What is the current situation in the retail market of motor fuels?
I would say that the situation is not easy. The market has changed: since the end of last year, it behaves atypically. It was during the period that has always been the most profitable for retail - and these are the last and first quarters - this year the margin went to the peak. Literally. We did not have a loss in retail even in the first, most difficult, quarter. But we also earned, to be honest, a little. I regard the current situation more as a reason to mobilize and a kind of test. For this reason, we changed the model of organization of the sales business so that it would be possible to work in any market conditions.
What happened? Why has the market changed so dramatically?
The market is changing primarily due to the amount of oil products. This year, the product on the market has become smaller. Why did it happen? Because several factors played at the same time. First, the next stage of the introduction of the tax maneuver has begun. For the most part, Russian refineries have undergone modernization and increased the depth of processing. But there are still plants in the country where the share of fuel oil in the total balance of oil products reaches 40%. For them, a new round has become critical - processing has become unprofitable. They began to cut production for the domestic market. Exports - whether crude oil or diesel - have become more profitable for them.
All this happened against the backdrop of a number of factories leaving for scheduled repairs and reconstruction. But if the market was ready for the planned reduction in volumes - reserves were created in advance and measures were taken to replenish the missing resource, then it was not for an additional one.
There are fewer products on the market. The wholesale price has gone up. Retail margins have collapsed. The increase in the excise tax on fuel exacerbated the situation.
Do you think it's long term?
I don't think it matters a lot whether it lasts or not. Marginality in retail is small in principle. We start from this. For example, both in the States and in Europe, the retail margin of gasoline has not exceeded 6–8% for a long time. This is offhand. In Russia last year, the margin of gasoline in retail was 11% on average for the year. This year, we can say that we have approached the international standard. But here it is important to understand that margin is not yet income. This is, roughly speaking, the difference between the purchase price and the sale price to the end consumer. It "protects" all the direct and indirect costs incurred by the gas station. At best, 2-2.5% goes into the profit of the retail business. This is if we are talking about EBITDA margin.
A natural question arises: are these 2% worth the money and effort that an oil company spends on developing its own retail network? Still, retail is not the main business of VIOCs.
We don't ask ourselves that question. You understand, we have a continuous production. If there is no sales, production stops. And our own retail network is, first of all, a guaranteed sales channel. In America, oil companies just came to the conclusion that 2% is not a reason to maintain their own retail network. Therefore, they eventually abandoned their own retail. But they could afford it. Because they can guarantee constant sales by long, ten-year contracts with the owners of points of sale.
But in Europe the situation is different. There is more stringent antitrust regulation. In the European Union, for example, the length of exclusive contracts for the supply of fuel to dealers is limited to five years, as far as I remember. Therefore, in order to guarantee itself a constant supply, the oil company needs stations to be owned. Even where large hypermarkets such as Carrefour and Tesco entered the fuel market and effectively deprived them of profitability in the retail sector. In order to somehow compete, oil companies had to seriously deal with the efficiency of their own retail chains.
And in Russia, which scenario seems most likely to you?
I'm not ready to speak for the entire market. For ourselves, we see the solution in finding a balance between the guarantee of constant sales and the costs associated with its provision. Our task is to sell the maximum volume with minimum costs. This problem is solved at several levels. First, at the level of organizational and managerial decisions. This is when costs are reduced, for example, by transferring functions for servicing stations to outsourcing. And additional traffic and income are generated through the development of a non-fuel component - a cafe, a store, and so on. The next level is more subtle. To manage costs and attract additional traffic, we use a partner resource. The next level is digital. This is the creation of a single technological platform for all sales. We used almost the entire resource of organizational and managerial decisions. Now we are closely starting to work with partners and create a sales platform.
What do you mean by working with partners?
I mean involving partners in the operational management of our own plants. After the reorganization, we see profitability not just in every channel. We see the profitability of each object - that is, each individual gas station. And the reasons why one station has a high profitability, while another has a low one. This gives us the opportunity to calculate the optimal operation model for each station - depending on the location, traffic and market. These are fine tunings. There is a pool of stations that operate as efficiently as possible under our own management. There are stations that will be more efficient if they are switched to automatic mode. And there are stations for which the optimal solution is to give them to a partner for operational management.
This approach to managing a pool of own stations is a common global practice. This is exactly the path that European oil companies took at the time. For example, BP itself operates only a third of its stations. The remaining stations are operated by partners.
How exactly do you plan to involve partners?
We have chosen three basic models for working with partners. The station is transferred to the management of the dealer. The station is transferred to the management of a professional retailer. The station is transferred to the operational management of an individual entrepreneur. Each of the models has its own nuances. But the principle is the same for everyone. The company manages the revenue side - fuel supplies, and the partner manages the expenditure side - the operation of gas stations. At the same time, the partner is directly interested in both the growth of pumping and the reduction of operating costs. Because his income depends on it. We have been running pilot projects since 2014. We are satisfied with the result. Let's see what the effect of scaling will be. In any case, we are not going to transfer all our stations to partners. Only those that the partner can manage better than we can, for one reason or another.
Are there any fears that partners will not be able to provide the company's service quality standards, and the product itself? No wonder they say - if you want to do well, do it yourself ...
We reserve the quality control of fuel and service. It's not even discussed. All partners are subject to a strict condition - they must comply with our internal operating standards.
All stations that operate under the brand name of the Gazpromneft filling station network are controlled by us in the same way, according to a single corporate standard. Regardless of who manages them - we or a partner.
One more question arises: the company has a very well-developed competence in “management of ancillary business”, and has its own successful non-fuel brand. Why do you need a professional retailer? Is there a contradiction or even a conflict of interest here?
