Kuzminblog

Changing the world for better… at least the world of gas stations)

Month: March 2016

Coffee culture and spiritual braces

Starbucks is having problems. Again. At this time, customers in California believe they have not enough milk in their latte. IMHO (personal opinion of the author), whatever has been written about Starbucks it’s more popular than all other coffee houses in America put together.

Any American shopping mall is full of coffee establishments, but half the tables there are usually free. Only at Starbucks you may see a line of people from opening morning hours till late at night before closing. It’s coffee culture and “spiritual braces”.

You can only manage what you can measure

Still, there’s actually a real problem remaining. Underfill of milk is the most common complaint of customers at gas stations. You will be surprised how easily it can be solved. Milk actually is poured badly because the coaffee machines aren’t being washed properly.

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Private label goods – a trend in demand by gas stations chains

How we started to work with the products under the brand name of our private label, how we were developing this direction and what conclusions we’ve drawn. >>

This material includes, perhaps, a one fifth part of the story, so the full version is available to read in the blog.

We’re thanking the magazine “Trick of the trade”, which gave the opportunity to speak out on the important subject for us. Because the private label goods for hypermarkets and private label goods at the gas stations require a different technology to be applied, pursue different goals and objectives, have different pricing and so on and so forth. We’ve said it and we will repeat it for 100-500 times. Those who have already realized this, please, do not be offended.

In terms of shopping malls business, RusHOLTS is now among the five largest suppliers of automotive products for the relevant departments of the federal hypermarket chains. We started off developing our business in the 90s by supplying chemicals and auto cosmetics. In the Russian market we were the official representatives of world’s two huge brands – Holts and Redex. At that time in our country there was no hypermarket chains and gas stations chains have only been planned to start manage its shops on a unified and centralized basis. Then there was 1998 defaulted payments crisis.

The people stopped buying expensive imported car cosmetics, but no one refused from the use of the cars and their quantity only grew. Then we decided to create our own full-scale range of chemicals and auto cosmetics from fluids and fuel additives to polishes and air fresheners. So that niche of autochemistry saw import substitution by Russian-made goods as early as in 1998. Many well-known brands in this direction became the history since that time. Products created by us were unified under the umbrella brand EXPERT.

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Why retailer needs its own chain of gas stations?

Walmart to create its own network of filling stations

What is more important for a modern gas station- gasoline or store? For western retailers this issue has beenresolved long ago. Fuel sales attracts more buyers, increasing efficiency and allowing the store to recoup substantial part of the costs for the maintenance of core business. In the Russian consciousness gasoline has the added value that is not comparable to any “related” business. The top priority for any manager of Vertically Integrated Oil Company will be the fuel. Why? Because the fuel is a staple of any oil company focused exclusively on oil production and refining.

In the West there always have been the retailers owning gas station chains. Thus it is not surprising that the development of its shops and cafes is considered by them as a priority business. (Couche-Tard, Costco, 7-Eleven, Tesco). The combination of classic retail and gas stations works well at improving the traffic in shops in terms of attracting additional customers. In Russia, such a model was implemented by “Lenta” and Neste without unified business management center, each of the partners was to manage their part of the project. But we must remember that Walmart is the world’s largest business network, the scope of future reforms is impressive.

You want something done well – do it yourself

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