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Frolova E.V. Marketing research of gas station market participants

A professionally developed business plan based on competent calculations is the key to success in business and a way to formulate a long-term strategy for an enterprise in the field of economic activity.

This article will analyze the effectiveness of a business plan for the acquisition and reconstruction of a gas station. The essence of the project is that an organization that owns a network of gas stations under a well-known brand is considering the possibility of purchasing an unbranded gas station located on the highway, with its subsequent reconstruction. Before implementing this project, it is necessary to evaluate the parameters of its effectiveness, as well as analyze them in various economic situations.

As you know, any business plan begins with marketing analysis, that is, research into the commercial viability of the project.

Marketing analysis can be carried out on the basis of various data: the results of field research, analysis of the reporting of a potential gas station seller, analysis of statistical data of similar objects, etc.

For the purposes of marketing analysis, a field study was organized in which a group of observers, during various intervals of the day and night, noted the number of cars passing along the highway in the area where the gas station is located, as well as the number of cars stopping at the gas station. Based on these data, the average daily vehicle traffic was calculated, as well as the percentage of visits to gas stations. The volume of one refueling was calculated based on accumulated statistical data on the average refueling size for each group of cars at all gas stations included in the network. Since the accounting of petroleum products in the organization is accepted in tons, and not in liters, the daily volumes of refueled fuel are recalculated into weight categories by multiplying by a conversion factor equal to the density of petroleum products (»0.8 g/cm3). The data on daily sales obtained in this way are presented in table. 1.

Table 1. Daily sales of petroleum products at gas stations, calculated through field research
Index	Average daily traffic intensity, units.	Average check-in percentage at the gas station	Average daily traffic of gas stations, units.	Average filling volume, l	Estimated volume of average daily sales, l	Density of motor fuel, g/cm3	Estimated volume of average daily sales, t
Trucks
Cars
Total					14 96 5

Thus, currently, the daily sales of petroleum products at the gas station planned for acquisition is 12 tons. The organization’s management predicts that after the gas station is reconstructed and brought to the corporate style, sales will increase by 21% (up to 14.5 tons per day). This will happen due to the action of various factors (Table 2).

Table 2. Factor analysis of the increase in daily sales of petroleum products at gas stations
Factor	Percentage of influence of factors, %	Increase in daily sales, t
Sales volume of petroleum products before reconstruction
Market growth
Brand change
Expanded scope of services
Increase in tank farm
Replacement of obsolete equipment
Marketing
Sales volume of petroleum products after reconstruction

The next step in building a business plan is to estimate the size of capital investments and the timing of their implementation. The gas station itself is put up for sale at a cost of 25 million rubles. (including VAT - 18%). The capital construction department compiled an estimate of the costs necessary to bring it to the corporate style (Table 3).

Table 3. Gas station reconstruction plan
Name	Quantity	Price (including VAT), rub.	Cost (including VAT), rub.
External structures			6 026 360
Canopy at a gas station
Information board
Entry/exit signs
Flagpole
Technological equipment			6 733 000
Fuel dispensers
Storage tank
Automated control system
Vapor recovery equipment
Level gauges
Submersible pumps
Treatment plants
Compressor-vacuum cleaner
Commercial refrigeration equipment			1 300 000
Design work
Project examination
Obtaining a building permit
Construction and installation works			15 580 000
Dismantling
Installation of foundations
Tank installation
Installation of external water supply networks
Installation of external power supply networks
Installation of on-site networks
Installation of control room and canopy
Installation of process pipelines
Installation of treatment facilities
Installation of fuel dispensers
Installation of area lighting
Installation of an automated control system
Communication organization
Engineering security means
Improvement
Commissioning works
Total			30 409 360

Thus, the total volume of capital investments in the acquisition and reconstruction of gas stations will amount to 55,409 thousand rubles. (including VAT). Minus VAT due for reimbursement, the amount of investment will be equal to 49,957 thousand rubles.

After the amount of necessary investments has been calculated, it is necessary to distribute them by time frame (Table 4).

Table 4. Capital investment schedule, thousand rubles.
Capital expenditures	2012				2013				Total
Capital expenditures	Isq.	IIsq.	IIIsq.	IVsq.	Isq.	IIsq.	IIIsq.	IVsq.	Total
Purchase of a gas station
External structures
Technological equipment
Commercial refrigeration equipment
Design work
Project examination
Obtaining a building permit
Construction and installation works
Commissioning works
Total

According to the schedule, in the first year of the project it is planned to spend 44,234 thousand rubles, in the second - 11,175 thousand rubles.

The size of investments made in fixed capital affects the amount of annual depreciation, and therefore the amount of net profit of the organization and income tax. To calculate depreciation, it is necessary to distribute the amount of investment (minus VAT) over useful life (Table 5).

