Shell Truck Marketing Communication Strategy

Elaboration , 2003 , 45 Pages , Grade: 73%

Business economics - Offline Marketing and Online Marketing

Shell is a company providing different products and services for the CRT
market. This highly competitive market, dominated by Q8, reduces Shell’s sources
of profitability and therefore Shell launch a major campaign to develop a stronger
position.
The campaign will target existing and potential fleet managers and drivers.
The concept is to drive the fleet manager to the EuroCargo exhibition in Cologne,
major place of meeting for the European companies in the transport sector with a
multistage Direct Marketing process. To back up this campaign, specialised
magazines and sponsorship of events and traffic radios are planned before and after
the trade-fair. This event will also correspond to the launch of the new brand
(TranShell) specially build up for the CRT market, in order to add some values
(flexibility, integration, expertise, etc.) necessary to this B2B sector.
Finally, the effectiveness of the campaign will be maximised by using
on-going and post campaign measurement methods. This campaign is the Shell’s
first step to offer a fully integrated provision of solutions by developing innovative
products and services.

Content

1. Background

2. Marketing objective and strategy
2.1 Marketing objective
2.2 Segmentation
2.3 Communication objective

3. Positioning
3.1 Positioning for Shell on CRT market
3.2 Repositioning
3.3 Integrated marketing communication campaign

4. Corporate communication
4.1 Public relations
4.1.1. PR messages
4.1.2 Other PR activities
A. The launch of new brand
B. Attracting new customers and establishing customer loyalty
C. Internet websites
D. Partnership with Mercedes-Benz

5. Promotions
5.1. TranShell Loyalty strategy
5.2. Event-linked promotions
5.3. Sponsorship

6. Creative Strategies
6.1 Positioning
6.2 Primary Competition
6.3 Promise
6.4 Reasons Why
6.5 Tone Statement and Execution

7. Media Strategy
7.1 Budget
7.2 Seasonality
7.3 Media Strategy
7.3.1. Primary medium: Press Advertisements
A. Magazines
B. Detailed Budget
7.3.2. Secondary medium: Traffic Radio Advertisements
A. Radios
B. Budget
7.4 International Relevance of Media

8. Direct Marketing
8.1 Schedule (Cf. Chart Section 3.3)
8.2 Direct Marketing Budget

9. Evaluation of Campaign

10. Conclusion - Recommendations
Recommendations

11. Appendix
Appendix 1: Transportation Market Structure
Appendix 2: Picture of Present Situation of Shell CRT
Appendix 3: Picture of the new brand: TranShell
Appendix 4: Image repositioning
Appendix 5: Brand Onion
Appendix 6: Magazine details budget
Appendix 7: Magazine details budget
Appendix 8: Direct Marketing detailed budget
Appendix 9: Advertisement for Fleet Managers
Appendix 10: Advertisement for Drivers

12. References

1. Background

In 1907, the Royal Dutch/Shell group of company was created to incorporate their operations worldwide. Now, Shell operates in over 145 countries, and employs 115,000 people.

The aim of Shell group is to meet the energy needs of society, in ways that are economically, socially and environmentally viable, now and in the future.

Shell is also present on the CRT market. The commercial road transport market (CRT) is a diverse and complex market, which covers all commercial road transport axles. In CRT industry, the main products of Shell are fuel, lubricants, greases, etc. However, Shell lacks of a unifying brand for CRT market, and gives less attention to CRT compared with private motorcars market. BP, Q8, Esso and Texaco all are strong competitors of Shell in CRT market.

According to SWOT analysis, we can get current situation of Shell:

Strengths: long history, globalization, high quality products and services, all kinds of business, corporate communications, reliable, environment care.

Weaknesses: lacking of unify brand in Europe CRT market, no differential advantages in CRT industry, lacking innovation, old-fashion.

Opportunities: uniform Europe market, CRT industry developing quickly, e-commerce developing, information technology improving.

Threats: strong competitions, competitors’ quick innovation, competitors’ low costs and prices.

2. Marketing objective and strategy

2.1 Marketing objective

Explore and increase its sales in the CRT market covering Western, Central and Eastern Europe.

Marketing Strategy: Market Penetration Strategies (Figure 1) because Shell is competitive and capable in its product–related fields, best represented in private market (service stations, etc.), while its CRT market is static due to overlook. So this market is of high investment value to Shell, by increasing customer loyalty (Fleet Managers and Drivers), market share (increase awareness of the competitors’ customers) and product usage.

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Figure 1: Ansoff Matrix^[1]

2.2 Segmentation

As CRT market includes all commercial road transport axles (cf. Appendix 1) we aim to analyses it with three bases (Personal, Professional and Psychographic features) in two aspects (transport clusters and individual).

