundation. Such organizations have voiced strong criticism BP after the oil spill. Working with these organizations would go far in telling the public they have turned over a new leaf. Marketing Recommendations for British Petroleum (prices, 2010) British Petroleum needs to have specific plan for each one of the possible scenarios they might encounter, the company took three months to stop the oil leak, and they are still working on the cleaning process.This shows that BP was not disposed(p) to face such a huge natural disaster they did not have a adventure plan appropriated. Its is very important than the fist reaction that company takes to resolve the problem is the most competent one, because that is when the media and public attention are more focus on the problem, and a prompt resolution will lead a faster recovery of the company image. BP should focus on mortification, taking full responsibility for the situation and its consequences.This strategy address public critique in advance and give the company a more significant public relations ground. After admitting and apologizing for the catastrophe, BP must take an action to avoid that is red to happen again. Creating more and secure ways to drill oil, the company needs to improve procedures, safety and competency to regain the lost trust from the public. BP need to regain their good mane, at the moment the company is find in the awareness set in the customer mind that it does mean that its products will be aim if people has a negative image in it.British Petroleum need to build positive feeling towards its corporation, one option is to develop green advertising, the company have invested million on it, but today they should put more emphasis on it. Create better image (social factor) by better approach to compensate those who have been affected. There were many people affected by the catastrophe, people from divers(prenominal) communities, they need to focus on the different groups of people they are trying to reach in pitch tr ansmit the message more efficiently failing to do will worse the problem.In order for people to place BP into their consideration set they need to believe that the company is reliable and responsible, in admission people must have good feeling towards the brand. They must invest a lot of coin in advertising, informing people what is plan to recover and it is being developed. Those ad must run as many time as its needed, to inform people that we are taking responsibility to backfire those ad claiming the contrary Show you care, that is the primary position British Petroleum must assume.The reality is that the rock oil Spill in deep horizon water in Mexican Gulf, in April 2010 has made a huge human, ecological and financial lost, and it has ruined the companys reputation. There is not way the company can go back in time and avoid what happened, but they can look forward and make the best out the situation. If BP can convince the public that they truly believe that its image will be reinstated, people will start bearing positive feeling towards BP. Bibliography 500, G. (2011). And the worlds biggest companies areRetrieved 2011, from Cnn Money 2011 http//money. cnn. com/magazines/ part/global500/2011/ Bianco, V. D. (n. d. ). Louisiana News . Retrieved from Louisianafoodnews. com. eye, c. (2010, june 4). The BP Brand Fallout Consumers Weigh In. Retrieved from corporate eye http//www. corporate-eye. com/blog/2010/06/the-bp-brand-fallout-consumers-weigh-in/ Harrison, M. (n. d. ). Wave Matrix. Retrieved from wavematrix. com. Index, J. C. (2010, hune 24). Survey BPS consumer perception sinks below Goldman Sachs. Retrieved from http//www. mediabistro. om http//www. mediabistro. com/prnewser/survey-bps-consumer-perception-sinks-below-goldman-sachs_b3951 JACOBSON, M. (2011, april 26). One Year Later, Where Does BP Stand? Retrieved from pbs. org http//www. pbs. org/newshour/rundown/2011/04/bp-one-year-later. html prices, O. (2010, July ). Retrieved from oilprices. org http//www. oilprices. org/ White, G. (2011, feb 22). BP to sell off North Sea asset. Retrieved from the telegraph http//www. telegraph. co. uk/finance/newsbysector/energy/oilandgas/8341366/BP-to-sell-off-North-Sea-assets. html