LOVELY PROFESSIONAL UNIVERSITY

BY – SHUBHAM SONY

ONLINE ACADEMIC TASK NO- 1

Mittal School of Business

Name of the faculty member: Dr. Richa Term: 3rd

Bhatia
Course Code: MKT201 Course title : Principles of Marketing

Class: BBA Section: Q2002

Date of allotment : 06.09.2021 Date of Submission :- 30.09.2021

Max. Marks: 30 Roll no. :- RQ2002B79

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Learning Outcome:
I got so many ideas related to this company also got to know there Marketing plans, also
get a strong command on 4p’s of marketing.

Declaration:
I declare that this Assignment is my individual work. I have not copied it from any
other students’ work or from any other source except where due acknowledgement is
made explicitly in the text, nor has any part been written for me by any other person.

Shubham Sony

Student’ Signature

Evaluator’s Comments (For Instructor’s use only)

General Observations Suggestions for Best part of assignment

Improvement

Evaluator’s Signature and Date:

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 Table of Content

S.no Contents Page no.

1 Introduction 4

2 Segmentation, Targeting and Positioning (STP) 4-7

3 Marketing Mix of Energy Transfer (4p’s) 8-10

4 Innovation Details 11-12

5 Comments/Suggestions 13

6 References 14

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Introduction

Energy Transfer LP is an energy company, which owns and operates a portfolio of energy assets
in the United States. The company's operations include natural gas midstream and intrastate
transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product
transportation and terminal ling services, and acquisition and marketing activities, as well as
NGL storage and fractionation services. The company's business segments include intrastate
transportation and storage, interstate transportation and storage, midstream, NGL and refined
products transportation and services, crude oil transportation and services, investment in Sunoco
LP, Investment in USA compression partners, LP (USAC) and all other segment.

STP (Segmentation, Targeting & Positioning) of Energy Transfer

1. Segmentation

In marketing, market segmentation is the process of dividing a broad consumer or

business market, normally consisting of existing and potential customers, into sub-groups
of consumers based on some type of shared characteristics.

Energy Transfer also use this strategy they divided their customers according to their
needs and supplying their products easily.
Their segmentation are like:

Oil companies who involve in selling Crude

Companies which is involve in selling NGL

NGL
Companies who provide domestic cylinder Natural gas
gases
Air lines companies Refined product

This segmentation is done on the basis of the needs of the various companies.
The most common method of segmentation is used by this company is Geographic
Segmentation.
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 2. Targeting

Targeting in marketing is a strategy that breaks a large market into smaller segments
to concentrate on a specific group of customers within that audience. It defines a
segment of customers based on their unique characteristics and focuses solel y on
serving them.

Instead of trying to reach an entire market, a brand uses target marketing to put their
energy into connecting with a specific, defined group within that market.

Business Diversity  Diversified business model comprised of five core segments no

segment contributes more than 30 percent of adjusted EBITDA
 Unrivaled geographic diversity with assets in all major producing
basins in the U.S

Strong Asset Base  Continue to leverage expansive footprint to drive operational

efficiencies and optimize assets
 Ongoing growth projects building near-and long-term value

Capital Discipline  Increased project return thresholds and high-graded investment

opportunities
 Significant reduction in growth capital in 2021, growth capex
forecast down 60% from FY 2020 forecast

Balance Sheet  Improved balance sheet enhances long-term value of partnership

 Focused on achieving leverage target of 4 to 4 5x and maintain a
solid investment grade rating

Inflection Point  Taking significant steps toward creating more financial flexibility
and a lower cost of capital
 Expect to be free cash flow positive in 2021 after growth capital
and equity distributions
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Growth Plans
Herein, we'll focus on an undersold part of Energy Transfer's story - the company's significant
capital spending on its business.

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3. Positioning

Positioning refers to the place that a brand occupies in the minds of the customers and
how it is distinguished from the products of the competitors and different from the
concept of brand awareness.

Comparison between Energy Transfer and Enterprise Product Partner.

 It turns out that, over the last 5 years, both ET and EPD have lost value based
upon the stock price. ET is down 29% and EPD 17% over 5 years.

 Adding 5 years' worth of distributions would bring both barely to the positive side
- plus 8% for ET and plus 15% for EPD. Those are both weak returns for a 5-year
investment.

