Marketing Proposal: Chevron
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Running Head: MARKETING RESEARCH PROPOSAL: CHEVRON P a g e | 1
Marketing Research Proposal: Chevron
MKT350-1204A-02 Marketing Research Practices
Phase 5 Individual Project
Sabrina Mergenthaler
Colorado Technical University Online
Professor Jennifer Pyscher
November 12, 2012
*Author’s Note: Portions of this assignment have been used in previously submitted assignments
for this course to instructor Jennifer Pyscher
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Marketing Research Proposal: Chevron
Date of Release: November 12, 2012
By: Sabrina Mergenthaler
ofBusinetiqueAtlanta, GA
404-488-1518
For:Chevron, Inc.
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Table of Contents
Executive Summary …………………………………………………………. Pg 4
Problem Definition …………………………………………………………. Pg 5
Objectives of Research ……………………………………………………….. Pg 7
Research Design & Methodology ……………………………………………. Pg 7
Meeting Chevron’s Audience ………………………………………………… Pg 8
The Survey ………………………………………………………… Pg 10
The Results ………………………………………………………... Pg 13
Chevron’s Financial Status ……………………………………….. Pg 14
Limitations of Survey ………………………………………. Pg 14
Interpretation of Survey ………………………………………………. Pg 15
Observations, Suggestions, and Recommendations ………………………. Pg 15
Conclusion ………………………………………………………………. Pg 16
References …………………………………………………………….... Pg 18
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Executive Summary
Marketing is the tool that connects brands and consumers. Throughout any advertising
campaign objectives are identified that aim to address market-related interests. The process of
responding and relating to consumers relies on adequate research and clearly defined objectives
(Burns & Bush, 2012). For Chevron, it has been determined that a serious market-related issue
exists and has impacted the company’s bottom line. The issues that exist are very well-known
among the table of investors and leaders of Chevron. Actions and inactions in Ecuador, bribing
of political figures, and blocking of aid make up just a sample of the impressions affecting the
reputation of Chevron (Villarreal, 2012).
Admittedly, these woes have not crippled the company from performing as a top-five
internationally rated company. However, research conducted by our facility indicates that much
of this success may be attributable to convenience more than approval or ideal choice. Similar
indicators demonstrate the potential fault of this inability to perform as a number one company to
the infamous actions of Chevron in foreign nations (Survey, 2012).
It is our belief that Chevron could perform at the forefront of its industry. Understanding
the value of belief, we also want to help Chevron’s consumers believe in Chevron; and we want
to introduce those non-consumers to the new Chevron. Beliefs are based on action, though. In
measuring many aspects, Chevron’s reputation has been modified into a measureable component
contributing to final outcome: revenue. As this has been one of the major factors contributing to
most significant campaigns for Chevron in the past, we feel it is necessary to demonstrate how it
relates to our unfamiliar approach.
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Using a method developed by Charles Fombrum—the Corporate Reputation Quotient—
we feel we have successfully documented the layers of negativity lending to Chevron’s current
disreputable status (Fombrun, 2001). From registering the appeals of employees, leaders,
investors, suppliers, and consumers, this data has been used to generate the next and future path
for Chevron: a path that will fulfill repairing the current conditions and maintain the new positive
environment.
Through analysis of the information obtained, designing the marketing course for
Chevron’s future will be focused and driven by the goals of redefining the company’s image and
generating new visibility for all the right reasons. The following report provides the accumulated
data in detail, identifies the target audience, and indicates the process by which the future will be
written for Chevron (Marketing Data Analysis, n.d.).
Problem Definition
The laundry list of actions carried out under the blue and red chevrons of Chevron is
anything but short. Unfortunately, these stories make up the majority of familiarity of Chevron’s
international activities. The result of this awareness has diminished loyalty in consumers,
burdened revenues, embarrassed leaders, and hindered the reputation of Chevron overall
(Survey, 2012). Despite pleas of slander, Chevron’s attempts to diffuse the misguided judgments
have only resulted in further damages (U.S. Supreme Court, 2012).
Up against accusations of bribery, tampering, threatening, and even controlling an army
against civilians, it is a wonder the company still performs (Barrett, 2012). This in itself is an
indication of belief, albeit, a small one. However, for this reason, it is necessary to weigh
Chevron in ways it has never done before. According to Charles Fombrun, a company’s
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reputation is weighed by how it is perceived from all angles. It is fundamentally based on
specific images maintained by specific groups. The reputation-image relationship can be defined
as a committed, vibrant, and mutual affiliation decided by company reputation in all of its
various manifestations. Fombrun distinctly indicates that reputation can only be influenced
indirectly. However, bound with additional elements, such as trust and credibility, reliability and
responsibility, and support reputation acts also to set expectations of behavior. Maintaining a
high reputation is considered to promote trust and generate a competitive advantage over rivals
(Fombrun, 2001).
