Deep Water

i i Dedication This report is dedicated to the 11 men who lost their lives on the Deepwater Horizon rig on April 20, 2010 and to their families, in hope that this report will help minimize the chance of another such disaster ever happening again. Jason Anderson Aaron Dale Burkeen Donald Clark Stephen Curtis Gordon Jones Roy Wyatt Kemp Karl Dale Kleppinger, Jr. Blair Manuel Dewey Revette Shane Roshto Adam Weise ii Acknowledgements We wish to acknowledge the many individuals and organizations, government officials and agencies alike that offered their views and insights to the Commission.We would especially like to express our gratitude to the Coast Guard’s Incident Specific Preparedness Review (ISPR) for allowing Commission staff to participate in its interviews and discussions, which was invaluable to the preparation of this report. (A copy of the Coast Guard’s ISPR report can be found at the Commission’s website at www. oilspillcommission. gov). We would also li ke to thank Chevron for performing the cement tests that proved so critical to our investigation into the Macondo well blowout. Related article: Why Nations Fail Chapter 5We also thank the Department of Energy, which served as our supporting agency, and all of the Department employees whose assistance was so essential to the success and functioning of the Commission. In particular, we would like to thank Christopher Smith, Deputy Assistant Secretary for Oil and Natural Gas, who acted as the Commission’s Designated Federal Officer, as well as Elena Melchert, Petroleum Engineer in the Office of Oil and Gas Resource Conservation, who served as the Committee Manager. But most importantly, we are deeply grateful to the citizens of the Gulf who shared their personal xperiences as Commissioners traveled in the region, providing a critical human dimension to the disaster and to our undertaking, as well as the many people who testified at the Commission’s hearings, provided public comments, and submitted statements to our website. Together, these contributions greatly informed our work and led to a bette r report. Thank you one and all. Copyright, Restrictions, and Permissions Notice Except as noted herein, materials contained in this report are in the public domain.Public domain information may be freely distributed and copied. However, this report contains illustrations, photographs, and other information contributed by or licensed from private individuals, companies, or organizations that may be protected by U. S. and/or foreign copyright laws. Transmission or reproduction of items protected by copyright may require the written permission of the copyright owner. When using material or images from this report we ask that you credit this report, as well as the source of the material as indicated in this report. Permission to use materials copyrighted by other individuals, companies or organizations must be obtained directly from those sources. This report contains links to many Web sites. Once you access another site through a link that we provide, you are subject to the use, copyr ight and licensing restrictions of that site. Neither the Government nor the National Commission on the BP/Deepwater Horizon Oil Spill and Offshore Drilling (Commission) endorses any of the organizations or views represented by the linked sites unless expressly stated in the report.The Government and the Commission take no responsibility for, and exercise no control over, the content, accuracy or accessibility of the material contained on the linked sites. Cover Photo:  © Steadfast TV ISBN: 978-0-16-087371-3 iii iii Deep Water The Gulf Oil Disaster and the Future of Offshore Drilling Report to the President National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling January 2011 iv Commission Members Bob Graham, Co-Chair William K. Reilly, Co-Chair Frances Beinecke Donald F. Boesch Terry D. Garcia Cherry A. Murray Fran Ulmer v Table of Contents Foreword PART I: The Path to Tragedy Chapter 1 â€Å"Everyone involved with the job†¦was completely satisfiedâ⠂¬ ¦. † The Deepwater Horizon, the Macondo Well, and Sudden Death on the Gulf of Mexico vi xiii 1 21 Chapter 2 â€Å"Each oil well has its own personality† The History of Offshore Oil and Gas in the United States Chapter 3 â€Å"It was like pulling teeth. † Oversight—and Oversights—in Regulating Deepwater Energy Exploration and Production in the Gulf of Mexico 55 PART II: Explosion and Aftermath: The Causes and Consequences of the Disaster Chapter 4 But, who cares, it’s done, end of story, [we] will probably be fine and we’ll get a good cement job. † The Macondo Well and the Blowout 87 89 Chapter 5 â€Å"You’re in it now, up to your neck! † Response and Containment 129 173 197 Chapter 6 â€Å"The worst environmental disaster America has ever faced. † Oiling a Rich Environment: Impacts and Assessment Chapter 7 â€Å"People have plan fatigue . . . they’ve been planned to death† Recovery and Restor ation PART III: Lessons Learned: Industry, Government, Energy Policy Chapter 8 â€Å"Safety is not proprietary. † Changing Business as Usual 215 217Chapter 9 â€Å"Develop options for guarding against, and mitigating the impact of, oil spills associated with offshore drilling. † Investing in Safety, Investing in Response, Investing in the Gulf 249 Chapter 10 American Energy Policy and the Future of Offshore Drilling 293 307 356 358 359 362 365 366 368 Endnotes Appendices Appendix A: Commission Members Appendix B: List of Acronyms Appendix C: Executive Order Appendix D: Commission Staff and Consultants Appendix E: List of Commission Meetings Appendix F: List of Staff Working Papers Index vi Photo: Susan Walsh, Associated PressThe explosion that tore through the Deepwater Horizon drilling rig last April 20, as the rig’s crew completed drilling the exploratory Macondo well deep under the waters of the Gulf of Mexico, began a human, economic, and environmental disas ter. Eleven crew members died, and others were seriously injured, as fire engulfed and ultimately destroyed the rig. And, although the nation would not know the full scope of the disaster for weeks, the first of more than four million barrels of oil began gushing uncontrolled into the Gulf—threatening livelihoods, precious habitats, and even a unique way of life.A treasured American landscape, already battered and degraded from years of mismanagement, faced yet another blow as the oil spread and washed ashore. Five years after Hurricane Katrina, the nation was again transfixed, seemingly helpless, as this new tragedy unfolded in the Gulf. The costs from this one industrial accident are not yet fully counted, but it is already clear that the impacts on the region’s natural systems and people were enormous, and that economic losses total tens of billions of dollars.On May 22, 2010, President Barack Obama announced the creation of the National Commission on the BP Deepwat er Horizon Oil Spill and Offshore Drilling: an independent, nonpartisan entity, directed to provide a thorough analysis and impartial judgment. The President charged the Commission to determine the causes of the disaster, and to improve the country’s ability to respond to spills, and to recommend reforms to make offshore energy production safer. And the President said we were to follow the facts wherever they led. This report is the result of an intense six-month effort to fulfill the President’s charge.Foreword vii vii From the outset, the Commissioners have been determined to learn the essential lessons so expensively revealed in the tragic loss of life at the Deepwater Horizon and the severe damages that ensued. The Commission’s aim has been to provide the President, policymakers, industry, and the American people a clear, accessible, accurate, and fair account of the largest oil spill in U. S history: the context for the well itself, how the explosion and sp ill happened, and how industry and government scrambled to respond to an unprecedented emergency.This was our first obligation: determine what happened, why it happened, and explain it to Americans everywhere. As a result of our investigation, we conclude: †¢ †¢ The explosive loss of the Macondo well could have been prevented. The immediate causes of the Macondo well blowout can be traced to a series of identifiable mistakes made by BP Halliburton, and Transocean that reveal such , systematic failures in risk management that they place in doubt the safety culture of the entire industry. Deepwater energy exploration and production, particularly at the frontiers of experience, involve risks for which neither industry nor overnment has been adequately prepared, but for which they can and must be prepared in the future. To assure human safety and environmental protection, regulatory oversight of leasing, energy exploration, and production require reforms even beyond those sign ificant reforms already initiated since the Deepwater Horizon disaster. Fundamental reform will be needed in both the structure of those in charge of regulatory oversight and their internal decisionmaking process to ensure their political autonomy, technical expertise, and their full consideration of environmental protection concerns.Because regulatory oversight alone will not be sufficient to ensure adequate safety, the oil and gas industry will need to take its own, unilateral steps to increase dramatically safety throughout the industry, including self-policing mechanisms that supplement governmental enforcement. The technology, laws and regulations, and practices for containing, responding to, and cleaning up spills lag behind the real risks associated with deepwater drilling into large, high-pressure reservoirs of oil and gas located far offshore and thousands of feet below the ocean’s surface.Government must close the existing gap and industry must support rather than r esist that effort. Scientific understanding of environmental conditions in sensitive environments in deep Gulf waters, along the region’s coastal habitats, and in areas proposed for more drilling, such as the Arctic, is inadequate. The same is true of the human and natural impacts of oil spills. †¢ †¢ †¢ †¢ †¢ viii We reach these conclusions, and make necessary recommendations, in a constructive spirit: we aim to promote changes that will make American offshore energy exploration and production far safer, today and in the future.More broadly, the disaster in the Gulf undermined public faith in the energy industry, government regulators, and even our own capability as a nation to respond to crises. It is our hope that a thorough and rigorous accounting, along with focused suggestions for reform, can begin the process of restoring confidence. There is much at stake, not only for the people directly affected in the Gulf region, but for the American peopl e at large. The tremendous resources that exist within our outer continental shelf belong to the nation as a whole.The federal government’s authority over the shelf is accordingly plenary, based on its power as both the owner of the resources and in its regulatory capacity as sovereign to protect public health, safety, and welfare. To be allowed to drill on the outer continental shelf is a privilege to be earned, not a private right to be exercised. â€Å"Complex Systems Almost Always Fail in Complex Ways† As the Board that investigated the loss of the Columbia space shuttle noted, â€Å"complex systems almost always fail in complex ways. Though it is tempting to single out one crucial misstep or point the finger at one bad actor as the cause of the Deepwater Horizon explosion, any such explanation provides a dangerously incomplete picture of what happened—encouraging the very kind of complacency that led to the accident in the first place. Consistent with the President’s request, this report takes an expansive view. Why was a corporation drilling for oil in mile-deep water 49 miles off the Louisiana coast? To begin, Americans today consume vast amounts of petroleum products—some 18. 