Extensive Marketing Strategy of Sinopec – With Detailed Overview

The marketing strategy of Sinopec, a subsidiary of the world’s largest oil, refining, gas, and petrochemical conglomerate based in Chaoyang, Beijing, encompasses a wide range of activities. Sinopec’s operations include oil and gas exploration, refining, and marketing, with exports of Oil and Gas to various countries. The company is also involved in the production and sales of petrochemicals, chemical fibers, chemical fertilizers, and other chemical products.

It manages the pipeline transportation of crude oil and natural gas and oversees the import, export, and agency business of natural gas, crude oil, petrochemicals, refined oil products, and other chemicals. Additionally, Sinopec extracts ethanol and several biofuels, such as biodiesel and green jet fuel, from spoiled vegetable oil.

The primary objective of Sinopec is to develop crude and petroleum products and to secure the top position among petroleum companies in China.

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Now we will look at the marketing strategy of the Sinopec group. Let’s have a look at it.

About SINOPEC

Sinopec Group is wholly owned by the state and has strategic importance as one of China’s top three national oil companies. The state has robust power over the company’s performance and key management appointments. Gas and petrochemical conglomerate.

Sinopec Group, Sinopec Limited’s parents is the world’s largest oil refining, gas, and petrochemical conglomerate, headquartered in Chaoyang, Beijing.

What’s new with Sinopec?

Sinopec, a leading Chinese oil and gas company, continues to innovate and expand its operations. Here are some of the latest developments:

1. Overseas Expansion: Sinopec is in the process of establishing a novel subsidiary with the objective of making investments in overseas refinery and petrochemical assets. This initiative is a strategic move to utilize their proficiency and resources for global expansion, particularly at a time when the domestic oil demand in China is approaching saturation.
2. Cooperation with BP: Sinopec has successfully negotiated a pact with the British oil and gas behemoth, BP, to intensify their collaborative efforts in probing the potential for transformation in the new energy sector. The agreement underscores their mutual commitment to discovering innovative energy solutions.
3. Refinery Output: Sinopec has strategized to uphold a consistent level of refinery production throughout the latter half of 2023, in response to the resurgence of domestic fuel demand. This plan reflects their adaptability to market dynamics and commitment to meeting energy needs.
4. E-commerce Platform: Sinopec’s digital commerce platform, Epec.com, has successfully finalized transactions amounting to an approximate total of USD 40 billion. This achievement underscores the platform’s significant role in Sinopec’s business operations.
5. Hydrogen Energy Development: Sinopec is expediting the advancement of hydrogen energy and has outlined a blueprint to construct facilities with an annual hydrogen filling capacity of 120,000 tonnes by the year 2025. This initiative reflects their commitment to sustainable energy development.

Buyer Persona of Sinopec

 

Marketing Mix of Sinopec

Sinopec, a public company of Chinese origin, is associated with the gas and oil industry. It has established a significant presence in the market through its strategic marketing mix, which includes the 4 P’s: Product, Price, Place, and Promotion.

1. Product: Sinopec boasts an extensive array of offerings encompassing the discovery, promotion, refinement, distribution, and manufacture of gas, oil, chemical fertilizers, chemical fibers, petrochemicals, and a variety of other chemical commodities. The corporation has evolved from a mere purveyor of oil commodities to a comprehensive service provider.
2. Price: Sinopec’s pricing approach is multifaceted and contingent upon the specific products in question. The company employs a variety of pricing strategies within its marketing mix. Its premium offerings command a higher price point compared to the majority of its market offerings. A key focus for Sinopec is the minimization of costs associated with the exploration and refinement of its products.
3. Place: Sinopec has adeptly established and managed its distribution networks. The corporation has chosen an integrated business structure that relies heavily on its robust infrastructure. Sinopec’s customer base includes 80 million gas card holders, and its physical presence is marked by 23,000 convenience stores and 30,000 petrol stations.
4. Promotion: Sinopec has instituted sophisticated strategies encompassing integration, market development, resource management, internationalization, and low-carbon growth, with the aim of fostering a company centered around people. The corporation has achieved notable progress through the adjustment and optimization of its product assortment, the acceleration of quality enhancements, and the provision of superior and more environmentally friendly products.

Marketing Strategy Of Sinopec 

So now let’s know in detail about the marketing Strategy Of Sinopec.  

Sinopec has always held fast to the policy of “Revitalize the Petrochemicals by Advance Science and Technologies” and implemented one innovation-driven development strategy.

The marketing strategy of Sinopec company is to analyze the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are so many marketing strategies like product innovation, pricing advance towards

promotion planning, etc. These business strategies are based on Sinopec’s marketing mix, helping the brand succeed in the market.

Sinopec’s marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.

Let us understand Sinopec’s Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies

1. SEGMENTATION, TARGETING AND POSITIONING

The marketing strategy of Sinopec operates across five distinct segments: Exploration and Production, Marketing, Refining and Distribution, Chemicals, and Corporate and Others.

Sinopec Corp, a Chinese refining company, is concentrating its efforts on establishing an annual hydrogen filling capacity of 120,000 tonnes by 2025, a target that is 40 percent lower than the one set the previous year.

Sinopec has articulated its brand positioning in the creation of a world-leading enterprise: The blueprint for our growth will be characterized by one foundation of energy resources, two wings of clean energy and synthetic materials, and three focal points of new energy, new economy, and new areas.

2. MARKETING CAMPAIGNS

Technological innovations and changes in time have helped the company become one of the top companies. Sinopec has decided on a newer policy of a slower growth process with the help of improved economic structure by implementing advanced strategies for integration, markets, resources, internationalization, and low-carbon development as it wants to create a friendly company.

