Pumping up service

With a new corporate image, Caltex is able to earn the trust of its customers and regain their confidence in the company’s products and services

n an increasingly tight market, Thailand’s petroleum companies are seeking to win over the hearts and minds of customers by increasing service quality rather than cutting prices.
Thailand has approximately 15,000 petrol stations, one of the highest concentrations in the world. Before deregulation there were only 4,000.
One of the country’s biggest operators, Caltex Oil (Thailand), says it wants to be the brand of choice for motorists by providing outstanding services, starting with the pump staff on the forecourt.
Caltex director Phornchai Sripraphai describes the pump attendants who greet customers with the traditional greeting of ‘Wai’ as the firm’s “ambassadors”.

“Despite the very tough competition, we have survived and I attribute this to our customer-focused strategy,” he says.
Caltex, which has been in Thailand for around 60 years, took over BP’s local business in 1997, adding a further 50 stations to its existing portfolio.

Phornchai Sripraphai, director general, retail, at Caltex Oil, attributes its staying power to a focus on customer loyalty

The Thai operation now runs the company’s third-largest petrol station network in the world, after South Africa and the Philippines.
Following a major overhaul of its stations in the last few years, the company is firmly established as one of the big three private players in the market, alongside its main competitors, Shell and Esso.

Mr Phornchai says the country is strategically important for the company’s retail development. “This is because of the complexity of the market. It is often used to test new projects and products,” he says.
Caltex launched its Free Card programme in Thailand and, more recently, initiated Customer Appreciation Month, a scheme to thank patrons for their business.
Mr Phornchai believes that further liberalisation of the energy market and the proposed initial public offering of state energy giant PTT are positive moves.
“Free competition in the market pushes down prices and makes the cost-per-litre of petrol in Thailand one of the lowest in the world,” he says.