Magazine article Marketing

Marketing Mix: We'll Call You - British Gas

Magazine article Marketing

Marketing Mix: We'll Call You - British Gas

Article excerpt

News that our gas bill was set to soar prompted us to ask whether it was worth the extra money.

British Gas British Gas, how can I help you?

Mktg Your website says to call you to see if you can save me money, but I've heard that you're about to raise your prices higher than other companies. Is that true?

British Gas Yes, we have raised our prices and we're the first to announce it because we have the most customers. Other companies will probably have to raise theirs as well. I'll tell you what the rises are, just bear with me (holding music plays). We're increasing gas prices by 12.4% and electricity prices by 9.4%.

Mktg Gosh, that's a lot.

British Gas It's due to oil prices and things going up. We expect our competitors to increase their prices too.

Mktg When they were talking about this on the radio they were saying the rises were higher than is justified.

British Gas (pause) No, this is basically the only way we can absorb the costs, by passing the rises on to consumers. The cost of gas, for example, has risen by 28%.

Mktg But with British Gas spending so much on bonuses and forking out for expensive advertising with celebrities in, like that guy from The Royle Family, couldn't it cut costs there before putting prices up? …

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