| |
TonenGeneral has entrusted its marketing business to ExxonMobil Yugen Kaisha ("EMYK"), TonenGeneral's parent company. EMYK operates its marketing business through one integrated marketing strategy for "ESSO" and "Mobil" brands and the Company's "GENERAL" brand of the ExxonMobil Japan Group.
Fuels Marketing in the ExxonMobil Japan Group consists of four business departments managing different sales channels: Retail sells gasoline, ADO and kerosene to the dealers who operate approximately 4,500 Esso, Mobil and General branded Service Stations (shown as "SS" hereafter) in Japan, Industrial and Wholesale sells fuels for industrial use through commercial sales entities such as power companies, trading companies and the dealers, Aviation sells jet fuels to aviation companies, and Marine Fuels sells fuels to marine transportation companies.
In this feature article, Sven Arnet, Director of TonenGeneral Sekiyu K.K. and representative director and vice president of ExxonMobil Yugen Kaisha, will provide an overview of FM's strategies and initiatives focusing on the Retail business.
|
|
|
 |
 |
Outlook of the Japan Petroleum Industry? |
|
| We recognize that the Japanese oil industry is facing severe market conditions. As METI projected, the decline of major domestic fuels |
|
| demand seems likely to continue, due to factors including the global economic downturn, energy conservation, conversion to other energy sources and the declining population which results in the decreasing number of vehicles. Fluctuating crude oil prices in recent years have also had a significant impact on our business. |
|
|
|
Winning Strategies of the ExxonMobil Japan Group? |
|
| Crude oil prices and industry demand are not things we can control. Therefore we believe that the most important approach for the |
|
ExxonMobil Japan Group in managing this fierce situation is to continue with our business focus to ensure that we "stay strong and healthy"
in our businesses.
First, this means focusing on the crucial areas of safety, health, and the environment. Next, maintaining strong discipline and high standards
in all business areas including high corporate ethics and financial controls. This is what gives us our "license to operate". It is also especially important to focus on our long-term strategy under the current severe business environment. Leveraging ExxonMobil's knowledge and experiences from operations in all markets around the world, we, TonenGeneral and the EM Japan Group, shall strive to survive in any severe business environment by further pursuing higher efficiency and resilience/flexibility with a long-term perspective.
These business focuses are our strengths and are fundamental to our businesses and brand value. |
|
|
|
Retail Business Initiatives? |
|
| We have continued to build a higher-value-added business model by improving competitiveness through optimization of our marketing |
|
channels and through the shift to a self-serve format, aiming at being the most efficient competitor and maximizing our productivity. Furthermore, I believe that in such a fiercely competitive market, the key to success is whether we can establish a firm brand which corresponds to the customers' needs, in addition to cost competitiveness and operational efficiency.
The ExxonMobil Group has experienced the shift from a full-serve offer towards self-service in Europe and North America, but the speed of change taking place in the Japanese market is faster than in those markets. Therefore, we have estimated that brand development, especially in the self-serve format, is especially important in the Japanese market.
Based on our strategies and experience, ExxonMobil Japan established a brand-new self-serve format, "Express", in Japan in 2001 and continued to promote expansion of the "Express" network, which reached 838 as of the end of June 2009. |
|
|
| |
Judging from experience, I value the "Express" format with its high potential and top-class customer satisfaction, a winning format in Japan far outperforming competitors in convenience and consistency.
Therefore, we have continued strengthening and more firmly establishing the Express brand value by enhancing related services and programs, such as the easy-to-use touch panel Video Pump, our payment device Speedpass and alliances with Doutor coffee and Seven-Eleven Japan. In addition, we will continue to provide stronger and more efficient business offerings through our credit card strategy and services using our Synergy Card (for motor fuel personal use) and our corporate commercial card. |
|
|
|
|
| |
The ExxonMobil Japan Group including TonenGeneral will continue to evolve and enhance the brand value of Express providing customers with competitive and attractive services and programs. |
|
|
|
|
|
