Statoil Norway: coffee club
Statoil Norway, Norway’s leading petrol retailer, has scored a double whammy by becoming the country’s top convenience retailer.
It operates from 485 petrol stations in Norway, all branded under the Statoil name.
“The climb to the top as Norway’s biggest convenience chain and with the highest market share within transport fuel has been possible with strong leadership and long-term strategies,” says Henning Figenschou, chief sales development, retail operation, Statoil Energy & Retail Norway.
“The key is to stay focused and be smart,” he adds.
Specifically, Figenschou credits Statoil Norway’s convenience store success to two key factors: customer loyalty and innovation.
Statoil Norway has stolen a march on the competition with the launch of a breakfast club. For an annual membership fee of 129 NOK ($18), customers are entitled to as many hot drinks they would like from any Statoil store during the course of the year.
Since its launch in 2003, Statoil Norway now boasts 700,000 breakfast club members out of a total Norwegian population of 4.6m.
“Together with our loyalty cards, the breakfast club is Norwegian customers’ number one reason to stop at Statoil stations,” says Figenschou.
“Our key customers use their cars to and from work and/or in daily business. With the loyalty card in one hand and a cup of coffee in the other, Statoil is top of mind with Norwegian customers.”
Food-to-go is another driver for Statoil Norway and a key differentiator.
Statoil Norway’s in-store layout is designed so customers can quickly identify the food-to-go and coffee area on entering the store.
Soft drinks, another key category, which are purchased with food-to-go and confectionery and snacks, as well as being sold separately, are merchandised along the back wall and from a freestanding display unit.
According to Figenschou, cross-selling soft drinks with food-to-go is another success story at Statoil.
In 2005, for example, 40% of all food-to-go sales included soft drinks. In 2007, the business increased the penetration to 70% of all food-to-go purchases.
“Our employees reached the goal and are still maintaining a high menu share of drinks to fast food products,” he says.
Targets such as these are set at annual sales conferences, which are attended by 1,400 of Statoil Norway’s 3,500 petrol station employees.
Statoil Norway has also significantly increased sales of sweet, sticky buns, as a result of the 2006 event. Figenschou reports employees set a target to increase sales from 5.6m buns to 10m in 2007 but exceeded the goal by selling 14.2m last year and a record 17m in 2008.
“It’s an easy product to sell – it’s fun for the people that are selling them and our customers love fresh, sweet buns,” he says.
Statoil Norway has also worked in close partnership with Kraft Foods, one of the strongest names in Norwegian confectionery, to introduce a new co-branded bun – Freia Milk Chocolate.
According to Figenschou, this product has been an instant hit, contributing to the 14.2m buns sold in 2007.
Statoil Norway has subsequently collaborated on a further product with Kraft Foods, Kraft Foods Daim.
Figenschou reports this represents a seismic shift in the way in which Statoil Norway works with it suppliers.
“Statoil Norway is now working closely with our vendors to develop news products, in many cases from scratch,” he says.
“It’s extremely important in a market with tough competition to be in front and lead the category development.”
Figenschou reveals the company’s category development team is now involved in developing new lines in sectors including soft drinks, fast food products and bakery.
It will help ensure Statoil Norway retains its top spot.