There is no contradiction. There are two complementary stories. A professional retailer operating in the industry, in any case, has more opportunities and competencies in terms of organizing the work of the store than an oil company. It can qualitatively change the supply of goods at the station. And this is additional traffic and additional liters of the sold product. We do not give all the stations to the management of retailers. Only those whose location allows the store at the gas station to be converted into a “convenient store” format with an expanded range of products, including fresh products. We can do it on our own. The question is why. A professional will do it better and at a lower cost. This is first.
So you think that the future in fuel retail lies in the development of the non-fuel component of the business?
The non-fuel business is a private matter. The key story is elsewhere. We started the conversation by saying that fuel retail is a low-margin business. Its profitability directly depends on how efficiently the company manages costs. Therefore, the future - it is obvious - for a solution that will allow you to reduce costs by a multiple. And I believe that there is such a solution - this is a sales platform. We have a manufacturer - an oil company. There is a product. There is a consumer. There is a filling point. There are partners and other interested parties. The platform I'm talking about is a digital platform where any of the market participants instantly receives the solution they need. The consumer receives the product on certain conditions. Partner - a contract for the management of the station. Third-party gas station - a contract for the supply of fuel. And so on. And the oil company - the owner of the platform - receives sales. At the same time, volumes grow multiple - due to the speed and number of transactions. And the costs are minimal.
We have all the main components of the business component of the sales platform. Actually, these are all our businesses - not only retail, but also small wholesale, and corporate sales, and delivery, and storage, and transshipment, and quality control. With the technological component it is more difficult - after all, the degree of automation and penetration of digital technologies needs a very high one. But we are already working on this.
So. As soon as we combine the business and technology components into a single ecosystem and provide access to it from the external loop, we will create a sales platform. Once we create it, we will change the landscape of the market. Of this I am convinced. Because it's a completely different level of cost control. Now unattainable.
Development and promotion policy of Gazprom Neft brands
Let's go back 10 years ago, at the time when Gazprom acquired the assets of Sibneft. At that time, the network of Sibneft filling stations was quite well known in the regions of presence, but the further development of this brand was not considered an effective scenario. Therefore, the company has come a long way from large-scale marketing research and brand development to a large-scale modernization of the company's main assets and the construction of new filling stations under the Gazpromneft brand in Russia and GAZPROM abroad. The fame and reputation of Gazprom contributed to the effective launch of brands on the market and at the same time set a high bar for service level requirements.
Today, the brand architecture of Gazprom Neft consists of more than 30 items. It is formed by a series of retail brands of the Gazprom Neft line, premium brands of the G-Family family, individual social and corporate programs - perhaps no other oil company has such a wide range of brands on the Russian market.
ALEXANDER DYBAL,
We have secured sustainable leadership in the regions where gas stations of the Gazprom Neft network operate. A third of our customers already prefer G-Drive premium fuel. Thanks to the high quality level of our products, G-Energy and Gazprom Neft oils are already actively capturing market share, successfully ousting foreign brands from the domestic market. Today, it is almost impossible to succeed in the market simply by producing high-quality and technologically advanced products in the face of fierce competition. A comprehensive consumer brand development strategy is needed to expand into new markets and market niches, increase sales and market share. It is the consumer brands of Gazprom Neft that allow the company today to be a leader in almost all segments of the Russian oil products market, to successfully develop its distribution networks abroad, thereby strengthening the corporate brand and, due to the growth in the value of intangible assets, increasing the overall capitalization of the company.
An important step in the development of the Gazprom Neft brand architecture was the launch of a premium line of oils with the leading brand G-Energy on the market. The famous actor Jason Statham became the face of the advertising campaign of the new oil brand, which made it bright and effective. Next came the turn of G-Drive premium fuel and Drive Cafe, popular with motorists. Today, motorsport has become the main platform for promoting G-Family brands - this is a global trend in fuel and oil brand communications.
The marketing strategy for the development of retail brands has borne good results, as confirmed by the data of the global information research company Nielsen. The development and promotion of brands ultimately largely shaped the current image of the company as modern, efficient and technologically advanced. The mechanism is simple: product brands win consumer recognition by influencing the attitude towards the entire corporation. At the same time, the company, developing advanced projects in the industry, forms the attitude of consumers to the line of its brands and products. Thus, mutual trust of corporate and consumer brands is formed. A brand today is an asset with real value.
Information according to the study of the effectiveness of communications of the company's retail brands in Russia: 2011-2012, Bojole agency (number of respondents - 4555 people); 2013–2015, Nielsen agency (number of respondents - 13,655 people)
Thus, the brands of many global giants make up a large part of their capitalization, and the strength of the brand is manifested through trust in the quality of the goods, in the financial reliability and cleanliness of the partner. Experts attribute the increase in the share of intangible assets in the market value of companies to the main trends of the modern, post-industrial economy. At the same time, the role of branding in the development of B2B companies is growing exponentially today, and it is not much less significant than that of B2C companies. If the associations of B2B and B2C consumers are not broken over time, but only strengthened and confirmed by examples, then they are ready to pay a certain premium to the seller for these advantages, which, accordingly, positively affects the financial condition of the company through the strength of its brand. Thus, image investments in the brand are needed not only for the development of the company in a positive direction, but also for demonstrating the strength of the brand in the stock market. So, when an enterprise enters an IPO or a complete sale of assets, the role of the brand becomes very significant; in international practice, there have been cases where a third of the value of the shares is formed precisely by the successful promotion of the brand.
The brand of the oil company "Gazprom Neft" is now known to almost everyone in Russia - this is a confirmation of the effective marketing policy of the company, supported by the development of the parent brand "Gazprom". At the same time, Gazprom Neft is also an industry leader in the eyes of the expert community: in the business environment, the company occupies the top line in the rating of the fastest growing companies in Russia.
