Dual branding strategies in fuel retailing

SUMMARY

This report will examine existing attempts to create separate fuel retail brands, with the aim principally being to create a premium brand and alow-cost brand. It will look at the rationale and objectives behind brand splitting and re-positioning, the processes put in place, the challengesinvolved and successes achieved to date. In addition, it will examine where further activity may take place.

SCOPE OF THE REPORT

• Survey of over 40 retail managers across western and central Europe, gathering opinions on dual brands and customer segmentation in Europe
• Case profiles covering three leading companies from across Europe that have developed dual branded offerings to capture greater market share

REPORT HIGHLIGHTS

Based on a survey of over 40 retail managers from across Europe, the report highlights the proportion of price, convenience and service-focusedcustomers in each region within western and central Europe, and predicts how the proprtions will change through to 2007.

With either price-seekersor service-seekers or both expected to increase their shares of the customer bases in the Nordic markets, Benelux, UK, Ireland and southern Europe,and margins ever tighter, this will push retailers towards creating and expanding a mix of concepts to cater for different customer groups.

Casestudies of leading players with dual brands in markets such as France, the Netherlands and Denmark provide examples of pricing, promotion, placementand product strategies across the different brands, and offer lessons for other retailers.

KEY REASONS TO BUY THIS REPORT

• Learn from successful dual brand development strategies, covering pricing, promotion, product and distribution
• Action points highlight key steps in establishing dual brands and pitfalls to avoid
• Retail manager survey enables you to assess the relative sizes of each customer segment for both business and private motorists in each region

TABLE OF CONTENTS

CHAPTER 1 EXECUTIVE SUMMARY

Introduction

Drivers in developing differentiated forecourt offerings within networks

Creating branded concepts to match customer segmentations

Forecasts and action points for retailers

CHAPTER 2 INTRODUCTION

What is this report about?

Who is the target reader?

How to use this report

CHAPTER 3 DRIVERS IN DEVELOPING DIFFERENTIATED FORECOURT OFFERINGS WITHIN NETWORKS

Introduction

Key findings

Emerging segments in the fuel retailing market

Estimating and forecasting the size of motoring segments

The pressure to serve divergent markets

Summary position of selected markets

Views of retail managers on current dual branding strategies

CHAPTER 4 CREATING BRANDED CONCEPTS TO MATCH CUSTOMER SEGMENTATIONS

Introduction

Key findings

Dual brand strategies for national champions

Total – the Osmose Program

Vive la différence – two brands for the French market

Creating an autonomous dual brand – Shell and Tinq in the Netherlands

Join the club – Statoil enters the unmanned sector in Denmark

CHAPTER 5 FORECASTS AND ACTION POINTS FOR RETAILERS

Introduction

Key findings

Which markets are ripe for dual branding?

Action points for retailers

Evaluate current market conditions and segmentation

Evaluate performance of sites and positioning of different branded sites

Develop pricing and product policies

Beware confusion caused by taking the middle ground

CHAPTER 6 APPENDIX

Research methodology

Future readings

SPP writing team

List of Tables

Table 1: Summary of drivers for dual branding – selected markets

Table 2: Share of private and business motorists by segment, 2003

Table 3: Changing trends in sizes of motoring segments to 2007

Table 4: Share of private and business motorists by segment, 2007

Table 5: Both unmanned site networks and forecourt shop numbers are growing rapidly

Table 6: Summary of drivers for dual branding – selected markets

Table 7: Many dominant players should follow this example [of Total in France] and split their sites into two clear offerings

Table 8: This will help the company better compete against the hypermarkets

Table 9: The two new brands have stronger brand values that the original brand/brands

List of Figures

Figure 1: Share of private and business motorists by segment, 2007

Figure 2: Customer segments and forecourt concepts

Figure 3: Share of private and business motorists by segment, 2007