» Brand Management Support Provided By McFarlin Group Marketing

Background.

In 1993 Texaco was searching for a vendor to become an integral part of their marketing team. They were looking for a smaller firm, more of a “boutique” firm, as opposed to their mega- ad agency that handled media advertising. The hope was that the smaller firm would be more flexible and able to deliver at the fast pace Texaco was looking for. In short, Texaco wanted to find a marketing and communications partner to help them manage and grow their brand.

Capabilities they were seeking included:

• Marketing direction, ideas

• Strategies & consultation

• Brand development

• Program development

• Graphic design

• Copy writing (great skills in both creative and business focused writing)

• Public relations support

Texaco was a large organization with a sizable network of employees, channel partners and vendors. Texaco wanted a vendor that could quickly grasp corporate needs and understand the company's infrastructure and network of intermediaries, as well as supplier/customer relationships.

By 1998, after using our firm for five highly successful years as Texaco's primary marketing and communications agency, Shell and Texaco formed a joint venture to merge their U.S. refining and marketing operations.

Following this merger, our marketing firm became the primary marketing and communications agency for Texaco and Shell.

Shown below are examples of brand management tools and marketing programs we created. (click on images to enlarge view)

» Best Practices Learning Tools.

These items were developed to help franchisees grow their businesses.

 

» Merchandising Assistance

Background.
The Shell and Texaco network numbered over 25 thousand retail outlets in the U.S. Over one thousand of these were company-owned stores. Most of these were essentially convenience stores with fueling islands attached. A dedicated merchandising management team, consisting of category managers, oversaw these operations. Over time, a great deal of knowledge, experience, and valuable purchasing power was acquired by this merchandising management team.

Objective

To create an ongoing program that would transfer the knowledge and best practices of category management to the non company-owned retail outlets. The program we created consisted of printed documents guiding retailers through the program and an interactive web component allowing retailers to combine their purchasing power and get the latest updates. Key aspects included:

• Comprehensive program guide for sales consultants;

• Guide to space management;

• Guide to package beverages;

• Guide to priority categories including cigarettes pre-paid phone cards, cold dispensed beverages and hot dispensed beverages;

• Guide to top SKUs;

• Guide to shelf labeling software;

• Guide to equipment;

• Monthly promotions;

• Guide to interior graphics

» Co-branding Assistance

Background.
As the retail petroleum industry became increasingly competitive, it was essential for retailers to develop other revenue streams to maintain profitability. At the same time, there was an explosion of available co-branding franchise choices, especially in the fast food sector. This presented the retailers with both great profit opportunities, and potential risks if the decision to enter into a co-branding venture was made without a solid understanding of the co-branding business.

Objective

To create a co-branding assistance program that would:

• Explain the co-branding concept and its evolution;

• Outline assistance

available to the retailers from Texaco;

• Provide site evaluation and analysis tools to assist the retailers in making the right decision on the co-brand partner;

• Summarize information on available co-brand partners; and serve as an information guide highlighting issues pertinent to co-brand franchise operations, especially fast food service.

 

 

Program Implementation
We created a comprehensive co-branding assistance and information guide which included the following topics:

• Co-branding opportunity: concept, evolution, potential rewards and pitfalls, products and services available for franchising;

• Co-branding assistance program: available site evaluation and analysis tools, co-brand application submittal assistance, pre-negotiated contracts and reduced franchised fees, ongoing review of additional co-brand partners, complementary programs from Texaco (e.g., facility development financing, leasing);

• Site evaluation and analysis tools: fast food propensity report, site review scorecard, co-brand franchise comparison worksheet, checklists of decision factors to consider;

• Available co-brand partners: franchise and royalty fees, space and investment requirements, customer profile, average revenue and profit margin;

• Co-brand application form, sample correspondence, typical application process timelines; and

• Information guide: signage and floor plans, fast food service fundamentals, food spoilage/theft/portion control, labor management and scheduling, health, hygiene and safety, food borne illness prevalence and control measures, advertising and promotion, customer service, security.