Filling stations with guaranteed fuel quality and popular loyalty program
For a vertically integrated oil company, its own developed network of filling stations is a reliable and high-margin channel for the sale of petroleum products. In 2009, Gazprom Neft began to create a retail network under a single brand - Gazprom Neft filling stations. Initially, the network united about 900 gas stations, most of which were located in the regions closest to the company's refineries. Today, Gazpromneft is a federal network of gas stations, also represented in a number of CIS countries. In a few years, the number of stations has doubled, while due to M&A activity, the company managed to strengthen its position in the largest region of Russia - Central, enter the important markets of St. Petersburg, Chelyabinsk, YNAO, Krasnodar Territory.
From the consumer's point of view, the network of gas stations "Gazpromneft" is, first of all, consistently high-quality gasoline in the middle price category. Such positioning is especially important for non-capital regions, where a large percentage of small networks rely on cheap and often low-quality fuel.
National Network
The network of gas stations "Gazpromneft" has more than 1.4 thousand stations in 29 Russian regions, as well as in the CIS countries. In 2015, the company sold 9.3 million tons of petroleum products through its own retail network.
The On Our Way loyalty program operating in the Gazprom Neft gas station network already unites 6.4 million customers. In Russia, the share of sales of petroleum products through loyalty cards is 75% of the total volume of retail sales. There is also a separate program for corporate clients, who can use a special fuel card for payments, which provides significant price advantages.
9.3 million tons of oil products were sold in 2015 through the network of Gazprom Neft filling stations
At the same time, Gazprom Neft's filling station network development strategy is sensitive to changes in demand and takes into account market trends. In particular, the number of additional services and related products has been actively growing at the stations over the past few years. Today, a typical Gazpromneft gas station is, in addition to refueling, also a shop, a cafe, a car wash, tire inflation, and an express oil change. It is planned that by 2020 the share of sales of non-fuel goods and services will increase several times, and income from related business should cover a significant part of retail operating costs.
Brand history
At the time of the foundation of Gazprom Neft, the company managed several networks of gas stations under different brands at once: Sibneft, Slavneft, Novosibirsk-nefteprodukt, NK Alliance, and so on. The project to create a unified brand of the company's retail network was launched in 2007. The rebranding touched upon both the name and appearance of the filling stations, as well as the formation of the image of branded stations as modern, comfortable and reliable, offering quality products and services, taking into account the specifics of each region at an affordable price for most motorists.
It took two years to develop the concept and corporate identity of the new brand. The chosen name of the network - gas stations "Gazpromneft" - solved two strategic tasks. A direct association with Gazprom automatically aroused a high level of trust and made it possible to effectively bring a new brand to the market, while the word “oil” in the title ensured a semantic transition from Gazprom’s main specialization (gas) to another area of business - automotive fuel, gas station.
ALEXANDER KRYLOV,
Deputy General Director of Gazprom Neft for Corporate Communications:
The network of gas stations "Gazpromneft" is the face of our company, the main point of contact with the consumer. Since the formation of the network, we have created a strong and recognizable brand, which is associated with high quality fuel, convenient service and advantageous offers for customers. Gas stations of Gazprom Neft have repeatedly become the brand of the year, which means that the values we have invested in this brand meet the expectations of motorists.
The company's fuel portfolio is also increasing every year. Branded gasoline G-Drive, which we brought to the market in 2011, is no longer just a premium brand of fuel - we have created a certain lifestyle. That is why all of our G-Drive products - from gasoline to energy drinks and chewing gum - are in great demand among customers. That is why the share of G-Drive fuel in the sales basket of high-octane gasolines in our network reaches 30%, although this figure does not exceed 15% on average in the market. G-Drive is the flagship premium brand of Gazprom Neft, it embodies innovation, power, and victory. These values are conveyed by our racing team, G-Drive Racing, which has already won a number of important world motorsport podiums and thanks to which we have the opportunity to test fuels in extreme conditions.
A family of high performance premium fuel products.
G-Drive fuel reaches 30% in Gazprom Neft's high-octane gasoline sales basket
The appearance in early 2011 of gasoline under the G-Drive brand in the Gazprom Neft filling station network was a logical step for Gazprom Neft on the way to strengthening its position in the fuel retail market and attracting new customers. Own strong, modern and dynamic brand of motor fuels in the premium segment is a significant advantage in a highly competitive market. An obvious prerequisite for its creation was the increase in the fleet of new foreign cars in Russia, leading to a constant increase in the share of consumption of high-octane gasoline and demand for fuel with improved characteristics. Therefore, it is not surprising that G-Drive fuel immediately found its consumers. Today, every third driver who chooses the 95th gasoline at Gazprom Neft filling stations fills up with G-Drive
Today, G-Drive is not only a family of premium fuel products, 95 and 98 octane motor gasolines, but also a range of related products manufactured under the same brand. Sports play a special role in promoting the brand - auto racing, football and hockey.
The high quality of G-Drive fuel, its demand on the market, as well as a competent promotion policy made it possible to bring G-Drive to the top positions among the most famous retail brands on the Russian fuel market in a few years. According to marketing research, G-Drive is one of the three most famous brands in Russia and occupies a leading position in the regions where the Gazprom Neft filling station network operates.
Specifications
G-Drive fuel was originally designed as a high quality gasoline with improved performance. Before entering the market, the fuel has been independently tested on vehicles of various brands. Tests have shown that when using G-Drive, the power of an automobile motor increases by up to 8.6%, and the dynamics of car acceleration - up to 1.5 seconds. Over time, thanks to the constant search for more efficient components, these figures have been improved: for example, today we can already talk about the maximum increase in engine power up to 12%.
