Published by MBA Skool Team, Last Updated: December 21, 2016
Marketing Strategy of Petronas 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 Petronas marketing mix, help the brand succeed.
Petronas marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Petronas Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Petronas Product Strategy:
The product strategy and mix in Petronas marketing strategy can be explained as follows:
Petronas is catering to the needs of people in more than 35 countries. They have products catering to individual needs of fuel and gas, enterprise and industries’ needs, petrol and diesel requirement for individual consumers as well as natural gas for public and domestic use. Petronas are the only company catering to industrial as well as domestic needs of customers. The Petronas Group comprises of 100+ wholly owned subsidiaries, some partly owned outfits and more than 50 associated companies. Thus the product strategy in Petronas marketing mix is basically the fuel and its by products extracted and distributed by the company.
Image: company website
Petronas Price/Pricing Strategy:
Below is the pricing strategy in Petronas marketing strategy:
Economy of a country, transactional costs as well as mining cost contribute a lot to the pricing of products in the petroleum sector.
Hence, primarily the pricing in the Petronas marketing mix is dependent on factors like government prices, crude oil prices & demand for fuel. Many countries impose heavy taxes on gas and oil. Government being the main decision making body monitors the oil and gas prices as per international pricing levels. Any increase or decrease in pricing greatly affects oil companies, and thus for Petronas as well.
Following is the distribution strategy in the Petronas marketing mix:
Petronas has successful operations in 35 countries. They are growing substantially in the European region but owing to tough competition they need to strategize their business appropriately. Also as Petronas are headquartered in Malaysia, they occupy a huge portion of the Asian market.
Over the years, with the aim of global expansion, the company has constantly increased its global footprint in terms of exploration, distribution and market reach.
Petronas Promotion & Advertising Strategy:
The promotional and advertising strategy in the Petronas marketing strategy is as follows:
Oil and Gas being a very essential requirement does not require a lot of promotions. Especially in the Asian countries as they have a huge customer base and they being the only trustworthy and profitable Oil and Gas Company they do not need promotions. The only place they pay for advertising are at gas stations where most of their customers are frequent visitors. Petronas has actively sponsored racing events and has been a face of many events that occur across the world. Malaysian Grand Prix is a major event where Petronas actively sponsors the races. Hence, this concludes the Petronas marketing mix analysis.
Petronas, headquartered in Kuala Lumpur is a Malaysian Natural Oil company which was founded in the year 1974. It is the largest multinational corporation as per Fortune 500.
It is one of the most profitable and largest corporation in the world. Petronas is recently been identified as one among the seven sisters by financial times.
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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