Chevron Corporation: Corporate Image Advertising Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

INTRODUCTION

Chevron is the one of the world’s leading integrated energy companies. The company is engaged in all aspects of energy business such as, exploration, production, manufacturing, transportation, power generation, marketing and research. From 2014, Chevron is one of the largest oil companies, headquartered in San Francisco. Furthermore, Chevron is the largest refiner and marketer of petroleum products in the United States. The basic motive of the company is to provide safe energy products with substantial economic growth and human development process throughout the world, and also to deliver world class performance.

The success of the company is driven by the people and their commitment toward operating responsibility, executing with excellence, apply innovative and creative technology and capturing new opportunities with profitable growth and revenue of the company.Furthermore, the company has highly skilled and diversified workforce which consists of 64,700 employees, with more than 3,200 service station employees. The company mainly focuses on improving technology and developing a persistent effort to improve safe environment in the company. Although Chevron produces energy to boost the economic growth of the America, even of the whole world,however, environmental problems occurred and have aroused great public concern towards the safe environment.

In the initial stage of the company, the company grew consistently, particularly in California, and became a market leader in gasoline brands. In 1974 and 1979, Chevron suffered greatly in gasoline prices, and shortages at the pump. As a result, it leads to distrusted and less value image among the people of America. In 1982, the Chevron Public Affairs Department initiated systematic research in order to understand the attitudes of the American towards the company. It also developed a strategy to design a communication program to improve attitudes of the people.

PROBLEM STATEMENT

According to the case, in 1979, 64% of the Americans had unfavorable attitude or opinion toward the U.S. oil industry. The rate of disapproval was high, Chevron decided to withdraw the company from the public eye, and propose a solution to improve the advertising campaign of the company. In 1981, the company applied an effective communication techniques with consumer audience, which improve the situation of the company, and many negative public opinions gradually decrease. The company needs to focus on corporate advertising campaign that support favorable public attitudes towards the Chevron.

METHODOLOGY

VALS is one of the ways to perform psycho graphic segmentation on the basis of needs, wants, beliefs, attitudes, and demographics. VALS was created by SRI International in 1978, by putting the people in the category of market, political, economic, social and ethical. VALS consistsofthree approaches with a total of nine lifestyle types, such as the need-drivers, the outer-directed, and the inner-directed.

The need drivers mainly focus on the people,therefore, they are limited in resources and their value centers around survival, safety, and security. Secondly, the outer-directed focus on the people that learn from the outer world. Lastly, the inner-directed focus on the people that primarily give importance to their inner values. VALS was the best approach for public segmentation at that time because Chevron was getting negative attitudes especially from the inner-directed segment. By this approach, the company wants to overcome the issues related to the negative attitudes of the public and develop a specific commercials to improve favorable attitudes toward Chevron among the Inner-Directed.

Under the leadership of Lewis Winters, the Public Opinion Research of the Chevron group uses psycho graphic approach to consider the inner-directed segment for target audience to their new communication techniques. The basic objective of Chevron is to use the image advertising in order to increase favorable attitudes of Chevron within the inner-directed audience, the people who comprises negative attitude towards the company. It is difficult to satisfy the audience of inner-directed because they are generally person-centered, individualistic and impassioned.

Chevron Corporation Corporate Image Advertising Case Solution

MODEL SEGMENTATION FOR TODAY’S AUDIENCE

The ideal programming segment advertising will be targeted to a specific audience. Nowadays, needs, wants, attitudes, beliefs and demands of the people become more diversified. The company should apply the VALS in order to understand the audiences. The advertising campaign are of companies different from each other. Many product companies use VALS for product prototype, prioritize features and benefits, and focus on early-adopters.

The company must understand the motivations of consumers, the providers should revise the website, commercial ads, promotion strategy and communication to better service their audience. As Chevron submits its marketing and corporate commercials to a multi-sponsored pretest developed by McCollum-Spielman. This methodology is mainly important to ensure that the commercial is giving the knowledgeable message to the target audience. Moreover, distrust may arise among the audience if the impact of the advertisement would be less...................

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