Pennzoil CVP Launch Update 2.8.12a

Midas Auto Service
2014 Quaker State Partnership
Copyright of Royal Dutch Shell Plc
CONFIDENTIAL
11
AGENDA

Market Insights

Shell Portfolio

Customer Value Proposition


Driving Car Counts

Customer Retention

Profitability
Summary
CONFIDENTIAL
June 2012
2
MARKET INSIGHTS AND FUTURE TRENDS
Average Light Vehicle Age in US
11.1
9.1
8.8 8.8 8.9 8.9 9.0
8.4 8.5 8.6
10.0
9.7 9.8
9.4 9.5
10.6
10.2 10.4
Consumers turn to Fast Fits as their vehicles age
Sector Challenges.
Fast Fit Share of DIFM Quarts by Vehicle Age – 2012
(% Quarts)
 Oil Change as Traffic Builder .
 COGS Focus versus Brand Value.
 Lack of focus on buying experience
enhancement.
 Lack of focus on build trust through the
“right oil recommendation”.
Car Dealer (Warranty)
Quick Lube (Convenience)
Fast Fits (Service needs)
CONFIDENTIAL
June 2012
3
SHELL LUBRICANTS PRODUCT PORTFOLIO
Nothing is more important to your vehicle
than durability.
And that’s what you get in every Quaker State®
motor oil product. From conventional oils that
even after thousands of miles of real-world
torture still pass critical industry tests for brandnew oil to a full synthetic oil so durable that no
leading synthetic oil provides better wear
protection.* No wonder Quaker State® durability
has helped win the past five straight Sprint Cup
championships and counting.
The most preferred brand among owneroperators in the USA.
Shell Rotella® protects against wear, helps keep
engines clean, helps protect against corrosion from
acids and more. And it is backed by the Shell
Rotella® lubrication limited warranty program. So
you'll feel good knowing you're giving your truck
the protection it deserves. And you'll earn miles.
CONFIDENTIAL
June 2012
4
DIESEL PICKUPS IN THE U.S.
CONFIDENTIAL
June 2012
5
BEST IN INDUSTRY NETWORK
People/resources supporting Customers
Key Account Manager KAM
Over 50 Shell Employed Field Based Account
Managers
Hundreds of Alliance distributor field based
account managers
Shell has nationwide distribution and
delivers daily to more than 27,000
locations in the US
Distribution Center
Regional Distribution Center
Distributors
+ 2 Distributors in Hawaii
+ 1 Distributor in Alaska
CONFIDENTIAL
June 2012
6
CUSTOMER VALUE PROP0SITION
Grow
Profitability
Retain Customer
Drive Car Counts
CONFIDENTIAL
June 2012
7
HOW WE CAN HELP DRIVE TRAFFIC:

Digital Clicks

Using Google search results to direct consumers to our
customer’s website

E-coupons made available to Customers

Creating customer specific promotions that
generate repeat consumers.
CONFIDENTIAL
June 2012
8
Social Media Growth & Engagement
Quaker State is #1 in Facebook
Competitive Engagement Rates
Successfully engaging younger consumers
Women
Quaker State has surpassed all competitors in
driving the highest % fan engagement among
leading brands.
Men
Quaker State is successfully attracting a younger consumer base,
extending the reach of the brand
Key Messages from Social
1.
2.
3.
4.
Quaker State has highest engagement with fans
Social is allowing Quaker State to target younger consumers
Social offers partnerships with customers
New in 2014 – Partnership with company such as Funny or Die to
create viral videos.
CONFIDENTIAL
June 2012
9
HOW WE HELP TO RETAIN PROFITABLE CUSTOMERS:

Robust marketing plans with tactical promotional calendars to increase
retention

Unique customer retention program


Fuel Rewards Network
Industry Leading Warranty Offers

ONLY company to give Kelly Blue Book value of
vehicle at 300,000 miles to customer

