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Anadarko Petroleum

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on 25 November 2013

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Transcript of Anadarko Petroleum

Enhanced Oil Recovery
Anadarko Petroleum
Core Values
Safety & Sustainability Servant Leadership People & Passion
Integrity & Trust Commercial Focus Open Communication
Strategic Direction
Become a top provider for world's energy
Safely find energy to produce and fulfill the world's needs by combining cutting-edge technology and the transfer of knowledge to enhance best practices safely, efficiently, and sustainably
Strategic Infrastructure
Strategic Business Units within US and across the globe producing:
Differentiation Strategy
Produces oil and natural gas through unconventional resources like coalbed methane, enhanced oil recovery, tight sands and shales to distinguish itself within the industry
Anadarko is considered premier leader in deep-water exploration
Support Elements
Yields competitive returns to shareholders

Customer Intimacy
Understands the global environment and respects the significance of safety in operating
Company Description
Independent oil and natural gas exploration & production oil company
Headquartered in Woodlands, Texas
Premier assets in US including the Appalachian Basin and deepwater production in the Gulf of Mexico
Global exploration opportunities in West Africa, Mozambique, Kenya, South Africa, Colombia, Guyana, New Zealand and China
Business Definition
Deliver competitive and sustainable rate of return to shareholders by developing, acquiring and exploring for oil and natural gas resources vital to the world's health and welfare.
Natural Gas
Liquid Natural Gas (LNG)
Crude Oil
Core Competencies
Coalbed Methane
Subsalt Exploration
Horizontal Drilling
Fractured Reservoirs
Enhanced Oil Recovery
E-Commerce & Social Media
Helps to better portray the company's image and keep society informed about current events.
Cloud Computing
There is shared knowledge across all divisions of the company that can be catalogued and viewed within the functional teams and business units
Financial and inventory records stored in one place
Industry Structure
Rivalry Among Existing Firms
High competition
Upstream E&P e.g. ConocoPhillips

Potential Entrants
Low threat of potential entrants
Companies shifting from integrated to independent E&P
Renewable energy companies
High supplier power
E.g. Schlumberger, Baker-Hughes, Halliburton
Intermediaries & Buyers
Moderate to low buyer power
Open market buyers desiring product or futures contracts, companies managing oil production facilities
All forms of renewable energy i.e. wind, solar, geothermal, electric
Porter's Five Forces
Marketing Research Opportunities
What Can Anadarko Offer that Competitors Cannot?
Conduct surveys to unveil level of satisfaction of customers
Ask customers how our service compares to competitors
Conduct exploratory research to benchmark top players in the industry and streamline best practices
What are Alternative Energy Sources that Anadarko Could Invest in?
Conduct research on alternative methods in attempt to diversity product portfolio e.g. wind, hydro, electric, and solar product research
Risk of crossing over into another industry i.e. alternative energy industry, which may take value away from oil and natural gas products
How can Anadarko Become More Sustainable?
Sustainability is a driving factor of society's perception of the industry today
Design a focus group that discusses the impact of developing a stronger emphasis of sustainable practices
Conduct depth interviews to determine how society currently views Anadarko as it relates to their values
Exploratory research may be used to assess the industry's take on sustainable practices within the last few years
Marketing Research Process
Problem Definition
Anadarko is currently in the gas and oil industry, which places the company in a slight myopia. Times are changing and alternative energy resources are becoming available. These new methods are more sustainable, so it is important to get a head start in the new markets for further growth and higher returns for shareholders.
What are Alternative Energy Sources that Anadarko Could Invest in?
Exploratory Research Design
Case Analysis is the best method for looking into this problem. Specific research should be done in the following areas:

Quantitative Research Design
Experiments conducted to address the following:
How long each method of energy lasts
How big of an area could each method of energy cover
How much maintenance would each method require
How much energy can each source provide
Key Products:

