Clients: Shell & Texaco

Background
Car wash is a conjunctive-use profit center concept that has been available at retail petroleum outlets for decades. Many petroleum companies and retailers view car wash as an ancillary service which helps promote gasoline sales, and is frequently offered at significant discounts to gasoline-buying customers. However, as gasoline product margins continue to be under competitive pressure, there is now a gradual trend toward treating car wash as a stand-alone profit center.
After extensive consumer research and years of proprietary chemical product development, Shell Oil Products Company developed a branded car wash program to revitalize its network of car washes at retail petroleum outlets. Primary features comprised highly visible architectural elements, state-of-the-art equipment technology, proprietary chemicals and customer satisfaction focus. Phase one of the program roll-out was a limited market test that included a dozen locations in three markets nationwide. Pilot location results would be used to refine the program for phase two program roll-out.

Objectives
We were charged with the task of assisting the car wash project manager to:

• Analyze pilot location results and identify strengths and areas for improvement;
• Refine and create additional program guidelines and components for phase two program roll-out in strategic market areas; and
• Develop a wide range of marketing communications materials essential for successful program implementation.

Program Implementation Summary
Pilot Location Results. Comprehensive analysis was conducted. This included: car wash facility design and signage, site selection and evaluation process, compensation and profit-sharing arrangement with the retailer, pricing strategy, car wash operation, vehicle damage and customer complaint handling, local store promotions.
Customer feedback confirmed that the car wash logo and facility design were visually appealing and served to differentiate the car wash as a unique offering. However, certain architectural elements proved difficult to secure approval of municipal planning commissions having stringent guidelines.
Some of the pilot locations generated tremendous revenues, while others realized much more modest sales. There appeared to be a need for more in-depth site potential review and competitive analysis which would aid in selecting the locations with the best projected returns.
Customer satisfaction guarantee was an important feature of the branded car wash program. There was a need to create a streamlined, centralized complaint-handling process to improve customer satisfaction and manage vehicle damage claims.

Program Refinements
Incremental modifications and enhancements were made to various aspects of the program. Major refinements included:

• Working with engineering specialists, we surveyed municipalities regarding their building guidelines and reviewed internal records of past building plan submittals. Certain architectural elements were redesigned to increase the likelihood of receiving approval. A planning commission submittal package was also developed to assist field engineering personnel with the building plan submittal process.
• We developed signage and identification items to be placed at strategic locations throughout the retail facility to increase customers awareness of and promote the car wash offering.
• We created site potential review worksheets to assist field personnel to systematically evaluate the site to determine site layout and car wash configuration, and to project car wash revenue potential and construction cost estimates. Furthermore, we eveloped a computer-based site analysis model to assist in economic analysis and perform "What If" scenario analysis.
• Streamlined complaint-handling procedures were developed. Toll-free hot line, with well-trained staff, was implemented to ensure proper handling of customer complaints. Video cameras located at the car wash were added to the program requirements to minimize disputes and spurious damage claims.
• Local store promotions are a key element in retailing success. We tested several methods for car wash promotion at the local level, tabulated the return rates and created a grand-opening promotion package incorporating the elements proven effective in our tests. This grand-opening package included both on-site point-of-purchase and off-site promotional materials. It could be customized for each location to include map with driving directions to the location and specials.
• We developed an Intranet site to facilitate effective communication among all internal personnel and easy access to program information and updates.

Marketing Communications Materials
Numerous marketing materials were developed to communicate the program guidelines, procedures and benefits to internal personnel, retailers and consumers. They included:

• Consumer "Take One" Brochure
• Program Introductory Brochure
• Car Wash Operations Guide
• Cashier Training Manuel
• Program Implementation Guide
• Planning Commission Submittal Package
• Grand Opening Package

During program development, Shell Oil and Texaco formed an alliance to merge their downstream operations in the U.S. A similar branded car wash program was developed for the Texaco brand.

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