Table 5. Distribution of capital investments by useful life
Group	Useful life, years	Amount excluding VAT, thousand rubles.	Annual depreciation, thousand rubles.
Buildings, structures
Equipment

Annual depreciation in the first five years will be 5377 thousand rubles. (4015 + 1362), in the next five years - 4015 thousand rubles.

After calculating investments, you should calculate the annual sales plan for petroleum products in tons (based on available data on daily sales before and after reconstruction). To do this, it is necessary to take into account the ratio of total sales volume by fuel type. At similar gas stations of the company, petroleum products are sold in approximately the following proportions (Table 6).

Table 6. Petroleum products sales structure
Type of fuel	Share of sales, %
Gasoline A-80
Gasoline AI-92
Gasoline AI-96
Gasoline AI-98
Diesel fuel

To calculate the annual sales volume, you need to multiply the daily volume by the number of days in a year. In the first year of project implementation, the annual volume will be 4380 tons (12.0 × 365), in the second (after reconstruction) - 5293 tons (14.5 × 365). For the next period, an annual sales growth of 3% is planned due to an increase in the fleet of vehicles in the region. However, it should be taken into account that in the first and second years construction and installation work will be carried out at the gas station, so it will not be possible to reach full capacity during this period. In this regard, the sales volume is planned for 2012 in the amount of 50% of the planned - 2190 tons (4380 × 0.5), for 2013 - in the amount of 75% of the planned - 3969 tons (5293 × 0.75). The planning horizon is 15 years. In Fig. 2 we present the forecast for the sale of petroleum products (until 2026).

After receiving data on total annual sales, they must be divided by type of petroleum products, in accordance with the planned structure (Table 7).

Table 7. Petroleum products sales plan, tons

Type of fuel

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Diesel fuel

Total

219 0

The next step is to create a price forecast for petroleum products. To do this, you first need to recalculate selling prices from rubles per liter to rubles per ton. This happens by dividing by the density coefficient of the oil product (»0.8 g/cm3) and multiplying by a thousand. Density data are taken as actual averages (Table 8).

Table 8. Calculation of sales prices for petroleum products
Type of fuel	Price, rub./l	Density, g/cm 3	Price, rub./t




Diesel fuel

If you plan an annual increase in sales prices by 5%, you can make a price forecast for the next 15 years (Table 9).

Table 9. Forecast of sales prices for petroleum products (including VAT), rub./t

Type of fuel

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Diesel fuel

After calculating the planned volumes and sales prices, it is necessary to calculate the plan for revenue from the sale of petroleum products, which is calculated as the product of price and volume excluding VAT (Table 10).

Table 10. Revenue plan from the sale of petroleum products (excluding VAT), thousand rubles.

Type of fuel

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Diesel fuel

Total

283 64 2

419 66 5

Taking into account the fact that the average margin (the difference between the selling and purchasing price) is 15%, a budget for the purchase of petroleum products was drawn up (Table 11).

Table 11. Plan for the purchase of petroleum products (excluding VAT), thousand rubles.

Type of fuel

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Diesel fuel

Total

The gas station reconstruction plan, in addition to rebranding and replacement of technological equipment, provides for the installation of commercial refrigeration equipment. Therefore, in addition to the main activity (selling petroleum products), it is planned to organize an accompanying business at the gas station (shop, cafe, compressor for inflating tires, car vacuum cleaner). According to accumulated statistics, revenue from related businesses averages 1% of revenue from petroleum products, and the markup in this area is 30%. Based on these data, the budget for revenue and purchase costs for related goods and services was calculated (Table 12).

Table 12. Revenue plan and purchase price for related business (excluding VAT), thousand rubles.

Index

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Purchase price

The last indicator that is necessary to assess the economic efficiency of a business plan is the size of distribution costs. One of the main cost items in this type of business is labor costs. To estimate labor costs, a draft staffing table is required (Table 13).

Table 13. Draft gas station staffing table
Job title	Number of staff units	Salary, rub.	Amount, rub.
Gas station manager
Senior operator
Shift operator
Commodity expert
Car refuelers


Total

According to the staffing schedule, monthly personnel costs in the first year of operation amount to 264,500 rubles. (accordingly, annual - 3174 thousand rubles). In the second and subsequent years, it is planned to index wages by 5%. Social contributions - 34% of accrued wages. Natural loss is calculated at the rate of 5 rubles. for every ton of petroleum products. Delivery costs are 150 rubles. per ton. Expenses for collection and cash management services are calculated based on a rate of 0.15% of revenue (including VAT). Property tax is 2.2% of the residual value of fixed assets. The remaining costs are taken at the average cost for gas stations of a similar format, taking into account annual inflation at 7%. The expenditure budget is presented in table. 14.

Read the full version of this article in “Planning and Economic Department” No. 2, 2012.

The Russian gas station business today is characterized, on the one hand, by a decrease in profitability, which is due to a number of negative factors: an increase in the tax burden, administrative restrictions on price increases and a drop in sales. On the other hand, monopolization occurs in the market: unable to withstand competition, small and medium-sized businesses give way to the “giants”.

