Statoil Fuel & Retail A/S is a Norwegian oil manufacturer with refining and distribution facilities in Denmark in order to supply the Danish market with a wide variety of petrol, oils, jet-fuel, and fast moving consumer goods. Statoil faces increased competition, especially from Shell and from the changes in the macro environment, which impacts the competitive environment. The low-cost station market is growing rapidly, and Statoil does not have any low cost stations under own brand. Furthermore, petrol can be defined as a homogenous product which is very difficult to achieve preferences for. The market structure within the Danish oil industry can be defined as an oligopoly market. The oligopoly market, such as the oil market in Denmark has unique attributes such as the inter market dependency which means, that if one of the suppliers make radical changes in their prices or marketing-mix, this will have significant effects on the other suppliers. Statoil faces a decreasing market share, as they have only gained 11 per cent of the total market growth in 2011. The above mentioned indicates that Statoil should evaluate their marketing-mix in order to achieve a position in the market as the “environmentally friendly oil supplier”. Statoil should, therefore, promote their core competences within sustainable oil refining thus being the first supplier to add biomass in petrol. The final project consists of five main sections. Part one analyses the external environment and the second part analyses Statoil’s internal situation. The subsequent part of part one and part two is summarized in a SWOT analysis that clarifies the company’s strengths and weaknesses and identifies Statoil’s opportunities and threats. Part four reveals suggestion for strategy options in a TOWS matrix. Part five describes the strategic choices on the basis of the TOWS matrix. When a strategy has been chosen in accordance with previous analysis, a promotion strategy is formulated on the content of the changes in Statoil’s marketing-mix, which enables Statoil to target the customer groups. To validate the investment, cash flows from the increased contribution margin generated from the increased turnover, has been discounted to net present value. Furthermore, a break-even analysis has been made enabling Statoil to examine when they begin to capitalize on the marketing investment. On the basis of the risk analysis and the discounted value of the investment, which is kr. 40.197.835, the authors recommend Statoil to initiate the promotion strategy.
|Educations||Graduate Diploma Marketing Management and International Trade, (Diploma Programme) Final Thesis|
|Number of pages||118|