Royal Dutch Shell is a multinational company that deals with petroleum products. This company is of British and Dutch origins. The royal Dutch company was recognized as eighth largest world corporation in 2010. Shell’s headquarters is in Netherlands specifically in Hague with another office in the capital city of the United Kingdom. The operation of shell is extremely extensive since it carries its operation in over one forty countries of the world. Basically Shell is one of the largest world’s businesses. The shell group has been in operation from the month of February in the year 1907. At that time shell was merged between two companies where one of the companies was allocated 60% of the total share while the other got the remaining 40%. This was basically done in order for Shell to be initiated in other countries. The Royal Dutch company was basically founded in 1890 under the leadership of August Kessler (Mclntosh and Thomas 2001; Malcolm, 2001; Robert & O'Beirne, 1957).
The royal Dutch Shell is basically referred to as Shell a name that is linked to the functions of trading and transportation that the company carries out. The company started to gain its ground in 1907 though by the time its owners had not started referring it to Shell. The royal Dutch petroleum company’s brand is the shell and today this brand is recognized by many as a commercial symbol. It’s well known as a pectin a reflection of the sea shell; the design of the shell is fully based on the on of the sea shell and the most recent design was done by Loewy Raymond in the year 1971. The shell was designed to in comprise two colors which are yellow and red; a reflection of the national flag of Spain. This happened during early years of the company since there was a strong relationship between Spain and California. Their was a separation in the companies name but this was removed in 2004 when the two separate companies decided to merge in order for them to operate as one entity as its today (Ferrier and Bamberg 1994; Subir, 2003; Jemera, 1994).
Identity of the brand
The brand of the royal Dutch petroleum company is a shell which is similar to the common sea shell. The shell was designed in way that it has two colors which include red and yellow. The royal Dutch shell company runs five other businesses which include production and exploration of power and gas. Other activities include marketing and refining of petroleum products, besides that the company is involved in shipping, transportation of chemicals as well as trading. These are the activities which are carried out in all the one hundred and forty countries where shell has been established. The primary business of shell is managing of the oil company which is vertically integrated. This basically involves setting up of commercial and technical expertise that is crucial in all the stages that have been set up in this vertical system. The stages that are usually followed include oil search, production, and refining transportation, marketing as well as trading (Marconi and American Marketing Association 2000; Victor, 2007).
The above steps are necessary for the competence of the company. The other business that shell is involved with is exploration of natural gas. A significant amount of all shell profit is from trading of natural gas. The company’s vertical integration is important for a reasonable scale of economies and entrance hindrance though at the moment the two businesses are trying to be independent from each other. The other business which is handled by shell is chemical trading which generally brings about a third of all the profits that are accrued by the company. The chemical business has been initiated in many countries and as a result there are about forty thousands petrol stations as well as forty seven oil refineries. When you merge brand and experience what you are basically doing is to engage the brand and the people. This is coupled together with the memories that result from the two (Ranan, 2007; Christopher, 2004).
The brand is a tool that is used by the company to create its impression to its potential customers. What the company does is to basically figure out a brand that will express its goodness to the world. Therefore it’s essential for the brand to communicate the necessary information that the company intended to. Experience mainly deals with the people and what they want to accomplish. One of the essential things that we should put in mind is that the identity of a company is expressed through its brand and in this case royal Dutch petroleum company is made know to its clients through the shell. It’s not always the case that customers will get the intended information through the brand. For these reason every company has a responsibility to ensure that the information it wanted to convey is not diluted through wrong interpretation of the brand by the customers (Graeme, 2001; Melvin, 2003).
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One of the most impressive things about the shell is that it’s ultimately unique and easy to master. The royal Dutch company ensured that the shell conveys the information that the company intended to convey. The shell logo was designed in a way that it sufficiently maintains the initial quality in absence of high resolution. Its unique design has been so far successful in helping people to identify with the company. One of the unique qualities about this brand is that is able to convey information bout the company which words alone fail to convey. Consumers have a trend of associating a brand with the things that they love most therefore it’s important for a brand to be attractive to its customers. The shell has this attribute because its been designed in a way that its lovable and good to look at besides that, its logo has drawn people close to the company (Upshaw 1995).