The gas station business in Russia depends primarily on the state of the national and world markets for oil and petroleum products. In 2015, the price environment on the international market put pressure on all players in the gas station market. In addition, the decline in household incomes and the devaluation of the ruble during the crisis years of 2014-2015 hit passenger car sales, which led – for the first time in the last 15 years – to a drop in demand for motor gasoline. Sales of motor fuel in Russia decreased in 2015 by 1.3%, to 35.4 million tons. Currently, the downward trend continues, and by the end of 2017, fuel sales are expected to reach 32 million tons.

“We can predict an oversupply of light oil fuel on the Russian market against the backdrop of falling demand as a result of declining business activity of the population and rising prices. In addition, domestic companies will face difficulties when exporting gasoline, since diesel fuel is predominantly consumed in European countries,” says Oleg Atlaskirov, General Director of NEFTETECHSERVICE LLC.

Today, the main players in the Russian gas station services market are Rosneft (2,557 gas stations), LUKOIL (2,544 gas stations) and Gazprom Neft (1,853 gas stations). These corporations share about 60% of the Russian gas station market among themselves. True, at present, due to a decrease in fuel sales, LUKOIL is considering the issue of selling up to 30% of its gas stations. But, as experts note, 2017 is not the best period for such transactions.

The main direction of development of the retail filling business of the above-mentioned companies today is to increase profitability, including through sales of high-quality premium fuels. In particular, Gazprom Neft continues to develop the sales line for G-Drive 98 motor fuel. LUKOIL is expanding the sales markets for EKTO branded fuel. In turn, Rosneft is promoting its own development - FORA gasoline.

The structure of consumption of various types of fuel in the Russian Federation is as follows: gasoline accounts for 60.6% of the market, diesel fuel - 34.2%, gas (propane-butane) - 2.2%. In the gasoline segment, more than half (55%) is AI-92, 38% is AI-95/98, 7% is AI-76/80.

According to Oleg Atlaskirov, increasing excise taxes and administrative curbs on rising gasoline prices do not contribute to the development of the industry: the state expects to replenish the budget by 89.3 billion rubles with the help of growing excise taxes. The increase in the tax burden is combined with a general decrease in the profitability of gas stations. As a result, it becomes unprofitable for many companies to operate in the gas station services market, since they invest in improving the quality of service and automating processes, but, alas, do not receive the desired profit.

“Gasoline prices will rise in 2017. In the first quarter of 2017 alone, a liter of AI-95 gasoline at Moscow gas stations increased in price by 1.1 rubles. (plus 2.9%), AI-92 - by 1.08 rubles. (plus 3%), diesel fuel - by 0.93 rubles. (plus 2.5%). However, companies operating in the gas station market cannot be satisfied with such price increases, since their profits from fuel sales continue to decline due to rising excise taxes,” says the expert.

According to Anton Usov, partner and practice leader for working with oil and gas companies at KPMG in Russia and the CIS, such a situation could lead to complete unprofitability of retail sales of fuel and the transition to state regulation of this sector.

“Achieving reasonable profitability of gas stations can be facilitated by increasing the share of revenue from non-fuel goods in gas station income. To change their business model as quickly and effectively as possible, energy companies should turn to retail experience, borrowing best practices,” says Anton Usov.

Indeed, one of the features of the development of the gas station business in Russia is the combination of fuel and non-fuel components in gas station sales. However, this can be called a global trend when a gas station not only refuels a vehicle, but also offers a wide selection of non-fuel goods and services. Currently, the share of non-fuel goods in sales at Russian gas stations is up to 40%.

“A feature of fuel retail today is the active transition to the development of non-fuel business, which we see everywhere. This is due to a decrease in margins in the sale of fuel (excise taxes, taxes, competition, etc.) and a parallel increase in consumer interest in additional services at gas stations. Thus, just 10-15 years ago the formula “store plus cafe” was rare at gas stations. Today this is the minimum standard. The same goes for restrooms and much more. The fact is that for many years gas stations were precisely the stations where people came to refuel. Today they are increasingly working as complexes where you can relax, buy essentials and spend time usefully,” says Alexey Goncharenko, director for Russia and Eastern Europe at Minale Tattersfield.

According to Oleg Atlaskirov, growing competition forces gas station owners to attract customers with additional services, including the range of goods offered, food products, and the opening of a cafe. If we take into account European trends, where non-fuel sales bring gas stations up to 70% of profits, then we can predict a further increase in the non-fuel segment of the gas station market. Currently, 47% of Russian car owners expect additional services at gas stations: shops, cafes, car washes, restrooms, etc.

Among the “goodies” that gas stations delight their customers with to remain competitive is a bonus fuel card. This is a real payment instrument that rewards its holder for the constant purchase of fuels and lubricants at the gas station of a particular company.