After the release and proven success of this co-branding assistance and information guide, Texaco International commissioned us to create a similar guide for use by its subsidiaries. Since Texaco International had an advisory role and no direct operational responsibilities, the international version would need to include an additional component covering information that the local management in each country could use to establish its own co-branding assistance program. Applicable topics in the U. S. version were revised for international use and the following topics were added:

• Local co-brand partner selection guidelines and tips, that can be used by the local management in each country to identify and evaluate local co-brand partners, in addition to the global co-brand partners available;

• Factors that drive co-brand success and examples of successful co-brand alliances; and

• Co-brand franchise pro forma analysis model and instructions.

» Brand Standards Assurance Tools.

These items were developed to ensure consistency across the network.

 

» Brand Standards Guide.

Consistent Brand Experience.
To improve brand integrity, consistency and customer service across Texaco’s network of retail outlets, this Brand Standards Guide we developed this tool. It is a primary communication document to be used in conjunction with a facility scoring system to evaluate the level of brand standards compliance at each retail outlet. This easy to understand guide provides retailers, brand representatives and mystery shoppers clear guidelines to understand and implement needed improvements.

» Branded Car Wash Brand Standards & Operations Guide.

Consistent Brand Experience.
To improve brand integrity, consistency and customer service across Shell’s network of branded car washes, this guide was developed. This easy to understand guide provides retailers, brand representatives clear guidelines.

» Retail Facility Growth Programs.

These items were developed to help retail facilities expand their business and acquire new businesses.

 

» Facility Development Financing Program

Background
Texaco rolled out updated facility design and image standards. To encourage and facilitate its network of independent retail facility operators to upgrade to new standards, and to meet environmental regulations, Texaco teamed up with a major financial institution to provide capital improvement and facility development financing to qualified current and prospective independent dealers. Comprehensive guidelines and program materials were essential to ensure that the loan application process would be streamlined and expedited, while minimizing loan default risks.

 

Objective
To create comprehensive and easy-to-follow collateral materials, an intranet site and a financial analysis tool for both the customers (current and prospective independent dealers) and internal field organization personnel (Brand representatives) to effectively roll out, promote and execute the financing program. The financial analysis tool should be run on a laptop computer so the Brand representative could use it to provide instant feedback on the proposed project economics when meeting with the customer.

 

Program Implementation
For the customers, we created an introductory brochure and a loan application kit. The introductory brochure was an attention-grabbing sales tool that was distributed to the network of independent dealers to announce the availability of the financing program. The loan application kit was a comprehensive resource guide, which included:

 

• A detailed step-by-step guide to walk the customers through the whole loan application and funding process;

• A project worksheet that helped the customers to analyze the facility development costs, projected revenues and expenses;

• Checklists for each phase of the process; and

• Loan application forms, with plainly-stated loan terms and conditions.

Brand Representatives
For the Brand representatives, we created a program workbook, which was an all-in-one resource guide the Brand representatives could rely on to facilitate their customers’ loan applications and to provide additional consultation.

 

The workbook contained:

 

• A detailed step-by-step guide through the loan application and funding process, from the Brand representatives’ perspective;

• Succinctly-summarized program administration guidelines and loan terms and conditions;

• Cash flow analysis model and instructions, which could be used to demonstrate to customers the bottom-line impact of the capital improvement project and to perform "What If" analysis; and

Additionally, we created an intranet site to track and focus tasks and activities and to help field personnel get answers when they need them. The intranet site automatically generates time-sensitive e-mail messages in sequence from relevant departments to keep everyone informed and in the loop. The intranet site also provides program updates and allows management to supervise the activities of all parties. Training materials were also provided for head office personnel to introduce the program to field organizations.

After Shell and Texaco merged their downstream operations in the U. S., we revised all program materials to reflect changes to the organizational structure and administrative procedures, and to support both brands.

 

Results:

 

• Over $100 million in loans funded to date

• Increased fuel sales to independent dealers and franchise royalty fees

• New independent dealer accounts

• Improved brand representation<

» Franchise Solicitation Tools.