7 million barrels per day—to fuel our economy.Unlike many other oil-producing countries, the United States relies on private industry—not a state-owned or -controlled enterprise—to supply oil, natural gas, and indeed all of our energy resources. This basic trait of our private-enterprise system has major implications for how the U. S. government oversees and regulates offshore drilling. It also has advantages in fostering a vigorous and competitive industry, which has led worldwide in advancing the technology of finding and extracting oil and gas. Even as land-based oil production extended as far as the northern Alaska frontier, the oil and gas industry began to move offshore.The industry first moved into shallow water and e ventually into deepwater, where technological advances have opened up vast new reserves of oil and gas in remote areas—in recent decades, much deeper under the water’s surface and farther offshore than ever before. The Deepwater Horizon was drilling the Macondo well under 5,000 feet of Gulf water, and then over 13,000 feet under the sea floor to the hydrocarbon reservoir below. It is a complex, even dazzling, enterprise. The remarkable advances that have propelled the move to deepwater drilling merit comparison with exploring outer space.The Commission is respectful and admiring of the industry’s technological capability. ix ix But drilling in deepwater brings new risks, not yet completely addressed by the reviews of where it is safe to drill, what could go wrong, and how to respond if something does go awry. The drilling rigs themselves bristle with potentially dangerous machinery. The deepwater environment is cold, dark, distant, and under high pressuresâ€⠀and the oil and gas reservoirs, when found, exist at even higher pressures (thousands of pounds per square inch), compounding the risks if a well gets out of control.The Deepwater Horizon and Macondo well vividly illustrated all of those very real risks. When a failure happens at such depths, regaining control is a formidable engineering challenge—and the costs of failure, we now know, can be catastrophically high. In the years before the Macondo blowout, neither industry nor government adequately addressed these risks. Investments in safety, containment, and response equipment and practices failed to keep pace with the rapid move into deepwater drilling.Absent major crises, and given the remarkable financial returns available from deepwater reserves, the business culture succumbed to a false sense of security. The Deepwater Horizon disaster exhibits the costs of a culture of complacency. The Commission examined in great detail what went wrong on the rig itself. Our investi gative staff uncovered a wealth of specific information that greatly enhances our understanding of the factors that led to the explosion. The separately published report of the chief counsel (a summary of the findings is presented in Chapter 4) offers the fullest account yet of what happened on the rig and why.There are recurring themes of missed warning signals, failure to share information, and a general lack of appreciation for the risks involved. In the view of the Commission, these findings highlight the importance of organizational culture and a consistent commitment to safety by industry, from the highest management levels on down. * But that complacency affected government as well as industry. The Commission has documented the weaknesses and the inadequacies of the federal regulation and oversight, and made important recommendations for changes in legal authority, regulations, investments in expertise, and management.The Commission also looked at the effectiveness of the res ponse to the spill. There were remarkable instances of dedication and heroism by individuals involved in the rescue and cleanup. Much was done well—and thanks to a combination of good luck and hard work, the worst-case scenarios did not all come to pass. But it is impossible to argue that the industry or the country was prepared for a disaster of the magnitude of the Deepwater Horizon oil spill. Twenty years after the Exxon Valdez spill in Alaska, the same blunt response technologies—booms, dispersants, and skimmers—were used, to limited effect.On-the-ground shortcomings in the joint public-private response to an overwhelming spill like that resulting from the blowout of the Macondo well are now evident, and demand public and private investment. So do the weaknesses in local, state, and federal coordination revealed by the emergency. Both government and industry failed to anticipate and prevent this catastrophe, and failed again to be prepared to respond to it. *The chief counsel’s investigation was no doubt complicated by the lack of subpoena power. Nonetheless, Chief Counsel Bartlit did an extraordinary job building the record and interpreting what he learned.He used his considerable powers of persuasion along with other tools at his disposal to engage the involved companies in constructive and informative exchanges. x If we are to make future deepwater drilling safer and more environmentally responsible, we will need to address all these deficiencies together; a piecemeal approach will surely leave us vulnerable to future crises in the communities and natural environments most exposed to offshore energy exploration and production. The Deepwater Drilling Prospect The damage from the spill and the impact on the people of the Gulf has guided our work from the very beginning.Our first action as a Commission was to visit the Gulf region, to learn directly from those most affected. We heard deeply moving accounts from oystermen witness ing multi-generation family businesses slipping away, fishermen and tourism proprietors bearing the brunt of an ill-founded stigma affecting everything related to the Gulf, and oil-rig workers dealing with mounting bills and threatened home foreclosures, their means of support temporarily derailed by a blanket drilling moratorium, shutting down all deepwater drilling rigs, including those not implicated in the BP spill.Indeed, the centrality of oil and gas exploration to the Gulf economy is not widely appreciated by many Americans, who enjoy the benefits of the energy essential to their transportation, but bear none of the direct risks of its production. Within the Gulf region, however, the role of the energy industry is well understood and accepted. The notion of clashing interests—of energy extraction versus a natural-resource economy with bountiful fisheries and tourist amenities—misses the extent to which the energy industry is woven into the fabric of the Gulf cul ture and economy, providing thousands of jobs and essential public revenues.Any discussion of the future of offshore drilling cannot ignore these economic realities. But those benefits have imposed their costs. The bayous and wetlands of Louisiana have for decades suffered from destructive alteration to accommodate oil exploration. The Gulf ecosystem, a unique American asset, is likely to continue silently washing away unless decisive action is taken to start the work of creating a sustainably healthy and productive landscape. No one should be deluded that restoration on the scale required will occur quickly or cheaply.Indeed, the experience in restoring other large, sensitive regions—the Chesapeake Bay, the Everglades, the Great Lakes—indicates that progress will require coordinated federal and state actions, a dedicated funding source, long-term monitoring, and a vocal and engaged citizenry, supported by robust non-governmental groups, scientific research, and more. We advocate beginning such an effort, seriously and soon, as a suitable response to the damage and disruption caused by the Deepwater Horizon emergency.It is a fair recognition not only of the costs that energy exploitation in the Gulf has, for decades, imposed on the landscape and habitats—and the other economic activities they support—but also of the certainty that Americans will continue to develop the region’s offshore energy resources. For the simple fact is that the bulk of our newly discovered petroleum reserves, and the best prospects for future discoveries, lie not on land, but under water. To date, we have xi xi made the decision as a nation to exploit the Gulf ’s offshore energy resources—ruling much of the Florida, Atlantic, and Pacific coasts out of bounds for drilling.The choice of how aggressively to exploit these resources, wherever they may be found, has profound implications for the future of U. S. energy policy, for our need to u nderstand and assure the integrity of fragile environmental resources, and for the way Americans think about our economy and our security. Although much work is being done to improve the fuelefficiency of vehicles and to develop alternative fuels, we cannot realistically walk away from these offshore oil resources in the near future. So we must be much better prepared to exploit such resources with far greater care. The Commission and Its WorkWhile we took a broad view of the spill, it could not be exhaustive. There is still much we do not know—for instance, the blowout preventer, the last line of defense against loss of well control, is still being analyzed; and the Deepwater Horizon itself, after its explosive destruction, remained out of reach during our investigation. The understandable, immediate need to provide answers and concrete suggestions trumped the benefits of a longer, more comprehensive investigation. And as we know from other spills, their environmental conseq uences play out over decades—and often in unexpected ways.Instead, the Commission focused on areas we thought most likely to inform practical recommendations. Those recommendations are presented in the spirit of transforming America into the global leader for safe and effective offshore drilling operations. Just as this Commission learned from the experiences of other nations in developing our recommendations, the lessons learned from the Deepwater Horizon disaster are not confined to our own government and industry, but relevant to rest of the world. We wish we could say that our recommendations make a recurrence of a disaster like the Macondo blowout impossible. We do not have that power.No one can eliminate all risks associated with deepwater exploration. But when exploration occurs, particularly in sensitive environments like the Gulf of Mexico or the Arctic, the country has an obligation to make responsible decisions regarding the benefits and risks. The report is divide d into three sections. Chapters 1 through 3 describe the events of April 20th on the Deepwater Horizon, and, more important, the events leading up to it in the preceding decades—especially how the dramatic expansion of deepwater drilling in the Gulf was not met by regulatory oversight capable of ensuring the safety of those drilling operations.Chapters 4 through 7 lay out the results of our investigation in detail, highlighting the crucial issues we believe must inform policy going forward: the specific engineering and operating choices made in drilling the Macondo well, the attempts to contain and respond to the oil spill, and the impacts of the spill on the region’s natural resources, economy, and people—in the context of the progressive degradation of the Mississippi Delta environment. xii Chapters 8 through 10 present our recommendations for reforms in business practices, regulatory oversight, and broader policy concerns.We recognize that the improvements we advocate all come with costs and all will take time to implement. But inaction, as we are deeply aware, runs the risk of real costs, too: in more lost lives, in broad damage to the regional economy and its long-term viability, and in further tens of billions of dollars of avoidable clean-up costs. Indeed, if the clear challenges are not addressed and another disaster happens, the entire offshore energy enterprise is threatened—and with it, the nation’s economy and security.We suggest a better option: build from this tragedy in a way that makes the Gulf more resilient, the country’s energy supplies more secure, our workers safer, and our cherished natural resources better protected. Our Thanks and Dedication We thank President Obama for this opportunity to learn thoroughly about the crisis, and to share our findings with the American public. We deeply appreciate the effort people in the affected Gulf regions made to tell us about their experiences, and the time and preparation witnesses before the Commission dedicated to their presentations.We have come to respect the seriousness with which our fellow Commissioners assumed our joint responsibilities, and their diverse expertise and perspectives that helped make its work thorough and productive. On their behalf, we wish to recognize the extraordinary work the Commission’s staff—scientists, lawyers, engineers, policy analysts, and more— performed, under demanding deadlines, to make our inquiries broad, deep, and effective; and we especially highlight the leadership contributions of Richard Lazarus, executive director, and Fred Bartlit, chief counsel.Together, they have fulfilled an extraordinary public service. Finally, to the American people, we reiterate that extracting the energy resources to fuel our cars, heat and light our homes, and power our businesses can be a dangerous enterprise. Our national reliance on fossil fuels is likely to continue for some time— and all of us reap benefits from the risks taken by the men and women working in energy exploration. We owe it to them to ensure that their working environment is as safe as possible. We