Boosting Profits and Simplifying Lubricant Sales at Forecourts: HCS, Texaco Lubricants and The Kay Group Case Study
- 17% growth in lubricant sales for The Kay Group
- 28% increase in margins
- Enhanced customer experience through simplified product selection
In the competitive world of forecourt retail, maximisingcustomer satisfaction and profitability go hand-in-hand. HCS (Hydro Carbon Services), a company whose management has over 50 years of experience in the industry, understands the challenges firsthand. This article explores how HCS provided The Kay Group, a leading forecourt operator, with a tailored approach and strategic partnership to significantly boost lubricant sales andc ustomer experience.
Unique Insights and Customer-Centric Approach
HCS, established in 2020 by Sajid Mohmed, leverages its deep understanding of forecourt needs to offer a comprehensive car care range, including lubricants, AdBlue, and screen wash. Their focus on exceptional customer service is evident in their nationwide delivery and commitment to tailoring solutions to each client’s specific needs.
Simplifying the Complex World of Lubricants
One key challenge for forecourts is simplifying the often-confusing world of lubricants for customers. HCS tackles this by working closely with Texaco Lubricants and offering the full Havoline range, ensuring product quality and brand consistency. Moreover, they advocate for a single-brand strategy, which reduces confusion and streamlines product selection.
The world of lubricants is a complex one and helping consumers easily select the correct product quickly and with confidence, is pivotal in improving customer satisfaction.
It was this desire to enhance their oil range and sales across the 15 Texaco branded sites within The Kay Group portfolio that started a process of extensive discussions and review with HCS. From day one, the HCS approach was to encourage Texaco brand affiliation in Texaco forecourts. Thanks to a close working relationship with Texaco, HCS was able to demonstrate their understanding of lubricant sales at forecourts and how that differs to so many other lines on offer at a site.
National Account Manager at HCS Zahir Islam explains: “If a customer cannot quickly and simply ascertain the correct oil for their car, they may either walk away without a purchase, or buy the wrong type of oil. Happy customers return and that is what every retailer wants. We also believe that empowering the staff onsite, through training and product knowledge, is incredibly beneficial and well received. Everything we do has people at the forefront, so we can offer the right support to achieve the right results.”
Bespoke Planograms for Maximised Shelf Space
A crucial element of HCS’s approach is to create bespoke planograms for each client site, to ensure maximum return on available shelf space.
HSC worked collaboratively with The Kay Group management and forecourt managers, collecting photographs of car care bays at every site, as well as carrying out site visits to discuss business needs with staff.
From the information gathered, each site was provided with a bespoke planogram to cater for the space they had available, with optimised choices based on the current UK vehicle car parc.
Once the planograms had been agreed and the stock delivered, every site received a visit from the HCS field sales team, who merchandised the bays to the agreed planograms to help maximise sales.
Finally, QR codes and shelf strips were strategically placed to explain the mechanics of the QR product selector. This empowers both customers and staff to select the correct lubricant for each vehicle, avoiding costly mistakes and ensuring optimal engine performance.
Key Account Manager at Texaco Lubricants UK Suzanne Haslam said: “With most vehicles now fitted with after-treatment systems and particulate filters, communicating the importance of selecting the right oil, while simultaneously simplifying the customer experience is vital. We support all our partners with the right knowledge, access to training and POS marketing solutions to allow consumers to make informed choices and retailers to maximise their margins.”
The Kay Group: A 17% Revenue Increase in Lubricants
With the agreement between HCS and The Kay Group finalised in December 2022, the results to date have been impressive: including a 17 per cent increase in lubricant revenue during 2023. Sales and Marketing Manager at The Kay Group Jacob Francis, commends HCS’s “insightful, communicative” approach and highlights the “phenomenal” results achieved.
“HCS planned out and implemented a bespoke planogram and range per site that was dressed with POS to enhance and simplify the customer shopping experience. They made the whole process so easy and straightforward we barely had to do anything. found their pricing also extremely competitive. The overall results have been absolutely fantastic for a mature category that usually sees little growth. On a like for like basis our sales grew by 17%, and margin grew by 28%, a phenomenal result. I cannot recommend HCS highly enough from our experience of working with them. Sajid and his team, especially Zahir, have been insightful, communicative and the results clearly speak for themselves.”
Zahir Islam of HCS concluded: “We are delighted to have delivered on our commitments to The Kay Group. The feedback from them on the positive impact this has made to their business, underlines that this offering works for both the retailer and the customer.”