These items were developed to help bring in new retailers and wholesalers:

 

» New Retailer Solicitation Brochure.

Consistent Brand Experience.
This brochure was developed to support an initiative to add new retailers to the Texaco brand.

» Branded Convenience Store Solicitation Brochure.

Recruitment Program.
This brochure was developed to support an initiative to add branded convenience store retailers to the Texaco brand.

» None-fuel Profit Center Programs.

This extranet website allowed service bay operators access to program assets online.

 

» Shell Auto Care Service Bay Program.

Franchisee Support.
This website was developed to support Shell service bay operators.

» Branded Car Wash Program

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 continued to be under competitive pressure at the time, there was a gradual trend toward treating car wash as a stand-alone profit center. Pilot location results would be used to refine the program for phase two program roll-out.

After extensive consumer research and years of proprietary chemical product development, Shell Oil Products Company contracted us to help them develop 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.

Phase 1 pilot site exterior design.

 

» 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.

 

» Phase 2 Shell FormulaFinish and Texaco StarFinish

Branded Car Wash exterior facility updated design by McFarlin Group to enable a consistent branding standard and simplified permitting process across all regions.

 

 

» Local Store Promotions.

A key element in retailing success.

 

» Local Car Wash Marketing Campaign.

We tested several methods for car wash promotion at the local level, tabulated the return rates and created grand-opening promotion packages incorporating the elements proven effective in our tests. The numerous other campaigns 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.

» 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.

 

» Branded Car Wash Introductory Brochure.

Consistent Brand Experience.
To introduce the Branded Car Wash Program to the Shell and Texaco network of regional marketing office, retailers and wholesalers, this brochure was developed.

» Branded Car Wash Brand Standards & Operations Guide.

Consistent Brand Experience.
To improve brand integrity, consistency and customer service across Shell’s network of branded car washes, this guide was developed. This easy to understand guide provides retailers, brand representatives clear guidelines.

» Cashier Training Guide.

Promoting car wash sales.
Designed to improve the cashiers knowledge about the car wash and increase car wash up-sales.

» Program Guide.

Developed Fro Internal Personal.
Program Guide was developed to communicate guidelines, procedures and benefits to internal personnel.

» Website.

We developed an Intranet site to facilitate effective communication among all internal personnel and easy access to program information and updates.

» Site Potential Analysis.

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. We also developed a computer-based site analysis model to assist in economic analysis and perform "What If" scenario analysis.

» Planning Commission Submittal Materials.

We prepared a planning commission submittal package to facilitate consistent permitting across the U.S.

» Dispenser And Car Wash Entrance Menu.

Modular menu system designed to support current local promotions and allow easy price adjustment.

» Complaint Handling.

A comprehensive complaint handling system was developed to handle potential damage complaints. Starting with video cameras placed at the car wash entrance to record the exact condition of the vehicle the retailer could establish if any damage complaint could be supported by the video record. If the car was damaged a step-by-step on-site complaint handling procedure was established to seamlessly provide customer satisfaction.

» LAX Parking Concept Gets Strong Branding, PR & Media Coverage.

Click Below To Listen To Memorable WallyPark Radio Spot

Client: Dry Dock Dollar Bank Of New York
In Los Angeles and surrounding communities, where people virtually live in their automobiles and at a time when consumers were inundated by "designer" everything, we positioned WallyPark as the world’s first “designer” parking facility offering more services and amenities than any other parking lot around the L. A. airport area.

Background

Regency Development is a Los Dallas-based commercial real estate development firm serving financial institutions and the private investment community. A review of a property Regency managed for Dry Dock Dollar Bank near LAX revealed that the high-rise building was originally constructed with insufficient and cumbersome parking. A solution to the parking problem was not possible within the structure itself. It was therefore necessary to look elsewhere for parking. Parking was already in short supply near the airport and the solution was to acquire an adjacent property and develop it as a parking structure in order to return the original high-rise property into a viable business proposition. However the new parking structure required an investment of $30-million. This investment would have to be justified. We were retained to create marketing program for this new parking structure to enable this business to prosper on its own.

