(3) Hello to the good buys

A new marketing campaign promising hassle*-free and faster fuel buying for customers is under way in America. Suzanne Peck reports on the 18-month research project which involved Shell Oil researchers 'moving in' with their customers to test their buying habits.

Three years ago when Sam Morasca asked his wife what could be done to exceed her expectations when buying gasoline*, her answer 'that I would never have to think about it any more' made him pause and think. The marketing people from Shell Oil Products, of which Sam is vice-president, were desperately seeking ways to increase the business, and to come up with a strategy which would put them clearly ahead of their competition by differentiating* the Shell Oil brands in the eyes of consumers. 'We are big business for Shell Oil, contributing US $7 bn of revenue, and the leading retailer of gasoline, but it is a fragmented market and the mission was to profitably expand the business,' said Sam.

Today, after 18 months of cutting edge research, Shell Oil is on track to make buying fuel at their 8,900 service stations clearly different with a new brand initiative. Its aim is to deliver through facilities, systems upgrades*, and new operating practices, a hassle-free fueling experience targeted at specific customer segments.

Over the past few years, the company has been developing detailed knowledge of consumer needs and attitudes, which formed the basis for the new brand initiative. Team leader Dave Yard, manager of Strategy and Planning - Marketing, picks up the story. 'We began with a customer segment study of 55,000 people, who we stopped in shopping malls in six cities for a 45-minute interview into their attitudes, especially regarding driving and cars. The result was that everyone wanted three things from a service station: competitive price, a nearby location and good quality fuel -something they all believed was already being delivered by the industry.'

This meant their buying decisions were influenced by other factors - some wanted full-serve outlets like the old days, some chose a service station depending on whether it looked safe or not. 'There were ten different segments with different needs, and we wanted a better understanding of each of these audiences.'

A focus group was set up for each segment; an anthropological study was carried out, which involved team members spending waking hours with people from each segment, watching them at home and accompanying them on shopping trips to see their buying habits; and a clinical psychologist was hired to create a psychological profile of each segment.

The study indicated that three groups, which comprised 30% of the driving public, should be targeted:

• Premium Speeders - outgoing, ambitious, competitive and detail orientated. They drive upmarket cars which make a statement* about them. Efficiency rules, plus fast pumps, quick access and payment.

• Simplicity Seekers - loyal, caring and sensitive, frustrated with complexities of everyday life. Want simple easy transactions.

• Safety Firsters - control orientated, confident people, like order and comfort of the familiar. Higher value on relationships and go out of their way* to stations that make them feel comfortable. Prefer to stay close to cars.

'The common thread was that they all wanted a faster and easier service than anything already available,' said Dave, 'so the study ended and the launch began.' The field organisation and Shell Oil retailers combined forces to determine how to eliminate the little hassles that customers sometimes face, such as improved equipment and clearer instructions at the pump. New innovations are currently being test marketed. A new advertising campaign was launched and a sophisticated measurement system introduced to monitor satisfaction, behavior and perception of the brand. 'Fueling* a car is a necessity of life and I believe we are ahead of the game - but we won't allow ourselves to stop and be caught up.'

*hassle: problems

'gasoline (US): petrol (CB)

*to differentiate: to show how products are different

from each other

*an upgrade: making s.th. work better, and do more

*to make a statement about s.b.: to show what kind of person s.b. is

*to go out of one's way: to make an effort

*fueling (up) (US): filling up (GB)

I Read the text opposite which describes how Shell Oil developed a new brand image. What techniques did Shell Oil use?

2 Read the text again and number the different stages in the research project in the correct order.

a They analysed the results, which showed that there were 10 different consumer segments.

b Focus groups studied the 10 segments.

c Shell Oil's marketing team decided to differentiate the Shell brand from the other brands on the market.

d Shell launched a new advertising campaign.

e They interviewed 55,000 people about their attitudes to driving and cars in general.

f Work started on improving products and services.

g They carried out a detailed study of the market over 18 months.

h Three groups were chosen as the target markets.

3 Find words and expressions in the text relating to 'The Four Ps' of the Shell marketing mix.

Example: Product - good quality