From Retailer To Distributor

Since 2008, ExxonMobil has sold about 800 of its company- and dealer-operated locations

In June 2008, ExxonMobil Fuels Marketing Co. announced its intent to sell off its company- and dealer-operated sites and transition out of the direct-served retail business in the U.S. As reported by CSNews Online at the time, the Fairfax, Va.-based company believed converting the majority of its markets to branded wholesaler was "the best way to grow and compete now and in the future." It's been more than two years since the announcement, and Convenience Store News recently caught up with Ben Soraci, U.S. retail sales director for ExxonMobil Fuels Marketing. He reported that the transition is going even better than expected.

"The level of interest [in the assets] has exceeded my expectations, and that has led to a very competitive bid process," Soraci said. "I'm very excited by who is buying our assets."

ExxonMobil is still in the midst of selling roughly 2,200 company- and dealer-operated sites to branded wholesalers with long-term fuel contracts for its Exxon and Mobil brands. As of November of last year, about 800 of the locations had been sold. However, Soraci noted the vast majority of its markets are already in the process of being sold — some farther along than others.

"We're very pleased with how the process is going. We have some great branded wholesalers, and many of our assets are being bought by our existing jobbers. And we're also getting some new branded wholesalers," he said. "It's very important to us who buys our assets and who operates them. We're very selective on who represents our brand."

As for when ExxonMobil expects to be fully transitioned from the direct-served business to the distributor model, Soraci said the company hasn't set a specific target date. "We're on track based on where we thought we would be. It's not a race to the finish. It's not about how fast we can get it done. It's really about the quality of the process," he explained.

In selling off its sites, ExxonMobil is shifting focus from the backcourt to the forecourt — with an emphasis on strengthening its value proposition to branded wholesalers. "The focus on our fuel brands is even more important now because that's really our bread and butter," he said.

Last year, the company convened a national panel of its branded wholesalers to identify where the Exxon and Mobil brands are strong and where there are opportunities to improve. It's no secret that many of the company's branded wholesalers have other fuel brands, but Soraci said ExxonMobil wants to be their top choice every time.

Based on learnings from the panel, the company is looking more to technology to be a point of differentiation that separates the Exxon and Mobil brands from its competitors.

"When we made the decision to transition to a 100-percent jobber — or what we call a branded wholesaler model — we knew we needed to look at what our value proposition would be to our wholesalers," Soraci said. "We identified the digital space as an opportunity for us. At ExxonMobil, we are very much a technology-driven company."

One of the latest ways ExxonMobil is leveraging digital is through its first mobile application (App). This past November, the company introduced the "Exxon Mobil Fuel Finder" App for iPhone and iPod Touch, which can be downloaded for free from the Apple App Store.

The application provides drivers with real-time maps, driving directions and station information for more than 10,000 Exxon and Mobil retail locations across the continental U.S.

"For our loyal customers, it provides them a tool to use when they're planning a trip in a different part of town. But also, with the significant reach of iPhone and iPod Touch, we're getting the free download to anyone who wants it," Soraci told CSNews. "That's going to give us reach to a customer who might not be an Exxon or Mobil customer, and that will drive business to our branded wholesalers."

The Exxon Mobil Fuel Finder is a mobile version of the company's popular online station locator, available since January 2001 at www.exxonmobilstations.com. The application relies on GPS technology to identify a user's location and then highlights nearby Exxon and Mobil stations on an interactive Google map. An advanced filtering feature distinguishes stations by hours, types of fuel sold, and availability of pay at the pump, convenience store, Speedpass, car wash and service bay.

The App also includes an "Our Gasoline" section where users can learn how Exxon and Mobil fuels help clean intake valves and keep vital engine parts, such as fuel injectors, clean.

In March of 2009, ExxonMobil introduced a similar station locator tool for GPS devices. The feature, which allows customers to download Exxon and Mobil service station locations to their devices, is downloadable from the ExxonMobil station locator Web site and compatible with leading consumer GPS units, including Garmin, TomTom and Magellan.

"We've had a lot of good feedback on that," Soraci noted. "A lot of folks have downloaded it."

ExxonMobil also plans to introduce an application for Android in the coming months.

Soraci said the company will continue to look for ways it can leverage the digital space to drive business. "Today, technology is more and more a part of our lives. The amount of people who have smartphones and are using social media continues to grow. It's important for us to look at how we can use digital to connect with our branded wholesalers and consumers," he said.

Along with investing in technology, the company is focusing on areas such as card offerings and promotions to drive loyalty to its fuel brands. Last year, ExxonMobil ran a "Win a Smart Fortwo Sweepstakes," where it gave away 13 Smart Fortwo coupes.

And during the fall of 2010, the company ran a promotion in partnership with Restaurant.com where cardholders who registered at a special Web site earned a $50 dining certificate if they purchased 100 gallons of gasoline within 90 days of the date of registration. The certificate could be redeemed online at more than 15,000 restaurants and online merchants nationwide.

"Card programs are a big area for us ... It's about having a pipeline," Soraci said.

ExxonMobil is doing new things in the area of advertising as well. The company recently conducted consumer research, and the findings served as a reminder that what is most important to customers when they decide on a fuel brand is: trust, quality and value.

As a result, the company's summer 2010 campaign focused on the quality of its fuels, while the campaign it ran in December of 2010 and again this month, will focus on tips for fuel efficiency.

For comments, please contact Linda Lisanti Senior Editor, at [email protected].