Each network has its own bonus program conditions, but in general the systems are identical. The client's reward is expressed in the form of bonus points accumulated on the card account, which are awarded for each purchase. The amount of charges depends on the amount of payment, as well as on the category of petroleum products and other goods purchased. This system allows customers to receive discounts, participate in various promotional events, pay for purchased fuel with accumulated bonuses, as well as keep their own funds on the card and receive cashback when paying with it at a gas station. True, not all players have yet come to the latter conclusion.

It is obvious that gas stations need to improve the quality of service. This requires a clear customer focus and a desire to maximally meet customer expectations. Nowadays it is difficult to surprise with the usual assortment of soft drinks and fast food at a gas station. The market requires more interesting offers that would differentiate the retailer from competitors.

“Against the backdrop of large companies that can always sell gasoline at lower prices, a small or medium-sized entrepreneur - the owner or tenant of a gas station - can only win if his station attracts visitors with some additional bonuses. Not by the price of gasoline, but by the quality of service, exclusive products, and innovative solutions,” the general director of NEFTETECHSERVICE LLC is convinced.

Nevertheless, in the regions of the Russian Federation the transition to the modern format of gas stations is happening slowly. This is due, firstly, to considerations of financial profitability, which forces even monopolies to get rid of gas stations, and secondly, to the activities of the same monopolies, which are pushing out small and medium-sized businesses.

As for the quality of fuel, the state imposes strict requirements for manufactured products, and any gas station has a “quality passport”. Meanwhile, in 2016, on the direct instructions of the Russian President, the Prosecutor General’s Office and Rosstandart carried out many inspections of gas stations. The test results were very disastrous: more than a third of all fuel turned out to be of poor quality.

According to BASETOP data, in 2016 Rosneft topped the rating of gas stations in terms of gasoline quality, providing good fuel at reasonable prices. In second place in the ranking is LUKOIL gas stations, but this network also has disadvantages: the quality of gasoline in small towns may not be ideal. Gazprom Neft gas stations are in third place in the ranking, but depending on the supplier, the quality of gasoline can also vary. The fourth place in the ranking is the Shell gas station network. Fifth place is occupied by TNK gas stations (a brand owned by Rosneft).

Analysis of the gas station market in Russia: Trends. Development. Directions Over the past few years, the fuel market has changed significantly. Many standard solutions have ceased to bring results, attracting and retaining customers is becoming more and more expensive, and fuel retail earnings are falling. Today, all operators have to think about how to reduce costs and increase the profitability of gas stations. And, according to Artem Skvortsov, development director of the company SCON-Automatic Gas Stations, the secret of maintaining and sometimes increasing the profitability of fuel retail lies in the plane of technology...

"Modern gas station": Artem, the SCON company has been working in the petroleum products supply market for many years. Over the past years, you have seen various metamorphoses of fuel retail. Please tell me, in your opinion, what events are currently happening in the market?

Artem Skvortsov: Due to the crisis, domestic demand for fuel and lubricants has decreased. The main reason for this was the increase in the cost of petroleum products, associated with the weakening of the ruble and the decline in cargo transportation against the backdrop of sanctions. Companies in the fuel retail market have begun to more actively delve into the structure of operating costs and reduce costs. The “fat” 2000s are over, now we need to look for a more effective approach to business, which will allow us to survive this difficult period. At the same time, fuel retail becomes more complex every year, becomes more technologically advanced and requires qualified attention to management. WINKI, with its aggressive policy and huge resources invested in various programs to attract and retain customers, also influence profitability and take part of the profit from independent operators. All these factors lead to increased costs and decreased profitability of retail trade in petroleum products.

"Modern gas station": What, in your opinion, can be counteracted to such a negative process?

Artem Skvortsov: There is probably no need to contrast anything. The market itself finds the most optimal solutions for its stabilization. Now we see the number of requests for automation of traditional gas stations growing. Highway gas stations, with shops and related businesses, generate additional profit, and related products often provide more than 30% of the profit. And there are unique cases when profits from non-fuel goods reach 90%. Owners of “kiosk” format gas stations, where related business is in principle impossible due to architectural limitations, are increasingly looking towards automating the process of selling fuel without the participation of cashiers. Colleagues in the shop know very well that up to 60% of operating costs at a gas station are wages, another 10% are heat, water, and sewerage. In the case of reorganizing the gas station into an automatic one, the costs of payroll and utilities, with the exception of electricity, are not necessary. In addition, the automation of the fuel supply process itself gives a synergistic effect in attracting customers, because the client trusts a robot more, in this case a self-service terminal, than a sad, thieving gas station operator in a window with a cash tray. The machine will not deceive the client, and the machine will not deceive the owner. Numerous studies and practices show that 90% of shortages at gas stations are generated by personnel. This also applies to shortages of fuel and shortages of related goods. Therefore, transferring a regular gas station to an automatic one gives the shareholder additional confidence that not a single penny of income will be lost.

