CMG’s client, a retail division of the global oil and gas company, was searching for new opportunities to capture larger market share in the US retail gas industry. As one of the world’s “supermajor” oil and gas companies, our client plays in a hotly contested market. They were facing increased competition and, having recently invested in expanding their refinery capacity, they needed to boost demand in step with the new supply.
To address these challenges, our client sought to rethink how they deliver differentiated value propositions for two target audiences: consumers (everyday drivers, truckers, boaters, lawn-mower operators) and customers (station owners and franchisees). They were willing to lay every aspect of their market model on the table for evaluation and improvement, from distribution to payment to pricing to overall brand experience.
Over the previous three years, we had developed a great working relationship with our client’s marketing team. When they came to CMG during the RFP process, they knew we had an insider’s knowledge and the track record to get the job done. But the decisive factor was that we were one of the only firms to take a hard consumer-led approach. Our thinking converged with our client’s in that we identified consumer experience as the key space for differentiation in such a tight market.
The client’s aspiration for the project was to become the market-share leader in the US. To get there, we needed to define viable, financially accretive value propositions and the market models to support them. The client set a 12+ percent return and three percent incremental market share as the benchmarks for success. Independently, CMG added a BHAG (Big Hairy Audacious Goal) of $1 billion in total marginal returns.