dedicate this effort to the 11 of our fellow citizens who lost their lives in the Deepwater Horizon explosion.Bob Graham, Co-Chair William K. Reilly, Co-Chair xiii xiii xiii Part I The Path to Tragedy On April 20, 2010, the 126 workers on the BP Deepwater Horizon were going about the routines of completing an exploratory oil well—unaware of impending disaster. What unfolded would have unknown impacts shaped by the Gulf region’s distinctive cultures, institutions, and geography—and by economic forces resulting from the unique coexistence of energy resources, bountiful fisheries and wildlife, and coastal tourism.The oil and gas industry, long lured by Gulf reserves and public incentives, progressively developed and deployed new technologies, at ever-larger scales, in pursuit of va luable energy supplies in increasingly deeper waters farther from the coastline. Regulators, however, failed to keep pace with the industrial expansion and new technology—often because of industry’s resistance to more effective oversight. The result was a serious, and ultimately inexcusable, shortfall in supervision of offshore drilling that played out in the Macondo well blowout and the catastrophic oil spill that followed.Chapters 1 through 3 describe the interplay of private industry and public oversight in the distinctive Gulf deepwater context: the conditions that governed the deployment of the Deepwater Horizon and the drilling of the Macondo well. Chapter One 1 1 Chapter One â€Å"Everyone involved with the job . . . was completely satisfied. . . † The Deepwater Horizon, the Macondo Well, and Sudden Death on the Gulf of Mexico At 5:45 a. m. on Tuesday, April 20, 2010, a Halliburton Company cementing engineer sent an e-mail from the rig Deepwater Horizon, in the Gulf of Mexico off the Louisiana coast, to his colleague in Houston.He had good news: â€Å"We have completed the job and it went well. †1 Outside in the Gulf, it was still dark—beyond the glare of the floodlights on the gargantuan rig, the four decks of which towered above the blue-green water on four huge white columns, all floating on massive pontoons. The oil derrick rose over 20 stories above the top deck. Up on the bridge on the main deck, two officers monitored the satelliteguided dynamic positioning system, controlling thrusters so powerful that they could keep the 33,000-ton Deepwater Horizon centered over a well even in high seas.The rig’s industrial hum and loud mechanical noises punctuated the sea air as a slight breeze blew in off the water. The crew worked on Pride of the Transocean fleet of offshore drilling rigs, Deepwater Horizon rides calmly on station 40 miles off the Louisiana coast. The $560-million-dollar rig, under lease to BP was p utting the finishing touches on the oil company’s , 18,000-foot-deep Macondo well when it blew out and escaping methane gas exploded. Eleven workers died in the inferno. According to the government’s estimates, by the time the well was sealed months later, over 4 million barrels of oil had spilled into the Gulf. lt; Photo courtesy of Transocean 2 National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling the well bore, aiming always to keep the pressure inside the well balancing the force exerted by the surrounding seabed. 2 By the time the Halliburton engineer had arrived at the rig four days earlier to help cement in the two-and-a-half-mile-deep Macondo well, some crew members had dubbed it â€Å"the well from hell. †3 Macondo was not the first well to earn that nickname;4 like many deepwater wells, it had proved complicated and challenging.As they drilled, the engineers had to modify plans in response to their increasing knowledge of the precise features of the geologic formations thousands of feet below. Deepwater drilling is an unavoidably tough, demanding job, requiring tremendous engineering expertise. BP drilling engineer Brian Morel, who had designed the Macondo well with other BP engineers including Mark Hafle, was also on board to observe the final stages of work at the well. 5 In an April 14 e-mail, Morel had lamented to his colleagues, â€Å"this has been [a] nightmare well which has everyone all over the place. 6 BP and its corporate partners on the well, Anadarko Petroleum and MOEX USA, had, according to government reports, budgeted $96. 2 million and 51 days of work to drill the Macondo well in Mississippi Canyon Block 252. 7 They discovered a large reservoir of oil and gas, but drilling had been challenging. As of April 20, BP and the Macondo well were almost six weeks behind schedule and more than $58 million over budget. 8 The Deepwater Horizon was not originally meant to drill Macondo. Another gian t rig, the Marianas, had initiated work on the well the previous October. Drilling had reached more than 9,000 feet below the ocean surface (4,000 feet below the seabed), with another 9,000 feet to go to â€Å"pay zone† (the oil and gas reservoir), when Hurricane Ida so battered the rig on November 9 that it had to be towed in for repair. Both Marianas and Deepwater Horizon were semisubmersible rigs owned by Transocean, founded in Louisiana in 1919 as Danciger Oil & Refining Co. and now the world’s largest contractor of offshore drilling rigs. 10 In 2009, Transocean’s global fleet produced revenues of $11. 6 billion. 1 Transocean had consolidated its dominant position in the industry in November 2007 by merging with rival GlobalSantaFe. 12 Deepwater Horizon, built for $350 million,13 was seen as the outstanding rig in Transocean’s fleet; leasing its services reportedly cost as much as $1 million per day. Since Deepwater Horizon’s 2001 maiden voyage to the Gulf, it had been under contract to London-based BP (formerly known as British Petroleum). By 2010, after numerous acquisitions, BP had become the world’s fourth-largest corporation (based on revenue)14 producing more than 4 million barrels of oil daily from 30 countries. Ten percent of BP’s output came from the Gulf of Mexico, where BP America (headquartered in Houston) was the largest producer. But BP had a tarnished reputation for safety. Among other BP accidents, 15 workers died in a 2005 explosion at its Texas City, Texas, refinery; in 2006, there was a major oil spill from a badly corroded BP pipeline in Alaska. * *A barrel equals 42 gallons. * * * Chapter One 3 3 Deepwater Horizon had arrived at the Macondo lease site on January 31, at 2:15 p. m. It was 55 degrees, chilly and clear—the night of a full moon.About 126 people were aboard: approximately 80 Transocean employees, a few BP men, cafeteria and laundry workers, and a changing group of worke rs contracted for specialized jobs. Depending on the status of the well, these might include Halliburton cementers, mud loggers from Sperry Sun (a Halliburton subsidiary), mud engineers from M-I SWACO (a subsidiary of Schlumberger, an international oilfield services provider), remotely operated vehicle technicians from Oceaneering, or tank cleaners and technicians from the OCS Group. The offices and living quarters were on the two bottom decks of the rig.Helicopters flew in and out regularly with workers and supplies, landing on the top-deck helipad, and service ships made regular visits. At its new Macondo assignment, Deepwater Horizon floated in 4,992 feet of water just beyond the gentle slope of the continental shelf in the Mississippi Canyon. 15 The seabed far below was near-freezing, visible to the crew only via cameras mounted on the rig’s subsea remotely operated vehicle. Another two and a half miles below the seabed was the prize BP sought: a large reservoir of oil an d gas from the Middle Miocene era trapped in a porous rock formation at temperatures exceeding 200 degrees. 6 These deepwater hydrocarbon fields, buried far below the seabed—not just in the Gulf, but in other oil-rich zones around the world, too—were the brave new oil frontier. The size of some deepwater fields was so huge that the oil industry had nicknamed those with a billion barrels or more â€Å"elephants. †17 Drilling for oil had always been hard, dirty, dangerous work, combining heavy machinery and volatile hydrocarbons extracted at high pressures. Since 2001, the Gulf of Mexico workforce—35,000 people, working on 90 big drilling rigs and 3,500 production platforms—had suffered 1,550 injuries, 60 deaths, and 948 fires and explosions. 8 The rig never slept. Most workers on Deepwater Horizon, from BP’s top â€Å"company man† down to the roustabouts, put in a 12-hour night or day shift, working three straight weeks on and then hav ing three weeks off. Rig workers made good money for the dangerous work and long stints away from home and family. Top rig and management jobs paid well into six figures. On the morning of April 20, Robert Kaluza was BP’s day-shift company man on the Deepwater Horizon. On board for the first time, he was serving for four days as a relief man for Ronald Sepulvado, a veteran well-site leader on the rig.Sepulvado had flown back to shore April 16 for a required well-control class. 19 During the rig’s daily 7:30 a. m. operations conference call to BP in Houston, engineer Morel discussed the good news that the final cement job at the bottom of the Macondo well had gone fine. 20 To ensure the job did not have problems, a three-man Schlumberger team was scheduled to fly out to the rig later that day, able to perform a suite of tests to examine the well’s new bottom cement seal. 21 4 National Commission on the BP Deepwater Horizon Oil Spill and Offshore DrillingAccording to the BP team’s plan, if the cementing went smoothly, as it had, they could skip Schlumberger’s cement evaluation. Generally, the completion rig would perform this test when it reopened the well to produce the oil the exploratory drilling had discovered. The decision was made to send the Schlumberger team home on the 11:00 a. m. helicopter, thus saving time and the $128,000 fee. As BP Wells Team Leader John Guide noted, â€Å"Everyone involved with the job on the rig site was completely satisfied with the [cementing] job. 22 At 8:52 a. m. , Morel e-mailed the Houston office to reiterate: â€Å"Just wanted to let everyone know the cement job went well. Pressures stayed low, but we had full returns on the entire job†¦We should be coming out of the hole [well] shortly. † At 10:14 a. m. , David Sims, BP’s new drilling operations manager in charge of Macondo, e-mailed to say, â€Å"Great job guys! † * * * * The rest of the day would be devoted t o a series of further tests on the well—positiveand negative-pressure tests—in preparation for â€Å"temporary abandonment. * During the positive-pressure test, the drill crew would increase the pressure inside the steel casing and seal assembly to be sure they were intact. The negative-pressure test, by contrast, would reduce the pressure inside the well in order to simulate its state after the Deepwater Horizon had packed up and moved on. If pressure increased inside the well during the negative-pressure test, or if fluids flowed up from the well, that would indicate a well integrity problem—a leak of fluids into the well.Such a leak would be a worrisome sign that somewhere the casing and cement had been breached—in which case remedial work would be needed to reestablish the well’s integrity. At 10:43 a. m. , Morel, about to leave the rig on the helicopter with the Schlumberger team, sent a short e-mail laying out his plan for conducting the day ’s tests of the well’s integrity and subsequent temporary abandonment procedures. Few had seen the plan’s details when the rig supervisors and members of the drill team gathered for the rig’s daily 11:00 a. m. pre-tour meeting in the cinema room. Basically [we] go over what’s going to be taking place for today on the rig and the drill floor,† said Douglas Brown, chief mechanic. 23 During the rig meeting, the crew on the drill floor was conducting the Macondo well’s positive-pressure test. 24 The positive-pressure test on the casing was reassuring, a success. 25 There was reason for the mood on the rig to be upbeat. Ross Skidmore, a subsea engineer explained, â€Å"When you run the last string of casing, and you’ve got it cemented, it’s landed out, and a test was done on it, you say, ‘This job, we’re at the end of it, we’re going to be okay. †26 At noon, the drill crew began to run drill pipe int o the well in preparation for the negativepressure test later that evening. 27 By now, it was a sunny afternoon. Transocean’s top men on the rig, Jimmy Harrell and Captain Curt Kuchta, were standing together near the helipad, watching a helicopter gently land. Kuchta had come in from New Orleans just * Temporary abandonment describes the process, after successful exploration, for securing the well until the production platform can be brought in for the purpose of extracting the oil and gas from the reservoir. Chapter One 5 5 that morning to begin his three-week hitch.Harrell was the top Transocean man on the rig when—as now—the well was â€Å"latched up. † Captain Kuchta, who had served on the Deepwater Horizon since June 2008, was in command when the vessel was â€Å"unlatched† and thus once again a maritime vessel. 