To achieve such results, various additives are added to gasoline. The thermostable element, a friction modifier, which is part of the G-Drive fuel, creates a protective film between the piston and the cylinder wall of an automobile engine, minimizes friction, which increases the efficiency of the engine as a whole, providing an increase in power and improving acceleration dynamics. Detergent components are also included in the complex of active additives. Thanks to them, with the constant use of G-Drive, the amount of deposits on the intake valves and fuel injectors of engines is reduced by more than 10 times compared to conventional fuel.
Filling station network in the premium fuel retail segment in the Balkans
95 filling stations in the Balkans form the GAZPROM filling station network today
The development of the retail sales network is one of the main strategic objectives of NIS, Gazprom Neft's Serbian asset. At the same time, it was initially decided that the geography of the presence of the company's retail sales should not be limited to the borders of Serbia, where the network of NIS Petrol filling stations historically operates. But it was decided to enter foreign markets with a new brand - GAZPROM Petrol Stations. Not only the name, but also the target audience has become new: GAZPROM filling stations are designed for the premium segment as the most profitable in conditions of limited resources, due to the sufficient remoteness of the stations from the parent refineries. The segment's premium nature means that at the stations the customer can not only refuel with the highest quality gasoline, but also receive additional services and products. This format is typical for Western European countries, where the gas station is traditionally associated with a supermarket and a snack bar. However, sociological studies have shown that additional services are also in demand among consumers in the eastern part of the Old World: a survey conducted in the Balkans back in 2009 showed that at least 16% of drivers are ready to pay “for options”. And as the economic and political situation improves, the size of the motivated target audience is growing.
The first filling stations under the GAZPROM brand opened in Serbia and Romania at the end of 2012, in 2013 they were joined by filling stations in Bulgaria and Bosnia and Herzegovina. By the end of 2013, the GAZPROM gas station brand received the honorary title of "Best Regional Project", which is annually presented by one of the most influential business structures in the country - the Serbian Association of Managers.
Brand history
The decision to create a branded network of filling stations in the Balkans under the GAZPROM brand was made based on the results of marketing research conducted in 2009–2010. During testing, it was GAZPROM that received the highest scores for euphony, ease of pronunciation for potential consumers and intent of use in comparison with other options. In addition, the GAZPROM brand itself is well recognized by European consumers and is associated with reliability and premium quality.
To create the corporate identity of the new brand, the visual imagery of the corporate identity of the Gazprom Neft filling station network, which also received high marks from Europeans, was taken as a basis. In 2015, GAZPROM filling stations in Serbia and Bulgaria successfully launched sales of G-Drive branded premium fuel. In a short time, high-quality 100-octane G-Drive 100 gasoline has earned the trust of car owners and occupies a significant share in total gasoline sales.
GAZPROM in Europe
Today, the GAZPROM retail network has 16 filling stations in Serbia, 18 in Romania, 35 in Bulgaria, and 27 stations in Bosnia and Herzegovina. At GAZPROM gas stations, customers are offered Euro-5 standard fuel, high-quality oils and lubricants, other related products, wireless Internet access and a varied menu in a cafe or restaurant, including dishes of national cuisine. In addition, gas stations have ample parking and a playground.
The network has a loyalty program, as well as a GAZPROM card for corporate clients - a new generation card that meets the highest European standards in terms of its capabilities. The card allows corporate clients to receive significant discounts on fuel and other goods and services, track the movement of funds in their personal account, optimize costs, and also provides for the services of a personal manager. Currently, the process of integrating the GAZPROM fuel card system with the corporate cashless payment system of the Gazpromneft filling station network is underway, after which they can be used in Russia and the CIS countries.
Director of the Sales Block of NIS:
GAZPROM filling stations are an international premium brand of filling stations where we use the latest technologies that meet modern business and environmental standards. Thanks to high-quality fuel, a rich assortment of related products and a pleasant atmosphere, in the three and a half years since the opening of the first filling station under the GAZPROM brand, we have managed to win the trust of customers in Serbia, Bulgaria, Romania, Bosnia and Herzegovina. In accordance with our slogan "The best before you", we continue to work on improving our offer, as satisfied customers are our number one priority. Our consumers appreciate our work and the desire to meet all their desires, so consumer confidence in the brand is growing every day, bringing us closer to the strategic goal - to take a leading position in the retail automotive fuel market in the Balkans.
Own brand of cafes and food products for sale at gas stations allows you to attract new customers and increase the chain's revenue
A modern gas station is not just a point of sale for fuel - it is a complex that combines many services, such as tire inflation, car washing, the sale of food and small things necessary on the way. And of course, a modern gas station should have a cafe, because this is the easiest and fastest way to have a bite to eat on the road.
Today, all Russian networks are following the path of development of the related business, because the margin in the fuel business is 5-7%, and in the non-fuel business - more than 30%.
The development of a cafe under its own brand at Gazprom Neft gas stations is designed to increase the comfort of customers on the road and, at the same time, increase the revenue of the retail network. The company's strategy assumes that by 2020 revenues from related businesses will cover a significant portion of retail operating costs.
Today, Drive Café is equipped with 800 out of 1.4 thousand Gazprom Neft filling stations in Russia. Their services are used by about 50 thousand people a day. Another important trend in the development of related business is the release of goods under their own brand and their sale at gas stations. Such products become a tool for promoting the company's retail brands. The Drive Cafe brand is used for food products sold at gas stations of the Gazprom Neft network.
Another important trend in the development of related business is the release of goods under their own brand and their sale at gas stations. Such products become a tool for promoting the company's retail brands. The Drive Cafe brand is used for food products sold at gas stations of the Gazprom Neft network.
