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Mat 500

In: Business and Management

Submitted By bibo77
Words 489
Pages 2
Discuss BP Connect’s revenue stream prior to and after the introduction of BP Connect.
The sale of fuel is considered a transaction driver but it did not generate enough income for BP. After BP initiated the BP Connect store portion to its sale of gasoline they immediately noticed an increase in revenue and sales. With BP Connect customers are returning 2-3 times a day to pick up items in the store such as breakfast muffins, Gatorade, papers, and everyday items that help customers get through their daily work day. In other words BP is making a lot more money with the addition of BP Connect than it ever did just by selling fuel.
Identify the needs that BP Connect is meeting for the customer?
BP Connect supplies customers with a convenient place to pick up the items they need and use every day and even 2-3 times a day. The customer can buy a soft drink, lunch, a snack, and even small needed items without the necessity of going to a large supermarket. And they can do this at the same time they are refueling their car or truck. This is a great convenience and wildly popular with today’s consumers. It helps the customer save time and provides them with a resource to shorten their day by not having to go to multiple places to get what they want and need.
Discuss why BP changed its product offering?
BP was unable to increase its revenue stream just by continuing to sell only fuel. By branching out in its product offering by selling food and fuel they have greatly increased the money they can and do make. Yes, consumers need to buy gas for their car but they also can pick up breakfast, lunch, even a fast dinner or snack to save time in their day and multi-task. BP has perfected this extra offering by separating out the fuel from the food and presenting these offerings to the public as two entities. The employees all wear separate uniforms and have separate

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