28 The helicopter landed, the doors opened, and four Houston executives stepped out to begin their 24-hour â€Å"management visibili ty tour. †29 Harrell and Kuchta greeted the VIPs. 30 Two were from Transocean: Buddy Trahan, vice president and operations manager for assets, and Daun Winslow, a one-time assistant driller who had worked his way up to operations manager.BP’s representatives were David Sims, the new drilling operations manager (he had sent the congratulatory e-mail about the cement just that morning), and Pat O’Bryan, vice-president for drilling and completions, Gulf of Mexico Deepwater. 31 At about 4:00 p. m. , Harrell began his escorted tour of the Deepwater Horizon for the VIPs. 32 He was joined by Chief Engineer Steve Bertone, on board since 2003, and senior toolpusher Randy Ezell, another top man on the rig. 33 Like Harrell, Ezell was an offshore veteran. He had worked for 23 years with Transocean34 and was now the senior man in charge of the drilling floor.He had been on the rig for years. If any people knew this rig, they were Harrell, Bertone, and Ezell; they showed the V IPs around. At 5:00 p. m. , the rig crew, including toolpusher Wyman Wheeler, began the negativepressure test. 35 After bleeding pressure from the well, the crew would close it off to check whether the pressure within the drill pipe would remain steady. But the pressure repeatedly built back up. As the crew conducted the test, the drill shack grew crowded. 36 The night crew began arriving to relieve the day shift, and Harrell brought the VIPs through as part of their tour. 7 â€Å"There was quite a few people in there,† said Transocean’s Winslow. â€Å"I tapped Dewey Revette on the shoulder. He was the driller master. I said, ‘Hey, how’s it going, Dewey? You got everything under control here? ’ â€Å"And he said, ‘Yes, sir. ’ â€Å"And there seemed to be a discussion going on about some pressure or a negative test. And I said to Jimmy [Harrell] and Randy Ezell, ‘Looks like they’re having a discussion here. Maybe you coul d give them some assistance. ’ And they happily agreed to that. †38 Bertone took over the tour, wandering on to look at the moon pool, down toward the pontoons and the thrusters. 9 The two shifts continued to discuss how to proceed. It was about 6:00 p. m. Jason Anderson, a tool pusher, turned to Ezell and said, â€Å"Why don’t you go eat? †40 Ezell had originally planned to attend a meeting with the VIPs at 7:00 p. m. He replied, â€Å"I can go eat and come back. †41 6 National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling Anderson was from Bay City, Texas, and had been on the rig since it was built; he was highly respected as a man who understood the finer points of deepwater well control.This was his final shift on the Deepwater Horizon: he had been promoted to teaching in Transocean’s well-control school, and he was scheduled to fly out the next day. He told Ezell, â€Å"Man, you ain’t got to do that. Iâ⠂¬â„¢ve got this. Don’t worry about it. If I have any problems at all with this test I’ll give you a call. †42 â€Å"I knew Jason well,† said Ezell, â€Å"I’ve worked with him for all those years, eight or nine years†¦. He was just like a brother. So I had no doubt that if he had any indication of any problem or difficulty at all he would have called me. So I went ahead and ate. I did attend the meeting with the dignitaries. 43 Wheeler was â€Å"convinced that something wasn’t right,† recalled Christopher Pleasant, a subsea supervisor. Wheeler couldn’t believe the explanations he was hearing. But his shift was up. 44 Don Vidrine, the company man coming on the evening shift, eventually said that another negative test had to be done. 45 This time the crew members were able to get the pressure down to zero on a different pipe, the â€Å"kill line,† but still not for the drill pipe, which continued to show elevated pres sure. 46 According to BP witnesses, Anderson said he had seen this before and explained away the anomalous reading as the â€Å"bladder effect. 47 Whether for this reason or another, the men in the shack determined that no flow from the open kill line equaled a successful negative-pressure test. 48* It was time to get on with the rest of the temporary abandonment process. Kaluza, his shift over, headed off duty. 49 At 7:00 p. m. , after dinner, the VIPs had gathered in the third floor conference room with the rig’s leadership. According to BP’s Patrick O’Bryan, the Deepwater Horizon was â€Å"the best performing rig that we had in our fleet and in the Gulf of Mexico.And I believe it was one of the top performing rigs in all the BP floater fleets from the standpoint of safety and drilling performance. † O’Bryan, at his new job just four months, was on board in part to learn what made the rig such a stand-out. 50 Despite all the crew’s troubl es with this latest well,51 they had not had a single â€Å"lost-time incident† in seven years of drilling. 52 The Transocean managers discussed with their BP counterparts the backlog of rig maintenance. A September 2009 BP safety audit had produced a 30-page list of 390 items requiring 3,545 man-hours of work. 3 The managers reviewed upcoming maintenance schedules and discussed efforts to reduce dropped objects and personal injuries: on a rig with cranes, multiple decks, and complicated heavy machinery, errant objects could be deadly. 54 Around 9:00 p. m. , Transocean’s Winslow proposed they all go visit the bridge, which had not been part of their earlier tour. According to David Sims, the bridge was â€Å"kind of an impressive place if you hadn’t been there†¦[l]ots of screens†¦lots of technology. †55 The four * The precise content of this particular conversation is disputed and is considered more fully in Chapter 4.Chapter One 7 7 men walked outside. The Gulf air was warm and the water calm as glass. Beyond the glare of the rig’s lights, the night sky glimmered with stars. * * * * After concluding that the negative-pressure test was successful, the drilling crew prepared to set a cement plug56 deep in the well—3,000 feet below the top of the well. 57 They reopened the blowout preventer and began pumping seawater down the drill pipe to displace the mud and spacer* from the riser (the pipe that connected the rig to the well assembly on the seafloor below). 8 When the spacer appeared up at the surface, they stopped pumping because the fluid had to be tested to make sure it was clean enough to dump it in the Gulf, now that it had journeyed down into the well and back. By 9:15 p. m. , the crew began discharging the spacer overboard. 59 * * * * Inside the bridge, Captain Kuchta welcomed visitors Sims, O’Bryan, Trahan, and Winslow. 60 The two dynamic-positioning officers, Yancy Keplinger and Andrea Fleytas , were also on the bridge. 61 Keplinger was giving the visitors a tour of the bridge while Fleytas was at the desk station. 2 The officers explained how the rig’s thrusters kept the Deepwater Horizon in place above the well, showed off the radars and current meters, and offered to let the visiting BP men try their hands at the rig’s dynamic-positioning video simulator. 63 Winslow watched as the crew programmed in 70-knot winds and 30-foot seas, and hypothetically put two of the rig’s six thrusters out of commission. Then they put the simulator into manual mode and let Sims work the hand controls to maintain the rig’s location. Keplinger was advising about how much thrust to use.Winslow decided it was a good moment to go grab a quick cup of coffee and a smoke. He walked down to the rig’s smoking area, poured some coffee, and lit his cigarette. 64 * * * * Senior Toolpusher Randy Ezell left the evening meeting with BP feeling pleased at their praise à ¢â‚¬Å"on how good a job we had done†¦How proud they were of the rig. † He stopped in at the galley to get a beverage before continuing to his office. At 9:20, he called Anderson up on the rig floor and asked, â€Å"‘How did your negative test go? ’†65 Anderson: â€Å"It went good. . . . We bled it off. We watched it for 30 minutes and we had no flow. Ezell: â€Å"What about your displacement? How’s it going? † Anderson: â€Å"It’s going fine. . . . It won’t be much longer and we ought to have our spacer back. † * As described more fully in Chapter 4, a â€Å"spacer† is a liquid that separates drilling mud used during the drilling operations from the seawater that is pumped in to displace the mud once drilling is complete. 8 National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling Ezell: â€Å"Do you need any help from me? † Anderson: â€Å"No, man. . . . I’ve got this. . . . Go to bed. I’ve got it. † Ezell concluded: â€Å"Okay. 66 Ezell walked to his cabin. He had worked with Anderson since the rig came from the shipyard. He had complete confidence in him. â€Å"Jason was very acute on what he did. . . he probably had more experience as far as shutting in for kicks than any individual on the Deepwater Horizon. † So Ezell prepared for bed, called his wife, and then turned off the lights to watch a bit of TV before going to sleep. 67 * * * * Up on the bridge, O’Bryan was taking his turn on the simulator. 68 Sims had stepped to the opposite side of the bridge when he felt a distinct high-frequency vibration. 9 Captain Kuchta looked up and remarked â€Å"What’s that? † He strode to the port-side door and opened it. 70 Outside, O’Bryan could see the supply vessel Bankston glistening with what looked like drilling mud. 71 The captain shut the door â€Å"and told everybody to stay inside. †72 Then the re began a hissing noise. 73 * * * * BP’s Vidrine had headed back to his office to do paperwork. He had been there about 10 to 15 minutes when the phone rang. It was Anderson, who reported â€Å"they were getting mud back and were diverting to the gas buster. † Vidrine grabbed his hard hat and started for the drill floor.By the time he got outside, â€Å"[t]here was mud and seawater blowing everywhere, there was a mud film on the deck. I decided not to continue and came back across. †74 * * * * Down in Ezell’s cabin, he was still watching TV when his phone rang. It was assistant driller Steve Curtis calling, also from the rig floor. â€Å"We have a situation. †¦The well is blown out. . . . We have mud going to the crown. † Ezell was horrified. â€Å"Do y’all have it shut in? †75 Curtis: â€Å"Jason is shutting it in now. . . Randy, we need your help. † Ezell: â€Å"Steve, I’ll be—I’ll be right there. 76 He put on his coveralls, pulled his socks on, and opened the door to go across the hall to his office for his boots and hard hat. Once in the hall, â€Å"a tremendous explosion†¦ blew me probably 20 feet against a bulkhead, against the wall in that office. And I remember then that the lights went out, power went out. I could hear everything deathly calm. †77 * * * * Chapter One 9 9 Up on the main deck, gantry crane operator Micah Sandell was working with the roustabouts. â€Å"I seen mud shooting all the way up to the derrick. . . . Then it just quit. . . I took a deep breath thinking that ‘Oh, they got it under control. Then all the sudden the. . . mud started coming out of the degasser. . . so strong and so loud that it just filled up the whole back deck with a gassy smoke. . . loud enough. . . it’s like taking an air hose and sticking it in your ear. Then something exploded. . . that started the first fire†¦ on the starboard side of the derrick. †78 Sandell jumped up and turned off the crane cab’s air conditioner, worried that the gas would come in. â€Å"And about that time everything in the back just exploded at one time. It. . . knocked me to the back of the cab. I fell to the floor. . put my hands over my head and I just said, ‘No, God, no. ’ Because I thought that was it. †79 Then the flames pulled back from his crane and began to shoot straight up, roaring up and over the 20-story derrick. 80 * * * * Down in the engine control room, Chief Mechanic Douglas Brown, an Army veteran employed by Transocean, was filling out the nightly log and equipment hours. He had spent the day fixing a saltwater pipe in one of the pontoons. First, he noticed an â€Å"extremely loud air leak sound. † Then a gas alarm sounded, followed by more and more alarms wailing.In the midst of that noise, Brown noticed someone over the radio. â€Å"I heard the captain or chief mate, I’m not sure who, ma ke an announcement to the standby boat, the Bankston, saying we were in a well-control situation. †81 The vessel was ordered to back off to 500 meters. 