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In 2008, to Compete With the US Increasing Gas Sales, Gas Stations Must Re-Evaluate Their Business Models

October 20, 2008

Research and Markets (http://www.researchandmarkets.com/research/a2b90d/gas_stations_in_th) has announced the addition of the “Gas Stations in the United States 2008″ report to their offering.

Gas prices are at an all time high, which has led to increasing gas sales. Yet, consumers are driving less, seeking transportation alternatives, and shopping-around for deals. To compete, gas stations must re-evaluate their business models. At the heart of this, station operators need to look at creative ways to attract customers.

This report outlines a number of strategies for differentiation:

What foodservice offerings will be most effective?

How extra services can lure in a new breed of customer?

How to best target Hispanics, families with children, larger households, and young adults?

How payment alternatives can ease the burden of credit card fees and how to implement these changes?

Key Topics Covered:

Scope and Themes

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Key points

Gas prices alter the market dynamic

In-store activity needs to increase

Foodservice the “next big thing”

Beyond foodservice

Convenience still at the core

Special features can make a difference

Advertising an essential effort

Branding can present a pitfall

Key demographics

Families with children and large households

Younger respondents are also making more trips to gas stations

Hispanics deserve special attention

Market Size and Forecast

Key points

The joy ride is over

Yet retailers continue to battle for customers

Figure 2: U.S. sales at gas stations, 2003-13

Figure 3: U.S. sales at convenience stores, 2001-12

Segmentation

Key points

Gas ultimately is not the profit leader

In-store holds challenging potential

Figure 4: U.S. sales at gas stations with convenience stores, 2001-12

Figure 5: U.S. sales at other gas stations, 2001-12

Figure 6: U.S. sales at gas stations, by segment, 2006 and 2008

Figure 7: U.S. Motor fuel sales at convenience stores, 2002-12

Figure 8: In-store sales at convenience stores, 2001-12

Figure 9: U.S. sales at convenience store, by segment, 2005 and 2007

Decision Making Drivers

Key points

As gas prices hit all time highs…

Figure 10: Average annual crude oil pricing, 2002-06

Figure 11: Average gas price, third week of July, 2004-08

…people drive (and spend) less and hunt for bargains

Desperate consumers shop around

The many-headed hydra of cash versus credit

What’s bringing them in-store – Foodservice highlights

Figure 12: Growth of foodservice in c-stores, 2004-07

Prepared food

Hot dispensed beverages

What’s bringing them in-store – merchandise highlights

Figure 13: Growth of merchandise in c-stores, 2004-07

Tobacco

Packaged beverages

Beer/malt beverages

Brand Qualities

Key points

Perception of oil companies getting richer

Marathon Oil Corp.

BP

Innovation and Innovators

Key points

Offering “win-win” payment alternatives

“Green” gas stations

Beyond the traditional format

Offering alternative fuels

Ethanol

Biodiesel

Fuel Cell Vehicles

Advertising and Promotion

Key points

Foodservice bargains

“Pumpvertising”

Our gas is better than their gas

Campaign spotlight – Passionate Experts

Figure 14: Shell television ad, 2007

Television ads

Figure 15: am/pm television ad, 2007

Figure 16: am/pm television ad, 2007

Figure 17: Citgo television ad, 2007

Figure 18: Marathon television ad, 2007

Figure 19: Speedway television ad, 2007

Figure 20: Speedway television ad, 2007

Figure 21: Speedway television ad, 2007

Figure 22: Speedway television ad, 2007

Figure 23: Speedway television ad, 2007

Figure 24: Valero television ad, 2007

Figure 25: Valero television ad, 2007

Key Demographics

Key points

Children and larger households drive trips

Figure 26: U.S. population projections of kids, by age, 2003-13

Figure 27: Number of married and single U.S. households with children, by age, income and race/ethnicity, 2005

Hispanics have more kids and prefer a more intimate shopping experience

Figure 28: U.S. population, by race and Hispanic origin, 2003-13

Figure 29: U.S. buying power, by ethnicity, 1990-2011

Frequency of Gas Station Visits

Figure 30: Frequency of gas station visits, presence of children in household, July 2008

Figure 31: Frequency of gas station visits, by number of people in household, July 2008

Figure 32: Changes in number of gas station visits, by age, July 2008

Figure 33: Changes in number of gas station visits, by presence of children, July 2008

Figure 34: Impact on driving due to high gas prices, by age, July 2008

Figure 35: Impact on driving due to high gas prices, by presence of children, July 2008

Average Expenditure

Figure 36: Average spent per week at gas stations, by presence of children, July 2008

Figure 37: Average spent per week at gas stations, by number of people in household, July 2008

Items Purchased

Figure 38: Items purchased at gas stations, by age, July 2008

Figure 39: Items purchased at gas stations, by presence of children, July 2008

Types of Food/Drink Purchased

Figure 40: Food/drink purchased at gas stations, by age, July 2008

Figure 41: Food/drink purchased at gas stations, by region, July 2008

Attitudes About Gas Stations/Reasons For Not Purchasing

Figure 42: Attitudes about gas stations, by age, July 2008

Figure 43: Attitudes about gas stations, by number of people in household, July 2008

Figure 44: Reasons for not buying things other than gas, by age, July 2008

Figure 45: Reasons for not buying things other than gas, by presence of children, July 2008