The royal Dutch shell company is the third petroleum and gas company in the whole world. This victory has come up as a result of proper marketing. The company has a vast network service which is global; it has been awarded the position of the largest retailer in the whole world. Shell has been considered by many as the best fuel brand because of its advertising slogan. The brand name is essential for removal of any confusion from the other related brands. For these reason branding is not all about choice of market but about making a company to be seen as the only solution to the underlying problem. It’s therefore important for a brand to clearly deliver the intended information as well as reveal the company’s credibility. The brand should also be able to connect your customers emotionally which includes buyer’s motivation as well as implementation of the customer’s loyalty (O’Guinn, Allen and Semenik 2008; Karison, 2005).
Successful brandings comes about by understanding your client’s needs and prospects since whatever is usually advertised is the brand. Therefore productive marketing occurs when the brand is integrated with company’s strategies at public concerns. Marketing should be done until the brand is incorporated in the client’s hearts. As a result client experience and perception can be improved though it’s not always possible to influence the perception of the customers. A brand that is usually considered strong is the one that cannot loose its value therefore it consistently stays in the hearts of customers. Royal Dutch company took time to develop its brand since its essential in underlying marketing foundation as well as the proper communication that is needed before a company thrives. Royal Dutch shell has not been left out in social responsibilities which have been essential in increasing its market. Its incorporation in social responsibility has yielded much fruits by encouraging the youths to start their own businesses in about 26 countries (Belch and Belch, 1998).
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Strategies used in Brand Promotion
First it’s important that the brand in use stands out among other brands. Victory is realized when the company is strong and extremely adaptable than all the available competitors. A brand simply functions as a backbone to which the company can be able to hang its products. It’s important for a brand to be catch in that it’s not possible for people to pass by it without noticing. The brand carries the company’s ideology therefore those who know the brand are more likely to know what the company stands for. There are many things which are portrayed by the brand for instance the company values, weakness as well as ideas. Finally a brand has the capabilities that are essential in influencing the clients therefore the brand is in a position to create some kind of sub-consciousness in the minds of its users (Dierkers et al., 2003).
The Perception of the Brand Image by the Consumers
Some of the things that clients look for in a brand include customer service, quality and reliability of the product. For this reason it’s important for these important aspects to be included in the brands promotion strategies. The strategies that are to be employed are those with the ability of grabbing your intended customers. Besides grabbing of your clients it’s important for the promotion strategy to be able to keep them until business is accomplished. The brand needs to offer the intended market impression and this can only be obtained when a brand is original (Chowdhury 2003).
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Failure and Success of the Royal Dutch Shell
The shell has been very successful in capturing their client and that is the reason they have been numbered among the world’s top businesses. The shell company was able to create a very unique brand which has played a significant role in its overwhelming success. By the fact that where success is there is failure means that the shell company has experienced some failures for instance in determining whether the products that were being supplied were the correct ones for the specific company. There have been a number of accidents related to transportation of petroleum products which led to loss of lives as well as environmental pollution. The company has also failed in determining the lowest possible price, issues like price fluctuation has become the daily norm of the shell outlets. Besides that the company has been very successful when it comes to many other issues (Jackson 2009).
Royal Dutch Shell has been able to accomplish its plans through its successful product brand. The shell has been successful in accomplishing its objectives because of its unique characteristics. For instance it’s very easy to muster the brand which is simply designed to reflect the sea shell. Its management has tirelessly worked to ensure the accomplishment of the set goals. Brand promotion and marketing has also played a great role in the stability and permanent establishment of the firm. Shell outlets that are in Africa have been greatly criticized in protest of Ogini. Some of the other factors which have not been taken easily with people particularly the environmentalists are the environmental pollution that has been caused by the shell products. A good example of this criticism is the deposition of Brent spar in the North Sea was greatly feared because of the havocs it could cause (Tyson, 1997).
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