Brand history
The cafe at the company's gas stations had its own brand at the end of 2012. Prior to this, a thorough survey of customer opinions was carried out. The survey showed that the presence of a shop and cafe at the station is an important factor for 47% of respondents (at the same time, among customers with an income above the average, 62% of respondents use their services). The figures were confirmed by facts: in 2011, the company's revenue from the sale of related products and services in Russia increased significantly compared to the previous year.
After registering the trademark, the next step was the development of a typical range of cafes. In addition to coffee and tea, cafe areas initially offered pastries and hot dogs in branded packages. In the future, the product line has been constantly expanding. Currently, the range of cafes includes about 80 items.
ROMAN KRYLOV,
Deputy General Director for Associated Business of Gazpromneft Center:
Cafe is a separate area that we have been actively developing over the past four years by creating our own brand. After the stations had acquired a recognizable corporate identity and a service quality standard had been developed, all that remained was to open cafes that were supposed to attract new customers. Branded coffee houses have become a hallmark of the Gazprom Neft filling station network. Now every third "non-fuel" sale in our network falls on Drive Café. The Drive Café food concept is to go services, when customers can take any product with them and eat it on the road or at home. Like fuel for a car, for us coffee is the "fuel" for the related business.
Refueled the car - "refuel" yourself
Coffee occupies a leading position among related products and services that are purchased at gas stations. A record was set at one of the Moscow filling stations: 1,100 cups of freshly brewed coffee were sold per day. Second is hot dogs. Sales record - 600 pieces per day.
In 2015, coffee under its own trademark Drive Café appeared in the cafe at the filling stations of the Gazprom Neft network. The coffee is 80% Arabica and 20% Robusta medium roast. The basis of the drink is coffee beans from South and Central America. The mixture was developed specifically for sale in cafes at Gazpromneft gas stations. Raw materials are purchased from the world's largest traders, blending and roasting of grains are carried out in Russia. The system for remote centralized control of coffee machines at Gazprom Neft gas stations allows you to set uniform recipe settings and maintain a given level of coffee quality in all regions where the network operates. Further plans include the sale of Drive Café coffee bean mixture at gas stations in convenient packages for making coffee at home.
Gazprom Neft premium oils for modern cars, represented on the markets of 57 countries
Demand for high-tech modern lubricants is steadily growing all over the world, as cars become more and more complex. G-Energy is a premium brand of motor oils designed for the most modern passenger cars and approved by the world's leading automakers such as Mercedes-Benz, VW, BMW, Porsche, Renault, GM, etc. A separate series of oils - G-Energy Far East - was developed especially for cars of Asian brands.
G-Energy is the flagship brand of the large G-Family product family, which also includes lubricants for commercial vehicles - trucks, agricultural vehicles and buses with diesel or gas engines - as well as for stationary gas piston engines (G-Profi, G-Truck , G-Special, etc.).
Today, G-Energy oils are supplied to the markets of Central Asia, the Mediterranean, the Balkans and a number of Middle Eastern countries - a total of 57 countries. The expansion of the geography of presence is accompanied by excellent sales figures: according to the results of 2015, Gazpromneft-Lubricants increased the volume of sales of products under the G-Energy brand by 69% - from 19 to 32 thousand tons.
Already, about a third of the company's marketing budget is spent abroad. A large-scale brand promotion project is the opening of G-Energy Service partner service stations. Today they work in Russia, Italy, Belarus, Armenia, Georgia and Kazakhstan.
Brand history
An important step towards the creation of a new premium product was the acquisition in 2009 of a high-tech production of modern motor oils in Bari (Italy), where the production was originally organized. After the localization of the production of a significant part of G-Energy oils in Omsk, the Italian plant continued to work mainly for the European market.
Since the new product was being prepared simultaneously for the markets of the European Union and Russia, it was decided to abandon the use of the Gazprom Neft corporate brand in the name of the premium line of lubricants. The association with the company is indicated by the prefix G. Energy denotes the product line. The same principle of naming has been used for other premium products of the company.
The visual image of the brand was created in the famous Italian studio Giorgetto Giugiaro - Italdesign.
For all occasions
G-Energy oils have a unique ability to adapt to different engine operating conditions. This is achieved through the use of ACF (Adaptive Components Formula) technology, which allows you to enhance the necessary performance properties depending on the engine operating conditions, activating the necessary additives at the right time and providing maximum engine protection under any operating conditions.
The G-Energy product line includes synthetic and semi-synthetic motor oils, gear oils, service oils, greases and technical fluids. All brand products are developed jointly with leading international research centers. Only the best basic components are used for production.
ALEXANDER TRUKHAN,
CEO of Gazpromneft-Lubricants:
Lubricant brands of Gazprom Neft are the embodiment of the company's strategy aimed at achieving technological leadership in the Russian market. We rely on innovation and modern approaches to the construction of technological processes. As a result, our products are not inferior in quality to motor oils of foreign manufacturers - industry leaders. This determines the popularity of G-Energy oils not only in Russia, but also in many foreign markets. At the same time, with the Gazpromneft brand, we managed to solve an ambitious task and create one of the most optimal and balanced oil lines in Russia. Due to the optimal ratio of price and quality, these oils are used at service stations throughout the country, actively occupying market niches in which, until recently, foreign manufacturers were the main players.
Tests "Dakar"
In 2013, Gazpromneft-Lubricants was the first company on the Russian market to launch a specialized line of G-Energy Racing synthetic oils, designed specifically for sports and high-powered engines. These oils have been successfully field tested in real racing conditions. Since 2013, Gazpromneft-Lubricants has been supporting the G-Energy Team, which competes in the World Rally Raid Cup and annually takes part in the legendary Dakar raid on the roads of Central and South America.