"Modern gas station": Very interesting observations, but how do things work in practice?

Artem Skvortsov: Of course, all these arguments might seem like fantasy if it weren’t for the real cases that we have implemented for a number of companies. Here is an example of Rosneft sales in Tver. A small traditional gas station, next to a residential area, was turned into an automatic one. Video and technological control - dispatching, is carried out at a nearby traditional gas station, with not too much traffic.

Another more recent example in Ryazan. In the summer of 2016, the old traditional gas station was converted into a large Automatic. By the way, for the first time we installed the latest software and 4th generation self-service terminals on it. The photographs show that the place of the control room was taken by a small utility unit, in which the equipment of the automated system is located for convenience. This is what we do when space allows. If space is limited, the automation is mounted directly into the columns of the canopy.

New automatic gas station, Ryazan

Another example is the Impulse gas station. Already on the first day after reconstruction, the station owners were surprised by the level of sales.

After the launch of a gas station in Ryazan, which was transformed into an automatic station, we for this company implemented projects for the construction of new gas stations from scratch.

"Modern gas station": It turns out that SCON, having ready-made automation cases, is ready to use them for other customers?

Artem Skvortsov: In fact, for SCON, each project is individual. We don’t just sell hardware and automation to the customer, but carefully, at the stage of setting the task, we delve into every detail of the future gas station, starting from the geographical location and ending with an analysis of the competitive environment. It is important for us to create a profitable, effective tool for the customer.

The customer's profit is our future contracts. The experience of our team, which once created a network of automatic gas stations under the ERGO~ brand (which in 2012 was sold to JSOC Bashneft as a whole business), allows us to give practical advice to customers. I repeat once again: the customer’s profit is our future contracts. We, more than anyone, are interested in the development of our clients' business.

"Modern gas station": Are new technologies emerging in your industry that may displace existing ones?

Artem Skvortsov: New technologies are certainly emerging, but they mainly relate to paying for fuel at gas stations. Today, thanks to new developments, the customer can refuel without leaving the car. Companies from Sweden have succeeded in this.

Traditionally, it is in the Scandinavian countries that the gas station automation industry is ahead of the rest. Not so long ago, your magazine wrote about a robot refueling machine that can completely dispense with human presence. Although such a robot is more likely a demonstration of capabilities and an expensive image rather than a working business project. There are a lot of restrictions: the car must be clean, the tank neck must be of a special design, etc.

Robotic refueling. Sweden.

We took care of another problem. The fact is that the tax legislation of the Russian Federation does not allow live pistol fighters to accept payment for fuel. But sometimes, in cold weather or off-season mud, you don’t want to get out of the car at all. Yes, there are solutions when a pistol guy with a portable terminal for accepting cards can come up and accept payment, but this is expensive (one portable terminal costs at least 70 thousand rubles). Cash payments are not possible at all. Although our colleagues from Azerbaijan solve this issue differently, installing a cash register near each shopping center (Laughs). In Russia, gas station owners cannot afford such a luxury, and the climate is not the same. But for SCON there are no insurmountable barriers.

"Modern gas station": Are you saying that you have a solution to this problem?

Artem Skvortsov: Yes! Looking at the girls in snow-white clothes making their way through puddles and mud to the cash register at a gas station, the idea arose to create a service that would allow you not to get out of the car at all and not even open the window.

We worked on a new concept and its implementation for about a year. This is a remote payment for fuel at gas stations and gas stations, and we are demonstrating the first pilot result in November 2016 at the Autocomplex 2016 exhibition. The project is called BENZUBER™ - an online service for paying for fuel at gas stations using a mobile application. The service allows you to pay and fill fuel without going to the gas station cash desk. Pay for fuel using a mobile application with a bank or fuel card linked to your profile.

Customers who install such an application can pay for fuel without leaving the car or leave only to insert a pistol into the tank and refuel the car. Imagine - you drove up to a specific pump at a gas station, saw its number, then entered the pump number, type of fuel and quantity in the application, confirmed the filling and that's it - gasoline runs into your tank. This is not fantasy. We are again testing and piloting the service at our own network of gas stations.

"Modern gas station": Great idea! Has no one done this before you?

Artem Skvortsov: Such services have appeared in the USA and Europe, but they are complex and have many limitations. It requires either a connection to a specific gas station network or to a bank. European vendors of control systems for gas stations have also announced similar services, but they are also tied to a specific gas station management system.

We went a little further. Our solution can be used at ANY gas station. The architecture is such that we can connect to any control system, connect any bank or fuel card of the client to the application. I won’t reveal all the details - the market itself will see the solution at scale.
While developing the system, we came across its unimaginable capabilities. For example, there is no need for self-service terminals as a class at all. There is a solution for departmental stations. There is a fantastically cheap solution for rural and sparsely populated areas.