82 Now Brown could hear the rig’s engines revving. â€Å"I heard them revving up higher and higher and higher. Next I was expecting the engine trips to take over. . . . That did not happen. After that the power went out. † Seconds later, an explosion ripped through the pitch-black control room, hurtling him against the control panel, blasting away the floor.Brown fell through into a subfloor full of cable trays and wires. A second huge explosion roared through, collapsing the ceiling on him. All around in the dark he could hear people screaming and crying for help. 83 Dazed and buried in debris, he pulled himself out of the subfloor hole. In front of him appeared Mike Williams, chief electronic technician, blood pouring from a wound on his forehead, crawling over the rubble, screaming that he had to get out. 84 * * * * Steve Bertone, the rig’s chief engineer, had been in bed, reading the first sentence of his book, when he noticed an odd noise. As it progressively got louder, it sounded like a freight train coming through my bedroom and then there was a thumping sound that consecutively got much faster and with each thump, I felt the rig actually shake. †85 After a loud boom, the lights went out. 86 He leapt out of bed, opening his door to let in the emergency hall light so he could get dressed. 87 The overhead public-address system crackled to life: â€Å"Fire. Fire. Fire. † 88 10 National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling The air smelled and tasted of some kind of fuel.A second explosion roared through, flinging Bertone across his room. He stood up, pulled on his coveralls, work boots, and hard hat, and grabbed a life vest. Out in the hall, clogged with debris from blown-out walls and ceilings, four or five men stood in shock. Berton e yelled to them to go out by the port forward or starboard forward spiral staircases and report to their emergency stations. He ran toward the bridge. 89 He went to the portside back computer, the dynamic positioning system responsible for maintaining the rig’s position. â€Å"I observed that we had no engines, no thrusters, no power whatsoever.I picked up the phone which was right there and I tried calling extension 2268, which is the engine control room. There was no dial tone whatsoever. † It was then that Bertone looked out to the bridge’s starboard window. â€Å"I was fully expecting to see steel and pipe and everything on the rig floor. † â€Å"When I looked out the window, I saw fire from derrick leg to derrick leg and as high as I could see. At that point, I realized that we had just had a blowout. †90 Fleytas hit the general alarm. 91 The alarm went off: â€Å"Report to emergency stations and lifeboats. † The rig crew heard:  "This is not a drill. This is not a drill. 92 Fleytas, realizing that the rig had not yet issued a Mayday call, sent it out. 93 Out in the dark of the Gulf, three friends on the 31-foot Ramblin’ Wreck were out on the water for a day of tuna fishing. 94 Around 9:45 p. m. , Bradley Shivers trained his binoculars at a brilliant light in the distance and realized it must be an oil rig on fire. 95 On their radio, they heard, â€Å"Mayday, Mayday, Mayday, this is the Deepwater Horizon. We are on fire. †96 At that moment they â€Å"heard and felt a concussive sonic boom. †97 The Ramblin’ Wreck headed to the scene, their first tuna outing of the year cut short. 8 Bertone was now back to his station on the bridge, thinking, â€Å"The engines should be starting up because in approximately 25 to 30 seconds two engines start up, come online. . . . There was still no power of any kind. No engines starting; no indication of engines starting. †99 At that moment, the water-tight door to his left banged open and he heard someone say, â€Å"The engine room ECR [engine control room] and pump room are gone. They are all gone. † Bertone turned around, â€Å"What do you mean gone? † The man speaking was so coated in blood Bertone had no idea who he was. Then he recognized the voice. It was Mike Williams.Bertone saw how badly lacerated Williams’s forehead was, grabbed a roll of toilet paper from the bathroom, pressed it on the wound to staunch the bleeding, and ordered, â€Å"Hold this here. †100 Then he went back to his station and looked at his screen. â€Å"There was still nothing, no engines starting, no thrusters running, nothing. We were still [a] dead ship. †101 He heard the water-tight door slam again and saw another man soaked in blood, holding a rag to his head, repeating, â€Å"I’m hurt. I’m hurt bad, Chief. I’m hurt real bad. † It was the voice of Brent Mansfield, a Transoce an marine engineer. Bertone pulled back Mansfield’sChapter One 11 11 hand holding a rag, saw the head wound, and ran over to the bridge door and yelled down to the life-vessel area, â€Å"We need a medic up here now. †102 * * * * After the explosion, Randy Ezell lay buried under the blown-out walls and ceilings of the toolpusher’s office. The room was dark and smoky, the debris atop him so heavy he could barely move. On the third try, adrenalin kicked in. â€Å"I told myself, ‘Either you get up or you’re going to lay here and die. ’† Pulling hard on his right leg, he extricated it and tried to stand up. â€Å"That was the wrong thing to do because I immediately stuck my head into smoke. . . I dropped back down. I got on my hands and knees and for a few moments I was totally disoriented. † He wondered which way the door was. He felt air. He crawled through the debris toward the door and realized the â€Å"air† was methane. He could feel the droplets. He was crawling slowly atop the rubble in the pitch-black hall when he felt a body. 103 Ezell then saw a bobbing beam of light. Stan Carden, the electrical supervisor, came round the corner. Carden had a light that bounced off shattered walls and collapsed ceilings in the pitch-black corridor, giving glimpses into rooms on each side wrecked by the power of the blast. 04 Stumbling into what was left of the hall was Offshore Installation Manager Jimmy Harrell, who had been in the shower when the rig exploded;105 he had donned coveralls, and now was groping his way out of what was left of his room. â€Å"I think I’ve got something in my eyes,† Harrell said. He had no shoes. â€Å"I got to see if I can find me some shoes. †106 Carden and Ezell tugged debris off the man they now recognized as Wyman Wheeler. Chad Murray, Transocean’s Chief Electrician, also appeared in the hall with a flashlight, and was immediately dispatched to fi nd a stretcher for the injured man. 07 Believing it would save time to walk Wheeler out, Ezell slung Wheeler’s arm around his shoulder. Wheeler groaned, â€Å"Set me down . . . . Y’all go on. Save yourself. †108 Ezell said, â€Å"No, we’re not going to leave you. We’re not going to leave you in here. †109 Just then, they heard another voice from under the rubble: â€Å"God help me. Somebody please help me. † Near the ruins of the maintenance office the flashlight picked out a pair of feet jutting from the rubble. It was the visiting Transocean manager, Buddy Trahan, badly injured. By now Murray was there with a stretcher.Ezell, Carden, and Murray dragged away the remains of ceilings and walls trapping Trahan and loaded him on the stretcher. Carden and Murray carried him through the smoke and dark to the bow of the rig and the lifeboats. 110 Outside, the derrick fire roared upward into the night sky, an inferno throwing off searing hea t and clouds of black smoke. The blinding yellow of the flames was the only illumination except for the occasional flashlight. The rig’s alarms were going off, while over the public announcement system Keplinger yelled, â€Å"THIS IS NOT A DRILL! †111 As the 12National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling crew struggled out of the blasted quarters, galley, and offices, in various states of undress, they converged in a chaotic and panicked mass at the lifesaving vessels, putting on life vests. 112 Sandell, the gantry crane operator, had escaped and come around the port side of the deck to the life vessels. â€Å"It was a lot of screaming, just a lot of screaming, a lot of hollering, a lot of scared people, including me, was scared. And trying to get people on boats. It was very unorganized—we had some wounded we was putting in the boat.Had people on the boat yelling, ‘Drop the boat, drop the boat,’ and we still didn ’t have everybody on the boat yet. We was still trying to get people on the boat and trying to calm them down enough to—trying to calm them down enough to get everybody on the boat. And there was people jumping off the side. We was trying to get an accurate count and just couldn’t get an accurate count because people were just jumping off the boat. † 113 * * * * On the Bankston, Captain Alwin J. Landry was on the bridge updating his log when his mate noticed the mud. Landry stepped out and saw â€Å"mud falling on the back half of my boat, kind of like a black rain. He called the Deepwater Horizon bridge to say, â€Å"I’m getting mud on me. † Landry instructed his crew to get inside. The Deepwater Horizon called back and told him to move back 500 meters. 114 A crew member noticed a mud-covered seagull and egret fall to the deck. 115 Shortly after, Landry saw the rig explode. Before the ship could move away, his crew had to detach the long mu d transfer hose connecting them to the rig. 116 As they scrambled to disconnect, the Bankston slowly moved 100 meters back, then 500 meters. As the rig went dark, and secondary explosions rocked the decks, the Bankston turned on its searchlight.Landry could see the Deepwater Horizon crew mustering by the portside life vessels. â€Å"That’s when I seen the first of three or four people jump to the water from the rig. †117 One of those was Gregory Meche, a compliance specialist. After five minutes of the chaos around the lifeboats, and a series of large explosions, he headed down to the lower deck. He jumped into the water. 118 Antonio Gervasio, the Bankston’s relief chief, and two others began launching the ship’s fast rescue craft. 119 Within a minute or two of the explosions, they got the boat lowered into the water, and noticed how calm the Gulf was. 20 â€Å"I saw the first person jump in the water. So I told one of the guys to keep an eye on him. â⠂¬ 121 The rig life jackets were reflective, and as the fast craft made its first sweep round from one side of the burning rig to the other, they hauled Meche and two or three others out of the water. 122 * * * * Back on the rig, Transocean’s Winslow had made his way from the coffee shop to the lifeboats, surviving the second blast’s wave of concussive force, which blew in the Chapter One 13 13 corridor’s walls and ceilings. On the deck, a firestorm of flames roared in the night sky above the derrick. 23 Winslow directed the dazed crew toward the covered life-saving vessels, instructing the first arrivals, â€Å"We need to make sure we get a good head count. † Seeing Captain Kuchta standing at the starboard bridge door, he ran up, and said people should evacuate. Kuc

Nescafe and Social Media

