Task 4
- 1. Task 4
- 2. Fuel suppliers Shell is renowned to be the highest quality petrol available to the public. They focus on delivering a quality product as opposed to a more affordable one. The company retains a superior image in which people recognize them as the best. They are endorsed by the car company Ferrari, which is world famous for their sport and supercars as well as their racing, most notable their F1 team. This attracts a upper-class, high-end audience. The fact that such a well renowned and expensive performance car brand promotes this fuel brand says a lot about how good it is. The price is higher than other fuel brands and especially supermarket fuel, but this goes with their target audience of people who own performance (or more expensive) cars where the engine is able to make use of the different octane rating and perform better. The value depends on the customer. To someone who drives a lower end car which has an engine that can not make use of the better quality fuel and additives the value would not be very good as opposed to a cheaper budget fuel. But someone who owns an expensive car which can make use of the premium fuel and in turn perform better and gain better mileage as well as a cleaner engine the value would be better than paying less for an inferior product. The market for this fuel is obviously upper-class people who own performance or expensive cars, and care about their cars more than the average person. Competition would be other high-end fuel brands such as BP or esso. The outlet is obviously going to be the petrol stations which you run and use your fuel.
- 3. Tesco is a supermarket which like many others, also sells fuel. They focus a lot more on the price, and keeping it as cheap as possible, as opposed to Shell. The image of Tesco when it comes to fuel is that it is affordable and of sufficient quality to be used in most peoples cars. Some people who may consider themselves connoisseurs when it comes to cars argue that using supermarket fuel can damage your engine and it may be worth spending more and getting branded fuel. The price is the thing that Tesco focus on. They try and make their fuel as affordable as possible while still making enough money. They even offer further discount using their club card, stating that you can save up to 20p a litre. Again everything focuses on price. Value ties into price and some argue that Tesco fuel is better value for money than branded fuel. This is true for the majority of cars but some argue that performance or more expensive cars can greatly benefit from using branded fuels as opposed to supermarket and in these people eyes the better value lands with the branded. But this is okay because these people are not Tesco’s target audience when it comes to fuel. This leads me onto market. Tesco’s market when it comes to fuel is quite a wide range of people, as opposed to shells more niche market. It focuses obviously on its existing customers who shop at the supermarket. It assumes that a lot of the time people will fill up their tank after doing the shopping, but also knows that a lot of people will stop and fill up when passing by as a lot of people don’t care where the petrol comes from and assumes its all created equal, or that the difference is negligible. Many customers simply need petrol and will get it when driving past. The outlets are obviously the petrol stations which the supermarket owns or sells their fuel. The competition is other supermarkets which also offer fuel, such as Morrisons, ASDA and Sainsbury's. the competition for the fuel sales ties in directly with the general sales of groceries and other products at the supermarkets, as people are unlikely to shop at ASDA and then drive to Tesco to get their petrol, unless the price makes it worthwhile.