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2009 convention recap

BP and BP Amoco Marketers Association Collaborate to Deliver the Difference at the 2009 BPAMA Convention & Business Expo

Headlines in the news, financial pages and industry press have been dire throughout the last 18+ months. Declining demand, tightened budgets, volatile margins and an over supply of retail locations have been just a few of these headlines. It’s enough to have any business owner questioning their future.

Earlier this year, the BPAMA Board of Directors took a hard look at the economic landscape and the realities facing marketers when determining whether to hold its annual convention. While other national branded associations decided to call off their meetings, the BPAMA Board and BP took a bold step and committed to deliver the convention. “As part of our vision and mission it was imperative to our members to come together to see, hear and learn from BP, industry experts and their peers about how to succeed in a down market,” stated BPAMA executive director John Kleine.

With the largest turnout in its history, the 2009 BPAMA Convention & Business Expo was a great success for BP, marketers and other supplier companies. Attendees gathered for three days of business meetings, general sessions, educational workshops, the Expo and quality networking time. These marketers made the investment in the future of their business by attending the convention, and are now better prepared to emerge from the recession.

Over the last six months, the BPAMA and BP worked diligently to create a compelling, informative and actionable agenda for attendees. “The vision of BPAMA is the voice of marketers that elevates the BP Brand and BP Marketers to best in class,” stated Bill Tome, president of Mark Oil (NC) and current BPAMA chairman. “Our mission is to ensure the exchange of ideas between marketers, BP and vendors to formulate mutually beneficial policies and programs. We do this through the collaboration of innovative thinkers and companies, and we DELIVER THE DIFFERENCE.” It is our annual convention that provides the venue for this exchange, and sets the stage for year-round collaboration.

Your Leadership

Marketers had the opportunity to hear from the BP leadership team about BP’s commitment to the US and to the marketer channel of trade. “Through our strategy, BP has consistently delivered progress in a tough environment and gained significant strength over the past three years,” stated BP President, East/Gulf Coast fuels value chain, Corey Correnti. “With the advantaged refining and supply, our advantaged footprint and sustainable demand, BP continues to deliver the best brand to its customers, and a distinctive value proposition to the consumer.”

“You are our chosen channel of trade, and we are committed to delivering success for you and BP,” stated J.R. Thomas, BP President Midwest fuels value chain. “We are committed through distinctive customer offers; consistent investment in the infrastructure with brand and local marketing support; and our technology in fuels, CommLinx, Price Rollback and Biofuels.”

Together BP and BPAMA have been able to deliver great value to our branded marketers. These accomplishments include: the Joint Scorecard, supply reliability, product strategy, Helios 100, local marketing and the new price rollback program. Through the continued collaboration we are able to ensure a distinctive way to deliver – local focus on a national scale. “Through collaboration, innovative thinkers, experienced leaders and proven practices, marketers and BP come together to make BPAMA unique in the industry. It is the only association of its kind that focuses on programs and education to increase profitability and drive unsurpassed performance for the marketer and the brand,” said John Kleine, BPAMA executive director.

Delivers Insight

One of the goals of the convention was to bring a variety of industry experts to address critical issues faced by marketers. Common messages emerged regarding how to succeed when faced with obstacles. Ken Czubay of Ford and five-time Olympian and BP brand ambassador shared common messages on focus, team work and an unwavering dedication to their brand. Economist Phil Verleger and Czubay shared that successful companies in this recession will aggressively restructure to operate profitably, work to improve their balance sheet and look to new products. Verleger shared his thoughts for marketers looking to succeed: consumer wants quality and low prices, focus on your balance sheet and cash flow, aggressively trim unproductive sites, embrace new energy products, seek out first mover advantages, watch for opportunistic acquisitions and monitor your suppliers.

Additional insight into the future of renewable fuels and an outlook on consumers was provided. Matt Caswell, US federal policy manager from BP, walked attendees through policy and regulations, business impacts and gave an outlook on advanced biofuels. Consumer strategist Derek Stubbs of Iconoculture also shared his thoughts on the current state of the consumer whose focus is on thrifty spending and increased saving.

Delivers Solutions

One of the primary reasons marketers attend the convention is to learn about new programs and products. And 2009 didn’t disappoint. Kevin Phelan, BP vice president of marketing, presented the breadth of the BP offer available to marketers. The BP consumer value proposition is built upon differentiated fuels and a consistent site experience.

Leading the 2010 programs is the new Price Rollback program. BP is the only branded oil company to have a network-wide loyalty offer for consumers. Through leading technology, the Price Rollback program will allow consumers to get cents off per gallon. The fuelperks! Program is the leading fuel reward alliance program in the U.S., providing consumers with cents-per-gallon rewards for making purchases at over 500 grocery stores, including Giant Eagle, Roundy’s, Bi-Lo, Ukrop’s and Winn-Dixie locations. BP and Excentus expect to expand the program with both new and existing fuelperks! partners, with the goal of delivering incremental gallons to participating fuel marketers.

