Bangchak aims for second place in retail market

Bangchak Petroleum Plc is spending about 500 million baht (US$16.2 million) this year on marketing as part of its plan to become the country’s second largest oil retailer by 2013. Bangchak has gradually raised its retail market share from fifth place in 1997, to third with a 13.8% share behind PTT Plc (37%) and Esso (17.2%). Bangchak will spend 300 million baht (US$9.68 million) to upgrade its retail outlets, while the remaining amount will be spent in non-oil businesses and sales promotions of lubricants, according to Yodphod Wongrukmit, executive vice-president. “We’ve proven that the more marketing campaigns we have initiated, the more sales volume we gain,” he said. The company forecasts that its oil sales volume this year will rise 5% to 2.52 billion liters, from 2.4 billion liters last year. Lubricant sales are expected to rise about 20% to 32 million liters. For the non-oil business, the company has started franchising Bai Chak Minimart, Green Serve Car Care and Inthanin Coffee Shop. It has also decided to locate Inthanin coffee shops outside of service stations to tap the high demand for coffee in areas such as school campuses, office buildings and department stores. “We want to earn brand awareness from teenagers and young people who will be our new customers in the future,” said Somchai Tejavanija, senior executive vice-president. (January 19, 2011)