ND1028111

Title: ExxonMobil Offers Image Incentive Bonus to Marketers

Description: Company executives are also advising its marketers not to rush to sign brand conversion agreements with dealers whose performance is already sub-par.

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IRVING, TEXAS -- ExxonMobil will offer its marketers cash bonuses in the form of a cafeteria-style image incentive program next year. The initiative, now in the final planning stages, is part of an effort by the major to upgrade the appearance of retailer-operated retail outlets and encourage the construction of more.

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Traditionally, major oil companies reward retailers who meet their image standards with cents-per-gallon payments, usually spread over three or more years. The new bonus offers from ExxonMobil will be in addition to the company?s existing incentives, sources say. Currently, ExxonMobil pays 1 to 2 cents per gallon for image work at retail, depending on the type of projects and length of payout time. ���

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ExxonMobil executives outlined their plan at the company?s national marketer meeting in New Orleans earlier this month.�The program, to be formally introduced early next year, will allow marketers to choose one payment from a menu of three additional offers for each station they operate:

• A $5,000 payment for high-rise sign repairs or upgrades,
• $5,000 for LED canopy lighting, or
• $500 per dispenser for new decals, which may be capped per station.

Additionally, the company will pay marketers a $10,000 bonus if they bring a new store online by January 31, a payment that will increase to $12,000 per store for three or more outlets.

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Retailer comments related to the new program were largely positive.

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ExxonMobil executives also reassured attendees that the company does not plan to spin off its retail marketing business, as ConocoPhillips has done. It is in the process of selling its retail real estate and supply business to jobbers and expects that its stores will be 100% jobber-operated by year-end 2012.

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Executives also offered marketers looking to grow their business a piece of advice:� Don?t rush to sign brand conversion agreements with dealers whose performance is already sub-par.

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They said it?s one of the top mistakes they see with marketers: ?Jobbers tend to jump at any new business they?re offered, even to their own detriment. They said we have to learn to walk away from new business if the dealer who is offering it cannot take care of the business he has already.?

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-������ Carole Donoghue (caroledonoghue@yahoo.com)

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Content Subject: Petroleum Retailing

Formatted Article Date: October 28, 2011

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