Based on the Corporate Reputation Quotient, data surrounding six factors of a company
can provide measurability to its reputation. These six factors include and measure:
Emotional Appeal-Good feeling about the company-Admire and respect the company-trust in the company (Fombrun, 2001)
Products and Services- Company believes in its products and services- Company offers high quality products and services- Develops innovative products and services- Offers products and services that are of good value (Fombrun, 2001)
Vision and Leadership- has excellent leadership- has a clear vision for the future- recognizes and takes advantage of market opportunities (Fombrun, 2001)
Workplace Environment- is well managed- appears to be a good company to work for- has good employees (Fombrun, 2001)
(Figure 1, n.d.)
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Financial Performance- History of profitability- Appears a low risk investment- Strong prospects for future growth (Fombrun, 2001)- Tends to outperform its competitors
Social Responsibility- Supports good causes- Environmentally responsible- Treats people well (Fombrun, 2001)
Coupled with the results of competitor SWOT analyses, Chevron can understand not only
what moves are necessary to repair their reputation, but they are able to make changes based on
methods being effectively used by competitors.
Objectives of Research
Performing this research should accomplish many objectives for Chevron. Specific to our
research plan, though, information gathering should focus on the perceptions and awareness of
the company on multiple levels. From employees to consumers and suppliers, Chevron will
become more familiar with people’s perceptions. This data will provide the foundation for which
weighted values will indicate the health of Chevron’s corporate reputation. Based on the
information obtained, Chevron can make adjustments to repair perceptions and build awareness
through the marketing channels.
Research Design and Methodology
As we are discovering more and more, awareness and perception are immense lenders to
the well-being of a company. Chevron is no different and can, over time, become impaired by a
tarnished reputation. That is why it is essential to generate a report that encompasses all the
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factors contributing to their reputation—from the inside to the outside. The collection of data for
this colossal approach uses techniques and methods from the Corporate Reputation Quotient
(CRQ).
Compiled from a variety of primary and secondary data resources, the CRQ uses a mix of
surveys, questionnaires, interviews, and observations across a specific audience to address exact
factors of the quotient (Corporate Reputation Quotient, 2012). While primary data will contribute
in large part to this research, secondary information is relevant to relating the issues of reputation
to financial impact. Collection of financial and trading data of not only Chevron, but its
competitors, will therefore prove vital to the process (Different Research, n.d.).
While secondary data is readily available, and often less costly, the collection of
primary data is extremely important and time consuming. The generation of this data relies on
appropriately segmenting an audience, determining the methods best for approach, gathering the
data, and finally, analyzing. For Chevron’s CRQ, our audiences vary. Specific targeting and data
collection methods will be used to define and communicate with each target (Different Research,
n.d.).
Meeting Chevron’s Audience
Selection of a sample is intended to reflect the entirety of a consumer population.
Creating a sample frame and determining a segment will aid in the crucial process; and may
require some extensive math. However, it is an important first step to conducting research as the
process produces more reliable and accurate data for equating. Often the sample is confused for
being a number of representatives. The truth is that the way the sample is selected—not its size
—determines its representativeness. Despite the argument that a larger sample-size produces
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more accurate data, the excessive cost is a major deterrent for using such methods (Burns and
Bush, 2012). For this reason, our research has focused on the most prime candidates—from
employees, consumers, and suppliers—for calculating Chevron’s reputation.
Typically, Chevron measures the success of the company only in terms of financial
reports and sales statistics (Chevron, n.d.). The failure of this type of data to distinguish
marketing strategies is simply in that it does not indicate the actual situations holding the
company from its goal. However, this type of information will be useful to assess the financial
performance portion of the corporate reputation quotient (CRQ).
Consumers
To assess data surrounding the products and service, social responsibility, and emotional
appeal the CRQ presents sections for consumer opinions. Consumers of Chevron are people who
purchase gas at a station; people who buy sodas and snacks in the convenient store; or use any of
the services offered by their nearest Chevron location (Different Research, n.d.). These
consumers will likely frequent the location often—perhaps because of its relativity to their
objective—home or work. They are likely to respond to the survey request because they feel
their response will generate a change for their community—or one they will benefit from. The
prime hours of consumption will be early mornings, and evenings, with potential purchases of
coffee, breakfast sandwiches, and gas. They make up the largest contribution to this research. As
such the consumer information will be obtained from a random sample. The population will
include the first 100 participants from a location in an online survey. The survey will be offered
to consumers by way of receipt at the top-performing ten stations of each state. Approximately
50,000 consumer participants will be surveyed (Burns and Bush, 2012).
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Employees
Similar factors for sampling employees, managers, leaders, and stakeholders of Chevron
will be used to define candidates for surveying for factors such as workplace environment.