Well, it just so happened that we, again, as in the case of the gas station with remote control, were the first to come out with this solution on the fuel market in Russia. There can be a lot of ideas and fantasies. An idea in itself has no value, but if it is implemented in a timely manner... As one of my colleagues said: time to market - time does not wait.

"Modern gas station": When can we expect mass use of the new service?

Artem Skvortsov: In November we complete test and commercial testing of the system. We are already negotiating with some gas station networks and, perhaps, exclusive rights to this service will be concluded in some regions. I will only say that for our clients, those for whom we built gas stations and automated gas stations, this service will be available guaranteed.

"Modern gas station": We will closely follow this interesting topic. What can you say about future trends in the fuel retail market? What to expect and what to strive for?

Artem Skvortsov: I won’t fantasize or make things up here. It is no secret that the United States and Europe have long been ahead of Russia in terms of the level of development of gas stations and the service they provide. Therefore, we must assume that what is happening now in the West will soon await us. Retail is focused on consumers, who are becoming more demanding and capricious.

Having studied the European and American markets, it is not difficult to guess what will happen in the next decade.
Let's take the USA. 79 out of 100 customers surveyed prefer to fill up once a week at gas stations near supermarkets or hypermarkets. Fuel tanks of increasing capacity and economical engines, which, compared to engines of 20 years ago, are 2–3 times more economical, make it possible to refuel once a week. Below I will provide a graph of consumer loyalty to gas station networks based on a survey of American motorists.

Surprisingly, the top five are not fuel brands at all, but brands of supermarket chains. The rating is topped by the Kroger supermarket chain.

Kroger began selling fuel in its stores in 1998, almost 20 years ago. In 2004, the company already operated 500 gas stations at its supermarkets and grew to 1,000 in 2010. Today, Kroger has 1,275 gas stations at each of its hypermarkets, and 725 gas stations at small supermarkets. And these are practically all AUTOMATIC gas stations!!!

Chains sell fuel almost at cost, thereby attracting customers to their supermarket, where they “recoup” costs and make a profit from the sale of higher-margin goods.

Another example, closer to us. TESCO supermarket chain in the UK.

The rate of growth in the number of supermarket petrol stations in the UK in recent years has threatened independent petrol stations with closure. The UK Retail Operators Association has reported that due to the active expansion of supermarkets into the retail market, about a thousand independent petrol stations in the country may be closed before 2017.

In Russia, retail retailers are still busy with their own development and gigantic expansion of markets, mostly geographically. Some chains open, think about it, 2-3 stores a day! This means there is something to chase. Profitability allows you to organize such “races”. Look around your area. In the place where there used to be one supermarket, and there was enough for the whole area, 3-4 satellites suddenly grew up. Moreover, all networks are federal. Professionals of this market may throw tomatoes at me (laughs), but I believe that the customer traffic is also divided by 4. From here I conclude that so far everything is good in the food retail segment, since you can live with a low turnover and develop, but I believe that soon the time will definitely come when the one who will attract customers with a new service, for example, cheap fuel, will start winning.

We at SKON are ready for such development, and we are ready to offer our solution to retail chains, and in our new concept we are also ready to be operators of automatic gas stations and be responsible for their technical operation.

"Modern gas station": Artem, it’s clear with hypermarkets; most likely, for us this will all happen in the medium term. But let's talk about the market for automatic gas stations?

Currently, 320 gas stations are in operation in Russia. 10 years ago, the fingers of two hands would have been enough to count all the machines, but today this is an already established format, and, note, two-thirds of the stations are operated by VINKs. This is a serious indicator. 10 years ago, VINKs were skeptical about the format of automatic stations, but today almost every VINK has at least a dozen gas stations in its arsenal.

"Modern gas station": More than 300 Automata is already a figure. What is SCON’s contribution to this amount?

Artem Skvortsov: Half! SKON has built more than 150 automatic stations in 12 years. We were pioneers and today maintain our status as the market leader in this segment. We built half of the gas stations, the rest were built by about ten regional companies.

Being the first is not so much an honor as it is monstrously labor-intensive, and most importantly, risky both from the point of view of image and from the point of view of financial risks. But we have always been calm about our projects, since we have tested all the technical and technological solutions on ourselves. “SKON” never made projects and did not risk customers’ money. Our company itself worked in the fuel market, and all our developments were tested for functionality on our network.

"Modern gas station": Well, at the end of our interview - the traditional question, what would you like to wish our readers?

Artem Skvortsov: Colleagues! Let's think and work. Let's imagine and create. Yes, maybe for some, selling gasoline is a boring and routine procedure, but there are people in the industry who have devoted their lives, intellect and energy to this business and its development, and there are many such people. Thanks to active activists, in a good way, we are progressing and developing.

