Chevron Awards Greater Flexibility to Caltex Retailers

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Chevron Awards Greater Flexibility to Caltex Retailers

September 09, 2010

KUALA LUMPUR, September 9, 2010 – Chevron Malaysia Limited (“Chevron”), which operates the retail brand Caltex™, is giving retailers greater flexibility and control in selecting backcourt offerings to complement their service station business, including taking ownership of convenience store (“c-store”) operations.

“Chevron understands that the best people to understand and anticipate their customer’s needs are our retailers themselves. By leveraging on their local customer knowledge, entrepreneurial retailers are able to take ownership by deciding on the optimum business model that supports the marketing efforts of the Caltex fuel brand. This means choosing a complementary backcourt offering, whether it is operating a convenience store, a fast food outlet or even a hand wash,” says Jeremy Oh, Country Chairman, Chevron Malaysia Limited.

This opportunity for flexibility was behind the nationwide re-brand of Caltex c-stores from “Star Mart” to “Mart” in 2009. The transition to “Mart” affects all business class-of-trades, and will continue to be a staple at company-owned, retailer-operated (CORO) Caltex service stations. Under this transition, these retailers take full ownership of their respective “Marts” from merchandising to store operations. Retailer-owned, retailer-operated (RORO) and branded marketer retailers may opt to operate either a “Mart” or other customized backcourt offering.

The first Chevron branded marketer to explore this option is Pen Petroleum, with the launch of their new c-store brand “Xpress Point”. Working within Chevron’s guidelines, Pen Petroleum’s marketing arm, HYL Marketing Sdn Bhd, designed an attractive customer offering, complete with marketing strategy and promotional offers, which is planned to be introduced progressively across Pen Petroleum’s network of Caltex stations. As an independent owner of the “Xpress Point”, Pen Petroleum also plans to offer their c-store brand to other interested Chevron branded marketers and RORO Caltex station owners. CORO Caltex station owners will continue to operate “Mart” at their premises.   

“Selecting the right partner for a backcourt offering will bring synergy to related Caltex stations, with expertise, logistics and management experience that will help retailers maximize their revenue streams. Provided guidelines are met, Chevron expects to see other c-store brands coming up alongside “Mart” as other applicable retailers explore the flexibility they now have and the opportunities open to them,” adds Oh.

“At Chevron, our vision is to be number one in the hearts and minds of our customers by anticipating and meeting their needs with quality fuels and offerings. The goal is to grow sales profitability even as we improve the current business model of an established supply and distribution chain that Chevron owns and partner it with other offerings that complement the service station experience.

”Service stations under Chevron operate within three business class-of-trades: retailer-owned, retailer-operated (RORO); company-owned, retailer-operated (CORO); and Branded Marketer. In essence, a branded marketer is a Chevron partner which operates its own network of service stations under the Caltex brand. For more information on Chevron class-of-trades, please visit www.caltexforinvestors.com.my


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