Psychological Factors
When Anadarko consistently advertises about being sustainable, consumers will pay attention and commit themselves to Anadarko's products
The attitude and involvement toward the product may depend on how environmentally friendly the consumer is
Consumers will have a greater chance of liking the product when the company acquires the product in a responsible way
Natural Gas
Ideas to Influence Consumer Behavior
Companies that purchase a certain amount of Anadarko's product will receive a better rate
Anadarko rewards consumers who continue to carry out Anadarko's misson of being sustainable
Conduct an image campaign to inform the public about the mission and true environmental impact
Validate the company's efforts in acting safely and responsibly
Satisfaction & Loyalty
Yielding consistent returns
Aligning the company's strategy with the needs of the stakeholder community
Anadarko’s Midstream Group is committed to providing its customers with the highest-quality service at a competitive price. Anadarko provides gathering, compression, treating, dehydration, and processing services with the producer in mind.
Customers' ratings of U.S. midstream service providers showed a 5% increase in customer satisfaction in the 2011 survey
However, customers are continually dissatisfied with the pricing and contract terms
Evidence suggests these lower ratings have more do to with a perceived lack of "value-added" offered by midstream providers
EnergyPoint Research
Improving Brand Image
Implementation Plan:
Market to the public how Anadarko is integration safety and sustainability in operations
Sustainable Price
Fits the quality of the product
Easy, after sale service
Maintain quality relationships with suppliers to maintain competitive edge across the industry
Target Market Segments
Investor presentations that keep stockholders up to date on the company's latest exploration and production opportunities around the world
Next Generations
Houston Energy Day
Greater Society
Channel on Youtube promotes the company and informs society about current happenings in regards to operating safely and sustainabily
Marketing Variables
Marketing Strategy
Undifferentiated Strategy

The oil industry is a single mass market because the global society is dependent on oil and natural gas
Top Market Segment: Greater Society
Major Competing Brands:
Attributes Used to Understand Brands:
Geographic location
Reputation on NYSE
Matching values
Positioning Map
The 49er's
Angela Agius, A44663590 Melissa Luther, A44354393
Mengjiao Ding, A45681580 Frank Parzynski, A45108864
Alex Kucken, A44213375
Works Cited
Anadarko Company website
Seeking Alpha Investors site
Bloomberg Businessweek
Legal Force Trademarkia
The Quest
by Daniel Yergin
Brand Strategy
Upstream, exploration and production
No downstream, no gas stations less visible
Brand Equity
Perceived Quality
Competitive Advantage
Upstream, less visible
However, responsibility and company image are attained through publications in the media, primarily Anadarko TV
Little brand loyalty, consumers will choose the cheapest oil and gas prices
Product is relative in to the marketplace as a commodity

High quality product by means of unique methods through advanced technology (i.e. coalbed methane, enhanced oil recovery, subsalt exploration
If the company is sustainable and illustrates a strong sense of corporate responsibility, the public eye will associate the brand in a positive light

Innovative technologies for exploration and production activities such as deepwater SPAR technology
A company in Amoy, China put Anadarko's name on produced SL15W-40 barrels

Trademark Piracy
Joint Marketing
Partner with integrated companies on exploration ventures
Join with a downstream company to become integrated
Environmental groups in areas of production

Organizational Benefits from Brand Equity
Adds long term value to the organization and the processes involved in exploring for and producing oil and gas
All five dimensions of brand equity are vital to building and sustaining the company's reputation
Anadarko represents quality and commitment to stakeholders
Safely discovering energy by combining cutting-edge technology to enhance best practices, staying true to its mission statement
Almost Pure Goods
Hydrocarbons for refining i.e. domestic and international natural gas, liquid natural gas (LNG), oil
Goods with Services
Construction, maintenance and repair of buildings, rigs
Half Goods, Half Services
Material treatment services, mechanical and chemical processing services, transportation and storage services
Services with Goods
Petroleum exploration services, engineering services, transformation of organic and inorganic substances (oil and LNG from wells and services)
Almost Pure Services
Financial management services i.e. purchase, escrow, insurance, legal servies
Legal Force Trademarkia
Marketing Strategy
Search Qualities
Experience Qualities
Companies and stakeholders evaluate company through website and industry statistics
Past suppliers and commodity buyers may evaluate Anadarko's performance and quality of services/operations
Innovation Strategy:
New products i.e. technologies and sources of energy
New markets i.e. third world countries accessing energy
New Product Development & Innovation
New development is very important
The industry relies on latest technologies and alternative ways to extract hydrocarbons from the ground
Horizontal Drilling
Deepwater SPAR technology
Subsalt Exploration
Continuous Innovation
Dynamically Continuous Innovation

