MPS Branding Thesis: British Petroleum

SVA. MPS BRANDINGTHESIS PRESENTATION: CLASS OF 2013

Hannah BakerChristina BouraadLauren MartielloTyler Adam Smith

SVA. MPS BRANDING. THESIS PRESENTATION: CLASS OF 2013 BRITISH PETROLEUM July 23, 2013SVA. MPS BRANDING. THESIS PRESENTATION: CLASS OF 2013 BRITISH PETROLEUM July 18, 2013

SVA. MPS BRANDING. THESIS PRESENTATION: CLASS OF 2013 BRITISH PETROLEUM July 23, 2013


AMERICANS RESENT BIG OIL


Because it is reckless

Big Oil damages our environment, hurts human health, threatens our drinking and irrigation water - Elizabeth Shope Natural Resources Defense Council


Because it is greedy

As Americans feel pain at the pump, Big Oil wins big -The Checks and Balances Project


Because it plays by its own rules

In some ways the government depends on big oil to know whats going on out there. It creates the impression that the government is not in charge - National Commission on the BP Deepwater Horizon spill


WHO IS BIG OIL?


Big Oil is...

88% OPEC

12 %BIG OIL

Global Oil Reserves

OPEC: Organization of Petroleum Exporting Countries

http://www.eia.gov/energy_in_brief/article/world_oil_market.cfm


Big Oil is...Global Oil Reserves

8%

ShellExxon MobilBP

88% OPEC

12 %BIG OIL

http://www.eia.gov/energy_in_brief/article/world_oil_market.cfm

OPEC: Organization of Petroleum Exporting Countries


Big Oil Business Model

UPSTREAMExplorationDevelopmentExtraction

Long Term Investment



DOWNSTREAMManufactureRefineryRetail

Short Term Investment



LIFE CYCLE


Big Oil Makes Record Profits Q1 2013

Six of the major international oil companies topped $50 billion in combined profit for the first time.

http://abcnews.go.com/Business/story?id=5503955&page=1


IF AMERICANS BELIEVE THAT BIG OIL BEHAVES SIMILARLY...


Why did they single BP out? AIG Goldman Sachs Halliburton American Airlines Bank of America Citigroup

BP J.P. Morgan Wells Fargo Comcast

123456

78910

http://finance.yahoo.com/news/10-most-hated-companies-america-163000649.html


BECAUSE: No other Big Oil company claimed to be anything other than an oil company


In 2000, BP rebranded themselves

From To


They introduced a new corporate slogan Beyond Petroleum which communicated their focus on alternative energy.

It was accompanied by a $200 million ad campaign.

In addition...


BPs BRAND VALUATION

Resulting in...

Between 2000 to 2009 BP made Interbrands top 100 global brands list, making it one of the most valuable brands in the world for a decade.

http://www.interbrand.com/en/best-global-brands/previous-years/best-global-brands-2009.aspx


BP has tried to position itself as the greenest... A 2008 study shows that BP tops all other brands in the category -John Porretto, AP Business Writer

http://www.interbrand.com/en/best-global-brands/previous-years/best-global-brands-2009.aspx


AND THEN THE SPILL HAPPENED...


BPs Backlash


The Problem


One of the biggest embarrassments for BP from the spill was that the company ran a very successful campaign over the past decade to highlight its commitment to environmental concerns.

The success of the campaign was dubious as it turned out that BPs image was the antithesis of what it had projected -Trefis Team, Forbes

http://www.forbes.com/sites/greatspeculations/2012/02/07/bp-goes-for-public-relations-makeover-to-get-beyond-gulf-spill/

The Problem


The Problem

BP has become the embodiment of all that is wrong with the industry and has severely fallen out of favor with the American public.


But, globally there is a disconnect

In a survey on global perception;BP ranked amongst top 5 of environmentally responsible brands

http://www.globescan.com/commentary-and-analysis/featured-findings/entry/positive-ratings-of-bp-as-environ-mentally-responsible-suggest-its-rehabilitation-is-underway.html


Why the global ranking?

