Total : a success based on the brand development strategy

Résumé du document

The company was born in 1924 after Raymond Poincarré, the French president, asked Ernest Mercier to create a French oil company. In 1973, the significant growth of the activity enabled the French company to be present all around the world in the Middle East, North America, Oceania, Europe and Africa. Thanks to this strategy, Total is listed on the London Stock Exchange and on the Paris Stock Exchange as well. In 1980, after having seen some important growth, the group decided to grow through the acquisition of several petrochemical companies. Building from its success, Total merged in 1999 with PetroFina, becoming TotalFina, and in 2000 with Elf Aquitaine to create TotalFinaElf. Thanks to that strategy, the group is, now the world's fourth-biggest oil company beside Exxon Mobile, Shell and BP. Nowadays, TotalFinaElf has chosen to be Total SA and is run by its managing director (Christophe de Margerie) and the president of the board of directors (Thierry Desmaret). The group has more than 96000 employees. Financially, Total has a capitalization of 117 billion, for a turnover of 158 billion and a net result of 12 billion. This report could not treat the whole study of the market, and we will focus on the B to C relationship with the petrol distribution and more precisely on the service stations. The goal is to understand how Total managed and is managing its brand development strategy. To be aware of it, we will try to understand the relationship between the company and the consumers.

Extraits

[...] So, they choose diagonal stripes instead of the soap format, with 3 colors: orange, blue and a yellow straw-colored. The brand name is set in the middle, but the font format is the same (to keep logic with the former logo). This new one emphasizes the strength with this powerful font, the assertiveness with the stripes and the friendliness with the warm orange (this information coming from the official company explanation). The last update has been made in 2003, after the mergers between Total, PetroFina and Elf Aquitaine. [...]

[...] That's why you can see outstanding lands, with a background of emotional music, to create a feeling of wellness and connection between the brand and nature. The consumer would be attracted by Total in his next purchase, subconsciously. D. Price The price is the most important thing for the consumer and maybe the factor with the less breathing space for the company. Indeed, the price is calculated on speculation and on from the stock exchange, the daily number of barrels everything impact it. [...]

[...] In some cases, like the international to access to drilling areas, Total prefers avoid any reaction and act like if it would be a myth. Moreover the petrol distribution market being few competitive (the principal competition is focused on the oil treatments, chemical market and B to B relationship), the impact is very negligible. III. The role of the marketing mix The brand development depends on a lot of factors, internal and external, and is supported by a marketing mix policy. [...]

[...] As you can see below, the font for is modernized and is no longer into the logo but underneath. The diagonal stripes have disappeared and have leaved the way to circled stripes, with a new color: a light blue. This update means that Total is now a powerful company with a worldwide presence (circled stripes). Moreover, the separation and the smaller font express a long-term strategy and a new ecology policy, thanks to the light blue (representing a natural sky and an ecologic policy). [...]

[...] Some of the readers could ask: What about the price? I would answer that the price is closely the same and can't be enough to attract the client. But as I say before, the petrol is related to the car, and we know through the market studies that the car is the second most important good, after real-estate. That means the oil companies have to play on this feeling and instill an image of a perfect relationship between the car owner and the distributor. [...]