Preem Petroleum

Fueling a petrol station’s retail experience

Research indicated that Preem attracted more female customers, so to appeal to them we recommended that the brand position itself as a retailer with a petrol offer rather than a petrol station with a retail offer. From strategy to the branded environments, we designed everything with women in mind, paying special attention to ensure nice restrooms.

Overview

Preem is a major Swedish petroleum company with retail petrol and convenience store (c-store) offers. Ongoing petroleum price wars in Sweden had eroded petrol sales profits to almost nothing. A chocolate bar in Sweden had a 40 percent higher margin than a liter of petrol. Because it was too expensive to close stations due to high environmental costs, and with no buyers in an over-saturated national market, Preem saw its future salvation, and only hope of retail profitability, coming from its c-stores, rather than petrol sales.

Challenge

The brand challenge was to bring Preem’s retail business back into profit and achieve a 40 percent increase in sales over five years. With an old-fashioned retail offer, Preem needed to find a point of difference for the brand and its c-store offer, refresh its image, and refit its sites. Research indicated that Preem attracted more female customers and was perceived to be more caring and friendly than its competitors. It was decided to do what no one else in the market had done before–directly target female customers. Landor’s recommendation was to reposition Preem as a retailer with a petrol offer rather than a petrol station with a retail offer.

Solution

From the brand strategy to the design concept and product offer everything was created with women in mind. The solution separates “carbohydrates from hydrocarbons” through the use of color and transforms the experiences most important to women-the petrol station forecourts and c-stores. Forecourts are more brightly lit, food is fresher and healthier, and toilet facilities were redesigned to be the best petrol station toilets, bar none. At pilot Preem service stations initial sales results from 19 May 2006 to 21 July 21 2006, compared with the same period in 2005, saw a 28.8 percent increase in fuel volume and a 146.1 percent increase in fresh food sold.