Refined Oil Marketing Paper

Small stations take the initiative to seize the market, and large stations stabilize quantity and share; they give full play to the core competitive advantages of gas cards. So, how to market refined oil?

1. Retail customer categories and customer marketing strategies

Based on the use of vehicles and machinery, customers are divided into five types in the retail customer management information system Major categories: official vehicles, family vehicles, commercial vehicles, non-vehicle oil and construction machinery.

Commercial vehicles have become the largest customer in demand for refined oil with a demand ratio of 52%, while official vehicles and family vehicles account for 27% and 12% respectively.

It can be seen that three types of customers: commercial vehicles, official vehicles and family vehicles are the main demand entities in the refined oil market.

According to customer demand preferences, customers can be divided into four types: service preference customers, price preference customers, convenience preference customers and brand preference customers.

2. Application of marketing strategies

The core marketing strategy of the refined oil retail market is customer-centered differentiated marketing.

Implementing differentiated marketing strategies has two meanings: First, the same marketing measure is differentiated in different markets, different customers, and different competition stages.

The second is to adopt diversified marketing methods to meet the different needs of customers in the same market stage and implement all-round marketing.

(1) Marketing strategy Internet marketing

Mainly by increasing the number of networks and improving network coverage to expand market share.

Practice has proved that the key areas for network development are highways and their entrances and exits, urban areas, and counties.

Brand marketing.

Mainly through gas station image transformation, media brand promotion, improvement of service quality, service connotation and other means to enhance brand competitiveness, thereby consolidating and increasing market share.

Policy marketing.

Mainly by strengthening the relationship with functional departments, the first is to crack down on counterfeit stations; the second is to crack down on and ban illegally operated stations; the third is to clean up mobile oil sales trucks.

Use functional departments to rectify and regulate the market.

Price marketing.

The more mature the market economy develops, the lower the customer's profit margin, the stricter the cost control, and the more sensitive it is to oil prices.

Among all marketing elements, price is one of the most effective means.

Four-in-one marketing strategy.

Refueling business? A one-stop service marketing strategy that integrates four businesses.

Cross marketing.

Through the integration of sales channels and customer resources with large communication companies and department store trading companies, we can achieve a win-win situation.

(2) Specific price marketing measures: gas card points discount

It is well concealed. In actual operation, the price of the gas pump remains unchanged. The customer privately signs a fuel purchase agreement with our company. It is difficult for competitors to detect and copy, and you can gain "first mover advantage" in the competition.

Highly targeted and efficient.

For price-sensitive customer groups, differentiated pricing and one policy per household can be achieved.

Therefore, the cost is the lowest and the efficiency is the highest in expanding sales and responding to competition.

Peer-to-peer competition?: Peer-to-peer competition takes the form of price reduction at gas pumps, resulting in large losses and strong phased nature.

The main goal is to use fighting to promote negotiations, to force opponents to abandon their low-price policy, and to push prices together to stabilize prices; to demand incremental increases from competitors and increase market share.

There are three types of peer-to-peer competition: one is to take the small and make the big.

Secondly, the two stations are evenly matched.

The third is to fight the small with the big.

Machine-delivered small-amount delivery: filling the gap in the direct selling market.

The sales target of the machine-out small-amount distribution station is diesel customers that cannot be covered by the existing account managers of the merchant department.

Customers such as rural oil sales points, small social business units, fleets with self-provided oil storage tanks, construction sites, factories and mines.

Pricing is flexible, and usually the minimum price is slightly higher than the current direct sales wholesale price, but not lower than the regional allocation price.

Oil and non-oil mutual promotion: Oil and non-oil mutual promotion organically combine customers’ demand for oil products and non-oil products. Sales of oil products create opportunities for customers to enter the station for consumption, and non-oil business provides convenient services to customers. demand, the two promote each other.

In order to strengthen the mutual promotion effect of oil and non-oil products, certain discounts on oil products or non-oil products can be supplemented according to the needs of competition.

In principle, every gas station with a convenience store can achieve mutual promotion of fuel and oil.

During the implementation process, suitable mutual promotion products should be designated according to the different customer structures of gas stations to meet the differentiated needs of customers and maximize the mutual promotion effect.