Affordable, but high-quality products designed specifically for Russian consumers
Unlike more expensive G-Energy products, Gazpromneft branded oils are mainly targeted at the mass segment of the Russian market. The situation in it today is favorable and provides great opportunities for development: imports are becoming more expensive, the cost of servicing equipment is growing, and in search of a high-quality, but cheaper product, enterprises and private consumers are increasingly paying attention to the capabilities of domestic manufacturers.
The main consumers of Gazpromneft oil are owners of Russian-made cars, budget foreign cars and used cars. Gazpromneft-Lubricants is developing cooperation with the largest Russian equipment manufacturers. So, for example, Gazpromneft Standard 10W-40 oil is poured into all cars coming off the assembly line of the Ulyanovsk Automobile Plant.
Gazprom Neft sold 35,000 tons of lubricants on the Russian market in 2015
Another promising sales channel is the supply of oils to service stations. We are talking about products designed for equipment during the warranty period, released in accordance with the latest specifications of ACEA, API, ILSAC, etc.
Properly chosen positioning brings results. In 2015, sales of Gazpromneft lubricants increased by 17%. And this is despite the fact that the domestic market of lubricants as a whole has been shrinking over the past two years. As a result, Gazpromneft-Lubricants increased its share in it to 15%, with a sales volume of 235 thousand tons per year.
Import replacement
The import substitution program today gives Russian oil producers good opportunities to promote their products on the domestic market. From the very beginning, Gazprom Neft built its oils business systematically, and this created certain competitive advantages for the company, which were appreciated by consumers.
To date, as part of the import substitution program, several large-scale agreements have been signed with the authorities of several constituent entities of the Russian Federation, including St. completely replace imported oils in the housing and communal services, fuel and energy complex and in passenger vehicles. However, it is not only about the sale of products. The company is actively engaged in the support of all contracts, providing consumers with a full range of engineering services, including helping to determine the choice of products using maps of lubricant analogues.
Brand history
For a long time, only industrial oils and lubricants for the B2B market were produced under the Gazpromneft brand. The company had another retail brand aimed at the mass consumer - Sibi Motor. However, the possibilities for its development were limited: for consumers, it stood in the range of affordable, but not distinguished by high quality products. Therefore, in 2013, the Gazpromneft brand was introduced to the market instead, and in 2015, due to changes in market conditions, a radical renewal of the line began. The new products are approved by leading car manufacturers and are intended for both motorists and workshops. In total, more than 60 different products are produced under the Gazpromneft brand today: engine and transmission oils, greases, flushing oils, coolants, oils for commercial vehicles, marine and locomotive diesel engines, hydraulic fluids, etc.
Modern material for road construction, which significantly increases the quality of the coating and its service life
Traditional road bitumen is being replaced by modern materials such as polymer modified bitumen (PMB). It is produced on the basis of viscous road bitumen with the addition of a polymer capable of fully restoring linear dimensions upon deformation, as well as a special binding agent to ensure chemical bonding at the molecular level. This allows you to get higher and more stable performance of the road surface in terms of heat resistance, frost resistance and wear resistance.
The modified bitumen market in Russia is actively developing, and, according to experts, by 2025 its capacity may triple, reaching 500 thousand tons. The source of growth is not only large-scale plans for the construction of new and reconstruction of existing highways within the framework of the Transport Strategy of the Russian Federation, but also changes in the requirements for the overhaul life of roads and the quality of materials used on federal highways.
G-Way Styrelf is Gazprom Neft's answer to these challenges. This is a modern modified bitumen developed in cooperation between Gazprom Neft and the French concern Total and additionally adapted to Russian climatic conditions. The high-tech product is designed primarily for highways with high traffic intensity: the construction of high-speed highways, federal highways, busy city highways. The use of G-Way Styrelf not only improves the quality and durability of the coating, but also increases the economic efficiency of highway operation. The product name includes the prefix G, indicating that it belongs to the Gazprom Neft family of premium brands. Styrelf is a brand of the Total concern. It is well known to road builders all over the world and indicates that the bitumen is produced according to the advanced technology developed by this company.
Brand history
The search for a partner for the production of premium bitumen lasted a year and a half. During the preparatory period, the technologies of the world's leading manufacturers of bituminous materials, their policies and market strategies were evaluated. As a result, the choice was made on Total - as the leader of the bitumen market in Europe and innovative developments in the field of technological production of bitumen and PMB in the world.
In the summer of 2013, an agreement was signed to establish a joint venture for the production of polymer-modified bitumen and bitumen emulsions. Then, a unit was built at the Moscow Refinery, designed to produce 60 thousand tons of polymer-modified bitumen and 7 thousand tons of bitumen emulsions per year. On September 30, 2014, its pilot operation began.
Twice as reliable
Thanks to the special binder PAXL (Total's own development), which is part of the product, G-Way Styrelf bitumen is much more resistant to cracking and rutting, even under increased traffic loads over a wide temperature range. The service life of such roads is more than doubled compared to pavements made using traditional road bitumen.
The Russian line of PMB G-Way Styrelf includes four types of binders: PMB G-Way Styrelf 60 Standard and PMB G-Way Styrelf 60 Premium, as well as PMB G-Way Styrelf 90 Standard and PMB G- Way Styrelf 90 Premium. Grades of the "Standard" type fully comply with the requirements of the Russian GOST 52056, and in some respects exceed the requirements for similar brands. Brands of the "Premium" type are high-tech products, the properties of which significantly exceed the parameters of analogues in the domestic market.
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The meeting of members of the Avangard Hockey Club Association adopted the statement of the Chairman of the Board of Directors Alexandra Dybalya about resignation. Director for regional sales of Gazprom Neft elected new chairman of the board of directors of the club Alexander Krylov.
