Expert answer:Option #1: Comprehensive International Marketing P
Expert answer:IMPORTANT NOTE: THE ASSIGNMENT IS COMPLETED! I JUST NEED THE CORRECTIONS BELOW MADE. Please make sure to include all of the headings that are listed in the syllabus (and include those in your final portfolio). This is off to a good start.Please make sure to review the rubric posted in Module 8 before you make your final submission.How will you pay for your marketing strategy? Metrics? How will you evaluate whether or not it is effective? What about surveys?Tactics should be short term and strategy should be long-term goals.Please make sure to identify any tactics and strategies clearly in your paper.Please include a timeline with your implementation plan.
portfolio_project.doc
portfolio_project.doc
Unformatted Attachment Preview
Running Head: ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobilADVANCE
DUCATI
1
ExxonMobil International Marketing for ExxonMobil Advance Ducati
Dillion Pitcock
Dr. Aubry
Colorado State University
December 22, 2017
ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI
Company and Product
ExxonMobil is an American Company dealing in petrochemicals, petroleum, oil and
natural gas. It has its headquarters in Irving, Texas USA. It is the eight largest publicly owned oil
and gas companies and the largest oil company in terms of revenues. Its operations and services
are present in over 70 countries globally with over 73,500 employees. It revenue as at 2016 was
US$218.6 Billion with an operating income of US$7.969 Billion. The net profit of the company
was US$7.84 Billion with total assets amounting to US$411.2 Billion and total equity amounting
to US$330.3 Billion. And total equity of US$167.3Billion The Company has launched a new
product, the ExxonMobil Advance Ducati, which is new motorcycle oil that has been specifically
developed for Ducati motorbikes. The Company is listed in NYSE as XOM and is also listed as a
component of DJIA, S&P 100 and S&P 500 Components (ExxonMobil, 2017).
o
Objectives and Goals
Overview of Netherlands
The Netherlands was founded by Julius Caesar initially inhabited by the Germans before
the Spanish occupied it. Today, Amsterdam is the capital city of Netherlands and its national
language is Dutch. It relies on the Euro and USD as the national currency and has an ethnic
composition comprising of the Dutch as the majority and the Indonesian, Turks, Caribbean and
other ethnic communities forming the remaining population (Birkinshaw, 2013). The country has
a total population of 16,856,620 million people and a GDP of US$798,106 Billion. The per
capita of the country stands at US$47,365. The political system of the country is ruled by a
constitutional monarchy. Amsterdam, Roternderm, The Hague, and Utrecht are among the four
major cities with a population of 800,000, 600,000, 500,000 and 300000 respectively.
2
ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI
The oil and gas sector is a well-developed sector in the country contributing up to 34% to
the country’s economy with oil, natural gas, petrochemicals and other petroleum products
forming the main products. The Netherlands is among the world’s largest exporter of petroleum
products amounting to 0.25 of the world’s export. The country has well established and
developed green genomics and greenhouse horticultural practices (Doole & Lowe, 2013). The
country has managed to attract more investors in the oil and gas market through an effective
supply chain and logistics network. Oil refinery, mining, chemicals, food processing and metal
work form the major secondary industry in the Netherlands. The BarbantStad are of Netherlands
was voted as the most innovative industrial area in Europe. The tertiary industry of the country
comprises of telecommunication, transpiration, financial services and logistics and distribution
services.
The economy of Netherlands is 78.2% dominated by the service sector that generates
80.71% of the country’s GDP although the government contributes 19.8% of this GDP.
However, the country has embarked on diversification strategies that will see its education,
health, oil and gas and infrastructure sectors open up new investment opportunities (Inkpen &
Moffett, 2014). It has come up with development goals that are aligned with the UN sustainable
development goals which have led to the prioritization of capital investment to create jobs for its
citizens in the oil sector.
Its major focus is the implementation of tax reforms that will be used to encourage
consumer spending as a way of achieving sustainable economic growth. It faces political stability
with a constitutional monarchy and a decentralized state system of government. Its foreign
exchange earner is export of agricultural products and mineral oils. It has however initiated large
infrastructural projects to open up more economic growth opportunities.
