Marketing Strategy of Lukoil analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Lukoil marketing mix, help the brand succeed in the market. Let us start the Lukoil Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Lukoil marketing strategy can be explained as follows:
Lukoil is one of the leading Russian petroleum and energy companies, serving Europe and Asia. Lukoil deals in exploration and production of Oil and gas as a part of its marketing mix product & service strategy. Thereafter it manufactures and markets oil and petrochemical products like petrol and diesel, it exports its petrochemical products to more than 40 countries worldwide.
They are market leaders in Crude Oil Production, and supply finished products in plethora of Gas stations in and around Eastern Europe. Lukoil has also a strong presence in the power generation sector as it has a capacity exceeding 5800MW.
Lukoil Price/Pricing Strategy:
Below is the pricing strategy in Lukoil marketing strategy:
Lukoil has embarked its presence in both Domestic and International markets, driving optimal distribution of flows to fit the market and maximize profits incurred from the Business. The Company not just owns Oil Refineries but also produces transhipment facilities, as well as pipelines, which helps them minimize the transportation costs.
Costs vary as the oil and other products are shipped to various countries and various taxes are levied on Lukoil products.
Following is the distribution strategy in the Lukoil marketing mix:
Lukoil has marked its presence in Countries like Kazakhstan, Egypt, Colombia by venturing into the countries where there lack of good companies it ensures great profits. It has achieved great Monopoly in Central and Eastern Europe, making it the only brand used by people in this region. They have divided themselves into 3 sectors upstream, midstream and downstream. Upstream sector includes Kazakhstan, Egypt, Iraq, Iran.
The midstream comprises of Romania, Odessa etc and Downstream includes Ukraine, Turkey and the likes.
Lukoil Promotion & Advertising Strategy:
The promotional and advertising strategy in the Lukoil marketing strategy is as follows:
The Company promotes its petroleum products under the brand "LUKOIL" in both International and Local markets, they ensure a monopolistic view of their product in and around Russia and in Eastern Europe, along with their effective marketing strategy. Since the company is mostly into petroleum products, Lukoil uses many media channels to ensure that its business partners and end users are aware of the brands and products offered by it. Lukoil has also actively promoted various sport events, especially racing teams, which gives exposure to the brand at a global level.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Lukoil.
Lukoil deals with wide strata of Audience, they are divided into upstream, midstream and downstream, all the 3 streams represent the Target audience of Different countries that fall under each category. The employees and management of Lukoil are the backbone of its business. The best experts from every field are a part of the organization, who are constantly trained so that they are prepared to fight the competition. More than 100,000 people are employed with the organization, which shows its strong dependence on the expertise of people.
Lukoil has acquired many small-time refineries from the Mid-stream and small-stream countries to ease their current process of Supply management. One of the most major factors that worked in favour of Lukoil was establishment of International Lukoil Trading and Supply company, which helped the company become sole operator in International trade, develop transparency and raise funds.
Lukoil is a major in providing oil and other petrochemicals to the world. It is difficult to provide product before and to any country or client before they pay up for it. Hence the quality by which the company manufactures these products can be treated as physical evidence. As in a certificate or accolade received by Lukoil is a physical evidence of the quality that it maintains. This completes an overview on the marketing mix of Lukoil.
Lukoil is one of Russia's biggest energy player. The greatest oil corporations have played a significant role in Russia's economy, having said that not just Russia's but also the worlds. This means Lukoil has contributed heavily not just to the Russian economy but also to that of the world as It's is one of the major players in Eastern Europe.
Lukoil operates in 60 Russian regions and in 30 countries around the world. The company engages in production of oil and gas, manufacturing of petrochemical products.
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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