 Considering the S&P 500 (SPY) is up 99% in that same period, both have been
lousy investments.

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 Marketing Mix of Energy Transfer (4p’s of Energy Transfer)

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product,
Promotion and Place. However, nowadays, the marketing mix increasingly includes several other
Ps like Packaging, Positioning, People and even Politics as vital mix elements.

Marketing Strategy of Energy Transfer analyses the brand with the marketing mix framework
which covers the 4Ps (Product, Price, Place and Promotion). There are several marketing
strategies like product innovation, pricing approach, promotion planning etc. These business
strategies, based on Energy Transfer marketing mix, help the brand succeed.
Energy Transfer marketing strategy helps the brand/company to position itself competitively in
the market and achieve its business goals & objectives.

Let us start the Energy Transfer Marketing Strategy & Mix to understand its product,
pricing, advertising & distribution strategies:

1. Price:

It refers to the value that is put for a product. It depends on costs of production, segment
targeted, ability of the market to pay, supply - demand and a host of other direct and
indirect factors.

The product strategy and mix in Energy Transfer marketing strategy can be
explained as follows:

 Energy Transfer is one of the leading power generation companies in USA. The
product portfolio in the marketing mix of Energy Transfer consists of
transportation, storage and terminalling for natural gas, crude oil, NGLs, refined
products and liquid natural gas.

 The plants were set up in 38 states of Canada and USA. In the renewable energy,
they are involved in the generation of hydro energy in USA, solar energy in
Canada geothermal energy in Indonesia & Australia and waste gas generation in
Canada.

 Energy Transfer also focuses on clean technologies like biomass gasification,

concentrated photovoltaic and solar powered telecom towers.
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2. Product:

It refers to the item actually being sold. The product must deliver a minimum level of
performance; otherwise even the best work on the other elements of the marketing mix
won't do any good.

Energy Transfer Pricing Strategy are explained as follow:

 In the power sector the price of power generation projects depend on a variety of
conditions. Depending upon the demand and supply and requirement of
electricity, the government decides and finalized which and what type of project
to be implemented. Then a tender process is initiated wherein Energy Transfer
decides the price of the project and time of completion. And depending upon
whether it wins a bit, a project will see its daylight.

 It also depends on the government’s willingness to pay and requirement. In the

electricity transmission sector, it is done as per government policies. In most of
the cases the price is decided by the authorities and Energy Transfer gets its fair
share or price.

 In the electricity distribution sector, the price depends mostly on the demand and
supply in a region, the competition, but with a government capping over it.
Hence, this gives how Energy Transfer price’s its offering in its marketing mix.

3. Place:

It refers to the point of sale. In every industry, catching the eye of the consumer and
making it easy for her to buy it is the main aim of a good distribution or 'place' strategy.
Retailers pay a premium for the right location. In fact, the mantra of a successful retail
business is 'location, location, location'.

Energy Transfer Place and Distribution Strategy are as followed:

 Energy Transfer caters its products and services centrally operated from the head
office. It also has got regional offices which spans across various metro and
capital cities in most of the states.

 The website of Energy Transfer provides an easy access for concerned authorities
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to get connected with them and discuss about any related projects.
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  Their main investments being in public assets, so in such a case they need to go
through the tender process called upon by the concerned authority.

 In many cases, they may hand over a project to the government, in such cases the
project is typically in the form of public and private partnership projects.

3. Promotion:

It this refers to all the activities undertaken to make the product or service known to the
user and trade. This can include advertising, word of mouth, press reports, incentives,
commissions and awards to the trade. It can also include consumer schemes, direct
marketing, contests and prizes.

Energy Transfer Promotion Strategy are as followed:

 Energy Transfer spends a less amount of money for promotional and

advertisement activities. This is due to the fact that a major portion of their
services are associated with governments, which do not need huge investments in
advertisements.

 Although, for the electricity distribution business primarily in the cities of USA in
order to be present in consumer’s mind Energy Transfer come up with
advertisements in Television and print media, mostly those catering to the local
news. Sustainability has been to the core of their businesses.

 They intend to make a sustainability model for environment, community,

customers and people. Such projects help Energy Transfer gain a good amount of
goodwill for the community within which they conduct their businesses.