3
ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI
• Situation
Analysis
o
PEST Analysis
Political
Netherlands economy is internationalized with less government interference and open
trade investment policies. It has opened up investments, commercial and economic policies to
spur economic growth in the oil sector. It has a liberal oil and gas industry which has been
deregulated to allow more investors to venture into the industry. As a result, the political
environment of Netherlands supports the investment in oil and gas sector (Inkpen & Moffett,
2014). The country has implemented legal tax reforms that have seen it charge 20% as
corporation tax and 22% as income tax. It has the lowest rate of crimes and a strong drug policy
that’s has seen most of its prison remain empty. Investors in the oil and gas sector get tax and
capital incentives to encourage more investment in the oil and gas sector.
Economy
The country’s inflation rate is 1.1% with an unemployment rate of 8%. The labor force in
the country’s oil and gas sector stands at 8.35 million with the service sector taking up the
majority, followed by the industries and the agricultural sector taking the smallest portion. The
Netherlands is the Europe gateway due to its geographical location that has opened it for
international markets. Thus, the country’s economy is ripe for more investments in oil and gas
sector since it is stables and experiences less financial and economic crisis.
Social Cultural
The country has a high standard of living with the lowest level of poverty in the world.
The per capita income stands at $47,210 and literacy level as high as 99%. Equally, the mortality
rate of the country stands at 8.8/1000 people. The staple food of the country fresh fruits and
4
ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI
vegetables while its rats and culture remain the most famous due to the highest number of
museums in the country. Many people in Netherlands love motorcycles both for private and
sporting activities. This has increased the potential of the countries motorcycle oil market.
Technology
The Netherlands has high technological advancements in oil and gas exploration that
enables investors to undertake cost-effective production of petroleum products. It has developed
land reclamation and rehabilitation techniques that led to the recovery of 2/3 of former oil mines
for settlement and farming. Its oil and gas exploration technologies have led to sustainable
practices and use of alternative source of energy. The country has invested so much resource in
research and development on the sustainable use of water scarce energy and petroleum product.
Sustainable energy has seen the country produce its electricity from wind and biomass. It was
the first country to introduce the first world solar road.
Environment
The country has implemented a waste management policy that has seen sustainable
practices being implemented in all sectors of the country’s economy. Inland navigation,
industries, aviation, and traffic contribute to 260mn metric tonnes of CO2 emissions in the
country. Conservation of major ecosystem has seen the country’s biodiversity conserved and
protected. The endangered and rare species have been protected due to the reliance on renewable
sources of energy.
o
SWOT Analysis
Strengths
ExxonMobil has a strong market position in the energy industry with both downstream
and upstream operations in more than 70 countries globally. The ExxonMobil Advance Ducati
5
ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI
is a new oil brand that has given it a strong market position and bargaining power in the global
energy industry. The company has implemented vertical integration that has seen it engage in the
crude oil business, natural gas production and exploration in the upstream market and marketing
the refined oil products in the downstream market. As a result, the company has a competitive
advantage in controlling the price of oil. In addition, ExxonMobil has a strong financial and
technological ability that increases its capability in the exploration of oil and natural gas. It uses
advanced technology including geophysical data that is airborne to increase its efficiency in oil
and gas explorations. It has invested a lot of resources to build a strong R&D to reduce its
carbon footprint and explore the ExxonMobil Advance Ducati in a cost-effective manner. As a
result, it has managed to reduce its operational costs and achieve competitive advantage in the
global market.
Weaknesses
ExxonMobil has faced numerous allegations of violating corruption laws which have led
to huge fines that affect the goodwill and brand image of the company. The company is also
facing the threat of a growing debt level that is becoming almost unbearable for the company.
This has resulted in an increase in the financial obligation which has adversely affected the
company’s financial stability. It has also been accused of violating human rights through oil spill
(Noreng, 2014). The quality and standard of the ExxonMobil Advance Ducati product are also
facing challenges due to the large-scale nature of its operations.