DEVELOPING COUNTRIES UNDERDEVELOPED COUNTRIESPolitical stabilityEntrance to global marketJob creationDeveloping expertise in industryNation wide community building

Food productionDevelopment of educationJob creationBasic energy needs (survival)Local community building


Why the global ranking?

UNDERDEVELOPED COUNTRIESPolitical stabilityEntrance to global marketJob creationDeveloping expertise in industryNation wide community building

Food productionDevelopment of educationJob creationBasic energy needs (survival)Local community building

DEVELOPING COUNTRIES


Why The Discrepancy?PERCEPTION IN THE U.S.

Americans dont see how oil provides for this base level of needs. Instead, they experience big oil from two touchpoints: at the pump, and when there is an accident


Why focus on the American public?

This is where BPs real problem exists

This is the market to ensure future success


http://www.nytimes.com/2013/04/28/opinion/sunday/the-dark-side-of-ener-gy-independence.html?pagewanted=all&_r=1&

How is this manifested?

U.S. Energy Independent

by 2030

Exporter


http://www.economist.com/node/2705562



by 2030

OPEC Limited

Resources

Exporter Importer




by 2030

OPEC Limited

Resources OPEC

25 %BIG OIL

http://www.economist.com/blogs/freeexchange/2012/04/oil

Global Oil ReservesExporter Importer


AMERICANS RESENT BIG OIL


AND TO AMERICANS BP IS THE EPITOME OF ALL THAT IS WRONG WITH THE INDUSTRY


Why are we here?

We have been asked to address the perception of the BP brand in the USA to ensure future success.


Previously...

$20+ billion

(Payouts)


$20+ billionNew

Communication Strategy

Sway Public

Perception?

+

Previously...


$20 billionNew

Communication Strategy

People Never Forget

Oil Spills

Sway Public

Perception?

Previously...


WHAT DO YOU DO WITH A BRAND THAT HAS FALLEN SO FAR FROM OF GRACE?


CAN BP TURN ITSELF AROUND?


Case study


Why does this matter?

Suffered a severe setback

HIGHLY VALUED BRAND


HIGHLY VALUED BRAND


Brand perception is shaken



HIGHLY VALUED BRAND


Brand perception is shaken

But...used this to reset and built back trust



RESULTING IN TREMENDOUS COMEBACk


THE GULF SPILL WAS THE WORST ENVIRONMENTALDISASTER IN U.S. HISTORY


BUT THE TIME IS NOW FOR BP TO MOVE FORWARD


BP is in a unique position for change

Divested significantly

Increased operational efficiency

Flexible business

model


BPs CEO is a champion for change

Sometimes events like this shake you to the core, the foundation, and you have two responses, one is to run away and hide, the other is to respond and really change - Bob Dudley, ABC News 2010


SO WE HAVE A BRAND IN A DISADVANTAGED POSITION, BUT WITH A PASSION AND DETERMINATION TO TURN THINGS AROUND...

- Underdog Effect from Harvard Business School


WHICH IS A CLASSIC TALE OF AN UNDERDOG


WHILE AMERICANS RESENTBIG OIL, THEY CAN RELATE TO AN UNDERDOG...


IN THIS NARRATIVE, THE AUDIENCE NEEDS TO HAVE A EMOTIONAL CONNECTION.

WHICH WILL BE CHALLENGING IN THIS CATEGORY.


A measure of how the brand influences customer demand at the point of purchase.Utilities (1%) Industrial (5%) Pharmaceutical

(10%)Retail (12%)

Information technology

(20%)

Food & drinks (50%)

Luxury goods (70%)

Brand Loyalty


WHY IS IT THAT THERE IS NO BRAND LOYALTY IN THIS CATEGORY?

BECAUSE THERE IS NOTHING TO BE LOYAL TO.


SO HOW CAN WE CREATE LOYALTY?