and the Social Media by Tanya Senkovska 11114117 Stella Valcheva 11114120 Teodora Gocheva 11114125 1 CONTENTS Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 Theory Marketing Concepts †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 Social Media †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 5 Social Media Marketing †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 6 Nescafe The Brand †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 7 Nescafe Marketing Analysis (theory implementation) †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦9 Adv ertising †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦12 Corporate Social Responsibility †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦13Nescafe and the Social Media Social Media tips and rules †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 13 Nescafe`s Facebook Profile †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦15 Nescafe on Twitter †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 16 Nescafe – Youtube Channel †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 17 Nescafe Ad Campaigns Around the World †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 18 Conclusion †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 19 References †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦20 2 INTRODUCTION Aim of our project: The main purpose of our project is to define the social media impact on our product.We explore the principal concepts and and tools of successful marketing strategy, from market segmentation and product positiong to designing of distribution channels and communications strategy . To thrive in a highly competitive marketplace, companies must develop marketing plans that align them with their customers and differentiate them from their competitors. Without integrated and innovative strategies, corporate leaders will struggle to create value and generate growth. The reason for choosing NesCafe as a discussing brand is because of the wide range of activities in which the company is involved.Their huge campaigns, reflected in all kinds of social media, are an attempt to create a global brand positioning for Nescafe’s portfolio of coffee brands that explored how the catalytic nature of coffee made the world a more interesting and richer place. The opportunity of interacting among pople gives the customer a fresh insight about the competitive advantage and potential of the unique goods and services your organization offers. 3 THEORY Marketing concepts MARKETING ENVIRONMENT Every company operates under particular conditions that influence its ability to ser ve customers.The microenvironment consists of actors close to the company, such as suppliers, intermediaries – combining efforts to create value; competitors – trying to serve customers better; publics may have impact on firm`s performance; customers – the most important. The macroenvironment includes larger forces that affect the whole internal environment. Those are beyond the control of a single company and thus they shape the opportunities and threats for the business – demographic, political, economic, cultural, societal, technological.STP ANALYSIS The strategic marketing planning process flows from a mission and vision statement to the selection of target markets, and the formulation of specific marketing mix and positioning objective for each product or service the organization will offer. The marketing logic followed should present the organization as a value creation and delivery sequence, resulting in profitable customer relationship. In its fir st phase, choosing the value, the strategist â€Å"proceeds to segment the market, select the appropriate market target, and develop the offer's value positioning.The formula – segmentation, targeting, positioning (STP) -is the essence of strategic marketing. † (Kotler, 1994, p. 93). SEGMENTATION Market segmentation consists of the partition of the market to distinct groups with different needs and wants with the purpose of selecting one or more market segments which the organization can target through the development of specific marketing mixes that adapt to particular market needs. TARGETING From the determined market segments a company chooses a target market – group of customers that the business has decided to aim its marketing efforts at.It is the one for which the firm could create maximum customer value. POSITIONING Positioning of the product is determining the place it takes in consumers` minds. Efforts are put to differentiate the product from competit ors` products, so that it could be accepted as unique. 4 MARKETING MIX Thus the overall marketing strategy is outlined. The next step is to choose the most appropriate marketing mix – the 4Ps that will bring the company the best response to its wants.Product – the portfolio of goods-and-services the company offers to the target market Price – amount of money to be paid, adjusted to the current competitive and economic situation, in line with buyer`s perceptions of the product`s value. Place – all the activities that make the product available to target consumers, including intermediaries, distributors, sellers. Promotion – all the activities that present the unique characteristics of the product and persuade the customer to buy it. SWOT ANALYSIS The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations.SWOT is an acronym for Strengths, Weaknesses, Opportunities, Thr eats. SWOT analysis headings provide a good framework for reviewing strategy, position and direction of a company or business proposition. Use SWOT analysis for business planning, strategic planning, competitor evaluation, marketing, business and product development and research SOCIAL MEDIA Social media are forms of electronic communication (as Web sites for social networking and microblogging) through which users create online communities to share information, ideas, personal messages, and other content.Andreas Kaplan and Michael Haenlein define social media as â€Å"a group of Internet-based applications that build on the ideological and technological foundations of Web 2. 0, and that allow the creation and exchange of user-generated content. Furthermore, social media depend on mobile and web-based technologies to create highly interactive platforms through which individuals and communities share, co-create , discuss, and modify user-generated content. It introduces substantial and pervasive changes to communication between organizations, communities and individual.Classification By applying a set of theories in the field of media research (social presence, media richness) and social processes (self-presentation, self-disclosure) Kaplan and Haenlein created a classification scheme in their Business Horizons (2010) article, with six different types of social media: 5 ? ? ? ? ? ? collaborative projects (for example, Wikipedia), blogs and microblogs (for example, Twitter), content communities (for example, YouTube and DailyMotion), social networking sites (for example, Facebook), virtual game worlds (e. g. , World of Warcraft), and virtual social worlds (e. g. Second Life)Technologies include: blogs, picture-sharing, vlogs, wall-postings, email, instant messaging, music-sharing, crowdsourcing and voice over IP,to name a few. Social media in business There is an increasing trend towards using social media monitoring tools that allow marketers to search, track and analyse conversation on the web about their brand or about topics of interest. This can be useful in business management and campaign tracking, allowing the user to measure return on investment, competitor-auditing and general public engagement. There are valuable types of information that show the engagement needs of the social media audience.For instance, LinkedIn users are thought to care mostly about identity, reputation and relationships, whereas YouTube’s primary features are sharing, conversations, groups and reputation. Many companies build their own social containers that attempt to collect more concrete information for their brands. On the other hand social media containers such as Google+ or Facebook and also Twitter could provide a business with unbiased, realistic, honest opinions and attitudes, as they are not specially stated for marketing purposes, but for friends or just self-expression.Company faces significant challenges in dealing with viral negative s entiment directed at organizations or individuals on social media platforms, which may be a reaction to an announcement or event. [15] SOCIAL MEDIA MARKETING Social media marketing refers to the process of gaining website traffic or attention through social media sites. Social media marketing programs usually center on efforts to create content that attracts attention and encourages readers to share it with their social networks.A corporate message spreads from user to user and presumably resonates because it appears to come from a trusted, third-party source, as opposed to the brand or company itself. Hence, this form of marketing is driven by word-of-mouth, meaning it results in earned media rather than paid media. Social media has become a platform that is easily accessible to anyone with internet access. Increased communication for organizations fosters brand awareness and often, improved customer service. Additionally, social media serves as a relatively inexpensive platform fo r organizations to implement marketing campaigns. Social networking websites allow individuals to interact with one another and build relationships. When products or companies join those sites, people can interact with the product or company. That interaction feels personal to users because of their previous experiences with social networking site interactions. Social networking sites and blogs allow individual followers to â€Å"retweet† or â€Å"repost† comments made by the product being promoted. By repeating the message, all of the users connections are able to see the message, therefore reaching more people.Social networking sites act as word of mouth. Because the information about the product is being put out there and is getting repeated, more traffic is brought to the product/company. Through social networking sites, products/companies can have conversations and interactions with individual followers. This personal interaction can instill a feeling of loyalty i nto followers and potential customers. Also, by choosing whom to follow on these sites, products can reach a very narrow target audience.Social networking sites also include a vast amount of information about what products and services prospective clients might be interested in – marketers detect buying signals, such as content shared by people and questions posted online. Understanding of buying signals can help sales people target relevant prospects and marketers run micro-targeted campaigns. In the context of the social web, engagement means that customers and stakeholders are participants rather than viewers. Social media in business allows anyone and everyone to express and share an opinion or an idea somewhere along the business’s path to market.Each participating customer becomes part of the marketing department, as other customers read their comments or reviews. The engagement process is then fundamental to successful social media marketing. NESCAFE HISTORY Nes cafe is a brand of instant coffee made by Nestle. It comes in many different product forms. The name is a portmanteau of the words â€Å"Nestle† and â€Å"cafe†. It was in 1930 that the Brazilian government first approached Nestle to find a way of making a quality cup of coffee simply by adding water, whilst retaining the coffee’s natural flavour. Sounds simple, right? Wrong.It took seven years of research to perfect. Yes, seven years of blood, sweat and tears went into the first cup of NESCAFE (not literally though). And so, in the spring of 1938, NESCAFE was first launched in Switzerland. The rest of the orld soon followed. 7 Understandably, the Second World War hindered NESCAFE’s progress. But all was not lost. In fact, the American forces played a key role in re-launching NESCAFE in Europe when it was included in their food rations. By the 1950s, coffee had become cool. And everywhere you went you wanted to find your favorite blend. So, NESCAFE fans g rew in abundance.NESCAFE continued working to perfect great tasting coffee and in 1965, introduced the first freeze-dried soluble offering – Gold Blend. And just a few years later, we invented a new technology to capture more aromas and flavors from every single coffee bean. Then in 1994, we created the ‘full aroma' process, making the unique quality and character of NESCAFE even more distinctive. Since then, NESCAFE has remained firmly at the forefront of sustainable coffee farming and product innovations worldwide. With the continual introduction of new blends, we aim to satisfy coffee lovers just like you.PORTFOLIO Nescafe`s products are divided into two main categories: Coffee Products and Coffee Machines. Each product is separately introduced by its own characteristics and each is distinguished by its purpose and most appropriate usage. Nescafe Classic – Rich and full flavored. Nescafe 3in1 – Sweet and Creamy. Nescafe Gold Blend – Smooth taste, rich aroma. Nescafe Green Blend – Roasted and unroasted coffee beans. Nescafe Cappuccino – Light and frothy. The full list of products is different for the each of the countries, in which they are offered, as suggested by Nescafe`s main global strategy – â€Å"think globally, act locally†.The Coffee Machines DOLCE GUSTO are new addition to the company`s portfolio. They have become popular and successful products ever since their introduction, mainly due to professional advertisement. 