BP gasoline with Invigorate has established BP as a leader in gasoline by growing market share and delivering increased gross margin. With consumers focusing on value, Invigorate provides the competitive edge to marketers by offering a brand that will help consumers cars live younger longer. BP is the only major with a branded diesel offer, which allows BP marketers to differentiate themselves in a category of fuels with a solid demand forecast.

Phelan emphasized that competition is fierce for the gas consumer, and BP is well positioned with its products, offers and programs to provide a great site experience for the consumer. The Helios 100 program is a proven tool to help marketers ensure that each site meets consumer expectations and that it ready to face an increased competitive market.

Steve Uphoff, president of Southside Oil and a BPAMA Board Member, introduced attendees to a joint venture between BPAMA and BP called the Marketer Institute of Excellence (MIE). The MIE is a cohesive suite of educational programs designed to strengthen the business capabilities of marketers. “Jobbers have been involved all along the way, from curriculum input to pilot classes. BP has made a major investment into this program to strengthen marketers in operations and finances. They funded the development,” said Uphoff, and he added “tuition is eligible for Coop funds.” The MIE steering committee determined there were three curriculum priorities relative to our businesses today. First, the financial strategies class is about banking relationships, keys to strong balance sheets and asset management are instrumental in the survival during and beyond these challenging times. The next class tackles many of the operational and relationship issues we have with our dealers every day. Market planning is in the planning and development stages with a pilot scheduled for January 2010. Over the next few years, sessions on Asset Management, Leadership, Operational Excellence and Technology, all important parts of our business, will be available to all BP branded marketers.

Attendees had the opportunity to meet with more than 70 exhibitors on how their products and services can deliver the difference to marketers. Through the generous support from convention sponsors and the commitment of these exhibitors, attendees spent six hours engaging with suppliers about programs unique for the BP branded marketer and learning how to differentiate themselves in the marketplace.

Deliver Knowledge

Education is a key element of all successful organizations, and is the backbone of the BPAMA offer. Marketers, industry experts and BP personnel lead a series of workshops and success stories designed to help marketers be best in class. Topics included:

  • Successful dealer operations - Presented by the Marketer Institute of Excellence, the session introduced a scorecard designed to help marketers and their dealers build sustainable and mutual success. Attendees learned how to align their offer with dealers’ needs and build participation in revenue-producing programs.
  • A focus on fundamentals with Corrigan Oil – A close look at a marketer in Michigan and how they place the customer as #1, hire the best people, focus on growth by constantly looking ahead, and where the leadership is focused on the fundamentals.
  • Fueling the FIRES with Highland Corporation – How one marketer confirmed it is people that make the difference, and has invested in creating a vision statement of “Family, Integrity, Respect, Excellence and Service” which is instilled in every employee.
  • Getting ready to see the banker – Marketers are operating in one of the tightest credit markets in history. Presented by the Marketer Institute of Excellence, the session introduced a new tool, Financial Site Evaluation software (FSE), which will aid marketers in preparing the complete bank loan package. Attendees learned why banks have tightened lending policies, who decides credit worthiness, and what is needed in a loan package.
  • Invigorate – the science behind performance - Hosted by members of BP’s Global Fuels Technology Team, the workshop focused on how gasoline detergent additives work in today’s engines. The session addressed the chemistry and effectiveness of these types of additives and how they’ve changed over the years compared to the types we have today; and emerging trends in vehicle powertrain technologies and how BP is prepared to meet those challenges. Attendees learned about the influence of government regulations on the use of these types of additives and how marketers can choose a low-cost or high-value approach toward their selection of full deposit control additives will be covered.
  • Tools for market planning and real estate optimization - Many marketers are getting a wake-up call due to the decline in demand and oversupply of retail sites, and analyzing current and/or potential sites is the key to survival. This session featured Bill Tome of Mark Oil and John Phelps of Carroll Independent in an open discussion about how they have relied on facts, scrutinized the numbers and worked with external resources to make the right decisions for their company. The panel was joined by representatives from MPSI and Matrix Capital who each provided a perspective of how marketers can more effectively evaluate sites and determine the future of their business.
  • How to validate PCI compliance – Attendees were reminded of the various PCI implications for their business and the deadlines they must meet in 2010. BP announced that it has formed an alliance with Trustwave to assist marketers in validating their annual compliance audit and providing the certification necessary.
  • The Petroleum Marketers Practices Act (PMPA) – Bob Bassman led a lively discussion on legal matters facing marketers. In covering the PMPA, Bassman reviewed what the Act does and doesn’t do, the process of a claim and the four most frequent mistakes marketers make. Other topics covered included the 10 steps to terminate or non-renew a franchise, and the five most frequent contract disputes and how to protect yourself.

The Take-Aways

In his closing remarks, BPAMA Chairman Bill Tome shared with attendees that these were the things, along with numerous tactical learnings, he is taking back to his team at Mark Oil:
“We have a great brand; we have a great heritage in our industry of adapting and surviving; we are great innovators; we must build and execute new strategies because the way we are doing it now or before will no longer work; we have these abilities to make these strategies come to life; and we have this association, the best in our industry.”