“In recent years, Avangard has made significant progress in important areas of activity. First of all, it concerns the development of the hockey school: last season, almost half of the Avangard players were the club's pupils, and the youth team of the main team demonstrated leadership throughout the season. The project of our Hockey Academy has reached the finish line: before the end of the year, together with our colleagues from Gazprom, we plan to commission its central complex with two ice rinks, a medical center and a hostel. After that, the complex will be merged with the hockey school within the Academy. It is also very important for us that Avangard is in the top three in terms of attendance among Russian KHL clubs. But now is the time to take the next step, above all in athletic performance. That is why we invited Maxim Sushinsky to the position of club president, who has a clear understanding of the club's goals and ways to achieve them. The club should have a development strategy and a transformation plan, which will be led by a new chairman of the board of directors. My colleague Alexander Krylov knows the specifics of hockey well and he has the necessary managerial qualities to implement the tasks facing the club. I remain a fan of Avangard and will continue to support the club both on and off the arena," he said. Alexander Dybal.
“I see my task in that Avangard strengthens its status as the leading club in the KHL, shows beautiful, sparkling hockey that the audience likes, and always achieves the highest possible results. I promise to do everything so that each game turns into a holiday, and the Omsk Arena hall is filled with fans and sports lovers. Chairman of the Board of Gazprom Neft Alexander Dyukov at a personal meeting before my election promised to support the club both in terms of strengthening the composition and in terms of development and operation of the new club academy. Together with the new president of the club, Maxim Sushinsky, I appeal to all the fans - let's support the club together, just like in the last playoffs. Together we will win!" - said the chairman of the board of directors of the club Alexander Krylov.
Alexander Vladimirovich Krylov
Regional Sales Director, Gazprom Neft
Born March 17, 1971 in Leningrad. In 1992 he graduated from LMU (Leningrad), in 2004 - the Faculty of Law of St. Petersburg State University, in 2007 - the Moscow International Higher Business School "MIRBIS" MBA with a degree in Strategic Management and Entrepreneurship. Also in 2014, he received an MBA in oil business from the Stockholm School of Economics.
From 1994 to 2005, he worked in senior positions in real estate (general director, president) in Russian-Canadian JV Petrobuild, CJSC City Real Estate Center, CJSC Alpol.
Since 2005, he has held the position of Deputy Head of the Sales Directorate at Sibur LLC. In 2007, he moved to the position of Head of the Gazprom Neft Oil Products Supply Department. Since December 2009 - Regional Sales Director of Gazprom Neft.
Repeatedly included in the rating of "Top-1000 Russian managers", according to the publishing house "Kommersant", and was also recognized as the best commercial director of Russia in the direction of "Energy and fuel complex". In October 2014, he received the Aristos award, becoming the first in the Best Commercial Director nomination.
The Regional Sales Directorate of Gazprom Neft PJSC manages the sales of motor fuel in Russia, the CIS and Eastern Europe. The Gazprom Neft filling station network unites over 1,700 modern filling stations of various formats in Russia, the CIS countries and Eastern Europe.
Press service of HC "Avangard"
Interview with Gazprom Neft Regional Sales Director Alexander Krylov
How is Gazprom Neft filling network developing in the Russian market?
I will say without exaggeration that at the moment our company manages one of the most efficient and developed distribution networks in Russia. In 2012, Gazprom Neft became the largest supplier of light oil products on the domestic market, with a 21.6% share. One of the key areas of the company's work is the development of the retail network of Gazpromneft filling stations, which includes 1.3 thousand stations in Russia and the CIS.
Recently, the global information and research company Nielsen conducted a survey of several thousand motorists in dozens of Russian cities. A quarter of respondents, answering the question “What is your favorite filling station?”, named Gazpromneft, and this is the highest result among all networks. The number of customers participating in the On Our Way bonus program, which is already 3.3 million, testifies to consumer confidence in the brand.
The success of network development is evidenced not only by the results of various studies, but also by a significant increase in sales of the filling station network, which over the past year in Russia amounted to 34% and reached 6.6 million tons. Other production indicators also increased. Sales of gasoline reached 4 million tons, and diesel fuel - 2.4 million tons, that is, they increased by 26% and 51%, respectively.
As a result, we almost reached our strategic goals for 2020 by the end of 2012, and we were faced with the question of revising the strategy. Previously, we were focused on increasing the scale of the business and building a strong brand for the Gazpromneft filling station network. This phase has already passed. The new strategy is based on increasing the efficiency of each individual filling station and the network as a whole. To achieve new ambitious goals, a project was developed to reorganize the company's sales business.
Tell us more about the reorganization project and its goals…
The reorganization has already begun and involves the separation of the wholesale and retail business. Instead of sales enterprises registered on a territorial basis, eight subsidiaries appeared. Each of them is responsible not for the region, but for the type of business: wholesale or retail sales, quality control, transportation, fuel storage, corporate customer service.
The main goal of the reorganization is to improve the efficiency of sales and corporate governance. We plan to achieve this effect by simplifying and enlarging the sales structure. In addition, the financial results and performance of each type of business will be easier to track. The division of wholesale and retail is also in line with FAS initiatives, and Gazprom Neft is the first oil company to carry out such a reorganization. As a result, we plan to achieve even better results both in the Gazpromneft filling station network and in the wholesale business.
How will the new structure be arranged?
To manage wholesale sales, Gazprom Neft registered Gazprom Neft-Regional Sales in St. Petersburg. This company has four branch clusters: the central branch in Moscow, the Ural branch in Tyumen, the West Siberian branch in Omsk, and the East Siberian branch in Kemerovo. Gazpromneft-Regional Sales is engaged in the sale of petroleum products to small wholesale customers and regional logistics. The Central Wholesale Cluster became a pilot one and started operating in April 2013. The Ural and Siberian clusters started operating on June 1, 2013.