8 MISSION STATEMENT Nescafe is part of the giant Nestle, so it adopts the mission of the whole corporation, namely: â€Å"Good Food, Good Life† However Nescafe products play vital role due to its high performance in finance. The goal is to make Nescafe consumers` prefer choice throughout by giving them best experiences with new tastes of Nescafe products.To bring NESCAFE to people around the globe, providing a â€Å"1 NOW 1 NESCAFE† to satisfy every aspect of n eeds. General Objective: The objective is to be the leader in Nutrition, Health and Wellness, and the industry reference for financial performance, trusted by all stakeholders. COMPANY`S STRATEGY â€Å"We are seeking to achieve leadership and earn that trust by satisfying the expectations of consumers, whose daily choices drive our performance, of shareholders, of the communities in which we operate and of society as a whole.We believe that it is only possible to create long- term sustainable value for our shareholders if our behaviour, strategies and operations are also creating value for the communities where we operate, for our business partners and, of course, for our consumers. We call this â€Å"Creating Shared Value. † NESCAFE`S MARKETING Analysis Marketing Environment Microenvironment Nescafe helps and supports the agriculture/producers of coffee beans, thus creates close relationship with its suppliers. Uses various types of advertising, promotions, research tools, social media and websites to maintain relationship with its customers as well.One of the most successful are the games, which take place periodically all around the world. In order to please the public Nescafe encorporates a lot of social responsibility actions, environmental friendly practices and values highly the quality of its products. 9 There are also other brands that offer instant coffee, but at least in Europe Nescafe is far ahead its competitors. While in America it lags behind Maxwell House – the instant coffee of Kraft Foods. Macroenvironment The macroenvironment of Nescafe can not be generally determined as it is different in the different countries.However Nescafe successfully copes with this situation adopting the flexible strategy – â€Å"think globally, act locally†. STP ANALYSIS SEGMENTATION AND TARGET GROUPS Nescafe uses mainly age segmentation and targets mainly young people with very active lifestyle, who might need additional energy or who do not have time to prepare coffee. 1. Working Adults (Primary) 2. Students-University, Academy, High School (Secondary) 3. Senior Citizens (Third party) Geographical segmentation is also part of the Nescafe global strategy.They alter it according to geographical and cultural particularities of the region. Here are some other factors Nescafe uses to segment the market and target its customers more efficiently: Young adult cafe culture segment: They target this segment with their new latte range, along with the advertising, sales promotion and the competition to win the lounge seen in the advertisements. Upscale, quality driven, higher income consumers: Their Nescafe Gold range and exotic tastes such as Alta Rice are aimed towards such consumers, where the price and quality are higher than that of the general blends.Middle-class consumer (no age target): Nescafe targets such a large segment with their Blend 43, Mild Roast and Espresso products. The consumer gets an economical benefit , as well as a quality product. POSITIONING Most of the campaigns call on â€Å"wake up† or â€Å"wake up 5minutes earlier†, so it tries to occupy its customers` first thoughts in the morning. Another part of the campaign aiming at teenagers and the youth stresses on the â€Å"cool† appearance with a cup of Nescafe (for example the â€Å"unexpectedly good combination 3 in 1† ad in Bulgaria).The brand also wants its customers to think of Nescafe whenever they feel tired or with lower level of energy, e. g. at the end of the work day or after sports activities. In all the presentations of the brand the cup of coffee is shared by colleagues, friend, couples, so that it could be accepted as symbol of shared happiness. A lot of efforts are put in order to be accepted as healthy products of high quality. 10 MARKETING MIX Product – Nescafe is the world‘s leading brand of coffee. Its portfolio holds variety of Coffee Products, different for each targ et group.Promotion – Promotion is playing very important role in boosting up the product image and creating demand. Nescafe is heavily promoted and that Elements: Advertising, Personal Selling, Sales Promotion, Publicity. As one of the largest companies in the world, Nestle is able to launch extensive advertising campaigns around the world. Place –The company fucuses on placing its product at different markets. Available to all retailer stores, cafes, restaurants, now even vending machines. Price – it offers quality products at a reasonable price.It uses a premium pricing strategy to signal its quality and strong brand attributes. SWOT Strengths ? Broad geographic coverage ? Global leader in instant coffee ? World number one in other hot drinks ? Strong brand portfolio ? High levels of research and development expenditure ? Solid financial base ? Capacity to pass on costs Weaknesses ? Reliance on mass market ? Limited presence in tea ? Increasing bias towards lo w-margin products ? Bias towards caffeine-based products ? Negative ethical image Opportunities ? Strong growth forecast in Asia-Pacific ? The premium trend ?The health trend ? Ethical consumerism ? Cross-branding Threats ? Sluggish prospects in developed markets ? Coffee machine competition ? Rising costs ? Competition from beyond hot drinks 11 ADVERTISING Nescafe employs a â€Å"think globally, act locally† marketing strategy. According to Keegan and Green, â€Å"Nescafe Coffee is marketed as a global brand, even though advertising messages and product formulation vary to suit cultural differences† . Nescafe’s marketing campaign is global in the sense that the company uses the same symbols worldwide, such as the renowned coffee mug and Nescafe logo.However, Nescafe tailors its campaigns to suit diverse consumer attitudes and preferences. For example, marketing advertisements targeting different locations and regions often are different in terms of copy (messag e and language) and advertising appeal (rational vs. emotional). For the emotional appeals, Nescafe is trying to tug at the heartstrings of coffee drinkers. The emotional appeals are similar in that Nescafe wants to be a part of their consumer’s day. For the most part these advertisements do make sense when compared to the cultural factors of each specific country.In different countries the Company uses diverse methods for advertisement and appeal to customers. For example comparison between Germany, USA and Argentina was made according to which in Argentina the ad has an emotional appeal rather than rational; it seeks to associate drinking a Nescafe with having a pleasant day that coincides with your pleasurable coffee? drinking experience. As Germans place great emphasis on structure and routine, Nescafe’s placement of the product as being used during a specific moment during the day (the â€Å"break†) makes sense.Germans are typically busy people; therefore p ositioning the product as a respite from the hectic daily schedule is well done; even the simplicity of the ad adds to the feeling of tranquility and getting away from the rigors of every? day life. Nescafe is promoting the visual of the individual packet in order to appeal to the typical highly individualistic American, as in this package is made â€Å"just for you†. Geared towards people that are on? the? go, the ad appeals to the American that is constantly moving and views time as indispensable and finite.Nescafe is trying to reverse the notion that â€Å"you get what you pay for† by offering the same level of quality for a lower price. Despite these strategies implemented in different countries, there are some aspects that are not especially relevant and we have recommended some changes. Nescafe is seeking to convince consumers, especially young ones, to see instant coffee as a 100% natural product. To do this, Nestle shot the ad in Brazil – the country tha t in 1930 challenged it to develop coffee that could be made by just adding water. Nescafe instant coffee was invented in 1938.According to the company, the plan is to â€Å"reconnect consumers with the journey from the plant to jar† and focus on the origins of its coffee. When brands and their creative agencies agree, in full or in part, about the breadth of the cultural influence and the social value of music, they need to make a long-term commitment to developing a â€Å"music strategy†. Nescafe is a great example for this, because most of their advertisements include music. In this way they connect on an emotional level ,which is central to consumer engagement and music offers a multitude of paths to accomplish this. 2 CORPORATE SOCIAL RESPONSIBILITY The Nescafe Plan: Creating Shared Value â€Å"Responsibility Goes Beyond the Cup† Paul Bulcke, Neslte CEO states the ambition: â€Å"Nescafe gives its name to this global initiative, which creates value across the coffee supply chain, from farmers, to consumers, to us. † Nescafe works hardly on its image – a really responsible brand, caring of the future generations, believing in the benefits arising from sustainable development. It emphasizes on the Nescafe Plan, which is â€Å"a global initiative that supports responsible farming, production and consumption. To win customers` and shareholders` loyalty the brand takes some actions: ? ? ? ? NESCAFE works with partners to support farmers NESCAFE is working to reduce its impact on the environment. NESCAFE promotes environmental responsibility, creates shared value for the people whose lives they influence NESCAFE makes it personal and acts as promoter of preserving the environment: â€Å"how you can help to reduce your enviromental impact? † In addition Nescafe pays much attention on valuable concepts as â€Å"health† and â€Å"quality†, instead of relying on lower prices.Thus it completes the position of the products as environmentally friendly produced, with high nutrition characteristics and suitable for healthy lifestyle. Moreover its customers believe that they contribute to huge, positive, social impact – grounds for lasting, loyalty and close relationship. NESCAFE AND THE SOCIAL MEDIA SOCIAL MEDIA TIPS AND RULES Is social media important ? ? ? ? ? ? 1 billion people on facebook Social media has become the #1 activity on the web 53 % of people on twitter recommend products in their tweets 90 % of consumers trust peer recommendations Only 14 % trust ads 13 Facebook –a few key things ? ? ? ? ?Best social media platform to drive a purchasing action Not a medium to push business spam Use it to meet,build audience and brand Slow build before you invite the masses 90 % of those who â€Å"like your page will never return to it. Engagement ,not likes , is the key General tips to gain more attention to your page on Facebook ? ? ? ? ? Figure out what your expertise is and how that relates to your product Always treat it like a conversation Have an incentive to join, return and participate Try new things, new topics , new wording , new times A little bit of planning goes a long way Different ways to Build your following ? ? ? ? ? In person Contests Paid advertising Other social media networks Mutual benefit community Through existing members (engagement) Drive engagement –ask your audience simple questions to start a conversation and drive engagement –yes/no ;true or false ; select your favourite ;opinion . another way is through photos (relation to your product, branding without a hard sell , memes and quotes ) Things to limit that can negatively affect the image of your company ? ? ? ? ? Linking accounts Pushing out information Posting once a month/5 times a day Asking people to follow you just to increase your numbers Text heavy posts-keep it short,informative 4 NESCAFE`S FACEBOOK PROFILE Nescafe Bulgaria maintains very active Faceboo k page, with the impressive numbers: 6 417 020 likes & 73 634 talking about this. Globally there are a number of facebook pages divided geographically (for certain country) and for the different products or for different events and campaigns that Nescafe supports. Generally in each man can find: ? ? Basic information could be found on each of the profiles as well as more detailed for the specific one. Many of the profiles hold memorable phrases or mission statements. â€Å"To wake you up and fill you with energy for the upcoming challenges of every ay! † â€Å"We are combining pleasure and health benefits† ? A fan can also find Nescafe`s history along with some interesting facts about the brand. â€Å"The boom of instant coffee was during the World War II. Nescafe was very convenient form of coffee and inseparable part of soldiers` nutrition. Strangely this is the time when it becomes popular in Europe and later on globally. † ? ? Portfolio of Nescafe products U ploaded videos – mainly ads and funny animations, just to entertain the viewer The whole social media promotes it as THE FAVOURITE coffee/ soft drink/hot drink.The campaigns involve the concept of â€Å"shared happiness† showing Nescafe in the company of people who love each other – family, friends, couples. To engage fans` attention Nescafe organizes a lot of games, which are promoted through facebook. The â€Å"Coffee Cup 3in1† SMS game in Bulgaria was very successful in 2012 and from the social network people find out that the same will start again on the 22th of April 2013 too. Another recent one was â€Å"Inspiring moments†, it has already finished and there is post with photo of the winner and his award – an excursion to Austria.Nescafe uses Facebook to increase the Engagement as its posts are not simply informative, but in the form of questions or easy riddles. It seeks opinions and responses. Just a â€Å"like† is not enough, it wants people to talk about the products, to increase popularity and Word-ofMouth effect. For this purpose it offers variable opportunities: to create NesChristmas cards; NesWishes cards; to draw NesLucks. 