Customer Tailored Offers

Focused on retaining consumers within our customers’ local markets
CONFIDENTIAL
June 2012
10
QS ULTIMATE DURABILITY IS HELPING CONSUMERS SAVE $
To sustain momentum on Ultimate Durability, QS has developed tools to show consumers
how to save on fuel:
• Providing Fuel Economy Tip Videos
— Leveraging Wayne Gerdes - World Record
FE Holder
• Launching Fuel Economy Calculator
— Calculates savings when using Ultimate
Durability and Wayne’s fuel-saving tips
• Conducting Fuel Economy Clinics At
Installer Locations
— Show consumers how to save on fuel
CONFIDENTIAL
June 2012
11
11
SAMPLE OF PROMOTIONS: DIFM CASH BACK PROMOTION
Objective: Drive consumer awareness and registrations in the Quaker State
Warranty/Cash Back program
Offer: Enroll in the QS Warranty and receive a QS Rebate of up to $20 on
your oil change... And get Cash Back when you hit 300,000 miles.
Tactics and Support:
•
POP Support - Poster, Counter Card, Direct Mail Template
•
Developing template for Midas to create their own custom landing page
•
KBB Partnership, Banner ads, Content integration
Simplify the process for consumers
•
Allow users to authenticate their account using FB, Twitter
•
Enhance mobile interface to increase engagement
•
Ability for current users to invite their friends to join
•
Adding vehicle service reminders to warranty site
CONFIDENTIAL
June 2012
12
FUEL REWARDS NETWORK PROMOTION
We’re taking the FRN program to the next
level, offing up to $1/gal FRN Reward with
purchase of a Quaker State Ultimate
Durability or Quaker State Defy oil change
$1/Gal
Cards/codes available at counter for
instant gratification
CONFIDENTIAL
June 2012
13
13
QUAKER STATE 2014 CALENDAR
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Social Media
National
Coupon
Campaign
FRN Promo (US) or
Specialty SC (Canada)
FRN Promo (US) or
Specialty SC (Canada)
DIFM National Coupon
Warranty Rebate Offer (Registration Incentive)
QS 400 customer-specific
promos
QS 400
ViscoCITY Influencer Online Training Opportunities
CONFIDENTIAL
June 2012
14
HOW TO GROW PROFITABILITY:

Be the leader in Industry and Category

Best In Class Products Available



Innovative, Environmentally Friendly, & COG’s Saving: Ecobox Product Delivery System
Award Winning Training Available
1.
Online with ViscoCITY
2.
Instant Expert
3.
On-Site
4.
Motivation and Rewards
Top Of The Line Programs Available

DIFM Cash Back Program

Training Is Key: Building Customer Trust & Confidence
We will help your teams ask the right questions, make the right recommendations.
CONFIDENTIAL
June 2012
15
TECHNOLOGICAL ADVANCEMENTS
Why are dexos1™ requirements
important?
Starting with 2011 GM model-year vehicles, installers will have to carry a
dexos1™ licensed product if they hope to service GM vehicles of the future.
Solution: Shell offers four (4) products that meet GM’s dexos requirement;
Pennzoil Platinum 5W0 Full Synthetic
Pennzoil Synthetic Blend for dexos 5W30
Quaker State Ultimate Durability 5W30 Full Synthetic
Quaker State Synthetic Blend for dexos
CONFIDENTIAL
June 2012
16
TRAINING PROGRAMS
Instant Expert Training Program
•Program Overview
• Provides product training for national and independent DIFM accounts
• Increase awareness and application of Shell products
• Provide sales tips and techniques to effectively recommend products
• Helps Improve customer relationships with personnel
• Training Format
• Train-The-Trainer Seminars, Quarterly Market Seminars, Store Level,
E-Learning, Intranet Modules and Webinars
• Training Team
• Shell Dedicated Training Manager, Shell Sales Rep and Third-Party Resources
• Key Elements
• Product features, benefits and technical attributes
• The art of trading up services
• Live product demonstrations
• Product literature, application guides, greeter cards and scripts
• Key benefits for ASE
• Helps to develop and maintain a knowledgeable, loyal staff
• Builds confidence in employees in discussing services with consumers
• Key consumer benefits
• Educated staff
• Standardized service procedures
• Support
• Training seminars available in single market setting or on a store level and can be customized to fit your needs
CONFIDENTIAL
June 2012
17
VISCO CITY SLIDE
CONFIDENTIAL
June 2012
18
Innovative Ecobox™ Delivery System
CONFIDENTIAL
June 2012
19
In Summary: Why Shell Is The Best Partner
Shift the
Mix
Leveraging Brand Strength:
• Quality Products: QS & Rotella
• Industry leading technology
• Best in class distribution
• Store level field support
• Competitive Pricing
• On-site Signage & POP
Leveraging
• Quaker State 400
the Brand
Strength
Traffic Drivers:
• National Promotions
• National Advertising
• Account Specific Promotions
• Consumer Insights
• Digital Google Clicks
• National E Coupons
Value Added
Customer
Focus
Drive
Traffic
Training & Operation Programs:
• Online Information Programs
• www.viscocity.com Visco City
• Instant Expert Training
• On-site Coaching (Key Accounts)
• Ecobox™ delivery vehicle Premium Oils
• Premium Oils Profitability Coaching
Retention
& Loyalty
Consumer Retention Programs:
• Quaker State Warranty “Buy-Back”
• Service Certificate Programs
• Shell Fuel Rewards Network
CONFIDENTIAL
June 2012
20