Tarnished reputation Case Brief
Although BP faces a $40 billion cleanup bill, a slew of negative puyblsimcit knowledg eearnd divailcis safety division at BP, CEO Dudley has appointed a board member with new loss of $4.9 billion, the company is striving to rebuild its reputation. Ion madadkietioBnptoinat ° process safety. The company is intent on attaining growth arnodmwisielldpta Of afest offshore energy operator in the business. Unfortunately, a day after this announce-safest in order to spend more on oil exploration. Du ey also so the sment, a U.K. safety regulator reprimanded BP for safety issues on three of its North _es rigs—which draws BP’s commitment into question. Sea Implications for BP’s Marketing Strategy BP’s “Beyond Petroleum” positioning backfired due to the Deepwater Horizon environ_ send man years building a reputation, and it can be tare_ mental disaster. A firm can p y fished in a single day through an event that destroys the confidence of customers and other stakeholders. In this case, BP became the target of almost every group on the Gulf Coast negatively impacted by the environmental effects of the oil spill. BP’s attempt to move its product away from being a commodity like those of its competitors failed, in fact, about the only strategy available for BP was to apologize and try to compensate the victims of the disaster. One of the worst things that can happen is to make claims of being a sustainable company and then be involved in a disaster that is just the opposite. A priority for BP’s future marketing strategies, at least for its consumer products, is to restore its reputation as much as possible and build a foundation for more realistic and authentic marketing activities to build strong relationships and trust with consumers. Another area where BP the marketing strategy has to be improved is its public rela-tions activities with various stakeholders such as regulators, local government entities business communities, and those who earn their living directly from the Gulf Coast environment. The company has taken action by investing heavily in advertising about the recovery from the disaster and the restored Gulf Coast beaches and hospitality industry. As BP does a good job with its public relations and compensation programs, it is attempting to create the groundwork for developing better relationships with customers in the future. From the beginning, BP proved it was able to overcome significant obstacles. It went from near bankruptcy to being one of the largest energy companies worldwide. BP has worked hard to overcome its negative image through sustainability marketing initiatives and social responsibility. However, BP’s emphasis on environmental responsibility backfired after the Deepwater Horizon disaster. Although it made great strides in repositioning its brand, it failed to properly manage its brand as a socially responsible company. The damage to BP’s Beyond Petroleum marketing strategy is not easy to repair. The development of trust is based on a firm’s commitment to integrity, transparency, and a concern for all stakeholders. In the future, BP needs to develop a marketing strategy that is seen as authentic in the face of that it claims to be. the socially responsible corporation
Questions for Discussion
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- Analyze BP’s efforts to improve sustainability and its reputation prior to the Deepw Horizon disaster. Was the company on the right track? Why or why not?
- Because most BP products can be viewed as commodities, do you think consumers will? avoid purchasing from BP because of its track record and the Deepwater Horizon disaster. Why or why not?
