Eni Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Eni analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Eni marketing mix, help the brand succeed in the market. Let us start the Eni Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Eni Product Strategy:
The product strategy and mix in Eni marketing strategy can be explained as follows:
Eni is one of the largest energy companies in the world. Eni is segmented into three main categories Gas and Power, Refining and Marketing and Exploration and Production. It engages several marketing mix services like exploration, development and production of hydrocarbons, in the supply of power, LNG and gas, petroleum products refining and marketing, in the production and marketing of plastics and petrochemicals and trading in commodities. Eni also deals in a variety of other products including electricity, fuels, bitumen, automotive lubricants, industrial lubes, greases and heating products. It is one of the most important integrated energy companies in the world and has a strong edge and leads the international markets.
The company produces natural gas as well as imports it for sale in Italy and Europe. It explores hydrocarbons in Australia, the North Sea, Mexico and Kazakhstan apart from Italy. It generates and trades electricity, refines oil and operates gasoline service stations.
Image: flickr.com/photos/lucamascaro/
Eni Price/Pricing Strategy:
Below is the pricing strategy in Eni marketing strategy:
The profits of Eni company are directly dependent on the prevailing oil and gas prices in the economy. Its results of operation and cash flow, mainly in the exploration and production division, are influenced greatly by the prices of oil and gas.
This is to say that, an increase in the prices of oil and gas will have a positive impact on the consolidated operating result of the company. On the other hand, a decrease in the prices of oil and gas will affect the profits of the company negatively. The fees charged by the company for using the natural gas transport pipeline network and distribution grids are decided by the official order on the Regulatory Commission of Energy which is an independent administrative body in charge of regulating the French electricity and gas markets. They are levied on all the suppliers of natural gas under the same terms and conditions. Thus, the relative success of the various suppliers in controlling their procurement and marketing costs, decides the price competition in the market.
Eni Place & Distribution Strategy:
Following is the distribution strategy in the Eni marketing mix:
Eni’s objective is to create new value to meet its shareholder’s expectations through the continuous improvement in the cost efficiency and the quality of its products. It aims at having a sustainable growth pattern along with emphasizing and keeping an eye on the environmental impact of its activities and the development of innovative and efficient technologies to improve its international presence. To achieve this objective, Eni relies on the technical and managerial capabilities of its workforce and on an increasingly lean and entrepreneurial organization. Eni having its head office in Rome, Italy offers its services in 73 other countries and has a staff of 29,000 employees. Its exploration and production segment engages in oil and natural gas exploration as well as LNG operations in over 40 countries including Norway, the United States, Egypt, Algeria, the United Kingdom, Australia, Congo, Libya, Angola, Nigeria, Kazakhstan, Venezuela, Iraq, Mozambique and Ghana. Its gas and power segment engages in supply, marketing and trading of international gas transport activities and commodity trading and derivatives.
Eni also has a social newsroom on social media sites such as Twitter, YouTube, Instagram, LinkedIn and Facebook.
Eni Promotion & Advertising Strategy:
The promotional and advertising strategy in the Eni marketing strategy is as follows:
Eni engages in many promotional offers to have a better relationship with its customers. It has undertaken certain initiatives aimed at favoring consumption in a negative economic scenario and having a sounder customer relationship. Eni offers loyalty and payment cards to its regular customers. The card has a point accumulation program related to the purchase of fuel and non-oil products at Eni’s stations and also at the stations of Eni’s commercial partners. They also offer reloadable and credit card functions. In 2013, it signed a number of agreements with its partners in the sectors of large distribution, telecommunications and clothing, to give an immediate economic advantage to its customers who possess the Eni loyalty cards. Eni also offers electronic fuel coupons which are basically rechargeable fuel vouchers that are designed especially for business customers. An initiative called “Enjoy” is launched by Eni in Milan. It is a car sharing free floating service with the objective of developing products and services for sustainable mobility. It allows the customers to pick up and drop the car in any part of the covered area and represents an economic and sustainable alternative to owning a car. The service is completely online with all the tariffs being inclusive. Eni provided this service in partnership with some other major Italian players such as Fiat, Cartasi and Trenitalia. This service is very unique and gave Eni an advantage over its competitors.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Eni.
People:
Eni believes that its objectives as a company are met because of its dedicated and professional workforce. Eni’s people are central to the competitiveness and sustainability of their business. The company provides its employees a working environment free from discrimination and offers everyone the same opportunities based on personal merit. They also give their employees regular high level training combined with a balanced generational change. The employees at Eni are given the opportunity to accelerate their professional growth, work in a cutting-edge environment, receive proper recognition, be a part of something big and face the toughest challenges.
Process:
Eni works towards building a future where everybody has access to energy in an efficient and sustainable manner. As a result of exploration, the company has designed assets for their upstream business. They have invested heavily in proprietary technologies, licenses and instruments for exploration, geophysics reports and reservoir surveys. Eni have also reorganized their entire mid-downstream business into Gas and Power Midstream, Gas Retail, Refining and Marketing and Chemicals.
Physical Evidence:
Eni as a company has passion for innovation and respect for people. Their logo is a six-legged dog which symbolizes a particularly dynamic enterprise. It is a brand that changes but at the same time remains faithful to itself and promotes its activities all around the world. This concludes the marketing mix of Eni.
About Eni:
Eni is an Italian integrated energy company operating in petrochemicals, oilfield service construction, engineering industries and oil and gas.
In the year 1953, Eni was created under Enrico Mattei, incorporating the Italian government’s oil interests. In 1957, it gained a monopoly over all oil and gas exploration and production in Italy.
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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