Decoding the Marketing Strategy of Nayara Energy – Detailed Explanation | IIDE

In our previous analysis, we delved into the marketing strategy and online presence of an intriguing brand, Voltas. Today, our focus shifts to the marketing strategy of Nayara Energy, India’s second-largest oil refinery.

The aim of this study is to delve into the marketing strategy of Nayara Energy and understand how it ascended to its position as India’s second-largest oil refinery. Nayara Energy has set its sights on being one of India’s most esteemed organizations, planning to achieve this through actions that benefit both the community and the nation.

The digital revolution is well underway, with companies of all sizes and ages making their mark in the digital space. If you’re interested in digitally marketing your brand or yourself, or if you’re already involved in digital marketing and looking to enhance your skills, our Free Digital Marketing Masterclass by IIDE’s Founder and CEO, Karan Shah, is worth checking out.

In this blog, we’ll be examining the marketing strategy of Nayara Energy in detail, including its marketing channels, campaigns, influencers, and digital presence. But before we dive into that, let’s get to know more about the company, its target audience, and its brand story.

ABOUT NAYARA ENERGY 

Nayara Energy formerly ESSAR OIL until August 2017 is a privately owned oil refinery in India with 49.13% of its shares belonging to Rosneft another 49.13% belonging to Trafigura Group and United Capital Partners and the rest belonging to Oil Holdings Ltd. It is located in Mumbai India.

The Company was renamed Nayara Energy in 2018 from the Hindi word ‘Naya’ meaning New and the English word ‘Era’. It is involved in refining, producing, and marketing. It runs India’s second-largest oil refinery with over 6000+ network of retail fuel outlets in India.

Ranking 21st in the Fortune India 500 list in 2020, Nayara Energy had a Products Petroleum Revenue of ₹87,371 core and a Net Income of ₹2,476 core. With its total assets at ₹49,061 core and its total equity at ₹18,928 core in 2020. Nayara Energy’s share price is valued at ₹262.60.

What’s new with Nayara Energy?

Here’s everything that’s been happening recently with Nayara Energy:

• Nayara Energy has strategically leveraged digital technologies to drive value realization across the value chain.
• The company’s field operations have been redesigned to be fully digitalized.
• Nayara Energy is making steady progress in its India expansion plan.
• The company will start operations of a new polypropylene plant in the first half of next year, marking its entry into the lucrative petrochemical sector.
• Nayara Energy experienced a decline in fuel exports due to a surge in domestic sales.
• During 2022, 61% of the firm’s sales were from the domestic market, with 39% from exports including aviation turbine fuel, diesel, and petrol.

It seems like Nayara Energy has been making significant strides in the energy sector this year. Now, let’s move on and discuss the buyer persona of Nayara Energy.

Buyer Persona of Nayara Energy

Marketing Mix of Nayara Energy

A marketing mix is a model that an organization uses to advance its interest in its brand or product. The main components of this model are the 4Ps: Product, Price, Place, and Promotion. Let’s look at Nayara Energy’s marketing mix strategy in the following section.

(i) Product Strategy of Nayara Energy Nayara Energy, a leading energy company, primarily sells a variety of petroleum products including aviation turbine fuel, diesel, and petrol. Nayara Energy’s products are known around the globe, although there are geographic variations to suit the local preferences & tastes of customers. The company continuously improves its products and services based on the changing needs and tastes of consumers. The core value of what Nayara Energy offers has always been its strong operational profile being India’s second largest single location refinery.

(ii) Price Strategy of Nayara Energy The pricing strategy of Nayara Energy has always been to offer its petroleum products at competitive prices. This is what has allowed the company to be successful for many years.

(iii) Place and Distribution Strategy of Nayara Energy Nayara Energy is one of the world’s leading energy companies with a strong market presence in India. The company recently expanded its business networks, both within India and overseas.

(iv) Promotion Strategy of Nayara Energy Nayara Energy uses a lot of promotional techniques as promotional activities help build brand loyalty and interest. It gives people who may not normally engage with Nayara Energy a reason to consider their products and services.

MARKETING STRATEGY OF NAYARA ENERGY

Let’s take a look at the marketing strategy of Nayara Energy and how Nayara Energy carries out its marketing campaigns,

• SEGMENTATION, TARGETING AND POSITIONING

The target audience is mostly millennials, 20 – 45 years old. At this stage, people are already making life decisions, and Nayara offers a sustainable partnership in the form of petrol pumps. In this stage, they have people with the strength and zeal to work and also people with buying power. 

Nayara Energy initiated the aspect of partnership by offering petrol pumps around India. After many distributions, they decided to increase the number of retail outlets while at the same time gaining new customers through online contests. 

 Nayara positioned itself as a solution provider to not just energy and petrol problems, but also employment problems, with its partnership program. It provides an opportunity for people to own retail pumps while providing them with extra income, this approach helps Nayara draw closer to achieving its 7,000 retail outlets goal. 

• MARKETING CAMPAiGN

Life at Nayara Campaign 

The Life at Nayara Campaign is a set of videos highlighting the strengths, work culture, people assets, business assets, and Corporate Social Responsibility Initiatives of Nayara Energy.

