The Promotional Mix (Essay Sample)

The Promotional Mix Adopted by EQUATE Petrochemicals
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Introduction
The EQUATE Petrochemical Company was established in 1995, in Kuwait. EQUATE is an international combination that consists of companies that have ventured into the petrochemical industry. The companies that are constituted in this joint are The Dow Chemical Company (Dow), Petrochemical Industries Company (PIC) and Boubyan Petrochemical Company (BPC). In addition, Qurain Petrochemical Industries Company (QPIC) is also included in this joint. The company commenced the production process in 1997. The company is a sole operator of a wholly integrated world-scale production facility (Dashti, 2012). It has a production capacity of above 5 million tons in a year. This production is composed of high quality products of petrochemicals such as ethylene glycol, styrene and polyethylene. Besides, the company also produces polypropylene and paraxylene monomers. The markets in which the company sells its products are found in Asia, Middle East, Africa and Europe. Some of the EQUATE’s competitors include BASF, Sumimoto Chemicals and Saudi Basic Industries Corporations. BASF was involved in the production of consumer products, in the early years. In 1990, the company joined the petrochemical industries from the production of consumer products such as cassette recorders. It has above 160 joint ventures with consumers from approximately 200 countries. Some of the products that are produced in this company include ethylene, benzene and propylene. Sumimoto Chemicals was established in 1933. This company is involved in the manufacture of petrochemical products such as polypropylene, styrene and propylene oxide. The Saudi government owns 75% of the shares in the Saudi Basic Industries Corporation (SBIC). In 2007, it acquired one of the United States companies known as the GE plastics. SBIC involved in the production of petroleum products such as ethylene and polypropylene. In past twenty years, the petrochemical industry has witnessed a radical change (Dashti, 2012). The industry was dominated by Europe, United States and Japan initially. However, the production capacities of other countries in the world have been on the rise. This has been established in countries such as Saudi Arabia and Canada that have built plants to increase their production capacity. The move by these nations is attributed to the presence of wide crude oil reserve in them. Besides, these nations are also endowed with vast natural gas (Dashti, 2012). In the year 2012, EQUATE embarked on the development of a packaging product from Styrene. This followed the increase in demand of consumer products that need packaging.
Analysis of the Company’s Product Launching Strategy
EQUATE ensured that the four elements of market mix were met adequately. In the development of the styrene packaging material, the company ensured that it blends a variety of the compounds to manufacture the final commodity. This is because the blending resulted into a robust product that could last long. In addition, the packaging material from styrene is also flexible. It can be folded into small a small size that can fit into the pouches. This provides convenience to those who shop in markets for foodstuffs. Besides, the product can also be painted with flowers, colors and writings that are attractive to consumers. The company has also managed to set the price of their commodities at a level that can attract profits. They have ensured that the price of the product meets the needs of the consumers. This is crucial because the low price attracts consumers from all levels of income (Meyer, 2013). The company, therefore, has managed to gain more consumers than the competitors do. EQUATE achieved a balanced price through a market survey that focused on the consumer income and preference. Some of the strategies that were used in the survey include market scheming pricing and neutral pricing. In addition, the view of the consumers on the product against those of the competitors was also considered during the price setting. The company has adopted various methods of product promotions. Some of these mechanisms include internet and media advertisements. The company has also published the product in several magazines and newspapers. This has contributed immensely to the increase in sales and consumers. Besides, the company has also engaged in sales promotions and financing of projects using the products brand name. However, much effort has been diverted towards the internet advertisement due to wide coverage that is associated with it. Internet advertisement is also suitable to the company because it sells its products all over the world (Meyer, 2013). In their exploitation of the element of place, the company ensured that the product is provided in suitable places that are accessible to consumers. The packaging materials that are made from styrene are available in several stores of many nations.
SWOT Analysis of EQUATE
EQUATE has several strengths that give it a competitive advantage over the rival companies. This joint is composed of companies that are well established. These companies contribute immense pull of capital enabling the joint to enjoy the economies of scale. The company, therefore, provides stiff competition to the rivals. In addition, it also produces several products that are famous. These products play a crucial role in publicizing the new product. The company’s ability to produce products of high quality also enables it to be preferred by the consumers. However, the company has a weakness that could affect it negatively. There is the challenge of inability to fulfill the contracts between the company and its consumers. The company strives at gaining good image from the consumers by signing the long-term delivery services. In contrary, it is often unable to achieve this goal due to shortages of raw materials that occur periodically (Dashti, 2012). The implication of this is that consumers could shy away from such contracts. In addition, they could also move to competitors who are capable of fulfilling their agreements. Consequently, sales would decrease thus leading to the company making losses. In addition, this would also have a positive effect on the rivals due to increase in the number of consumers. There exist an opportunity in the development of packaging materials that are made of propylene oxide. This is because they are also capable of lasting long periods. In addition, they can also be applied in the packaging of perishable commodities (Tadajewski, 2011). The company should also explore other markets in the world to enable them increase their sales. There exist wide ranges of consumers in other continents such as South America where the business can generate adequate revenue. On the other hand, the competitors also threaten the operations of this company. One of the competitors that provide a stiff competition is BASF, which produces high quality commodities. In addition, it also has vast market network in various regions globally. Besides, the competitor has also a wide pull of capital that could be used to expand its production capacity.
PESTEL Analysis of EQUATE
The company has been able to face a stiff competition from SBIC due to the government support to the competitor. The Saudi government owns a large proportion of SBIC. This enables the company to receive adequate support in terms of finance. However, the political environment in...