The gas station business in Russia depends primarily on the state of the national and world markets for oil and petroleum products. In 2015, the price environment on the international market put pressure on all players in the gas station market. In addition, the decline in household incomes and the devaluation of the ruble during the crisis years of 2014-2015 hit passenger car sales, which led - for the first time in the last 15 years - to a drop in demand for motor gasoline. Sales of motor fuel in Russia decreased in 2015 by 1.3%, to 35.4 million tons. Currently, the downward trend continues, and by the end of 2017, fuel sales are expected to reach 32 million tons.

“A feature of fuel retail today is the active transition to the development of non-fuel business, which we see everywhere. This is due to a decrease in margins in the sale of fuel (excise taxes, taxes, competition, etc.) and a parallel increase in consumer interest in additional services at gas stations. Thus, just 10-15 years ago the formula “store plus cafe” was rare at gas stations. Today this is the minimum standard. The same goes for restrooms and much more. The fact is that for many years gas stations were precisely the stations where people came to refuel. Today they are increasingly working as complexes where you can relax, buy essentials and spend time profitably,” says Alexey Goncharenko, director for Russia and Eastern Europe at Minale Tattersfield.

Shtrikova Daria Borisovna, Candidate of Economic Sciences, Associate Professor of the Department of Economics and Organizational Management

It has been observed that over the past decades there has been a constant increase in competition throughout the world. Just a few decades ago, it was absent in a number of countries and industries. The markets were in a stable state, the dominant positions in them were clearly defined. Even where rivalry existed, it could not be called so fierce.

Today, it can be noted that not a single serious large company can do without competition. Despite the variety of methods and forms of competition, almost every company tries to develop its own competitive strategy to achieve success in the market.

In order to analyze the competitive situation in the market segment in which LUKOIL presents its products, it is necessary to take into account that this company is one of the largest companies in the gas station market in Russia, and also has a sufficient sales volume outside the Russian Federation.

Open Joint Stock Company LUKOIL is one of the largest international vertically integrated companies operating in the oil and gas market, providing 2.2% of world oil production. The official name is OJSC Oil Company LUKOIL. OJSC LUKOIL was created by Resolution of the Council of Ministers of the USSR No. 18 of November 25, 1991. The head is Vagit Yusufovich Alekperov.

The company's goal is to satisfy the needs of customers in purchasing fuel of appropriate quality from the manufacturer, using the company's capabilities, while obtaining maximum profits.

The products of LUKOIL gas stations are automobile fuel, namely AI-92 Euro, AI-95 Euro, AI-98 Euro, A-80, Euro diesel fuel, EKTO diesel fuel (ecological fuel), as well as oils and related products in the assortment .

The main competitors of Lukoil gas stations in terms of assortment can be called almost all gas stations in the Russian Federation (Gazprom gas stations, Rosneft gas stations, Bashneft gas stations, Tatneft gas stations, etc.), since almost all they provide the same services and sell the same types of fuel as Lukoil gas stations. It can only be noted that the Lukoil gas station is the only supplier of Ecto DT.

The main competitors in terms of geographic distribution are Rosneft gas stations.

Lukoil gas stations belong to the premium segment. Premium segment is a market price segment of expensive goods and services, aimed at people with fairly high incomes. The main competitors are premium-level gas stations such as Gazprom gas stations and Rosneft gas stations. The price-quality ratio of all the listed gas stations is at a decent level, so we can say that their pricing policy is almost the same.

The Company's main competitors in the supply of petroleum products to the domestic and foreign markets are Russian vertically integrated oil companies OJSC Rosneft, OJSC Gazprom Neft, OJSC Surgutneftegaz and their subsidiaries and affiliates in various market segments.

To begin researching the gas station market, you need to determine the market segment where gas station operations are in particular demand.

Market segmentation is the classification of potential consumers into groups according to differences in their tastes, needs and behavior. Segmentation of the consumer market is carried out on the basis of geographical, demographic, socio-economic, psychographic and behavioral criteria.

For clarity, segmentation of the LUKOIL gas station market is presented in Table 1.

Table 1. Segmentation of the LUKOIL gas station market

Geographic segmentation
Signs of segmentation	Possible segments
1. Place of residence	City, suburb
Demographic Segmentation
Signs of segmentation	Possible segments
1. Age	20 – 50 years
Segmentation by socio-economic characteristics
Signs of segmentation	Possible segments
1. Income level	From 25,000 rubles per month per person
Continuation of Table 1
Segmentation by consumer behavior in the market
Signs of segmentation	Possible segments
1. Purchasing motives	reliability; prestige; quality
2. Search for benefits	Market search: High quality goods; Good service; Availability of additional services; Bonus programs
3. Frequency of purchases	regular;
4. Price sensitivity	Indifferent or prefers high prices (as an indicator of quality)
5. Degree of need for the product	Needed constantly
Segmentation by psychographic characteristics
1. Lifestyle	motorist

It is important to note that the life cycle of both the company as a whole and its individual products plays a significant role.