This campaign was primarily targeted toward LinkedIn, but you can also find the videos on YouTube where one has over 50k views, and another has over 3k views. 

The videos are said to be part of a bigger campaign targeted at showcasing Nayara Energy for what it Is, a downstream Russian-owned Indian company building on young minds to produce sustainable development.

• SOCIAL MEDIA MARKETING

Nayara Energy is active on social media like Linkedin, Facebook, Twitter, YouTube, and Instagram. With its highest number of followers on

Twitter:11.3k Followers

YouTube  8.03k Followers

Linkedin 286k Followers

Facebook 118k Followers

Instagram 11.4k Followers

For such a large following on LinkedIn, they have a very low engagement.

Nayara Energy posts content that is inspiring and talks about their petrol pump acquisitors. 

• SEO STRATEGIES

When it comes to SEO, keywords are the makers or breakers of whatever you do, so in all things, SEO pays attention to your keywords. Long and Short tail. Nayara Energy is a company that understands the importance of keywords and SEO, it is said that keywords below 500 are a company’s worst nightmare, above 1000 is good, and above 10,000 is Amazing and Nayara Energy has over 21,973 organic keywords, and over 1M Organic traffic monthly. 

• INFLUENCER MARKETING

Nayara Energy has not made use of any influencer for their brands, rather they have relied on people’s need for petrol and Energy and expanded their retail outlets to provide a solution to this need. They make use of social proof from pump acquisitors and regular contests for their customers to build brand loyalty. While they make use of employee togetherness and work relationships to build brand authority. They pride themselves on working with people who are great at what they do.

• E-COMMERCE STRATEGIES

Nayara Energy has an online platform where you can register for Petro Pumps and own a Nayara Energy retail outlet. There are a few requirements, one of which is that you have to have enough space for the outlet to be built in the Nayara Energy Standard. The goal is to have at least 7,000 pumps in different parts of the country.

• MOBILE APP

Nayara Energy has a Mobile App that makes searching for retail outlets near you as easy as possible. It provides total visibility of all retail outlets by providing collated data. The Head office system helps to track the retail outlet’s sales, inventory, etc during operations, and this helps to increase the outlet’s performance.  

• CONTENT MARKETING STRATEGY

Nayara Energy is active on Social media.  They try to connect with their audience as much as they can through their Posts. They post content about their employees, how they relate to work, and how they balance work with their personal lives. it is tagged #EnergyBehindNayara. 

They also post content about their retail petrol outlets and the acquisition of these outlets. They mostly post on Linkedin, Twitter, and Facebook. Press releases about Nayara Energy can be found on sites like MoneyControl, Bloomberg, Indiatimes, TheHindubusinessline, etc.

Top Competitors of Nayara Energy

The energy sector is highly competitive. Here are a few top competitors of Nayara Energy in India as well as internationally:

1. Top Competitors in India

• IndianOil
• HPCL
• BPCL
• Paragon Geo
• bbosch Chile
• Wellons
• De Groot

2. Top Competitors Internationally

• IndianOil
• HPCL
• BPCL
• Paragon Geo
• bbosch Chile
• Wellons
• De Groot

These companies, like Nayara Energy, are making significant strides in the energy sector. 

Failed Campaigns of Nayara Energy

While Nayara Energy has had many successful campaigns, there have been a few instances where their initiatives didn’t resonate as expected with the audience:

1. Delisting from Stock Exchange In 2016, Nayara Energy, formerly known as Essar Oil, was delisted from the stock exchange at the final price of Rs 262.80. This decision was taken after Rosneft, the world’s largest public oil and gas company, acquired Essar Oil. The delisting created insecurity among its investors and impacted those holding its listed shares.
2. Delayed Petrochemicals Expansion Western sanctions likely delayed Rosneft’s planned petrochemicals expansion at its Indian refinery. Despite having a project financing agreement, it was hard for Nayara Energy to access capital. This delay was seen as a failure of the company’s expansion plans.
3. Pollution Complaints The Gujarat government received four pollution complaints in the past two years against Nayara Energy Limited in Devbhumi Dwarka district. These complaints affected the company’s reputation and raised concerns about its environmental impact.

These instances serve as reminders that even the most promising companies can face challenges. However, they also provide valuable lessons for Nayara Energy to learn from and improve upon in their future endeavors.

CONCLUSION

As we can see in the marketing strategy of Nayara Energy, the company is trying to provide solutions to the petrol and energy problem in the country while at the same time gaining love and respect from people by giving back to the community. 

Although their social media is underutilized, especially their Twitter platform. For a platform like Twitter, entertaining content has been known to rake up more engagements and they haven’t been doing a good job at that. With a follower count of over 10k and an engagement count of barely 50. They need to do a much better job at connecting and engaging their audience online. 

Every day more and more companies are transitioning into the digital world and if you would like to gain knowledge on Digital Marketing to upskill then check out IIDE’s Online Digital Marketing Course. 

I hope this blog post has been able to give you enough insight into the marketing strategy of Nayara Energy. If you would like to read more in-depth case studies of your favorite brands then see IIDE Knowledge Portal for case studies of brands all over the world.