Preem Petroleum
Fueling a petrol station’s retail experience
Overview
Preem is a major Swedish petroleum company with retail petrol
and convenience store (c-store) offers. Ongoing petroleum price
wars in Sweden had eroded petrol sales profits to almost nothing. A
chocolate bar in Sweden had a 40 percent higher margin than a liter
of petrol. Because it was too expensive to close stations due to
high environmental costs, and with no buyers in an over-saturated
national market, Preem saw its future salvation, and only hope of
retail profitability, coming from its c-stores, rather than petrol
sales.
Challenge
The brand challenge was to bring Preem’s retail business back
into profit and achieve a 40 percent increase in sales over five
years. With an old-fashioned retail offer, Preem needed to find a
point of difference for the brand and its c-store offer, refresh
its image, and refit its sites. Research indicated that Preem
attracted more female customers and was perceived to be more caring
and friendly than its competitors. It was decided to do what no one
else in the market had done before–directly target female
customers. Landor’s recommendation was to reposition Preem as a
retailer with a petrol offer rather than a petrol station with a
retail offer.
Solution
From the brand strategy to the design concept and product offer
everything was created with women in mind. The solution separates
“carbohydrates from hydrocarbons” through the use of color and
transforms the experiences most important to women-the petrol
station forecourts and c-stores. Forecourts are more brightly lit,
food is fresher and healthier, and toilet facilities were
redesigned to be the best petrol station toilets, bar none. At
pilot Preem service stations initial sales results from 19 May 2006
to 21 July 21 2006, compared with the same period in 2005, saw a
28.8 percent increase in fuel volume and a 146.1 percent increase
in fresh food sold.