Selection of these candidates will use a systematic approach, because as they are the people that
make up the company, particulars regarding the candidate are public knowledge—for instance,
work ethic, behavior, tardiness, current perception of the company, and so on. Using the
company’s list of employees and partners, candidates to participate should be chosen with these
considerations in mind. Additional parameters will include years of employment with Chevron.
The ideal participants will have worked with the company for one to five years. Candidates may
be interviewed during employee reviews, or asked specifically to participate by mail or e-mail.
Personalizing their experience will be important. Not unlike consumers, these are the people
hoping that their voice can make a difference (Different Research, 2012).
The Survey
While each audience will have a variety of data collection methods for addressing
particular factors, below is representative of the online survey received by consumers.
1. How would you describe the proximity of where you live to your local Chevron?
How would you describe the proximity of where you live to your local Chevron? 0-1 mile
1-3 miles
3-5 miles
5+ miles
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2. Which Chevron location did you make your purchase? (locations generated based on code)
Georgia
3. Approximately how often do you make a purchase of any kind at your local Chevron?
never rarely sometimes regularly
Rating
4. How would you rate your overall satisfaction with Chevron?
Unsatisfiedmostly
unsatisfied
Neither Satisfied or Dissatisfied
Mostly satisfied
Completely satisfied
Level of Satisfaction
5. Please tell us why you provided the ranking in the previous question.
6. What factors do you consider when choosing Chevron over a competitor ? Choose all that apply
Price
Cleanliness
Staff friendliness
Product Selection
Services Offered
Other (Please Specify)
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7. When it comes to your local Chevron, how important are the following qualities? Please rank these qualities in order of most important to least important, 1 is the most important and 5 is the least important.
1 Most
Important2 3 4
5 Least Important
Friendly staff
Price of products/services
cleanliness
opinion of company
quality of products and services
Convenience (location)
8. Are you aware that Chevron has locations throughout the world?
9. Please rate your level of agreement to the following statements.
Completely Disagree
Somewhat Disagree
Neither Agree or Disagree
Somewhat Agree
Completely Agree
I prefer to purchase products from companies that work towards greener products and processes.
I would go out of my way to use a particular brand if I knew if would benefit my community.
The representation of a company in another country is important to me.
I trust Chevron.
I trust Chevron's products.
10. How would you rank your familiarity with Chevron's international activities?
(Drop down includes: Not familiar at all, somewhat familiar, and completely familiar)
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11. How likely are you to continue choosing Chevron over competitors such as Shell and BP?
Very unlikely Somewhat unlikely Somewhat likely Very likely
Results of Survey
Of the hundreds of surveys that
were sent out to consumers, our department
received an astounding 59 responses.
According to our research, we could
determine that nearly 80% of Chevron
consumers are within a proximity that makes
the location most convenient to their route of
travel.
Additional findings reflect that more than 70%
of consumers are familiar with Chevron’s
overseas presence and actions. In fact, 20% of
people indicated that their personal opinion of
the company, and the priority of Chevron in
foreign affairs greatly affect their decision in
choosing Chevron over leading competitors
(Survey, 2012).
30
20
10
Not familiar at allSomewhat
familiarcompletely familiar
Familiarity of Foreign Activity
35 Proximity to Location 30
25
20
15
10
5
0-1 miles
1-3 miles
3-5 miles
5 +
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Chevron’s Financial Status
The nature of responses
clearly indicates that Chevron’s
emotional appeal is in great
jeopardy. When paralleled to the
Expected Versus Actual revenue
for the past quarters, we begin to
see how this jeopardized
reputation factor could be a
leading potential for Chevron’s
lack of top performance (Jayson, 2012).
Limitations
Despite overwhelming evidence, it is important to note that no research is without its
limitations (Pcyher, 2012). From sample size to potential ethical violations, research data is
always capable of being thwarted by misguided means. Much ethical-related concerns can be
alleviated with specific prohibitions to rewards or threats of any nature in exchange for
cooperation of the research process. However, these actions only limit the potential for
inaccurate data to be submitted in terms of ethics. Other, more mathematical, actions must be
taken in order to represent data accurately in terms of statistics.
For instance, because the sample size is not ideal, and only acts as a representative of the
entire population, we should consider the room for error in the data. Based on our calculation of
the sample size, and a level of confidence of 95%, the margin of error for this survey is ± 7%.
(Jayson, 2012)
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Despite this fact, we feel a larger sample size will further demonstrate the relation of Chevron’s
international actions and reputation to their overall performance.
Interpretation of Survey
Using the findings of our survey, the firm has been able to identify accuracy in the
hypothesis—Chevron needs a reputation overhaul in order to boost its sales. This has been
concluded from several indicators of our survey including:
o The majority of consumers lived within three miles of the Chevron location. Of those
who live in that radius, 16% of them checked “convenience” as a factor of purchase
decisions (Survey, 2012).
o Consumers indicated satisfaction with amenities offered by their location.
