Chevron seeks to expand Caltex network via enhanced retailer program, all systems go for B5 biodiesel launch

Chevron Malaysia Limited, the operator of retail brand Caltex, is seeking to expand Caltex’s footprint in Malaysia, and the company plans to draw in retailers via its revitalised Retailer Owned, Retailer Operated program, RORO in short. This comes after the 75-year old Caltex brand received an image refresh and new brand campaign plus tagline – Enjoy the Journey – last month.

RORO aims to bring about greater ownership of the business with greater flexibility in selecting backcourt offerings such as convenience stores or franchise offerings. At the briefing, Jeremy Oh, Chevron’s Country Chairman, gave a few examples such as kopitiams, 1901 hot dog outlets and even an Indian barber shop that exists in one Caltex station. RORO outlets can also customise promotional offerings to fit unique geographical needs.

Retail partners also have access to dedicated retail business consultants, aggressive Fuels Marketing strategies and reliable supply chains. Besides those, Chevron will also assist ROROs in supporting business processes and retail business systems.

“Our unique value propositions ensure prospective and current retailers alike are able to leverage on the value of a world class brand and learn from the experts committed to a profitable business. Chevron has also developed training modules targeted at improving customer service by retailers and customer service reps and making a competitive market work for you. This comprehensive program translates to an opportunity to earn potentially higher returns,” explains Oh.

So what does one need to open a Caltex RORO station? Prospects must already own, or have identified a land of at least 40,000 sq ft and have investment capital of at least RM2 million. That sum doesn’t include the cost of the land, but includes building construction, equipment cost and working capital.

Total costs vary depending on location, size and facilities. For more info on the RORO program and its requirements, go to www.caltexforinvestors.com/MY.

On a separate note, Chevron updated us that they’re on schedule with the B5 biodiesel (diesel blended with 5% palm methyl ester) rollout as mandated by the government. The Central region must be B5 ready by November 1 2011, and Chevron already has 29 service stations in Melaka and Negeri Sembilan offering B5 biodiesel with Techron D (engine cleaning additive), with 73 to come by November.

The company’s B5 blending facility in Pulau Indah, which took eight months to complete, is already fully operational.

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