» Results After McFarlin Group PR Positioning & Press Release.

Following a very creative product positioning as the worlds' first "Designer Parking" below a small sampling of the hundreds of news articles about WallyPark that appeared across the country following our news release.

» WallyPark Grand Opening Covered By ABC, NBC & CBS News

The three major networks all did news coverage following the grand opening.

Results.

In addition to receiving positive news coverage we targeted frequent flyers through a direct mail program and aired the WallyPark radio spot during rush hour drive times. Projections indicated WallyPark would reach 70% capacity within two years. Based on the overwhelming success of our marketing campaign WallyPark reach 90% capacity within 3 weeks.

» Tanning Bed Brand Gets Worldwide Revitalization.

Client: Dr. Müller Tanning Systems
Well-respected tanning booth manufacturer based in Germany, asks us to revitalize its brand image and launch a marketing initiative in three key markets – Western Europe, North and South Americas.

Objective

• To develop an entirely new and completely updated corporate image and product identity that would have worldwide appeal, and

• To design a marketing program to position Dr. Müller Tanning Systems at the forefront of the tanning industry.

Program Implementation

We designed a multi-faceted marketing program, with tanning salon retailers being the primary target audience, which would position Dr. Müller products as a cut above the competition, including:

• The development of an updated product identification system to make the tanning machines more appealing to consumers;

• A corporate facilities/capabilities brochure, produced in five languages, that highlighted the firm’s long history in developing tanning products—beginning with the invention of the quartz lamp by the company founder, Dr. Müller—as well as showcasing the superior products, technology and operations of the company today;

• A trade campaign including trade publication print advertising and regular editorial exposure through ongoing press releases;

• Direct marketing program to tanning salon retailers which included product and technology updates, salon management advice, third party endorsements, along with an innovative leasing program developed exclusively for Dr. Müller products; and

• In-store point-of-purchase materials designed to create an inviting ‘spa’ atmosphere of relaxation and enjoyment of the tanning experience.

In the United States, the marketing initiative quickly grew into the "Total Salon Concept" named Solar Planet. We worked closely with Dr. Müller’s U.S. distributor to create an integrated tanning equipment/marketing program package, which included everything from interior store layout and design, electronic point-of-sale software and financing assistance to training and local store marketing.
Results

Dr. Müller Tanning Systems enjoyed a dramatic increase in sales and recognition in all markets as a result of this marketing initiative. The company is currently the industry leader in market share, tanning product technology and sale.

» Logo Branding System.

» U.S. Solar Planet Franchise Launch

Client: Solar Planet Tanning Salons
North American distributor launches tanning bed franchise.

Objective

• To develop an entirely new and completely updated corporate image and product identity for the U.S. market, and

• To design a marketing program to position Dr. Müller Solar Systems at the forefront of the tanning industry in the U.S.

» McFarlin Group Marketing Tackles Sensitive Affirmative Action Initiative.

Client: Texaco & Shell

Spurred on by record $173 million affirmative action Federal Court settlement, Texaco launches an initiative to improve the composition of its network of independent retailers to better represent the communities they service.

Objectives

• Bring in new independent retailers who are socially and economically disadvantaged;

• Align with business objectives; and

• Promote and expand the Texaco convenience-store franchise.

Program Implementation

In business, it is one thing to create short-term solutions that are ‘topical treatments’ that fix current problems without addressing the long-term implications. It is quite another to create long-term, methodical solutions that complement and align with business objectives and therefore become fully integrated into the day-to-day operations.

• We designed a multi-faceted program that would solicit individuals who were socially and economically disadvantaged, screen them for basic business skills and entrepreneurial aptitude, provide them with retail petroleum and c-store operations training, and assist them to establish their own business with a Texaco convenience store franchise. We worked closely with a cross-functional team within Texaco to ensure that the program would have support of the whole organization and be integrated into the corporate operational structure.