Opportunities
The company has implemented partnerships that will see it undertake Prelude Floating
Liquidified Natural Gas Technology to access gas fields in the offshore which is difficult for its
competitors to manage. This will lead to an increase in its productivity of the ExxonMobil
Advance Ducati by 5.3 million tons of liquid petroleum annually. The demand for the
6
ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI
ExxonMobil Advance Ducati has also increased globally, with cleaner energy being a major
demand. All these factors have led to an increase in the market potential of the company’s
products (Noreng, 2014). The strategic partnership with BG increased its market dominance in
the motorcycle oil market. It also has sufficient technology, supply chain networks and financial
resources that will see it undertake international expansion easily to exploit new markets in the
Netherlands for its ExxonMobil Advance Ducati product. The strong supply chain network has
improved the delivery of the ExxonMobil Advance Ducati product, thus increasing its market
dominance in the Netherlands.
Threats
The issue of climate change is a major concern for the sustainability and financial
viability of the company. With increasing demand and use of the ExxonMobil Advance Ducati,
the rate of carbon dioxide emissions also increases, thus making it a responsibility of the
company to find solutions to the emissions (Noreng, 2014). The ExxonMobil Advance Ducati
product is susceptible to volatility revolving around politics since it is a major subject of
discussion in the world. Thus, it faces a major threat of political victimization should such issues
arise.
Strict environmental regulation and government interventions may curtail its efforts to
undertake oil explorations and the effective production of the ExxonMobil Advance Ducati
(Birkinshaw, 2013). Weak industrial refining conditions and economic instability have reduced
the profitability of the product over the past years. The rising cost of producing oil coupled with
the fluctuating crude oil process also threated its profitability due to increased production costs
and reduced profits. The oil and natural gas industry are facing stiff competition that the
ExxonMobil Advance Ducati product sometimes finds it difficult to cope with.
7
ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI
Competitive and Industry Analysis
The oil and natural gas industry have limited players due to the high cost of technology,
skills, and expertise required to explore and produce the ExxonMobil Advance Ducati products.
This has led to many entry barriers for new entrants and in case a company manages to enter the
industry, it has to struggle to achieve a high volume of productions and sales (Doole & Lowe,
2013). Thus, the intensity of competition in the oil and natural gas industry is very high. Among
the major competitors of ExxonMobil include the Z energy, Royal Dutch Shell Plc. British
Petroleum, and OMP. These companies have mastered the art of collaborating with unrelated
companies to increase their supply chain and distribution networks and out-compete their rivals
in the industry. They also have alternative products for the Ducati motorbikes which will pose a
threat to the ExxonMobil Advance Ducati oil in the Netherlands market.
Industry Analysis
The industry faces constraint such as stringent regulation by various governments,
regulations, high costs of capital for investments, fluctuating crude oil prices, high interest and
exchange rate, increasing the cost of raw material, limited sources of non-renewable energy
(Noreng, 2014). As a result, the industry has restricted the growth of the companies’
necessitating the need to implement backward integrations. As a result, the ExxonMobil Ducati
Oil will face challenges in the Netherlands market.
Market Entry Mode and Why It Was Selected
Since the company seeks to exploit a foreign market with a new product in the
Netherlands, it is evident that its internationalization strategy will be very successful. For the
ExxonMobil Advance Ducati product, it will apply the wholly owned subsidiary as the most
8
ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI
appropriate market entry strategy for the new product yet to be launched in Netherlands (Noreng,
2014). This entry mode is preferred because it will endear well with the legal systems of
Netherlands, political stability, monetary and fiscal policies and well as respect to the human
rights in the country.
The wholly owned subsidiary market entry mode will also give the company an
opportunity to build strong supply chain networks in the Netherlands markets early. It will be
regarded as an insider company and will gain market knowledge enabling it to have maximum
control over the product and its customers. This mode also provides the company with ease of
setting operating process and facing fewer risks of losing intellectual property rights because it
will remain in control of security and data protocol. This mode of market entry will give the
company cost synergy and control over all assets.
Marketing Strategies
o
Product
The ExxonMobil Advance Ducati product has been diversified into three main categories
to cater to the needs of its customers. At the upstream product diversification, the company
undertakes natural gas and oil exploration to identify new and potential oil and gas reserves for
its production (Stevens & Markaz, 2014).The second product portfolio is the new energies and
integrated gas which involve refining the oil to obtain the ExxonMobil Advance Ducati product
that its ships into the market.