The reorganization of retail sales began in June 2013 with the merger of oil products supply enterprises into three clusters: central in St. Petersburg, Urals in Yekaterinburg and Siberian in Novosibirsk. Thus, only 3 enterprises will manage retail sales throughout the country, and hence the network of Gazpromneft gas stations: Gazpromneft-North-West, Gazpromneft-Ural and Gazpromneft-Novosibirsk. For customers of the Gazprom Neft gas station network, the reorganization will go unnoticed - only the name of the company on the cash receipt will change.
Is the station rebranding complete?
Almost all of our filling stations have already been brought under the single retail brand Gazpromneft. In total, in Russia from 2009 to 2012 we built 95, reconstructed 255 and rebranded 462 filling stations. This year, we continue the reconstruction of the chains acquired in the capital, which previously operated under the brands MTK, Mosnefteprodukt, Korimos, and plan to complete it by the end of 2015. In total, we will reconstruct 68 filling stations, of which 33 will begin to operate as automatic ones, that is, without the constant presence of personnel .
It is important that the matter is not limited to just changing the sign. All new Gazprom Neft filling stations are equipped with state-of-the-art technological equipment to ensure a high level of environmental and industrial safety. At the stations, we monitor air quality and soil conditions. They are equipped with automatic fire alarm and fire extinguishing systems, storm sewer treatment facilities, vapor recovery systems, double-walled tanks that prevent oil products from entering the ground.
How is the gas station network developing in the CIS countries?
Our gas stations operate in Tajikistan, Ukraine, Kyrgyzstan, Kazakhstan and Belarus. Each market is different. For example, in Kyrgyzstan, the formation of a network has been completed (116 stations under the Gazpromneft brand are in operation), and we have focused as much as possible on improving the level of service and quality of services. The network is actively developing in Kazakhstan. 41 stations have been purchased and built in this country. In Tajikistan, we have 25 filling stations, in Belarus - 40. In these countries, the number of filling stations will also increase.
Last year, we entered the Ukrainian retail market of petroleum products using a franchising scheme. Now there are four gas stations under the Gazpromneft brand on the Kyiv-Odessa highway, which meet the uniform standards and requirements of our network. Our specialists regularly check the quality of fuel and the level of service at the Ukrainian gas stations of Gazprom Neft. At the same time, we are exploring the possibility of creating our own distribution company and our own network of filling stations in this country.
By the way, if we talk about the development of the network, I would like to know how successful the launch of related products on the market is?
Generally speaking, the release of goods under your own brand and their sale at gas stations is one of the important trends in the development of related business. Such products become a tool for promoting retail brands. At the same time, the company can strictly control their quality, ensure constant availability in stores and optimal retail prices.
Gazprom Neft produces goods under two of its own trademarks - the Gazpromneft filling station network and the G-Drive premium fuel brand. At the same time, I want to emphasize that Gazprom Neft has developed a strategy according to which the sale of related products at gas stations will not only make the network of gas stations more attractive to customers, but also become an effective retail business. By 2020, the share of sales of non-fuel goods and services should increase several times, and income from related business should cover a significant part of retail operating costs. There are grounds for such a strategy: in 2011, revenue from the sale of related products and services at Gazprom Neft filling stations in Russia increased by 65%, in 2012 by another 49%.
How successful are you promoting branded fuel?
Today, G-Drive 95 premium gasoline is sold throughout Russia. At those gas stations where it is sold, its share in sales of 95th gasoline is 30%. The high results of promoting this fuel allowed us to bring G-Drive with an octane rating of 98 to the market. Its sales started in March 2013 in Yekaterinburg and the Sverdlovsk Region. Also this year, the G-Drive premium fuel brand received the Brand of the Year/EFFIE.2012 award, which is awarded to the most successful projects in the field of creating and promoting brands in their product categories. Another important milestone in the promotion of G-Drive fuel was the conclusion of a strategic partnership agreement with Nissan. This was an important decision for us, as a result of which Gazprom Neft became the exclusive supplier of G-Drive fuel for the first refueling of Nissan vehicles. In just one year, we will fill about 50,000 cars manufactured at the plant in St. Petersburg with new-generation fuel, and upon opening the gas tank, the owner will immediately see a sticker “Nissan recommends G-Drive fuel.”
What is the sales volume of natural gas motor fuels in 2012? And how many gas distribution stations does the company currently have?
Liquefied hydrocarbon gas (LHG) - more than 93 thousand tons, and compressed natural gas (CNG) - about 8 thousand tons. Now in Russia the share of LPG and CNG consumption in the structure of motor fuels is relatively small and does not exceed 4%.
In the future, until 2020, LPG consumption may grow at approximately the same pace as the consumption of liquid motor fuel. As for CNG, the main potential for its consumption is concentrated in large metropolitan areas, especially in Moscow and St. Petersburg. CNG consumption by 2020 may grow 10 times from the current level, that is, up to approximately 4 billion m3 per year.
LPG is sold through the Gazprom Neft gas station network in the Moscow, Tver, Nizhny Novgorod, Omsk, Sverdlovsk, Kemerovo, Novosibirsk regions, in the south of the Tyumen region, in the North-West region and the Krasnodar Territory. At 89 of our stations you can fill up your car with gas. 85 stations sell LPG and 4 CNG. We are planning to put into operation multi-fuel filling complexes (MAZK) - with gasoline, diesel and gas motor fuel. The first such MAZK Gazpromneft opened at the end of 2012 in St. Petersburg. Several more filling stations will open in the Central and North-Western regions, including along the M1 and M10 federal highways.
