Total Marketing Strategy: You Won’t Come Back by Chance
CONSUMER BEHAVIOR
CASE STUDY 1-1
Total Marketing Strategy: You Won’t Come Back by Chance
On February 9, 2000, the European Commission accepted a merger between the two biggest French oil companies, Totalfina and Elf Aquitaine, to become The Total Group. The Total Group became the sixth largest oil company in the world.
Operating in more than 130 countries, Total has activities in all aspects of the oil industry: exploration, refining and distribution petroleum, and petro-chemical products. The consolidation between the two companies was particularly challenging for the company’s retai-l division because many Total and Elf outlets, each offering gas/diesel and a convenience store, are located within a common trade zone.
Consumer motivation and decision making for convenience products like those offered by the Total Group are very much based on getting high utilitarian value.
Consumers choose only two simple thoughts: (1) which place is the closest? (2) which place has the lowest prices?
Hypermarkets like Carrefour pursue a very aggressive price policy and offer gas at particular low prices as a way of luring customers.
First Marketing Strategy of Total * To reduce the risk of cannibalization, Total close relatively low performing stores within trade areas. In this way, a single store might be left to serve the same trade areas where two store had existed before.
Second Marketing Strategy of Total * Total consumer research to identify two primary market segments with differing perceptions and sensitivities to convenience store attributes. * Total also developed a loyalty program to reward its best customers by increasing their service levels and gave greater product assortment in the “Bonjour” convenience stores.
The Bonjour stores create some issues for Total and some potential value for customers but they realized that distribution of general merchandise is not a core competency.
They decided to partner with a French
CASE STUDY 1-1
Total Marketing Strategy: You Won’t Come Back by Chance
On February 9, 2000, the European Commission accepted a merger between the two biggest French oil companies, Totalfina and Elf Aquitaine, to become The Total Group. The Total Group became the sixth largest oil company in the world.
Operating in more than 130 countries, Total has activities in all aspects of the oil industry: exploration, refining and distribution petroleum, and petro-chemical products. The consolidation between the two companies was particularly challenging for the company’s retai-l division because many Total and Elf outlets, each offering gas/diesel and a convenience store, are located within a common trade zone.
Consumer motivation and decision making for convenience products like those offered by the Total Group are very much based on getting high utilitarian value.
Consumers choose only two simple thoughts: (1) which place is the closest? (2) which place has the lowest prices?
Hypermarkets like Carrefour pursue a very aggressive price policy and offer gas at particular low prices as a way of luring customers.
First Marketing Strategy of Total * To reduce the risk of cannibalization, Total close relatively low performing stores within trade areas. In this way, a single store might be left to serve the same trade areas where two store had existed before.
Second Marketing Strategy of Total * Total consumer research to identify two primary market segments with differing perceptions and sensitivities to convenience store attributes. * Total also developed a loyalty program to reward its best customers by increasing their service levels and gave greater product assortment in the “Bonjour” convenience stores.
The Bonjour stores create some issues for Total and some potential value for customers but they realized that distribution of general merchandise is not a core competency.
They decided to partner with a French