The life cycle of a product is a long period from the initial appearance of a product on the market until the end of its sale in the same market.

As an example of an analysis of vital goods, such products of NK Lukoil as diesel fuel under the ECTO brand will be considered.

LUKOIL launched fuel under the EKTO brand on the Russian market in 2006. Under this brand, potential buyers are offered motor gasoline and diesel fuel with cleaning properties that improve engine performance. By using EKTO fuel, the engine develops 100% of its intended power, and emissions of harmful substances are reduced. The launch of fuel under the EKTO brand on the market was accompanied by an active national advertising and marketing campaign on television, in the press, on outdoor advertising media and at points of sale at LUKOIL gas stations.

The life cycle of ECTO diesel fuel is presented in Figure 1. According to the sales statistics of this type of fuel, a graph was constructed.

Rice. 1 – Life cycle of ECTO fuel.

Since the production of these products had just begun in 2005, they had not yet been released onto the petroleum products market, and there were no sales. In 2006, when Lukoil launched premium fuel under the EKTO brand on the Russian market, it was noticed that sales were at an expectedly low level. After the introduction of ECTO to the market, this type of fuel was rehabilitated and its sales volume increased annually. From 2011 to the present day, EKTO sales have been stable; the decrease observed in 2013 was minimal.

Among the parameters in which Lukoil gas stations lag behind competitors, the high price for the fuel and services provided clearly stands out. But on the other hand, the price-quality ratio is at a high level. Since Lukoil gas stations have a large number of consumers who are willing to pay a large amount for a quality product, a price reduction can be completely avoided. But to attract new consumers, a price reduction could be beneficial, thereby possibly increasing the volume of fuel sales at gas stations.

It is also worth noting that among the gas stations presenting themselves as “Lukoy” gas stations, there are many that are not real. It is necessary to more thoroughly search for illegal gas stations that operate without the franchise of the real company NK Lukoil.

In order to create demand and stimulate the sale of goods, the LUKOIL company uses a number of marketing techniques.

The LUKOIL company, implementing its marketing policy, on the one hand, identifies real needs and requirements for a product, produces the required product, sets a reasonable price for it and ensures delivery in the required quantity to a given place and at the appropriate time, and on the other hand, influences consumers, creating the image of the enterprise, forming an idea of the advisability of purchasing this product. The idea of the feasibility of purchasing a product is ensured through the development and implementation of a product promotion policy or communication policy. The main tools for implementing such a policy are marketing communications such as advertising, propaganda (PR), sales promotion, personal selling.

The LUKOIL company stimulates the sales of its products using various marketing means. For example, many commercials have been filmed, which were and are broadcast on television and Internet portals. Lukoil also actively resorts to outdoor advertising. Advertising banners present the company's nonsense and products throughout Russia and abroad.

There are many publications in the press. Among them are such as “Lukoil Oils: from modern technologies to optimal results”, “Lukoil. Quality Mark”, “Professionals’ Choice”, “Looking into the Future and others.

It is also necessary to note about the company's promotions. For example, from August 1 to December 31, 2013, in all retail outlets and stores at Lukoil branded gas stations in the Russian Federation, marked with the poster “FAVORABLE PRICE. PROMOTION" it was possible to purchase motor oil at a favorable price.

Today OAO LUKOIL is one of the largest companies in the oil and gas market in the world. The socio-economic development of Russia largely depends on the effectiveness of company management. Therefore, it is important to timely make certain adjustments and recommendations regarding the management of LUKOIL and its gas stations.

The company is in a state of continuous exchange with the external environment, thereby providing itself with the opportunity to exist. The task of managers is to establish such interaction between the LUKOIL company and the external environment that would ensure the company’s ability to achieve its goals and provide it with the opportunity to prosper in the long term.

In an unstable situation, it is necessary to constantly monitor the external environment. Based on the information collected, it is necessary to try to predict trends and possible situations.

The example of OAO LUKOIL, which is one of the leaders in both the Russian and global petroleum products market, shows that the company actively uses the following marketing tools to improve and stabilize its high position in the domestic and foreign markets:

1) comprehensive customer loyalty programs, including a system of discounts, ease of payment, special offers;

2) decisions in the field of commodity policy that are related to the high quality and standards of petroleum products produced;

3) development of a range of related products and services in the LUKOIL gas station network both in Russia and abroad, which creates a unique product offer;

Bibliography

http://www.lukoil.ru/ (Date of access: 12/17/2014).
http://www.rbc.ru/ (Date of access: 10/17/2014).
Krylova, G. D. Marketing. M.: Master, 2011.
Savitskaya G.V. Analysis of the economic activity of the enterprise. Minsk. 2010.
Shtrikov A.B., Shtrikova D.B. Social efficiency of business assessment of management personnel using the example of the oil company Lukoil // News of the Samara State Agricultural Academy. 2013. No. 2, pp. 56-60.

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