15 Of course it publishes information for big events – the one Nescafe is sponsor of or significant for the brand itself. The last one is Nescafe`s 75th Birthday.It prompted Facebook fans to post wishes by special application. In addition it posted some photos of its promotion campaign in the center of Sofia, where they give to passers-by free cup of 3in1 coffee. The slogan was â€Å"75 years creating memorable moments†. In Bulgaria Nescafe is strong supporter of an innovative type of music – the beatbox. The company has organized annual beatbox championship with award: â€Å"The Best Beatboxer in Bulgaria†. The winner has the chance to take compete in the World Championship. Of course a Facebook page holds all the information such as ideos, interview s with participants, articles etc. As 3in1 is the most popular, easy to use and beloved by youngsters product, it has many profiles. More games and little competitions such as: fan of the month; inspiring moments, the award was a journey to Austria (picture with the winner posted). There fans can find out about the relationship with the biggest music festival in Bulgaria – Spirit of Burgas and how one can win free entrance tickets. As a whole Nescafe`s Facebook page promises successful further development. It is proof of consumer`s loyalty judging by all the posts and super-frequent fan`s activity.Nescafe includes all the recommendable points. It entertains the followers with many games as â€Å"Connect the Dots† or â€Å"How many red Nescafe cups can you find in the picture? † Urges likes by animating The Cup begging to become red or expressing hope that it will gain many birthday wishes. Very often it asks question like: â€Å"Which is you favorite†¦Ã¢â‚ ¬  or â€Å"Which of those do you prefer? † It is creating more personal relationship through opportunities to publish NesCards with wishes for friends or family and is constantly seeking for opinions and recommendations from its fans.NESCAFE ON TWITTER Although Twitter, especially in Bulgaria, is not so common used social media, it still has an impact on the customer. With around 7000 followers and 700 tweets, Nescafe official fan page provides the insights we get from the advertising. By using social media, producers interacts with customers better and can easily understand their needs and wants. It gives the opportunity both sides to be up-to-date with all new trends, changing every second.Short inquires towards users and questions, concerning the product give the users freedom to share their opinions, which leads to improving the qualities of Nescafe and better integrating to the marketing environment . By sending messages up to 140 letters Nescafe official page emphasiz es mainly on the good start of the day with a cup of coffee. Most of their posts are made in the morning and bring cheerful and optimistic upbeats. Funny comments or witty pictures consisting of key words such as „coffeeâ€Å" of well-known Nescafe logo are hidden marketing tricks, providing the customer with incentives to choose the exact product. 6 NESCAFE – YOUTUBE CHANNEL Currently, YouTube is visited by more than 15 million internet users per day and around 100 million videos are being viewed each day. These guerrilla marketing â€Å"live ads† would also be recorded and edited into YouTube videos, explaining the message of â€Å"life without compromise† and the connection to the convenience and great quality of NESCAFE products. The videos from all the â€Å"live ads† would be uploaded to the NESCAFE YouTube channel called â€Å"NESCAFE – life without compromise†.The YouTube channel would then be distributed and shared using soci al media, by NESCAFE and consumers. These videos will also be shared through NESCAFE’s Facebook page in order to leverage on the high volume of traffic it already experiences. You should keep in mind that Using YouTube as part of your business’s social media marketing strategy can assist you in getting the type of visitors that you want. YouTube users are generally better leads because they have generally already seen a video you have posted, and won’t click on your links unless they like what they see.In Youtube brands need to produce videos that offer true value to their intended audiences. This softer sell defines YouTube’s role in your marketing strategy. This soft sell comes in the form of the information or instruction you provide. Perhaps that’s a video newscast where you talk about industry news or technical developments; perhaps it’s a how-to video that shows people how to use your product to do something useful. In any case, viewer s watch the video because it provides valuable information; what they retain is a sense of your brand or company as a source of authority on the topic at hand.Research has shown that video marketing has become one of the most vital methods of marketing on the net and that it is starting to replace many other forms of marketing. Instead of using just any marketing tool, many marketers are now opting for using video as their preferred marketing tool. YouTube videos are often placed on content-aggregating sites and blogs related to the brand ; those pages use scripts to get the links to the newest videos on the YouTube and have them embedded automatically; getting included on some sites with high traffic can increase video views.YouTube referrals – surprisingly many people are spending hours watching random videos on that site 😉 if you will set proper tags to your video, they will get more traffic, and again: more traffic means more people will get to know the product! R ecommendation Youtube As Youtube’s influence is growing and the site’s capabilities can enhance the product performance ,it has to take major part in the Nescafe’s Advertising campaign in the social medias. It would be beneficial to post more often videos with customer’s opinion and news regarding future events –with interviews of the organisators etc.Another good strategy is to promote the Youtube channels more on their Facebook page so that more people will engage in commenting and if there is a poll ,for example , the company will receive more feedback on their future projects. More fun and interactive games or videos can be uploaded in order to gather more attention and inspire engagement . Good ideas for Nescafe will be to make an video contest . Try offering a reward for the contest online and advertise it everywhere you can. People will follow you and will fill out their information if it means they might win a contest. 17NESCAFE AD CAMPAIGM S AROUND THE WORLD Nescafe has vast amount of supporters through the social media (Facebook, Twitter,Youtube). It has the power and ability to create and expand its customers’ base and in this way promote the product to large number of people with little resources. There are different Facebook pages for the various countries and the way the product is presented in each has some variations depending on the cultural and economical differences between the various countries. There are many examples for campaigns launched or promoted via Social media and the result is astonishing.The probability that certain marketing campaign to be successful is greater if social media is involved, it makes the process for gathering information and receiving feedback easier and more convenient. The marketing power of Nescafe is great and it has achieved much more results thanks to its games, campaigns or quizzes that it has launched on the internet. There are many examples for the impact of socia l media on the marketing campaigns is evident. For example when a certain campaign going to take place , on Facebook or twitter Nescafe posts interesting photos or questions in order to capture the interest of its potential customers.It also relies on â€Å"word of mouth â€Å" ,hoping that when more people know about certain event they can spread the word ,leading to wide amount of people participating in the event. Another strategy Nescafe uses is to promote its new products via interesting or innovative ways. The secret to an entertaining social media campaign is to make the campaign relevant, have a character the target audience can relate with, and reduce brand fatigue by encouraging participation.One example is when Nescafe was searching for a cool way to reveal its newly designed coffee tin, so it came up with a creative Facebook campaign that traded beans for ‘likes. ‘ First, they took a picture of a glass container containing nothing but the new Nescafe tin. T hen they took the same photo after filling the container with coffee beans. They removed coffee beans and continued shooting until the tin was finally revealed. This sequence played out on Facebook based on the number of ‘likes' they received.Every time a Facebook user ‘liked' the page, more beans were removed. On their Bulgarian Facebook page , often in the morning there is inspirational quote so that the more of the users log in their Facebook accounts they will Receive the news in their news Feed and they can share or comment so in that way more users will see it. 18 CONCLUSION Social media possesses incredible influential power, and since the advent of the Internet it's evolved from a simple way for people to keep in touch into a massive global network connecting organizations, communities and people.Social media is the easiest, fastest and most explosive way to transmit and receive information! And best of all – absolutely anyone can take advantage of it. Act ive membership of the most frequented social network is now over one billion people, one out of every seven people on earth is on Facebook! With the global population still rapidly growing, it’s become abundantly clear that social media is no passing fad either. Its influence is remarkable. Small businesses and large corporations alike have tapped into this influence to reach new customers and generate real, honest communication.The best advice for every company is to embrace the ubiquity of social media and use its power to better yourself, your business, or cause. Relating to our finding about Nescafe’s global marketing strategy, the ways it is presented in the social media , it is evident that Nescafe is investing a lot of efforts and financial means to keep up with the changing consumer need and wants. It is irrevocable that with their ad campaigns in various media such as Facebook and Twitter more people will know about their new developments and their consumer ba se will widen in a much greater speed.Using different techniques and new interactive methods for gathering attention is good way to show their commitment and inspire engagement . Another good platform mentioned is Youtube, with its 800 million active users monthly the power of broadcasting is undeniable, which is used by Nescafe for sharing videos of previous ads ,posting interactive videos and acquiring vast amount of comments and recommendations from active their users. Another great techniques which is frequently used in Facebook pages is to promote every day the products’ by showing interesting facts, quotes that can gather attention via sharing or commenting by the users.The different analyses(Swot , Pest ) can prove the marketing power of Nescafe in the coffee industry also outline its potential competitors ,the focus areas where more attention should be paid and the strengths of its brand image. The strong brand image of Nescafe has been built through the years, undoub tedly it has wide consumer base thanks to its great variety of products, which can satisfy the need and wants of a large number of people, differing in age, profession, gender and country of origin.Marketing is changing rapidly due to rapid change in technology and Nescafe should strive to achieve greater power in the social media with applying new and innovative strategies to boost the company’s performance, financial state and image . 19 References: www. nestle. com www. nescafe. bg www. nescafe. com http://www. youtube. com/user/nescafe http://www. facebook. com/Nescafe. BG? fref=ts http://www. facebook. com/Nescafe3in1Bulgaria https://twitter. com/following http://mashable. com/category/social-media-marketing/ http://www. assignmentpoint. com/business/international-business/report-onnescafe. html 20