(3) The impact of the three balance laws in marketing

The main macro elements of retail operations include: resource investment, wholesale prices, competitor promotions, and our system’s retail marketing strategy.

There are at least three balancing laws in Hebei's retail market that must be highly valued and properly handled.

The law of supply and demand balance: The balance between supply and demand is the most important balance relationship in the refined oil market.

There are several key points in handling the balance between supply and demand: first, relatively accurate prediction of the scale and growth of market demand, second, formulation of a reasonable sales plan, and third, adjustment of resource allocation.

The law of wholesale and retail balance: From a macro perspective of the province, when the price difference between wholesale and retail exceeds 400 yuan, the price competitiveness of social units will be significantly improved, the market share will be expanded, and the retail market share of the main business units will be compressed.

The law of volume-profit (price) balance: Volume-profit balance is the main basis for the dispatch and command of retail business operations.

The basic principles for handling the balance between volume and profit are: quantity is the premise, and quantity is the basis for profit; price is the lever, and volume and price interact to achieve a balance between volume and profit.

In a certain market stage, market demand is relatively stable. If the sum of the sales plans of competing entities is greater than the market demand, various forms of promotional activities will inevitably occur, and all activities will ultimately be reflected in the price. Therefore, the expression of quantity-profit balance is volume-price balance.

(4) Marketing Strategies in Different Market Stages

Market stage in which supply exceeds demand: In recent years, the refined oil market has seen many wholesale and retail inversions, and gas stations have difficulty operating, and some strong companies Gas stations adopted a high-in-high-out strategy to barely maintain operations.

The marketing strategy is to ensure supply in a rhythmic manner and maintain the normal operation of the local economy.

Strengthen customer relationship management, allocate resources to key target customers, and use resources to develop and maintain customers.

Supply and demand balance stage: The market characteristic is that at this stage, resource supply tends to normal and social gas stations resume normal operations, but the profit margin is not large.

Marketing strategy is a golden period for increment and efficiency improvement.

It is necessary to reasonably grasp the quantity and price of resource investment, maintain a good balance between supply and demand in accordance with the rules of wholesale and retail balance, and control the competitiveness of social gas stations at the source. Retail promotions should not be excessive at this stage. One is to control the scope in terms of appearance, and the other is to control the discount range in terms of price.

Oversupply stage: The market is characterized by the large-scale entry of low-priced resources and a serious excess of resources.

The marketing strategy is to cope with competition, maintain volume and profit, adopt differentiated marketing measures for different business districts and different customer groups, and maintain the largest market share at the lowest cost.

A prudent follow-up strategy should be adopted to deal with low-price competition.

Small stations take the initiative to seize the market, and large stations stabilize quantity and ensure share; give full play to the core competitive advantages of gas cards, flexibly use gas card point discounts in local areas where the situation is unfavorable, and carry out three-entry and one-retention target customer development. Use implicit competition to gain relative competitive advantage.

3. After the project is implemented

Achieving economic benefits The following is a comparison of the improvement of various major indicators between 2010 and 2009.

1. Market control has been enhanced.

Focusing on customer marketing, relying on the retail customer management system to fully implement the "three enters and one retains" target customer development, retail volume achieved rapid growth, from 3.9 million tons in 2009 to 4.26 million tons, an increase of 9.2 %.

In 2010, the retail market share reached 52%, and the growth rate was significantly higher than that of competitors.

2. Profitability is significantly improved.

In 2010, the overall price fulfillment rate reached 99.2%, of which the retail price fulfillment rate was 99.9%.

A year-on-year increase of 1.7 percentage points, 0.3 percentage points higher than the average sales system; profit per ton of oil increased from 71 yuan in 2009 to 99 yuan, an increase of 40%.

3. The network quality has been significantly improved.

The annual refueling volume of a single station increased from 2,160 tons in 2009 to 2,321 tons, an increase of 7.4%.

In 2010, the number of large stations with a capacity of more than 5,000 tons increased by 49 year-on-year, an increase of 29%, while the number of small stations with a capacity of less than 800 tons decreased by 108, a decrease of 15%.

4. Calculation of results and benefits.

After practice in 2010, the project achieved remarkable results, adding 32.79 million yuan in economic benefits to the enterprise.

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