Gazprom Neft has filling stations in 26 regions of Russia, as well as in the countries of the CIS and Eastern Europe. By the end of 2013, 1,339 Gazprom Neft filling stations were operating in Russia and the CIS, 74 more than at the end of the previous year.
The Company’s filling stations sold 8.4 million tonnes of petroleum products in 2013 (13% increase over 2012 sales). Average daily sales at one filling station in the Russian Federation in 2013 were 19.0 tonnes per day, which is 7.8% more than in 2012.
Petroleum product sales via filling stations in Russia increased by 11% in 2013, amounting to 7.3 million tonnes. Petrol sales increased by 9% to 4.4 million tonnes; diesel fuel sales increased by 14% to 2.8 million tonnes.
Revenues from the sale of associated goods and services at filling stations were RUB 10.6 bn in 2013, a year-on-year increase of 44%.
The Company was the first in the Russian oil and gas industry to initiate and start remodelling its regional sales network in order to improve business efficiency and implement legislative changes. This project will involve the reorganisation of the nine existing regional petroleum product suppliers into eight specialised entities covering a specific business line. As a result, each business will have separate financial results, performance indicators and will be an independent profit centre. The project’s main development in 2013 was the launch of operations by LLC Gazprom Neft – Regional Sales and OJSC GPN –Transport; LLC Gazprom Neft – Corporate Sales also began operations.
Gazprom Neft’s filling station chain expansion in 2013
One of the most effective tools for increasing sales and brand loyalty is the Gazprom Neft nationwide loyalty scheme for individual customers, “Going Our Way”, which was launched by the Company in 2010.
The programme is currently run in all regions of Russia and the CIS (Republic of Belarus) where Gazprom Neft filling stations operate. Since its inception, the loyalty scheme has already gained more than 4.3 million clients. The share of sales through the “Going Our Way” loyalty scheme is more than 70% (nearly 90% in a number of regions). In the CIS, Going the Same Way is the largest fuel loyalty programme among VIOCs by membership level in the regions where Gazprom Neft filling stations are located.
At the end of 2013, a joint project between Gazprom Neft and Gazprombank (OJSC) was launched for customers holding Gazprombank-Gazprom Neft cards, which provides additional rewards under the Going the Same Way loyalty programme, allowing customers to use the card to make other purchases (such as services and repairs). The project is not only raising the profile of the loyalty programme among existing and new customers, but also increasing sales.
Gazprom Neft is implementing projects for the sale of premium-brand fuel sales at its own filling stations. A total 380,000 tonnes of premium-grade G-Drive 95 fuels were sold in 2013, with 808 Gazprom Neft filling stations selling this fuel as at end-2013. G-Drive 95 fuels amounted to 30% of all consumer sales at filling stations in December 2013 (against a selection of AI-95 fuels). In terms of total consumer sales of a selection of AI-95 fuels, sales of G-Drive 95 amounted to 25%. The Company also started selling G-Drive 95 motor fuel in Kazakhstan, Tajikistan and Belarus in 2013.
The company commenced sales of premium-grade G-Drive 98 fuels throughout its retail network in February 2013, with sales of this fuel totalling 12,000 tonnes by the end of the year. As at end-2013 a total 320 Gazprom Neft filling stations were selling G-Drive 98 fuel.
REBRANDING OF FILLING STATION CHAIN
Over five years (from 2009 to 2013)
Expansion in the petroleum product retail segment is a key priority for Gazprom Neft. Its own national brand with a high level of market awareness and consumer trust will help the Company to achieve one of its strategic goals: to become the leading player in Russia and the CIS in terms of retail sales volume and efficiency of the filling station network by 2025.
GAS MOTOR FUELS (LPG, CNG)
Growing attention has recently been placed on environmentally-friendly and cost efficient transportation. These are key criteria for urban public and commercial transport, making these segments of the transportation market a natural starting point to showcase the large-scale use of natural gas fuel. In line with this approach, Gazprom Neft is placing particular emphasis on increasing its sales of the two main gas motor fuels, liquefied petroleum gas (LPG) and compressed natural gas (CNG).
The share of LPG and CNG consumption in the motor fuel market in Russia does not exceed 3%. Liquefied gas has gained the widest use as a motor fuel, accounting for 2.4% of all fuel consumption. The share of CNG is only 0.4%.
In 2013, there were 176 Gazprom Neft branded multiple-fuel filling stations. A total of 9,000 tonnes of CNG (10.7% more than in 2012) and 94,000 tonnes of LPG (1% more than in 2012) were sold in 2013.