At the downstream of the product, diversification is the crude oil that the company
refines to obtain a wide range of products including diesel, aviation fuel, gasoline, heating oil,
lubricants, sulfur, marine fuel, ExxonMobil Advance Ducati, bitumen and LNG used for
transportation (Stevens & Markaz, 2014). The major product mix in ExxonMobil product
9
ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI
portfolio serves domestic, industrial and transportation use while the lubricants are mainly used
by industrial machinery, personal cars, and transportation vehicle. Its aviation fuel is used in
more than 40 countries while the LPG is used for retail and commercial purposes.
o
Price
Duct ExxonMobil Sets the price of its products in a competitive range depending on the
nature of the product. The ExxonMobil Advance Ducati oil is used for commercial purposes and
is therefore competitively priced depending on the market trends. The prevailing inflation rates
and taxation in the Netherlands also determine the price of this product in the Netherlands.
Global economic condition as well as the level of production by OPEC countries also detre4isns
the price charge don its products (John, 2014). The price of natural gas varies from one
geographical region to another depending on the demand and supply while the refined product is
priced deepening in the price of oil and gas. This is an indicator that ExxonMobil has no control
over the prices of the ExxonMobil Advance Ducati oil and has to rely on the prevailing market
conditions as well as government policies and regulations to set its prices
o
Place
ExxonMobil will set its stores and outlets in strategic locations within Netherland and a
well-organized supply chain, logistics and distribution network to ensure that the ExxonMobil
advance Ducati oil is available to its customers all over the world enabling due to the timely,
effective and efficient delivery of the products (Czinkota & Ronkainen, 2013). The company has
set up more than 100 distribution points and 770 supply terminals over the world. Its pipeline
company facilitates transportation of over 1.6 Billion barrels of oil in the US through the Gulf of
Mexico. It has also branded over 44,000 retail stations in over 70 countries to make its products
10
ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI
and service readily accessible and available to its customers. Its advance Ducati oil brand is
available in over 60 locations in the Netherlands.
o
Promotion
ExxonMobil Advance Ducati oil has a strong brand accompanied by a recognizable and
distinctive logo that has successfully promoted the quality of the product. The company has used
very effective marketing and promotional activities that communicate the benefits of this product
to its customers (John, 2014). It has signed deals with celebrities and singers who promote its
brands worldwide. The company has also engaged in sustainability activities as well as corporate
social responsibility activities that also serve to promote its services and the product in the
Netherlands. It has made good use of the internet, mainstream media and outdoor advertising.
The company has undertaken may sponsorship deals that has laid a strong brand presence in
many sectors of the economy.
Measurement and Control
When launching the new product, the company should consider implementing improved
standards of operation to remain sustainable in the market. Managers should also ensure that
there is an organizational culture that will promote the new product in the market. The
introduction of this product in the Netherlands is therefore viable and should be implemented
since it will lead to a balance between responsible energy and environmental conservation.
Ethical Considerations
When launching the ExxonMobil advance Ducati product, the company should consider
the possibility of facing environmental and sustainability issues. The product should efficient
with the ability to reduce emissions of carbon into the atmosphere (Czinkota & Ronkainen,
2013). The company should also consider tracking the effect of the ExxonMobil advance Ducati
11
ExxonMobil INTERNATIONAL MARKETING FOR ExxonMobil ADVANCE DUCATI
product to its carbon footprint before launching the new product in the Netherlands.
Additionally, it is recommended that the company looks at the human rights and welfare in terms
of the safety precaution measures related to the use of the ExxonMobil advance Ducati product.
Implementation Steps and Recommendations
The implementation steps for the ExxonMobil Ducati Oil should be done in a progressive
manner to monitor its progress in the country. Market penetration strategy such as competitive
pricing should be used in the first few months before setting very high prices upon gaining
market in the Netherlands. It is recommended that the company sets the market penetration
pricing strategy since the products face stiff competition …
Purchase answer to see full
attachment
How it works
- Paste your instructions in the instructions box. You can also attach an instructions file
- Select the writer category, deadline, education level and review the instructions
- Make a payment for the order to be assignment to a writer
- Download the paper after the writer uploads it
Will the writer plagiarize my essay?
You will get a plagiarism-free paper and you can get an originality report upon request.
Is this service safe?
All the personal information is confidential and we have 100% safe payment methods. We also guarantee good grades