-When compared to competitor’s amenities, Chevron’s were identified as mostly the
same as competitors (Survey, 2012).
o Data demonstrated as much as 30% less is spent by consumers who were familiar
with Chevron’s international conduct (Survey, 2012).
o Chevron runs fourth in earnings among its greatest competitors (Jayson, 2012).
It is fair to base upon this data, that consumers do not trust Chevron. People, who cannot
trust a company, cannot fully indulge in all the company has to offer. The results are
astoundingly supportive of change in how Chevron is viewed by its consumers.
Observations, Suggestions, and Recommendations
Without a doubt, Chevron had a touchy situation on its hand regarding Ecuador.
However, issues such as these have more cost in battling than progressing. Though this firm
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cannot give legal advice as part of the consults, we feel it is in Chevron’s best marketing interest
to resolve the situation with as much ethical care and compassion as is necessary to reflect a
positive image within the region and across the shores. It is in Chevron’s best interest to maintain
relations in its current locations for many reasons. For our purposes though, we find an
alternative, mutually beneficial scenario for both sides. More importantly, we propose this as a
new marketing campaign—using media, such as reality shows, to open the eyes of American
consumers to what changes and efforts Chevron is making to help other nations.
Such a show would involve a team of environmentalists whose purpose is to test the
region for trace chemicals, educate and clarify, and attempt to generate forgiveness and more
favorable relations. A show of this nature would be sponsored by Chevron.
However, this only draws attention to the problem. While it shines a better light on
Chevron to those who are not aware, there will be skeptics. That is why the new campaign for
Chevron, Thinking Globally, Thinking Locally, will kick off. The campaign will encourage
consumers to make purchases at Chevron as portions of every purchase will go back into the
local community. Chevron can use these donations to support local youth teams, churches,
events, and more to generate media hype and public awareness. They can even monopolize on
using videos of their donations and the reactions as clips for future commercials in the campaign.
This strategy will help skeptics to see that Chevron is thinking globally and thinking locally—
giving back to all those who gave to them.
Conclusion
These are just samples, though, of how the information obtained in our survey could be
used to enhance Chevron’s approach and reputation. There are many more options to be derived
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from our findings. However, all companies must perform some type of research in order to
progress their future. Chevron is no different, but has historically chosen to rely on financial data
to serve their purposes. Clearly these methods have proven incapable of maintaining a more
crucial identifier—the company’s reputation. We have conducted the research necessary to
measure Chevron’s corporate reputation quotient. Now, it necessary to use the evidence collected
to support a marketing campaign that repairs and maintains Chevron’s more healthy reputation.
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References
Barrett, P. (2012). The Chevron Oil Pollution Mess Gets Messier. Bloomberg Businessweek. Retrieved from http://www.businessweek.com/articles/2012-07-24/the-chevron-oil-pollution-mess-gets-messier
Burns, A., Bush, R. (2012). Basic Marketing Research Using Microsoft Excel Data Analysis, Third Edition. Pearson: Upper Saddle River, NJ
Chevron. (n.d.). The Chevron Corporation. Retrieved from http://www.chevron.com
Corporate Reputation Quotient. (n.d.). 12manage. Retrieved from http://www.12manage.com/methods_corporate_reputation_quotient.html
Different Research Methodologies. (n.d.). M.U.S.E. Marketing Research Practices. Colorado Technical University. Retrieved from https://campus.ctuonline.edu/courses/MKT350/p2/hub1/5414.pdf
Fombrun, C. and Foss, C. (2001). The Reputation Quotient, Part 1:Developing a Reputation Quotient. The Guage. The Reputation Institute. Retrieved from http://www.reputationinstitute.com/frames/press/01_15_14_GUAGE.pdf
Jayson, S. (2012). Are You Expecting This From Chevron? Daily Finance. Retrieved from http://www.dailyfinance.com/2012/07/23/are-you-expecting-this-from-chevron/
Marketing Data Analysis. (n.d.). M.U.S.E. Marketing Research Practices. Colorado Technical University. Retrieved from https://campus.ctuonline.edu/courses/MKT350/p4/hub3/5416.pdf
Pyscher, J. (2012). Live Chat. Marketing Research Practices. Colorado Technical University.
Villarreal, R. (2012). Chevron Still Won’t Bow to $19B Court Decision in Ecuador Pollution Case. International Business Times. Retrieved from http://www.ibtimes.com/chevron-still-wont-bow-19b-court-decision-ecuador-pollution-case-844401
Werbach, A. (2010). The Failure of Chevron's New 'We Agree' Ad Campaign. The Atlantic. Retrieved from http://www.theatlantic.com/business/archive/2010/10/the-failure-of-chevrons-new-we-agree-ad-campaign/64951/