Every so often, an oil company experiences an environmental catastrophe of disastrous proportions. As evidenced by the up-to-date Gulf oil spill, the Exxon Valdez oil spill and countless other eco-disasters, these occurrences are a tragic occupational hazard of the power industry. In theory, they should not be a surprise -- anymore than an earthquake in California would be a shocker. Of course, a big enough tremor in Los Angeles will generate nationwide news coverage. The examine from a brand marketing standpoint is simple: is there whatever oil clubs can do, given the probability of an oil spill?
In order to sass this question, it is helpful to back up and look at the consumers' view of the industry. When it comes to the consumer, oil clubs have a unique benefit over, say, a perfume company. This is that the oil clubs offer a necessity. Everyone needs oil; perfume is a luxury.
From a branding and marketing standpoint, this benefit truly has negative connotations. The oil clubs are truly big and truly profitable -- even when the cheaper is in the proverbial toilet. In the deep recession year of 2009, when roughly Everyone was suffering financially, the oil clubs made billions of dollars in profits. A 2006 Ftc study of gas price manipulation found that the narrative increases in gasoline prices were "not substantially attributable to higher costs." It seems the oil clubs all the time take benefit of their financial opportunities with no regard to buyer goodwill. These clubs are often viewed as monopolistic, money-grubbing, price-gouging, predatory goliaths. In a 2008 Harris poll of 20 major industries, only the tobacco commerce had a lower rating than the oil clubs on the topic of how good or bad a job they accomplish in serving the needs of consumers.
You could say, from a branding perspective, power clubs are already beginning off on the wrong foot. After all, what is there to love about an oil company? Do you trust them? Do you have any affinity to any oil company? Do they do whatever for you as a person? Do they make you feel good in any way? This makes it all the more difficult for an oil company to accomplish branding and marketing tactics that prepare for the worst. The power commerce has to rank among the worst Pr and branding industries. We know all about the 1989 Exxon Valdez nightmare which was widely considered the worst corporate Pr fiasco of all time. But what has the commerce done to counter its image since then?
One could argue they truly have made some positive strides. Let's take the current Gulf oil spill. Bp has a real disaster on its hands, and they have clearly learned a lesson from Exxon's Pr disaster. The Ceo of Exxon was nowhere to be found until six days after the Valdez disaster. When he ultimately did appear, it was only to hold a press discussion to deny responsibility to disclose the plan to clean up the mess. He also blamed the media for turning the spill into a big deal. His refusal of media interviews and faultless lack of remorse highlighted one of the worst Pr gaffes in history. It conveyed an "ivory tower-esque" tone of arrogance. To his credit, the Ceo of Bp, Tony Hayward, has learned from Exxon's Pr mistakes and has been on air and is taking full financial responsibility for the spill cleanup.
As far as brand marketing strategy is concerned, it is fair to say that oil clubs have increased their efforts to carry a more positive image to the consumer. Shell has been focusing on developed technologies and stock execution enhancements along with sponsorships like Eco-Marathons, Exxon Mobil has been supporting science education, and Bp and others have been focusing on their "green" strategy. Unfortunately for Bp, that positioning is tough to retain given the Gulf oil spill.
Even with the increased efforts, let's not pretend the question has gone away (as if that is an easy thing to do at this point in time). The marketing and branding work of oil clubs is far from done. Oil and power clubs must organize a sincere, long-term strategy to generate brands that join together with their consumers on an intellectual and emotional level. In short, they need to define a plan to evoke positive feelings from their consumers.
One good way to heighten their brands would be to come to be good corporate citizens. Oil clubs make massive profits, so how about giving back? An exhaustive study by the Committee Encouraging Corporate Philanthropy shows that the power industry's Total midpoint Giving as a Percent of revenue (0.05%) is the lowest of any other major industry! [For reference, health care clubs give 0.6%, or 12 times as much as the power companies.] Once again, the oil clubs don't understand the plan of branding.
If anything, the Gulf oil spill should present Bp competitors with an chance to reinforce their brand marketing strategy to capitalize on collective desire for safer drilling and processing measures. Competitors should be highlighting the steps they are currently taking to preclude the next major ecological disaster.
Are vigor companies and Brand Marketing Strategy Like Oil and Water?