3. SOCIAL MEDIA MARKETING

As part of its marketing strategy, Sinopec promotes its products via AirMedia Group Inc., a leading advertising platform in China that targets middle and high-end clientele. AirMedia operates the most extensive digital media network in China, dedicated to state trip advertising. It manages digital frames in 31 major airfields and digital television defenses in 30 major airfields, encompassing the majority of the 30 largest airfields in China. This network aids in the promotion of Sinopec’s sophisticated products. Additionally, AirMedia markets announcements on various routes.

 For further information about AirMedia, please visit https://www.airmedia.net.cn.

4. SEO STRATEGIES

In terms of the SEO strategy that forms a part of the marketing strategy of Sinopec, having more than 10,000 keywords is considered excellent. Sinopec currently possesses 65 organic keywords, which is a commendable achievement. According to the same SEO strategy, traffic exceeding 20,000 is deemed favorable. However, the company currently experiences traffic of 9,000, which falls below the 20,000 benchmark, indicating a lower level of traffic.

5. INFLUENCER MARKETING

Adopting the motto “working together, winning together,” Sinopec has accelerated its development within the industry as part of its marketing strategy. Presently, Sinopec has established over 12 international branches and has contributed to business growth in more than 30 countries. Additionally, Sinopec has demonstrated its commitment to sports and community engagement through its sponsorship of the 2008 Olympic Games and the 2010 sports events in China.

6. E-COMMERCE STRATEGIES

As part of the marketing strategy of Sinopec, Epec.com, a professional SC2B e-commerce platform for industrial products, was launched by the petroleum company in 2017. Since its inception, it has listed an aggregate of 565 online merchants and more than 1,000 product details.

The platform has achieved an accumulated sales volume of over 39 billion USD. PR Newswire has covered the news distribution, targeting, and coverage of Sinopec’s E-commerce Platform Epec.com, which has closed deals totaling nearly 40 billion USD.

Epec.com serves as an e-commerce platform facilitating SC2B (supply chain to businesses) transactions of industrial products. It not only serves Sinopec but also provides procurement, sales, and financial and general services for global enterprises.

7. MOBILE APPS

As part of the marketing strategy of Sinopec, the “Sinopec Fueling” mobile application was launched by Sinopec Marketing Co. Ltd. This application, which supports both Android and IOS systems, is primarily designed for car owners and can be downloaded from Sinopec’s official website, the App Store, and other major application stores.

Originally known as the “online service website of Sinopec Fuel Card” when it was launched in 2014, the platform primarily provided services related to the fuel card. After a certain period, it was rebranded as “Sinopec Fueling” and repositioned as an integrated platform offering comprehensive value-added services to car owners, users, and others.

The application offers a range of online services, including fuel card recharge, quota pre-allocation, card information inquiry, and fueling record inquiry. Additional features include one-click fueling, invoice inquiry, electronic invoice, card information maintenance, loss reporting, online application for fuel cards, fuel consumption analysis, recharge discounts, online customer service, membership, and reward points. It supports a variety of recharge methods, enabling users to handle various services online and access relevant information.

“Sinopec Fueling” serves as a platform for car owners, providing not only core services but also value-added services such as member discounts, online shopping malls, and car owner services.

Through the one-click fueling feature, users can swiftly locate nearby gas stations and choose the most convenient route. This allows users to enjoy quick and convenient fueling services without needing to exit their vehicle.

8. CONTENT MARKETING STRATEGIES

In 2021, as part of the marketing strategy of Sinopec, the consumption of refined oil products rebounded. The company fully leveraged its integrated marketing network to consistently enhance the quality and scale of its operations. Innovative marketing tactics were employed to perfect marketing strategies and expand transactions.

The network layout for end-users was further optimized, and an internet operation center was established, facilitating the constant integration of online and offline businesses. Sinopec diligently promoted the development of comprehensive service stations, encompassing oil, gas, hydrogen, electricity, and non-fuel businesses, and expedited the construction of new energy service networks.

The total periodic transactions of refined oil products reached 221 million tonnes, with domestic transactions accounting for 171 million tonnes, marking a year-on-year increase of 2.0 times.

Top Competitors of Sinopec

 It faces competition from various companies globally. Here are some of the top competitors of Sinopec:

BP

ExxonMobil

Total

Chevron:

ConocoPhillips

Petrobras

Failed Campaigns of Sinopec

Sinopec, like any large corporation, has faced challenges in some of its initiatives. Here are a couple of instances where Sinopec’s campaigns did not meet expectations:

1. Green Hydrogen Project: Sinopec’s 260MW Kuqa facility in Xinjiang, northwest China, which is the world’s largest green hydrogen project, has been operating at less than a third of its installed capacity due to various factors, including some missing safety features in the system design and lower-than-promised efficiencies. All the electrolyzers at the facility, made by three prominent manufacturers, have safety issues related to renewable energy fluctuations.

1. Sustainable Plastics Production: The global petrochemical industry, including Sinopec, has failed to expand the production of sustainable plastics fast enough to replace those based on fossil fuels. This shortfall has impacted expected contributions towards limiting greenhouse gas emissions and ocean pollution.

CONCLUSION

Sinopec Limited, a joint-stock entity under the China Petrochemical Corporation Group (Sinopec Group), was established in 2000 and completed its listing in Shanghai in June 2001. As part of the marketing strategy of Sinopec, given its legacy asset base from the Sinopec Group, analysts have positioned it as a downstream oil player, in contrast to PetroChina. Sinopec stands as the largest oil refiner in Asia by annual volume processed. It produces approximately one-twenty-fifth more raw crude oil than PetroChina but yields one-third more refined products annually.

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We hope this blog on the marketing strategy of SINOPEC has given you a good insight into the company’s marketing strategies.

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We hope this blog on the marketing strategy of SINOPEC has given you a good insight into the company’s marketing strategies.

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