Discontinuous Innovation

Natural Gas
Product Life Cycle Curve
Integrated Marketing Communication Objectives
Provide Information
Making the public aware of the company and its operations through the website and industry news
Retaining image as sustainable and responsible
Create Demand
Exploration techniques for energy conservation
Producing in stable areas of the world
Communicate Value
PR through Houston Chronicle and local news- Anadarko was listed as one of the top workplaces in Houston
Communicate Product Uniqueness
Keep public and stakeholders informed of the technologies and methods being used to explore and produce oil and gas
Close the Sale
Informs consumers about products in terms of what Anadarko does, how Anadarko does it, why Anadarko does it and where in the world Anadarko does it
Interacting with suppliers and commodity buyers
Build Relationships
Customer service after sale, continue to establish contracts with buyers
Integrated Marketing Communication Campaign
Engage in local and national mediums of advertisements
Press releases to stakeholders and philanthropy events
Mass Communication Activities
Sales Promotion
Concessions with negotiations
Discounts on terms
Degree: 7
Anadarko website
Degree: 7
Public Relations
Press conferences
Media Center on the website archiving Press Releases
Philanthropy & community service events
Degree: 9

Outdoor Ads
Media Options for Anadarko
Social Media
Low Importance
High Importance
Additional Media Options:
TV ads, finance another E&P project
Personal Selling: Direct Sales
BP, for example, will choose if it wants to purchase Anadarko's hydrocarbons that will later be refined into natural gas and oil and a direct sales pitch is crucial in selling those assets
Inside Sales Support
Sales reps reached by phone who can hold calls to resolve customer concerns
Field Salesperson
Field salespeople when pitching ideas on techniques for operating suppliers and finalizing deals with potential buyers
Technical Salesperson
Salespeople must meet face to face when buying equipment for exploration and other forms of drilling for oil
Internal software and equipment specific to the company
Service Salesperson
Repair and maintenance of equipment from operations on site

Additional Personal Selling:
Purchasing agents who negotiate special projects and new exploration sites
Land function administers contracts through mineral and government rights
Roles & Responsibilities of Salespeople
How does Anadarko use sales to sell to their products?
What are some challenges salespeople run into?
How many clients does a typical salesperson work with?
Tracey Hatley, Public Affairs
Anadarko does not use personal selling because the company is strictly an independent exploration and production company. Sales are not used to market products. Anadarko explores new areas to find oil and gas, and then find ways to further move it on to different suppliers (i.e. commodity buyers, integrated oil companies)
Price Sensitivity: 9
Demand plays a vital role in adjustments that the oil market makes to changes in price than in the past
Oil supply is
elastic as new oil supplies come increasingly from unconventional methods, meaning the supply is less responsive to changes in price
Prices have become volatile in order to force market adjustments
Cross-Price elasticity
of natural gas exists with respect to fuel oil is -.4
Pricing Strategies
Operating safely and sustainably
Manage energy needs
Facilitate scheduling and pricing of physical flows of oil and gas
Emphasis on the most cost effective and profitable way to sell and transport resources
Customer Value Propositions:
Product Leadership & Customer Intimacy
Operate safely and responsibly in field
Oil, LNG, and natural gas are relative across the industry, but how Anadarko goes about exploring and producing energy and getting it into the hands of the consumer' everyday lives is most important
Delivers on time, tailored products in unique ways
Full transcript