Published by MBA Skool Team, Last Updated: December 05, 2016
Marketing Strategy of PetroChina analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on PetroChina marketing mix, help the brand succeed.
PetroChina marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the PetroChina Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
PetroChina Product Strategy:
The product strategy and mix in PetroChina marketing strategy can be explained as follows:
PetroChina offers almost all the products in the petroleum and petrochemical industry. It has a well-developed business model involving exploration and production of natural gas and crude oil. PetroChina basically deals in basic petrochemicals as well as derivative petrochemicals. These chemicals are further used in the industries such as packaging, printing, insulation, construction, automotive etc. refined products involve jet fuel, lubricants, paraffin, gasoline, diesel etc. Since the company operates a pipeline storage and network system linking 26 different regions it is the largest service provider in Chine for gas and oil. This gives an overview of the products in the marketing mix of PetroChina.
PetroChina Price/Pricing Strategy:
Below is the pricing strategy in PetroChina marketing strategy:
PetroChina maintains the pricing policy that is suitable to its investors as well for the company.
It is 86.5% owned by the and hence its major client is Chinese government. Now since it is highly dependent upon its resources PetroChina has kept a flexible pricing policy, in its marketing mix, which can successfully meet its consumer demand. Although revenue of the company is huge it is not showing the upward trend since the year 2012. Also even though output of crude oil is increased by 1%, the revenues from refineries have remained constant over the last year 2015.
Following is the distribution strategy in the PetroChina marketing mix:
All these reserves and refineries of PetroChina lie in China itself. It employs intense and technically proficient distribution channels in the transportation of oil and natural gas. Since 2005, PetroChina has adopted certain modified policies and expanded in oil and gas assets worldwide. It has 28 refineries and an entire network of pipeline on its own.
PetroChina has wide chain of distributors, wholesalers and retailer across 1790 service stations under the ownership of the company and more than thousand franchise owned stations run by the third parties selling diesel and gasoline.
PetroChina Promotion & Advertising Strategy:
The promotional and advertising strategy in the PetroChina marketing strategy is as follows:
PetroChina being a public company does rely highly on the promotion. But still it carries an attractive logo representing a sunrise on a petal based creative design. The colors that are used are yellow and red which are considered auspicious in Chinese culture. PetroChina maintains its own websites which provides all the relevant information public to its investors or any interested personnel. Its promotional activities are mostly handled through print and online media. This summarizes the marketing mix of PetroChina.
PetroChina is one of the largest Chinese companies in terms of revenue. It’s a key player in in production and distribution of oil and gas in china. It also has its presence in production, development and marketing of crude oil. Moreover, storage and marketing of oil products, derivative chemicals and primary petrochemicals bring much of the revenue to the company. PetroChina is ranked at 8th position in the world in the list of public companies. It employs the most advanced and researched technology to promote efficient utilization of fossil fuels and green development.
It conducts research on utilization of water soluble gas and geothermal energy. PetroChina has also increased its reach in terms of resource evaluation and industrial testing of bio-diesel.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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