Friday, July 30, 2010

Rebranding BP (NYSE:BP) as Amoco

Some BP (NYSE:BP) gas station owners have thrown around the idea of rebranding BP as Amoco in the U.S. market, the company bought out by BP in the latter part of the 20th century.

The thinking by a growing group of owners is Amoco was once thought of as the American Oil Co., and that could work hand in hand with the installation of American Robert Dudley as CEO, who replaced Tony Hayward.

Since BP's largest market is the U.S., that does make some sense, but the branding BP has been going on for years, and it would come with a lot of risk to change it back to Amoco, a brand a lot of people have forgotten, or don't know even existed.

Some people have protested the Gulf oil spill by boycotting BP, and that has hurt station owners anywhere from 10 percent to 40 percent in less sales.

BP has addressed the problem by reducing credit card fees used at the stations, providing more national advertising, and giving cash to distributors.

At this time the idea of rebranding hasn't reached the proportions where it would have a chance of becoming a reality, but it could gain some steam if things remain as they are.

In October BP has its annual convention, where at that time we'll see if this becomes something revolutionary in the company at a grassroots level, or things return more to normal after the oil leak is permanently plugged, and people don't have the company in front of their face on the TV or Internet being reminded of the oil spill and its consequences.

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