How can downstream players build loyalty in a price-driven market? Can ESG initiatives drive trust without falling into greenwashing traps? What role does trading play in turning challenges into opportunities? Let's explore the roadmap for marketing success in downstream in 2025.
In my days of energy trading (or ETRM) tech, I was always struck by the basics of trading strategies—boiling down to supply, demand, trust, and price. It’s obviously much more complicated than that, but as a marketer, I wondered what value and differentiation meant in the downstream market.
The downstream energy market is projected to grow at a CAGR of 3.2% through 2025, driven by rising demand for biofuels, EV infrastructure, and smart trading strategies. Yet, growth alone isn’t enough—success requires leadership in value and differentiation.
In a sector dominated by price wars and product parity, downstream players must redefine value. Differentiation comes through operational precision, ESG leadership, and creating customer connections that transcend transactions.
So, let’s look at a few problems we see repeatedly, along with some proposed ideas and tactics. I don't pretend that these are deep, but it's a marketer's point of view in how to grow value to the everyday biz (B2B) or consumer (B2C).
Here’s how downstream leaders can turn today’s challenges into opportunities for an even stronger 2025:
Fuels and lubricants are often seen as interchangeable, making customer retention and loyalty elusive. It sometimes feels like it's all the same stuff but with a different brand on it depending on where you buy it.
1. Retail Redefined
Shell’s Fuel Rewards program boosted retention by 10%, while Chevron’s retail revamp, featuring premium coffee and family-friendly amenities, increased in-store time by 15%. Good retail can create lasting impressions (and revenue).
Action Step: Pilot hyper-local loyalty programs tied to community causes or green initiatives, which are important to younger consumers.
2. Tech-Driven Differentiation
ExxonMobil’s app-based prepay system reduced transaction times by 30%, highlighting the power of technology in enhancing convenience, and looking at transactions from the eyes of consumers first.
Next-Level Idea: Deploy AI kiosks for seamless, personalized promotions.
ESG claims are now table stakes, but greenwashing concerns can erode trust. Stop abusing the buzzwords. Make them count.
1. Prove It with Metrics
BP’s EV hub investments aim to cut lifecycle emissions by 25% in pilot cities by 2025. These measurable outcomes build stakeholder confidence.
Next Step: Publish audited ESG results annually. Highlight metrics like, for example, “In 2024, our biofuel blends reduced CO₂ by 18%, powering 1 billion miles of travel.”
2. Address Greenwashing Risks Head-On
Be transparent about progress and challenges. Be upfront about initiatives and progress of those initiatives. Perceived progress is better than spin.
Energy trading drives profitability but is often misunderstood or overlooked.
1. Thought Leadership with Impact
BP’s Energy Outlook sets the bar for trading-driven insights. By sharing market analysis, trading desks can showcase their role as strategic assets.
Campaign Idea: “Energy Markets, Decoded: Insights That Drive Value.” Publish short reports or videos explaining how trading mitigates volatility and stabilizes supply.
2. Showcase Real-World Wins
Illustrate success stories, like hedging strategies that saved $15M during price spikes, ensuring uninterrupted supply for key clients in B2B and consumer spaces.
Discount-driven loyalty programs rarely create emotional connections. A transaction is a transaction.
1. Tailored Rewards
Shell Go+ achieved 50% weekly engagement by personalizing rewards. Adding green incentives, like EV charging credits, could further boost participation.
Example Campaign: No points for creativity (this is a free article!), but “Drive Green, Earn More: Fuel Rewards for a Better Future.”
2. Community Investment
Chevron’s local scholarships and small business grants demonstrate how community-focused programs humanize a brand.
Next Step: Launch initiatives like “Fueling Futures,” supporting regional economies and education.
Supply chain disruptions and regulatory shifts challenge even the most resilient operations. Every industry faces supply chain disruptions, and energy isn't an exception.
1. Showcase Resilience
“In 2024, despite severe storms, we achieved 99.5% on-time deliveries.” Share data on how your company handles disruptions.
2. Promote Refinery Innovation
Highlight advancements in emissions control and adaptive production. Campaign tagline: “Efficiency Meets Responsibility.”
In 2025, standing out in the downstream market requires more than operational excellence. It demands transparency, innovation, and emotional connection. By addressing these challenges with measurable strategies, your company can not only compete but lead.
At BrownRobinson, we specialize in actionable strategies that redefine success for seemingly commoditized markets. But every market has unique value and differentiation.
What's yours?
If you don't know, let's connect to explore how we can help your brand lead with measurable impact and lasting value.