Although there are many consumers in this market, transportation clusters make most of purchases, in the form of self-employed haulers or cargos companies or say, clusters with different consuming usage due to different truck weight, number and activities (Appendix 1). TranShell is going to target 90 % of the medium size haulage companies (potential future large companies, as ‘Stars’ according to the BCG matrix), 70 % of European large firms (‘Cash cows’) and the best 40 % of small companies (Interrogation points, potential Stars).

However, the one who directly buy CRT products are mostly drivers and fleet mangers. Due to the fact that it is a Business-to-Business sector, the segmentation is done according to the professional and personal features, instead of a pure demographic one.

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Figure 2: Shell customer segmentation

2.3 Communication objective

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Figure 3: Respective messages for the different functions in companies.

In the CRT market, the specific correspondent Shell is dealing with different size of transport clusters. In small and medium companies, it is usual to have the same person responsible for two different functions. Hence, according to the Figure 3, different marketing messages target different functions, which can be embodied in the same person.

As the marketing objectives and strategy (market penetration) are clear, the communication objectives for Shell in the CRT market are to build up customer loyalty, increase the usage for existing customers and attract new competitors’ customers.

However, as the target markets are diversified, different communication strategy should be applied according to their characteristics (cf. Figure 1). This integrated communication campaign can be thoroughly illustrated as following:

3. Positioning

Shell Commercial Road Transport (CRT) domain has a flat growth and a low profitability. The products and services offered are the same as most other competitive companies (cf. Appendix 6) such as, dispensary (retail, outlets…), ancillary services and products.

There is a great potential of growth for Shell in the CRT market especially with globalisation, e-commerce, free transportation within the united EU market.

3.1 Positioning for Shell on CRT market

1. Offer of products and services adapted to the particular needs of the CRT market (i.e. innovative, customised). This will be done by developing the ‘expert’ and ‘CRT specialized’ brand values.
2. Understanding the particular needs of consumers and as a result Shell positioning is flexible, modern, consumer friendly and dedicated to consumer needs (cf. Appendixes 2 and 6)
3. Developing a competitive edge by focusing more on the high quality services and products rather than the price of the products.
4. Positioning TranShell as a trans-national brand throughout Europe and reinforcing its professional, enterprising and efficient image.

According to the Segmentation section (cf. Section 2.2. Segmentation) there are two distinctive targets with different needs to be filled.

1. The drivers: the positioning should be credible, open, specific, respectful and professional, all in a happy and being mate style.
2. Fleet manager: services should be favoured, with additional supportive advising and contacts with the TranShell employees emphasising reassurance, respect and flexibility.

Shell’s brand image is described in the appended TranShell Prism & TranShell Onion(cf. Appendixes 2 and 5)

3.2 Repositioning

Customers hardly differentiate Shell CRT from its main activity (consumer petrol company, B2C). As a result, the strategy is to build a strong brand with similar brand equity from Shell, but with additional values linked with the CRT market (flexibility, innovation, complacent and modern) are necessary (cf. Appendix 6).

Thus we do an image repositioning (cf. Appendix 4) of Shell with TranShell (cf. Appendix 3), in terms of:

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Shell is already a well established brand name throughout Europe. Thus to change the name entirely might deter the consumers from purchasing products because they would not know them as Shell products. As a result, the new brand name is similar to the umbrella name.

Tagline: “The Official CRT Solutions Provider”

‘Official’ provides a stature and expertise value of TranShell about the CRT market.

Logo: Shell Pecten (remaining the same, the new tagline will be added at the bottom)

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USP for Shell CRT: An Integrated service package including transnational services, innovative products, detailed information on services offered due to:

1. Long history
2.Good Reputation
3. High quality products and services
4. Total commitment to building relations
5. Traditional brand with a professional image

3.3 Integrated marketing communication campaign

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Figure 4: Integrated Campaign

A creatively integrated marketing communication campaign is developed to meet in addition of marketing objective and communication objectives, Shell’s four segments in the CRT market and its brand repositioning.

The overall campaign is completed by using five communication tools (direct marketing, media, sales promotion, special events, public relations) in an 11-month first duration launch campaign, followed by a less intense campaign maintaining the momentum (cf. Integrated Chart).

Each part of the campaign is consistent internally with aspect to others and together transfers the core message already determined initially.

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[...]

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^[1] Doyle, P (2002) Marketing Management and Strategy Harlow: Pearson Education Limited, pp.19

• College: University of Leeds (Business School)
• Course: Shell
• Grade: 73%
• Author: Alexandre Georjon (Author)
• Publication Year: 2003
• Pages: 45
• Catalog Number: V23348
• ISBN (eBook): 9783638264877
• Language: English
• Tags: Shell, Truck, Marketing, Communication, Strategy, Shell