Marketing Proposal: Chevron

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

M A R K E T I N G R E S E A R C H P R O P O S A L : C H E V R O N P a g e | 2

Marketing Research Proposal: Chevron

Date of Release: November 12, 2012

By: Sabrina Mergenthaler

ofBusinetiqueAtlanta, GA

404-488-1518

For:Chevron, Inc.


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


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.


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


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.)


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


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


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).


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


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)


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)


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 +


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)


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


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


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.


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/