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 Innovation Details
Dual Drive Compressors:

Dual Drive Technologies, an independent company within the Energy Transfer family, offers an
efficient hybrid natural gas compression system that reduces emissions through its patented
ability to switch compression drivers between an electric motor and a natural gas engine, and
vice-versa.

“Through the choice of Dual Drive compression, we were able to significantly reduce
greenhouse gas emissions without placing an undue burden on the electrical grid, said David
Coker, VP of ETT Power Optimization. Because the Dual Drive Compression system can
smoothly transition from electricity to natural gas instantaneously, we were able to participate in
Demand Response, as well as be available to utilities when there was a degradation of the grid
due to extremely high peaks or extreme weather events. The use of Dual Drive compression is a
win-win for both the environment and the electrical grid.”

Emissions Prevention Initiatives:

They are committed to identifying and implementing cost-effective emissions reduction and
prevention opportunities, including the reduction of our carbon footprint (methane and CO2). As
part of this commitment, we make significant investments each year in technology to reduce
emissions and improve our overall operations performance and efficiency.

These technology investments include pneumatic devices, thermal oxidizers, FLIR optical
imaging cameras, in-line inspection tools, stabilizers, and vapor vent-back systems.

1. Pneumatic Devices:
To date, we have installed approximately 12,000 low-emission pneumatic devices
throughout our 90,000 miles of pipeline systems, primarily at our automated valve sites.
Pneumatic devices allow us to safely and efficiently adjust and control our operations
through liquid level controllers, pressure regulators, and valve controllers.

2. Pipeline Blowdown:
Direct Injection we also use the direct injection system when conducting pipeline
blowdown procedures in order to conduct maintenance operations and testing on
pipelines. Direct injection reduces the pressure within the pipeline and thereby prevents
release of methane into the atmosphere.

3. Liquids Management:
We have also implemented an innovative liquids management process throughout much
of our natural gas gathering pipeline system through the use of stabilizers at our
processing plants. All 44 of our stabilizers, which reduce the vapor pressure of natural
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gas liquids for storage and transport, have vapor recovery units to route any vapors from
the stabilization process back into the plant for processing.
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Advancing Environmental Technology

1. iPIPE

The intelligent Pipeline Integrity Program (iPIPE) is an industry-led consortium whose

focus is to contribute to the advancement of new and emerging technologies to prevent
and detect gathering pipeline leaks. As part of our membership, our engineers and
environmental specialists collaborate with other industry experts in the research,
development and commercialization of promising technologies.

2. PRCI

The Pipeline Research Council International (PRCI) is an industry research forum for
technology developments and projects that assure the safe, reliable, environmentally
sound, and cost-effective pipeline transportation of energy to consumers worldwide.
Energy Transfer plays a leadership role in PRCI through Board membership and
participation in every technical committee. Many of the research projects focus on the
development of new technologies that help to directly or indirectly reduce emissions from
pipeline operations.

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 Comments/Recommendations

 Energy Transfer has an impressive portfolio of assets, and it is continuing to focus on

long-term growth. The company expects to be FCF-positive in 2021 as its growth capital
reduces significantly; however, it remains committed to long-term FCF for shareholders.
It plans to use that FCF to reduce its debt.

 At the same time, it's worth not ignoring the company's growth capital spending. Energy
Transfer will be spending ~7% of its market cap on growth capital in 2021 after rolling
off ~15% in 2020. In 2022-2023, that'll be 2-3%. That growth will pay off for
shareholders, which, combined with dividends and options, can generate strong
shareholder returns.

 This company has a lot more opportunities as compared to the other companies because
their innovative ideas are very unique and they are focusing on environment also with is
acting as psychological marketing.

 The company needs to focus on his market value as the stock price of this are down,
some time they up but again get down. Somehow they are lacking in building trust in
investors mind so this need to be improved.

 A lot of workers are complaining about this company as they are not providing flexible
work time to them, this is the thing where this company is lacking and don’t event tried to
look upon this matter, the workers are the one who make the company in profit and such
behavior will demotivate them and lead to loss of company.

 Talking about the overall review I can say that this company is doing good but need to
focus on little things as to avoid further disputes and run smoothly.

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 References

 Energy Transfer Lc.

 Segmentation
 Target
 Marketing Mix, 4p’s
 Innovation Details

Thank you.
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