Essay on Marketing Mix and Petrol Retail Outlet
Petrol Retail Outlet
As of December 2010, there were 207 petrol stations in Singapore. These stations are owned and operated by four major players in the petroleum retail industry. They are; Shell Eastern Petroleum Pte. Ltd (Shell), ExxonMobil Asia Pacific Pte. Ltd (Esso), Chevron Corporation (Caltex) and Singapore Petroleum Company (SPC). In this essay, we’ll be looking at how these four players apply the Marketing Mix in running their petrol stations across Singapore.
Marketing Mix is defined as “A combination of the product itself, the price of the product, the place where it is made available and the activities that introduce it to consumers that creates a desired response among a set of predefined consumers.” …show more content…
Out of the ‘Four Ps’, price is the only one that generates revenue. As pricing in the retail oil industry is unregulated in Singapore, pump prices are ultimately determined by the retailer themselves. As stated on their website, Shell prices their fuel based on a number of factors like the cost of distribution, promotional and marketing activities (Shell, 2012). The rest of the players post others factors like operating, capital costs and taxations. The cost of crude oil is cited as the common denominator by all four players as the main cost of their fuel.
Most of the petrol stations display their list prices prominently at their station entrance; this allows the consumer to know the pump prices at a glance. However, they each have their own station discounts and loyalty programs. In conjunction with the discounts given, further rebates are added when the