Marketing Mix of Petrol Retail Outlet in Singapore
Introduction
Petrol retail outlets in Singapore are influenced by various factors on the basis of which every petrol company decide what the marketing strategies to be implemented by it are Like: What is the international price of refined oil? The government taxation policies, the exchange rate of Singapore currency, what are the retail cost and the wholesale margin? Demography of the locality and the customer base. So the marketing mix used by the retail outlets has to focus on the government policies as well what is the price of the gasoline and petrol in the market of Singapore. Petrol retail outlets are something which are necessary for every community, so it all depend how this marketing strategy is planned and executed by selection the correct location for the petrol outlets so that it can be used by maximum number of customers.
Petrol retail now focus on convenience marketing where they offer other services apart from the regular product, petrol and they offer different variety of services like postal services, fast food services, laundry sevices, shopping retail oulets.So the Singapore petrol retail outlets realizing the importance of customers need and demands are using innovative means to add value to their customers (McCarthy 1996)
Marketing mix:
1) Price:
In Singapore the petrol retail outlets strategy for price is based on the risk mamangemnt because products in sold in a retail outlet so exactly similar to the product sold in the other one. It is very difficult to differentiate the product. There is no strategy of lowering or increasing the price because, petrol price are the standard price which has to be followed by all petrol pumps in a particular state. So pricing in Petrol pumps is generally a strategy of risk management, whereas the retail petrol outlets have to take risk and have to focus more on their customer service an ddelivery.price can be effective marketing strategy for retail outlets only if it is combined withquality, service and customer retention strategy, it should be implemented properly with right strategy focusing on the strategy of the competitors and the nearby petrol retail outlets (Tellis 1986).
So pricing stagey for the petrol retail outlets should be well planned well executed and well timed so that they can gain the market share and fight with the competitive stray if the other petrol retail outlets. In petrol retail outlets, the major focus is how they are providing service to the customer and not on the product petrol because petrol is ultimately the same in all retail outlets. So they have to decide how they should invest in providing the best service to their customers. the retail outlets has to decide where they should invest Money so that they can attract the maximum number of customers, what are the other facilities they can provide so that so tat the petrol retail outlets if vested by customers also fulfill some other purpose like a “eat and dine”. So it all depends how the retail outlets are focusing on providing the best service to the customers which is better than third competitors
2) Place:
Place is based o upon strategy where the retail outlets should be started.thsi is decided by the demography of the place a customer base available in that particular area. Petrol retail outlets have now become the nest shopping hub for customers and so the petrol outlet should be situate din such place so that it can actually become a hub. Investors have to decide what is the need of outlet in particular place and how it will be beneficial for tem and the customers, this can be decided on the basis of the number of vehicles traveling in that particular place. What can be an approximate number of customer falls in that particular retail, what is the nearest locality consisting if? For example, a nearest shopping mall, nearest sports statidium, nearest housing society would be an added benefit. It has to be decided what will be the weakness of that location and what will be the benefits. The competitor strategy has to be anlaysed,what are the benefits their competitor are enjoying and what are the threats which can be generated by their competitors (McCarthy 1996). The investors have to decide what are the insurance and the licencising cost and the taxation policy which will be implemented in those retail outlets. Every place has it sown taxation policy which has to followed by the all the shops and retail outlets.
Place for the retail outlets should be such that it will be hub for maximum number of customers (McCarthy 1996).This planning is done on the basis of future forecast which means this retail outlet must be the hub for customer for long future. So the place for retail outlet should be such that it will have the maximum number of customers not only in present but also in future. It is necessary that the retail outlet in any locality should consider the other necessity of customers visiting the petrol oulttes.A petrol retail situated near a mal doesn’t have to focus more nay retail store in their outlet but if it is situated on any highway it can invest in providing retail outlets or dining services to their customers. So a particular location should be chosen only after deciding what is the customer base and the number of vehicles going by in that location.
3) Promotion:
Petrol retail outlets in Singapore follow a truly valuable promotional strategy where they amino to attract as well retain the maximum number of customers with them. They include some kind of contest or grand opening event or may be lottery giving free petrol to the winners. This help to retain the winners, and also bring in new customers.
Some retail outlets use a scheme where customers are given frequent visitors card, which offers them ascertain discount. Sometime contest winners are given an opportunity where they can actually buy the petrol at the soma epic eon the next year also. This will retain the customers a they will prefer that retail store only, even when the prices of petrol have gone up. Sometime a grand opening ceremony does half of the work, whre bands and comedians are booked and they offer free merchandise during the event (Tellis 1998). This becomes a memorable event for the local community, which helps in mouth –of-advertising about the new petrol retail outlet. Customer loyalty are also rewarded and this is the another strategy for reatiloutlets,customers are given extra points for their every vist.Eg.a loyalty card is given to the customer at the grand opening event or may be first time visit ,and after fifth time they visit the retail outlet they are given free petrol. This is a promotional incentive scheme for the customers which will keep them attached to that retail outlet (Tellis 1986). Apart from the various promotional stagy they service and the delivery given to the customers is something which makes them loyal customers. How the service station staffs provide service to each customer, what are the other facilities like ATM, shopping outlets, eating facilities, are made available to the customers. Petrol retail outlets totally depend on the customer service and customer retation,and mouth of adevertiisng,because apart from the product it the service which I given make the customers loyal ,and effectively planned service stem is become the promotional strategy for the customers, If they are happy with the service ,they will come again to the same retail outlet.
4) Product:
The primary product consists of gasoline, petrol and diesel. These are the main primary product that can be sold at the petrol outlet. Due to increasing number of vehicles in Singapore, petrol outlets have a huge market for its product. The outlets may sell some secondary products like gases, and other gasoline products. The main and primary product for a petrol outlet is petrol and diesel mostly. The most important thing which is of utmost priority is to keep a good stock of gasoline to the petrol outlet. Otherwise the scarcity of product may lead to the dissatisfaction among the customers. To avoid any kind of customer dissatisfaction, the outlet management should keep a good stock and should keep a good and effective relationship with the suppliers and distributors. They can follow JIT (Just in Time) strategy to keep themselves competitive and sustainable in Singapore market.
Conclusion
The Singapore petrol retail outlet is today making giant strides by using the new innovative technologies and method to offer the best service to their customers and retain the customers with them. There is urging of competitiveness among all the retail outlets which demand for offering the bets service sot their customers. On the basis of research it has been realized that today customer demand not only petrol from they routes but may be a fast food or postal service ,and so they have filled up this gap by providing such service sot the customers at tier oultelts.Convenience retailing has emerged as a key business and marketing strategy for the retail outlets where the customer can combine their shopping time with their fuelling ocaasion. Today all the retail petrol outlets have opted for this strategy of convenience marketing and are using the new innovative technology.
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