RESENT ----------------- ADMIREDOBLIGATORY-------- PREFERREDVILLAIN ---------------------- HEROREACTIVE ----------- PROACTIVEFACELESS -------- PERSONABLEUNTRUSTWORTHY --- TRUSTED

Our Goal


The spill forced them to be innovative and become an industry leader on clean up They are re-addressing protocols unchanged from the 80s

BPs strengths

SAFETY


They have ultra deep water expertise

They are the most efficient company in UPSTREAM operations

BPs strengths

EXPLORATION


SAFETY &EXPLORATION

BP CAN OWN


THEY HAVE ALREADY REDEFINED SAFETY


THEY HAVE THE ABILITY TO REDEFINE EXPLORATION!


Repositioning:


Repositioning:

BP IS FUELING CHANGE


How do we become the brand that fuels change in the industry?

OUR STRATEGY

Phase TWO: Fueling Change

Externally (2017)

Phase THREE: Fueling Change Industry Wide

(2020+)

Phase ONE: Fueling Change

Internally(2015)


Phase ONE: Fueling Change

Internally


Brand Pillars: the guiding principals

INTERNAL WORKSHOPSWe will unify the team by providing them with a compass, the four pillars that the BP brand will stand on.


Brand Compas: the guiding principals

PIONEERING

DISCIPLINED

COURAGEOUS

COMMITTED TO HUMANITY


We are explorers of this earth. We have literally gone where no one has gone before. When it comes to providing people with their basic needs, no challenge is too intimidating to dissuade us from our mission.

PIONEERING

DISCIPLINED

COURAGEOUS




We are in a volatile business but we are trained and committed to be as risk adverse as possible. Each one of us personally takes on this pledge to make the industry safer and cleaner.

PIONEERING

DISCIPLINED

COURAGEOUS




We are poised for significant change and prepared to become the thought leaders of the industry. No matter what the future brings, we will never sit back on our laurels and will always seek new ways to push forward.

PIONEERING

DISCIPLINED

COURAGEOUS




We are responsible for helping keep the world safe. We do not take this responsibility lightly and plan to shepherd our planet long into the future.

PIONEERING

DISCIPLINED

COURAGEOUS




BP Think Tank


Innovation inspires change. But what inspires innovation? The think tank is a place where ideas are born to rethink and reestablish industry standards for a better tomorrow.

BP Think Tank


Open Letters to America


Phase TWO: Fueling Change

Externally


Open Letters to America


Campaign


Lesson Learned Campaign

Dont downplay your mistakes.


Dispersant works differently in sea water than clean water.



Decisions in the ocean affect life on the shores.



Preparing for a world where things only go right is extremely dangerous.



Transparency at the Pump


Fueling the Future Program


Phase THREE: Fueling Change Industry Wide


FUELING CHANGE Conference

(Clockwise)The Hot Shots Firefighters MIT Valedictorian 2012 - Christina Curlette

MakerBot, WordPress, Blue Bottle Coffee, Typekit, True Ventures, Sphere & About.me Founder - Tony Conrad

The Founders of Vice Mag-azine - Suroosh Alvi, Shane Smith, Gavin McInnes

Patagonia CEO - Casey Sheahan

Nobel Prize in Chemistry 2012 - Robert J. Lefkowitz


Industry Wide Certification


THOUGHTLEADER


THOUGHTFULLEADER


POWERLESS


HOPELESS


DISAPPOINTED


A company that actually learns from its mistakes, offers a heartfelt apology, and humbly asks for forgiveness.


A company that actually learns from its mistakes, offers a heartfelt apology, and humbly asks for forgiveness. A company that is willing to educate us about our consumption and about their business practices.


A company that actually learns from its mistakes, offers a heartfelt apology, and humbly asks for forgiveness. A company that is willing to educate us about our consumption and about their business practices. A company that we know is inspiring stricter, more consistent, more responsible measures for the entire industry.


A company that actually learns from its mistakes, offers a heartfelt apology, and humbly asks for forgiveness. A company that is willing to educate us about our consumption and about their business practices. A company that we know is inspiring stricter, more consistent, more responsible measures for the entire industry. A company that does everything in its power to give us hope for the future.


THIS COMPANY IS BP


THE FUTURE BEGINS TODAY

THANk YOU

MPS Branding Thesis: British Petroleum

Business

Transcript of MPS Branding Thesis: British Petroleum