Race and Ethnicity

Frequency of gas station visits

Figure 46: Frequency of gas station visits, by race/Hispanic origin, July 2008

Figure 47: Changes in number of gas station visits, by race/Hispanic origin, July 2008

Figure 48: Impact on driving due to high gas prices, by race/Hispanic origin, July 2008

Average expenditure

Figure 49: Average spent per week at gas stations, by race/Hispanic origin, July 2008

Items purchased

Figure 50: Items purchased at gas stations, by race/ethnicity, July 2008

Types of food/drink purchased

Figure 51: Food/drink purchased at gas stations, by race/Hispanic origin, July 2008

Attitudes about gas stations/reasons for not purchasing

Figure 52: Attitudes about gas stations, by race/Hispanic origin, July 2008

Figure 53: Reasons for not buying things other than gas, by race/Hispanic origin, July 2008

Deeper Analysis–Infrequent Fillers, Gas Gateways and Loyal Denizens

Insights

Infrequent Fillers

Gas Gateways

Loyal Denizens

Cluster 1: Infrequent Fillers

Cluster 2: Gas Gateways

Cluster 3: Loyal Denizens

Figure 54: Gas station visitor clusters, Month 2008

Figure 55: On average, how often do you visit gas stations? by gas station visitor clusters, Month 2008

Figure 56: Compared to one year ago, do you…? by gas station visitor clusters, Month 2008

Figure 57: On average, how much do you spend per week shopping at gas stations (including gas)? by gas station visitor clusters, Month 2008

Figure 58: Which of the following items do you buy at gas stations? by gas station visitor clusters, Month 2008

Figure 59: Do you agree or disagree with the following statements? by gas station visitor clusters, Month 2008

Figure 60: Thinking of higher gas prices, please tell us whether you agree or disagree with the following statements by gas station visitor clusters, Month 2008

Figure 61: Gas station visitor clusters by gender, Month 2008

Figure 62: Gas station visitor clusters by age group, Month 2008

Figure 63: Gas station visitor clusters by income group, Month 2008

Figure 64: Gas station visitor clusters by race, Month 2008

Figure 65: Gas station visitor clusters by Hispanic origin, Month 2008

Methodology

Appendix: Frequency of Gas Station Visits

Figure 73: Frequency of gas station visits, by gender, July 2008

Figure 74: Frequency of gas station visits, by age, July 2008

Figure 75: Frequency of gas station visits, by household income, July 2008

Figure 76: Frequency of gas station visits, by region, July 2008

Figure 77: Changes in number of gas station visits, by household income, July 2008

Figure 78: Changes in number of gas station visits, by region, July 2008

Figure 79: Changes in number of gas station visits, by number of people in household, July 2008

Figure 80: Impact on driving due to high gas prices, by gender, July 2008

Appendix: Average Expenditure

Figure 81: Average spent per week at gas stations, by gender, July 2008

Figure 82: Average spent per week at gas stations, by age, July 2008

Figure 83: Average spent per week at gas stations, by household income, July 2008

Appendix: Items Purchased

Figure 84: Items purchased at gas stations, by gender, July 2008

Figure 85: Items purchased at gas stations, by income, July 2008

Figure 86: Items purchased at gas stations, by region, July 2008

Figure 87: Items purchased at gas stations, by number of people in the household, July 2008

Appendix: Types of Food/Drink Purchased

Figure 88: Food/drink purchased at gas stations, by gender, July 2008

Figure 89: Food/drink purchased at gas stations, by household income, July 2008

Figure 90: Food/drink purchased at gas stations, by presence of children, July 2008

Figure 91: Food/drink purchased at gas stations, by number of people in household, July 2008

Appendix: Attitudes About Gas Stations/Reasons For Not Purchasing

Figure 92: Attitudes about gas stations, by gender, July 2008

Figure 93: Attitudes about gas stations, by household income, July 2008

Figure 94: Attitudes about gas stations, by presence of children, July 2008

Figure 95: Reasons for not buying things other than gas, by household income, July 2008

Figure 96: Reasons for not buying things other than gas, by region, July 2008

Appendix: Trade Associations

Companies Mentioned:

– Best Buy Co.

– BP p.l.c.

– Brookshire Brothers, Ltd

– CBS Corporation

– ConocoPhillips

– CVS Corporation

– Department of Federal Highway Administration (FHWA)

– Dunkin’ Brands

– Exxon Mobil Corporation

– Ford Motor Company (USA)

– General Mills Inc

– Giant Eagle

– Greenfield Online

– KFC Corporation

– Kraft Foods Inc. (U.S.A.)

– McDonald’s U.S.A.

– Meijer

– National Association for Stock Car Auto Racing (NASCAR)

– National Association of Convenience Stores

– Nielsen Media Research, Inc.

– Pizza Hut Inc

– Procter & Gamble USA

– Sheetz, Inc

– Shell Oil Products US

– Speedway SuperAmerica

– Starbucks Corporation

– Stater Bros. Holdings Inc

– Taco Bell Corp.

– Tesco (US)

– The New York Times Company

– U.S. Bureau of Labor Statistics

– Valero Energy Corporation

– Visa U.S.A. Inc.

– Wakefern Food Corporation

– Walgreen Co

– Wal-Mart Stores (USA)

– Walt Disney Company, The

For more information visit http://www.researchandmarkets.com/research/a2b90d/gas_stations_in_th




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