• We assembled, categorized and summarized all domestic news articles covering issues of diversity in the workplace for management review. We created an introductory brochure to announce the program, prepared press releases, tracked press clippings, created and placed advertisements in minority and women’s publications, researched and communicated with 450 minority- and women advancement organizations nationwide to inform their memberships about the program.

• We formed a “Speakers’ Bureau” and scheduled a national “Road Show” to promote the program in various communities across the country. We developed and produced a 30-minute audio/video exhibition for this promotion.

» Online Creation of Custom Local Store Marketing Materials

Client: Shell

Background.

Retail businesses derive their revenues primarily from consumers who live or work in the neighboring areas. In addition to factors such as convenience, price, customer service, brand recognition, retailers must also conduct local store advertising and promotions to attract customers and win over competitions that offer similar products and services.

Conventionally, retailers may work with advertising or design agencies, or use off-the-shelf graphic design software to create custom local store marketing materials. If the marketing materials are to be printed then delivered or mailed to customers, the costs of such small print jobs are relatively expensive and may outweigh the benefits of local store marketing.

Objectives.

We developed local store marketing campaigns for Texaco-branded retailers in several metro areas and managed local store marketing activities in association with a branded car wash program roll-out. We witnessed many of the inefficiencies that were inherent in this process. In early 2000, as the majority of Shell- and Texaco-branded retailers had computerized—or were planning to—their back-office operations, we created a solution to address the challenges of conducting local store marketing and presented to Shell an online, browser-based system that would:

• Include design templates that mirror Shell's national advertising campaigns and extend the brand messages locally.

• Allow retailers to select from pre-approval design templates and customize with additional elements such as images, text and coupon offers.

• Allow Shell to either provide only pre-approved elements on the website or implement online approval process for the finished designs.

• Combine printing and distribution orders to drastically reduce production costs.

System Implementation.

Shell has implemented online local store marketing and fully integrated the system with its national print and broadcast advertising campaigns. This brand strategy has been deployed in all its recent marketing initiatives, including new product roll-out, retail facility image upgrade, and proprietary credit card enrollment. The successes of these campaigns contributed to the client's increased sales.

Retailers responded positively to the introduction of the online system, stating that it offered them a marketing solution that produced higher-quality, lower-cost marketing materials and the ordering process took only minutes.

Shell's internal studies based on detailed tracking of coupon redemptions demonstrated that revenue per customer increased as a result of local store marketing and the incremental profits far exceeded the costs of promotions.

» Shell Gets New Retail Visual Identity (RVI) Standards In U.S.

Client: Shell

Background.

Shell Retail Visual Identity (RVI) program, aimed at sprucing up and standardizing Shell stations was developed by McFarlin Group. The program was easily extended to Texaco sites following an FTC ruling requiring Texaco to divest all U.S. refining and marketing assets in order to merge with Chevron.

Objectives.

To create a systematic program that would:

• Convince Shell retailers and wholesalers to update their facility design standards to the Shell international design standards

• Provide internal implementation tools including guide books and interactive digital documentation for download

• Provide a promotions center on the Shell intranet website and link it to the existing online Local Store Marketing site

• Expand the program by convincing Texaco branded retailers and wholesalers to convert to the Shell brand

• To become the number one oil brand in the U.S.

Objectives.

Shell is the largest petroleum marketer in the world. In the U.S. Shell sought our expertise to help them implement the conversion of tens of thousands gas stations to upgrade them to the international facility design standards. We were also charged with the responsibility to create a promotional program to promote and market the new facilities within the local neighborhoods across the U.S.

• We received the assignment to create the communication tools and act as the “hub” to coordinate with all of the functional groups inside Shell to design a multi-faceted program that would enable the field organization to implement new facility design standards.

• We created a Shell Retail Visual Identity digital platform within the company extent portal for implementation of both the program guidelines and consumer marketing including grand openings and online access to ongoing promotional campaigns.

By July of 2004 Shell had completed the conversion of all of its existing retail sites and converted thousands of former Texaco retail sites to the Shell brand.